5-Force Analysis of Keurig Brewing System by Jay Haque

3.2.6.2. Power of Suppliers ......................................................................................................................... 33 3.2.6.3. Power of Buyers ............................................................................................................................. 33 3.6.2.4. Power of Substitutes ...................................................................................................................... 33 3.2.6.5. Intensity of Rivalry ........................................................................................................................ 34 3.2.7. Summary of Industry Analysis ......................................................................................................... 34 3.3.0. Competition Analysis........................................................................................................................ 34 3.3.1. Industry Competitors

Marketing is a competitive field that companies outdo each other to make a profit. Café Campesino is a retail-based company that assists farmers to sell their products in a fair and profitable trade. The American coffee industry is that which is on growth with more than 64% of American drinks an average of a cup of coffee a day. The coffee industry just like other agricultural products is affected by a host of factors from climatic variations to fluctuation of prices. This paper seeks to look at Café Campesino's marketing plan in the coffee industry. The paper appreciates the effect

Keurig Green Mountain Coffee is a company dedicated to providing its customers with the best home beverage making technology as well as the best beverage brands and coffee around the world. They specialize in coffee, tea and coffeemakers. They have a variety of products and product lines that cater to the idea of customizing beverages for the end consumer. This dedication is one that has lasted just over 26 years. While the company initially went public in 1993, it has recently been bought up by JAB Holding Co. in an effort to push the company into a new era of success (Imbert) (Forbes). Keurig’s strong commitment towards environmentally sustainable programs, investment into innovation and strengthening the community’s around it make Keurig Green Mountain an exceptional company to analyze financially and potentially invest in (Forbes).

Although the company is known for their coffee, they also drive a great portion of their revenue from baked good sales, which differs greatly from the Keurig Green Mountain strategy. Dunkin does compete against Dunkin intensely in the New England market, as both companies were founded and based in the area.

Keurig should launch the Keurig-Cup in the at-home market and continue to use the K-Cup in the commercial market. The reasons of separating these two series are listed as follows:

Keurig’s large beverage selection is made possible by its ability to form partnerships and licensing agreements with premium coffee roasters and industry-leading coffeehouses. Roaster partnerships include or have included such companies as:

The Keurig coffee brewer is the leader in the retail market for single serves coffee brewers but it can do better. Keurig has been slowly losing some of its share of the retail market in recent years. In 2011 Keurig controlled 54 percent of the market which is down from its 2010 number of 60 percent and 2009 number of 63 percent (Geller). Keurig needs to take its product and it has to offer and enter into new markets and segments. It mainly needs to focus on the younger and lower income level of its

They have focused on building brand recognition and profitability by growing the business gaining assets to grow the company and products for greater customer satisfaction (About GMCR, 2004-2009). GMCR’s strategy to incorporate current large brands, such as Tully’s, Diedrich, and Keurig has helped to expand their customer base and satisfaction as well as the markets for their products (Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their expansion into new geographical markets and promote the brand. GMCR’s partnership with Keurig creates a larger consumer choice and the addition of agreements to create portion packs for the Keurig with companies such as Starbucks, Dunkin Donuts, and Newman’s Own helps set them apart from the competition (Invest in the Markets, 2011).

The following report details the background and financial position, in regards to receiving credit, of Starbucks Corporation and Caribou Coffee. Starbucks is the largest roaster and retailer of specialty coffee in the world while Caribou is the second largest premium coffeehouse operator in the United States. Both companies offer their coffee product in licensed retail stores and in other commercial segments including grocery stores. Each company has branched out from just coffee by adding items like bottled drinks, teas, espressos and cappuccinos and a line of baked goods to their menus. Each company faces similar risks inherent to

There are many sellers in the market heating up pricing competition. Competitors like McDonald’s, Dunkin Donuts, Peet’s Coffee and other specialty coffee companies incentivize price wars. Furthermore, coffee’s demand is elastic which makes it difficult to increase prices without greatly reducing the demand. This makes differentiation and positioning very important. Also, it is easy for customers to switch from coffee vendors. Whichever company is most convenient for the customer will likely win the business. Competition is a top priority in the industry.

The system allows consumers to buy a variety of coffee and make a cup of coffee that has the quality like the one you would buy in a gourmet coffee house for upwards of $3 to $5. Based on the surveys and focus groups that had been conducted people were looking for convenience, minimal clean-up, and great taste. Keurig made its decision to promote the system based on those factors and with units succeeding in local businesses now was the time to strike, while the “iron is hot”, a large percentage of survey takers said they would gladly buy the units that were proposed based on the information they were given.

Keurig changed its owner structure in 2002. They made agreements with two of its roasters partners that are Van Houtte and GMCR, both acquired 70% stake in the company. Keurig’s single portion system is dependent entirely on the three key elements. a coffee brewer that perfectly controlled the amount, temperature and pressure of water to provide a consistency superior tasting cup of coffee. Crucial differentiation for

The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category.

Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market

This global relationship syndicates The Coca-Cola Company’s unparalleled brand, supply and marketing strengths with Green Mountain’s innovative technology and beverage system expertise. So with the new partnership the Coca-Cola company can reach its 2020 vision by doubling the revenue in the year 2020 and more than that by serving 3 billion plus on every single day. It will also allow Coca-Cola to tap into the fast growing single serve , pod-based business of the cold beverage industry. For Green Mountains it will use the amount invested by Coca-Cola to return the cash to shareholders by share re-purchase system and expand their cold beverage system in the next several years. In this deal Green Mountain is more benefited than the Coca-Cola , but the beverage makers needs to find the ways to sell more carbonated soft drinks to American consumers , the brewing channel which already exists doesn’t change the more enough . Consumers may not be excited about paying, say, $140 for another brewer that makes beverages that are already available in cheap ready-to-drink forms. One specialist estimates that