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Proposal for jamba juice thailand

Proposal for jamba juice thailand

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Jamba Juicethailand Jamba Juicethailand Document Transcript

  • Master of Arts in Integrated Marketing Communications Subject: Strategic Marketing Management Lecturer: Dr. Leela TiangsungnernAssignment 4 Date Submitted:Marketing Strategy for Jamba Juice 27 September 2009Mr. Garvin Boonsonghttp://www.linkedin.com/in/garvinboonsong(626) 607-4349, garvingaryboonsong@gmail.com 1
  • Table of Contents 1. Executive Summary……………………………………………………………..2 2. Situational Analysis………………………………………………………………4 3. Marketing Strategy………………………………………………………………8 4. Financials…………………………………………………………………………13 5. Control……………………………………………………………………………14 6. Implementation………………………………………………………………….. 15 7. Marketing Organization (People in charge of implementing)………………15 2
  • Executive SummaryJamba Juice is healthy smoothie franchise/healthy food and healthy lifestyle brand found in theUS. The target market for Jamba Juice is health conscious consumers. The purpose of thismarketing plan is develop a marketing plan that will introduce Jamba Juice in the Thai marketand create a long term profitable Jamba Juice Business in Thailand. This marketing plancontains strategy not only for Jamba Juice Thailand to gain customers but also to develop win-win situation with its employees, its suppliers as wells society at large. 3
  • Situational AnalysisI. OVERALL VIEW OF JAMBA JUICE Jamba Juice is a US based franchise that serves healthy blended juices and otherhealthy products (Jamba Juice 2009a). Jambas juice vision is “to be the leading healthy lifestylebrand offering consumers great-tasting and better-for-you products” (Jamba Juice 2009b). In2009, Jamba Juice was named the #1 Healthy options in the Quick Refreshment category inZagats 2009 Fast Food Survey (Jamba Juice 2009c).II. PRODUCTS AND DISTRIBUTIONA) Product Mix The product mix that will be found at Jamba juice locations in Thailand will be the same asthe US based stores. The products lines that will be found in Jamba Juice Thailand include 1. Grab and Go Foods 2. California Flatbreads 3. Iced Fruit Tea Infusions 4. Ideal Meals 5. Hot Oatmeal 6. Fresh Squeezed Juices 7. All Fruit 8. Jamba Light (Smoothies) 9. Blended with a purpose 10. Jamba Classics (Smoothies) 11. Creamy Treats 12. Shots 13. Boosts 14. Baked GoodsSource: (http://www.jambajuice.com/#/smoothies/) The complete list of products that will be offered in Jamba Juice will be found inthe appendix.Jamba Juice products are ideal for people who are health conscious and want healthysnacks/meals but don’t have the time or energy to make healthy foods. The main product ofJamba Juice, its fruit smoothies, contains the vitamins, minerals, fibers, and other nutrients thatallow people to stay healthy. These smoothies can either be consumed as a healthy, greattasting treat, or a substitute for breakfast, lunch, dinner. 4
  • B) DistributionIn the first year of operation in Thailand, there will be 5 corporate owned Jamba Juice locationsin Thailand. The locations will at Central Changwattana, Central World, Siam Paragon, CentralChidlom and Emporium. Jamba Juice will be located in these high end malls because peoplewho shop at these locations are likely to have to money to afford Jamba Juice products.C) Price of Jamba Juice products in ThailandThe prices for Grab and Go Foods, California Flatbreads, Baked Goods, Creamy Treats, IdealMeals, Hot Oatmeal will range from 80 baht to 170baht. The prices for all the smoothies, freshsqueezed drinks, ice teas will range from 90baht to 200 baht.II. MARKET SUMMARY AND COMPETITORS ANALYSISA) Market Summary towards health food in Thailand There is a huge trend in Thailand towards healthy foods. According to ViwatLimsakdakul, the managing director of Tipco Foods (Thailand),“Healthiness is a rapidly growing business in Thailand and abroad in which opportunitiesabound. Globally as well as locally, people tend to be more health-conscious. Their eatinghabits and what they eat and drink are changing as they wish to live longer than the previousgeneration. They also have more income to dispose [of] and take care of their health. Forinstance, many prefer to take less or no sugar in beverages. As a result, the sales of carbonatedcola drinks here and abroad have been on the downtrend for years whereas natural fruit juices,functional and sport drinks as well as bottled water are enjoying double-digit growth rates," saysViwat, whose firm aims to be a leading food company in Southeast Asia” (Limsamarnphun, TheNation)III. COMPTEITORS ANALYSIS Based on looking around at the various malls in Bangkok, there isn’t any majorcompetition in terms of smoothie/healthy lifestyle chain in Bangkok. In my opinion, the majorcompetitor for the Jamba Juice in Bangkok is Squeeze by Tipco- a juice bar owned Tipco. Thesmoothie’s price range from 69 baht to 89 baht (Source: Went to Squeeze by Central world).Examples of the types of smoothes they have include Mega Smoothes (Extra Fruits Extra Jelly), 5
