In the summer of 1998, Nantucket Nectar created a subsidiary of their brand called Juice Guys. This new product was comprised of fresh juice and fruit smoothie drinks that were taking over the West Coast. Within three-and-a-half months, Juice Guys had sold a total of 175,000 items ranging from smoothies, yogurts, sorbets, Nantucket Nectar drinks and fresh squeezed juices. Juice Guys’ revenue went up to 91% and they made a profit of $227,000 in sales.
Noticing the tremendous success within the industry in such a short time, Nantucket Nectar and Juice Guys decided to expand this new juice retail concept into the East Coast. Their primary focus within the East Coast was expansion into the Boston market. Although this sounded like a good idea at the time, the founder of Juice Guys did not take into account the surrounding challenges that would come with trying to promote a concept into a new and different market. One of Juice Guys’ biggest challenges was of the differences in climate and environment amongst the states that they were trying to implement their product in. For example, Nantucket Island, which is based out of the West Coast, is considered their “summer-only retail concept” (Fox & Rushmore, 1999, p. 3). It is also considered a place where lots of tourists love to visit. In the West Coast, it was very common to see many people drinking cool fruit beverages and enjoying the weather and scenery. In contrast, the East Coast gets considerably cold during the winter months and is considered a “metropolitan city” (Fox & Rushmore, 1999, p. 3). This in turn states that the East Coast is comprised of a less tourism atmosphere and suffers climate changes that may affect a consumer drinking a cold fruit beverage outdoors during certain times of the year. Another one of Juice Guys’ challenges was of product recognition and target markets. In 1999, Juice Guys’ competitors, Jamba Juice and Zuka Juice opened up a store at Yale University in...
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