GROUP PROJECT topic JAMBA JUICE FRANCHISE BUSINESS PLAN

Jamba Juice: The purpose of our business is to provide the customer with the truly good quality andhealthy product such as Juice and smoothies, to help the customers to aware more of the

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

Course: FranchisingInstructor: Dr Ho Nhut Quang

GROUP PROJECTTopic: JAMBA JUICE FRANCHISE BUSINESS PLAN

MEMBERS:

1.VU TUYET NGAN

2 NGUYEN THI KIM OANH

3 NGUYEN DUY KIM THU

4 NGUYEN TIEN DAT5.NGO HOANG CHIEN6.NGUYEN QUOC CUONG7.NGUYEN DUY LONG

1 Importance role of Food and Beverage Industry in Vietnam

The food and beverage industry, is a very large one, and was expected to value at US$33.7 billion in 2012, with predicted growth at 18.9 percent till year 2014 It is

growing fast at almost 21 percent in 2013, producing food at a growth of 20 percent and beverage production at almost 27 percent In terms of volume growth for producingpackaged food and soft drinks, Vietnam was the best performing country from 2007 to

2012 Products such as chilled, frozen, dried and processed food, as well as ice cream,ready meals, baby food and noodles, have experienced growth in production

2 Trend of Food anf Beverage Industry in Vietnam

Consumer spending on Food & Beverage is growing The food service industry is expected to grow at a compound annual growth rate of six per cent between 2013 and 2018 Per capita expenditure on food and non alcoholic beverages is expected to grow at seven per cent per annum from 2012 to 2016, reaching US$276 by 2016 Associated with this growth in Food & Beverage is the growth of modern retail formats such as supermarkets which present

opportunities for greater exposure to imported products not generally stocked by traditional stores Vietnam, on the other hand, has a critical focal area for its food and beverage industry,

as the Vietnamese living standards has already started to rise The country’s economies have developed into one of Asia’s dynamic and growing market for agriculture food The market has apotential growth, as the spending on packaged food and beverages in Vietnam is still

considered low Vietnam’s WTO membership has promoted a reduction in its trade and

investment barriers including tariffs, subsidies, non tariff barriers, investment restrictions and intellectual property rights (IPR) Rising disposable income levels and changing lifestyles, particularly in urban areas, are increasing consumer demand for snacks, convenience and luxury Food & Beverage items The annual growth of food sales is anticipated to be 9.4 per centfor the 2012 to 2017 period The agricultural sector requires significant investment; foreign investors can expect assisted entry.The growing tourism sector is a factor fuelling interest in convenience categories, in addition to sub sectors such as soft drinks and alcoholic drinks Health consciousness trends provide an opportunity for Food & Beverage manufacturers to diversify into food options perceived to be healthier

3 Juice trend:

In 2014, juice registered off trade volume and value growth of 12% and 20% respectively Although these rates were lower than those recorded in 2013, they were still high,

indicating strong and stable demand for juice Improving living standards and greater

consumer interest in health and wellness are the main factors contributing to robust

growth of juice drinks In addition, people, especially those who live in urban areas, are becoming increasingly busy and reluctant to squeeze juice for themselves and their family.Instead, they purchase packaged juice drinks made by prestigious manufacturers for

convenience and hygiene As Vietnam is a tropical country with the climate is almost hot during the year that the consume of beverage is extremely high especially for the juice Especially in Ho Chi Minh City, people now are more tending to reach those kinds of

product that not only meet their need but be a healthy product as well The teenagers, the office workers are now choosing juice, smoothies as their favorite drinks instead of coffee The parents, the elderly also in favor of juice since it’s good for the health Juice is

become an indispensable daily drink of the Ho Chi Minh people with the demand for juice, smoothies or fruit/vegetable products increasing steadily

PART 1: EXECUTIVE SUMMARY

1 Jamba Juice:

The purpose of our business is to provide the customer with the truly good quality andhealthy product such as Juice and smoothies, to help the customers to aware more of theirhealth with their daily food and drinks

At first, we open the first Jamba Juice on Tran Nao street, District 2 where there are a lot ofsegmentations and potential customers Publishing the image of Jamba Juice to the customers

by giving them the real meaning of a good and healthy drink then achieve the trust fromcustomers In addition, we develop the long term strategy for Jamba Juice to go further in thisbusiness line

