Strategic Choice And Evaluation Paper
Strategic Choice And Evaluation Paper
The core component of Jamba in this strategic plan will be to offer to its clients an easy option for living healthy by proving snack and nutritious beverage options. Another alternative to the in store products will include smoothies made at home to be obtainable in grocery stores. This is a strategic choice and evaluation paper that evaluates various aspects of Jamba Juice strategic plan. The paper comprises of value discipline, generic strategies, grand strategy and recommendations Jamba Juice ought to implement to realize growth.
Value discipline
Pricing strategy
The product line of Jamba Juice does not vary for different countries or regions. Per unit costs of the products have consistency irrespective of the location. As a result, it is recommended that Jamba Juice implement a standard universal strategy of pricing. This uniform method of pricing will consider customers who know the price charges globally, along with the products of Jamba juice that have limited or no differentiation for justifying a change of price for different regions or countries. In addition, after establishing coverage in various regions, marketing pricing strategy is to be initiated. Considering the extant competition from Crush smoothie maker, the ultimate customer price for Jamba Juice ought to be based on the pricing of competitors. This will make Jamba Juice adjust both production, as well as, marketing to suit the price.
This strategy is recommended for Jamba Juice due to its experience in the industry and the confidence that they will have the capacity of attaining a lasting product cycle.
Product adaptation and modification
In the United States, Jamba Juice utilizes the motto, created by nature blended by Jamba. This sum up the mission of Jamba to offer the consumers with a natural product that can be customized to their preferences. The smoothies of Jamba juice comprise of different fruits, fresh squeezed juices and yogurt blends. The main goal of the company should be to offer clients with an easier option for healthy living and by choosing nutritious beverages and snacks. For the convenience of clients, Jamba Juice is to offer make at home smoothies at the local grocery stores. The products offered will comprise real fruit, non-fat yogurt together with vitamin C boost offering clients 100% of their everyday vitamin C value.
The only extra needed ingredient is apple juice for liquefying the fresh smoothie. Together with the vitamin C boosts, the in store smoothies can be customized with more than 10 others boosts which include flax and fiber boost, 3G charger super boost, a pro-biotic boost, a calcium boost, and energy boost among others. These boosts together with the large selection o yogurts enable consumers to create their own personal smoothie and customize their product in accordance to specific needs. In packaging, the company should use cups that are eco-friendly like paper that can be recycled. Using eco-friendly cups will make clients buy smoothie from Jamba without worrying of the effect to the environment. This will lead to customer satisfaction (Robinson, & Pierce, 2004).
Generic Strategies
Promotion mix
Advertising
The basic objective of marketing is making Jamba the largest healthy, active company, and then utilizes the success obtained to eventually expanding into other markets. The products for Jamba Juice do not cater for a certain gender or age; therefore, all demographics are to be considered in the advertisement. Nonetheless, the primary target market that Jamba Juice will attempt to use is individuals aged 15-34 years. In areas where Jamba Juice is an unknown brand, an ample budget for advertising in required for increasing brand awareness in the new market. The majority of the budget is to be spent in sales force, trade promotions and advertising. Jamba has a quality product that has a high chance to geta following in a new market. The goal of the company should be developing long term relationships that will make customers come back over and over again.
The needs of the customers are to be met on a business level. This implies providing efficient, quick service in locations that are clean and convenient, and this would increase their Jamba Juice satisfaction. The commitment of customers is to be increased on a personal level. Friendly customer services together with rewards promotions will keep its clients to return to the company. This will also increase the company’s reach positive word-of-mouth to consumers unfamiliar with the company’s brand. Increasing satisfaction and commitment will develop lasting relationships with the company’s clients. Research should be conducted to determine whether goals are being met. Focus groups and surveys are to be conducted to gather data for analysis of the situation.
Market coverage
It is recommended that Jamba Juice use an undifferentiated strategy of market coverage. Currently, Jamba Juice is operating under this strategy in most of the areas it is operating. Social norms and cultural differences are acknowledged and accounted for when entering a virgin market. As a result, Jamba Juice undifferentiated marketing strategy should be directed towards the demand of the target market of 15-34 years old in general. This undifferentiated marketing strategy would as well consider trend, health consciousness and on the go individuals. This is a powerful strategy for Jamba Juice to implement considering its successful history in most parts of the United States. Jamba Juice possesses over thirty diverse varieties of custom smoothies together with Jamba boosts to adopt the cost effective undifferentiated strategy since virtually the different consumer objectives are attained. Undoubtedly, an undifferentiated marketing strategy fulfills the needs of all customers together with market demands and this paves way for successful penetration in the market.
