Social: People want to eat healthy nowadays; this can be a good opportunity to advertise and market Jamba Juice in a healthy way so it can increase the sales. People have realized the link between eating poorly leading to face diseases. Jamba Juice is likely to benefit from this, if they can keep doing what they are by reducing non-healthy food intakes. (Burnette, Margarette) Fast food has been growing and getting “healthier” as well, that is a positive for Jamba Juice since they sell snacks as well as smoothies and juices.
Ecological: Global warming can have an impact on Jamba Juice. This means there might be a change in increase of temperatures in the atmosphere, which may lead to increase demand for Jamba Juice products since Jamba
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(Financial Alchemist)
Substitutes: This is a huge factor in the industry. There are substitute for food and even restaurants. Since Jamba Juice offers drinks these can be substituted with soda or alcohol, or even the same juice from one of Jamba Juice’s competitors. Competition also plays a role in the price of the product. If competition increases, price can decrease. In another words, substitution is available. Buyers would face no uncertainty when switching to different product. Substitutes satisfy price and value. (Financial Alchemist)
Buyer’s Power: Jamba Juice often deals with small individual target market of customers; hence the power of the customer is quite low. The customers have limited ability to influence the pricing of the products. The customer is always are of existence of competing and substitute products and they also keep in mind the price of the products. If Jamba Juice decreases their operating cost, this might help them decrease the prices for the products. (Financial Alchemist)
Supplier Power: Jamba Juice supplier power is quite low because the company gets all the fresh fruit and vegetable from any companies which are geographically dispersed. There is a low switching cost, and some suppliers exert greater influence than others.(Financial Alchemist)
Segmentation, Targeting, and Positioning:
Jamba Juice targets and segments to young middle and high class consumer. This customer has to have high disposable income, so
Supplier Power. With a vast variety of products available to Lowe’s, the supplier power is low. Lowe’s can choose from different vendors the products mix that differ from their competition. In addition, entering contractual agreements with vendors helps in lowering this risk.
Since there are many stores, like McDonald’s and Starbucks that are also providing all kinds of healthy smoothies with a price that is similar to Jamba Juice’s, buyers actually will not face high switching costs. Therefore, low switching costs enhance the bargaining power of buyers.
For the industry, suppliers have a moderate level of power, as they are able to switch distribution channels quite easily; such as Country Road's change to Myer after 30 years with David Jones. Suppliers can also become self sufficient by selling online. For David Jones' sector, supplier power becomes lower. Suppliers battle with each other for exclusive placements in high end stores, and stores such as
Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.
First, the strengths are that the overall design, “the creation of the smoothie and juice names, and distribution, was done with multiple stores as the goal.” (Pg. 2) This business model differentiates them from the competition because instead of offering the same flavors, juice names, design, and distribution to all of the locations it is determined by a section of stores rather than the entire market. This tactic allows their business model to be targeted for a specific demographic depending on the external environment.
The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at
Suppliers have less power because there are a lot of suppliers and they all willing to accommodate and provide discounts for their customers (economies of scale).
In the following analysis, we will first identify the key issues that Sunshine needs to tackle. We will then evaluate the current market conditions of the manufactured juice industry, Sunshine, and its competitors. To find a suitable market match for Sunshine, we will look into the behavior and characteristics of orange juice consumers. Afterwards, we
The article stated that, “many East Coast baby boomers were wondering, “what’s a smoothie?” (Fox & Rushmore, 1999, p. 4). This statement not only indicated that people in the East Coast were not aware of this new juice trend, it also stated that “consumers’ demands and tastes can greatly change from one demographic to another” (Fox & Rushmore, 1999, p. 4); whereas allowing Juice Guys the opportunity to sell more than just juice and also resulting in Juice Guys indentifying between the ages of 18-35 to be their leading influential target market.
End users are those individuals walking in the company stores, ordering a smoothie and a cookie, paying the cashier and then telling her friend how wonderful the ambiance is. This buyer segment does not purchase large amounts of product at one time and likely chooses Jamba because of the quality of the ingredients. With no switching costs and a growing industry offering many options, patrons of smoothie cafés can freely purchase their delightful cool beverage anywhere. According to the U.S. Census Bureau the number of stores within the “snack and nonalcoholic beverage bars” industry grew from 36,036 in 2002 to 49,463 in 2007 [ (U.S. Census Bureau) ]. This trend means that Jamba Juice will have to increase customer loyalty to battle the increased competition.
Buyer power: The consumers have a high decision power which can drastically affect the performances of Brita. Depending what type of drink
Innovation is important to both distribution channels, but more important to the finished goods model since the juice category has seen a decrease on both volume and market share. At the same time the carbonated soft drinks market has grown in both volume and market share. In order to increase the volume sold in the juice aisle a brand extension should be developed. By adding more SKU’s and promoting to the eight to twelve year old group, sales
Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.
Supplier Power: This highlights that it is easy for suppliers to rise up their prices. This is determined by the number of suppliers, the uniqueness of their product, their control over the buyer, and the cost of changing from one buyer to another. The scarcer the supplier choices you might have, and the more you need the help and that
Figure 1 demonstrate that when Coca-Cola price goes down from $2.00 to $ 1.50 the demand of quality rises from 4 to 6. When Coca-Cola wants to get their consumers attention price is no the only factor that matters and sure it doesn’t determinate how much people will pay for the product.