I.

    Executive Summary

Jamba Juice is a leading high-end smoothie and health food eating establishment that strives to
provide healthy and natural food products.  Jamba Juice’s mission is to be recognized as a fun and
healthy alternative for people on-the-go, creating a unique dining experience for each customer. Our
friendly and inviting employees welcome customers with warm smiles and positive attitudes while
focusing on satisfying the needs of the guests that walk through the door. All Jamba Juice products are
made fresh daily from high-quality, natural ingredients.

All of the current Jamba Juice restaurants are located in the United States; however, after conducting
and evaluating extensive research, Jamba Juice is primed for success at an international level.  We plan
to take the first step in this endeavor by opening a Jamba Juice overseas in Shanghai, China, located
specifically in one of the city’s largest malls, the Super Brand Mall. Based on our research, we have
determined that the Chinese culture, mindset, and market will be accepting of this “American” brand.
Shanghai’s current demographic and economic trends make Shanghai the perfect place to locate a Jamba
Juice. China’s economy is second in size only to the United States and is rapidly expanding due to
technological advances and the country’s staggering population.  Shanghai remains China’s most
densely populated city with a population of 13,831,900 people, meaning that our brand and logo will be
exposed to a large audience.

Our Jamba Juice’s primary target market is the health conscious upper-middle to upper class 16-28
year old demographic.  We are mainly targeting that fact that most of these people are very accepting of
“American” brands and trends, such as healthy eating.

We plan to have an International Operations Representative (IOR) interview and hire the most
qualified employees for the positions of cook, cashier, general manager, and shift leader.  This
international Jamba Juice team will be responsible for the day-to-day business in the store.  This Jamba
Juice will offer wide varieties of smoothies, coffee, tea, oatmeal, salads, and sandwiches.  Our goal is to
provide our customers with fresh, high-quality ingredients that we will have transported, by truck, through
the Cheuk Tak Transportation Company.  

The planned date for our international Jamba Juice to open it’s doors is June 1, 2011.  This will help
insure the maximum level of foot traffic as summer in Shanghai is the busiest time for economic activity.
We plan to work with the Puyi Advertising Company to develop many methods of advertising directly
through the Internet, television, and throughout Line Two of the Shanghai Metro.  We also have an
indirect plan of advertising through the sale of apparel and positive word-of-mouth.

We have included our estimated first year income statement and balance sheet in order to solidify our
expected success in terms of a $61,100 net profit, and also to demonstrate our sound financial planning.

With the information provided, we plan to further your knowledge of Jamba Juice’s potential in the
international market of Shanghai, China.  We are extremely optimistic about this endeavor and feel that
the opportunities that the success that it will bring will be only the first stepping stone towards more
international expansion of Jamba Juice.

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II.     Introduction

Jamba Juice is a leading smoothie and health food establishment that focuses on providing healthy

options made from natural ingredients.  Our mission is to offer

consumers great-tasting and better-for-you products.  With

over 700 locations across the United States, Jamba Juice is

recognized as a fun and healthy alternative for people on-

the-go.  Jamba Juice is not just an average smoothie shop

– it also offers a variety of nutritious wraps, sandwiches,

and salads.  Customers can indulge in a guilt-free snack,

and Jamba Juice offers consumers the option to add a Boost to personalize their drink, giving them an

energized feeling. There is certainly something for everyone.

In 1990 Jamba Juice was founded by Kirk Perron in San Luis Obispo, California, and was originally

named Juice Club.  Perron decided to begin to expand his lone smoothie store by franchising in 1994.  In

1995 Perron wanted to distinguish his smoothie store from the

competition.  He wanted his store to be known to offer a hipper,

festive, and better quality product. He chose the word "jamba" which

means "to celebrate" in Swahili.  Now the Jamba Juice headquarters is

located in San Francisco, California.

“We want to grow Jamba into that lifestyle brand that really
stands for great-tasting, better-for-you nourishment, and we have a lot of opportunity to grow the
products and things that can help people lead healthier lifestyles through our offerings. I feel
we’re just getting started.”
Kirk Perron, Founder, Jamba Juice, July 2000

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 Based on our research, we have determined that there is no better location to establish a Jamba Juice

franchise than the People’s Republic of China (here after referred to as “China”).  Chinese culture is

becoming increasingly accepting of foreign markets, specifically those found to be “hip” or “trendy” in

the United States.  It is widely known that “As Shanghai goes, so goes the rest of China.” Shanghai, the

most heavily populated city in the world, has a population of

18,552,309 and is rapidly growing, which makes locating our

franchise within the city extremely important.  Shanghai sets

the precedent for popular culture in China but still

encompasses traditional Chinese culture.

