2011

LAUNCHING “JAMBA JUICE” IN THAILAND

BSBMKG516B Profile International Market Prepared by Miss Jirattikarn Chaipattana 8/6/2011

.... Appendix.................................................................................................................................................................................. 2 Miss Jirattikarn Chaipattana Student ID: 20092330 ...............2 Key Challenges and Threats........................................................... 2............................................... 3......................................................................................2 Social Issues........................1 Business Background........................................................ Competitor.......................................................................................... Marketing Mix................................. 8....................................... 4............3 Place...................................................... 8............................................................... SWOT Analysis..................................................TABLE OF CONTENTS 1.............................................................................1 Key Opportunities..... 7...........2 Pricing Strategy..................... PEST Analysis: Issues influencing Marketing Decisions.. Target market strategy... 5........................................................................4 Promotion............ 2..................... 6......................... Product Positioning.............................. 3................................2 Selecting international country……………………………………………………… 2...................1 Product........................................................................................................ 3..... Opportunities and Challenges for Jamba Juice in Thailand...........3 Economic Issues........... 1.................................................................1 Political Issues....... 8.................................................................................................................................................... 8..........................4 Technological Issues................. 3................................. 8...................................................................................................... 1. 3............................................................................................................................................................................................................................................................ Introduction....

nutritious. This association could attract a potential target market in the city: urban businesswomen between ages 25 and 40. brands. The name changed to Jamba Juice in 1995. Two main trends among these women are their need to stay fit and preserve their youth. The Retail and Food Services Business grew by 3. Jamba Juice is one of the top smoothie restaurants in the U. dominates with 65 percent of the international franchising market.1. high-fibered.S. The leadership in the Juice Bar Business which they are rapidly adjusted the strategies in expanding the branches along with implementing several promotion activities and ended the year of 2010. Jamba Juice offers low-fat. and incorporated in 1991 as Juice Club. leading them to consume expensive and unhealthy diet medicines. and innovations offered by U. standards. with over 700 stores in 30 states. As well. lunch or mid-afternoon break. The quality. Jamba Juice was founded in California in April 1990 by Kirk Perron. all-natural and premium wholesome nutrition that helps the consumer keep fit as well as offering an alternative to breakfast. They entered into an operating agreement with Whole Foods in 1997 to sell only "natural“smoothies. The franchise industry is still very popular among Thai investors because it is perceived as an attractive and relatively safe form of investment. business people lack free time to 3 Miss Jirattikarn Chaipattana Student ID: 20092330 . International franchises control 70 percent of the total market.S Jamba Juice would position itself to promote the culture of an “authentic fruitful life”. The U.1% from last year. It is known as one of the leaders in the quick-serve fruit and vegetable juice market nationwide. Introduction Jamba Juice is a dynamic and young company which serves up delicious. We decided to choose to launch Jamba Juice in Thailand because Thailand is one of the most dynamic retail food and drink markets in the Asia-Pacific region. In addition. energizing smoothies and juices. Inc. mainly from the strong branding-building and branch expansion of the Squeeze Juice Bar.S.