  • Citrus N’Tropical (Citrus and Tropical Fruits), Berry Fever(Berry Fruits). Other fruit products thatSqueeze has include pure juice, healing juice, Super Boost (Source: Squeeze) Other direct competitors of Jamba Juice that have fruit smoothies in Thailand include areplaces that Mad about juice, Buddhi Frozen yogurt as well as mom and pop smoothie stand.The indirect competitors to Jamba Juice include quick service restaurants such as McDonalds,Burger King, KFC, Starbucks, ice cream shop that sells smoothies, restaurants that sellsmoothies, bakeries, and in home dining.III. SWOT ANALYSIS FOR JAMBA JUICE IN THAILAND • Strengths o Wide range of smoothies for treats or meal replacement o Has complementary sandwiches, salads, bakeries for breakfast, lunch, dinner o California-Healthy lifestyle brand o Fun, energizing store environment o Success in the US market • Opportunities: o There is no big fruit smoothie /healthy big chain in Thailand o Health Conscious trend in Thailand o Starbuck’s proved that it can survive in the Thailand market • Weakness: o High prices of Jamba Juice products o Compared to Starbucks, or McDonalds there is no sitting places where people can hang out for hours o Lack of awareness of Jamba Juice by target market at the launch • Threats: o Bad economy o Political instability o Labor costs o The fluxuation of prices of perishable and non-perishable goods that is needed to make Jamba juice products o Small, mom and pop fruit smoothie chains o Quick Service Restaurants such as Burger king, Subway, McDonalds, KFC 6
  • o Refrigerated fruit juices found in stores such as Tops, Tesco, Big C, and 7 elevenIII. Competitive advantage FOR JAMBA JUICE Unlike the direct competitors, Jamba Juice is a healthy life style brand. Not only does JambaJuice have a variety of great tasting smoothies and teas, but Jamba juice has other productsthat address its customer’s desire for healthy living such as salad, baked goods, wraps. JambaJuice has extensive product portfolio that caters to every type of health conscious consumers.For example. • Jamba Juice has smoothies such as energizer, antioxidant, protein, cold busters that are blended for a specific purpose (http://www.jambajuice.com/#/smoothies/). • Jamba juice has vegan, non-glutton, and non-dairy products (http://www.jambajuice.com/#/smoothies/). • Jamba juice has oatmeal’s that are 100% organic (http://www.jambajuice.com/#/smoothies/). • Jamba Juice has a line of grab-go food and California flat breads that contain no artificial flavors, no artificial preservatives, and no high fructose corn syrup (Jamba Juice 2009d) Unlike Jamba Juice competitors, Jamba Juice has treats and meals for every part of the day(breakfast, lunch, mid-afternoon, and dinner). Unlike its competitors, going to a Jamba Juice isan experience in which its store decorations, its employee, the store experience adds tocustomer feeling of energy, fun, and the benefits healthy California living. 7
  • Marketing StrategyI. Target market and Positioning Jamba Juice The target market for Jamba Juice will be both Thais and expatriate professionals,entrepreneurs, in Bangkok who are at least middle class (making at least $20,000 baht). Thesepeople are health conscious and seek a healthy lifestyle-they take care of their health throughexercise and nutrition. The whole brand positioning for Jamba Juice is for both Thais and expatriateprofessionals, entrepreneurs, in Bangkok who are at least middle class (making at least $20,000baht) who care about their physical health. Jamba Juice provides smoothies and other productsthat are healthy, taste good in an energizing environment.II. Holistic marketing for Jamba JuiceA) Its Employees In order to deliver exceptional customer value and increase the profitability of Jamba Juicelocation, Jamba Juice will focus on the hiring, training, and retention of employees that arefriendly, energetic, hard working, and caring. - Hiring: All the Jamba Juice locations will focus on hiring carefully; hire friendly, energetic, caringemployees who are hard workers. - Training: Just like the US stores, all Jamba juice Thailand employees will participate in a 6 weektraining program where they learn everything from working the frontline to running entire store(http://www.jambajuice.com/#/faq_info/). There will be continuous training throughout on theyear such as attitude, goal setting, customer service, communication... - Retention: Along with paying above the Thai minimum wage, Jamba juice will do things to retain keyemployees include. 8
