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Jamba Juice Essay

186 Words1 Pages
Jamba Juice had a lot of competitors that could become a major threat to the company. The main concern of the company is trying to keep up with the competition all while remaining loyal to their products, which their customers love. Jamba Juice led the smoothie industry for a certain time period until the competition started to have similar product offerings. Very popular brands such as McDonald’s Panera Bread, and Starbucks all started selling smoothies, and McDonald’s, leading the way, launched its line of smoothies and officially became a part of the frozen drink group. McDonald’s brought its marketing machine into the frozen drink category, launching its line of smoothies in the summer of 2010 with a value pitch. McDonald’s introduced
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In order to stay competitive they needed to find a way increase their profit. Jamba Juice only offered cold drinks, so in areas with cold seasons, such as New York, they lose money during the winter months. McDonald’s offered smoothies for about one dollar less than Jamba Juice and Starbucks was well known for their adult coffee beverages, which gave them an easy way to enter into a market for children who already came to the store with their parents. With their higher profit margins, large fast food companies could use smoothies as a loss leader and cause Jamba Juice to lose their footing. As McDonald’s began to market their smoothies, it became clear that they were seeing Jamba Juice as a rising

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Second, Jamba Juice could open smaller footprint stores in convenient locations that can make the smoothies faster and still continue the current brand positioning. Third, they could increase their citizenship efforts and fund non-profit organizations that focus on educating the public on the benefits of a healthy & organic lifestyle. Fourth, Jamba Juice could seek to broaden their current product offerings, such as smoothies that utilize new raw ingredients. Fifth, they could seek out new suppliers (such as CPG companies) in an effort to cut materials costs, and also provide more unique products. Sixth, Jamba Juice could partner with a gym, or other type of fitness center in an effort to reach a more nutritionally-minded, athletic market segment.

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