Professional Documents
Culture Documents
International Campaign
Table of Contents
Executive Summary…….………………………..………………………………………………3
Business Situation….…………………..…....……………………………………………….......4
Product History………………………………………………………….…………………..4
Advertising in Asia…………………...…..………………………………………………….5
Smoothie Trends…………….……………………………………………………………….7
Japanese Regulations………………...……………..………………………………………..8
Marketing Environment………………………….…………………………………………..8
Culture Review……………...………….………………………………..………………………10
Demographic……………..…………………………………………………………………10
Japanese Consumer…………...……………………………………………………………10
Marketing Decision……………………………………………………......................................15
Objectives………………………………………………………………………………….15
Creative Strategy…………………………………………………………………………...17
Creative Mix……………………………………………………………………………….17
Ambient Advertising………………………………………………………………………20
Sales Promotions………………………………………………………………………...…22
Public Relations……………………………………………………………………………22
Explanation of Strategies………………………………………………………………………23
International Campaign 3
Executive Summary
Jamba Juice is one of the top smoothie retailers in the U.S. The Japanese market has a
saturated fruit juice industry. However, offering a 100% fruit smoothie concept and healthy
snacks would be a great opportunity for Jamba Juice to penetrate this market. Smoothie King, a
New Orleans based company is launching their brand of smoothies in Japan in 2010. But with a
competitive edge and a large market share in the U.S., Jamba Juice has the capability to share or
Jamba Juice overseas in a market that offers an opportunity for the brand to flourish. The plan
will highlight the business situation which will include the product history, advertising in Asia,
Consumer.
It is important to highlight the marketing objectives, the marketing mix, execution and
strategies for the campaign, emphasizing the differences and changes that Jamba Juice will have
to make to meet the cultural needs of the Japanese Consumer. These include the strong use of
mobile devices, customers need for quality and status products, innovative marketing techniques
through augmented reality and the need to target an audience, not just individually but from a
collectivist approach.
Although Jamba Juice has resisted expansion overseas in the past, this plan will try to
help reconsider that position knowing that there is an opportunity to grow and take over the
market share for 100% fruit smoothies and healthy snacks to the Japanese consumer.
Business Situation
International Campaign 4
Product History
Jamba Juice is one of the top smoothie restaurants in the U.S. with over 700 stores in 30
states. The store concept offers a more hip, festive, more Starbucks-like quality (Funding
Universe, ed., 2005) that offers a competitive edge over its competition. The company’s methods
of site acquisition, development and retention plan have allowed for rapid growth as well as
strong employee retention and training. Penetration into other environments such as grocery
stores, college campuses and health clubs has allowed for more opportunity for growth.
Although the current economic climate has resulted in a decline in smoothie sales in
2009 (Jennings, 2009), creating a need for the company to expand the product line, Jamba Juice
has practiced financial discipline, cost management, continuous improvement and realistic
targets (Jamba Juice, 2010) which has allowed the company to prosper amidst emerging
Currently the company is going through expansion through the “Feel Good Campaign”
focusing on building brand loyalty and drive traffic through initiatives in schools as well as off-
site. Jamba Juice’ goal is to create a healthy, active lifestyle brand by expanding through
franchisees and non-traditional stores like universities and convention centers to increase brand
Jamba Juice has already created a solid foundation and has transformed the company nationally.
While it is growing in the U.S., Hawaii, and the Bahamas, this has produced an opportunity to
expand overseas which the company has been reluctant to do in the past (Funding Universe, ed.,
2005). The stores’ attractive concept that provides a competitive edge will prosper in a country
International Campaign 5
such as Japan, which is known for early adoption and enthusiastic acceptance of successful
products.
Advertising in Asia
To fully understand the Asian market, it is important to look back at the last two decades
when many of the Asian markets experienced rapid growth in the economy, increased foreign
investments, as well as a new generation of middle class consumers. There is a lot more
spending on products from both foreign and indigenous Asian companies (Kilburn, 1996).
Countries like China, Korea, Taiwan, Hong Kong and India are now being associated with more
advanced economies like the U.S. and most cosmopolitan European countries.
One of the main reasons for this is deregulation which has put many Asian countries,
mainly Japan, into the mainstream of global media change. New media outlets both print and
online, are proliferating throughout Asia. Certain laws such as revised broadcasting laws have
allowed foreign broadcasters to transmit directly into Japan which has previously been prohibited
(Kilburn, 1996). This opens up more opportunities for more channels and regional broadcasting,
which has resulted in a rise in technology and consumers having more choices and greater
control.
