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Jamba Juice case study: expanding a foodservice concept into retail

Published by: Datamonitor

Published: Jul. 9, 2008 - 10 Pages


Table of Contents


DATAMONITOR VIEW
CATALYST
SUMMARY
ANALYSIS
The US smoothie market continues to enjoy buoyant growth, prompting many retailers to explore market opportunities
Jamba Juice is one of the leading US smoothie providers, but has been losing sales to fast food rivals
The company share price fell after it cut its store growth target for 2008
Jamba Juice is focusing on the breakfast occasion, having identified it as an important growth area
Jamba sees a targeted focus on breakfast as a route to differentiation from a growing number of rivals
In particular, Jamba is actively targeting the tendency to deskfast with on-the-go offerings
The company gave out free Jamba smoothies for a day to promote the breakfast launch, as part of its marketing initiative, the 21-Day Breakfast Challenge
Jamba is also focusing on freshness and has devised various tactics aimed to enhance its freshness cues
The company's prototype store makes use of green packaging materials to aid natural and freshness cues
The company has developed a smoothie portal with Dole Foods to highlight freshness, in which Jamba stickers are placed on millions of Dole's fruit on supermarket shelves
To drive growth, Jamba Juice is expanding beyond its stores, with a ready-to-drink collaboration with Nestlé, and licensing deals with Whole Foods and Target
The Nestlé deal will enhance Jamba's visibility in the potentially lucrative supermarket sector
The company's licensing deals with supermarket chains highlights how retailers are concentrating more heavily on 'better for you' products
APPENDIX
Case study series
Methodology
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of Figures
Figure 1: A Jamba Juice outlet
Figure 2: Jamba Juice is targeting the breakfast market with new products
Figure 3: The 21-Day Challenge offered participants the option of changing their breakfast habits to be more healthy
Figure 4: Jambafruit.com is designed to promote a link between Jamba Juice and fresh ingredients
Figure 5: Jamba Juice has expanded into retail with a line of drinks made in partnership with Nestlé

Abstract

Introduction

This report on Jamba Juice forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the company is facing up to the challenges in the market, with fast food companies aiming to take market share away from it.

Reasons to Purchase
  • Gain insight into the methods used by important industry players to give them a competitive edge
  • Identify specific areas for operational improvements
  • Capitalize on the knowledge of experienced companies when entering a new niche or market


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