S. 1. gives you energy to do the things you love. blackberry-blueberry. The oatmeal is freshly prepared every morning with soy milk and includes toppings such as brown sugar crumble. Jamba Juice was founded in California in April 1990 by Kirk Perron. sorbet. and incorporated in 1991 as Juice Club. They entered into an operating agreement with Whole Foods in 1997 to sell only "natural“smoothies. frozen yogurt. represents a unique mix of Western and Eastern cultures where people generally accept Western culture and welcome Western products in a positive light. nowsaday.have breakfast. we think Thailand’s market value is added despite certain cultural and competitive hindrances. thus providing Jamba juice and opportunity to capitalize into the breakfast market. Thailand. and inspires a balanced life”. It is known as one of the leaders in the quick-serve fruit and vegetable juice market nationwide. chocolate base. Jamba Juice debuted its new organic steel-cut oatmeal in January 2009. In brief. Our target market want convenience and quality. with over 700 stores in 30 states. Mission Statement • Jamba juice’s philosophy is “ what you put into your body feeds your spirit. The name changed to Jamba Juice in 1995." contain another ingredient. apple cinnamon and berry cherry pecan. All smoothies. Jamba Juice uses real fruit and processed fruit juices from concentrate. low-calorie dairy base. nutritious. or soymilk. except for its "All Fruit Smoothies. 4 Miss Jirattikarn Chaipattana Student ID: 20092330 . fresh banana. Jamba Juice is one of the top smoothie restaurants in the U. plain yogurt. Inc. as per the recipe: sherbet. energizing smoothies and juices.1 Business Background Jamba Juice is a dynamic and young company which serves up delicious.

is that authorities are torn between concerns about inflation and fear that the fight against inflation will result in a much higher-valued currency. The impact of tighter monetary policy on inflation will likely come later. 15 in Oregon. Country 2: Indonesia 5 Miss Jirattikarn Chaipattana Student ID: 20092330 . in turn. would hurt export competitiveness and employment in China’s factories.2 Select International Marketing Country Country1: China Economic growth appears that its growth in 2011 will be slower than in 2010 while inflation will actually be higher.• Jamba juice believes that personal well-being as well as the health of our communities and planet Jamba Juice Menu: • • • • • • • • • • • white gummie bear pink starburst chocolate covered strawberry or cherry strawberry shortcake THANK YOU JESUS! watermelon jollyrancher orgasm in a cup smartie butterfinger cherry slurpee cactus cooler Location: • • Over 640 locations operating in 21 states 357 stores located in California. The bigger issue. however. 31 in Washington and New York has 19 1. That.

Core inflation accelerated to 4. Country 3: Thailand The Retail and Food Services Business grew by 3. This upward trend is partly driven by rising international commodity prices.S. leading them to consume expensive and unhealthy diet medicines. Two main trends among these women are their need to stay fit and preserve their youth. brands.64 percent from the 4. allnatural and premium wholesome nutrition that helps the consumer keep fit as well as offering an alternative to breakfast. especially in the infrastructure arena. and innovations offered by U. The leadership in the Juice Bar Business rapidly adjusted the strategies in expanding the branches along with implementing several promotion activities and ended the year of 2010. As well. The impending Land Acquisition Bill will provide the government with the necessary leeway to boost infrastructure spending. Jamba Juice offers low-fat. lunch or mid-afternoon break.1% from last year.S While opening stores in Thailand. The quality. This association could attract a potential target market in the city: urban businesswomen between ages 25 and 40. standards.62 percent pace during the previous month. business people lack free time to have breakfast. 6 Miss Jirattikarn Chaipattana Student ID: 20092330 . relatively high inflationary expectations and strong domestic demand. The franchise industry is still very popular among Thai investors because it is perceived as an attractive and relatively safe form of investment. dominates with 65 percent of the international franchising market.Indonesia has suffered from a chronic problem of government under-spending. The U. Jamba Juice would position itself to promote the culture of an “authentic fruitful life”. International franchises control 70 percent of the total market. which is currently facing regulatory bottlenecks. thus providing Jamba juice and opportunity to capitalize into the breakfast market. mainly from the strong branding-building and branch expansion of the Squeeze Juice Bar. In addition. high-fibered. Our target market prefer convenience and quality.