  • • a quarterly bonus plan to reward short term performance • yearly bonuses for long term performance • retention bonus for longetivity bonus • bonus for exceptional customer service • bonus for getting new employees. (Source: Jamba Juice US) • allow hourly employee to have 4 hours paid each year to do community service for a charity of their choice Jamba Juice managers in each store location Thailand will be given a budget that can beused to do things to reward employees on the spot as well improve the atmosphere of the store.Managers of all the Jamba Juice location in Thailand also will be given additional bonus basedon store profitability, amount money saved on perishable, non perishable goods, employeeturnover, as well as customer satisfactionB) Corporate Social Responsibility Jamba Juice Thailand will be partners with the Thai government to help educate Thaipeople the importance of eating healthier diets, exercising regularly, as well as other healthrelated issues affecting the Thai people. The Jamba Juice corporate in Thailand will donate 1%of the combined sales of all locations to charity such as Friends of The Asian Elephant andWorld Vision. In addition, all Jamba Juice locations in Thailand will give provide fundraisingopportunities for nonprofit institution such as schools.D) Suppliers Jamba Juice Thailand is committed to creating win-win situation with its suppliers of non-perishable and perishable goods through actions such as paying fair prices to suppliers, payingon time, committing to long term contracts when warranted. 9
  • III. Integrated Marketing Strategy to increase profitability of Jamba Juice storesA) Objectives for the first year of Jamba Juice franchise in Thailand The major objective for the first year of Jamba Juice franchise in Thailand is for each ofthe 5 stores in Thailand has at least 20 million baht in total profits by December 2011. The otherobjectives for the first year of the Jamba Juice franchise in Thailand are to have at least 5,000customers at each of the Jamba Juice franchise by the end of year by December 2011. Theother non-measurable objective for the Jamba Juice Franchise is to create positive feelingbetween Jamba Juice and the local Bangkok community.B) Market Penetration Strategy and IMC Mix Since Jamba Juice franchise will be a brand new into the Thailand market, Jamba Juicewill pursue in a market development strategy in the Thai market. The purpose of the marketdevelopment strategy in Thailand is to help Jamba Juice: 1) increase the number of customersin each of the Jamba Juice locations, 2) Increase the number times customers buy from Jambajuice in each of the Jamba Juice locations 3) Increase the amount of money that Jamba Juicecustomers spend with Jamba Juice in each of the Jamba Juice locations. The IMC tools that willbe used in the market development strategy include Joint Promotion venture with Villa marketand fitness clubs, sampling, radio advertising, internet marketing, in store advertising, Pressrelease, sales promotion and alternative advertising.Newspaper advertising We’ll use advertise in the Nation magazine during the grand opening of the 5 locations.The color newspaper ad will have locations of Jamba juice Thailand as well have coupons thatcan be used within a month for: buy 1 get free smoothie; buy 1 smoothie and get a salad,sandwich at 25%Joint Promotion with Villa markets and Fitness Organization We’ll give coupons for a free smoothie to customers at all Villa market that spend atleast 500 baht during one shopping trip because Villa market customers seem to have moremoney, more concerned and educated about health compared the general Thai population.Along with giving coupons at Villa market we’ll give coupons for free smoothies with every new 10
  • membership at California Wow and Fitness Fitness-two of the largest fitness chain in Bangkokbecause the target market profile for California Wow fits the health conscious living, busyprofessionals that Jamba juice is targeting.Sampling Throughout the year, all the Jamba juice locations will have sample trays and cups ofvarious Jamba juice products including baked goods, wraps, smoothies and other drinks. Thiswill help increase the sales of Jamba Juice products.Membership Card Jamba Juice will implement a card just like Tops reward card. This card is free, and willkeep track of what Jamba Juice customer’s purchases, how much Jamba juice customersspend at Jamba Juice, the time and days they come to Jamba Juice. Members of the JambaJuice reward will receive discounts as well as free Jamba Juice products based on the amountof money they spend at Jamba Juice. This reward card will help