Josh Sarver

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sExecutive Summary

Market Analysis

Situation Analysis

Competitve Analysis

Creative

Resources

Who is Jamba Juice?Goals and Objectives

Target Market

Major CompetitorsSmoothie and Juice Market Share

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SWOT Analysis

Media PlanObjectiveStrategyPlacementBudgetSummary

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EJamba Juice

Jamba Juice is a leading chain of smoothie restaurants. The company has over 700 locations throughout 30 states, the District of Columbia and the Baha-mas. 500 of these stores are company owned while the remainder are franchised, which together brought in over $317 million in 2007.

Jamba Juice was founded in 1990 by Kirk Perron, a Cal Poly graduate,along with Joe Vergara, Kevin Peters and Linda Ozawa Olds. The company wasincorporated in San Luis Obispo, California in under the name Juice Club Inc.

Soon after opening their first stores in San Luis Obispo, Palo Alto and Irvine, Jamba began a deal with Whole Foods Market in 1997. The deal consisted of Whole Foods selling only “natural” ingredients in selected stores, including Jamba’s all natural smoothie ingredients.

2 years later, Jamba bought out another popular smoothie chain, Zuka Juice.Zuka Juice was a prominent smoothie company founded in Utah. & years after this, Jamba was purchased for $256 million by Services Acquisition Corp.International, headed by former Blockbuster CEO, Steve Berrard. After buying Jamba, the Services Acquisition changed its name to Jamba Inc.

Goals and ObjectivesJamba Juice is in need of something new. The company is well-known but

there is major competiton in the smoothie and juice industry. In order to stand out from the crowd and continue to be a leader in the field, they need a big idea.

They need to bring people into their stores, they need to have some interest. This campaign will help to solve these issues.

A main goal of Jamba Juice is to increase their sales by 10% within the 16-35 year old demographic. With a budget of $10 million, this campaign will combine traditional advertising techniques in media such as magazines and radio,as well as billboards, and direct mail pieces. Along with the traditional media, this campaign will include guerilla marketing and in-store events.

A second goal for the company is to get the consumer to choose them overtheir competitors, or brand awareness. They have numerous competitors in not just the smoothie and juice industry, but the entire specialty beverages umbrella. Coffee, teas and other specailty beverage locations are gaining ground on JambaJuice. This campaign will serve to boost Jamba Juice back to the number one spot under that umbrella.

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Campaign Goals and Objectives JambaJuiceisinneedof anewmultifacetedcampaigntoincreasetraffic,revenueandawarenessof theJambaJuicechain.Thecompanyiswell-knownfortheirhealthy,all-fruitsmoothiesandtheirfuninterestingflavorcombinations,howeverthecompetitionisfast-rising.Othersmoothiechains,suchasSmoothieKingandMauiWowiaswellasotherbeverage-orientedcompanieslikethegiantStarbucksCorporation,arequicklygainingmarketshareandtheconsumer’sattention.Inordertoregaintheirmarketshareandconsumerbase,JambaJuiceneedsacampaigntoincreasesinglestoretrafficaswellasoverallbrandawareness.Thiscampaignwillhelptosolvetheseissues. Amaingoalof JambaJuiceistoincreaseoverallsalesby10%withinthe16-35yearolddemographic.Withabudgetof $35,000,thiscampaignwillcombinetraditionaladvertisingtechniquesincludingmagazines,billboards,directmailpiecesandradio.Alongwiththetraditionalmedia,thiscampaignwillincludeguerillamarketingandin-storeevents. Asecondgoalof thecompanyistoraisebrandawareness.JambaJuicehasnumeroustopcompetitorsnotonlyinthesmoothieandjuiceindustry,buttheentirespecialtybeverageumbrella.Coffee,teasandotherspecialtybeveragelocationsaregainingonJambaJuice.ThiscampaignwillservetoboostJambaJuicebacktothenumberonespotinthespecialtybeverageindustry.