These advancements pose a problem for media selection because as the pace of growth is
changing quickly, there are a lot more variables in planning and buying for companies. Planning
and research become priorities and as the media environment becomes more complex (Kilburn,
1996), companies do not have enough data to make decisions because collection of data has had
to catch up with monitoring lifestyles, values, purchasing and media exposures that have
changed.
International Campaign 6
Media in Asia is extremely competitive and it is difficult to start from scratch (Kilburn,
1996) so it is important to seek agencies and companies that are familiar with the market and
have done research in the past. Although most Asian countries are more accepting of foreign
companies and some like Japan are early adopters of trends, it is important to have an
When looking at Jamba Juice’s competition it is important to note that the imported fruit
juice market has seen an increase in growth and demand from the Japanese consumer since 2000,
when a tariff rate promised further marketing opportunities for U.S. juice exporters (AgExporter,
1996). This has also caused a shift in demand for 100% real fruit juice over low percentage juice
drinks. The Japanese fruit juice market is divided into three categories: 10-40% juice content,
Among the most common juices in Japan, which are considered non-alcoholic beverages,
are Aojiru1 which was popularized in the 80’s and has since been marketed as a dietary
supplement. The most recent data in 2005 showed that sales have exceeded $500 million dollars
("Non-Alcoholic Drinks in Japan," 2007). Due to the abundance of drinks which include other dietary
drinks, teas, sports and energy drinks, the market for these which are sold in both vending
Jamba Juice would not be competing with these types of drinks directly because it is a
made to order beverage in the rising 100% juice category. It has a competitive edge over the
other 100% juice brands because of the hip and trendy Starbucks-like experience from the typical
1
Aojiru – A Japanese vegetable drink most commonly made from kale
International Campaign 7
sterile juice bars. However, a U.S. smoothie company, Smoothie King, is seeking to take charge
of the market for smoothies. Smoothie King will be Jamba Juice’s biggest competition.
Smoothie King was founded in 1973 as the originator of the nutritional smoothie and is
expected to enter the Japanese Market in 2010. Their competitive edge is to offer healthy
alternatives and high-quality meal replacements to the Japanese consumer. They are Jamba
Juice’s primary competitors because they are the top U.S. juice bar franchise in 2009 (Draper,
2009) and are entering the Japanese market at a time when there is an opportunity to fill a gap for
fruit smoothies.
Smoothie Trends
Healthier food and beverage options and meal replacement consumption is on the rise in
the U.S. with nutritional smoothie options in the forefront. The market for smoothies is expected
to grow by 10-13% over the next five years (Williams, 2009). This growth extends internationally
where there is an opportunity, demand, and lower barriers to entry because of lower capital
The growth of healthy foods and beverages is driven by consumer consumption habits.
Americans are skipping meals and instead eating unhealthy or less-nutrient enriched snack
goods. Smoothies have growth potential because it offers a much more healthy option than
snack goods, as well as better taste, convenience and portability (“US Smoothies Market: Trends
The most important reasons why smoothie companies are successful is their
understanding that quality of the product and brand awareness drives growth. With declining
soft drink sales in the U.S., there is tremendous growth in food chains, quick service restaurants
International Campaign 8
and beverage companies that are entering the smoothie market to take advantage of consumer
Japanese Regulations
The reduction in tariff rates in 2000 to further marketing opportunities for U.S.
companies has resulted in a growth of imports in the market. It is important for international
businesses which are entering Japan to understand the demands of the market. Imported
products must meet the requirements of the Ministry of Health, Labor and Welfare (MHLW)2
which ensures the safety and sanitation of foods through the Foods Sanitation Law which
prescribes the standards for all foods, additives, food apparatus and container packages (Japan
External Trade Organization, 2006). It is important for Jamba Juice to understand that any product
that is exported into the country that does not meet MHLW requirements will not be allowed
entry. Also important to note is the need for product labels which identify additives,
preservatives, coloring material, and ingredients. Container packages for food and beverages
Marketing Environment
Japan’s economy is growing. Consumer habits are changing and new social media
outlets are increasing thereby creating many opportunities for both businesses entering the
country as well as agencies within the country. A decade ago, Japanese consumers bought
products they saw on the TV. Now they are checking out prices and details on the internet.
Internet marketing is on the rise and many advertising agencies are developing new expertise in
experiential marketing and exploring new ways to work with retailers (Kilburn, 2006). With TV
2
MHLW - This ministry provides regulations on maximum residue limits for agricultural chemicals in foods, basic
food and drug regulations, standards for foods, food additives, etc.
