Jamba Juice Problems

Jamba Juice problems: Competed with likes of Mcdonalds and starbucks (External Problems), 4 straight years of net financial loss(Internal) (main competitors- Mcdonalds, Starbucks and Tim Hortons because they were seling smoohies)

Confused the employees on who the target was, since it was constantly moving

CEO James white initiated new strategic approach with the following goals:

• Deliver improved comparable sales in company owned stores,
• build a retail food capability across all four day parts (breakfast, lunch, afternoon, dinner),
• accelerate the development of franchise and nontraditional stores,
•  implement a disciplined expense-reduction plan,
• build a consumer products licensing growth platform.

Company Culture: Jamba’s leadership team attempted to focus on the following:

• Leadership Capability- Jamba focused on attracting and retaining quality individuals who exected the business strategy while building the platfor for growth.
• Store level capapblitiy- ensure the stores were fully staffed and trained to provide energetic and memorable jamba store experience.

Jamba juice rectuited and retained leders wieht broad experience of management and industry.

Believed the jamba experience was a competitive edge

Jamba juice relys heavily on supplies of fresh and fresh-frozen fruits and veggies, supply of produce had to be the highest quality and was consistent throughout the year, so what JAMBA JUICE did was purchased all of its projected requirements for the coming year from suppliers at the height of the season for that particular type of produce.

They contracted with independent distribution companies to distribute produce to the stores. They believed by clustering future store development, it could begin to lower distribution costs and reduce the cost of goods sold. THEY DID NOT MAINTAIN CENTRAL WAREHOUSING FACILITIES

Competitor: BY 2010 mcdonalds came in to the picure by introducing smoothiew line:

Mcdonalds 12 ounce smoothie- $2.29, while Jamba juice for 16 ounche-$3.55

International market Canadian-based company Tim Hortons was beginning to sell berry smoothies  in U.S and Canada (Candadian market was hot, with “Analysts there believed the smoothie market was “hot”, growing 8 percent in 2010, with relatively small consumption” Pg. c254 Case Jampa juice (Dess). Jamba inteds to expand in to Canada, with franchise development up to 125 locations by 2020.

Customers: Jamba juice had a broad product selection which made it a compaetitor againsta  variety of “snack” prpviders (coffee houses, doughnut shops, ice cream parlors) as well as fast food establishments. Jamba core custormers are health-conscious consumers who led or aspired to lead a healthy lifestyle. There was a growing number of consumers with a focuse on living a healthy lifestyle which impacted the grocery, restaurant and health care industries

Growth strategy was to expand its existing markets and develop new markets, while leveraging it support infrastructure. It required strong unit-level economics and jamba strove to achieve three things: