2011

LAUNCHING JAMBA JUICE IN THAILAND

BSBMKG516B Profile International Market Prepared by Miss Jirattikarn Chaipattana 8/6/2011

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........................................................................................................................

Miss Jirattikarn Chaipattana

Student ID: 20092330

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 "naturalsmoothies. 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 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
3 Miss Jirattikarn Chaipattana Student ID: 20092330

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 Thailands 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 "naturalsmoothies. 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 brown sugar crumble, fresh banana, blackberry-blueberry, apple cinnamon and berry cherry pecan. Mission Statement Jamba juices 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.
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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 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 Chinas factories. Country 2: Indonesia
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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, allnatural 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.

Miss Jirattikarn Chaipattana

Student ID: 20092330

In brief, we think Thailands 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.Thailands fruit juice market is estimated to grow up to $1.8 million for fruit juice retail business. 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

Miss Jirattikarn Chaipattana

Student ID: 20092330

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:

Thailands 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.

Miss Jirattikarn Chaipattana

Student ID: 20092330

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 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

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 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.)
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
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 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, Dcor 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. 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
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 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 , Dcor: 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 Decoration & Interior Design 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

Key message:

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Miss Jirattikarn Chaipattana

Student ID: 20092330

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 Strong Brand Name Locations Healthy Products
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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 Highest Quality Juice & Smoothie

Place strategy: to expand channel distribution

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Miss Jirattikarn Chaipattana

Student ID: 20092330

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

Miss Jirattikarn Chaipattana Student ID: 20092330

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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/JambaJuice/?cbsid=0f3425d3a0c54e27a67097a2a3a69ade-248465876-RG4&&cbRecursionCnt=1

http://www.ats.agr.gc.ca/ase/5666-eng.htm http://www.nzte.govt.nz/explore-export-markets/market-research-byindustry/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.justdrink.com/article.aspx?id=96457. US Smoothies Market. Report Buyer. Retrieved February 20, 2009 from: http://www.reportbuyer.com/food_drink/dairy/us_smoothies_market.html.

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Miss Jirattikarn Chaipattana

Student ID: 20092330

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_strate gies_in_thailand

Reports Consumer Lifestyles in Thailand http://www.deloitte.com/assets/Dcom-Global/Local %20Assets/Documents/Deloitte %20Research/dtt_dr_apeconoutlook_june2011.pdf

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Miss Jirattikarn Chaipattana

Student ID: 20092330