Jamba Juice

Alex Long
I. Overview
Jamba Juice is a U.S. chain of smoothie restaurants operating in 30 states with over 700
locations. It is headquartered in Emeryville California. Over 500 locations are company owned,
with the others being franchised. We employ over 9,000 employees, and also have locations in
the Bahamas and District of Columbia. Jamba Juice has partnerships with Whole Foods
Markets, in which they agree to sell only "whole foods" inside those locations, but are known for
providing fresh and quality ingredients everywhere. in 1999 Jamba Juice bought out a widely
known competitor Zuka Juice, and expanded to the best known smoothie company in America.

Jamba continues to create new and exciting smoothies, wraps, flatbreads and salads. All
Jamba products meet our strict quality and nutrition guidelines. That means 0g trans-fat, no
artificial flavors and no artificial preservatives. It also means that Jamba products taste great.
Jamba Juice uses real fruit and processed fruit juices from concentrate. All smoothies, except
for our "All Fruit Smoothies," contain another ingredient, as per the recipe: sherbet, frozen
yogurt, sorbet, plain yogurt, low-calorie dairy base, chocolate base, or soy milk.

The chosen country to market Jamba Juice is Norway. First a single store will be
established in populated area of Oslo, and branching will occur once it is established. The
chosen product to market is the basic smoothies that Jamba Juice makes, in a franchised free
standing location. This includes the regular menu of smoothies in 10 different flavors with
optional supplementation of 11 boosts (such as calcium, energy, protein, etc...). Jamba Juice
started with these 10 basic smoothies, and later expanded into making food and baked goods,
which will be introduced in the next stages of the product life cycle.

II. The Environment on International Marketing

GDP (per capita) $59,400 - 5th (country rank)

Demographics

Population: 4,660,539 - 116th

Density: 77% in Urban Areas

Birth rate: 10.99%

Distribution of Pop. by age: 0-14: 18.5%

5-62: 66.2%

65+: 15.2%
 Population ratio: .098 male/1 female

Education: age +15 %100 literacy

Pupils to finish primary school: %100

Consumption

Electricity: 128.8 kWh - 26th

Oil: 220,200 bbl/day - 53rd

Natural Gas: 3.97 bill cum - 66th

Transport infrastructures

Airports: 98 - 63rd

Rail: 4,114 Km - 40th

Road: 92,946 km - 51st

Water: 1,577 km - 53rd

Ports: 8 with 688 merchant marines

Macroeconomics

Inflation: 2.3% - 74th

Exchange: $369 billion

Employment: 3.2% unemployed - 29th

Budget: $206.9 billion

Cultural environment:

Over 99% of the population of Norway speak the official language, Norwegian. Many
families consist mainly of the nuclear family. Many couples live together without legalizing the
arrangement with marriage. Women are highly respected in business and generally receive
equal pay and have access to senior positions. Women may take up to one year's maternity
leave at 80% pay or 10 months at 100% pay. The poet Aksel Sandemose put Jante Law into
words and they convey an important element of Norwegian culture: humility. Norwegians try to
see all people as being on equal footing. They do not flaunt their wealth or financial
achievements and look askance at those who do. Norwegians view themselves as egalitarian
people whose culture is based on democratic principles of respect and interdependence. They
have simple tastes and are not prone to ostentation or excessive showiness. More than 85% of
the population belong to the Church of Norway. There are currently no similar shops to the
Jamba Juice Store that exist in Norway, therefore the product life cycle will be implemented in
the "introduction" stage.

Political environment:

Norway is a constitutional monarchy with a parliamentary system based on democratic

governance and proportional representation. It is a member of the European Economic Area
(EEA), and power is also distributed geographically at state, county and municipal levels.
Norway maintains embassies in 86 countries. 60 countries maintain an embassy in Norway, all
of them in the capital, Oslo. Norway is a founding member of the United Nations, NATO and the
Council of Europe. The Norwegian Armed Forces currently numbers about 23,000 personnel,
including civilian employees.

