Sunshine Juice

Thirdly, Trader Joe’s stores are small and located in non-prime locations, which holds fixed operating costs at bay. Furthermore, the company is able to generate the industry’s highest sales per square feet in its small sized stores. In an effort to diversify from its competitors, Trader Joe’s also relies on a non-traditional marketing strategy. Completely neglecting conventional marketing techniques like commercials or promotional offers, the company focuses on unique and store specific in-store marketing with its newsletter and the occasional radio ad being its major means of communication with its customers. The Trader Joe’s brand with its vast fan base is naturally another part of the company’s competitive advantage.

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.

One of Trader Joe’s competitive assets is their business model. They open small stores that give their customers a neighborhood feel. Analysts have found that the chain sells almost twice as much per square foot as its main competitor, Whole Foods (INVESTPOEDIA, 2016). This unique strategy allows consumers to view and choose more products in a given area, therefore making them more likely to find what they are searching for. This strategy is sustainable if Trader Joe’s continues to operate in this manner.

There were also reports of a generally unsatisfied and unproductive sales force, the root cause of this is a lack of job specialisation. The sales force is organized geographically with each employee controlling their own territory, however, each employee is responsible for selling both beer and juice within that region. Furthermore, most of the sales staff where already employed by Cerjugo before the acquisition of the juice business, accordingly despite being trained to sell juice as well, the sales force is more experienced and comfortable selling Beer and this has bred a lack of motivation to gain the expertise necessary to successfully sell juice to their clients.

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.

Due to globalization and this fast-growing business environment, firms struggle to earn above-average returns. They strive to establish a competitive advantage in order to earn higher returns. It is not enough for firms to establish a competitive advantage, they should also figure out ways to sustain it. There are several factors that can affect the competitiveness of a firm including customers, suppliers, existing rivals, new entrants, and substitutes. Firms should take into account these factors in order to sustain their competitive advantage. This paper analyzes Yoffie 's (2009) Cola War case, assesses concentrate producers, bottlers, and retailers in terms of Porter’s (2008) five forces of competition and provides recommendations to Coca-Cola.

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

According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.

With having only one of “The Four Ps,” (the place), Juice Guys had to come up with a marketing plan to develop the other three Ps; which were of product, promotion and price. Juice Guys knew they wanted to sell fresh juices and fruit smoothies; however, they needed to know if the consumers wanted more than just those products. Also, they needed to find a way to promote their new products and make their prices economically feasible for the consumers in this new place; which was Boston. In order to accomplish this, they needed consumers to let them know what they thought was the ultimate juice shop.

Pepsi’s has a large number of product lines and brands and thus the prices are considerably varied. Their main pricing strategy is based on the Market-Oriented pricing strategy to ensure that its prices are competitive as compared to the competitor’s prices and market conditions. Pepsi also used

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.

For supermarket and restaurant chains, the sale typically is made to the purchasing department/buying division of the retailer. These sales often involve a significant amount of field testing by the direct sales force, giving Tasteless a competitive advantage. Tasteless heavily advertises its products in trade magazines and attracts individual sales through advertising in media such as health care magazines. Individual clients include CEOs of Fortune 1000 companies, as well as individuals from coast-tocoast. Management’s objective is to establish Tasteless as the most recognized and respected tea brand in the U.S. market, eventually supplanting Lipton Tea as the market leader in tea brand recognition and tea sales in both the higher-end and lower-end tea markets. While Tasteless currently is experiencing some sharp growing pains, the good news is the growing interest in different types of non-traditional beverages, combined with increasingly health-conscious baby boomers and younger adults. These factors have tripled sales over the past five years ending December 31, 2008. At the same time, new local and regional competitors with a bevy of new products are offering fast delivery from local production centers and in some cases lower prices, challenging Tasteless for retail shelf space. Without this shelf space, especially in supermarkets, Tasteless’ tea products cannot be retailed on a volume basis. Tasteless has

Ruby red grapefruit is one of the most sought after fruits on the market today because of its health benefits and potential weight loss properties. It is widely publicized for the benefits of weight loss as well as the nourishing supplements it offers the body. The increased demand for ruby red grapefruit has caused an increase in supply and demand which has had a positive effect on the market. Increased demand for ruby red grapefruit can also negatively effect the market because it gives the supplier an opportunity to increase the cost of the product. No matter how high the price may be, consumers will always purchase a product that implies it has positive health benefits. If the demand for ruby red grapefruit decreased due to other healthy alternatives with the same or better health benefits, the supplier would lose money and the demand and supply would significantly decrease.

2.2 Market Analysis2.2.1 Definition of MarketThe market Nudie will be competing in can be examined on three levels; the first outer level can be defined as the food and consumer staples market, the second is the beverage market and finally, the third and most closely related market segment - the fruit beverage market. Within the fruit beverage market, Nudie is positioned as a niche product whereby the target market are willing to pay a premium for a better quality and pure freshly squeezed juice without the addition of water, preservatives, additives or sugar (Nudie 2008).

Direct competition of Tamarin Juice Bar are other juice and smoothie bars. The density of those places in Jacksonville is rather low. However, the indirect competition is way larger with basically every restaurant, retail store, or beverage company that offers juices and smoothies. Due to the indicated recent trends the amount of those competitors is increasing, as can be seen by