Implementation, Strategic Controls, and Contingency Plans

Jamba Juice is a leading restaurant retailer of better-for-you food and beverage offerings, including great tasting fruit smoothies, juices, and teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and California Flatbreads(TM), and a variety of baked goods and snacks. As of April 19, 2011, Jamba Juice had 741 locations in the United States consisting of 434 franchise-operated stores, 307 Company-owned stores and two international stores

2 IMPLEMENTATION, STRATEGIC CONTROLS, AND CONTINGENCY PLANS (JambaJuice). Through the preparation of juices, smoothies, and baked goods, Jamba Juice brought to the fore a company that presented a collection of the freshest products at reasonable costs with courteous and learned employees. This paper will discuss the implementation, strategic controls, and contingency plans for Jamba Juice. Implementation Jamba Juice will be carrying on the extending of their company to realize goals of providing fresh tasty products to their customers with exceptional customer service to be a winning organization. Jamba Juice has the potential to let their products and service embrace the retail juice market and establishing advantageous modifications to be able to grow and expand locally and internationally. A step in the right direction to attaining this effect is to continue building a strong customer base and achieving utmost knowledge of the juice market. Jamba Juice wants to eliminate all obstacles that are hindering sales and to advance the satisfaction of the customers. The major obstacle at this time would be the collecting of data from customers to be able to better understand the type of products that are needed in different environments or markets. With consumers becoming more interested in their health and what they consume, a connection is therefore present in what they consume and how much they are willing to pay. This leads Jamba Juice to be mindful of the type of produce they require to fulfill the customers needs, such as fresh fruits used in the preparation of juices and smoothies. With being at the top in their industry, Jamba Juice needs to be mindful of the struggles that landed them there. To further achieve their goals and aspirations, Jamba Juice has to now incorporate the power of their customers by giving customer rewards or discounts and to introduce programs that bring new customers to their stores leading to increased visibility and

3 IMPLEMENTATION, STRATEGIC CONTROLS, AND CONTINGENCY PLANS increased profits. Through these pursuits Jamba Juice would maintain customer dedication which leads to an objective of the organization of having customer satisfaction. It is known that customer satisfaction has an effect on all organizations in terms of regular repurchasing and free personalized advertising and recommendations to potential customers. Seeing that Jamba Juice is a relatively profitable organization, not much therefore needs to be changed or enhanced. They would however benefit if they stayed on top of industry changes, changes in technology, and changes in the seasons to add novelty items to their menu according to seasonal fruits. Jamba Juice is in the business of fresh juice and smoothies so therefore the need for inventory is very limited. What they require is a stable and efficient supply chain to keep their products fresh. Jamba Juice has been able to provide quality products and maintain growth with the faithful customers they have along with convenient locations. Location goes a long way in the success of any organization. Locations that are in close proximities to malls, gyms or large housing developments are ideal for customers to assemble and have a convenient drink or snack. We are in the age of the Starbucks craze and having a Jamba Juice offering the same atmosphere would help in attracting customers. In establishing a value for the product provided Jamba Juice must look beyond the cost of the service and also take into account the endorsement of the customers. Jamba Juice will want to verify the acceptance and wants of the customers to determine the worth or value in products offered leading to survival and differentiation from the competition. With the commencement of the customer rewards and discounts Jamba Juice will have a customer foundation embracing and dedicating themselves to the Jamba Juice brand.