Jamba Juice Background JambaJuiceisaleadingchainof smoothierestaurants.Thecompanyhasover700locationsthroughout30states,theDistrictof ColumbiaandtheBahamas.500of thesestoresarecompanyownedwhiletheremainderarefranchised,whichtogetherboughtinover$317millionin2007. JambaJuicewasfoundedin1990byKirkPerron,aCalPolygradu-ate,alongwithJoeVargara,KevinPetersandLindaOzawaOlds.Thecom-panywasincorporatedinSanLuisobispounderthenameJuiceClubInc. SoonafteropeningtheirfirststoresinSanLuisObispo,PaloAltoandIrvine,JambabeganadealwithWholeFoodsMarketin1997.Thedealcon-sistedof WholeFoodssellingonly“natural”ingredientsinselectedstores,includingJamba’sallnaturalsmoothieingredients. 2yearslater,Jambaboughtoutanotherpopularsmoothiechain,ZukaJuice.ZukaJuicewasaprominentsmoothiecompanyfoundedinUtah.5yearsafter,Jambawaspurchasedfor$256millionbyServicesAquisitionCorp.International,headedbyformerBlockbusterCEO,SteveBerrard.AfterbuyingJamba,theServicesAquisitionchangedit’snametoJambaInc.

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Target Market

Age: 16-30 years oldGender: Male and FemaleLocation: West Coast Lifestyle: Young, hip, motivated, achieverYearly Income: $10,000-$60,000Occupation: AnyEducation: High School and upSocial Class: Middle, Upper MiddlePersonality: Creative, smart, organized

Due to the overlying theme of this campaign, the younger, creative, middle class consumer is the perfect demographic. This consumer has a somewhat disposable income, they are either single or just getting married. They are just beginning their lives and want to be on their own. They drink smoothies and coffee beverages on a daily basis. They have a creative yet organized mind and know what they want. They are out and about on a daily basis, buying and spending along the way. The younger demographic is huge on health. They want to be in shape, they want good, nutritious products. Although the fast food industry is a huge part of the younger lifestyle, having a tasty, cool, nutritious beverage is always on their mind. This young crowd is a Starbucks junky, they need their caffeine, they need that extra jolt of energy to get them through their long days of school, work and play. Jamba Juice can become a staple in the lives of this younger demographic by gaining the interest of this crowd. This age group is constantly changing their mind. Just like fashion, food and beverages are constantly changing. What’s hip and cool and popular now can be completely out of business in a year if this demographic moves on. Jamba Juice has to keep their attention, they need to get the interest of this growing population and hold on to it like never before.

JambaJuicewantstocontinuetoreachouttotheyoung,creativemiddleclassconsumer.Thisconsumerhasahighdisposableincomeandtheyaresingleornewlymarried.Theyarejustbeginningtheirlivesasyoungadults.Thisyoungerdemographicisinterestedinhealthandhealthrelatedproducts.Theylookforthehealthyalternativesasachoice. Althoughthefast-foodindustryplaysalargepartinthedailylifestyleof ayoungadult,health-consciouschoicesarealwaysontheirmind.ThisdemographicfrequentslocalcoffeeshopsaswellasgiantslikeStarbucks.Theyneedcaffieneonadailybasis,sometimesmorethanonceaday,togetthemthroughtheirlongdaysof school,workandplay. JambaJuicecanbecomeastapleinthelivesof thisyoungerdemographicbygainingtheinterestof theconsumer.Thisparticularagegroupisconstantlychangingtheirmind,whetheritbefashion,foodortheirfavoritebeverage.Thisdemographiciswhatcanmakeorbreakacompany.

Age:16-30Gender:MaleandFemaleLocation:WestCoastLifestyle:Young,hip,motivated,achieverIncome:HighDisposableEducation:HighSchoolPlusSocialStatus:Middle,UpperMiddlePersonality:Creative,smart,organized,healthseeker, highbodyconciousness

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Opportunities

Threats

Jamba Juice is a well-known company. They have been around a short time, but have grown rapidly to become a top competitor in their industry. With many options for their customers, and their menu and merchandise line continuously growing and changing, they have many selling points.

Although they are a top competitor, they do still have those other companies in their indsutry. Competitors like Smoothie King and Planet Smoothie are quickly rising and sometimes overcoming the sales and overall revenue of Jamba Juice. Along with the competitors comes the health factor. Jamba Juice has recently taken some heat for less-than ideal health contents in their smoothies.

