Design Brief

Josh Sarver

Executive Summary
Who is Jamba Juice? Goals and Objectives

1 2 3 4 6

Table of Contents

Market Analysis
Target Market

Situation Analysis
SWOT Analysis

Competitve Analysis
Major Competitors Smoothie and Juice Market Share

Media Plan
Objective Strategy Placement Budget Summary

Creative Resources

9 11

Executive Summary

Jamba Juice is in need of a new multifaceted campaign to increase Jamba Juice is a leading chain of smoothie restaurants. The company has traffic, revenue and awareness of the Jamba Juice chain. The company is over 700 locations throughout 30 states, the District of Columbia and the Bahawell-known for their healthy, all-fruit smoothies and their fun interesting mas. 500 of these stores are company owned while the remainder are franchised, flavor combinations, however the competition is fast-rising. Other smoothie which together brought in over $317 million in 2007. chains, such as Smoothie King and Maui Wowi as well as other beverageJamba Juice was founded in 1990 by Kirk Perron, a Cal Poly graduate, oriented companies like the giant Starbucks Corporation, are quickly along with Joe Vergara, Kevin Peters and Linda Ozawa Olds. The company was gaining market share and the consumers attention. In order to regain their incorporated in San Luis Obispo, California in under the name Juice Club Inc. market share and consumer base, Jamba Juice needs a campaign to increase Soon after opening their first stores in San Luis Obispo, Palo Alto and single store traffic as well as overall brand awareness. This campaign will Irvine, Jamba began a deal with Whole Foods Market in 1997. The deal consisted help to solve these issues. of Whole Foods selling only natural ingredients in selected stores, including A main goal of Jamba Juice is to increase overall sales by 10% within Jambas all natural smoothie ingredients. the 16-35 year old demographic.With a budget of $35,000, this campaign will 2 years later, Jamba bought out another popular smoothie chain, Zuka Juice. combine traditional advertising techniques including magazines, billboards, Zuka Juice was a prominent smoothie company founded in Utah. & years after direct mail pieces and radio. Along with the traditional media, this campaign this, Jamba was purchased for $256 million by Services Acquisition Corp. will include guerilla marketing and in-store events. International, headed by former Blockbuster CEO, Steve Berrard. After buying A second goal of the company is to raise brand awareness. Jamba Jamba, the Services Acquisition changed its name to Jamba Inc. Juice has numerous top competitors not only in the smoothie and juice industry, but the entire specialty beverage umbrella. Coffee, teas and other Goals and Objectives specialty beverage locations are gaining on Jamba Juice. This campaign will serve to boost Jamba Juice back to the number one spot in the specialty but Jamba Juice is in need of something new. The company is well-known beverage industry. 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, Jamba Juice Background they need to have some interest. This campaign will help to solve these issues. Jamba Juice is a leading chain of smoothie restaurants. The company A main goal of Jamba Juice is to increase their sales by 10% within the has over 700 locations throughout 30 states, the District of Columbia and the 16-35 year old demographic. With a budget of $10 million, this campaign will Bahamas. 500 of these stores are company owned while the remainder are combine traditional advertising techniques in media such as magazines and radio, franchised, which together bought in over $317 million in 2007. as well as billboards, and direct mail pieces. Along with the traditional media, this Jamba Juice was founded in 1990 by Kirk Perron, a Cal Poly graducampaign will include guerilla marketing and in-store events. ate, along with Joe Vargara, Kevin Peters and Linda Ozawa Olds. The comA second goal for the company is to get the consumer to choose them pany was incorporated in San Luis obispo under the name Juice Club Inc. over their competitors, or brand awareness. They have numerous competitors in not just Soon after opening their first stores in San Luis Obispo, Palo Alto and theIrvine, Jamba began a deal with Whole Foods Market in 1997. The deal consmoothie and juice industry, but the entire specialty beverages umbrella. Coffee, teas Whole Foods selling only natural ingredients in selected stores, sisted of and other specailty beverage locations are gaining ground on Jamba Juice. This campaign will serve to boost Jamba Juice back to the number one spot including Jambas all natural smoothie ingredients. under that2 years later, Jamba bought out another popular smoothie chain, Zuka umbrella. . Juice. Zuka Juice was a prominent smoothie company founded in Utah. 5 years after, Jamba was purchased for $256 million by Services Aquisition Corp. International, headed by former Blockbuster CEO, Steve Berrard. After buying Jamba, the Services Aquisition changed its name to Jamba Inc.