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 When looking for an appropriate location, we searched the city for the area with consumers who

would be most accepting of our progressive brand.  The Super Brand Mall is located across the

Huangpujiang River from Shanghai’s largest tourist attraction, The Bund. This will provide a large

variety of customers for our first Jamba Juice location.  Super Brand Mall is recognized as the epicenter

of shopping, dining, and entertainment in Shanghai with an emphasis on foreign brands.  Our proposed

location is the perfect foundation to expand Jamba Juice throughout China and make our brand

internationally known.

We plan on opening the international Jamba Juice branch on June 1, 2011. Opening at the beginning

of summer will give the new store the maximum amount of traffic since summer is the season that

Shanghai has the most tourists. Summer is also the hottest time of year; therefore more people will be

looking for a refreshing smoothie to cool down from the heat.

China has been a member of the World Trade Organization (WTO) since 2001.  The WTO is the

only global international organization dealing with the rules of trade between nations.  The WTO

agreements are negotiated and signed by the bulk of the world’s trading nations and ratified by their

parliaments.  Their goal is to assist the producers of goods and services and to help exporters and

importers conduct their business.  China’s participation in the organization is one of the main reasons

the Chinese people have become accepting of unique foreign brands such as Jamba Juice.  One existing

trade barrier is China’s Foreign Trade Law.  This law states that trading rights are to be automatically

available through a registration process for all domestic and foreign entities and individuals.  China now

allows any domestic or foreign enterprise or individual to trade steel, natural rubber, wools, acrylic, and

plywood.  In September of 2008, China announced that it had delegated authority for foreign retail outlet

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approvals to the government.  This is a very positive move in streamlining and facilitating approvals for

foreign retail outlets, which will greatly ease the introduction of our store in Shanghai.

III.     Analysis of the International Business Situation

A.     Economic, political, and legal analysis of the trading country

    1.     Describe the country’s economic system

Chinese leaders call their style of governing “market socialism.”  The Chinese economy is unique in

a couple of ways.  It is one of only five Communist nations in the world, and it is the only one which has

a relatively large GDP.  China has managed this by combining a market-driven economy with

supposedly socialistic ideals.  As of right now, the Chinese government is not exactly focused on

improving the lives of its people, but the government claims that by helping a small portion of the

population initially, it will eventually improve the lives of all people.  This policy has allowed the

Chinese government to be by far the most successful of any one-party style of government.  The Chinese

economy of today has come a long way from being 100% publicly owned and self sufficient.

2. Describe economic information that is important to Jamba Juice

According to the New York Times, China recently passed

Japan in becoming the world’s second largest economy, second

only to the United States. However, it is the by far the fastest-

growing economy, contributing 30% of the world’s growth in

2009. China relies heavily on its exports to the U.S. In order to

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sustain their profits from this trade they buy U.S. treasuries. This keeps the value of the yuan low

relative to the U.S. dollar; therefore, their goods are cheaper for the U.S. to buy.  Although this policy is

key to the growth of the Chinese economy, it doesn’t benefit the Chinese middle class consumer.  The

low yuan means that the purchasing power, standard of living and wages of consumers in China are low.

The Chinese people have grown tired of their low standard of living, and their government has begun

to respond.  They have started to show signs of allowing the yuan to appreciate which would

significantly increase the purchasing power and the general wealth of the Chinese consumer. This

increase in the disposable income of the people will create a stronger desire and ability to shop at the

Super Brand Mall.  Besides the increase in foot traffic, customers will also be more willing to stop in to

our Jamba Juice and grab a snack.  With a little extra money to spend, we believe shoppers won’t just

spend their money on lunch but will also want to purchase a smoothie to go with it.

  3.     Describe the trading country’s governmental structure and stability

The current Government of China is the Chinese Communist Party which has 78 million members

accounting for 16% of the country’s population.  Officially, the highest body within the government is

the National Party Congress which only meets once every five years.  Most of the decisions are made by

the nine member Politburo (Political Bureau) Standing Committee. These decision makers are the most

powerful men in China.  It is somewhat unclear what their exact decision-making process is, but it is

believed that the Standing Committee comes to a group consensus when implementing policies. Our

Jamba Juice will most likely never be a concern of either of these committees’; however, it is important

for our franchise to be aware of the complexity of the Chinese governmental structure.  

Many economists believe China is currently growing at an unstable rate.  China’s GDP growth is by

far the largest of the world powers and is only rivaled by newly developing Middle Eastern and African

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nations.  Such great growth is hard to maintain for a country with a generally weak infrastructure and a

population of 1.3 billion people.  Despite these seemingly daunting facts, Chinese leaders have the

situation under control.  China has some of the top economic minds in the world and together they’ve

realized what they must do to not only accomplish their goal of providing decent lives for all Chinese,

but also to stabilize their rapidly-growing economy.  With the current worldwide economic struggles,

China is beginning to realize it can no longer rely strictly on foreign demand to drive its colossal

economy.  China has recognized that the domestic demand for their products needs to increase in order

to stabilize the economy.  For this demand to increase, a rise in the disposable income of the people

must occur. One way the Chinese plan to accomplish this is by allowing the yuan to appreciate in the

future.  