Due to the growing amount of health conscious people, Jamba Juice has a huge opportunity to get in the heads of these consumers. They have to get out there and let the health conscious Americans know that they are number one, and that the consumer can feel good about drinking Jamba Juice over their competitors. Sponsorship is a great thing for them to consider, sponsoring sporting events, marathons etc.

One of the major threats for not only Jamba Juice, but for all companies is the worsening economy. Consumers just aren’t purchasing as much as they used to. Their income is no longer as disposable as it used to be. In order to overcome this, Jamba Juice needs to do something to get their interest, giveaways of some kind are a great option. Competitors not necessarily in the smoothie industry are also a huge threat. Starbucks, McDonalds and other fast food restaurants are gaining ground on the smoothie industry by adding smoothie and coffee beverages to their menus.

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Smoothie King

Maui Wowi

Smoothie King is a Louisiana-based franchise specializing in nutri-tional, fresh fruit blended smoothies. They currently hold the number 1 spot in the Smoothie Bar and Nutritional Lifestyle Center industry, as they have 17 times before. They have over 550 locations around the US, with numerous stores based in Seoul, Korea. Aside from fresh smoothies, Smoothie King offers healthy alternatives such as, sports beverages, energy bars, snacks, vitamins, herbs, minerals and other sport nutrition products. Smoothie King is Jamba Juice’s most note-worthy competitor. Not only have they held the number one spot for 17 years, but they have much the same items in their line of merchandise and smoothies and they too have locations overseas. Smoothie King demographic is very similar to that of Jamba Juice, the main difference is that Jamba Juice has been under fire for having less-than-ideal health contents in their smoothies. Smoothie King has taken notice and provides extensive health facts to their customers. In order to overcome this hurdle, Jamba will be starting a new line of low-sugar, low-calorie smoothies. This will help to redefine their image and grab both the extreme-health-nut market as well as the just-plain-smoothie- lover market.

Maui Wowi is a Hawaiian themed smoothie and coffee shop. Started in 1997 as a way for the creators to get a healthy alternative to all the fat-laden junk food of the world, Maui Wowi has grown to become a top leader in the industry. They currently have 400 locations nationwide, and still adding more. Maui Wowi is different from the others in the fact they have an overall theme. They are Hawaiian, they eat, sleep, play and of course drink Hawaiian. With all natural fresh fruit smoothie, and straight-from-Hawaii coffee, Maui Wowi has that look, that feel that consumers like. They get the international market, the market that likes to feel at home when they go into a store. They also have the organic market. Maui Wowi is the only of the leading smoothie chains that is all natural, all organic. Jamba Juice will need to add something to their company that creates an international feel. They need that island feel, the isalnd look. In order to compete with the straight-from-Hawaii Maui Wowi, Jamba Juice will open stores in the Bahamas as well as connecting with Travelocity to give a trip to the Bahamas.

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Smoothie and Juice Market Share Smoothie and Juice sales exceeded $664 million in the US alone. Three quarters of those sales are from major chain locations. The smoothie and juice industry not only has major competiton in their own field but also in other specialty beverage industries. Major smoothie chains like Jamba Juice, Smoothie King and Maui Wowi brought in an estimated $434 million in sales in 2000, while independent smoothie shops brought in just over $180 million. The coffee and fast food industry is quickly becoming a huge competitor for the smoothie companies. With companies like Starbucks beginning to introduce smoothie and juice beverages, Jamba Juice and others are adding them to their growing list of competitors. McDonalds, Burger King, Jack in the Box and other large fast food chains are also hopping on to the smoothie, juice and coffee bandwagon. They are adding Cafes to their restaurants, offering smoothies and coffees at much lower prices than those of the competitors. Starbucks alone brought in over $9.4 billion in 2007. While McDonalds, Burger King and Jack in the Box brought in a combined total of $30 billion in sales in 2007. Jamba Juice is constantly adding companies to their ever-growing list of major competiton in the specialty beverage industry. They need a big idea. they need that one thing to get their consumers back to them. This campaign will serve to help bring Jamba Juice’s needs and desires to reality.

