Competitive Analysis
Current Market Conditions Competitive Analysis
Paulette Wise, David Kirkland, and Sandra Johnson
University of Phoenix
Principles of Microeconomics
ECO/365
Dr. Mustafa Sayim
April 01, 2013
Current Market Conditions Competitive Analysis
History and Description of Organization and Product
Mr. Coffee® is a company known for its coffee makers and various coffee products, founded in 1972 by North American Systems, Inc. founder Vincent Marotta, and partner Samuel Glazer in Cleveland Ohio. Mr. Coffee® was the first automatic drip coffee maker that provided both convenience and affordability for household use (history, 2009).
Factors that affect Demand, Supply and Equilibrium Prices
Best known for its pioneering and market-leading automatic drip coffeemakers, Mr. Coffee, Inc. also manufactures iced and hot teamakers, coffee filters, and other small household appliances. In the late 1980s and early 1990s, the company hoped to capitalize on its well-known brand name through new product introductions. In 1992, Mr. Coffee launched the Potato Perfect potato baker, a countertop appliance that gave two potatoes oven-baked flavor and texture in half the time of conventional baking. Other new product introductions followed in rapid succession: the Mr. Coffee Juicer (1992); The Food Dehydrator by Mr. Coffee (1993); and The Breadmaker by Mr. Coffee (1994), and the Mrs. Tea hot teamaker (1995). By 1995, new products contributed about one-third of Mr. Coffee 's total annual sales of $174 million. Privately held from its inception until 1987, the company thrived in the late 1970s and experienced agonizing losses in the late 1980s. Mr. Coffee endured a leveraged buyout and two significant changes in ownership before being acquired by Health O Meter Products, Inc. in 1994. Notwithstanding its difficulties, Mr. Coffee brought two important, yet intangible, assets to the table: its extremely well-recognized brand name and its highly praised distributor network. The new parent
Paulette Wise, David Kirkland, and Sandra Johnson
University of Phoenix
Principles of Microeconomics
ECO/365
Dr. Mustafa Sayim
April 01, 2013
Current Market Conditions Competitive Analysis
History and Description of Organization and Product
Mr. Coffee® is a company known for its coffee makers and various coffee products, founded in 1972 by North American Systems, Inc. founder Vincent Marotta, and partner Samuel Glazer in Cleveland Ohio. Mr. Coffee® was the first automatic drip coffee maker that provided both convenience and affordability for household use (history, 2009).
Factors that affect Demand, Supply and Equilibrium Prices
Best known for its pioneering and market-leading automatic drip coffeemakers, Mr. Coffee, Inc. also manufactures iced and hot teamakers, coffee filters, and other small household appliances. In the late 1980s and early 1990s, the company hoped to capitalize on its well-known brand name through new product introductions. In 1992, Mr. Coffee launched the Potato Perfect potato baker, a countertop appliance that gave two potatoes oven-baked flavor and texture in half the time of conventional baking. Other new product introductions followed in rapid succession: the Mr. Coffee Juicer (1992); The Food Dehydrator by Mr. Coffee (1993); and The Breadmaker by Mr. Coffee (1994), and the Mrs. Tea hot teamaker (1995). By 1995, new products contributed about one-third of Mr. Coffee 's total annual sales of $174 million. Privately held from its inception until 1987, the company thrived in the late 1970s and experienced agonizing losses in the late 1980s. Mr. Coffee endured a leveraged buyout and two significant changes in ownership before being acquired by Health O Meter Products, Inc. in 1994. Notwithstanding its difficulties, Mr. Coffee brought two important, yet intangible, assets to the table: its extremely well-recognized brand name and its highly praised distributor network. The new parent
References: About Mr. Coffee [History/timeline of production]. (2009). Retrieved from http://www.mrcoffee.com/AboutUs.aspx Mr. Coffee. [Entire issue]. (2013). Answers/Mr Coffee. Retrieved from http://www.answers.com/topic/mr-coffee