International Campaign 9
ads taking a backseat to new multi-media opportunities, many agencies are in fierce competition
According to the NPD Group3 which researched the Japanese consumer, 76% of mobile
users surfed the web through their wireless handset and there is an increase in convergence
between advertising, direct response, and sales promotion (Kilburn, 2006). In the past, consumers
were a captive audience but today’s technology empowers consumers who have the ability to
filter messages that marketers and advertisers send them. It is important to find new ways to
For international clients, increased demand for creative ideas involving more than
traditional media advertising, has forced Japanese agencies to deliver new solutions and different
ad experiences in order to prosper (Kilburn, 2006). Therefore the marketing avenues are endless
and there are many opportunities especially in the technology industry that are waiting to be
introduced to a hungry consumer. It is vital to learn and discover what engages and motivates
Cultural Review
Demographic
Japan has a population of 127 million people packed in a relatively small geographic area
(Williams, ed., 2002) and is considered a country of high population ranking 30th in the world on
3
The leading global provider of consumer and retail market research information for a wide range of industries
International Campaign 10
density of population. There is a low birth rate and high life expectancy and almost no
immigration. (Map XL Inc., n.d.). The population growth in 2009 was at – 0.191% ranked 217 in
the world. The life expectancy age is 82.12 years, ranked 3rd in the world ("Japan," 2010).
The country is located in East Asia between the Pacific Ocean and the Korean Peninsula
and is slightly smaller than California. The climate varies from tropical in the south to cool
The official language is Japanese and 95 percent of the population has at least a high
school education. The Japanese government is a parliamentarian democracy under the rule of a
constitutional monarch. The Prime Minister is the chief government officer. The main religion is
Japanese Consumer
Japanese consumers value social status and hierarchy and are somewhat conservative
when it comes to the way they dress and the way they handle business and communications with
one another. They are known as early adopters especially of technology and fads. However it is
important to note their more collectivist nature than an individualist nature to life. The Japanese
consumer tends to agree with the opinions of other people especially their immediate friends and
colleagues (Terada, n.d.) and is more likely to embrace a brand that is accepted in their network.
other. So it is important to sell the corporation rather than the brand. If the corporation is trusted,
Japanese consumers have their own unique buying behavior, buying motives and their
preferences on merchandise (Terada, n.d.) and Japan is the largest market for brands outside the
U.S. (AEA Newsline, n.d.). They also prefer to shop in smaller stores and shop more often
especially when it comes to food and beverage. However the majority of the population has a
high discretionary income resulting in more purchases and bigger purchases. Either Japanese
people spend a lot of money on social status items especially items that are not available in Japan
(Terada, n.d.), or they spend the least amount of money on items such as daily usage items.
Japanese are very sensitive to freshness, smaller sizes, and place a large emphasis on
packaging (AgExporter, 1996). Promptness, speed and details are also important which is why it is
important to get the attention of the consumer. The general demeanor and personality of the
Japanese people also affects the courtesy of employees and the service industry (Arndt, 2003). A
customer is always right attitude is frequently adopted and respect is always given especially to
Japanese people are attracted to an advanced American lifestyle (Terada, n.d.) and have a
general fascination for America especially celebrities. The Japanese consumer loves a U.S. male
Hollywood celebrity (Graham, n.d.) which is interesting because they generally prefer Japanese
female celebrities. Many celebrities from the U.S. find a market in Japan for products that they
Culturally, the Japanese tend to be somewhat introverted in their ways. They generally
are not receptive to outsiders (Williams, ed., 2002). Usually most international brands that do not
have a competitive edge are forced to compete against home grown competition (Till, 2008).
International Campaign 12
When conducting business in Japan, relationships and loyalty to the group is critical for success
(Williams, ed., 2002) and understanding the culture through research is essential.
Individualism (IDV) is 46
The highest score for Japan is masculinity which is also the highest Hofstede score
among all countries and refers to the distribution of roles between genders. Japanese masculine
traits include material success, power, and strength. Japan’s uncertainty avoidance which also
ranks high, deals with a man’s tolerance for uncertainty and ambiguity. Most Japanese people
4
http://www.geert-hofstede.com
International Campaign 13
prefer structure and stability in life which can also be attributed to the more collectivist culture
that avoids risks and shows little value for personal freedom (Williams, ed., 2002). Long-term
orientation is also high and some of the characteristics of Japanese culture that fit into this
category are persistence, ordering relationships by status and observing this order and having a
sense of shame (Long-Term Orientation, 2009). Power distance ranks low in Japan measuring the
extent that less powerful members of institutions (like the family) accept and expect that power
is distributed unequally. This can also be attributed to the social structure and the roles of people
in the family and business. Finally the lowest score for Japan is individualism which coincides
with their high ranking uncertainty avoidance which measures how much individuals are
integrated into the group. Japanese societies are very collectivist and respect the opinions of
others so people are less about themselves than the entire group.
