An TranAn TranSteven LySteven LyDaniel TanDaniel Tan

Amber KhanAmber Khan Shawn M. Saran Shawn M. Saran Gurkaran Singh Gurkaran Singh

An TranAn TranSteven LySteven LyDaniel TanDaniel Tan

Amber KhanAmber Khan Shawn M. Saran Shawn M. Saran Gurkaran Singh Gurkaran Singh

Establish Jamba Juice as the world’s leading source of Establish Jamba Juice as the world’s leading source of

healthy energy in the form of freshly blended healthy energy in the form of freshly blended

beverages with an uncompromising commitment to beverages with an uncompromising commitment to

making a difference through our value system.making a difference through our value system.

• Four college studentsFour college students– Kirk Perron, Joe Vergara, Kevin Peters, and Linda OldsKirk Perron, Joe Vergara, Kevin Peters, and Linda Olds

• 1990 - Juice Club in the college town of San Luis 1990 - Juice Club in the college town of San Luis Obispo, CaliforniaObispo, California

• 1993 - Palo Alto, CA and Irvine, CA.1993 - Palo Alto, CA and Irvine, CA.

• 1995 – Changed name from “Juice Club” to 1995 – Changed name from “Juice Club” to “Jamba Juice”“Jamba Juice”

F.I.B.E.R.F.I.B.E.R.

• FunFun

• IntegrityIntegrity

• BalanceBalance

• EmpowerEmpower

• RespectRespect

Customer Service Focuses:

1. Greet Customers with the Utmost Enthusiasm

2. Make Great Healthy Consistent Products

3. Be Flexible & Work Together as a Team

4. Maintain Cleanliness of Store

5. Always say “Thank You”

6. “Wow” the Customer

• Blended Beverages– All Fruit Smoothies

• “Boost” - soy/wheat protein , cholesterol blocking plant sterols

• Fresh squeezed juice– Orange Juice, Carrot Juice, and etc.

• Shots– Wheatgrass– Matcha Green Tea

• Lemonade

• Baked Goods:– Pretzels– Blueberry Loaves

• Package Snacks:– Trail Mixes– Protein Bars

• Breakfast Blend topped with granola.

• Risk of EntryRisk of Entry– MediumMedium• Little CapitalLittle Capital

– Lease SpaceLease Space– Health PermitHealth Permit– An abundant teenage work forceAn abundant teenage work force

• RivalryRivalry– HighHigh• Fragmented market structureFragmented market structure

• Industry: Industry:

– QSR (Quick Serve Restaurant)QSR (Quick Serve Restaurant)

• Burger KingBurger King

• McDonaldsMcDonalds

• SubwaySubway

• Competitors:Competitors:

– StarbucksStarbucks

– Peet’sCoffeePeet’sCoffee

– Orange JuliusOrange Julius

• Bargaining Power of Buyers– Low

• Cater to different segments to other QSR• Many buyer, thus not one set of consumers can

change the price or menu.

• Bargaining Power of Suppliers– High

• Limited number of input firms

• Threat of Substitutes– High

• Consumers have many products to choose from

• “Good Health” menu– Freshly squeezed juice– Baked oatmeal cookies and brownies– Fresh yogurt– Matcha Green Tea– Wheat Grass Shot– Smoothies

• Include a “Boost” such as: Whey Protein, Immunity, Chia Seeds, Vitamin C, Green Caffeine, etc.

• Quality– Same, if not higher than Starbucks– Blends from freshly blended organic fruit

• Cost– Is not a low cost structure, but has lower cost

structure than Starbucks• $5 in health?? Or $5 in coffee??

• Efficiency– High in preparation of products– Sense of urgency to deliver

under 3 minutes

• Inventive– New Breakfast Blend– New “Boost” for smoothies

• “Charger Super Boost" with green tea, guarana and ginseng, proven to increase alertness and invigorate the body with an astounding 120 milligrams of caffeine

• "Omega-3 Super Boost“ with omega-3 fatty acids and seven grams of fiber to help the digestive system

• Headquarter – Emeryville, CA• Fiscal Year of 2007– $317 million gross revenue

• January of 2008– Over 715 stores

• 501 company-owned, 206 franchisee-owned.

– Over 10,000 Employees– Market Cap of $32.64 M– Revenue growth of

10% rate quarterly– Debt to Equity ratio is 0.007

• Safeway’s MEDs– Merchandise End Display

• Increase in Revenue– Balancing a low operating cost– Decrease adequately in the cost of

operations– Increase in market share

• Economies of scale, sales growth in a stagnant industry, reputation and increased bargaining power– Through share of preference (increased through

product, pricing, and promotional changes)

• Horizontal Integration– Increase Jamba Juice’s bargaining power with

their suppliers and buyers• Operating as a single industry• Lowering the cost structure• Offering a variety of different products• Decreasing our industry’s

competition

• Advantage:– Build from our strengths (health improving

ingredients) and emphasize them based on our cost structure

• Franchising– Continue and refocus on franchising stores.

• Expanding without adding more expenses.• The franchise stores absorb the new store

capital costs and mitigate the risk of a soft market

• Tightened Cost Factors– Labor and Food Costs

• Training.• Employment age range.• Working closer with suppliers.

Questions?