As representatives "we're booster juice, a juice and smoothie bar dedicated to providing you the premium smoothie experience." We strive to satisfy our customers' needs and hope that they leave with a smile. Our mission is "to provide customers with an incredible healthy alternative to fast food that's great tasting convenient and nutr4itious making it perfectly suited for today's active lifestyle.
Booster juice was founded in 1999 by Dale Wishewan and Jon Amack. The first Booster juice opened on the corner off Broadmoor and Baseline Crossing in Sherwood Park, Alberta. Instead of expanding their business by partnering up with investors they decided to "focus on family people who wanted to leave the world a better place for their kids."
Our team chose Booster Juice as our topic of study because; Booster Juice provides a greater tasting alternative to nutritional supplements. With the growing awareness to obesity we thought that studying Booster Juice would help us gain some perspective on a better nutritional diet.SEGMENTATION
One of the most successful strategies a business uses is target marketing. The first major step in target marketing is market segmentation, which is dividing a market in to smaller groups of buyers' distinct need, characteristics or behaviour. There are four major market segmentations: geographic, demographic, psychographic and behavioural.
Geographic segmentation divides markets into different geographical units such as nations, provinces, regions, cities or neighborhoods. Booster Juice is found in both Canada and the U.S. In Canada, you can find Booster Juice in all provinces, including in the local malls, schools and friendly neighborhoods. Although the U.S. doesn't carry Booster Juice in every state, it does however carry it in Arizona, California, Florida, Idaho, New York, Oregon, Texas, Utah, and Washington. Booster Juice is also found internationally in India, Netherlands, UAE and Saudi Arabia.
Demographic segmentation divides markets into demographic variables like age, sex, family size, income, occupation, education, religion, race and nationality. Booster Juice is available for all ages and genders, races and nationalities. For some people, Booster Juice maybe higher in price than some smoothie bars. However, if you take into consideration what the benefits are, it is worth spending that much for some people.
Psychographic segmentation divides markets into different groups based on social class, lifestyle or personality characteristics. Booster Juice would benefit those people who choose to live the healthy lifestyle. People who prefer smoothies as a meal replacement over fast food would get a benefit. For example, someone who has a diet plan or works out on a daily basis would prefer Booster Juice because it is a healthy alternative and is filling.
Behavioral segmentation divides markets into different groups based on consumer knowledge, attitude, use or response to a product. For example, people who have knowledge in Booster Juice, such as dieticians, body builders, personal trainers or people who have a workout plan would drink Booster Juice more than others.
Booster Juice targets anyone that needs a healthy alternative to fast food. Opening up stores in most gyms, Booster Juice is defining their market to healthier individuals that attend the gym and are looking for a health supplement to boost their energy or provide them with different nutrients.
The concept is selling a healthy lifestyle with products geared toward today's active, health-conscious consumers. Booster Juice positions themselves as the healthy fast food alternative for a healthier lifestyle. It is focused on helping young professionals take a break from their hectic careers.MARKETING MIX
Product: Booster Juice is the name of the company. The smoothies have boosters in them that fit your lifestyle and help you get through the day. The smoothies and the food are a greater tasting alternative to nutritional supplement with real ingredients. Their smart foods are found deep in the Amazon rainforest and Japanese tea fields, and they call them "super foods." Features start with their six different boosters to choose from: High protein, power, tropical, spirit, and life choice, all different for all the lifestyles that are perfect for you. They also have many different juice flavors, healthy food options and on-the-go products. Booster Juice also caters; they have an award winning school lunch program, fundraising opportunities, they'll cater to business meetings and large events, and will also deliver fresh food items. All their smoothies come in decorated styrofoam cups so the chilly flavorful nutritious smoothies don't cool down your hands. Their core benefit is to provide customers with an incredible, healthy alternative to fast food that's great tasting, convenient and nutritious. Customers get a guaranteed satisfaction, and a little card where every time you buy a smoothie you get a stamp and after nine you get the 10th smoothie for free! Customers aren't just buying a smoothie, they are buying a smoothie that has real ingredients and is made right in front of them to show freshness. They also give their "boosters" that provide the energy needed to get through the day. This builds their augmented product around their core benefit of providing a greater tasting alternative to fast food.
Price: Booster Juice's prices are not too expensive because they fit the quality the smoothies and food are made at. You get a decent size of smoothie and just enough food to fill you up for low prices. Considering the amount of the ingredients; fruits, sorbet, yogurt, the booster, and juices, and the size of the container they fill right up to the top for you, these prices are set at a value price which offers just the right combination of quality and service at a fair price. The company is transitioning from the growth stage into the maturity stage. This means that the awareness of the product is out there and sales are growing, however, they are just about to reach their plateau stage where the production is starting to level off.
