jamba juice thailand4
TRANSCRIPT
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........................................................................................................................
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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
3 Miss Jirattikarn Chaipattana Student ID: 20092330
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
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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
5 Miss Jirattikarn Chaipattana Student ID: 20092330
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-
6 Miss Jirattikarn Chaipattana Student ID: 20092330
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.
7 Miss Jirattikarn Chaipattana Student ID: 20092330
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:
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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
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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.)
10 Miss Jirattikarn Chaipattana Student ID: 20092330
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 1st operate in Thailand: 2008
o No. of store in Thailand: 5
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.
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YogenFruz
o Origin: Founded in 1995 in Canada
o No. of store in Thailand: 20
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 1st operate in Thailand: 1999
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 1st operate in Thailand: 2008
o No. of store in Thailand: 5
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
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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
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• 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
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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
15 Miss Jirattikarn Chaipattana Student ID: 20092330
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
http://www.ats.agr.gc.ca/ase/5666-eng.htm
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
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.
16 Miss Jirattikarn Chaipattana Student ID: 20092330
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
http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/
Deloitte%20Research/dtt_dr_apeconoutlook_june2011.pdf
17 Miss Jirattikarn Chaipattana Student ID: 20092330