Competitive advantage for the company
The company is able to give its clients unparalleled health experience by providing the best ingredients, amazing flavor, outstanding customer service and nutrients. This has made Jamba Juice become a leading smoothies and juice retail chain in the country. Jamba Juice is a company flowing on living a balanced lifestyle integrating nutrition, fun and fitness. It has a passion for categorical commitment to quality and health. These are keys to fulfillment of its customers and to its success. The company is known for its vegetable juice blends and fresh-squeezed fruit made on the spot without additives like preservatives, sugars or artificial flavors.The company is still going strong financially despite the prevailing economic turmoil. The available resources can be utilized for mounting a decisive advertising campaign that will see many clients consider using Jamba Juice products. Creating awareness about the products to diverse demographics will increase the appeal for the products which would in return increase the market share (Porter, 1998).
Grand strategy
Jamba can benefit considerably by going local. This implies that the company should be receiving the bulk of their fresh fruits and vegetables from local growers instead of shipping a majority of the goods. Going local would save the company money, as well as show that the organization is social responsible by avoiding dependence on fuel guzzling trucks together with planes for the company operation. Depending on the local products would mean that the company products would be availed at low prices. In experienced, young employees should also be paid little wages and this would reduce the operation cost hence prices would be lowered. The new marketing strategy requires that a sizeable investment is placed. This investment should be able to pay for itself within a short duration. In addition, sales should be increased while at the same time decreasing the operating cost. Sales can be increased by increasing stores and conducting a decisive campaign to market the products.
Since there have been talks of imposing a tax on junk food, Jamba should strive hard to ensure that all products the company offers are healthy. This will ensure that it gets good appeal while at the same time avoiding unnecessary expenditure on taxes. However, the company should remit the designated tax at the appropriate time to the appropriate authorities. Tax remittance as required by law will make the company recognizable by authorities and avoid friction with the authorities. In the different jurisdictions in which the company operates, it should ensure that the laws are followed to reduce chances of being blacklisted which would affect its operations. Jamba Juice should expand its operations both locally and internationally. As many stores as possible should be opened locally followed by advertisements and campaigns. These advertisements and campaigns would increase the product appeal to clients. Operations should be established to create a new market niche in new jurisdictions. New operations would mean more profits to the company as there will be increased market share.
Recommendation
Marketing Plan: The Company has been working well in places with high education and high income demographics. Some of these spots include regional malls, financial districts, walking districts, shopping districts and alternative venues like college campuses and airports together with whole foods market grocery. Jamba Juice should be extremely keen on site selection since it is very crucial for any company. In order to create the best choice for consumers, Jamba should begin with the easiest and most convenient for customers to access what they require.
Forecasts Plan: Forecastsfor the future appear very good for the continued Jamba Juice success. Though there is no specific category for smoothies, soft drinks can be used as a guide. Considering five years forecast, considerable growth is expected. With the Americans drinking more and more flavored beverages and soft drinks tea and coffee consumption are expected to be unaffected. This means that Jamba Juice would like to tap into some of the customers of coffee shop and market to fresh demographics. The company should also utilize the emerging technologies. Another factor to consider is that consumption of fuel is expected to decrease with the increase in personal income.
- For the company to grow it needs to expand its freshly squeezed juice line and also debut new concept stores to tap into the growing consumer demand for fresh juice. Most consumers want to get healthy products. In addition, the company should open more new locations in and outside United States. Existing locations should be revamped to meet the clients’ demands with emphasis on fresh juices.
Franchise Plan: Jamba Juice should seek franchise relationship with well established foodservice or specialty retail companies that have existing operations resources and management so as to develop the brand of Jamba in the entire country (Stern, & Deimler, 2006).
Conclusion
For Jamba Juice to experience favorable operation, it should implement a marketing plan that increases the market share for the company products. Market share can be increased by establishing new stores both locally and internationally. It should strive to maximize its profits while minimizing the operation costs. The company products are appealing to most of the clients as the company is dedicated to providing products that are secure to the health of Americans. The quality of products should be maintained high to increase the product appeal to varied demographics.
References
Market Indicators and Forecasts (2012) Retrieved November 1, 2012 from EIU Data Services database.
Porter, E.M. (1998) Competitive strategy: Techniques for analyzing industries and competitors. New York: McGraw Hill Publishers
Robinson, R. & Pierce, J. (2004) Strategic Management, New York: McGraw Hill>Stern, C.W. & Deimler, M.S. (2006) The Boston Consulting Group on Strategy: Classic Concepts and New Perspectives, New Jersey Wiley
Www.jambajuice.com (2012) [Electronic Version] Retrieved November 1, 2012
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