Jamba Juice Thailand4

2011

BSBMKG516B

Profile International Market

Prepared by

Miss Jirattikarn Chaipattana

8/6/2011

LAUNCHING “JAMBA JUICE” IN THAILAND

TABLE OF CONTENTS

1. Introduction................................................................................................................

1.1 Business Background................................................................................................

1.2 Selecting international country………………………………………………………

2. Opportunities and Challenges for Jamba Juice in Thailand.............................

2.1 Key Opportunities..................................................................................................

2.2 Key Challenges and Threats.................................................................................

3. PEST Analysis: Issues influencing Marketing Decisions.......................................................

3.1 Political Issues..........................................................................................

3.2 Social Issues.......................................................................................................

3.3 Economic Issues..........................................................................................................

3.4 Technological Issues.......................................................................................................

4. Competitor..............................................................................................

5. Product Positioning..............................................................................................

6. Target market strategy...........................................................................................

7. SWOT Analysis...........................................................................................

8. Marketing Mix...........................................................................................................

8.1 Product................................................................................................................

8.2 Pricing Strategy...................................................................................................

8.3 Place....................................................................................................................

8.4 Promotion............................................................................................................

Appendix........................................................................................................................

2 Miss Jirattikarn Chaipattana Student ID: 20092330

1. Introduction

Jamba Juice is a dynamic and young company which serves up delicious,

nutritious, energizing smoothies and juices. Jamba Juice is one of the top smoothie

restaurants in the U.S. with over 700 stores in 30 states. It is known as one of the

leaders in the quick-serve fruit and vegetable juice market nationwide.

Jamba Juice was founded in California in April 1990 by Kirk Perron, and

incorporated in 1991 as Juice Club, Inc. The name changed to Jamba Juice in 1995.

They entered into an operating agreement with Whole Foods in 1997 to sell only

"natural“smoothies.

We decided to choose to launch Jamba Juice in Thailand because Thailand is

one of the most dynamic retail food and drink markets in the Asia-Pacific region.

The Retail and Food Services Business grew by 3.1% from last year, mainly from

the strong branding-building and branch expansion of the Squeeze Juice Bar. The

leadership in the Juice Bar Business which they are rapidly adjusted the strategies in

expanding the branches along with implementing several promotion activities and

ended the year of 2010.

As well, The franchise industry is still very popular among Thai investors because

it is perceived as an attractive and relatively safe form of investment. International

franchises control 70 percent of the total market. The U.S. dominates with 65 percent of

the international franchising market. The quality, standards, brands, and innovations

offered by U.S

Jamba Juice would position itself to promote the culture of an “authentic fruitful

life”. Jamba Juice offers low-fat, high-fibered, all-natural and premium wholesome

nutrition that helps the consumer keep fit as well as offering an alternative to breakfast,

lunch or mid-afternoon break. This association could attract a potential target market in

the city: urban businesswomen between ages 25 and 40. Two main trends among these


women are their need to stay fit and preserve their youth, leading them to consume

expensive and unhealthy diet medicines. In addition, business people lack free time to

have breakfast, thus providing Jamba juice and opportunity to capitalize into the

breakfast market. Our target market want convenience and quality.

In brief, we think Thailand’s market value is added despite certain cultural and

competitive hindrances. Thailand, nowsaday, represents a unique mix of Western and

Eastern cultures where people generally accept Western culture and welcome Western

products in a positive light.

1.1 Business Background

Jamba Juice is a dynamic and young company which serves up delicious,

nutritious, energizing smoothies and juices. Jamba Juice is one of the top smoothie

restaurants in the U.S. with over 700 stores in 30 states. It is known as one of the

leaders in the quick-serve fruit and vegetable juice market nationwide.

Jamba Juice was founded in California in April 1990 by Kirk Perron, and

incorporated in 1991 as Juice Club, Inc. The name changed to Jamba Juice in 1995.

