Jamba Juicing Case Analysis
The demographics of the target market are any households that make more than $100,000 annually and typically are college educated. The target market also consists of consumers that exercise on a regular basis, consumers that live active lifestyles, and consumers that maintain healthy diets.
C2. Industry Analysis: The juicing industry generates $2.3 billion in revenue each year and is projected to grow over the next several years. The juicing industry is expected to grow by 100% over the next 5 years as more consumers become more health-conscious. Securing only a 2.5% portion of the juicing market will generate over $57 million dollars in revenue.
Of course, everyone has heard of Jamba Juice, Smoothing King, and the Nutribullet. However, …show more content…
The companies are also located in Asia which will create increased operating expenses for freight charges. Orders have the risk of being placed on backorder if initial demand is high while raw material shipments are waiting to be delivered from overseas. Initially, the demand may exceed the time it takes to produce the iJuice from the increased shipping times from suppliers.
3. Research and development costs to begin producing and manufacturing iJuice in-house.
To overcome the production and manufacturing weakness AMC LLC will be required to begin research and development of producing and manufacturing the component the iJuice in-house. Research and development expenses are projected to increase operating expenses by 10% for the next five years. There will also be several expenses related to construction of a new facility that will produce raw materials and component parts, manufacture and produce product, environmental licensing regulations that have to be met, and an increase in payroll expenses for hiring new employees. However, after research and development is complete producing and manufacturing our own product will be a …show more content…
This creates the possibility of AMC LLC not having any access product in the event of natural disasters, international conflicts, and at risk of high freight charges due to the fluctuating prices in logistics and fuel. Depending on initial sales of distributors’ first orders may put the iJuice on backorder and very difficult to keep up with customer demand. Or, a surplus of inventory in our distribution centers due to incorrectly forecasting sales and over
C2. Industry Analysis: The juicing industry generates $2.3 billion in revenue each year and is projected to grow over the next several years. The juicing industry is expected to grow by 100% over the next 5 years as more consumers become more health-conscious. Securing only a 2.5% portion of the juicing market will generate over $57 million dollars in revenue.
Of course, everyone has heard of Jamba Juice, Smoothing King, and the Nutribullet. However, …show more content…
The companies are also located in Asia which will create increased operating expenses for freight charges. Orders have the risk of being placed on backorder if initial demand is high while raw material shipments are waiting to be delivered from overseas. Initially, the demand may exceed the time it takes to produce the iJuice from the increased shipping times from suppliers.
3. Research and development costs to begin producing and manufacturing iJuice in-house.
To overcome the production and manufacturing weakness AMC LLC will be required to begin research and development of producing and manufacturing the component the iJuice in-house. Research and development expenses are projected to increase operating expenses by 10% for the next five years. There will also be several expenses related to construction of a new facility that will produce raw materials and component parts, manufacture and produce product, environmental licensing regulations that have to be met, and an increase in payroll expenses for hiring new employees. However, after research and development is complete producing and manufacturing our own product will be a …show more content…
This creates the possibility of AMC LLC not having any access product in the event of natural disasters, international conflicts, and at risk of high freight charges due to the fluctuating prices in logistics and fuel. Depending on initial sales of distributors’ first orders may put the iJuice on backorder and very difficult to keep up with customer demand. Or, a surplus of inventory in our distribution centers due to incorrectly forecasting sales and over