Besides the threat of diminishing foreign demand, China also faces the danger of rapid inflation.

China’s current rate of inflation is 5.1% which is not terribly dangerous, but if the rate grows higher it

could result in serious problems for the country.  The two major factors contributing to the threat of

inflation are the increase in both the demand and supply of loanable funds and the excessive printing of

money to keep the value of the yuan low.  Over the last few months China’s central bank raised the

required reserve ratio from 1.5% to 18.5% and it may be set to 20% within the next six months.  These

numbers are compared to a U.S. reserve ratio of 10% which has not changed since December of 2006.

These major increases in the reserve requirement will decrease the dangerous amount of liquidity that

the large banks of China are lending at.  The expectations of China to eventually slow down the printing

of its currency will also greatly curb the dangers of inflation.  According to Qu Hongbin, the co-head of

Asian economics research at HSBC, “There’s no need to panic, as Beijing has more than enough

effective policy options to combat inflation.”

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 Commodity prices, especially food, have gone up due to recent increases in consumer demand and

the government’s attempts to curb inflation.  This increase in the price of food could potentially pose

some problems for the pricing of the products at our Jamba Juice location.  However, these increases

will not be problematic for us as they will be short lived.  China imposed these controls on food in order

to keep the prices under control.  According to a top economic planning agency in China, the National

Development and Reform Commission, “The country's commodity futures prices had declined since the

government stepped up measures to battle inflation.”  China is also self sufficient in most food

production and carries a large trade surplus. Together, this makes the country well prepared to deal with

the danger of rising world commodity prices.

    4.     Describe laws and/or governmental agencies that affect your business

China recently set in place a new law regarding food.  The Food Safety Law (FSL) was brought into

effect in June 2009.  According to the United States Department of Agriculture (USDA) Foreign

Agriculture Service, this law is a great improvement over the old complex legal measures that China

used to have in place.  The FSL is very important because it requires businesses in the food industry to

limit their use of pesticides and food additives according to Chapter 6 Article 37.

In 1978 China implemented the “Opening to the Outside World” policies, and since then the Chinese

gross domestic product (GDP) has grown over 9% annually.  These policies make it much easier for a

foreign brand, such as Jamba Juice, to open and prosper in China.

While our Jamba Juice will be privately owned and operated, it will be important to keep in mind

that some of China’s businesses are run by the state, and many are at least somewhat influenced by a

controlling hand.  Although this fact may not be critical, it is worth noting, simply because other

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businesses and consumers have a different political mindset than what people from the United States are

used to.

B.     Trade and cultural analysis

    1.     Geographic and demographic information

China is located in Southeast Asia along the coastline of the Pacific Ocean.  It is the fourth largest

country measuring 9.6 million square kilometers with 18,000 kilometers of coastline.  China is bordered

by fourteen other countries as well.  China contains countless plateaus, plains, basins, foothills and

mountains, and has the longest river in Asia, the Yangtze. Shanghai, specifically, is located on the east

end of the Yangtze River Delta. It is bordered by the estuary of the Yangtze River to the north, the

Jiangsu and Zhejiang Provinces on the west, Hangzhou Bay is to the south, and on the east by the East

China Sea. The city of Shanghai is composed of a sprawling 6000 square kilometers. Shanghai

experiences all four seasons, summer being the peak time for tourism.

The indirect competition that our Jamba Juice will have in the Super Brand Mall is Starbucks and

McDonald’s.  Starbucks is known for their coffee and espresso drinks.  While Jamba Juice offers coffee

to customers, it is not the company’s main product.  Unlike Jamba Juice, McDonald’s is known for their

fast but fatty food.  Even though McDonald’s has just recently launched a new campaign which offers

McCafe items such as cappuccinos, frappes, and smoothies, Jamba Juice focuses more on the health

food aspect of their offered products, especially the wide variety of smoothies. Therefore Jamba Juice

will have a more competitive edge when it comes to customers who are looking for a healthy and

refreshing alternative. With proper advertising and the opening of a new “American” store, Jamba Juice

is sure to attract customers who are interested in new and upcoming health trends.  Since Jamba Juice is

widely known for their healthy food and drink options, it will have an advantage over Starbucks and

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McDonald’s because like most people, the Chinese are very health conscious and will want to choose

healthy dining as a first option.

  2.     Market segment analysis target market

China has the largest population if all countries in the world at 1,330,141,295 people as of November

2010. Shanghai is the largest city in China with a population of 18,552,309 as

of December 2010.  The average age in Shanghai is 32.  The vast majority of

the Chinese population is young adult to middle-aged.  This fits perfectly with

our target age group which ranges from seventeen to mid-forties.   