to increase the loyalty to JambaJuice and increase the lifetime value of Jamba Juice customers.Internet marketing There will be a Thai/English website especially for Jamba Juice Thailand. Just like theUS Jamba Juice website, the Jamba Juice Thailand website will contain (Menu/Nutrition,Community & Events, Jamba Juice locations, jobs and Career, and well as Jamba JuiceThailand Corporate). There will be health and exercise information to help people live ahealthier lifestyle. In addition, on the website, people will be given a free eBook in Thai or English abouttaking care of their health if they sign up for a month e-zine. Each month the monthly e-zine willprovide tips, ideas to eat healthier, exercise more, and experience more wellness in mind, bodyand soul. There is also will be a Jamba Juice Facebook page for the Thailand market. The JambaJuice Facebook will allow Jamba Juice Thailand do such things: to announce its new productsofferings, as well as announce charity work. There will be pictures, and videos of Jamba Juiceteam members, influential people drinking Jamba Juice. Jamba Juice facebook members willopportunity to upload videos that create related to Jamba Juice, health and nutrition. 11
  • In store advertising Part of the Jamba juice brand is the store experience. We’ll have colors, furniture,decorations, as well in store music that help customers to link the Jamba Juice as a fun,energetic, healthy, California lifestyle quick service food chain brand. In the all Jamba Juice locations, the windows, the cups, the cup lids, poster, will used topromote Jamba Juice values, announce new products, inform about new promotions. Throughtheir fun, customer centric actions, Jamba Juice employees will help to reinforce the JambaJuice brand.Press Release and Media Coverage Jamba Juice Thailand will use press release and free media coverage (TV, Radio) tocreate awareness and positive understanding and positive attitudes towards Jamba Juice aswell as publicize the opening of Jamba Juice locations, educate the public about the benefits ofJamba Juice brand, announce the promotions, activities as all the sponsorship activities of allstores of Jamba Juice Thailand. Some of the newspapers that Jamba Juice Thailand will usepress release include Bangkok Post, the Nation, Matichon, Thai rat and Thai post.Sales Promotion Through out the year Jamba Juice Thailand will have constant sales promotion such asdiscounts on products, and free products. Examples of sales promotion throughout the yearinclude: • Promotion for introduction of new product • The begging Thai rainy season promotion • The end of Thai rainy season promotion • Thai new year promotion • Songrakan promotion • The royal family birthday promotion (where Jamba Juice Thailand will donate a percentage of sales of certain products to support the charities of the Royal family) 12
  • Alternatives Marketing To get people to start talking about Jamba Juice and generate word of mouth marketing,we’ll consciously be sending out free Jamba Juice smoothies and other products to Thai actors,singers, TV personalities, athletes as well as heads of big corporations. When Jamba juice firstlaunches its stores, Jamba Juice will provide a free lunch for the Thai legislatures.Market Research and Consumer Insight To satisfy the needs of the customers and improve the products and ideas Jamba JuiceThailand locations will elicit and implement ideas from its employees and customer to developnew products, improve products, to improve the customer experience, and to make the JambaJuice locations run more effectively and profitability. Jamba Juice Thailand will give cash andnon cash rewards to employees and customers who provide ideas that are implemented. After 6 months in operations, Jamba Juice Thailand will start conducting Qualitative andQualities research to do things: Improve products and develop more products, develop bettercustomer experience, Find out the positive and negative impressions that Thai consumer haveof Jamba Juice, improve the effectiveness of its adverting, improve overall profitability of Jambajuice locations.Financials: The budget allocated for the marketing of all Five Jamba Juice locations in Thailand is30 million baht. The following table is how the marketing budgeting for all Jamba Juice will beallocated. Advertising activity Amount allocated (baht) Newspaper 4,000,000 Joint Promotion 2,000,000 Website and internet marketing 3,000,000 Sampling 2,000,000 Press Release 100,000 Member card (development and implementation) 10,000,000 Alternative marketing 900,000 Charity 4,000,000 Sales Promotion 4,000,000 13