International Competition:

There is no directly similar competition that Jamba Juice has in Norway. However,
similar alternatives include milkshakes, snacks/drinks at cafe´s, and other similar food/drink
products. The average price of a regular milkshake or similar beverage is close to $6-$8. This
medium will be the base for the Jamba Juice smoothie product. The idea is to meet the price of
competing products. Products range from regular coffees, speciality coffees, milkshakes, and
other specialty drinks. It is difficult to compare these products, although similar, to that of a
smoothie, because it is more than a drink, it can be categorized in a drink/snack/dessert/ or
meal. Meal replacement drinks tend to be a little cheaper, but again, this is not the only purpose
of the Jamba Juice smoothie. Not adequate information can be found about milkshakes and
meal replacements, but coffee drinks are a huge part of drink consumption in the Norwegian
cities. The market seems to be shared mainly by personally owned cafe´s and restaurants, not
chain stores. This can be an advantage to Jamba Juice, because it is a specialty product, and
once it is established, people will recognize the store and advertisements, and have a reference
for learned consumption.

III. Positioning

Macro-Segmentation

Economic - The gross domestic product per capita for Norway is one of the highest in the world.
The market is not incredibly big, but it is very good, and has been consistent for years and
years. Although the GDP has not grown in recent years, it is stable. They have great
purchasing power.

Cultural - The acceptance of the Jamba Juice product is obviously unknown to the culture in
Norway. But, we are confident that the acceptance will be great, due to their consumption of
fruit already established. As a culture the consume large amounts of fruit, and are known to be
a healthy people. The name of the product will remain the same, ‘Jamba’ is a fictional name,
and ‘Juice’ is commonly known in the country.

Political - The neutrality of this product will allow for an easy placement in Norway. They have
good international relations with the USA. Also, the political arrangement of Norway allows for
such trades to be prominent.

Micro-segmentation

Criteria related to the consumer feature - Much of this has been explained in the culture of the
Norwegian people. But to answer the question: How is the consumer? They are a healthy,
driven, focused people. This is who Jamba Juice targets, people who like to be healthy, people
who are busy, and the average class of people. In their busy lifestyles, Jamba Juice allows for a
healthy snack or drink that can be taken on the go, that still allows for a highly nutritious
beverage to support this common type of consumer in Norway.

Positioning strategy

Positioning strategy will be most suitable for Jamba Juice, for three reasons. One, this
strategy will highlight the distinctive features of the product. Meaning, there does not exist a
company in Norway like this, and all the aspects of the company are pleasing to this culture.
Therefore, by positioning, these aspects of healthiness, deliciousness, and energy will be
highlighted. Two, positioning strategy will associate the product with identifiable market values.
Values of healthy living and natural produce consumption will be intriguing to the market. Third,
the organization of the marketing mix will be easy to conduct, explained later.

Due to the fact that Norwegians already consume a considerable amount of fruit already,
and little to no manipulation of the natural fruit will take place in this product, it will be best to
standardize this smoothie product for the people of Norway. The taste of natural fruit is already
accustomed to the market, and although this different blend of tastes is present, it will not need
to be adapted.

Since there is no existence of this type of product in Norway, initially it will be the market
leader on that fact alone. But, compared to similar products such as milkshakes, cafe snacks,
and other products, it will be a follower. Jamba Juice will not have enough market power initially
to under cut these similar product companies. After the promotion stage, explained later, Jamba
Juice will have similar prices to competing products, but the selling point is that the smoothie
product is a healthier, better tasting alternative to meet the needs of the Norwegian lifestyle.

IV. Products/Services

Factors that affect "product adoption":

Advantages over existing alternatives - Jamba Juice offers something for everyone. They
search the world for the best and freshest fruit possibly, and create healthy, natural,
energy filled drinks. A Jamba Juice Smoothie can be consumed throughout the day for a
 replacement meal, a post/pre-work out drink, but most commonly as a healthy snack.
Alternatives include unhealthy food/drink items at bars or cafes or expensive artificial
processed items.

Compatibility - Jamba Juice is highly compatible with Norwegian eating customs and habits.
They are a country that loves fresh breads, meats, and produce. They tend to eat a
variety of international foods. They tend to like more plain meals without a lot of spices
and such. In addition, they are taught at a young age to never skip breakfast, implanting
the idea that a large breakfast is needed for energy throughout the day. All these things
are beneficial aspects to what Jamba Juice offers, healthy, natural, energy filled
products.

Divisibility - The Jamba Juice store and products will fit right into the Norwegian society. It is
nothing drastically new, overpriced, or large. They will be intrigued to see a convenient
and affordable way to continue living a healthy lifestyle. Most Norwegian people have
probably consumed a similar product outside of the country, or even inside their own
homes, but will find it enjoyable to have a shop locally to go to and visit.

