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MGMC01H3 Chapter Notes -Jamba Juice, Meal Replacement, Oatmeal


Department
Management (MGM)
Course Code
MGMC01H3
Professor
Tarun Dewan

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Case 7:
Juice Guys
Abstract
Questionnaires and forms are an integral part of market research as, dependent on the
objective, wording, and desired questions, it provides both qualitative and quantitative data to
help a company make positioning decisions. The way a survey or interview is structured can
influence the candidate’s response and thinking; all the while, these are valuable exploratory
tools to develop conclusions and apply consumer perspectives to a business environment.
Problem Analysis
The following is a problem case to which Juice Guys (JG) must determine an effective retail
concept tailored to Boston residential neighborhoods that would maximize success for the
company. As demonstrated through previous financial records and growth in the West Coast
market, juice and fruit smoothie have thrived as a business. Although there are low barriers to
entry, not requiring large equipment investments, having low start-up costs, and high demand,
this success is predominately limited to the West Coast. Conversely, there is only 1/220 Jumba
retail outlets located in the East Coast. While pursuing expansion in the East Coast it is
important to understand the supporting demographic and environmental reasons via
questionnaires and forms in order to access how JG should target and position their store. In
tailoring the new store to Boston consumers, JG should develop its retail concept complimenting
the specific Boston attraction for NN and addressing the unfamiliarity East Coast baby boomers
have with smoothies. The marketplace evidently varies from the West and East Coast; thus,
JG’s ultimate goal is to identify and understand the East Coast juice market to evolve their retail
drinking experience and better serve its target market for the store to be successful.
Historic Success Analysis
There are numerous overarching associations regarding the term “juice bar” including fresh fruit,
bright colors, overflowing smoothies, humming blenders, and smart eating. In establishing a
new juice bar, these traditional perceptions are useful to abide by as it assists consumers in
understanding the category of the company as well as what it is likely to offer; contrastingly,
utilizing factors that are not in alignment with a customer’s belief may dissuade their acceptance
of the store. Thus, with the design of the Boston retail concept, the essence of fresh fruit, vibrant
colors, and focus for healthy eating should be incorporated. Analyzing external sources through
juice market experts, current competition, and press reviews can help form a general guideline
for the prospective East Coast entrant. The American public is extremely fad oriented so it is
imperative that a strong theme be formed to balance this seasonal affinity by offering a variety
of other products that would not go out of style. With reference to competitors such as Zuka
Juice and Jamba Juice, they offer muffins, cookies, power bars, and bread along with their
beverages. For JG to find continual success during the off-season and increase their offerings
the company should sell other products similar to their competitors including muffins and
sandwiches.
Target Market Analysis
Understanding the features and characteristics about a target consumers demographics
enhances overall store tailoring capacities in terms of spatial arrangement, decided offerings,
hired employees, building location, and promotional activities. With reference to exhibit 1 and
2, outlining the 1 on 1 interview method with 8 employees who possess extensive knowledge of
the NN brand and JG Nantucket store, it reveals that the potential target market is comprised of
athletic, health conscious, 18 to 35 year olds who are well educated, dressed, and possess a
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higher income bracket. It is important to note that the research is conducted based off of the
West Coast NN experts, this may suggest a slight discrepancy in the ideal market when
adjusted to the East Coast. It is projected that the majority will be young professionals and
mothers with children under the age of 7. As a result, the initiated retail concept should address
the needs and wants of these individuals more primarily; however, further analysis should be
conducted for the potential East Coast target market and amend the plan accordingly.
Retail Concept Analysis
While the traditional view of a juice bar is important to maintain as a useful guideline to follow,
consumer demands and tastes greatly change from one demographic to another; doing
appropriate due diligence before entering into a new market or area will greatly increase the
probability of success. In entering the East Coast market, JG needs to understand the Boston
demographic and their taste preferences to better tailor smoothies and store structure to suit
their needs. With reference to exhibit 3, outlining the 1 on 1 interview method with 19
corresponding individuals who fit the predicted description, it produces qualitative information
about a consumer’s expectations and possible concept ideas for the store. As the interview was
structured in a free thinking and laddering way, the responses are more accurate of what the
individual thinks, having less researcher contamination; as well, as per the “Voice of the
Customer” study, the percentage of needs identified from these 9 Beacon Hill individuals are
equivalent to a 48 sample from focus groups. Thus, these 9 Beacon Hill representatives supply
an adequate amount of data about the location specific desires.
1. Designing the retail concept with respect to spatial structure is an influential component
to the attraction of consumers, atmosphere intention, as well as delivery of products.
With reference to exhibit 2, question 13, in building a store, as only 20% of the
consumers visit to enjoy the social aspect, JG should place a limited yet fair amount of
chairs and tables around the store to accommodate these individuals. These lounge
arrangements should not comparable to what one would find at a restaurant but rather
more towards an ice-cream parlor. With the remaining 80% of consumers seeking take-
out means, the store should open and operate several lines for check-out services to
facilitate time efficiency and better customer. During the summer seasons, chairs could
be placed outside to enable consumers to enjoy their drinks in the natural atmosphere.
As several interviewees recognized the need for a smoothie around work breaks and for
convenience reasons, JG could also consider implementing a drive-thru option for car
accessibility and on-the-go young professionals. With reference to exhibit 5a, question
1, describing what the female Beacon Hill resident would expect when entering the JG
store, she suggested that, along with 4 other agreeing individuals, that fresh fruits should
be presented. Thus, when organizing the interior of the store, it would be beneficial to
create the smoothies behind a transparent glass divider with numerous fruits on display
and throughout the store to demonstrate the quality of JG products and position itself as
a fresh and health oriented brand. By showing fresh fruits, consumers correlate the
quality of the fruits towards the taste of the smoothie more positively. Other suggestions
from the listed interviews relative to the design of the store is that large monitors should
be utilized as menus above the ordering counters and should incorporate numerous
images of offerings to motivate customers’ decisions. Therefore, when creating the
menu, along with the list of available offerings, pictures of a favorite or recommended
smoothie should be promoted to increase sampling of varieties and build community
relationship by having the favorites influenced by loyal buyers. Another creative
suggestion for the menu is to adopt the menu chalkboard method as it provides an
apparent statement about freshness. While this is more difficult to adjust and maintain
over the monitor menu, it could be a creative supporting appeal to attract customers by
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