Our primary target market is ages 16-28, and our secondary market is 29-45. This target market also

includes the people in that age demographic that are upper-

middle to upper class.  Our Jamba Juice will also use the fact

the young-adults of our target group are very interested in

healthy-living trends.  They are also prone to purchase

“American” foods and fashions.

The purchasing power is currently highest in China’s metropolises. The average yearly income in

Shanghai is ¥63,000 while Beijing has the second highest with ¥58,000.  This means that Shanghai

contains a larger number of consumers that will be willing to purchase Jamba Juice Products.  Based on

China’s desire to begin focusing on improving the lives of its entire populous, this number of consumers

will only continue to grow.   

The members of our primary target market are known for wanting to be “hip” and “trendy”.  A

Jamba Juice opening in Shanghai would serve as a new “hangout” in the Super Brand Mall that serves

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exactly what these people want.  Low calorie, healthy beverages and meal choices are just what these

people are looking for, and that’s just what we serve.

    3.     Analysis of the potential location

“Site selection is a priority for the company. To create the best choice for somebody, you have to
start with the most convenient, easiest location for people to access, and then follow it up with
the best experience in the store.”
Kirk Perron, Founder, Jamba Juice, May 1998

The potential location for opening a Jamba Juice would be in the food court of the Super Brand Mall

located in Shanghai.  This mall is the most influential business and financial center in the city and is

known for its international style and urban shopping center.  The mall consists of thirteen floors and

offers an area of 250,000 square feet.  The Super Brand Mall has an average weekday traffic of 180,000

persons and weekend traffic as high as 300,000 consumers.

In 2005 Super Brand Mall was given the “Famous Chinese Business Brand” award, the highly

prestigious “Mall China Gold Mall Award” in 2006, and was the only recipient of the “China Best

Shopping Center Progress Award.”  The mall is home to more than seventy international restaurants and

an extensive range of entertainment and education venues.

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 We plan to locate specifically on the fifth floor of the Super Brand Mall. The fifth floor is filled

mainly with places to dine and is set up like an upscale “American” food court. By locating on the fifth

floor we will expose the business to our hungry and thirsty target market. This also makes Jamba Juice

easily recognizable as eating establishment. The fifth floor is the exact center of the mall as there are ten

total floors. This creates easy access by stair, escalator, or elevator, from any of the nine other floors.

Jamba Juice promises consumers daily freshness in all products.  As a result of the 2008 food crisis

and the hard-hitting recession in bordering countries, China has begun to increase their agricultural

production of fresh fruits and vegetables to lead towards self-sufficiency.  Therefore instead of going

through all the complex legalities and safety of importing fruit and vegetables into the country, our store

will buy them fresh, as needed, from local organic farmers in the surrounding area.

China requires that both the franchiser and the franchisee be legal entities when opening a franchise

such as Jamba Juice.  There must be signed agreements between franchisers and franchisees that include

quality and standards requirements, arrangements for franchise fees, and liability agreements in case of

disputes.  The franchiser must also be able provide guidance, training and technical support as a mature

business to the franchisee.  Jamba Juice fits these guidelines as there already over 700 stores currently

open and thriving in the United States as Jamba Juice is one of the Top 50 Franchises according to

Franchise Business Review.

IV.      Planned Operation of the Proposed Business

A. Proposed organization

The opening of Jamba Juice in Shanghai will be the first international Jamba Juice location.  For this

reason, Jamba Juice Shanghai will be owned by the parent company whose headquarters is located in

San Francisco, California.  The Jamba Juice franchise has been looking to expand into international

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locations, and the opening of Jamba Juice Shanghai will be the first of many to come.  An International

Operations Representative will travel to Shanghai to complete the hiring process, conduct interviews,

and specifically select employees with the greatest knowledge and skills necessary for each Jamba Juice

team position.  This representative will finalize employee choices and inform and train the selected

employees in each of their specific areas, most important of which is the General Manager position.

Jamba Juice takes great pride in having friendly, outgoing employees who are eager to assist

customers and are passionate about the Jamba Juice brand.  Jamba Juice focuses on creating a unique

and memorable dining experience for each of the customers that walk through our doors.   There are

four positions necessary for the smooth operation of each individual Jamba Juice location.  These

include the General Manager, shift leader, cook, and cashier.  A fully trained and certified Management

Employee must train each of these regular employees to the company’s satisfaction prior to the opening

of the Jamba Juice Store, as stated in the Jamba Juice Franchise Disclosure Document, or FDD.  Six

employees will be working in hourly shifts as determined by the shift leader -- three part-time cooks,

two full-time cashiers, doubling as shift leaders, and one general manager.  The general manager and a

shift leader (cashier) will be present at all times along with up to two cooks.

