Keurig At Home Case Study

Green Mountain Coffee Roaster’s Keurig Single Brew system is dominating the U.S. market with an overwhelming market share. Analysts expect sales of single-cup brewing systems to continue to grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig’s current position, based on Michael E. Porters 5-Forces, highlights a number of key areas of opportunity and risk for the company. Handled correctly, the Keurig product line should continue its growth, however, a number of significant pitfalls threaten its dominance.

This marketing plan will show that the solution to Mr. Coffee’s problem is show that the features and technological improvements, specifically the Wi-Fi option, thermal carafe, and optimal brew temperature feature create a good value and great cup of coffee. The plan will rely heavily on channel and image differentiation. This device will be easier to get than pricey Italian entries and the Mr. Coffee brand will be shown to reestablish brand affinity by keying into pop culture references.

As a shopping product, we can expect considerable planning time involved – as it could be considered a “big ticket item” when compared to the everyday coffee brewer, however with price being part of the marketing mix, we plan to price it competitively with its sister-like products, taking in its additional conveniences and manufacturing costs into pricing and revenue management. Introductory cost projections are in the $220-$250 range. With our image already defined in the small electronics industry, we plan to market heavily on the already in-place reputation.

In March of 2015, Keurig acquired DS Services. Through the acquisition of DS Services, Keurig will now be able to offer a new brand of beverages – Javarama. Keurig’s deal with DS Services will allow Keurig to manufacture Javarama and other gourmet roasts through the exclusive K-Cup platform. This acquisition shows Keurig’s commitment to providing its customers with new, desirable products. Keurig Green Mountain is a leader in the industry it operates in.

We are surrounded by many choices when we start our day, such as what we are going to wear, what we are going to eat, and where we are going to get our source of caffeine from to use to start the day. There are so many choices on where to get that caffeine from, outside coffee shops, an old coffee maker, french press, and lastly the newest invention, the Keurig machine. The Keurig machine itself was invented in 1990, with its first machine manufactured in the 2000’s. (Keurig website) It’s very challenging in a modern world like todays, not to be drawn to this neat, and useful device. Looking at it, it can brew a cup of coffee with just the touch of a button in seconds. There isn’t a massive glass jar like an old-fashioned coffee maker would have, instead just enough room for any mug of choice. There is always a question of, what is a Keurig machine? Well, according to the Keurig website, it is a beverage, brewing system used for both commercials, and home use. Instead of usual coffee machines requiring a switch to flip to brew, and a coffee filter, and filling the glass with water, the Keurig allows a small portion called a “K-Cup” which is used to brew the coffee. The middle-aged and adult populations are highly targeted with this new invention. The ad imposes that our lives can be easier with the touch of a button, and boom our source of coffee is delivered within seconds. The advertisement has adequately shown the easy steps one can take to brew a

We are surrounded by many choices when we start are day, such as what we are going to wear, what we are going to eat, and where we are going to get our source of caffeine from to use to start the day. There are so many choices on where to get that caffeine from, outside coffee shops, an old fashioned coffee maker, french press, and lastly the newest invention, the Keurig machine. The Keurig machine itself was invented in 1990, with its first machine manufactured in the 2000’s. (Keurig website) It’s very challenging in a modern world like todays’ not to be drawn to this neat, and useful device. Looking at it, it can brew a cup of coffee with just the touch of a button in seconds. There isn’t a massive glass jar like an old-fashioned coffee maker would have, instead just enough room for any mug of choice. Firstly, what really is a Keurig? Well, according to the Keurig website, it is a beverage brewing system used for both commercial, and home use. Instead of usual coffee machines requiring a switch to flip to brew, and a coffee filter, and filling the glass with water, the Keurig allows a small portion called a “K-Cup” which is used to brew the coffee. The middle aged, and adult populations are highly targeted with this invention. The ad imposes that our lives can be easier with the touch of a button, and boom our source of coffee is delivered within seconds. The advertisement is adequately showing the easy steps one can take to brew a cup of coffee, tea,

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 insist on their plan to launch the new Keurig-Cup even if the GMCR holds the opposite view since it can protect the profits of KAD and roasters when new products are introduced to the market. If Keurig differentiates the at-home market from office market, the previous office brewer users could not go to the direct commercial channel to purchase K-Cups at a lower price (if the at-home used Cups is cheaper). It won’t cause the customer loss of OCS

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).

A prominent part of the morning ritual for many people is a big of cup of coffee. In this day and age there seems to be a Starbucks or coffee shop on every street corner. But it is expensive going out and buying $4 coffee and lattes every morning. In comes the Keurig, a machine that is designed to be put in a kitchen but instead of roasting big pots of coffee it steeps single serving K-cups to make a personal coffee for its consumer. Over the past couple years the industry has exploded having more and more different roasts and flavors. The K-cups are dominating the homemade coffee market because of how simple they are to use. There has been a growing concern with consumers about the K-cups and the machine

Geoff Herzog is the product manager for coffee development at Kraft Foods Canada. After reviewing successful results of single-serve coffee pod systems, he wondered whether it would be successful in other areas. It was July 6, 2004, and Herzog had just learned that Kraft Foods North America was planning an aggressive launch of coffee pods in the United States. He then had only a month to decide whether or not the company should proceed with a simultaneous launch in Canada, or await the U.S. results.

Keurig has been successful in selling its coffee brewing system to the office coffee segment (OCS) of the US market. This success led its leaders to ponder entering the consumer market. While making the move might seem like a reasonable next step in the development of the company core business, it also presents unique challenges.

Hirotaro Higuchi (the protagonist), and CEO of Asahi Breweries, Ltd. must decide if he should increase its production and packaging capacity to meet the supply demands of their distributors, due to the company’s recent developments in the beer industry. Asahi Breweries has launched and seized a huge section of the dry beer market, ensuing from sales growth of 71.9% in comparison to the industry’s growth of 7.6%. A proposal has been made for, increasing their production capacity to 2,100,000 kiloliters to accommodate the recent shortages to their distributors. He has suggested an investment proposal plan of 230 billion yen within two years (1989 to 1990), to increase their brewing and packaging capacity by 30%. Hirotaro Higuchi must decide if he will welcome or dismiss this proposal. “Guiding change may be the ultimate test of a leader- no business survives over the long term if it can’t reinvent itself” (Kotter, 2007).

One of the biggest barriers from GMCR’s standpoint is that they realize they can possible build up sales and marketing for the Keurig system once they start producing and endorsing the product. They are capable of doing so because of the position that GMCR is in as an emerging