store and buy the product. This form of advertising is slowly becoming obsolete as there are
more “touch points” where consumers obtain their information especially the internet where 76%
of mobile users (Kilburn, 2006) are turning for information about products and services, as well as
to gauge the opinion of others. These consumers are smarter in their buying decisions and
behavior. With these new “touch points” companies have to react to the changing environment
Direct marketing and consumer research are important to be able to understand the
consumer. Direct marketing is less expensive than advertising mass media, and with the internet,
International Campaign 14
especially through the digital realm to find new ways to study consumer behavior and spending
habits. Jamba Juice can use these techniques to improve packaging, product, color and to
optimize product displays. This can also lead to brand opportunities such as a new line or
Because Japanese consumers are more connected to their phones, these phones can also
be explored as a 360 degree tool for tracking all touch points between the brand and the
consumer (Graham, n.d.). Understanding what internet sites are viewed, how consumers use their
phones and make buying decisions will greatly affect how businesses use technology. It is also
important to create websites and information portals in Japanese so that it is more convenient for
the consumer.
Marketing Decision
U.S.
International Campaign 15
Japan
Feel Good Campaign to build a solid foundation and brand awareness
Strengthen relationships through Japanese athletes and celebrity endorsements to
build awareness
Drive trial and build sales through sampling at groceries, health clubs, busy
shopping districts through the Augmented reality campaign
Growth utilizing consumer integration through social networks (via mobile
phones)
Growth through partnerships with top groceries and health clubs
Enhance customer experience through social networks, as well as focus on
cleanliness, quality of product, positive demeanor of employees (“Customer is
always right”)
Create new program measures through AR technology
New signage and graphics so customers can see what the product looks like and
through AR technology can learn more information to make purchase decisions
Since Japan has an opportunity for fruit smoothies, penetration into the country will be
easier despite risk of resistance from consumers as well as manufacturers and distribution.
International Campaign 16
However, utilizing these objectives can also provide a marketing strategy for Jamba Juice U.S. if
it is successful.
o Objective – Within one year of launch, open local branch in Tokyo and increase
market share over Smoothie King, the only other U.S. Smoothie company. Target
health conscious and status-minded consumers with high discretionary income who
are willing to spend more for high-quality status products.
o Current Situation – Jamba Juice will be the second Smoothie Company using 100%
fruit juice from the U.S. entering the market. However since Smoothie King will be
entering the market in 2010, Jamba Juice will have time to understand the market and
research what Smoothie King is doing right or what they are doing wrong.
o Key Action – A strong campaign involving the opening of a local branch in Tokyo,
Jamba Juice integration at groceries, health clubs, kiosks in busy areas, local female
celebrities and Holywood male celebrities who drink the product and speak about the
brand. These will create a status for the brand.
o Objective – To give the consumer the opportunity to try the product through
sampling at health clubs, Groceries and busy shopping districts utilizing strict
quality control standards as well as offering coupons and free drinks through
promotional campaigns
International Campaign 17
o Current Situation – Consumers are making smarter decisions and requiring more
information when making purchasing decisions
o Key Action – Create the Jamba Juice experience for the consumer no matter
where they are sampling or drinking the product. If they want to find out more
information they can take a picture of the AR barcode
Creative Strategy
The strategy is to focus on technology and social media to create brand awareness among
the Japanese consumer while increasing the presence of the brand, highlighting the benefits,
values, quality and image of the product. Since young adults are more technology savvy, the
target consumers for Jamba Juice are “niche” health conscious and status-minded consumers in
Creative Mix
The creative mix relies on a balance of both consumer and Jamba Juice efforts. Jamba
Juice will produce a high quality product targeting the health conscious at health clubs and
grocery stores, as well as high traffic areas while relying on consumers through augmented
reality techniques and social networks. Our methods will allow the consumer to obtain
knowledge and education while sharing their experiences with other consumers by creating a
dialogue about the products and having their own influences and endorsements of the product.