General Managers are responsible for the overall operation of the restaurant including contacting and

interacting with the suppliers that have been selected.  These employees must be effective team leaders

and assist in the training, development, and discipline of fellow team members.  They manage the

business of the individual restaurant while offering outstanding customer service, community

involvement, and operational excellence.  General Managers must have a minimum of five years of

supervisory experience within a food company, and college degrees are preferred. Jamba Juice shall

ensure that the operation of the Jamba Juice store is under the direct control of a general manager at all

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times. The ideal General Manager will be a local citizen of Shanghai with extensive knowledge of the

culture and language.

As a shift leader, responsibilities include opening and closing the restaurant, hiring and training new

employees, and creating the schedule for operating hours, including individual employee shifts.  As with

all other Jamba Juice team member positions, shift leaders must maintain positive relationships with

customers, and a college degree is preferred.

Employees with the title of cook are responsible for the processing and creating of orders for

customers.  Cooks must also be able to recommend appropriate products in order to meet an individual

customer’s needs and enhance a customer’s dining experience through sampling.  They must have

knowledge in cleaning and operating food equipment such as blenders and other tools.  Stocking

supplies is another common task for these employees. Cooks must work in a timely manner and

consistently serve all Jamba Juice products to specifications while following health, safety, and

sanitation guidelines for all products.  Knowledge of operating the cash register is also required in the

event that the working cashier is unavailable.  This position is one of the most important in any Jamba

Juice store as they are responsible for creating the meals that will satisfy customers’ taste buds and keep

them coming back.  Cooks should have at least one year of experience in the food chain industry.  

Cashiers must handle all the cash transactions according to the Jamba Juice cash-handling policies,

greet customers with a smile, and maintain eye contact while interacting with various customers.

Communication with customers must be clear and accurate to create a positive experience. Cashiers

must work well in a team environment and be able to work calmly under stressful conditions.

B.     Proposed product/service

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     1.     Details of the products/services to be provided

Jamba Juice offers a wide variety of smoothies, drinks, salads, and sandwiches.  

There are endless smoothie options.  Some customer favorites include:

Banana Berry
Strawberries Wild
Peach Pleasure
Mango-a-go-go
Pomegranate Paradise

In the Chinese culture, peaches, symbolizing longevity, and bananas, which symbolize education and

brilliance in work or school, are very popular fruits.  Jamba Juice recognizes these benefits and provides

products with these fruits.

Customers also have the option of adding a Boost to their smoothie. These Boosts do everything

from giving customers a little extra energy to providing them with their daily vitamins.

Soy Protein Boost

Daily Vitamin Boost
Energy Boost
Antioxidant Power Boost

  If smoothies aren’t the customer’s cup of tea, then he or she may try one of our Fruit Tea Infusions,

or choose from one of our Mighty Leaf Teas -- organic whole-leaf black, green, or herbal tea. Popular

tea options include:

Passion Fruit Tea Infusion

Pomegranate Tea Infusion
Organic Earl Grey
Organic Spiced Chai
Organic Green Dragon

Jamba Juice also offers customers healthy meal options including:

Ideal Meals:  yogurt parfaits with granola and fruit toppings

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 Steel Cut Oatmeal:  organic oatmeal with choice of toppings
Wraps, Salads, and Sandwiches: grab-and-go items free of
artificial flavors and preservatives
California Flatbreads:  delicious toppings on a flatbread crust
Baked Goods:  all-natural, including pretzels, cookies, and
scones

With the introduction of these meal options, customers who would normally purchase a smoothie or

drink and then go elsewhere for food will now have the convenience of purchasing a complete meal in

one stop.  Although these food items come with American names and American tastes, the ingredients

are all natural and organic and will be easily accepted by the Chinese population.  

In “Food Safety First,” Rhondi Shigemura, the Director of Research and Development at Jamba

Juice, says, “You can minimize risks by choosing a supplier who is serious about food safety.”

Hamilton Testa-Avila, Jamba Juice’s Quality Assurance Manager agrees, stating, “We have an in-depth

checklist for evaluating suppliers.”  Jamba Juice requires fresh fruits, juices, dairy products, vitamins,

and protein ingredients to produce their smoothies.  Jamba Juice relies heavily on their suppliers,

especially those of their fruit.

Our goal is to provide our customers with fresh, high-quality ingredients.  We plan to do this by

using suppliers in the provinces surrounding Shanghai including the Jiangsu, Shanxi, Zhejiang,

Shandong, Guangdong, and Hebei provinces. Chengde Co-Intel Export Products Co., Ltd., located

1480km away from Shanghai in the Hebei province, will provide us with a wide variety of fruits such as

apples, pears, peaches, strawberries, oranges, pineapples, bananas, and melons.  Shenzhen Dingada

Trade Co. Ltd. in the Guangdong province will be our main mango supplier, as mango is an important

fruit in the production of our products.  There are dairy farms located in Henan Jiaozuo City and

Xiaodian Taiyuan in the Shanxi province, respectively located just over 1000km and 1360km away from

Shanghai that can provide us with all of our dairy products.

