Jamba Juice Case Study
External Analysis
The General Environment of the Industry
Jamba Juice and its immediate competitors operate under the industry entitled “snack and nonalcoholic beverage bars” [ (U.S. Census Bureau) ]. According to the U.S. Census Bureau the official description of the snack and nonalcoholic beverage bars is as follows: “This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn or (2) serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption on or near the premises. These establishments may carry and sell a combination of snack, nonalcoholic beverage, and other related products (e.g., coffee beans, mugs, coffee makers) but generally promote and sell a unique snack or nonalcoholic beverage” (U.S. Census Bureau). In analyzing the general environment of the industry, several of the six generic elements stand out among the snack and nonalcoholic beverage industry. The first considers the economic conditions and the impact it has on the industry. Realistically speaking fruit smoothies (and eating out in general) is one way a family can cut costs during tough economic times. As Jamba Juice and its immediate competitors (Planet Smoothie, Smoothie King and Juice It Up) approached the recession after the subprime crisis they were faced with lower traffic resulting in lower revenues. As fast food giants were fueling their bottom line with recession busting dollar-menus, healthy options were becoming an unaffordable luxury. Furthermore, the juice bar demographic appeals to a health conscious young woman [ (Costello) ]. While other industries (such as fast food and restaurants) are appealing to the entire family unit in their marketing endeavors. On the other hand, as baby boomers are reaching retirement age and become more focused on prolonging their life, concerns such as cholesterol and diabetes become far more important and
The General Environment of the Industry
Jamba Juice and its immediate competitors operate under the industry entitled “snack and nonalcoholic beverage bars” [ (U.S. Census Bureau) ]. According to the U.S. Census Bureau the official description of the snack and nonalcoholic beverage bars is as follows: “This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn or (2) serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption on or near the premises. These establishments may carry and sell a combination of snack, nonalcoholic beverage, and other related products (e.g., coffee beans, mugs, coffee makers) but generally promote and sell a unique snack or nonalcoholic beverage” (U.S. Census Bureau). In analyzing the general environment of the industry, several of the six generic elements stand out among the snack and nonalcoholic beverage industry. The first considers the economic conditions and the impact it has on the industry. Realistically speaking fruit smoothies (and eating out in general) is one way a family can cut costs during tough economic times. As Jamba Juice and its immediate competitors (Planet Smoothie, Smoothie King and Juice It Up) approached the recession after the subprime crisis they were faced with lower traffic resulting in lower revenues. As fast food giants were fueling their bottom line with recession busting dollar-menus, healthy options were becoming an unaffordable luxury. Furthermore, the juice bar demographic appeals to a health conscious young woman [ (Costello) ]. While other industries (such as fast food and restaurants) are appealing to the entire family unit in their marketing endeavors. On the other hand, as baby boomers are reaching retirement age and become more focused on prolonging their life, concerns such as cholesterol and diabetes become far more important and
Cited: Brandau, Mark. McDonald’s: A look at brand marketing. 24 June 2011. 26 October 2011 <http://www.nrn.com/article/mcdonald’s-look-brand-marketing>. Costello, Hollie. squeezing in some profit. 1 September 2000. 26 October 2011 <http://www.lookingfit.com/articles/2000/09/squeezing-in-some-profit.aspx>. Entrepreneur. Franchises. 26 October 2011. 26 October 2011 <http://www.entrepreneur.com/franchises/smoothieking/282804-0.html>. Jamba Juice. FAQ 's. 26 October 2011. 26 October 2011 <http://www.jambafranchise.com/faq.html#q7>. Jamba, inc. 10-Q August 2008. 29 August 2008. 26 October 2011 <http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMDgtMTg3NjAzL3htbA%3d%3d>. Jamba, Inc. . Form 10-k 03/14/11. 14 March 2011. 26 October 2011 <http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTEtMDY1OTk2L3htbA%3d%3d>. Jamba, inc. News Release. 16 August 2011. 26 October 2011 <http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-newsArticle&id=1597227>. Microsoft. Key Ratios. 25 October 2011. 25 October 2011 <http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=FinancialCondition&symbol=US%3aJMBA>. Smoothie King. Investments and Requirements. 26 October 2011. 26 October 2011 <http://www.smoothiekingfranchise.com/investments-and-requirements.php>. U.S. Census Bureau. Detailed Statistics. 26 October 2011. 26 October 2011 <http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=EC0772I2&-ib_type=NAICS2002&-NAICS2002=722213>.