Healthy drinks, and energy drinks, are the latest upward trend in the beverage industry. As a prime example of this push, California-based Jamba Juice is no longer content to be sold in stand-alone stores, grocery stores, and convenience stores, and is now expanding its presence into schools. The company is adding its smoothie machines and know-how to promote healthier options for students dining. The company is testing kiosks in 30+ elementary and secondary schools, and plans a major push into more U.S. schools by year-end.
Jamba Juice is also expanding beyond its traditional strengths in smoothies by adding oatmeal, flatbreads, and teas to its product offerings. Additionally, it has entered global markets including the Philippines and South Korea.
The company faces tough competition. Starbucks Company recently acquired Evolution Juices which it is selling in its coffee stores in addition to new, stand-alone Evolution stores. As the industry leader, Starbucks plans to expand new products offered both in the U.S. and in other countries. Starbucks will enter the Asian market in India later this summer.
Group Activities and Discussion Questions:
- Show the CNBC video with Jamba Juice CEO James White and discuss key points.
- Have students discuss what is happening in the areas of energy and health drinks.
- Starbucks, Red Bull, Jamba Juice, etc.
- Can these brands expand their market share in the U.S.?
- Can these brands expand globally?
- What are considerations for Jamba Juice to expand into new markets and cultures?
- Does the recent push into school systems make sense for Jamba Juice?
- Can other companies mimic this new market push?
- Have students bring up the company Web sites for Starbucks, Caribou Coffee, Evolution drinks, Jamba Juice.
- Review the sites and marketing messages.
- What strategies are these companies pursuing?
- Have students develop a marketing strategy matrix for the companies.
- Build 4-square grid: Current and new products, current and new markets.
- Have students develop a SWOT analysis chart for the firms.
- What are the strengths, weaknesses, opportunities, and threats?
Source: Brandchannel.com, CNBC, 3/29/12