Starbucks This international coffee chain is the leader in the coffee industry. With sales topping $9.4 billion in 2007, Starbucks in a giant competitor for numer-ous companies. Starbucks currently has 15,012 stores spanning 44 countries, and there is no end in sight. Although they are mostly known for their coffee, Starbucks is slowly broadening their menu into the smoothie and juice indus-try. They have just recently introduced Vivanno, a fruit smoothie blended beverage. Along with the new smoothie, they also sell teas, juices, sparkling water, sodas, milks, snacks and merchandise. Obviously it has been known that competing with this powerhouse company has ended poorly for locally owned speacilaty shops, but Jamba Juice has a chance. They too are a well-known, well-established company. The main difference between Jamba Juice and Satrbucks is the smoothies. Starbucks has 3 flavors, only one size, and nothing extra added. Jamba is a smoothie maverick, over 20 flavors, free boosts, all natural energy. If Jamba Juice continues to add to their wine array of smoothie options and possibly add some coffee blends to their menu, they will be a top competitor with Starbucks.

nalPaide

MThe main objective of this campaign is to raise awareness of Jamba Juice,

and increase traffic and revenue by 10% with the 16-30 year old demographic. A side objective is to let consumers know that Jamba Juice is a healthy alternative to other fast food establishments.

Objective

StrategyIn order to achieve the goals and objectives for Jamba Juice, this campaign

will focus on the consumer. By involving the consumer in the campaign, it will garner interest in the company. The consumer is everything to a company, and the consumer wants to feel as if they are needed, or wanted. They want to feel a partof the overall company. This campaign will help get the necessary attention and in turn increase revenue and brand awareness of Jamba Juice.

PlacementIn order to fully maximize the potential of this campaign, it will be placed

in numerous forms of media. Below is the full list of media placement for the Jamba Juice “Jambalocity” campaign:

Magazine: Radio:San Diego Reader Clear Channel San DiegoLA Magazine Clear Channel Los Angeles Vegas Today Cleat Channel Las Vegas

Billboard: Direct Mail:2-San Diego 50,000 in Sa Diego3-Los Angeles 80,000 in Los Angeles2-Las Vegas 60,000 in Las Vegas

In-Store:Posters in 300 stores

Because Jamba Juice is mainly on the West Coast, this campaign will stick with that demographic. The media and promotions will be strictly West Coast advertised. Research has found that California and Nevada are the main contributing states to Jamba Juice stores. These states will be the main focus of our promotions.

BecauseJambaJuiceismainlyontheWestCoast,thiscampaignwillonlybefeaturedintheareasof CaliforniaandNevada.ThesestateshaveshowntogeneratethemostsalesforJambaJuiceandhasthelargestdemo-graphicinthetargetedmarket.

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nalPaide

MThe main objective of this campaign is to raise awareness of Jamba Juice,

and increase traffic and revenue by 10% with the 16-30 year old demographic. A side objective is to let consumers know that Jamba Juice is a healthy alternative to other fast food establishments.

Objective

StrategyIn order to achieve the goals and objectives for Jamba Juice, this campaign

will focus on the consumer. By involving the consumer in the campaign, it will garner interest in the company. The consumer is everything to a company, and the consumer wants to feel as if they are needed, or wanted. They want to feel a partof the overall company. This campaign will help get the necessary attention and in turn increase revenue and brand awareness of Jamba Juice.

BudgetWith an allotted budget of $35,000 for the Jamba Juice “Jambalocity”

campaign, the following budget will be used to fully maximize the campaign:

Magazines:San Diego Reader: Full page, Full Color, 6x8...$3,000LA Magazine: Full Page, Full Color, 8x10.......$4,500Vegas Today: Full Page, Full Color, 8x10.........$3,500 Total Magazine Cost: $11,000

Radio:Clear Channel San Diego: 93.3, 94.1, 105.3, 25 :15 spots/day.......$1,900Clear Channel Los Angeles: 108.5, 97.2, 100.7, 25 :15 spots/day...$2,000Clear Channel Las Vegas: 87.4, 90.5, 105.5, 25 :15 spots/day........$1,950 Total Radio Cost: $5,850

Billboards:2-San Diego: 1 month each......$1,4003-Los Angeles: 1 month each...$3,1502-Las Vegas: 1 month each......$2,000 Total Billboard Cost: $ 6,550

