Keurig at Home
Keurig at Home ”Case Study#3”
20 million Americans drank gourmet coffee daily in 2003. As a result of this amount of coffee lovers that can’t start their day without coffee, Keurig. Inc had the idea that they should be able to brew their own perfect cup of coffee any time they need. People started paying $1.50 or more for a cup of gourmet coffee at coffee shops like Starbucks. This gave Keurig. Inc the idea of offering coffees in a single-cup proportion size to offices. After the placement of Keurig brewers, gourmet coffee sales increased by 40% in the U.S at-home coffee market. According to that big percent Keurig management wanted to develop an at-home single cup coffee brewer for coffee lovers. Keurig Inc. targets customers including office users and households; the plan to target offices first and hopes to gain a profitable success with at home users. Keurig Inc. main problem is how to obtain the position they want in the at home coffee market segment without loosing their share of the office coffee OCS segment and maintaining their gourmet coffee quality; on the other hand, they have less than six months to launch the product, and they have very limited budget for production costs and expenses, and changing the portion packs they have.
There are two strong competitors in the away from home market, Filterfish, and Flavia. There are some other competitors in the at-home market. The best strategy for Keurig Inc. is to be the first entrant to the at home market, since they heard rumors that a large number of competitors are getting ready to enter this market, and working hard to be the first in introducing the first.
Keurig inc. alternatives are 1) launch the new model B100 using the existing packaging the K-cup. 2) Launch the new model B100 with developing a new packaging version the Keurig- Cup.
1. Two Cup approach, is not of a big deal to the KAD’s and OCS market since they are used to it and have been doing it for a long time, and it would
20 million Americans drank gourmet coffee daily in 2003. As a result of this amount of coffee lovers that can’t start their day without coffee, Keurig. Inc had the idea that they should be able to brew their own perfect cup of coffee any time they need. People started paying $1.50 or more for a cup of gourmet coffee at coffee shops like Starbucks. This gave Keurig. Inc the idea of offering coffees in a single-cup proportion size to offices. After the placement of Keurig brewers, gourmet coffee sales increased by 40% in the U.S at-home coffee market. According to that big percent Keurig management wanted to develop an at-home single cup coffee brewer for coffee lovers. Keurig Inc. targets customers including office users and households; the plan to target offices first and hopes to gain a profitable success with at home users. Keurig Inc. main problem is how to obtain the position they want in the at home coffee market segment without loosing their share of the office coffee OCS segment and maintaining their gourmet coffee quality; on the other hand, they have less than six months to launch the product, and they have very limited budget for production costs and expenses, and changing the portion packs they have.
There are two strong competitors in the away from home market, Filterfish, and Flavia. There are some other competitors in the at-home market. The best strategy for Keurig Inc. is to be the first entrant to the at home market, since they heard rumors that a large number of competitors are getting ready to enter this market, and working hard to be the first in introducing the first.
Keurig inc. alternatives are 1) launch the new model B100 using the existing packaging the K-cup. 2) Launch the new model B100 with developing a new packaging version the Keurig- Cup.
1. Two Cup approach, is not of a big deal to the KAD’s and OCS market since they are used to it and have been doing it for a long time, and it would