Jamba Juice Campaign Goals and Objectives

Target Market
Jamba Juice wants to continue to reach out to the young, Age: 16-30 years old creative middle class consumer. This consumer has a high disposable Gender: Male and Female income and they are single or newly married. They are just beginning Location: West Coast their lives as young adults. This younger demographic is interested in Lifestyle: Young, hip, motivated, achiever health and health related products. They look for the healthy a Yearly Income: $10,000-$60,000 lternatives as a choice. Occupation: Any Education: High School and up Although the fast-food industry plays a large part in the daily lifestyle of a young adult, health-conscious choices are always on Social Class: Middle, Upper Middle their mind. This demographic frequents local coffee shops as well as Personality: Creative, smart, organized giants like Starbucks. They need caffiene on a daily basis, sometimes more than once a day, to get them through their long days of school, Due to the work and play. overlying theme of this campaign, the younger, creative, middle class consumer is the perfect demographic. This Jamba Juice can become a staple in the lives of this younger consumer has a somewhat disposable income, they are either single or demographic by gaining the interest of the consumer. This particular just getting married. They are just beginning their lives and want to be age group is constantly changing their mind, whether it be fashion, on their own. They drink smoothies and coffee beverages on a daily food or their favorite beverage. This demographic is what can make basis. They have a creative yet organized mind and know what they or break a company. want. They are out and about on a daily basis, buying and spending along the way. The Age:16-30 younger demographic is huge on health. They want to be in shape, they want good, nutritious products. Although the fast food Gender: Male and Female industry is a huge part of the younger lifestyle, having a tasty, cool, Location: West Coast nutritious beverage is always on their mind. This young crowd is a Lifestyle: Young, hip, motivated, achiever Starbucks junky, they need their caffeine, they need that extra jolt of Income: High Disposable energy to get them through their long days of school, work and play. Education: High School Plus Jamba Juice can become a staple Social Status: Middle, Upper Middle in the lives of this younger demographic by gaining the interest of this crowd. This age group is Personality: Creative, smart, organized, health seeker, constantly changing their mind. Just like fashion, food and beverages high body conciousness are constantly changing. Whats 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.

Market Analysis

Strengths
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.

Situation Analysis

Weaknesses
Although they are a top competitor, they do still have those other companies in their indsutry. Competitors like Smoothie King industry 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.

Opportunities
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.

Threats
One of the major threats for not only Jamba Juice, but for all companies is the worsening economy. Consumers just arent 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.

Major Competitors

Competitive Analysis

Smoothie King
Smoothie King is a Louisiana-based franchise specializing in nutritional, 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 Juices 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-thanideal 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-smoothielover market.

Maui Wowi
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.

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 numerous 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 industry. 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.

Competitive Analysis

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 Juices needs and desires to reality.

Objective

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.

Strategy
In 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 part of the overall company. This campaign will help get the necessary attention and in turn increase revenue and brand awareness of Jamba Juice. Because Jamba Juice is mainly on the West Coast, this campaign Because Jamba Juice is mainly on the West Coast, this campaign will will stick with that demographic. The media and promotions will be only be featured in the areas of California and Nevada. These states have strictly West Coast advertised. Research has found that California shown to generate the most sales for Jamba Juice and has the largest demo- and Nevada are the main contributing states to Jamba Juice stores. These graphic in the targeted market. states will be the main focus of our promotions.