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 2. How the goods will be transported to/from the home country

Jamba Juice relies heavily on their suppliers, especially those of their fruit and dairy.  Their goal is to

consistently provide high quality products.  In order to do this, Jamba Juice will have their fruits and

dairy shipped in refrigerated truck to the Super Brand Mall location from various farms in the provinces

surrounding Shanghai.  Transporting the goods by trucks is the most practical option for Jamba Juice.

Since there are no large scale farms located within 1000km of Shanghai, air travel would be extremely

expensive and is therefore unrealistic.  There are no major train routes that would deliver the goods in as

timely a manner and as directly as a trucking system.

We will use the Cheuk Tak Transportation Company which will deliver our products directly to

Jamba Juice.  Cheuk Tak agrees that trucking is the most realistic way of travel, saying on their website,

“The untold truth today is that in China the highway network is far better than many in the West would
expect. Transit time is amazingly short vis-a-vis the large area of the nation.”

Cheuk Tak’s network of road delivery covers the entire country of China, and they boast a 98% success

rate in delivering goods to destinations across the country.  The distances that our products need to

travel, all less than 1500 kilometers, would allow Cheuk Tak to deliver our products within 48 hours.

The benefits that this would pose are immense, especially since we want our products to spend as little

time in transit as possible. By reducing the time that our goods spend in trucks, we can ensure that we

have the freshest ingredients possible.  Costs involved with using the Cheuk Tak trucking system are

relatively low, especially when compared to the costs of transport by air.  Not only are the costs

significantly less expensive, but the time associated with a trucking system is not much more than using

air transportation.  Using the Cheuk Tak trucking system will only take a few hours longer than

transporting goods by air.

C.     Proposed Strategies

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     1.     Proposed pricing policies

At all Jamba Juice locations, prices for menu items are the same across the board. Smoothies and

juices come in three different sizes: Sixteen (16 fl oz), Original (22 fl oz), and Power (30 fl oz). A

Sixteen costs $3.75USD, Original costs $4.50USD, and a Power costs $5.30USD. Our Jamba Juice will

accept payment in the form of the yuan (China’s currency). Therefore we will price a Sixteen at

¥23.06CNY, an Original at ¥29.65CNY, and a Power at ¥34.92CNY. (These prices are all subjective to

the current value of the Chinese yuan compared to the United States dollar.)

Compared to the competition, Starbucks and McDonald’s, Jamba Juice’s prices are relatively higher

than McDonald’s and only slightly more expensive than Starbucks, which is why we will be using a

competitive pricing policy.  A medium smoothie at McDonald’s costs around $2.50USD which is less

than at Jamba Juice.  We do not foresee this as a problem because of the difference in quality between a

Jamba Juice smoothie and a McDonald’s smoothie.  For health conscious, calorie counting Chinese in

our target market, the difference in nutritional value between a Wild Berry smoothie at McDonalds and

a Berry Fulfilling smoothie at Jamba Juice is staggering.  A small Wild Berry smoothie contains 378

calories and four grams of fat, whereas the Sixteen Berry Fulfilling smoothie only contains 150 calories

and has zero grams of fat.  The calories in a Starbucks Venti Strawberries and Crème Frappucino are a

horrifying 770 with 19 grams of fat, compared to a Jamba Juice Power Strawberry Whirl with 380

calories and zero grams of fat.  As our target market is highly aware of their well-being, they are much

more likely to purchase a drink with fewer calories and fat even at a higher cost.  The impressive

nutritional value of Jamba Juice’s menu along with the more elegant atmosphere will attract consumers

in our target market to come to our location and purchase our products.

            2.     Proposed promotional program

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 As the Jamba Juice name will not yet be widely known in the Shanghai area, we have created a

marketing strategy to promote awareness of the Jamba Juice name and logo to attract customers.  In

1995 China passed the Advertising Law of the People's Republic of China.  This law states that

advertising in China must:

not contain false and deceiving information

not impair the mental and physical health of the minors and the disabled
not display the national flag, emblem, or anthem
not use the words "state-level," "the highest-level," or "the best"
not harm social interests or hinder social stability
not hurt the social public order
not contain any pornographic, superstitious, horrible, violent or ugly information
not harm the environment or natural resources
not discriminate against national origin, race, religious affiliation, or gender
include statements of commodity performance, origin, use, quality, producer and
manufacturer, valid term, promise, service's items, manner, quality, and price must be
clear and explicit

Our Jamba Juice can easily comply with these laws as none of our advertising will defy any of these

standards.  