  • Total Advertising budget for Jamba Juice location 30,000,000Controls: • Measurement of each advertising medium Below are some key numbers that will measure the effectiveness of each IMC tool. Thesenumbers for measurement will serve as a baseline to measure future marketing activities. Key numbers to look at Number of people who redeem coupon, sales generated from newspaper Newspaper advertising adverting, customers that come because of newspaper advertising Number of people who get smoothie coupon from each location, customers Joint Promotion that come to redeem coupon from each location Number of samples of the different products (smoothies and non smoothies) Sampling each month Number of customers that get membership card, the customer value at the Membership Card year of card member vs. non card members Number of people who visit Jamba Juice website, number of people who sign up for email newsletter, number of people who sign up for face book profile, Internet Marketing number of comments and activity within facebook Number of press release generated, number of times that Jamba Juice is Press Release mentioned in TV,Radio, Internet, dollar value of press generated Number of sales generated for each product by each sales promotion, number of new customers generated from each sales promotion, publicity Sales Promotion generated from each sales promoted Alternative Advertising Number of high profile people seen with Jamba Juice Corporate Social the number of charities that Jamba Juice help, amount of money that Jamba Responsibility Juice donate to charities • At the end of year of the marketing plan measurementAt the end of the year 2011, we’ll see if the 5 stores in Thailand each have at least 20 millionbaht in total profits and as well as have at least 5,000 customers. 14
  • Implementation: Gant Chart Action Plan March-010 May-010 Aug-010 Nov-010 Sep-010 Dec-010 Feb-010 Jun-010 Jan-010 Apr-010 Oct-010 Jul-010 Dec-09 Program Marketing Plan Completion Newspaper Joint Promotion Sampling ` Membership Card Internet Marketing In store advertising Press Release Alternative Advertising Organization to implement Jamba juice marketing plan Jamba Juice Thailand CEOJamba Juice Thailand Head of Store managers of each Jamba JuiceMarketing location in Thailand Assistant store manager of each Jamba Juice location in Thailand Shift leader of each Jamba Juice location in Thailand Team leader of each Jamba Juice location in Thailand 15
  • Sources:Jamba Juice Website (2009a). 21 September 2009. < www.jambajuice.com/>.Jamba Juice Website (2009b) “A Healthy Franchise Opportunity” 20 September 2009.<http://www.jambafranchise.com/?>Jamba Juice Website (2009c) . “Jamba juice named #1 top healthy option in zagats 2009 fastfood survey”. 19 September 2009. http://www.jambajuice.com/#/press_releases/Jamba Juice Website (2009d). “Jamba juice launches complete range of delicious, simple andon the go food” 23 September 2009. . http://www.jambajuice.com/#/press_releases/Limsamarnphun Nophakhun. (August 19 2007), Sunday brunch: The future looks juicy.. TheNation. http://www.nationmultimedia.com/search/read.php?newsid=30045569&keyword=juice+barSqueeze Website. 24 September 2009.<http://www.tipco.net/squeeze/thai/beverage.asp?cid=2> 16
  • AppendixProduct Line for Jamba Juice ThailandGrab and Go Foods • Gobble licos • Green and Grain Wrap • Greek Goodness Wrap • Chimichurri Chicken Wrap • Asian Style Chicken wrapCalifornia Flat breads • Tomo Artichoko • Smokehouse Chicken • Mediettrane Yum • Four CheesyIced Fruit Tea Infusions (Juiced served over crushed icded) • Prickly Pear Tea Infusion • Pomogrenate Tea Infusion • Passion Fruit Tea InfusionIdeal Meals • Acia Topper • Mango Peach Topper • Berry Topper • Chunk Strawberry TopperHot Oatmeal • Plain Oatmeal with Brown Sugar • Fresh Banana Oatmeal • Blue Berry and Black Oatmeal • Apple Cinamon OatmealFresh Freezed Juice • Carrot Juice • Orange Juice 17
  • All Fruit • Mega Mango • Strawberry Whirl • Peach Perfection • Pomogrante ParadiseJamba Light • Berry Fullfilling • Mango Mantra • Strawberry NirvanaBlended for a purpose • Strawberry Energizer • Protien Berry Workout • Acia Super Antioxidant • Protien Berry Workout with Soy • ColdbusterJamba Classic • Blackberry Bliss • Pomegrante Pick Me up • Aloha Pineapple • Caribean Passion • Mango-a g0-go • Peach Pleasure • Banna Berry • Razzmatazz • Strawberry Surf Rider • Strawberry WildCreemy Treats • Orange Dream Machine • Peanut Butter Mood • Chocolate Mood • Matcha Green Tea Blast 18
  • Shots • Matcha Energy Shot-Soymild • Matcha Energy-Shot Orange Juice • Wheatgrass Detox ShotBoosts • Heart Happy Boosts • 3G Charge Super Boosts • Flax and Fiber Boost • Calcium Boost • Daily Vitamin Boost • Whey Protien Super Boost • Wieght Burner Super Boost • Antioxidan Power Super Boost • Soy Protien Boost • Energy Boost • Immunity Boost 19
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