Green Mountain Coffee Roasters Strategy Case

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Spring 2014 Interview
Razorfish

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Green Mountain Coffee Roasters Strategy Case

  1. 1. GMCR Intern Case Presentation March 31, 2014 By Andrea Wong
  2. 2. Agenda  Market Research Key Findings  Company & Customer Analysis  Partnership Analysis  Competitor Analysis  Brand Analysis  Critical Issues and Recommended Strategy  Segmentation, Targeting and Positioning  Marketing Campaign  Product Evolution Challenge: Recognizing the need for change, GMCR has issued a request for proposal to several agencies to develop a site experience and marketing plan to support direct sales of their new home soda-making appliance and related accessories, including a subscription-based loyalty program where customers can have traditional K-Cups as well as instant Coke products delivered directly to their home on a regular basis.
  3. 3. Market Research Key Findings • Americans bought 1.2M+ home carbonators in 2012 including SodaStream • In choosing SodaStream, customers value saving money and saving the planet • Values convenience, control and quick results Growing demand for home-made carbonated drinks • Customers enjoy engaging with brands on social media platforms in real time • Young customers (especially millennials) support green initiatives and companies with a CSR mission More socially and environmentally conscious consumers • Customers want healthy alternatives • Soda sales have declined • Sugar substitutes are readily available Health risks and costs of soda consumption hard to ignore Methodology: Netnography research involved completing searches on Google and popular social media sites. Sources include advertising magazines, academic journals, top newspapers, industry blogs, and retailer reviews.
  4. 4. Market Research Limitations Insufficient data about purchase behavior and customer decision making process. My assumptions include: people who own or want to own a single serve brewing appliance are likely to purchase a home soda-making appliance. Observational Data Focus Group Data In Depth Interviews
  5. 5. Company Analysis Core Competencies Corporate Strategy Competitive Advantage Growing, harvesting and roasting coffee Shape the future by redefining customer experience Innovator of Keurig brewing technology and K cup products Single serve brewing technology Use power of business to make the world a better place Commitment to sustainable business practices Sustainable products Partner for mutual success Strong partnerships Who are we?
  6. 6. Single serve appliance K cups and other products Café express savings club Features No need to grind coffee or brew a whole pot Brews in seconds! Variety selection of recognizable brands Benefits Convenience Quality Choice Values Customer Analysis Why do we purchase?
  7. 7. Partnership with Coca Cola Coca Cola Company Core Competencies Corporate Strategy Competitive Advantage Manufacturing soft drinks and snacks Maximize growth and profitability Global market leader Value chain relationships with bottlers and retailers Use customer value based and multi segmentation strategies Strong brand portfolio Channel marketing Strategic acquisitions and agreements Extensive distribution network Green Mountain Coffee Roaster Core Competencies Corporate Strategy Competitive Advantage Growing, harvesting and roasting coffee Shape the future by redefining customer experience Innovator of Keurig brewing technology and K cup products Single serve brewing technology Use power of business to make the world a better place Commitment to sustainable business practices Sustainable products Partner for mutual success Strong partnerships
  8. 8. Utilizes first mover advantage to provide a smarter, simpler and environmentally friendly way to make/consume carbonated drinks Objective & Strategy Global market leader with proprietary technology; replaceable parts are expensive and limiting Strengths & Weaknesses Super Bowl 2014 backlash (“Sorry Coke and Pepsi”) Partnership with Pepsi Recent Performance & Likely Competitive Response Competitor Analysis
  9. 9. Brand Analysis Green Mountain Coffee Roasters Brand Awareness Brand Meaning and Personality Brand Struggle High Positive Technology Issues Responsive Innovative Price range Responsible Loving Product consistency Coca Cola Company Brand Awareness Brand Meaning and Personality Brand Struggle Very High Complicated Waste management Global Hip Past perceptions Confusing Powerful Negative stigma
