Boost Juice Bars case study: marketing smoothie bars as a healthy alternative to coffee shops

Boost Juice Bars case study: marketing smoothie bars as a healthy alternative to coffee shops

Introduction

This report on Boost Juice Bars forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the company is expanding from its Australian roots into other countries, buoyed by soaring smoothie demand.

Scope

Highlights

Reasons to Purchase

Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market.

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
The smoothie market has experienced rapid growth by delivering consumers healthy convenience 2
Boost Juice Bars is the fastest growing juice business in the southern hemisphere, which is quickly gaining a global presence through franchises 3
Boost Juice Bars was founded in Australia in 2000 by a mother who spotted a gap in the market for healthy drinks 3
Boost has grown quickly through franchises to become a global brand 3
The company now has over 200 stores worldwide and estimated sales of nearly US$100 million 4
Boost Juice Bars target 15-35 year olds, with recruitment and marketing communications an important part of cementing its marketplace positioning 5
Boost employs young, outgoing staff to reflect its healthy product range 5
Boost's VIBE loyalty program reaches over 300,000 members and is a vital communication tool 5
Boost produces a free monthly health focused magazine - Boost Life Magazine - with a circulation of around 160,000 in Australia 6
The company entered the UK market in 2007, which is now one of its most successful markets 7
Boost Juice opened eight UK stores in its first year in the market, and looks set to rival Crussh as the UK's largest smoothie bar business 7
The company is predominately located in shopping centers and other enclosed environments to avoid bad weather damaging sales 8
Boost Juice's Trafford Centre store in Manchester, UK is now its best performing outlet globally 8
Boost Juice Bars has partnered with Nestlé to launch a supermarket range of smoothies in the UK, which has the potential to aid its growth substantially 9
Boosted Smoothies were launched in 2008 with a £5m marketing budget 9
The drink's point of difference is described as its focus on functional ingredients 9
Boosted Smoothies will compete with market leader Innocent, whose strength in the marketplace may be hard to crack 9
APPENDIX 11
Case study series 11
Methodology 11
Secondary sources 11
Further reading 11
Ask the analyst 11
Datamonitor consulting 12
Disclaimer 12
List of Tables
Table 1: As of December 2007, Boost Juice Bars were located in the following countries 4
List of Figures
Figure 1: There is a unfulfilled need for healthy and convenient food and drink options 2
Figure 2: Franchisees speak highly of the company, which now has stores around the world 4
Figure 3: Boost Juice Bars employs young, outgoing staff to appeal to its target demographic 5
Figure 4: Boost Juice's health survey found that its customers were mostly young, single females 6
Figure 5: Boost Life magazine content is designed to appeal to its core customers 7
Figure 6: Boost Juice Bars has introduced the Boosted Juice retail line in the UK in partnership with Nestlé 10