Ibus2301 Boost Juice

Boost Juice

Main Idea: * Obesity and health issues are becoming issues for all countries, and companies in the Wellness Category are seeing massive growth * A alternatives of the quick hamburger(a healthy fast food alternative) * Dan Titus, Director of the Juice and Smoothie Association stated. “The Juice and Smoothie business is such a lucrative venture. Smoothie-type products are sold all over the world on cruise ships and golf courses; in bars, movie theatres and hospitals. Companies are seeing this market as a growth opportunity. Consumers are looking for an alternative to soda; the healthy attitudes that consumers are expressing reflects in the smoothie trend.

Competitive advantage: * Unique formula * Janine consulted with nutritionists and naturopaths to create a menu of healthy juices and smoothies that were free of preservatives, artificial flavors and colors. * Her range of TD4 low fat frozen yoghurts used in the smoothies contain live cultures streptococcus thermophillis and lactobacillus delbruekil for added nutritional benefits

Strategy: 1. Complementary Products
As well as our fabulous drinks, we also sell a range of healthy snacks including wraps, fresh yoghurt, fruit, muesli bars, banana bread, as well as bottled water & reusable Boost Mugs!

2. Supermarket Range
Boost introduced a new range of bottled juices, frozen yoghurt and healthy snacks readily available at supermarkets.

3. Support the improvement of environment to achieve the social position

Global: * One store in Adelaide has grown into 187 stores throughout Australia and 47 stores overseas. 1) In May 2010, US based private equity firm, The Riverside Company acquired a major stake in the Boost Investment Group.
Moving forwardAfter Janine’s plans for global domination took off, she decided to form the Boost Investment Group (B.I.G.) for further ventures in Australia. B.I.G.’s first acquisition is Mexican food outlet chain Salsa’s. BIG and Salsa’s are now expanding throughout Australia, with 12 stores already taking the Salsas message to the people!

Boost Juice Bar is a new style retail that specializes in selling fruit juice which flaunt on Healthy diet and emphasize the products is free of preservatives, artificial flavors and colors. Boost Juice Bars was formed in 2000 with the first store located in Adelaide. Through the franchising in these few years, the company has expanded internationally in Asia, Europe, Russia and the Middle East. Obesity and health issues are becoming international issues, and companies in the Wellness Category are seeing massive growth. The main strategy of the company is going to monopolize the fast food market by providing a healthy alternative. Boost Juice Bar has unique formula consulted with nutritionists and naturopaths to make the juice and include TD4 low fat frozen yoghurts used in the smoothies contain live cultures streptococcus thermophillis and lactobacillus delbruekil for added nutritional benefits. Except the normal juice and smooth, the company also sells a range of healthy snacks to increase the purchasing behavior in order to increase the market competitiveness. In 2000, the first store opened in Adelaide. After few years, one store in Adelaide has grown into 187 stores throughout Australia and 47 stores overseas.

For future international development, Boost Juice Bar collected the funds in May 2006 through sold the stores in New Zealand to Tank Juice who are now operating them under the Tank brand after the franchisers was put into liquidation. This is a simple Retrendnment Strategies. It was a right chose to give up the development in New Zealand and fought into a new market.First, New Zealand is not an agricultural country. Although the highly mechanized agriculture has risen the total output, but the food are also need to import from other countries, cannot be self-sufficient. It means the margin cost would be increased. Next, New Zealand is a country with high standard of living, the New Zealand’s HDI (Human Development Index) is sixth on the World in 2013.This mean the cost on labour market and store will be very high. Even if the price adjustment can make up to the revenue margins, the high tax in New Zealand will also affect the net income. In summary, the external environment in New Zealand gave a high economic pressure on the company expanding. Lastly, Boost Juice Bar didn’t provide many choices of healthy snacks during that time and the culture of Healthy diet was not popular, people would likely to buy the quick hamburger. The market was small and had high completed with local brand in New Zealand. Therefore, Boost Juice Bar chose to fight the market in United Kingdom.

In 2007, Boost Juice Bar successfully entered into the Catering market in United Kingdom through franchising with the founders of Millies Cookies, Richard O’Sullivan & Mario Budwig.
This is a good co-operative strategy to draw support with Millies Cookies’s impact force in United Kingdom. Millie's Cookies is a historic brand in UK with chain of 108 retail bakeries. The strong financial base can help the Boost Juice Bar quickly expand in UK. This can reduce the risk of Boost Juice Bar from high expanding operation. It is a good choice to select Millie's Cookies to be the only franchiser in UK; Millie’s Cookies have a wealth of experience of creating best in class food and beverage retail brands. As a historic food and beverage retail brands in UK, Millie’s Cookies would have many often co-suppliers that can buy the raw material with cheapest price. The main idea of this cooperation was studied the management skill from Millie’s Cookies. Millie’s Cookies can also help Boost Juice Bar to create more types of healthy snake and achieve the original goals to monopolize the fast food market. It will be a good reference for the future expanding of Boost Juice Bar. The expanding in UK was a touchstone to test the reactions in European countries about this new style drink. As the influential country in Europe, fast food culture is very popular in UK or USA. In the other words, their cuisines are usually high-calorie and unhealthy that means the healthy drink would be easy to accept because they need it. Otherwise, the population in Italy and France would be more difficult because their cultures are going to pursue noble diet. In current American, there were many famous chains of juice bar like Jamba Juice, until now Boost Juice Bar is still unsuccessfully expand into the American Market.

At the end of 2007, Boost Juice Bar had also expanded into Chile, Kuwait, Singapore and Indonesia and most recently Thailand. As we all know, Thailand is an agricultural country with tropical monsoon climate .There are high annual food yield and the price is really cheap. The demand of cold drink is high because of the hot weather. The standard of life is really low in Thailand but the tourism has had a good deveoplemtn.When the cost was low and the revenue would be high, I have no reason to give up this market. However, the current expanding in the other countries was not an advisable choice. At that time, Boost Juice Bar should put more focus in expanding the business into China because of the 2008 Beijing Olympics .Until 2009, there are stores operating in Australia, Chile, Dubai, Estonia, Germany, Hong Kong, Indonesia, Kuwait, Lithuania, Macau, Malaysia, Portugal, Singapore, South Africa and the United Kingdom.

Boost Juice Bar has ardently spread out the activities on environmental protection. In order to complement the theme, Boost Juice Bar has release the reusable Boost Mugs .Besides, the company needs to increase public influence through the activities; it wants to emphasize the importance of health. This is a successful advertising to link up the customer behavior with the company’s products. Some environmentally conscious countries will be easier to agree with the expanding in the future when the condition is okay of the government policy.

In summary, the main successfully international strategy of Boost Juice Bar was built a good franchising relationship started from Millies Cookies in 2007 to Joost Food (India) in 2011. Boost Juice Bar always selects to franchising local big food and beverage retail brands. Besides, the brand can expand in a new country with low risk; the brand can follow the experience collected from the cooperative company to run the other stores. The other reason of their success that Boost Juice Bar provided a healthy alternative to solve the international issues (Obesity and health).When there are high demands, the company will be success.