  10. 10. Critical Issues Offering a better product than the competitor Delivering a message true to both brands Tackling health concerns
  11. 11. Recommended Strategy  Technology should not need CO2 canister  Remind potential customer why drinking a carbonated drink is a meaningful experience  Offer product line with less sugar
  12. 12. Segmentation,Targeting and Positioning Commercial and Home Business owners serious about pleasing employees Busy, young, aspirational professionals Families who like to entertain and gather For carbonated drinkers who love sharing experiences and making memories, Keurig Cold provides the reason to get together and make every glass a special ocassion.
  13. 13. Site Experience Marketing Campaign From “a revelation in every cup” to “a memory in every glass” A digital platform destination where you can recreate your favorite memory, publish it, encourage your friends to contribute to it, and brand it forever on a custom made Keurig Cold Classic Coca Cola bottle. How it works: Promotional campaign for a limited time only. Step 1. Visit website and log on using Facebook, Instagram, or Twitter Step 2. Brand name your memory with five iconic words Step 3. Upload pictures, tweets, status’ from your social media feeds Step 4. Tag your family and friends so they can contribute to your memory Step 5. Publish, share, save it forever with a special purchase!
  14. 14. Product Evolution Expected Product Core Product Potential Product Combined hot and cold technology Single serve brewing technology Single serve carbonation technology
  15. 15. http://management.fortune.cnn.com/2014/01/30/super-bowl-scarlett-johansson-sodastream/ http://www.digitaltrends.com/home/exactly-much-soda-need-drink-sodastream-worth/ http://news.investors.com/business/030314-691841-sodastream-falls-after-downgrade-despite-sunnyd-deal.htm http://www.bloomberg.com/news/2014-03-29/sodastream-losing-streak-deepens-as-sales-growth-weakens.html http://www.nytimes.com/2014/03/04/business/media/selfies-pizza-and-promoting-brands-at-the-oscars.html?_r=0 http://online.wsj.com/article/PR-CO-20140305-912945.html http://instagram.com/sodastreamusa# https://www.facebook.com/SodaStream https://twitter.com/sodastreamusa http://www.bestbuy.com/site/sodastream-genesis-home-soda-maker-black/2794059.p?id=1218351654584&skuId=2794059#tab=reviews http://www.walmart.com/ip/SodaStream-Jet-Home-Soda-Maker-Starter-Kit/20934482?page=seeAllReviews http://www.amazon.com/SodaStream-Fountain-Maker-Starter-Silver/product-reviews/B00EPEALEM/ref=dp_top_cm_cr_acr_txt?showViewpoints=1 http://adage.com/article/news/coca-cola-keurig-maker-partner-home-beverage-machine/291550/ http://www.nytimes.com/2014/03/01/business/challenges-for-coke-to-stay-on-top.html?_r=0 http://www.eco-business.com/news/water-partnership-programs-and-watershed-responsibilities-interview-cokes-jeff-seabright/ http://www.workinghomeguide.com/17862/coke-announces-its-move-into-home-soda-making-technology http://wallstcheatsheet.com/business/coke-and-dr-pepper-look-to-stevia-to-stem-declining-soda-sales.html/?a=viewall http://www.triplepundit.com/2014/02/coca-cola-green-mountain-coffee-roasters-announce-partnership/ https://www.facebook.com/GreenMountainCoffee https://twitter.com/GreenMtnCoffee https://twitter.com/BrewBetterWorld https://www.facebook.com/cocacola https://twitter.com/CocaColaCo http://instagram.com/cocacola http://www.keuriggreenmountain.com/ http://www.keuriggreenmountain.com/VideoTemplate/3127239885001 http://www.keuriggreenmountain.com/VideoTemplate/3127239885001 http://www.cnet.com/news/sparkling-drink-systems-bids-to-take-the-fizz-out-of-keurig-cold/ http://www.cnet.com/news/keurig-2-0-brews-up-drm-to-freeze-out-copycat-cups/ http://vimeo.com/83692879 http://blog.greenmountaincoffee.com/blog/rob/weve-gone-mobile http://bambooinnovator.com/2014/02/08/why-coca-cola-invested-in-keurig/ http://www.amazon.com/Keurig-K65-Special-Edition-Single/product-reviews/B00AQ9NI36/ref=dp_top_cm_cr_acr_txt?showViewpoints=1 http://www.amazon.com/Variety-K-cup-Coffee-Keurig-Brewers/product-reviews/B007PVABVU/ref=dp_top_cm_cr_acr_txt?showViewpoints=1 http://reviews.costco.com/2070/11537017/keurig-keurig-platinum-single-cup-coffee-brewing-system-reviews/reviews.htm http://www.youtube.com/watch?v=hHDRT6JQ5Hw http://www.raidious.com/stunning-report-from-razorfish-on-digital-brand-experiences/ http://www.slideshare.net/danstpeter/razorfish-digital-brand-experience http://www.nytimes.com/2013/02/27/dining/hacking-home-soda-making-machines.html Sources

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