Praxis Business School, Kolkata

Assignment No.-1
Just Chill Blends: Go or No Go
A report
Submitted to
Prof. Charanpreet Singh and Prof. Shahida Hussain
In partial fulfillment of the requirements of the course
Managerial Communication
On 30th September,2022
By
Priya Agarwal
(BM22048)
LETTER OF TRANSMITTAL

Just Chill Blends

Date: 30th September,2022
To: Prof. Charanpreet Singh and Prof. Shahida Hussain
From: Priya Agarwal

Subject:
I am enclosing my report on

PRIYA AGARWAL
Executive Summary

Word Count:
 Table of Contents
SERIAL NO. CONTENTS PAGE NO
1 Situational Analysis
2 Problem Statement
3 Options
4 Criteria
5 Evaluation of Options
6 Recommendations
7 Action Plan
8 Exhibits
Situational Analysis

Just Chill Blends biggest obstacle was distribution and

investment. Large distributors didn’t have any interest
in a low priced product as it was a unknown and
undercapitalized startup. JCB is experiencing a liquidity
crisis with limited resources and had no chance of
finding a bank willing to loan them money. So, to
increase their capitalization they decided to increased
the average alcohol by volume (ABV) from 8% to 14%,
which was higher than any of the alcoholic beverages
in the competitive market and proposed a new
product, named, Complete. Consumption of the
unidentified alcohol and more amount of caffeinated
alcoholic beverages made drinkers more likely to
involve in illegal activities, traffic accident injuries and
deaths. So, by seeing this problem, JCB’s announced to
create a new section to educate their consumers.
Problem Statement

Food and Drug Administration (FDA) issued a formal

warning letter demanding the correction of the
product. So, they quickly withdrew their caffeinated
alcohol products without any protest. This led them to
take a decision to make a call- Go or No Go.
Options

 Launching a new energy drink with a new

brand name.
 To avoid the FDA lawsuits completely.
 Decreasing the alcoholic content from the
energy drink.
 To educate and create aawareness among the
consumers on unhealthy consumption.
Criteria

The sales of ‘Complete’ increased by 150 percent to

5,00,000 units and in the second year, sales went to
7,50,000 units. Complete become the second highest
sales growth in the beverage industry. The net worth
of JCB partners grossed more than $2 million, which
was a huge success for the company. JCB also
discussed expanding sponsorship of low-cost events.
 Evaluation of Options

OPTIONS PROS CONS

Launching a new Gain the trust back This will hamper
energy drink with a of the consumers the brand value of
new brand name by launching a new the company,JCB
product with because launching a
appropriate new product will
content of alcohol prove that the
and caffeine. company is trying
to rectify their past
product failure. This
will create a huge
financial burden on
the company.
To avoid the FDA This will create an
lawsuits completely image that the
company has not
done anything
 wrong

Recommendation
Action Plan
Exhibits