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
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Keurig: Managing a New Product Launch By: Melissa Bockhold Heather Coddington Laura Duerstock Ali Wampler March 1‚ 2006 TABLE OF CONTENTS I. Introduction……………………………………………………………………3 II. Assumptions…………………………………………………………………...4 III. History………………………………………………………………………....5 IV. SWOT Analysis 1. Two-Cup Approach……………………………………………………….6 2. One-Cup Approach………………………………………………………..7 V. The Coffee Market 1. Market Analysis/Needs/Growth…………………………………………...8 2. Competition………………………………………………………………
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Brewing excellence‚ One cup at a time. Keurig in Dutch means excellence. It is the leading single cup brewing system in North America. The U.S. annual per capita consumption of coffee was estimated to be 424 servings‚ which included in-home and out-of-home roast and ground‚ instant‚ and ready-to-drink (bottled/canned) coffee.2 The total coffee market in 2008 was estimated to be 1.8 billion pounds‚ or $19.3 billion. 3 While specialty coffee was only about 17 percent of total
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KEURIG AT HOME CASE ANALYSIS Main Problem: Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market segment without losing their share of the office coffee segment (OCS) and while maintaining their gourmet coffee quality. They have less than six months to launch the product‚ and very limited budget for production costs and expenses‚ and for changing the curent portion packs. There are two strong competitors in the away from home market‚ Filterfish‚ and Flavia
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Keurig at Home: Managing a New Product Launch Question 1 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: a. Protect the benefits of KAD and Roasters. 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
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Keurig: Convenience‚ Choice‚ and Competitive Brands In 1990‚ John Sylvan and Peter Dragone entered the coffee brewing industry by launching their company Keurig built upon on the question of‚ “why do we brew coffee by the pot when we only drink it by the cup?” Within a few years after their start-up‚ they were able to secure multiple patents as well as acquiring $1 million from venture capitalists to improve upon their prototype. By 1998‚ Keurig‚ which is German for excellence‚ was finally able
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KEURIG CASE 1 - How do Keurig and its partners make money? (You can find information on the sources of profit for Keurig‚ coffee roasters‚ and the KADs from the case.) Ans: Keurig made money some amount of money by selling the brewers from a price range of $500 - $1000.Keurig also made a royalty of $0.04 per K-cup sold. Coffee roasters earned $0.25 per K-cup and KAD made money by selling this K-cup at a mark-up price of $0.40 - $0.50. They also at times charged a small rent. 2 -
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invest in Keurig in 1993. At the same time the company had gone public where Green Mountain would change the way coffee at home and at work was made. It was where the Keurig Single Cup Brewing System would take off. Keurig is well-known as a lead innovator in specialty coffee and coffee makers where its brewing technology and award-winning coffee is in the top ranks with others like Starbucks‚ Peet’s Coffee‚ and Coffee Bean. In order to stay strong with other brands and competitors‚ Keurig has distribution
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The purpose of the Keurig case is to give you the opportunity to recognize the concepts from Chapter 1 in a specific industry and organizational context. Our case discussion should begin to make the concept of competitive advantage more tangible. Also‚ you should start to get a sense of the kinds of data that are useful in internal and external analysis and how it can inform a firm’s strategy. Case Discussion: The question is: Keurig’s competitive advantage? Be prepared to discuss your
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the Keurig has slowly been finding its way into more and more homes. This is due to many factors about the invention. The Keurig has the ability of making exactly one cup of coffee in the size wanted‚ at a much faster time than traditional methods. Even if you are not looking for one cup‚ the Keurig can brew a whole pot of coffee in record time. It can also make many more drinks as well‚ not just coffee. With these ideals and how easy it is to use‚ who wouldn’t want a Keurig in their home.
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