TEAM YELLOW JACKETS

A NEW MODEL FOR THE SMOOTHIE BUSINESS

STEVEN EVANS, ALKA GARG, KAMAL MANCHANDA, JOSH STUART, GEOFF WELSH

THE NEED: MEET SALLY!

TEAM YELLOW JACKETS

1. Non-mainstream 2. Special dietary requirements3. Meticulous Planner4. Busy Professional; avid online

shopper5. Needs custom smoothies exactly

to her specifications; ordered online in advance and delivered right to her doorsteps

Diet conscious, ultra tech-savvy but also ultra-pressed for time

• Not setup to meet Sally’s needs…require a large fixed cost in getting the facilities set up to create custom smoothies for individual customers

• Online ordering system, customer support team, shipping / logistics solution required for the new business model

• Expanded variety of fruits, vegetables and other ingredients would require Jamba Juice to look for new suppliers and expand inventories at existing locations

• Jamba Juice can increase profits more by expanding its existing business model (open new stores) instead

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WHY IS JAMBA JUICE FAILING SALLY

OUR BUSINESS MODEL:

• Customers will go to our website to design their smoothies to meet their specific dietary needs and tastes.

• We produce customers’ made-to-order smoothie mixes in our centralized processing facility, using specialized machinery.

• We ship the custom smoothie mixes directly to customers, where customers will combine the mix with ice in a blender before drinking.

TEAM YELLOW JACKETS

Your custom smoothies, shipped direct to you.

• Customized preferences with idiosyncratic needs

• Well informed and able to plan

• Regular demand

• Special dietary requirements

• Referrals from dieticians/ doctors

• No brick and mortar stores

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SCOPE CONDITIONS

TRADEOFFS

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Our Model Jamba Juice

Customer Segment

• Self-aware and Regular

• Located across the country

• New and Irregular• Located within a short

distance of a storefront

Customization • Higher • Lower

Specialized Fixed Costs

• Centralized processing facility

• Batch Assembly• Technology• Labor• Inventory spread over

entire customer base

• Retail Distribution• Mass Marketing• Inventory required for

each store front• Labor

Avoided fixed costs

• Retail Distribution• Mass Marketing

• Centralized processing facility

• Batch Assembly• Technology

Smoothie formulation

• Customers build their own smoothies

• Customers limited to the predetermined recipes developed by JJ

• Measure increase in awareness regarding impact of food in Medical Conditions.

• Forecast the market for specialty-diet foods, such as vegan, gluten free, lactose free, etc…

• Evaluate popularity of substitutes, such as the trend of making customized smoothies at home.

TEAM YELLOW JACKETS

EVIDENCE OF MARKET FOR OUR BUSINESS MODEL

A NEW MODEL FOR THE SMOOTHIE BUSINESS:

QUESTIONS?

TEAM YELLOW JACKETS