A Strategic Analysis of Jamba Juice Using Mathematical Models


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A Strategic Analysis of Jamba Juice Using Mathematical Models

  1. 1. A Strategic Analysis of <br />By: <br />Jerry Morales<br />
  2. 2. Agenda<br />Company Profile<br />Mission and Vision<br />Market<br />Competitors<br />SWOT Analysis<br />Objective 1<br />Objective 2<br />Objective 3<br />Considerations and Conclusion<br />
  3. 3. Company Profile<br />Founded in 1990 as the Juice Club<br />1995 name changed to Jamba Juice<br />6,000 employees<br />743 locations<br />30 States<br />Bahamas<br />Revenues exceeding $248 Million<br />Down 7.21%<br />
  4. 4. Mission and Vision<br />Mission: Jamba! Enriching the daily experience of our customers, our community and ourselves through the life nourishing qualities of fruit and vegetables<br />Vision: FIBER<br />Fun – Have fun<br />Integrity – Do what you say<br />Balance – Live a balanced life<br />Empowerment –Believe in yourself<br />Respect – Be respectful<br />
  5. 5. Market<br />In 2007 Smoothie and Juice Industry exceeded $664 Million in the United States<br />Younger (under 40)<br />Middle class with some disposable income<br />Health-conscious <br />
  6. 6. Competitors<br />Starbucks<br />Founded in 1971<br />Total revenue exceeding $11 Billion<br />55 Countries Woldwide<br />Maui Wowi<br />Started in 1983 <br />More than 600 locations<br />Organic <br />Smoothie King<br />Established in 1973<br />600 Locations across U.S. and South Korea<br />Voted #1 Smoothie Bar for 17 years in a row<br />
  7. 7. SWOT Analysis<br />Strengths: <br />Well Known brand<br />Weaknesses:<br />Competitors exceeding Jamba Juices revenues<br />Not as popular during Winter months or in North<br />Opportunities:<br />Health conscious trend<br />Merchandising<br />Threats:<br />Economy<br />Easy market entrance<br />
  8. 8. Synergy with Gold’s Gym<br />Creating a Synergy with Gold’s Gym<br />3.5 Million members<br />Located in 42 states and 30 Countries Worldwide<br />Highest market share at 20%, 96% brand awareness<br />30 Days – Negotiate locations to pilot<br />CA (5), UT(2), AZ (3), TX (4), LA (2), FL (4) <br />60 Days: Begin Construction in pilot states<br />90 Days: Begin marketing efforts/create awareness<br />180 Days: Jamba Juice Health bars up and running<br />Grand opening event to follow<br />
  9. 9.
  10. 10. Evaluation and Control<br />Monitoring of Monthly data reports (before vs. after)<br />Revenue and sales<br />Enrollment rates<br />Attrition rates<br />Staffing through Jamba Juice<br />Adhere to both companies policies<br />
  11. 11. Employee Discounts<br />Would employees take advantage of a Gym membership discount through the Jamba Juice/Gold’s Gym membership?<br />70% of Jamba Juice employees join a gym with first year of employment, 30% do not.<br />30 days: update and run revised contract by legal<br />60 days: Pamphlets and memorandums<br />90 Days: Update Jamba Juice systems for discount<br />180 Days: Discount ready to be offered<br />
  12. 12. Strategy<br />If Jamba Juice selected 5 employees at random, what would the probability be that three of those employees would not want to join a gym?<br />
  13. 13. Evaluation and Control<br />Monitor and track discount use<br />Employee number must be received for discount<br />Review monthly reports<br />Fine tuning if needed<br />
  14. 14. Entrance to the Popsicle and Ice Cream Market<br />Infiltrate supermarkets and grocery stores across 20 States from California to North Carolina<br />Minimal Cost as many assets already owned (Warehouses, trucks)<br />7 major activities observed:<br />Mixing (4 hours)<br />Cleaning (6 hours)<br />Freezing (2 hours)<br />Storing (6 hours)<br />Inspecting (3 hours)<br />Truck preparation (2 hours)<br />Loading (5 hours)<br />
  15. 15. Path Before Distribution <br />Mixing and Cleaning can be started at the same time as there are two different batches. When materials from one are being cleaned, the other set of materials is mixing the next batch. Cleaning also includes cleaning the distribution trucks before they are prepared for shipment ( filling the truck up with gas, checking fluids and other maintenance issues) When one batch is done mixing it can either be frozen into popsicle molds and ice cream cartons or stored in a freezer. The mix is loaded from storage and Jamba Juice products are inspected and then loaded. <br />
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  17. 17. Strategy<br />Critical Path = mixing, storing and loading <br /> ensure processes are not delayed<br />30 Days - purchase machinery , identify employees to relocate or hired<br />60 Days - employees hired/relocated <br />90 Days - determine what grocery stores and food chains to distribute to and sign contracts<br />180 Days - production begins and products began arriving in stores, marketing, adverting and in store sampling<br />
  18. 18. Evaluation and Control<br />Management will review and monitor sales reports for the first twelve months. If the Jamba Juice products are successful, then the management team will increase the flavor options available from 5 to 10. If the costs are over budget then management will re‑strategize after one year to either modify its processes or consider pulling out of the popsicle and ice cream markets. <br />
  19. 19. Considerations and conclusion<br />Weak economy (limited disposable income) <br />Employees and consumers perception of synergy<br />Employees positive healthy attitude (minimal resistance)<br />products could be viewed as named brand and expensive. <br />Increasing competition emerging, <br />Immediate action needed to maintain position as a top specialty drink provider <br />
  20. 20. Agenda<br />Company Profile<br />Mission and Vision<br />Market<br />Competitors<br />SWOT Analysis<br />Objective 1<br />Objective 2<br />Objective 3<br />Considerations and Conclusion<br />
  21. 21. Questions<br />