Part of our promotional mix will include advertising within the Shanghai Metro.  We will advertise

specifically on Line Two, most heavily at the Dongchang Road Station.  The Dongchang Road Station is

less than a ten minute walk to the Super Brand Mall and is the closet stop.  It is a main source of

transportation for our potential customers.  Line Two of the Shanghai Metro runs from East Xujing to

the Pudong International Airport (See Appendix pg. 27).  Therefore advertising on Line Two will help

make the Jamba Juice name and logo recognizable and will create an impetus for customers in our target

market to try out this new brand. (See Appendix pg. 29 for a sample advertisement for the Shanghai
19
Metro.)  Prices for advertising are prone to differ at each metro station.  To help with organizing,

negotiating, and implementing our advertisements, we have come to the consensus that hiring an

advertising agency is the most effective way to do so.  The Puyi Advertising Co., Ltd. located in

Shanghai is an agency that is well suited to our needs.  

Another portion of our promotional mix is to advertise on a larger scale through television

advertisements.  According to StartUp Overseas, just short of 100% of households in China have a

television. The Chinese government says that they have 1.2 billion viewers. This is a huge number of

people to whom we could expose the Jamba Juice name and logo.  Specifically, we will run an

advertisement on the local Shanghai channels to reach our target audience.  The costs of running a

television advertisement will vary based on time of day, how often, and how long the time-slot is during

which we run the commercial.  We will work with the Puyi Advertising Co., Ltd. to develop an

appropriate and cost-effective commercial that fits with China’s Advertising Laws to attract our target

audience.

Jamba Juice not only sells delicious food and drinks, but they also sell apparel (See Appendix pg.

28).  By selling apparel such as tee shirts, hooded sweatshirts, and sweatpants bearing the Jamba Juice

name and swirl logo, we will be gaining free publicity.  In fact, as customers purchase the clothing,

Jamba Juice is profiting fiscally as well as profiting from the additional benefits of other potential

customers seeing the name and logo.

Traditionally in China, advertising doesn’t exude the same influence on the Chinese consumer

psyche as it does a normal person in the States.  The Chinese rely more on endorsement from friends,

and personal research and reading. Therefore our biggest tool will be the asset of word-of-mouth.

20
 In addition to the high-end advertising that we’ll be putting in place with Puyi Advertising

Company, we plan on announcing the opening of Jamba Juice on the Super Brand Mall website,

www.superbrandmall.com, under the Events Calendar tab during the month of May since the planned

grand opening date is June 1, 2011. There we will have pictures of the inside of the store, our products,

as well as a printable coupon (See Appendix pg. 28) as a part of our sales promotion. A customer with a

coupon will get a size Sixteen smoothie for only $1.00 or ¥6.59. This coupon will be good for the week

of the store’s grand opening. This low price for smoothies on the week of the store’s grand opening will

draw in a large amount of customers.

The last portion of our promotional mix will be personal selling. Our well-qualified employees will

be in charge of offering additional products for customers to purchase at checkout such as clothing,

water bottles, upgrading in product size, or adding a boost. Our employees must also have positive

attitudes towards Jamba Juice products as well as the business in general.

V.     Planned Financing

A.     Projected income statements for the first year’s operation

21
B. Projected balance sheet for the end of the first year

22
 C.     Description of the planned growth of the proposed business

After our first year of operation we plan on accumulating $61,100 in net profit. We estimated our

sales profits in China based on our expectations of the market and by researching the revenues of Jamba

Juice’s in similar settings. We used Jamba Juice’s FDD (Franchise Disclosure Document) to gather

financial information for the year 2009, which we could use to aid us in our estimates. Our approximate

total expenses came out to $292,900 (see Income Statement for detailed breakdown). Putting the FDD

to further use we were able to calculate approximate figures for a first year balance sheet, which

effectively shows our expected assests and liabilities.

23
 Many of the numbers in these tables are based on averages of Jamba Juice stores in America,

however, there are some differences in figures because of our unique location. For example labor costs

would be much lower in China as Jamba Juice’s in the U.S. pay most of their employees minimum

wage. In China there are a large amount of young people that would be eager to work for us at their

minimum wage. Therefore, we will pay our cooks and cashiers the minimum wage of ¥37, shift

leader/cashier ¥40 and our sales manager ¥43. Based on our estimate of the store being open for 4,200

hours in a year and an average of 3.3 employees working at one time, our labor costs will come to

$83,000 which is substantially less than the $115,000 it would have cost in the U.S.

Based on the our first year’s projected net profit we are setting a goal of achieving $350,000 net

profit in our first five years of operation. Sales will increase over time as our Jamba Juice establishes

itself within the Super Brand Mall.