Direct Mail:50,000 San Diego:........$1,07580,000 Los Angeles:.....$2,50060,000 Las Vegas:.........$1,950Total Direct Mail Cost: $5.525

In-Store:Posters: 300 stores, 11x17, Full Color...$1,975 Total In-Store Cost: $1,975

Total Advertising Cost: $30,900 Total Budget Allotted: $35,000 Total Leftover: $4,100 (to be spent on last-minute expenses)

nalPaide

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The main objective of this campaign is to raise awareness of Jamba Juice,and increase traffic and revenue by 10% with the 16-30 year old demographic. A side objective is to let consumers know that Jamba Juice is a healthy alternative to other fast food establishments.

Objective

StrategyIn order to achieve the goals and objectives for Jamba Juice, this campaign

will focus on the consumer. By involving the consumer in the campaign, it will garner interest in the company. The consumer is everything to a company, and the consumer wants to feel as if they are needed, or wanted. They want to feel a partof the overall company. This campaign will help get the necessary attention and in turn increase revenue and brand awareness of Jamba Juice.

Summary

Overall, the Jamba Juice campaign for “Jambalocity” will be featured in 3 major cities on the West Coast, San Diego, Los Angeles and Las Vegas. Research shows that these locations are the largest consumers of Jamba Juiice beverages. With an allotted budget of $35,000, this campaign will be featured in a variety of media. Magazines, Radio, Billboards, Direct Mail and In-Store promotions. By placing this campaign in the above medias, the message will be delivered to a large amount of consumers in an efficient way. The magazines and Radio tations are the some of the most read and listened to medias in the cities listed. The objective is to raise awareness of jamba Juice and increase revenue by 10% within the 16-30 year old demographic. This consumer is the target of this campaign. Of the budget of $35,000, only $30,900 was used for marketing and advertising, the remainder of $4,100 will be used for any extra advertising or last minute costs.

Overall,theJambaJuicecampaignfor“Jambalocity”willbefeaturedin3majorcitiesontheWestCoast,SanDiego,LosAngelesandLasVegas.Researchshowsthattheselocationsarethelargestconsumersof JambaJuicebeverages.Withanallottedbudgetof $35,000,thiscampaignwillbefeaturedinavarietyof mediaincludingmagazines,radio,billboards,directmailandin-storepromotions. Byplacingthiscampaignintheabovemedias,themessagewillbedeliveredtoalargeamountof consumersinanefficientway.Themagazinesandradiostationsaresomeof themostreadandlistenedtomediasinthecitieslisted. Theobjectiveistoraiseawarenessof JambaJuiceandincreaserevenueby10%withinthe16-30yearolddemographic.Thisconsumeristhetargetof thiscampaign.Of thebudgetof $35,000,only$30,900wasusedformarketingandadvertisng,therermainderof $4,100willbeusedforanyextraadvertisingorlastminutecosts.

Crea

tive

Due to the major competitors in the smoothie industry, Jamba Juice must go beyond to create a want and need, and an interest in their store.

The objective of this campaign is to create interest in the company. By Jamba Juice partnering with leading travel agent Travelocity and offering a trip to the Bahamas, where they also have a chain of stores, this will bring consumer interest of all varieties to the chain.

Jamba Juice will partner with Travelocity to create the “Jambalocity Challenge”. This challenge consists of the consumer creating a new smoothie flavor for the chance to win a 4-person all-expense paid trip to the Bahamas. The winner of this challenge will be selected by Jamba Juice executives, and the winning creation will be a new menu item in all Jamba Juice locations. The winner recieves a trip to the Bahamas where they will see their creation featured on the menu in the Jamba Juice Bahamas store location.

The campaign for this challenge will include magazine advertise-ments, :15 radio spots, a direct mail piece, billboards as well as in-store posters and handouts. The design will include eye-catching color, the head-line “Take the Jambalocity Challenge” and the logos of both Jamba Juice and Travelocity.

Res

ourc

eswww.JambaJuice.comwww.wikipedia.comapps.shareholder.comwww.coriolisresearch.comwww.juiceitup.comwww.smoothieking.com