4 IMPLEMENTATION, STRATEGIC CONTROLS, AND CONTINGENCY PLANS Strategic Plan As was noted before, Jamba Juice should use the fact that they dont require much inventory to remain competitive in the market. With this in mind and the struggles to get to the top of their industry, Jamba Juice should carry on the winning approach of meeting the consumers wants and openness to suggestions and modifications requested by the consumers. These suggestions and modifications will be unique to each location and the catering to customers wants will lead to a repeat of paying customers who are happy with product and service. The contentment of customer and a friendly atmosphere to assemble will also lead to customer satisfaction. As mentioned before, with the reward and discount program, Jamba Juice can also use mailers, local ads, and community projects to attract new customers while retaining existing customers. In retail fast food businesses, placement of the personnel with the required skills for their position is very for the success of the organization through customer satisfaction. A key point for managers, are to identify capabilities to meet the consumers needs. This along with the knowledge of the community and the understanding of the culture of the community will be a good ingredient for success. Financial Factors Key factors to the success of Jamba Juice will be determined by their budget, a forecast of the financials and the ability to meet and exceed their break-even point. According to Adweek.com, The chain, best known for its smoothies, will distribute 30 million Feel Good Bucks through street teams, direct mail, brand partners and online. Recipients must bring their Bucks into Jamba Juice shops to learn the value, which ranges from $1 to $10,000. The Bucks are good for $1 to $25 off food purchases and larger cash prizes. The promotion runs Oct. 5 through Jan. 4. The ad spend is a significant change from last year when

5 IMPLEMENTATION, STRATEGIC CONTROLS, AND CONTINGENCY PLANS Jamba spent just $1.5 million in measured media, according to Nielsen Co. That figure does not include Internet advertising (Adweek.com). According to Jamba Juice, The Company continues to expect to achieve the following results for its fiscal 2011: Deliver positive company-owned comparable store sales of 2-4%; Achieve Adjusted operating profit-margin of 18-20%; Develop 50-70 U.S. locations in traditional, non-traditional, and express franchise formats; Maintain general and administrative expenses, in dollars (excluding litigation charges and other one-time expenses), consistent with 2010 levels (JambaJuice). In terms of a break-even point for Jamba Juice, an estimate of figures per store is used: Total fixed cost of $80,000.00 Unit price per item of $4.50 Unit variable cost of $2.50 Which gives a break-even point of 40,000 units or $180,000.00.
$100,000 $80,000 $60,000 $40,000 $20,000 $0 ($20,000) 0 ($40,000) ($60,000) ($80,000) ($100,000) 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 TFC TVC TC

Break-

40,000

Break-

$180,000

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Even Point (units) = Total Fixed Costs Variable Cost per Unit Sales Price per Unit TFC = VCU = SPU = $80,000 $2.50 $4.50 Formulas: BEP (units) = TFC/(SPU-VCU) BEP ($'s) = BEP (units) * SPU Even Point ($'s) =

Contingency Plans Promotions, reward programs and how they are conveyed to consumers will be of utmost importance to Jamba Juice. Jamba Juice is dependent mostly on returning customers each day and any cost linked to retaining said customers would be deemed as a long term investment. Given the nature of the business, drastic change is not necessary so the contingency plan would be basically an upgrade of technology, equipment, and enhancement of customer service. The key factor would be to find out the changing needs of the consumers and along attracting new customers this will augment the components to be profitable in an ever changing market place. To get the proper feed-back and attract new customers, there will be the need for customer feed backs, in-store fliers, direct mailers, and ads in the local papers. Jamba Juice needs to take advantage of their faithful and loyal customers being their primary concern for their business. As the company grows more focus needs to be placed on technical knowledge, which will be a supplemental gain to advance efficiencies, produce portions, and staff. Presently Jamba Juice hardly uses technical knowledge in their work environment and they are still able to function efficiently and profitably. This advance in technical knowledge can become a value added to the company as the company grows and the consumers increase to somewhat unmanageable amounts. Conclusion

7 IMPLEMENTATION, STRATEGIC CONTROLS, AND CONTINGENCY PLANS If the proposed implementation, strategy, and contingency plans are followed Jamba Juice will have continued success in the retail juice market. With the recent downturn in the economy Jamba Juice was able to maintain profit and growth using their current strategy and with minor adjustments they are certain to continue in the same mold.

Reference ADWEEK: Jamba Juice Juices Up Its Budget For Promotion. Retrieved June 27, 2011 from http://www.adweek.com/news/advertising-branding/jamba-juice-juices-its-budget-promotion105880 Jamba Juice Corporate: Investor Relations. Retrieved June 27, 2011 from http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-irhome

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