Place: Booster Juice is greatly distributed. There are about 30 locations in Edmonton with the first one originating in Sherwood Park, Alberta. Booster Juice is also located in the United States, and has recently gone international into India, Netherlands, Saudi Arabia, and UAE. It is not hard to find or get to a Booster Juice because of their vast locations. These locations make it convenient for those who enjoy the nutritional alternative for their healthy lifestyle. Within these areas, Booster Juice is set in places that can reach their target markets; like Club Fit, World Health, and other recreation centers, so that after getting a workout, people can get there post-workout supplement. They are also placed in places near fast food restaurants which allow people to make a selection of either getting something not good for them, or a healthy alternative.
Promotion: The promotional techniques used are advertising in newspapers, flyers, commercials and billboards. They also have a website that is full of useful information that any customer could access. It provides information on how it was founded, its menu, ingredients, locations, employment opportunities, and how to own a franchise. They provide a customer loyalty incentive; they provide you with a card where you buy nine Booster Juice's and you get the tenth one for free. This sales promotion helps encourage sales and boost sagging sales. This also helps with public relations by getting the message to the buyers as "news" rather than sales-directed. Every store you enter, there are customer representatives that greet you with a smile and helps you determine your choice by preferences, lifestyle, and mood. The personal selling by representatives furthers the interest by making the customer feel welcomed and appreciated.Micro Environmental Issues
With the growing demand in the smoothie industry, Booster Juice companies around the world are faced with micro environmental issues that affect the company. The issues that arise can be classified as either strengths or weaknesses.
One of the major strengths to Booster Juice as a company is the fact that it is a franchise. Being a franchise opens up more opportunities for Booster Juices to open up worldwide. This results in the creation of great distribution channels. Currently there are over 200 stores across North America and the franchise has even expanded internationally to include; Saudi Arabia, The Netherlands, India and UAE.
Other strengths are that Booster Juice smoothies are considered to be fresh and high quality. The smoothies are made with fresh fruits and in front of the customers. Other competing companies such as Orange Julius premix their smoothies and simply blend them when the drinks are ordered. Jugo Juice, a similar smoothie bar to Booster Juice use fresh fruits as well however, their smoothie ingredients are prepackaged and put together prior to order.
The biggest weakness any company faces is competition. Booster Juice has many competitors in the smoothie industry. Such companies include: Jugo Juice, Orange Julius, Jamba Juice, Starbucks, Second Cup and various Bubble Tea places. The competition between the smoothie companies is evident because their smoothies are so similar. It is hard for individuals to determine which companies provide the better beverage and which companies add value to the customer's purchase.
The one company that people may view as similar to Booster Juice is Jugo Juice. Both companies offer smoothies that contain real fruits, and offer nutritional supplements that may be added. When an employee (who wished to be unnamed) was asked "what makes your company different from Jugo Juice?" his replay was that "Booster juice makes their smoothies fresh. Fresh, meaning that the smoothie is made in front of the customer. The fruits, sorbet and the boosters are added when the drink is ordered. Yes, Jugo Juice uses fresh fruits as well but they pre-bag the ingredients that go into each smoothie."The same employee in question found that companies such as Second Cup or Starbucks are a bigger competitor that other smoothie bars. This is because Starbucks and Second cup have brand equity. By definition brand equity is "the positive differential effects that knowing the brand name has on customer response to the product or service" (Kotler, P., Armstong, G., Cunningham, P.H., 2008). Chances are that customers are willing to spend more if the Brand that is associated with the product is in high demand and suggests superior quality.