2 Product: Freshly Squeezed Juices and Smoothies

That the high quality and healthy of the product brings to Jamba Juice the very unique

customers and there are many customer segmentations Especially for the segmentation of customer with the age is under 25 which is a big segmentation with the consumption of Juice is huge and increase steadily The elderly – a potential segmentation of the Juice

industry is strong also The living standard of the Ho Chi Minh City is increasing and they are more concerning about their healthy that they would like to choose those kind of drinks and the number of consumption of this potential segmentation is strong too As mentioned

above, people are becoming aware more of their health that coffee and the other normal

The size of this market is growing People are more willing to pay for these high

qualityproducts Above that, the living standard and the average income is higher than before.With the purpose to provide the high quality Juice drinks to the customers, the location islocated on Tran Nao Street in District 2 with the high number of potential customers Theseare parents with young kids, the elderly, and the families with high income that they willreach such high nutritious and healthy product as Juice This geographical location also hasimportant effect on the long term strategy

The competitors of Jamba will be in the same business line – Starbuck, Coffee house, TrungNguyen coffee, Highlands coffee and the others coffee store are the competitors with Jambaeven when their main products is coffee which is the favorite daily drink of Vietnamesepeople Besides, these stores have the similar products as Jamba But the trend is changing,people are reaching the products with higher quality and good for their health and Juice is one

of the top choices Jamba get the expertise in this field with the high knowledge about thenutritious and healthy products and the products of Jamba is also examined by the specialistsand this will gain the competitive advantage from the other competitors

4 The marketing plan:

Our marketing plan is heading to the awareness of the customer about their health

by providing truly good healthy and quality drinks Therefore, the image of Jamba

to the customers will be developed basing on the quality that Jamba brings

We will use Integrated Marketings Communication in our marketing plan In the first stage befor Opening,wWe would like to push the marketing on newspaper that aim to our target market such as Gia đình & Tiếp thị, Phụ nữ, We also want to use other online media such as online newspaper and ultilize power of social network which have thousands of network to spread the information that we are coming to Vietnam At the second stage Opening, we also ultilize these channels to inform that we are here already We also organize press release to inform this Furthermore, we will use the help from influencers such as Chi Pu, Thúy Hạnh who are very famous, young, beautiful to build credit on our customers about our products which are high

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coupons to attract people to come to our store and enjoy Specially, we will sponsor for some attractive programs on television such as sitcoms or Color me run to spread our brands.

PART 2: SITUATION ANALYSIS

A Macro Environment:

Franchising started in Vietnam in 1990s with some well known foreign fast food brands (likeKFC, Listeria, Jollibee, etc.), so it is still in its early stage in Vietnam Up to 2014, therewere about 100 foreign franchisors registered in Vietnam Most of them come from the USand Singapore The dominant business fields are retailing, education, and food andbeverage (F&B) (Tilleke&Gibbins, International Franchising – Vietnam, 28 Jan 2014)

Now, we will go through the differences in some factors which may affect the success

in doing the franchise business of Jamba Juice

1 Demographic changes that may affect the food and beverage consumption in VN: In term of age structure, there are about 17.8 per cent of Vietnam’s population were from 15 to 24 years old (Index Mundi, Age structure, 23 Aug 2014) Based on the graph shown below, we can realize that there was a huge number of Vietnamese are in the age from 18 to 29 and from 30 to

60 In the first group, they are teenagers and young people, so they are change oriented and adaptive In the second group, most of them are officer and those who are helth concern

Therefore, in both groups, they are willing to enjoy a new juice brand

In term of middle class segmentation, the Vietnam News shows that there were about

12 million people considered in this group and this figure is expected to increase to 33million in 2020 (Vietnam News, Vietnam ‘s middle class set to double, 27 Dec 2013)

2 Economic changes that may affect food and beverage consumption:

The economic growth rate in Vietnam is expected to remain around 5.8 per cent to

2016 (World Bank, Global Economic Prospects, East Asia and the Pacific, Jun 2014)

In 2014, GDP per capita in Vietnam had growth to about USD 2,050 (World Bank, GDPper capita, 2015) More particularly, this figure in HCM city which is our initial franchiselocation is about USD 4,513 in 2013(Vietnam Plus, 12 Dec 2014) This means that theadjusted price (from 60 000 VND to 100 000 VND) is affordable for the middle and highclass customer in HCM city

3 Social cultural changes that may affect food and beverage consumption:

The Vietnamese are very sensitive with the price Thus, when charging high pricecompared to other brand names in Vietnam Food & Beverage market, the quality ofproducts and service would be good as well so that customer would not leave ourbrand after the first time enjoying our product Besides, with an increase in incomes aswell as demand for Western products, Jamba Juice will be beneficial

Moreover, in Vietname, people will respond to incentives with a very high level Thus,attractive promotion strategies will help Jamba Juice has more customers