Observation - Jamba Juice is not a high risk store. It is not drastic in any extent. It will be
accepted easily in the eyes of the public because it promotes the lifestyle that they are
encouraged to live. Additional Norwegian customs include that it is harder to find fresh
fruit and vegetables in every grocery store, with the availability of Jamba Juice, it will be
widely accepted. Also, they Norwegian people have a very large fast food market,
which fits perfectly for the quick pay-and-go availability of Jamba Juice.

Complexity - This product can not be any simpler. What Jamba Juice offers is simple
ingredients blended together into something that anyone can enjoy. What is great about
the simpleness of this product is that it can be modified by the consumer. For example,
they offer combinations of every type of fruit and flavors that one can think of. Although
it is extremely simple, it has a far reaching variety.

Price - Norway is a very expensive country, particularly the capital: Oslo. It is said to be one of
the most expensive cities in the world. It was ranked 8 out of 276 as most expensive in
areas of restaurants, take away meals, and hotels. The costs of the Jamba Juice Store
are relatively low, and easy to produce. The main issue will be importing the fruit. This
will not be too big of a problem with the large number of merchant marines located
throughout the countries coastal line.

Standardization when at all possible will be the best option. Jamba Juice does not need
to be adapted much at all because of the simplicity of the product. The product itself, the
smoothies, should taste the same, and contain the same ingredients. The name "Jamba Juice"
does not need to be changed unless "Jamba" has some negative meaning in Norwegian. There
already exists stores with the word "Juice" contained in the title, such as "Cafe & Juice."
Packaging will need to be adapted. The standard plastic straws and lids are fine. What needs
to be changed are the styrofoam cups that Jamba Juice has taken some heat about from some
Americans. They are concerned with the use of styrofoam because it is non-biodegradable.
Norway has even stricter issues and restrictions about non-biodegradable products, so this will
need to be modified to more standard hard paper cups. This will be costly, because a new
distributor for these special cups will need to be added to our manufacturing of the normal
styrofoam ones. Modifications to power the equipment will need to be adjusted to fix electric
norms in Norway. Also, the operating systems on the registers will need to be translated into
Norwegian. Also governmental codes relating to ingredients will have to be passed, but that
shouldn't be a problem regarding natural fruits, minerals, and vitamins. Measurements will need
to be converted to the metric system, and translated into Norwegian as well. Packaging may
need to be modified to cooperate with the colder climate of the northern country. Norway is
more temperate for being so far North, but as far as shipping fruit, packaging will need to be
addressed.

Branding: Obviously the brand will be Jamba Juice. It will be a private brand, importing the
ingredients from different locations, but blending the fruit together without mentioning the
manufacturers brand. Importation of ingredients might change, but the Jamba Juice will always
seek to identify the freshest and best ingredients no matter where they are manufactured. The
single branding will be used because as far as right now, this is the only product being
produced, and the name needs to be established. Also, it will maintain its' global brand, with no
changes taking place to branding across boarders. This will promote attention and attraction to
many travelers. In addition, the Jamba Juice Stores will be new and unique to the culture,
which will give them a sense of relation to their cities and towns.

V. Promotion Strategies

Promotion:

Personal Selling - This will be limited to simple explanations of the Jamba Juice Smoothie
Product. Most people coming into the store for the first time will want to know a little bit
about the company, the product, and how it is made. This two way communication will
be very simple and brief, but will not a selling point. People going into the store will
already know general idea of what is inside, but may want to hear a brief description or
have simple questions. A simple guide for employees will be provided to answer FAQ's
and basic knowledge background.

Publicity - Much is needed and required. With virtually a new product such as Jamba Juice,
the more the better. Just getting the name out there will make or break the success of
the company in Norway. It will not be enough to simply open up a store with a flashy
name and title, most publicity will be accumulated through promotion and advertising.

Sales Promotion - Norwegians are said to read more 3x as many newspapers than in New
York City. This will be an optimal location to place sales promotions. Simple "buy one,
get one free" promotions will be placed for the first several months after opening day.
 This will not only get people to come, but more than one person to come. Also this
promotion will be in the display windows in front of the store the first few weeks to attract
all passerby's to simply get them inside.

Advertising - The main target is to attract local Norwegian people to get inside the store. In
addition to the advertising/promotion in newspapers, ads in local magazines, nearby
public transportation stops (bus/metro/tram), and nearby billboard ads will attract those
who live/work near the store. The advertisements will be very simple and direct
portraying pictures of fresh fruit and the smoothie product with a simple one line text
describing what/where it is. The idea is to establish one location and advertise simply in
that direct area through local means.

