Jamba Juice Case Thought Starters
1. Please analyze the external environment for Jamba Juice concentrating on the six external variables discussed in class.
2. Review the value chain for Jamba Juice and discuss where they are gaining a competitive advantage.
3. Discuss the marketing strategy for Jamba Juice and how it is positioning itself. Do you agree with this strategy?
4. If you were a marketing director for Jamba Juice and were asked to develop an advertising and media plan which vehicles might you use to build awareness and generate traffic.
5. Do an assessment of the financial health of the company.
6. What recommendations would you make to see Jamba Juice grow and increase market share? Do you think their proposed strategy in the case study of following the Starbuck’s model is a good one?
Abercrombie and Fitch’s product line and target market is starkly different from that of its origins. Founded in 1892, the retailer was an outfitter of sporting and excursion goods. It sold shotguns, fishing rods, tents and outdoor gear. It catered to the rich and its products were priced accordingly. By contrast, today, Abercrombie and Fitch is known more as a clothing retailer, with a with a target market between the ages of 18 and twenty-something. The firm has come a long way from its origins. The transformation and reposition of A&F did not occur in a vacuum. The company struggle to maintain and grow its niche in the sporting and excursion goods area. In 1976, financial woes forced it to file for Chapter 11 bankruptcy protection.
This marked the real transformation and reposition of the company. It changed hands a couple of times and was finally acquired by The Limited, a clothing retailer.
With its repositioning, Abercrombie and Fitch is now a key player in the apparel market with a key demographic as its target market. In line with its strategy to broaden its appeal in 2005, the firm opened a 36,000 square-foot store in Manhattan and employed other marketing strategies as well. In touting the Manhattan store CEO Michael Jefferies described it thus “this is a prestige location and great for the positioning of the brand.” (Case 26 Abercrombie and Fitch case) The store was laid out in a way that conjured both the present and past. The opening of the Manhattan store was a savvy move by the retailer. Fifth Avenue is greatly coveted location by retailers. The Manhattan area is an affluent area. Furthermore, with its millions of tourists both domestic and international, a prime location in New York, such as Manhattan, provides plenty of opportunities to capture tourist dollars. The ambiance in the store was created to attract its target audience and made it irresistible to leave the store. Through visual and acustics and good sent the store was the place to hang out and shop for its youthful target market. Its strategy was successful, its 2005 net income rose to $334 million on revenues of 2.78 billion (Abercrombie and Fitch case)
Despite its successes, Abercrombie and Fitch, like most retailers cannot afford to be complacent. The apparel industry is a highly competitive and dynamic industry. There are external variables that the company has to be cognizant of. Competetion, trends in taste of target market and demographics are some key areas that the firm has to be constantly on alert of. Competetion is fierce in the apparel and footwear industry. There are many firms that target the same market segment as A&F, it is therefore critical that it be on the lookout for competitors that may attempt to win market share by entering into its niche market. Trends in fashion and taste are another key external variable that Abercrombie and Fitch has to be constantly on the alert for. Its target market is highly adaptable and willing to embrace new trends and taste. To that point, it is all the more critical that the firm stays ahead of the game by innovating and embracing new trends and tastes that emerge....
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