4 Technological changes that may affect food and beverage consumption:

The fact that the import tax of techlonogies and machines which are used in Food &Beverage service is quite high Therefore, some of frachisee will negotiate to thefranchisor so that they can use other machines which are bought by itself However,other machines sometimes do not work well as the franchisor’s machines Forexample, the products with new machine is not as fresh as the products of franchisor.The change in the quality of product would lead to a decrease in consumption

5 Changes in Law and Regulations that may affect food and beverage consumption When doing franchise, we will face to 2 circumstances The first circumstance is that the franchisees will buy material themselves Another circumstance is that franchisees will import raw materials or goods from franchisor Because most of the franchisors want to maintain their product over countries and they want to have more profits in selling raw materials as well, they will deicide to sell raw materials to franchisees However, when selling material to franchisees, the parties may have to consider the legal restriction that are imposed on import of such goods The tariff rate in Vietnam now (after WTO accession) is still a litlle bit high This will make the franchisee has to set a high adjusted price when negotiating with the franchisor Based on the law of demand, a high price will lead to the low quantity of product sold Besides, the quota of some imported goods is eliminated recent years.

B Micro Environment

1 Consumer analysis:

Potential customer of JAMBA Juice are those who has middle and high income They can beteenagers who are usually impacted by the trend; they can be high educated officerswho are willing to pay for services they gain when they buy product; they can be thosewho has a health concern

of products of other brand names like The Coffee House, Coffee Bean and Tea Leaf, Gloria

about 60 000) Moreover, their stores are very peaceful as Starbuck which are suitablefor officers, business man or those who would like to have a quiet area The rests areUrban Station, Phuc Long, and Highland Products of these store are cheap (averageprice is about 30 000 or 40 000) However, the atmosphere at these store is quitenoisy, especially in Phuc Long, which is just suitable for teenagers.

In Food & Bevergae service industry in Vietnam, particularly in HCM city now, PhucLong and Highland have high market share because of its taste and very affordableprice But in term of high class, Starbuck still a giant in this industry because of its fame

in the world Trung Nguyen coffee is a local famous brand name which appears a verylong time in Vietnam

PART 3: MARKETING PROGRAM

1 Franchisee’s mission and vision:

Mission statement:“Our leading responsibility is juicing for a better tomorrow.With ournutrition experts,we make sure to provide healthy food ingredients with you.We alwaysavailable to make up your day with a fresh dringking ever”

Vission statement:“Our desire is to expand and operate to be the most popular juice brandname from the whole Vietnam, which is provide the best and healthiest food for you”

2 Marketing goals:

The revenue percentage will be 20% grows per years,and each products will be 3%per years because,we will get more profits and prove that there are a lot of customersbelieve to use our products

We expect to sell $600,000 a year in widgets If the total amount of widgets sold from allcompanies within the market totals $12,000,000, then market share equal to 5% As themarket for a good or service grows, we maintain or increase market share as a sign of acompany's competitiveness Increases in market share might come from innovation,broadening demographic appeal, lower prices, or have more power in the market

PART 4: TARGETING, SEGMENTING AND POSITIONING

A Segmenting

1 Current market:.

The polution covers around us and no one sure that which is the best store to choose to eat and drink To have higher profits the farmers use poison and pesticide to make the vegetable and fruit grow faster and bigger So that’s the reasons why we saw some cases of food poisoning on televison,newspaper…This becomes our anxiety about customer healthy, eating and drinking behavior of Vietnamese An it is good chance for us to bring Jampa Juice into Vietnam market with 100% fresh and organic food These are our customer current target market:

a.High and medium income local resident:

As you can see on the graph, Vietnam average GPD per capital in 2014 is about $1077,91,so the medium and average income is just about over 250USD per month.Furthermore, the average ratio of over 4millions VND group is more 80% in Ho ChiMinh and Ha Noi city in 2009.

When the people belong to this kind, they are about 30 55 Especially, they will havedifferent ideas about living and enjoying life to get a long expectancy and healthy life.Theyare willing to pay and have less sensitive about price,they just care about their health,because they want to get more money to have a higher living conditions including food.And we will divide this group into 2 main groups: 1st who working in the offices anf 2ndworking outside and they have to move regularly

_Going to the 1st group: everyday they live in a box office and smell the air conditions and sit inone place, face to the laptop or computer for many hours,which makes they feel boring.So howabout their health? That’s a big problem Sitting hours to hours can cause more fat and maketheir body unbalance.Living under air conditions and exposure to computer or laptop, the mostimportant is making up all day long makes their skin goes dryer and worse.WHAT can OURstore help them? With our experts about ingridients and nutritions about 100% fresh food, wemake sure that we have some meals and drinking can help their body and skin improvebeautifully day by day because customer expectation is our honetsly

