Jamba Juice 2007 Annual Report Download - page 7

Table of Contents
marketing efficiencies. We believe that clustering helps to reduce costs associated with regional supervision of store operations, increase distribution
efficiencies, and provide us with the opportunity to leverage marketing costs over a greater number of stores. In addition, we believe our ability to hire qualified
team members is enhanced in markets in which we are well known.
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Our current growth strategy is focused on the development of new stores and increasing same store revenue.
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We believe we have significant market expansion opportunities both nationwide and internationally. For fiscal 2006, Jamba Juice Company opened 43
new Company Stores, closed three locations and acquired one franchise location. Franchisees opened 29 stores and closed 14 stores, of which eight were
Whole Foods Market locations. We anticipate that we will continue to open a combination of traditional and non-traditional stores in both existing and new
domestic markets. We anticipate that this growth will be accomplished through the development of both Company Stores and Franchise Stores in non-
traditional venues. The development of non-traditional stores is expected to generate awareness to complement the traditional stores in the area. We also will
actively explore opening Franchise Stores with area developers to supplement our Company Store development. We expect that possible future international
development opportunities will primarily be pursued through area development or joint venture agreements with third-parties.
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Jamba Journey from Initial Trial to Regular Healthy Habit: Our mission is to fuel customers’ active lifestyles by encouraging a “healthy habit”
consisting of a regular dose of Jamba Juice. By communicating to our customer base that it will be a source of energy and enjoyment throughout all stages of
their journey, we are working to build deep customer loyalty. We view increased frequency from “light users” (two or less times per month) and “medium
users” (two to eight times per month) as a significant opportunity that will drive same store revenue growth while mitigating revenue volatility. Our product
innovations and expanded marketing communications have the potential to increase purchase occasion opportunities and strengthen customer’s emotional
connection with the brand.
Brand Communication and Awareness: Our strategy for brand communication focuses on delivering a clear message of the benefits of our products
and the principles behind the Jamba brand. The delivery of the message must be fresh, interesting, and relevant to establish an emotional connection with the
customer. As we do not engage in mass media communications, we employ the store experience as our primary communication vehicle, concentrating on
ensuring that all touch points are consistent and clear in order to build brand awareness that will result in initial trial followed by repeat visits and positive
word-of-mouth. The communications encompass the colors, smells, displays, and merchandise found in the store in addition to the energy of the team
members. We anticipate driving same store revenue growth by educating consumers on the benefits of Jamba products, our usage occasions, and the story of
Jamba Juice. The clarity and harmony of the message will create emotional connections with customers and build brand loyalty.
Devoting Additional Resources to Product Optimization and Innovation: Our research team continually seeks to enhance the product offerings
available to customers, and where possible, reduce product and labor costs at the store level. This process includes both the development of new products and
the optimization of the menu to ensure only the most appealing products are offered to customers. As new products are introduced to the menu, usage occasions
increase and positive word-of-mouth is spread. The Company was very successful with this approach when it introduced the jamba light TM and the All FruitTM
line of beverages to satisfy customers concerned with calorie and sugar levels; those two product lines, introduced in 2004 and 2006 respectively, now account
for approximately 18% of revenue. We are passionate about creating fresh new products that meet an even greater variety of customer needs. We pride ourselves
on listening carefully to customer feedback, an
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