Media Plan

Placement
In 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: San Diego Reader LA Magazine Vegas Today Billboard: 2-San Diego 3-Los Angeles 2-Las Vegas In-Store: Posters in 300 stores Radio: Clear Channel San Diego Clear Channel Los Angeles r Cleat Channel Las Vegas Direct Mail: 50,000 in Sa Diego 80,000 in Los Angeles 60,000 in Las Vegas

Budget Objective

Media Plan

The main objective budget of $35,000is tothe Jamba Juice Jambalocity With an allotted of this campaign for raise awareness of Jamba Juice, and increase traffic and revenue bywill be used to16-30 maximize the campaign: campaign, the following budget 10% with the fully year old demographic. A side objective is to let consumers know that Jamba Juice is a healthy alternative to other fast food establishments. Magazines: San Diego Reader: Full page, Full Color, 6x8...$3,000 Strategy Full Page, Full Color, 8x10.......$4,500 LA Magazine: Vegas Today: Full Page, Full Color, 8x10.........$3,500 In order to achieve the goals and objectives$11,000 Juice, this campaign Total Magazine Cost: for Jamba 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 Radio: consumer wants to feel as if they are needed, or25 :15 spots/day.......$1,900a part Clear Channel San Diego: 93.3, 94.1, 105.3, wanted. They want to feel of Clear Channel Los Angeles: 108.5, 97.2, 100.7, 25 :15 spots/day...$2,000 and in the overall company. This campaign will help get the necessary attention turn increase revenue and brand awareness of Jamba Juice. Clear 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......$1,400 3-Los Angeles: 1 month each...$3,150 2-Las Vegas: 1 month each......$2,000 Total Billboard Cost: $ 6,550 Direct Mail: 50,000 San Diego:........$1,075 80,000 Los Angeles:.....$2,500 60,000 Las Vegas:.........$1,950 Total 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)

Objective Summary

Media Plan

The main objective of this campaign is to raise awareness of Jamba Juice, increase traffic and revenue by 10% with the 16-30 year old demographic. A Overall, the Jamba Juice campaign for Jambalocity will be featured in 3 and major cities on the West Coast, San Diego, Los Angeles and Las Vegas. Research Overall, let consumers know that Jamba Juice is a healthy alternative to side objective is tothe Jamba Juice campaign for Jambalocity will be featured in 3 major shows that these locations are the largest consumers of Las Vegas. Research shows that cities on the establishments. other fast food West Coast, San Diego, Los Angeles and Jamba Juice beverages. With an allotted budget of $35,000, this campaign will be featured in a variety ofan allotted these locations are the largest consumers of Jamba Juiice beverages. With media including magazines, radio, billboards, direct mail and in-store promotions. budget of $35,000, this campaign will be featured in a variety of media. Magazines, Strategy Radio,By placing this campaign in the above medias, the message will be delivered to Billboards, Direct Mail and In-Store promotions. a large amount of consumers in an efficient way. The magazines and radio stations are a By placing this campaign in the above medias, the message will be delivered to In order to achieve the goals and objectives for Jamba Juice, this campaign some of the most read and listened to medias in the cities listed. large amount consumer. By involving the consumer in the campaign, it will will focus on theof consumers in an efficient way. The magazines and Radio tations are the some of the The objective is to raise awareness of Jamba Juice and increase revenue by 10% garner interest most read and listened to medias in the cities to a company, and the in the company. The consumer is everything listed. within the 16-30 year old demographic. This consumer is the target of this campaign. The objective is to raise are needed, or wanted. They want to feel a part by 10% consumer wants to feel as if they awareness of jamba Juice and increase revenue Of the budget of $35,000, only $30,900 was used for marketing and advertisng, the of within the 16-30 year old demographic. This consumer is the target of thisand in the overall company. This campaign will help get the necessary attention campaign. rermainder of $4,100 will be used for any extra advertising or last minute costs. the Ofincrease revenue and brand awareness of Jamba Juice. turn the budget of $35,000, only $30,900 was used for marketing and advertising, remainder of $4,100 will be used for any extra advertising or last minute costs.

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 advertisements, :15 radio spots, a direct mail piece, billboards as well as in-store posters and handouts. The design will include eye-catching color, the headline Take the Jambalocity Challenge and the logos of both Jamba Juice and Travelocity.

Creative

Resources

www.JambaJuice.com www.wikipedia.com apps.shareholder.com www.coriolisresearch.com www.juiceitup.com www.smoothieking.com