Keurig Green Mountain: Kuwait Expansion Keurig Green Mountain has revolutionized the coffee market in the United States and Canada. The company has developed the most innovative brewing technology that offered consumers a single-serving of a wide variety of specialty coffees, coffee makers, teas, and other beverages (Keurig Green Mountain, 2016). In the past two years, Keurig Green Mountain sales have declined in the United States. (Keurig Green Mountain, 2015). The U.S. single-serve coffee market is saturated with alternative coffee sources for consumers. Due to declining revenues and market saturation in the U.S. market, Keurig is looking to expand its coffee brand to Kuwait. Keurig was acquired by JAB Holding Company in December 2015 (WSJ, 2015). JAB Holding Company is looking to expand into the global coffee market to compete with Nestle which is the leader of the global coffee market. The expansion of K-cups and brewing machines to Kuwait will provide an opportunity for Keurig Green Mountain to recover from declining sales in the U.S. market and for JAB Holding Co to gain a competitive position in the global coffee market. The focus of the Keurig expansion to Kuwait is to enter the K-cup and coffee machine sales market to provide the country of Kuwait with a variety of specialty coffee selections to meet consumer demand in the region. This means that it is imperative for Keurig to develop strong business relationships with coffee distributors, suppliers, local
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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.
As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through
Kathy Kudler has shown to be a strong business woman in the face of the gourmet grocer industry. To maintain that reputation Kathy has decided to expand services by both location and offerings. Kathy has researched the growing gourmet grocer market and has found a need in Canada. By researching the market Kathy found the one key product lacking is gourmet coffee. Ms. Kudler as well as other stakeholders of Kudler Fine Foods must enlist the marketing department for the expansion to Canada with new gourmet coffee product to be successful. The marketing department will show the market needs, product description, growth potential and competition in
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:
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).
Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.
Keurig, Inc. was founded on “excellence”, which is the Dutch meaning of its name, and the innovative principle of allowing consumers to be able to make a single excellent cup of coffee whenever they wanted it at home or work with their K-cup single cup brewing system. The Keurig system was such a hit in offices that the company knew the next step was to position themselves to sell units to individuals for use in their homes. At home coffee brewers were always faced with two things loose coffee grounds to clean up and coffee that never quite tasted right. The Keurig system would eliminate both of those issues for the
Keurig Inc has been founded on an amazing idea that coffee making systems that uses individual portion packs of freshly roasted and ground coffee with unique coffee maker designed to brew perfect cup of coffee at a time. At that time there are already established gourmet coffee houses like Starbucks, which is making coffee consumers to spend more money with an average of $ 1.50 or more for a cup of gourmet coffee. This change is consumer behavior created opportunity to Keurig to offer gourmet coffees by a single-cup in offices in 1998. Within a span of four years (1996-2000), Keurig have noticed sales increased by 40% in US at home coffee market. With these facts Keurig´s management got convinced, to develop an at home one-cup coffee brewer especially for gourmet coffee lovers.
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.
Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty
At the basic level, coffee is steeped in Turkey’s culture and lifestyle as well as enjoying the drink among family and friends in an environment conducive to socializing. This is also the fundamental level of Starbucks’ business model of fine quality coffee and stores with welcoming atmospheres designed to appeal to friendly gatherings. Therefore, Tukey and Starbucks seem to be a natural fit in terms of the market. By engaging in licensing, which they had done successfully in other countries, Starbucks was even better able to tap into local knowledge and secure desirable retail locations.