_And The 2nd group( engineer, saler…): with the main characteristic of job, they must go outsidemany times a day, moving for all day is a reason why their body lose energy throughperspiration,and the sunshine is a factor which kill their skin.Our food services will help them

get back energy and the fresh of skin.And when they don’t know where to go they cancome to our store with a mordem US decoration where suitable for some small meetingwith partners.

b.The young: (under 30) this groups included kids under 15years old and over 15 years old

This group have a huge ratio which will be our potential clients

_Under 15 years old: after a working day their parents have tendency moving out toenjoy happy moment with their family They and their kids will choose a place havehealthy food for their kids.with our private menu for kids and parents, they have amultiple choices for their meals.These menu had been experienced clearly for kids toprovide energy for them, and 100% vegetatable but kid can not taste the hot of bulb._Over 15 years old: they hang out with friends and hear about a new fruit store with highquality and price, the decoration with US style.So they will get into that place and try 1meals or drinking to sastisfy their curiousity.When they visit our store we make sure theywill comeback twice and more but with many people have the same age with them

With the expanding of our franchisor and the popular brand name they built for manyyears in foreigner’s hearts.We think that a lot of foreigners will know and love to useour brand name of food.Follow US style and the famous brand name, we make surethat the traverler will surprise because there is a real Jampa Juice store in Vietnam andexcited to enjoy it like what they used to

2 Potential targets markets in future

Consumer spending on Food & Beverage is growing The food service industry is expected to grow at a compound annual growth rate of six per cent between 2013 and

2018 Per capita expenditure on food and non alcoholic beverages is expected to grow

at seven per cent per annum from 2012 to 2016, reaching US$276 by 2016.So our target markets in the future are people who live in the high quality apartments and the customers from whole HCM city,because district 2 has many buidings, apartments are building and this is a promise with a plenty of human come to here,with the high living condition they need a place to enjoy heathy food.And of course we will try our best to expand from the whole HCM city to make more customer know more about us with the aim is to icreasing the human life through eating and drinking

B Positioning plans

1 Increse brand awareness:

a Provide great customer service:

Today’s customers are looking for guarantees, prompt turn around time andexceptional service after the sale When making an Internet purchase, customerservice can often become a major factor in the final buying decision.Giving reward anddiscout for our long term customer of in occasions of the year

b Tell a story that speaks to customer why we love to work in healthy business:

Our customers will know, and trust us We believe our target market needs to accept

as the person behind the brand before they will buy our products

c Work to keep our name in front of our market:

We believe in the saying “out of sight and out of mind.” Here’s a fact of business life:Reminding target market that we are actively doing business and tell our employees to usethe word Jampa Juice before saying anything ,if not customer will forget and go elsewhere

d Provide value – exceed customer expectations:

Providing on going value to our target market is vital to better brand recognition andbecoming the well respected “go to” person in our field Also, providing the servicesand food more than what customer needs, through taking care of customerconsiderately and always available when they need us

e Develop a website and facebook to show our products:

An added benefit to hosting website is that once the video is recorded, customer candownload it from website.Another free marketing resource for your current Internetcustomers is inviting them to participate in a Facebook Group In Facebook Group,participants can share tips, ask questions and network with one another to keep intouch with our clients

2 Brand strategy:

a.Use social media:

Using the power of Twitter and Facebook, as social media has become a trend that isincreasingly welcome by the people in the nowadays especially with the emergence ofthe smart mobile phone such as the Iphone and so on which provide instant socialconnection to via the free and powerful internet access

b.Building a sustainable supply chain:

With the value of our franchisor the company has adopted a high business ethics standard toconnect with farmers and for the customers By adopting a poisoning strategy to be a provider

of a premium juice drinking experience, which gives us a potential force for positive reform inevery part of the supply chain to provide green keeping a building a sustainable supply chainand, we beliew that we would be able to differentiate with other competitors, and with

the increased awareness of environmental protection and continual development andharmony with the nature.

c Rapid expansion:

We need to have rapid expansion, our strategy is to increase the market share inexisting markets In long term we will acquires several fundraisers and more investorsincorporate with us quickly We will try to establish as the market leader to thecustomers and thus become differentiated compared to the offering by the competitors

PART 5: SWOT ANALYSIS

● Variety of drinks: more than 30 custom smoothies (including Aloha Pineapple, Mango

a go go, and Strawberry Surf Rider) and Jamba Boosts (smoothies made with vitamin andprotein supplements), along with other fruit juices and food items

