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New Product Development

In: Business and Management

Submitted By dorty
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Introduction: The smoothie industry one of fastest growing new business concepts. The fast food industry is growing at an annual rate of 3 percent, while the fresh juice and smoothie sector is growing at an annual rate estimated at 30 percent. Jamba Juice offer customers a healthy, quick service food concept ideal for health conscious customers. Jamba Juice is a chain of specialty restaurants. As the name suggests, Jamba Juice is retailer that sells a variety of different types of juice drinks and smoothies. JJ's goal is to provide customers with a healthy alternative to fast food that tastes great, is convenient, nutritious, and suited for their customers' active lifestyles. Jamba Juice does not sell anything that customers could not make for themselves at home.

With a lot of imitators entering the business, all of whose names began with the word "juice," Perron wanted to distinguish the company from the pack. Moreover, Jamba Juice became a store concept that offered a hipper, festive, more Starbuck-like quality, a decided move away from a bland health store look. The word "jamba" means "to celebrate" in Swahili, and in turn Jamba Juice celebrated a healthy lifestyle. The brightly colored decor of the new stores and the smoothie names contributed to the effort to brand the Jamba Juice sensibility

Perron says. I'm surprised there aren't more companies creating a culture beyond selling, [offering] a soulful experience for the customer. That's been the basis for our success.
BUSINESS CONCEPT:
Jamba Juice is a company that follows on living a balanced lifestyle that integrates nutrition, fitness and fun. Its passion for health and uncompromising commitment to quality are the keys to its customers’ fulfillment and consequently to its success. Jamba Juice is known for their fresh-squeezed fruit and vegetable juice blends that are made on the spot with no additives such as sugars, preservatives, or artificial flavors. The company’s main goal is to augment the daily experience of its customers, its community, and its team members through the life-nourishing qualities of fruits and vegetables.
MARKET SEGMENTATION AND POSITIONING
India is the second largest market for foods and vegetables in the world. The production of fruits account for 48.5 million tones. However, the fruit juice market has not been fully tapped because of poor infrastructure and storage facilities, and highly unorganized market.
However, with people turning more health conscious, non-carbonated beverages have become one of the fastest growing businesses. The major growth drivers in fruit juice market are increase in health consciousness, disposable incomes, and more sophisticated cocktail culture.

Geographic segmentation:
The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkataand Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh,Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar. The growth of the fruit juice market increased with the proliferation of the supermarkets and malls in the metros and mini-metros.

Demographic segmentation:
The regular consumers of fruit juices are children, educated housewives, executives, working professionals, young health-conscious adults and the ageing population. The fruit juice companies have targeted all the age groups by different juices
Fruit juices are an instant source of energy which helped in tapping the sportspersons and kids who are actively involved in sports.The increasing cost of health care has helped widen the customer base to the ageing population. Also, as fruit juices are rich in energy and nutrients, ill and post-surgery patients on liquid diet have increased the customer segment.

Socio-economic segmentation:
The fruit juice market has shown a tremendous growth in the recent years. One of the major reasons for this is the increase in the disposable income.

Psycho graphical segmentation:
Healthy living is a growing trend.However, fruit juices have more to offer than just health. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices is almost an effortless switch compared to dieting or exercising and it does not require major behavioral change. Active and health oriented people are no longer the primary consumer of fruit juices. Nowadays, the consumer base for fruit juices is broader. These products attract a wide range of consumers ranging from those having specific health needs to those simply looking for healthy refreshments. In the next few years, the fruit juice industry will be challenged by these savvy, confident and opinionated consumers. They no longer see these beverages as simple thirst quenchers with health benefits. They see these products serving other needs that fit a simple and logical proposition, such as ease of preparation, high level of availability, ergonomic packaging, portability, and other factors that make up an individual's perception of value.
However, despite of health benefits, some youngsters love to drink only carbonated soft drinks. The increased consumer interests in fruit juices can also be attributed to the addition of minerals, vitamins and herbs associated with health, vigor, longevity and enhanced quality of life,. There is a niche which is now demanding more top quality premium products and produced with added vitamins, minerals, fibs, soy or omega-3. There are niche customers who take juice as a part of their diet and do not bother about the taste.