As briefly explained earlier, the overall message of Jamba Juice (to provide healthy,
nutritious, and good tasting juice smoothies from the freshest and best ingredients) will not
change, but the delivery will need to be adapted in order to acquire a foothold on some type of
market in Norway. This would fall under one-product, one-message. The adaptation will not
take place in the message communicated, but in the means of communicating as stated earlier.
The message and product can remain the same due to the simplicity of the product and
message put together. It is fresh delicious ingredients blended together for a healthy drink, as
simple as that. That is the message in the United States, it does not need to be changed to
meet the needs in Norway.

Possible barriers:

Semantic - This will need to be addressed to find out if the "Jamba Juice" brand name has any
additional meanings or slang meanings in Norwegian that is unknown to a non-native
speaker. Interpreters will be hired, and back-translation methods used. Also, any
semantic barriers will be breached with Short Channel Distribution techniques.

Cross-cultural - This will not be a barrier at all. The cross-cultural aspects should be a great
advantage for the market in Norway. The only potential aspect that might be a barrier is
the packaging, but should be taken care of with adapting to hard paper cups in
replacement of styrofoam.

Mechanical - With advanced technology with the internet and cellular phones, there will be no
barriers in communications. If there are any in the specific market, they will be
controlled directly by the Short Channel Distribution.

Psychological - These barriers will be overcome by addressing issues that Norwegians care
about, such as health, whole foods, and eating fruit. Not to mention their sense of
importance on breakfast, and having a balanced diet. This aspect is also an advantage
because Jamba Juice offers a truthful product. It will be no problem advertising it
 because it is attractive to the Norwegian culture, and once they consume the product,
they will come back.

VI. Distribution Strategies

As far as distribution channels are concerned, it will be most beneficial to have a Short
Channel of Distribution. This allows for close communication and connection with consumers.
This is exactly what Jamba Juice needs, is a good control on how promotion and advertising will
be done. This will also be beneficial with saving margins which would incorporate the wholesale
trade. This is a key aspect in the success of the company, and will be paid high attention and
priority. Jamba Juice needs to have an insider to get a grasp on the the specific needs that will
attract the most consumers to the store. This simply would be too big of a risk to have a Direct
Channel, or Long Channel Distribution, this aspect of promotion and advertisement is too vital.

Aspects to consider:

Cost - Not only the cost to hire a Short Channel Distributor, but also to maintain it. Jamba Juice
will make this a priority as mentioned earlier, and pay the money to get a high quality
Distributor to the people of Norway. Depending on different agencies agreements will be
made yearly.

Capital - The requirement will be met by private investments interested in Jamba Juice, and this
intriguing market overseas. Once initial capital is established, cash flow will be directed
to maintain all aspects of channeling in the future.

Control - The manufacturer will have limited control. This should not be an issue though,
Jamba Juice plans on using manufacturers that have been used in the past, and already
have established good relationships.

Coverage - Once market penetration has been established and maintained, the channeling will
not be as vital and less funded. In addition to this, leadership will hopefully be evolved
enough amongst the Jamba Juice employees in Norway to take over and create a Direct
Channel of Distribution in a few short years.

Character - Distributors must have an understanding of the vision of Jamba Juice, and mainly
grasp the similar desire to have it publicized by local fashions. They also need to share
similar qualities of the promotion of healthy lifestyle and good living that Jamba Juice is
composed of.

Continuity - For the first several years of establishing the Jamba Juice product, it will need a
steady contracted relationship with the distributor. Agreements set to specific length of
times will be included upon initial involvement.

VII. Marketing Across Cultures

 Culture is a very important aspect to consider, especially for a food or drink product. What
a culture eats and drinks is part of the reflection that defines them, and distinguishes them from
others. The people of Norway are known for being a healthy people. They tend to be more
obsessed with working out, and being fit. The also are known for eating whole natural foods.
The importance put on eating a big and healthy breakfast is ingrained into their minds when
they are young children. Also, they have a large and expanding market of fast food, pay-and-go
restaurants because of the lifestyle they live. All of these aspects contribute for a good
environment for Jamba Juice. Three aspects to examine:

Influence on Culture - They have desires to be healthy, to have a good appearance, and to
simply live a long happy life. Jamba Juice allows and promotes a healthy lifestyle with
its' natural ingredients, complimented with natural minerals and vitamins to create a
perfect drink/snack for Norwegians. There are a lot of gymnasiums and outdoor
cardiovascular activities to promote healthy living, such as cross-country skiing. These
influences can be used to direct them to the consumption of Jamba Juice. The product
also directs them to replace poor food/snack choices with something better for their
bodies.

