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Jamba Juice Company is a company that has headquarters in Emeryville, California. It consists of chains of smooth restaurants with over seven hundred locations operating in thirty states, which are, the Bahamas, Canada, Korea and Philippines. The company owns more than five hundred location while the other locations are franchised. The company founders are Kirk Person, Joe Verger, Kevin Peter and Linda Ozawa. (Claire 2000)
Service Design for Jamba Juice Company
A service design refers to planning and organization of individuals, infrastructure, and material and communication components of the service in order to ensure an improvement in the quality and the relationship between the service provider and its customers. (Winder 1993) Design of the service design must meet customers’ or participants’ needs, so that to ensure it is user-friendly, relevant to customers and competitive.
Services Offered by Jamba Juice Company
The company specializes in selling the following goods and services to its customers; selling of smoothies, fresh- squeezed orange and carrot juice, selling of wheatgrass juice shots. It also sells Jamba juice, which is a substitute for coffee. Jamba Juices Company also sells boosts with dietary supplement. Jamba Juice smoothies’ can be modified from their standard recipe. Therefore, customers are able to substitute ingredients after removing them. Customers pay more attention to the quality of services provided to them than the prices offered for a product. This applies to both intangible and tangible service providers (Arlen, 2008). Customers consider five main dimensions in evaluating the quality of services provided to them. These dimensions are; reliability, responsiveness, assurance, empathy and tangibles. The effective provision of all the five dimensions enables the service providers manage to gain loyalty from its customers. Jamba Juice Company applies the following dimension as discussed below. (Claire 2000)
In the provision of services, manager recruits a team of staffs who are conversant with techniques of service delivery and have the ability to solve customers’ problems in cases of any queries. This ensures reliability in the service delivery. Jambo Juice Company proves this by ensuring that it has adequate and qualified work force, which is capable of taking care of its customers’ need. The company also ensures that raw materials are constantly supplied for use in the preparation of its products. Therefore, the company meets its customers’ needs. (Wilson, 2011.)
The responsiveness, which is also; a service quality dimension, refers to the ability of a service provider to react to a need of a customer (Winder, 1993). According to Debra Wilson, the responsiveness of Jamba Juice Company is remarkably high. Attendants escort customers to their sits on entering the Jamba juice companies’ retails outlets. Immediately after taking their sits, the service providers take their orders. To allow personalization of the services delivery, it should be designed in a flexible manner. The company uses the transparent glass in designing all Jamba juice outlets. Therefore, customers are able to watch employees prepare their meals. This builds a loyalty among customers after gaining trust on how the meals are prepared. SERVQUAL model specifies that a service provider can acquire the high service quality by showing their expertise to their customers (Arlen, 2008). Jamba juice plans to show its expertise to its customers by using the classy architectural design of its retail stores.
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The Competitive Strategy Used by Jamba Juice Company
A strategy refers to a plan designed or adapted so as to achieve an objective. Different organization in an industry use different strategies, for a company to choose a strategy so as to compete with its competitors it must take its main objective into consideration. It should also have knowledge of its competitor’s strategy in operation of its business. The Jamba Juice company uses foreign expansion and licensing strategy to compete with it competitors. In the year 2009, the company realized that it was not able to maximize it profit by increasing its company owned location. Therefore, it concentrated in its growth of franchised operated stores and licensed consumer product. Adaptation of these two strategies contributed to a higher return for the company. The company management objective is to open more than 50 new locations in the USA; most of the locations would be franchised-operated. The company is currently operating in two foreign markets only. It has seven locations opened, and most of them are situated in the South Korea. In Korea, the company is targeting two hundred locations in duration of ten years. The company has also partnered with other companies from different countries. Like in Philippines it has formed a partnership with Max’s Group, in Canada it is in partnership with Canada Juice Corporation. The company is targeting 80 shops in Canada and 20 shops in Philippines in ten years. Nestle is also a partner to Jamba juice company in the energy drink market. This market presents $8.5 billion in the total market of the company. (Winder 1993)
On the other hand, Jamba juice uses licensing strategy, and it now has an agreement with Zola in the ready-to-drink beverage segment. Estimates show that this will represent a $3 billion total market for the company. Jamba juice CPG licensing income grew from 78,000 in 2010 to $425,000 in 2011. This is mainly contributed by the fact that nine of the Jamba juice licensed products are commercialized. The company is also working on adding other products.