VI.     Bibliography

24
“About Us”. Super Brand Mall. Nov. 2010. 19 Dec. 2010.                                                              
<http://www.superbrandmall.com/info/AboutSBM_en.asp>

Amadeo, Kimberly. “China Economy”. About.com. 16 Feb. 2010. 17 Dec. 2010.                        
<http://useconomy.about.com/-histories/Jamba-Juice-Company-Company-                                    
od/worldeconomy/p/China_Economy.htm>

Amadeo, Kimberly. “Is China Threatening to Sell U.S. Treasuries?” About.com. 16 Mar. 2009.
17 Dec. 2010.
           <http://useconomy.about.com/b/2009/03/16/is-china-threatening-to-sell-us-                       
treasuries.htm>

Arias, Martha. “How does China Regulate Advertising?” Mar. 29 2010. Internet Business Law    
Services. Jan. 11 2011.                                                                                                               
<http://www.ibls.com/internet_law_news_portal_view.aspx?s=latestnews&id=2206>

“Average Salary in China”. Q2Hoo.16 Jul. 2010. 19 Dec. 2010.                                                
<http://www.q2hoo.com/2010/07/average-salary-in-china.htm>

Barres, Mark. “China Franchise Law”. eHow. 18 Sep. 2010. 19 Dec. 2010.                                  
<http://www.ehow.com/facts_7183407_china-franchise-law.html>

Begang, Wu. “Final Food Safety Implementation Law Measures”. Gain Report. 14 Aug. 2009.
USDA Foreign Agriculture Service. 19 Dec. 2010.                                                            
 <http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Final%20Food%20Safe    
   ty%20of_8-14-2009.pdf >

Bradsher, Keith. “Beijing’s Focus on Food Prices Ignores Broader Inflation Risk”. New York
Times. 17 Nov. 2010. 4 Jan 2011                                                                                                   
<http://www.nytimes.com/2010/11/18/world/asia/18china.html>

Bruner, Kristi. “Jamba Juice External Analysis”. BUSA. 25 Feb. 2009. 19 Dec. 2010.                
<www.plu.edu/~hymeskl/doc/capstone.doc>

“China Demographics Profile 2010”. Index Mundi. 3 Nov. 2010. CIA World Factbook. 11 Dec.
2010. <http://www.indexmundi.com/china/demographics_profile.html>

“China Geography”. China Travel Guide. Apr. 2010. 12 Dec. 2010.                                            
<http://www.travelchinaguide.com/intro/geography/>

25
 “East & Southeast ”. The World Factbook. 24 Jan. 2011. CIA. 30 Dec. 2010.                      
<https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html>

“Economy of the People’s Republic of China”. Wikipedia. 18 Dec. 2010. 19 Dec. 2010.            
<http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China>

“Food Safety First”. SYSCO. June 2009. 19 Dec. 2010                                                                 
<http://www.sysco.com/quality_assurance/food_safety/articles/juiced.html>

“Food Safety Law Related Measures” USDA. 14 Aug. 2009.  Foreign Agricultural Services. 19
Dec. 2010.  <http://www.usdachina.org/info_details1.asp?id=2431>

“Jamba Juice”. Coriolis Research. Dec. 2001. 19 Dec. 2010.                                                   
<http://www.coriolisresearch.com/pdfs/coriolis_jamba_juice.pdf>

Lukens, Jeff. “Could China’s Instability Threaten America?” Right Side News. 6 Dec. 2010.      
New Media Alliance.  19 Dec. 2010.                                                                                        
<http://www.rightsidenews.com/2010120612262/world/geopolitics/could-chinas-                     
instability-threaten-america.html>

“Made-in-China.com”. Dec. 2010. Focus Technology Co., Ltd. 31 Dec. 2010.                      
<http://www.made-in-china.com/>

Mones, Nicole. The Last Chinese Chef. Boston: Houghton Mifflin Harcourt, 2007

“Portable Power”. Enterprise Resilience Management Blog. 15 Feb. 2010. 14 Dec. 2010.            
<http://enterpriseresilienceblog.typepad.com/enterprise_resilience_man/2010/02/                     
globalization- versus-selfsufficiency.html>

“Politburo Standing Committee”. Jan. 2009. University of Florida. 3 Jan. 2011.                      
<http://cero11.cise.ufl.edu/~webmaster/Learning_Modules/GOV/content/GOV_                     
standingcommittee.html>

VII. Appendix

Map of the Super Brand Mall, Entrances, & Surrounding Area

26
Photo Credit: http://www.superbrandmall.com/info/traffic_en.asp?tag=1

Shanghai Metro Map

27
 Photo credit: http://www.exploremetro.com/static/pdf/en/shanghai.pdf

Satellite Map of Shanghai Road Map of Shanghai

http://www.google.com/images?q=shanghai+maps&oe=utf-8&rls=org.mozilla:en-US:official&client

Jamba Juice T-Shirts for Sale

28
Photo Credit: http://www.shirtcrazy.com/jamba-juice-tshirt.htm

Grand Opening Coupon

29
Sample Advertisement for Line Two of the Shanghai Metro

30