It continued to gain consumers throughout the years because of its fresh taste. 2. this market includes bottled water. Thailand. carbonates.1% from last year. we think Thailand’s market value is added despite certain cultural and competitive hindrances. coffee shops 7 Miss Jirattikarn Chaipattana Student ID: 20092330 . The leadership in the Juice Bar Business rapidly adjusted the strategies in expanding the branches along with implementing several promotion activities and ended the year of 2010. The expansion of convenient stores as well as large and small superstores. Apart from soft drinks and juices.In brief. The leadership in the Juice Bar Business rapidly adjusted the strategies in expanding the branches along with implementing several promotion activities and ended the year of 2010. concentrates. functional drinks and ready-to-drink (RTD) tea and coffee. represents a unique mix of Western and Eastern cultures where people generally accept Western culture and welcome Western products in a positive light. mainly from the strong branding-building and branch expansion of the Squeeze Juice Bar. whose growth had a significantly effect on the business growth and competition and influenced consumers’ selections as well 2. Nowadays.1 Key Opportunities Thailand Retail and Food Services Business grew by 3.8 million for fruit juice retail business. Apart from juices.Thailand’s fruit juice market is estimated to grow up to $1.2 Key Challenges and Threats The leading companies in Thailand RTD fruit market are Tipco (TH) PLC. which is also part of the soft drink market. Smoothies belong to the fruit and vegetable juice market. The development of the Thailand soft drinks market looks positive. leader image and aggressive marketing. Opportunities and Challenges for Jamba Juice in Thailand 2. Squeeze Juice Bar.

Jamba Juice will use a franchising system in Thailand. Jamba Juice (Thailand) as well as other juice beverage. which brings about several advantages along with some challenges and risks. after the political situation had been resolved. PEST Analysis: Political Influences: • Thailand’s still has a severe political unrest which directly affected the out-of home consumption. it affects the franchisees’ costs to rise significantly. • Stay within the law (being aware of legislation health and safety. advertising standards. Finding reliable franchisees and exercising regular controls on them will represent a big challenge. consumer protection. Business significantly. Big US players such as Starbucks have already gained a solid foothold in Thailand. consumer protection. trades description) • Restriction on imports Economic Influences: • The devaluation of the Baht currency increases the non-Baht denominated franchise fee payments. 3. advertising standards. 8 Miss Jirattikarn Chaipattana Student ID: 20092330 . have to stay within the law and be aware of legislation health and safety. Shifts in consumer preferences of high-protein and low-carb diets as well as the appearance of other healthy beverages could slow demand and thereby impact retail juice and smoothie bar revenue streams. Thus. especially in the Bangkok Metropolitan. trades description. However.also present an alternative to smoothie bars.

Technological Influences: • Advanced in technology change product (freshness) /packaging/flavors Advances in production technology (more efficient + better quality/ less staff required = cheaper for Jamba Juice = cheaper for customers) Improved media/communication internet/mobiles etc • • 4. • • • Exchange rates Taxes (if they go up so will the costs for consumers) Recession (people have less disposable income (prices go up for the company and for thai consumer) Social & Cultural Influences: • There is also a growing interest in healthy foods. If we are able to limit what we consume each day so that we do not take in more than our bodies need. or to enable the body to perform its normal duties. • Consumer habits are changing and new social media outlets are increasing thereby creating many opportunities for both businesses entering the country as well as agencies within the country. people will no longer consume food just to give them energy. Bottled water.• Due to the economic downturn. limits the opportunity for franchise operators to pass on this burden to the customers through price increases. then we have to select things which are actually beneficial for our bodies. in line with global shifts towards Health-consciousness. Existing competitors operating within Thailand 9 Miss Jirattikarn Chaipattana Student ID: 20092330 . juices and energy drinks are becoming increasingly popular. • From now on. the already tight competitive market. People will search for food which takes care of their health better than in the past.

Central World Plaza . luscious fruit . Villa Supermarket in J Avenue .) o 2007: Thailand Juice Bar Awards – Outstanding quality o Target  Core target market aimed at the 25 year old female  Who loves life and is looking for a healthy alternative to fast food! o Strength:  High levels of customer service. homemade yogurt and invigorating nutritional supplements o Target  Male/Female  Teenager/ Office worker  Health conscious / Active lifestyle  Boost Juice Bar o Location: CBD Central Chidlom (G Flr. sorbet . ABAC Bangna and Tipco Tower on Rama 6 Road  Product:  Serve smoothies made from pure juice . Siam Paragon . groundbreaking national and local store marketing programs 10 Miss Jirattikarn Chaipattana Student ID: 20092330 . Squeeze Juice Bar ( owned by Tipco) o Location:  Major Cineplex cinemas .