They entered into an operating agreement with Whole Foods in 1997 to sell only

"natural“smoothies.

Jamba Juice uses real fruit and processed fruit juices from concentrate. All

smoothies, except for its "All Fruit Smoothies," contain another ingredient, as per the

recipe: sherbet, frozen yogurt, sorbet, plain yogurt, low-calorie dairy base, chocolate

base, or soymilk.

Jamba Juice debuted its new organic steel-cut oatmeal in January 2009. The

oatmeal is freshly prepared every morning with soy milk and includes toppings such as


http://en.wikipedia.org/wiki/Concentrate

brown sugar crumble, fresh banana, blackberry-blueberry, apple cinnamon and berry

cherry pecan.

Mission Statement

Jamba juice’s philosophy is “ what you put into your body feeds your spirit, gives

you energy to do the things you love, and inspires a balanced life”.

Jamba juice believes that personal well-being as well as the health of our

communities and planet

Jamba Juice Menu:

white gummie bear

pink starburst

chocolate covered strawberry or cherry

strawberry shortcake

THANK YOU JESUS!

watermelon jollyrancher

orgasm in a cup

smartie

butterfinger

cherry slurpee

cactus cooler

Location:

• Over 640 locations operating in 21 states

• 357 stores located in California, 15 in Oregon, 31 in Washington and New York

has 19

1.2 Select International Marketing Country Country1: China


Economic growth appears that its growth in 2011 will be slower than in 2010

while inflation will actually be higher. The impact of tighter monetary policy on inflation

will likely come later. The bigger issue, however, is that authorities are torn between

concerns about inflation and fear that the fight against inflation will result in a much

higher-valued currency. That, in turn, would hurt export competitiveness and

employment in China’s factories.

Country 2: Indonesia

Indonesia has suffered from a chronic problem of government under-spending,

especially in the infrastructure arena. The impending Land Acquisition Bill will provide

the government with the necessary leeway to boost infrastructure spending, which is

currently facing regulatory bottlenecks.

Core inflation accelerated to 4.64 percent from the 4.62 percent pace during the

previous month. This upward trend is partly driven by rising international commodity

prices, relatively high inflationary expectations and strong domestic demand.

Country 3: Thailand

The Retail and Food Services Business grew by 3.1% from last year, mainly from

the strong branding-building and branch expansion of the Squeeze Juice Bar. The

leadership in the Juice Bar Business rapidly adjusted the strategies in expanding the

branches along with implementing several promotion activities and ended the year of

2010.

As well, The franchise industry is still very popular among Thai investors because

it is perceived as an attractive and relatively safe form of investment. International

franchises control 70 percent of the total market. The U.S. dominates with 65 percent of

the international franchising market. The quality, standards, brands, and innovations

offered by U.S

While opening stores in Thailand, Jamba Juice would position itself to promote

the culture of an “authentic fruitful life”. Jamba Juice offers low-fat, high-fibered, all-


natural and premium wholesome nutrition that helps the consumer keep fit as well as

offering an alternative to breakfast, lunch or mid-afternoon break. This association could

attract a potential target market in the city: urban businesswomen between ages 25 and

40. Two main trends among these women are their need to stay fit and preserve their

youth, leading them to consume expensive and unhealthy diet medicines. In addition,

business people lack free time to have breakfast, thus providing Jamba juice and

opportunity to capitalize into the breakfast market. Our target market prefer convenience

and quality.

In brief, we think Thailand’s market value is added despite certain cultural

and competitive hindrances. Thailand, Nowadays, represents a unique mix of

Western and Eastern cultures where people generally accept Western culture and

welcome Western products in a positive light.

2. Opportunities and Challenges for Jamba Juice in Thailand

2.1 Key Opportunities

Thailand Retail and Food Services Business grew by 3.1% from last year, mainly

from the strong

branding-building and branch expansion of the Squeeze Juice Bar. The leadership in

the Juice Bar Business rapidly adjusted the strategies in expanding the branches along

with implementing several promotion activities and ended the year of 2010.