Bubble Tea franchises could potentially prove to be the biggest competitor. This is because these franchises offer such a unique drink. Customers are able to create their own bubble tea drinks by adding in whatever they want. Ingredients may include lychee pieces, coconut pieces, sago jellies, fruits etc. As of right now it is hard to say which direction the bubble tea franchises want to move. However, the bubble tea franchise could start offering nutritional additives to accompany their beverages. This would be a huge weakness for Booster Juice companies because not only would individuals have the option to add different fruits into their drinks but they would also be able to add any extra supplements they needed to create the ultimate healthy drink.Macro Environmental Issues
The macro environment consists of external factors that affect the company. The six major forces of the macro environment are: demographic, economic, natural, technological, political and cultural. With the presence of these six forces in the macro environment opportunities or threats to the company may arise. The forces that affect booster juice the most are the demographic environment, natural environment and the economic environment.Demographic Environment:
With the growing awareness of obesity in all age groups, many individuals are choosing to live a healthier lifestyle. The changing lifestyles open up many opportunities for Booster Juice companies. Booster Juice companies have been able to expand their product line as a result. Instead of simply serving smoothies they have introduced healthy sandwiches and wraps as well. At all Booster Juice places there are also stand that sell protein bars and protein powder.Economic Environment:
From an economic stand point many factors such as income, interest rates and cost of living affect customers purchasing patterns. Income plays an important deciding factor on consumer purchases. The price of Booster Juice smoothies fall within the price range of four to six dollars. This may seem like quite a high price to pay for just a smoothie however, once customers take into consideration what is offered in each of the smoothies they can justify their decision to purchase one. With the recent economic downturn the rate of unemployment has increased. This poses as a threat to company's such as Booster Juice because with individuals being unemployed and money conscious they are less likely to purchase smoothies. They are more likely to weigh the opportunity costs and use the money for another cause.Natural Environment:
Booster Juice uses Styrofoam cups to keep their smoothies cold. The use of Styrofoam is viewed to be more environmentally friendly and easier to recycle than the waxed paper cups. There is a much heated debate over whether or not Styrofoam cups or plastics cups are more eco-friendly. Styrofoam is viewed to be better than plastic cups however; it still contributes to the o-zone depletion by trapping light. This is another threat to Booster Juice because in society today many individuals are now environmentally conscious.
The top factors that management should look at are the factors that affect the demographic environment, the natural environment and the economic environment. These factors should be considered because they are related to each other. Age, sex, and race, which are some areas of focus in the demographic environment, influence the areas of focus for the economic environment. The Natural environment should be taken into consideration as well because natural resources are vital in almost everything that we do. Management should be aware of the growing competition in the smoothie industry and also be aware of the changing demographic environment. Being aware of the current generations will help companies be prosperous.SOCIAL RESPONSIBILITY
"Social responsibility is the principle that companies should contribute to the welfare of society and not be solely focused on creating wealth for the company" (Social Responsibility, n.d.). As a company Booster Juice is committed to being socially responsible by taking an active role in our communities. Booster Juice has donated so much money towards a few different charities including the Juvenile Diabetes Research Foundation, Canadian Feed the Children and Sorrentino's Compassion House. When it comes to the four P's (product, place, price, promotion) Booster Juice continues to practice social responsibility. They offer healthy alternatives to a drink that can fill you up as well as taste great, which is better than going to get a burger. The prices are low cost as well. It is more expensive than a soft drink or a fountain drink, but their smoothies are also are more than just a drink, they can fill you up as well. Booster Juice tends to place its stores mostly closer to healthy food stores such as Subway or Quiznos but it also sometimes places itself next to unhealthy places as well. They do this to get consumers to have to choose between a healthy choice and an unhealthy choice. The promotion that they use to get customers interested is that they are healthy and inexpensive. All of these factors contribute to the companies' responsibility to their consumers. Booster Juice is mostly targeted towards people who are looking to live a healthy lifestyle people who want to eat right and people who are also involved in keeping our environment clean. Social marketing is the implementation design and control of programs seeking to increase the acceptability of a social idea. Booster Juice is not only committed to making sure that there beverages are healthy, they also offer healthy alternatives for food, such as fresh sandwiches, wraps, and panini's that are fresh made every day. This is a great alternative from the fast food chains, to have healthy choices to eat and drink instead of everything deep fried. Booster Juice helps many charities out by donating and raising money. In July of 2007 the CEO of Booster Juice, Dale Wishewan, and the vice president Ed Chykerda played for "team Cross" in the world's longest softball game. They played against "team Stollery" and help to raise $90,000 for both the Cross Cancer Institute and the Stollery Children's Hospital.
Booster Juice has many target markets however; focusing on specific demographic trends will lead the company to success. As a group, there are some recommendations to make the market better. A new target market for Booster Juice can be seniors. They are a larger group of individuals that Booster Juice regularly doesn't serve. Since seniors have the most health concerns, they can use these drinks to improve their wellbeing.
A new product extension Booster Juice could bring out is a weight loss drink. This could benefit everyone but mostly those who are overweight. This will create another target market because the product is right now not targeted towards overweight people. If this weight loss drink was established, more overweight people would drink it because they would want to lose as much body fat as they can. Populations around the world are facing an obesity outbreak, and even now fast food companies are suffering from decreasing sales. This is why a weight loss drink would solve the problems for overweight people.
It's no wonder the success of juice and smoothie bars is signaling the arrival of a new lifestyle and is a sign of the healthier times we are moving towards. People are more aware of the impact of eating well and are adopting healthier lifestyles, and this extends to their choice of refreshments.
Armstrong, G., Cunningham, P. H., & Kotler, P. (2008). Principles of Marketing, Seventh Canadian Edition (7 ed.). New Jersey: Prentice Hall Canada.
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