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WIKI ANALYSIS
Jamba Inc is a chain of smoothie restaurants located in Emeryville, California. Jumba Juice has over 700 operations located in 30 states. Over 500 of the locations are company owned and the remainder are franchised. At the end of 2010 Jamba Inc had sales of 263 million [1] As of April 20, 2010, it operated 745 stores locations consisting of 458 company-owned and operated stores, and 287 franchise stores. [2]
History
Company overview
Founded in 1990, 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 December 28, 2010, Jamba Juice had 743 locations consisting of 351 Company-owned and operated stores and 392 franchise stores.[3] They are opening locations in Korea and have one in The Bahamas. 98% of revenue from Jamba Juice comes from company stores and the remaining 2% of revenues are from franchised stores.[4]
History
1990- Jamba Juice was founded by Kirk Perron, along with co-founders Joe Vergara, Kevin Peters, and Linda Ozawa Olds.[5] It was incorporated in 1990 as Juice Club, Inc.[5]
1995- Juice Club Inc changed its name to Jamba Juice Inc. [6]
1999- Jamba Juice aquired all nation wide Zuke Juice Inc. This helped Jamba Juice became one of the best known fruit smoothie chains. [7]
2006-Jamba Juice was aquired by Services Aquisitions Corp for $265 million dollars. The name was then changed to Jamba Inc. [8]
Business Segments
Jamba Inc operates in North America, The Bahamas, and Korea. They have just opened their first location in Korea and plan to have 200 location within the next decade. Jamba Juice currently has one location in The Bahamas.[9] They break their segments into two categories, traditional and non-traditional.
Traditional- Traditional locations are characterized as a business premise that exists primarily as a Jamba Juice store. Traditional stores in the past averaged approximately 1,400 square feet in size. These stores are located either in major urban centers or in suburban strip mall centers [10]
Non-Traditional-Jamba Juice store located within another primary business in conjunction with other businesses or at institutional settings such as colleges and universities, shopping malls, supermarkets and airports.[11]
Product Segments
Jamba Inc offers a wide variety of healthy choice smoothies, as well as teas, Juice, and meals. All of their products follow their philosophy of natural ingrediants with no preservations and 0 trans grams fat. [12]
Smoothies- Jamba Juice offers three flavors of fruit and veggie smoothies. These smoothies are filled with one whole serving of vegetables and two servings of fruit. They also offer fruit and yogart smoothies. The classic smoothie is a smoothie packed with vitamins. They also offer an all fruit smoothie, pre boosted smoothies, jamba light smoothies, and creamy treats.
Juices- Along with smoothies Jamba Juice offers a variety of fresh juices. All of their juices are offered with a shot of something extra that will help you start your day.
Teas and Coffee- Jamba juice offers organic teas and premium coffee blends to their customers as well.
Food- Jamba juice offers a variety of healthy choice foods to its customers such as, yogart blends topped off with fresh fruit. Or, oatmeal, wraps, salads, and sandwhiches. Too top it all off they offer a selection of zero trans fat baked goods.
Competitors
Top three competitors are: Maui Wowi Franchising, Inc. Smoothie King Franchises Inc. Starbucks Corporation.
Supplier Power- Low. Jamba prides itself in serving healthy foods and only healthy foods. They also pride themselves on using fresh fruit. If the the fruit they are currently buying raises in prices all of a sudden then the franchise can just choose to buy its fruit from another supplier. For this reason there isn't really that much power. Plus the store is franchised so every Jamba Juice buys it's products from a different supplier, it's not like they all depend on one.
Buyer Power- Medium. The public is pretty used to it's lifestyle of fast food. Chains like this are based mostly on convenience. Also the fact that this store goes off of a healthy lifestyle, they are going to get a niche market who will support them no matter what.
Degree of Rivalry- Very high. There are a lot of restaurants that sell smoothies and also some that sell healthy food. Because of this Jamba Juice has to work hard to stay ahead of the competition. Usually once a customer chooses a place they like they stick with it. It's just getting the customer to stick with them.
Threat of Substitutes- Low. There isn't an alternative to healthy food or smoothies really.
Threat of new entry- Low. Most of these restaurants are pretty established and have a core customer base who are loyal to their products. The only threat of new entry they have is if an establish restaurant who doesn't sell smoothies decides to add smoothies to their menu.
Swot Analysis
Strengths - They are known for selling healthy products and live up to that expectation. They sell only healthy products, and they showcase they have a lot of knowledge and craft in what they make. These types of places usually get a base crowd of die-hard buyers, and rarely you lose this competition since there aren't other stores like this around. Their products are ahead of the competition and they are a good place to go for somebody who is looking for a healthy alternative to snacks.
Weaknesses - Their main focus is just drinks. People in general don't go nuts over smoothies, no matter how well they are made. Smoothies are awesome to make, and people that make them are the ones who know that they are great products. They may be also the last people to buy smoothies. If you don't get a base-crowd or some type of buzz to get people down on your product, it is very easy for them to stray off elsewhere. Why go to a smoothie type restaurant when you can go somewhere else and get a smoothie and a burger? Another weakness for Jamba Juice is that it doesn't focus its competition on other smoothie makers. It focuses on places like Starbucks and Dairy Queen. They need to branch out and advertise their newly added coffee products. This makes them a company that has products that satisfy all year round, not just during the summer.
Opportunities - You could easily expand in those young professional towns. Small companies like this are very easy to start up and generally succeed. Another opportunity that they ahve is the fact that their product is healthy. By continueing to add healthy items to their menu they will keep a hold on their customer base. They also have the opportunity to make their drinks even more fresh, to get ahead of the competition.
Threat - Bad marketing. You never really hear of them. They aren't in a lot of malls and are never advertised on television or radio. Increased costs of fruit transportation and growing industry. All transportation and agricultural costs are going up. Since you have a franchised menu, I doubt you are getting your fruit products from different places. They should consider to buy local to cut these costs. Over expansion can also take away from the specialty of Jamba Juice.
Human Resources
• Chairman, President, and CEO: James D. White • SVP Operations: Steven A. (Steve) Adkins • SVP and CFO: Karen L. Luey
References
- ↑ http://finance.yahoo.com/q/is?s=JMBA+Income+Statement&annual
- ↑ http://finance.yahoo.com/q/pr?s=JMBA
- ↑ http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-newsArticle&id=1538338
- ↑ http://www.faqs.org/sec-filings/100310/JAMBA-INC_10-K/
- ↑ http://www.gregghawkins.com/a-recipe-for-success/
- ↑ http://findarticles.com/p/articles/mi_m0DTI/is_n9_v25/ai_19892336/
- ↑ freefranchisedocs.com
- ↑ http://www.sec.gov/Archives/edgar/data/1316898/000110465906015960/a06-6826_1ex99d1.htm
- ↑ http://www.bizjournals.com/sanfrancisco/stories/2010/06/07/daily11.html
- ↑ http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTkxODJ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
- ↑ http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTkxODJ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
- ↑ http://www.jambajuice.com/menu-nutrition/product-philosophy
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