Smoothies belong to the fruit and vegetable juice market, which is also part of the

soft drink market. Apart from juices, this market includes bottled water, carbonates,

concentrates, functional drinks and ready-to-drink (RTD) tea and coffee. The

development of the Thailand soft drinks market looks positive.Thailand’s fruit juice

market is estimated to grow up to $1.8 million for fruit juice retail business.


The expansion of convenient stores as well as large and small superstores, whose

growth had a significantly effect on the business growth and competition and influenced

consumers’ selections as well

2.2 Key Challenges and Threats

The leading companies in Thailand RTD fruit market are Tipco (TH) PLC.

Squeeze Juice Bar. The leadership in the Juice Bar Business rapidly adjusted the

strategies in expanding the branches along with implementing several promotion

activities and ended the year of 2010.

It continued to gain consumers throughout the years because of its fresh taste,

leader image and aggressive marketing. Apart from soft drinks and juices, coffee shops

also present an alternative to smoothie bars. Big US players such as Starbucks have

already gained a solid foothold in Thailand.

Shifts in consumer preferences of high-protein and low-carb diets as well as the

appearance of other healthy beverages could slow demand and thereby impact retail

juice and smoothie bar revenue streams.

Jamba Juice will use a franchising system in Thailand, which brings about

several advantages along with some challenges and risks. Finding reliable franchisees

and exercising regular controls on them will represent a big challenge.

Jamba Juice (Thailand) as well as other juice beverage, have to stay within the

law and be aware of legislation health and safety, advertising standards, consumer

protection, trades description.

3. PEST Analysis:

Political Influences:


Thailand’s still has a severe political unrest which directly affected the out-of

home consumption. Business significantly, especially in the Bangkok

Metropolitan. However, after the political situation had been resolved.

Stay within the law (being aware of legislation health and safety, advertising

standards, consumer protection, trades description)

Restriction on imports

Economic Influences:

The devaluation of the Baht currency increases the non-Baht denominated

franchise fee payments. Thus, it affects the franchisees’ costs to rise

significantly.

Due to the economic downturn, the already tight competitive market, limits the

opportunity for franchise operators to pass on this burden to the customers

through price increases.

Exchange rates

Taxes (if they go up so will the costs for consumers)

Recession (people have less disposable income (prices go up for the company

and for thai consumer)

Social & Cultural Influences:

There is also a growing interest in healthy foods, in line with global shifts towards

Health-consciousness. Bottled water, juices and energy drinks are becoming

increasingly popular.

From now on, people will no longer consume food just to give them energy, or to

enable the body to perform its normal duties. People will search for food which

takes care of their health better than in the past. If we are able to limit what we


consume each day so that we do not take in more than our bodies need, then we

have to select things which are actually beneficial for our bodies.

Consumer habits are changing and new social media outlets are increasing

thereby creating many opportunities for both businesses entering the country as

well as agencies within the country.

Technological Influences:

Advanced in technology change product (freshness) /packaging/flavors

Advances in production technology (more efficient + better quality/ less staff

required = cheaper for Jamba Juice = cheaper for customers)

Improved media/communication internet/mobiles etc

4. Existing competitors operating within Thailand

Squeeze Juice Bar ( owned by Tipco)

o Location:

Major Cineplex cinemas , Central World Plaza , Siam Paragon , Villa

Supermarket in J Avenue , ABAC Bangna and Tipco Tower on Rama 6

Road

Product:

Serve smoothies made from pure juice , luscious fruit , sorbet ,

homemade yogurt and invigorating nutritional supplements

o Target

Male/Female

Teenager/ Office worker

Health conscious / Active lifestyle

Boost Juice Bar

o Location: CBD Central Chidlom (G Flr.)


o 2007: Thailand Juice Bar Awards – Outstanding quality

o Target

Core target market aimed at the 25 year old female

Who loves life and is looking for a healthy alternative to fast food!

o Strength:

High levels of customer service, groundbreaking national and local

store marketing programs

Sophisticated web-based IT reporting, financial systems and a world

class management team.