The mix will utilize technology to tackle the different touch points while also offering the
company a 360 degree tool to research consumer behavior and purchasing decisions. Because
Jamba Juice is targeting a niche social status target market that is health conscious and willing to
spend money on a quality product, all communication strategy and tactics will be done in
This is a new form of advertising to consumers using technology. Since 76% of consumers
use the internet on their mobile devices and most phones come standard with a camera,
augmented reality (AR) can provide a truly unique experience that is both inexpensive and
effective. When used in conjunction with print in the form of banners, magazines, newspapers
and internet sites, AR works by linking consumers to online content via visual signifiers (Ford,
2010). Currently this is in the form of a black and white barcode image that can be recognized
when it is held up to a computer webcam or camera phone and viewed through the computer
webcam or camera phone. This works because the camera uses the code to retrieve specific data
5
International Campaign 19
The internet marketing medium has become a cost-efficient and effective method for
advertisers to communicate with consumers. Japan currently ranks 3rd in the world among
internet users, representing 75.5% of the country (“Internet World Stats”, 2009). The internet is
thus an important tool for marketing, communications and for obtaining information.
Ambient Advertising
Ambient advertising refers to intrusive ads in public places (“Advertising: It’s Everywhere”
2010). Japanese consumers require more information when making a purchasing decision and
need to have constant exposure to the product in order to retain interest and acceptance. This
6
Internet Usage on mobile device
International Campaign 20
type of advertising involves a white 6-foot plain white cup placed in busy cities, health clubs,
A plain white cup with an AR barcode and a message that states “Take a look
through your camera and take a picture”
o Once consumers view the plain white cup with their cameras, they will see
the same cup with the Jamba Juice logo and images.
o When consumers take a picture they will be diverted to a landing page
with information regarding the product, experience and videos of celebrity
endorsers drinking the product. Consumers can sign up for more
information, as well as share their experience with their friends on social
networks.
Because of the nature of AR and the ability to change the codes, what consumers
see can vary. Consumers will have the ability to see something different in the
future, creating buzz from people looking through their cameras at this 6-foot
white cup.
Event Marketing and Celebrity Endorsements
7
Styrofoam cup , Jamba Juice 22 oz and 16 oz size cups
International Campaign 21
This is an important tool for Jamba Juice to create an experience and introduce the brand
to create brand integrity and awareness among consumers. Because Jamba Juice is an American
brand that has a big celebrity fan base in the U.S., it could feature celebrities who drink their
Event marketing is also important to share and create the experience. These will be done
through sample kiosks and in support of the 2020 Hiroshima Summer Olympic bid.
Celebrity endorsements
o Japanese female celebrities
Ayumi Hamasaki (Empress of Pop)
Mao Asada (Silver Medalist, 2010 Vancouver Olympics, Triple
Axel, won World Championships in March, 2010)
o Male Hollywood Celebrities
Sam Worthington (Avatar, Second biggest Hollywood movie
behind Titanic)
Kiosks
o Create Jamba Juice bars in healthclubs, groceries and busy areas utilizing
the same quality and experience as a regular U.S. Jamba Juice store
Events
o Sponsor the Hiroshima 2020 Summer Olympic bid, as well as the
Japanese Olympic athletes with health snack and beverages.
8
Ayumi Hamasaki – Japanese Pop artist, Sam Worthington – Hollywood Actor (Avatar, Clash of The Titans)
International Campaign 22
Sales Promotion
where competing brand, Smoothie King will already be in. The goal is to give consumers the
opportunity to experience Jamba Juice and try the many different beverage and healthy offerings
Public Relations
10
This campaign relies on social networks, technology and consumers to create buzz
about the brand. People who are crowding around the ambient advertising will create intrigue
9
Jamba Juice Buy One, Get One Free Coupon
10
Facebook and Twitter Social Network Icons, Augmented Reality Icon
International Campaign 23
with passers by, who in turn will share their experiences with their peers on social networks
Social networks
o People can share their experiences, drink purchases and ideas with friends.
o Facebook and Twitter
Augmented Reality
o A campaign surrounding this new marketing tool will gain interest from the
press.
Celebrity endorsements and events
Explanation of Strategies
After comparing the differences between the U.S. and Japanese objectives and
developing a marketing communications proposal for Jamba Juice to expand into Japan, it is
important to understand these important cultural considerations the company must make for the
product to be marketed successfully to the Japanese consumer and launch a new concept. The
goal for Jamba Juice is to use the platform that prospered in the U.S., creating a solid foundation
and increased growth with some minor cultural changes. One important change in marketing to
the Japanese consumer is the use of technology as well as integration into groceries and health
clubs which hasn’t been utilized in the U.S. thus far. These changes, if successful, may also
provide an opportunity for the U.S. With an understanding of the Asian market, specifically
Japan and its consumer, the opportunity is evident and despite competition from another U.S.
Smoothie retailer, Jamba Juice has a strong competitive advantage with the young, technology
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International Campaign 25
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