Problem Statement and Criteria
Jamba Juice

PROBLEM STATEMENT

In the past, Jamba Juice Company had a primary growth strategy of increasing brand awareness through accelerated franchise development and penetration of existing markets. However, due to increased market saturation, Jamba Juice has had a difficult time competing with other premium quality blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages, and healthy snack companies. From 2008 to 2010 Jamba Juice experienced a negative difference in total revenue of over $80,000. In addition, from 2007 to 2010, Jamba Juice had fallen off the list of one of the Top 50 Quick-Service and Fast-Casual Chains, to 57th in its market segment. This is directly related to a lack of promotions, lack of customer retention, and lack of seasonally appropriate menu items during the cooler seasons. As market penetration continues, solid growth strategies will be extremely important to remain competitive in the market.

CRITERIA

Criteria 1: Increase the percentage of sales during the cold season by 5% over a 3-year period.

Criteria 2: A 5% improvement in customer retention rates over a 3-year period.

Criteria 3: Increase market share by 2% over the next 3 years.
ALTERNATIVES
Alternative A: Develop a product that is desirable to consumers during the cold season.
Alternative B: Enhance the customer loyalty program, offering more incentives to return.
Alternative C: Create and expand on partnerships with places such as fitness centers.
ANALYSIS OF ALTERNATIVES

| Criteria 1: 5% sales increase during cold season | Criteria 2: 5% increase in customer retention | Criteria 3: 2% market share increase | Alternative A: Develop new cold season product | 5 | 2 | 2 | Alternative B: Enhance customer loyalty program | 2 | 5 | 1 | Alternative C: Create/Expand on