Competitive Analysis of Keurig

803 Words Nov 28th, 2013 4 Pages
Competitive analysis
In recent months many new single-serve coffee brewers have come to market in the United States. These new competitors are offering consumers many new choices and variations of a single-serve coffee brewers. In turn, this is stepping up pressure Keurig to keep up with its competitors and the markets demand. The three competitors that pose the biggest threat to Keurig are Bunn’s MyCafé unit, Starbucks’ Verismo unit, and the Esio beverage system which is backed by Wal-Mart.
In October Bunn, a leading commercial beverage equipment producer, launched its home version of its single-serve coffee machine called MyCafé. Unfortunately for Keurig, the MyCafé is the first to capitalize on the expiration of Keurig’s patent on
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The new Starbucks brewer will be a threat to competition.
Also in late October, about two-thirds of U.S. Wal-Mart stores started selling a machine made by Esio Beverage Co that makes both hot and cold drinks called the Esio beverage system. This machine does not use K-Cups but uses its own version called e-packs. The Esio is will be the biggest threat to date for Keurig because the Esio will make good coffee but will be “more than just a coffee machine,”(Geller) said Lyle Myers, the company's president . “We have a system for every member of the family,"( Geller) Myers said. He also discusses that the machine can be used all day and, “not just in the morning” (Geller). The Esio has licensing deals with Kraft Foods Group Inc, Campbell Soup Co and Unilever Plc. Esio's will offer some unique drinks like Maxwell House hazelnut coffee, V8 Splash juices, Diet Brisk iced teas, Country Time Lemonade and Crystal Light drinks.

Product strategy 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

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