Focus on healthy attribute of yogurt / change special yogurt every 2 weeks/ Hokkaido origin source of yogurt. Unique flavor: sweet. Celebrity owner image.  YogenFruz o Origin: Founded in 1995 in Canada o No. smooth tart taste & smooth texture 11 Miss Jirattikarn Chaipattana Student ID: 20092330 . Focus on healthy & well being. Real yogurt & all natural. of store in Thailand: 20 o Price: None o Value preposition: Healthy & active lifestyle.  Red Mango o Slogan: Healthy original yogurt ice-cream o Origin: Founded in 2008 in South Korea o 1st operate in Thailand: 2007 o No.  Buddhi Belly o Slogan: Your place for creative expression o Origin: Founded in 2008 in Thailand o 1st operate in Thailand: 2008 o No. of store in Thailand: 12 o Price: Small 100 Baht o Value preposition: First bring yogurt menu to Bkk. of store in Thailand: 5 o Price: Small 55 baht / Medium 95 baht. financial systems and a world class management team. Sophisticated web-based IT reporting. Large: 185 baht o Value preposition: Friendly culture. Décor with comfortable & stylish environment.

high-fibered. Product positioning Differentiation • Uniqueness of Flavor Superior Product Quality Outstanding service with the intimacy Decoration & Interior Design Jamba Juice is an “authentic fruitful life”. of store in Thailand: 5 o Price: Regular 79 Baht o Value preposition: Shaved ice with fresh fruit topping 5. also serve premiere restaurant & hotel o Price: 100 baht o Value preposition: 1st local premium ice cream in Thailand. iBerry o Slogan: Your place for creative expression o Origin: Founded in 1999 in Thailand o 1st operate in Thailand: 1999 o No. Unique Thai fruit flavor .  Ice Monster o Origin: Founded in 2000 in Philippine o 1st operate in Thailand: 2008 o No. of store in Thailand: 13. chic atmosphere. Natural& healthy. warm. Décor: modern. Jamba Juice offers low-fat. all-natural and premium wholesome nutrition that help the consumer keep fit as • • • • Key message: 12 Miss Jirattikarn Chaipattana Student ID: 20092330 .

well as offering an alternative to breakfast. lunch or mid-afternoon break for people with a healthy active lifestyle and who prefer enjoys a cold. healthy drink on a hot day Strategic plan: • • Increase Advertisement and Promotional Budget Expand visibility via “Kiosk” shop type Sales Person communication Communicate brand via premium materials Social responsibility strategy • • • 6. B People with a healthy active lifestyle / Enjoy relaxed social setting Anyone who enjoys a cold. SWOT Analysis: Jamba Juice (Thailand) Strengths • • • Strong Brand Name Locations Healthy Products 13 Miss Jirattikarn Chaipattana Student ID: 20092330 . healthy drink on a hot day • • • • • • 7. Target market strategy • Gender : Female / Male 25-35 Occupation : Student / Employee Educated and devoted to career SES : A.

• • Threats • • High competition in domestic market.• Great variety of choice in Menu -from fresh squeeze juice to 30 kinds of smoothies Weaknesses • • • Stand alone position Expensive Criticized for being less healthy than advertised Opportunities • • Expand distribution into department store. Potential in Business Section. Promotion mix Product strategy: • • Product Positioning: Premium Highest Quality Juice & Smoothie Place strategy: to expand channel distribution 14 Miss Jirattikarn Chaipattana Student ID: 20092330 . • 8. such as Restaurant. Hotel. Global rival such as Boost juice bar (Inter-Brand with sources of Capital) Product depends on seasonal fruits (Discontinuously). Delivery service. Herbal Flavor. (Shop / Kiosk) Service line extension. especially for Health conscious consumer.