Red Mango

o Slogan: Healthy original yogurt ice-cream

o Origin: Founded in 2008 in South Korea

o 1st operate in Thailand: 2007

o No. of store in Thailand: 12

o Price: Small 100 Baht

o Value preposition: First bring yogurt menu to Bkk, Focus on healthy & well

being, Real yogurt & all natural, Décor with comfortable & stylish

environment, Celebrity owner image.

Buddhi Belly

o Slogan: Your place for creative expression

o Origin: Founded in 2008 in Thailand



o Price: Small 55 baht / Medium 95 baht, Large: 185 baht

o Value preposition: Friendly culture, Focus on healthy attribute of yogurt /

change special yogurt every 2 weeks/ Hokkaido origin source of yogurt.


YogenFruz

o Origin: Founded in 1995 in Canada


o Price: None

o Value preposition: Healthy & active lifestyle, Unique flavor: sweet, smooth

tart taste & smooth texture

iBerry

o Slogan: Your place for creative expression

o Origin: Founded in 1999 in Thailand


o No. of store in Thailand: 13, also serve premiere restaurant & hotel

o Price: 100 baht

o Value preposition: 1st local premium ice cream in Thailand, Natural&

healthy, Unique Thai fruit flavor , Décor: modern, warm, chic atmosphere.

Ice Monster

o Origin: Founded in 2000 in Philippine



o Price: Regular 79 Baht

o Value preposition: Shaved ice with fresh fruit topping

5. Product positioning

Differentiation

Uniqueness of Flavor

Superior Product Quality

Outstanding service with the intimacy


Decoration & Interior Design

Key message:

Jamba Juice is an “authentic fruitful life”. Jamba Juice offers low-fat, high-fibered,

all-natural and premium wholesome nutrition that help the consumer keep fit as

well as offering an alternative to breakfast, lunch or mid-afternoon break for

people with a healthy active lifestyle and who prefer enjoys a cold, healthy drink

on a hot day

Strategic plan:

Increase Advertisement and Promotional Budget

Expand visibility via “Kiosk” shop type

Sales Person communication

Communicate brand via premium materials

Social responsibility strategy

6. Target market strategy

Gender : Female / Male

25-35

Occupation : Student / Employee

Educated and devoted to career

SES : A, B

People with a healthy active lifestyle / Enjoy relaxed social setting

Anyone who enjoys a cold, healthy drink on a hot day

7. SWOT Analysis: Jamba Juice (Thailand)

Strengths


• Strong Brand Name

• Locations

• Healthy Products

• Great variety of choice in Menu -from fresh squeeze juice to 30 kinds of

smoothies

Weaknesses

Stand alone position

Expensive

Criticized for being less healthy than advertised

Opportunities

Expand distribution into department store. (Shop / Kiosk)

Service line extension; Delivery service.

Potential in Business Section; such as Restaurant, Hotel.

Herbal Flavor, especially for Health conscious consumer.

Threats

High competition in domestic market.

Global rival such as Boost juice bar (Inter-Brand with sources of Capital)

Product depends on seasonal fruits (Discontinuously).

8. Promotion mix

Product strategy:

Product Positioning: Premium


Highest Quality Juice & Smoothie

Place strategy: to expand channel distribution

Department store, office tower, tourist attraction.

Promotion strategy:

Advertising:

Television advertisements should also be made to inform our customers of our product.

Print advertisement at BTS stations as well as online advertisement on popular

business websites can directly advertise on our store locatio

Direct mail should be in the format of menus as well as promotional strategies

like buy 10 get 1 free. These should be distributed close to our store locations at

large corporations.

Internet and Social media i.e. face book, Twitter.

Email marketing: By having customers fill out their information every time they

purchase a product, monthly promotional information on new products or events.