Demographic:
The brand’s consumer section is broadly divided into two segments. Primary segment:
Consists of children in the age group of 4-12 years.

Secondary segment:
Consists of all adults in section A+B * who love fruit based, non carbonated drinks.
Psychographic:The youth segment was targeted with sub-segments:
Pre-teens (9-12)
Teenagers (12-15)
Above teenagers (16-19)
These are the new impulse category. The sporty and fun- loving nature of the teens and their likings of hanging out together while drinking fruit juices or other soft drinks were taken into account.

•For many consumers, flavor is the deciding factor. While orange, apple andmango dominate the market, other juices such as grapefruit, watermelonand orange-carrot combination are also appealing to some.
Conclusion:
•Product development and positioning will need to become more targeted,shifting from mass market to a mass customized approach in whichparticular audiences are identified by lifestyle, ethnic group and otherfactors. Thus, the fruit market is very lucrative. Among the market drivers arethe increasing cost of healthcare, ageing population, consumer health

PRODUCT

Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non- tangible aspects of the product and service.

Jamba Juice has intentionally kept its product depth and product width limited. It studied the behavior of the Indian customer and provided a totally different menu as compared to its International offering. They continuously innovate their products according to the changing preferences and tastes of its customers. Like recently the launch of Steel cut oats for a quick grab of breakfast.

Philosophy- We believe in good stuff. Balanced diet and balanced life.Natural energy from nutritious ingredients.

Products:- 1. Fresh Fruit Juice and Shots * Carrot Juice * Orange Juice * Matcha Energy Shot - Orange Juice * Matcha Energy Shot – Soymilk 2. All Fruit Smoothies * Five Fruit Frenzy * Mega Mango * Pomegranate Paradise * Strawberry Whirl 3. Probiotic Fruit and Yoghurt Blends * Strawberry Alive * Thrivin Mango 4. Steel Cut Oatmeal * Fresh Banana Oatmeal * Plain Oatmeal with Brown Sugar
The Smoothies and the juices are offered in the three different sizes: Sixteen, Original and Power. They are packaged in glasses with tall domes with the symbol of jamba juice. Amenities like straws, spoons and tissues will be provided. For bulk orders we have cup holders.

PRICING STRATEGIES * Prices in jamba juice ranges from $2.75 to $3.95 so that would mean the price would range from 120 to 170 in Indian Rupees. * We base our prices on the cost of the ingredients , storage facilities( that would include refrigeration),packaging. * Pricing strategy that we use will not only cover up our costs but will also in turn help us achieve our profit margin. * The cost of importing non-seasonal fruits and vegetables will be included.

DIFFERENT PRICES IN DIFFERENT SEASONS
Jamba juice change their prices according to the season. Summer being a good season for beverage industry in India,a slight change in prices will not only increase sales but cover up for all operating costs . But in winter prices are reduced to maintain their sales and profit.

PROMOTIONS

The various promotion channels being used by JAMBA JUICE to effectively communicate the product information are given above. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. There are three main objectives of advertising for JAMBA JUICE are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. JAMBA JUICE does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. JAMBA JUICE is all about helping schools, neighbourhoods and communities. We love to share our passion for healthy, active living through a variety of fun and unexpected fundraising and sales programs

Some of the most famous marketing campaigns of JAMBA JUICE are: * Garden Programs * School lunch programs * School Appreciation fundraising * Community appreciation * Fundraising
JAMBA JUICE –created by nature ,blended by JAMBA understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. JAMBA JUICE continuously does Internal Marketing. This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer.
CHANNELS OF DISTRIBUTION
JAMBA JUICE is a chain of smoothie restaurants headquartered in California with over 700 locations being a booming trend in the states, we plan to start our first outlet in Chennai city and open a retail outlet service by regional warehouses store. Having Chennai as our headquarters we’ll open various branches in the metro cities and conduct negotiations with private parties to outsource distributional responsibility. These regional warehouses and distributional centre will be in turn serviced by our main warehouse situated in Chennai. This move will help us spread our network of outlets across the country. We planned to set up around 200 outlets by 2018. By hiring services will result in cost savings to a certain tune which would be eventually higher as the network of outlets grows.

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