Jamba Juice Case Study

1200 Words3 Pages

If you bought a smoothie recently you may have been shocked at the price. Jamba Juice is a well-known smoothie chain, and it strives in promoting a healthy living style. When you bought this smoothie you maybe thought you were paying for the health benefits or quality. But that isn’t true, you were paying for the product and materials that went into serving that smoothie. Jamba Juice was simple back in 2008, only serving smoothies, but began a strategic move to transform. Consumers wanted more than something they can drink, they wanted food too. Jamba’s mission to transform began and the prices changed with it. By 2014, Jamba Juice began serving fresh juices, whole food smoothies, nutritional smoothies and food items (“Jamba Juice,” n.d.). But why did smoothie prices have to change? Well, many factors contribute to the cause. On one side, demand …show more content…

So as Jamba Juice transformed so did its prices. Now one thing to keep in mind Jamba Juice specializes in smoothies and juices, and there are no other big firms that supply smoothies. So up until 2012, a small Jamba Juice smoothie costed $3.19, but when the company went “eco-friendly” from Styrofoam to Double Walled Paper cups prices rose .60 cents and stayed dormant at $3.79 for a good 3 years (Alexander, 2014). Although there is a change to the input in supply, the demand stays the same and eventually falls back to equilibrium. Then in prices rose again in July 2015 from $3.79 to $3.99 for a small Jamba Juice smoothie to compensate for the minimum wage increase that took place. Now you think, “Oh no big deal right?” Wrong. Consumers noticed, they noticed even more when prices rose again 3 months later in October that same year to $4.79 for a small smoothie. So in the span of 6 months Jamba Juice had raised their price $1.00 (Jamba Juice Company, n.d.). Although they noticed it did not really change the market for Jamba

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