Event:

Before the stores open we should create a ”hype” and tickle customer curiosity to

maximize demand. Creative strategies such as having inflatable Jamba Juice

figures hand out coupons and or testers in financial districts should be done. If

we can stir curiosity in people, word of mouth can help us advertise about our

product

Special events such as customer appreciation day where the company gives out

one free smoothie per customer. This could boost new customers to try out the

drinks that Jamba Juice has.

Sales promotion:

Buy one get one free


Appendix:

Williams, B. (2009, July 29). Smoothie King Expansion Signals International

Trend

Toward Healthy Living. Retrieved April 14, 2010, from

http://www.smoothieking.com/

Consumer Trends “Non-Alcoholic Drinks in Thailand” December 2010.

Euro monitor International. "Fruit/Vegetable Juices in Thailand." (2010).

Retrieved on Sept 3, 2010. From

http://www.portal.euromonitor.com/portal/default.aspx

http://www.euromonitor.com/ice-cream-in-thailand/report

http://www.jambajuice.com/

http://en.wikipedia.org/wiki/Jamba_Juice

http://www.youtube.com/watch?v=_BbL9H7ZwjQ

http://aol.careerbuilder.com/Jobs/Company/C8C7566808BZBHD3KHV/Jamba-

Juice/?cbsid=0f3425d3a0c54e27a67097a2a3a69ade-248465876-RG-

4&&cbRecursionCnt=1

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Food-and-beverage/Documents/Thailand%20Food%20and%20Beverage

%20Market%20Profile%20-%20June%202011.pdf

Thailand Board of Investment (2011), Industry Focus, March Issue

Thailand Board of Investment (2008), Thailand of Investment: Food Industry

Business Monitor International (Q2, 2011), Thailand Food and Drink Report

Thailand Business News (December 2010), Thailand raises minimum wage

“US: Jamba Juice Expands.” Retrieved February 21, 2009 from: http:www.just-

drink.com/article.aspx?id=96457.


http://www.nzte.govt.nz/explore-export-markets/market-research-by-industry/Food-and-beverage/Documents/Thailand%20Food%20and%20Beverage%20Market%20Profile%20-%20June%202011.pdf



http://www.ats.agr.gc.ca/ase/5666-eng.htm

http://aol.careerbuilder.com/Jobs/Company/C8C7566808BZBHD3KHV/Jamba-Juice/?cbsid=0f3425d3a0c54e27a67097a2a3a69ade-248465876-RG-4&&cbRecursionCnt=1



http://www.youtube.com/watch?v=_BbL9H7ZwjQ

http://en.wikipedia.org/wiki/Jamba_Juice

http://www.jambajuice.com/

http://www.euromonitor.com/ice-cream-in-thailand/report

http://www.portal.euromonitor.com/portal/default.aspx

http://www.smoothieking.com/

US Smoothies Market. Report Buyer. Retrieved February 20, 2009 from:

http://www.reportbuyer.com/food_drink/dairy/us_smoothies_market.html.

Yahoo Finance! (2009, February 22) Jamba Juice Stock Page. Retrieved

February 22, 2009 from: http://finance.yahoo.com/q?s=JMBA

Yahoo Finance! (2009, February 22) Processed and Packaged Goods Industry.

Retrieved February 22, 2009 from: http://finance.yahoo.com/q/in?s=JMBA

http://www.researchandmarkets.com/reports/603052/

executive_report_on_strategies_in_thailand

Reports – Consumer Lifestyles in Thailand

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Deloitte%20Research/dtt_dr_apeconoutlook_june2011.pdf


http://www.researchandmarkets.com/reports/603052/executive_report_on_strategies_in_thailand

http://www.researchandmarkets.com/reports/603052/executive_report_on_strategies_in_thailand

http://finance.yahoo.com/q/in?s=JMBA

http://finance.yahoo.com/q?s=JMBA

http://www.reportbuyer.com/food_drink/dairy/us_smoothies_market.html