Email marketing: By having customers fill out their information every time they purchase a product. This could boost new customers to try out the drinks that Jamba Juice has. If we can stir curiosity in people. These should be distributed close to our store locations at large corporations. Creative strategies such as having inflatable Jamba Juice figures hand out coupons and or testers in financial districts should be done. Print advertisement at BTS stations as well as online advertisement on popular business websites can directly advertise on our store locatio • Direct mail should be in the format of menus as well as promotional strategies like buy 10 get 1 free. face book. Promotion strategy: Advertising: • • Television advertisements should also be made to inform our customers of our product. monthly promotional information on new products or events. • • Internet and Social media i.• Department store. office tower. Event: • Before the stores open we should create a ”hype” and tickle customer curiosity to maximize demand. word of mouth can help us advertise about our product • Special events such as customer appreciation day where the company gives out one free smoothie per customer. Sales promotion: • Buy one get one free Miss Jirattikarn Chaipattana Student ID: 20092330 15 . tourist attraction. Twitter.e.

• • 16 Miss Jirattikarn Chaipattana Student ID: 20092330 .html.euromonitor. March Issue Thailand Board of Investment (2008).aspx?id=96457. Report Buyer. 2011). July 29).ca/ase/5666-eng.jambajuice.org/wiki/Jamba_Juice http://www.careerbuilder.ats.aspx • • • • • http://www. Retrieved on Sept 3.euromonitor. Thailand of Investment: Food Industry Business Monitor International (Q2.portal. From http://www.gc. 2010. Industry Focus.smoothieking. 2010.” Retrieved February 21. Thailand Food and Drink Report Thailand Business News (December 2010).com/portal/default.nzte. Thailand raises minimum wage “US: Jamba Juice Expands.reportbuyer.com/article.justdrink.wikipedia.govt.pdf • • • • Thailand Board of Investment (2011). Smoothie King Expansion Signals International Trend Toward Healthy Living. B.com/food_drink/dairy/us_smoothies_market.com/watch?v=_BbL9H7ZwjQ http://aol. Euro monitor International." (2010).com/Jobs/Company/C8C7566808BZBHD3KHV/JambaJuice/?cbsid=0f3425d3a0c54e27a67097a2a3a69ade-248465876-RG4&&cbRecursionCnt=1 • • http://www.htm http://www.com/ http://en. Retrieved April 14.com/ • • Consumer Trends “Non-Alcoholic Drinks in Thailand” December 2010. 2009 from: http://www.com/ice-cream-in-thailand/report http://www.Appendix: • Williams. "Fruit/Vegetable Juices in Thailand. from http://www.youtube.nz/explore-export-markets/market-research-byindustry/Food-and-beverage/Documents/Thailand%20Food%20and %20Beverage%20Market%20Profile%20-%20June%202011.agr. Retrieved February 20. (2009. 2009 from: http:www. US Smoothies Market.

February 22) Processed and Packaged Goods Industry.yahoo.com/assets/Dcom-Global/Local %20Assets/Documents/Deloitte %20Research/dtt_dr_apeconoutlook_june2011. February 22) Jamba Juice Stock Page.deloitte.com/q/in?s=JMBA • http://www.pdf 17 Miss Jirattikarn Chaipattana Student ID: 20092330 .com/q?s=JMBA • Yahoo Finance! (2009.com/reports/603052/executive_report_on_strate gies_in_thailand • • Reports – Consumer Lifestyles in Thailand http://www. 2009 from: http://finance.• Yahoo Finance! (2009.yahoo. 2009 from: http://finance. Retrieved February 22. Retrieved February 22.researchandmarkets.

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