● Offer not only the healthy drinks but also the catchy and tasty smoothies: our productshave good looking texture, have delicious taste, have necessary nutrition and in a comfortable and fashionable store

2 Weaknesses:

● Limited food and snack offerings in comparison to other brand (McDonald’s,Starbucks, etc) We just focus on healthy and tasty smoothies, whereas people also need some food andsnack accompanied with the drinks

● Many substitutes: milk shake, milk tea, coffee, etc For adults, business people,officers and older generations, coffee maybe still the best choice For younger people, milk tea and milkshake are the most familiar drinks

● Franchisors may have difficulties in providing support in management, capital,

training, marketing, etc

3 Opportunities:

● Increasing concern about health and food sanitation: people now are more concernedabout the quality of food, not just the price and taste, especially when there’ve been a crisis in food safety

in Vietnam since a long time ago

● Trend in body fitness: mostly young people (also partially the older generation) now desire nice body shape, therefore, they care about the food and nutrition more than ever

● Young age structure: create chances to conduct campaigns, events, sponsors,… to raise awareness among celebrities and young people

4 Threats:

● Suppliers seeking: we need to ensure the quality, origin and preservation of fruits.Besides the standards of fruits, we also need to consider the terms and contracts to maintain the stable andeconomical supply

● Competition with domestic and traditional smoothies shops: how to create theawareness and habits of customers to change to our store, instead of some small smoothies shopsnearby? How to impress people about our differentiated products from other smoothies out there? And how

to influence coffee styles in Vietnam, to create the new trend in drinks for Vietnamese?

● Labor productivity: poses a threat to training and management issues

● Cross cultural differences may force the products, services and stores’ environment to

adapt to Vietnamese customers

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PART 6: MARKETING STRATEGY

A Product strategies

1 Vietnamese favorable juice tastes:

Matcha Green Tea, Banana, Passion Fruit, Orange, Strawberry, Kiwi, Blueberry,

Mango, Peach, Apple, Grape, Pineapple are Vietnamese Favorable Juice Taste

2 Franchise product plan:

● Energy Bowls: blend of realwhole fruit, fresh Greek yogurt and/or soy milk, topped with an assortment of dry toppings & fresh fruits

● Juices and Smoothies

● Tasty Bites

● Jamba Kids

3 Product differentiation plan:

● Healthy Recipe:

+ Made by 100% fresh, nutritious fruit and veggies

+ Harmonic combination between favorable fruit and veggies

+ Use of special Greek yoghurt

3 cupsize options: sixteen, original, power

On the go bottle

● Menu with a variety of choices a.Energy Bowls:

Acai Primo Bowl

A tasty twist of Acai juice,soymilk, blueberries,strawberries and bananas,which we top with organicgranola, fresh bananas,fresh blueberries, coconutand a drizzle of honey

Chunky Strawberry Bowl

A delicious blend of freshGreek yogurt with

strawberries, bananas,peanut butter, and soymilk.It’s topped with organicgranola, fresh bananas andfresh strawberries andserved in a convenient,on–the go bowl

Fruit and Greek YogurtBowl

Nonfat Greek Yogurttopped with freshblueberries, freshstrawberries, fresh bananas,organic granola and adrizzle of honey

b.Freshly squeezed juices:

Cucumber Orange CoolerWhat’s better than fresh squeezed orangejuice? Fresh squeezed orange juice injectedwith a healthy dose of refreshing cucumber,apple and lemon juices, served over ice.Trust us on this one

Orange Supreme

We named it Supreme, hoping it'd live up toour lofty expectations Take one sip ofblended fresh squeezed orange juice, carrotjuice, bananas, apple juice and chia seeds,and you'll know that it did

Veggie Vitality

We introduced carrots, apples and freshsuper greens to each other Turns out, theyget along quite nicely in this deliciousveggie juice with a hint of sweetness

Tropical Greens

For a truly tropical flavor, we’ve combinedapples, pineapples, Supergreens, and Chiaseeds This is one island that will never bedeserted

Citrus KickWhen you really want to bring up thebrightness in your day, try this blend oforanges, apples, pineapples, and ginger Justdon’t forget your sunglasses.

Great GreensYour Mom always told you to eat yourgreens If they tasted like this power packedblend of apples, cucumbers, Supergreens,Lemons, and Chia seeds, you actuallywould have

Purely Orange

Perhaps no fruit has been squeezed more.Taste our fresh nectar from the king ofvitamin C and you’ll know why