Influence on thinking process - When introducing a new product into a market, self-reference-
criterion must be eliminated to have a smooth acceptance and transition. Jamba Juice
will do this by coupling the healthy aspects of the product, with the environment friendly
packaging that will be adapted to fit better with the Norwegian thinking process. They
hold recycling, and the environment protection to a great esteem, and Jamba Juice is
fully ready and capable of eliminating SRC on these fronts.

Influence on communication processes - Jamba Juice does not have a complex message to
communicate. It is simply that the Jamba Juice product is a healthy, natural, blended
fruit smoothie to promote healthy living and clean energy. Norway is interpreted to have
a lower context culture, they are very upfront people, and do not beat around the bush.
Therefore, Jamba Juice will convey the message through advertisements that are simple
and clear. Also, verbal communication will take place in the store itself with employees
giving brief descriptions of the product and background.

Consumers are always bombarded will influences from a plethora of different sources.
Jamba Juice is well aware of the main sources that will affect the consumption of it's product.
This is why they have analyzed the most important aspects including external and internal.

External:

Social class - Jamba Juice understands the importance of social class, and their smoothie
product covers a wide variety of classes. The social spread is relatively flat across the
nation. This helps Jamba Juice, because the product can and should be consumed by
everyone. The price will be comparable to those of similar alternatives such as drinks/
snack found in cafe's, or milkshakes and other drinks. Regardless of social class,
 people want to be healthy, and since the price will be similar, the selling point is a
healthier alternative.

Family - The female figure is highly looked upon. Many women have executive jobs and hold
high positions in companies. In the Norwegian culture women and respected and have
much say. Also in the family structure. Jamba Juice can take advantage of this because
all mothers want their children to be healthy. Mothers can take their kids out for a fun
healthy snack, while spending time together as a family. The family unit is important in
this society.

Groups - Business workers that are in a fast pace environment will be an important group to
target. This group will be highly exposed to the product (due to store location in highly
populated business area) and most likely will be placed close to cafe's and alternative
shops. When these business people find the ease, great taste, healthiness, and
economic price of the product, word will spread to others.

Opinion leaders - similar to what is mentioned in the family section, coupled with the groups,
both parents will be targeted to have a trickle down affect to get the whole family
involved. Once the product is established, everyone will be better exposed to Jamba
Juice and the product offered.

Internal:

Personality - Jamba Juice does not aim to segregate between classes, it is literally available for
all people who want to be healthy and have good natural energy. This aspect will allow
people with a more experimental personality to go out and try the Jamba Juice product.

Psychographics - Why will people consume this product? As mentioned earlier, to be healthy,
fit, and have good energy. This fits well with how the majority of Norwegian people want
to cognitively envision themselves.

Motives - The Jamba Juice continues common Norwegian motivations to be fit and healthy. The
motivation is to have a nice healthy body, and to be full of energy and live an activity
filled productive life. Jamba Juice can promote these motives by offering healthy
blended smoothies that give you energy and increase healthiness.

Learning/attitude - Either people will like the Jamba Juice smoothies, or they won't. Depending
on what fruit the individual likes to consume, they will learn rather quickly. This is why it
is so important to make a good first impression when the consumer comes initially. A
good atmosphere and relationship will be made with first time customers with the brief
explanations and backgrounds that will take place.

Perception - With simple advertisements of fresh fruit, healthy people, and simple messages,
Jamba Juice will be perceived easily as a good product.
**Pricing Strategy

Price Leadership - This will be the strategy that is basically the only one available because this
is a brand new product in the Norwegian market. Since it is a brand new product in the market,
Jamba Juice will have the authority to set the price, and set the stage for where it will go in the
future. As compared to similar products, such as coffee drinks, blended teas, and other snacks/
beverages, it will be around the same price. This is done in order to maintain the cost of
sustaining the company, and also to attract customers. The selling point of the Jamba Juice
product is not necessarily the price, it is the fact that you can get this healthy, natural, delicious
blended fruit beverage, for the same price as a coffee or something. The selling point is that it is
better tasting, and better for you, at the same price. So, this is the pricing strategy, initially for
the Jamba Juice product.
SOURCES

1. http://www.ssib.no/index.php?ID=89

2. http://expatriatepay.blogspot.com/2010/03/norway-oslo-cost-of-living-january-2010.html

3. http://www.everyculture.com/No-Sa/Norway.html