GMCR
Agenda
Agenda1. Coffee Market, Trends & Value Chain
Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand
Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition
Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition4. C...
Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition4. C...
THE MARKET
THE MARKETHistory                                                                                                       fr...
THE MARKETHistory                                                                                                       fr...
THE MARKETHistory                                                                                                       fr...
THE MARKETTrends  Specialty Coffee                                                                Coffee drinkers beca-   ...
THE MARKETTrends  Specialty Coffee                                                                In order to preserve    ...
THE MARKETTrends  Specialty Coffee  „Special geographic microclimates produce beans with  unique flavor profiles, which sh...
THE MARKETValue Chain       Producing Country                                                         Consuming Country   ...
GREEN MOUNTAINCOFFEE ROASTERS
GMCRThe Company    » Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and dis...
GMCRThe Company    » Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and dis...
GMCRMarketing MixProductsK-Cup single-serve coffee / tea / cocoa options / specialty whole beans & ground coffeeBrewing sy...
GMCRCommunication   2006   2012   2012   Clear / Concise   Corporate / Safe   Message Comes Across   Shot in HD / Good Lig...
GMCRBrand Essence                       Performance            Tonality / Personality          What do I stand for? Who am...
GMCRBrand Essence                       Performance            Tonality / Personality          What do I stand for? Who am...
GMCRBrand Essence                       Performance            Tonality / Personality          What do I stand for? Who am...
GMCRBrand Essence                       Performance            Tonality / Personality          What do I stand for? Who am...
GMCRBrand Essence                       Performance            Tonality / Personality          What do I stand for? Who am...
GMCRCore Values       ESTHETICS / DESIGN          FUNCTIONALITY                          Status   Quality                 ...
COMPETITIVE LANDSCAPE
COMPETITIVE LANDSCAPECompetitive SegmentsPrimary» K-Cups and Keurig brewing systems vs. companies that manufacture / marke...
COMPETITIVE LANDSCAPEPositioning                                  Premium / Specialty                                     ...
CONSUMERS
CONSUMERSHighlights 2011» Coffee consumption is growing year by year.» 40% of 18-24 year olds drink coffee daily, up from ...
CONSUMERSTypology                          Every Day                AVID                                                  ...
HOW CAN WE DOBUSINESS TOGETHER?
HOW CAN WE DOBUSINESS TOGETHER?                                               GMCR‘s patent for the Keurig K-cup          ...
HOW CAN WE DOBUSINESS TOGETHER?                                               While concentrating its forces on           ...
HOW CAN WE DOBUSINESS TOGETHER?                                               Brands whose products or services           ...
?/!
SOURCESCompany websiteswww.gmcr.comwww.greenmountaincoffee.comwww.keurig.comwww.starbucks.comwww.dunkindonuts.comwww.folge...
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Green Mountain Coffe Roasters

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Green Mountain Coffe Roasters was a potential client for Renegade Communications - a full service advertising agency. The task was mine to research the brand, the market, its customers and the main insights for the agency, which they could use in their pitch. The presentation shows market history, value chain, competition, communication history, positioning map, target audience segmentation and key learnings for the agency.

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Green Mountain Coffe Roasters

  1. 1. GMCR
  2. 2. Agenda
  3. 3. Agenda1. Coffee Market, Trends & Value Chain
  4. 4. Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand
  5. 5. Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition
  6. 6. Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition4. Consumers
  7. 7. Agenda1. Coffee Market, Trends & Value Chain2. Green Mountain Coffe Roasters - Company, Products & Brand3. Competition4. Consumers5. Where does Renegade fit in?
  8. 8. THE MARKET
  9. 9. THE MARKETHistory from the 80‘s: coffee producers and distributors take coffee to a whole new level 1900-1980: commodity Single-cup coffee brewers Early `90s: Starbucks Early `60s: coffee loses ground to the soft drink indusrty elite expensive beverage till the early 1900`s Growth of the US coffee consumpti- on is fueled by the increased pro- duction of coffee in Latin-America Boston Tea Party 1668: first reference of coffe in the USA
  10. 10. THE MARKETHistory from the 80‘s: coffee producers and distributors take coffee to a whole new level 1900-1980: commodity Single-cup coffee brewers Early `90s: Starbucks Early `60s: coffee loses ground to the soft drink indusrty elite expensive beverage till the early 1900`s Growth of the US coffee consumpti- on is fueled by the increased pro- duction of coffee in Latin-America Boston Tea Party 1668: first reference of coffe in the USA
  11. 11. THE MARKETHistory from the 80‘s: coffee producers and distributors take coffee to a whole new level 1900-1980: commodity Single-cup coffee brewers Early `90s: Starbucks Early `60s: coffee loses ground to the soft drink indusrty elite expensive beverage till the early 1900`s Growth of the US coffee consumpti- on is fueled by the increased pro- duction of coffee in Latin-America Boston Tea Party 1668: first reference of coffe in the USA
  12. 12. THE MARKETTrends Specialty Coffee Coffee drinkers beca- me educated and their „Special geographic microclimates produce beans with bahavior has changed unique flavor profiles, which she referred to as‚ specialty over the last two dece- coffees.“ - Specialty Coffe Organization of America des extremely. Niche audiences beca- Sustainability me more mainstream by the growing num- Educated / Environmentally conciencious consumers bers of their consu- Impact of Coffe Indusrty on Farmers mers. With the growing de- Single-cup Brewers mand of premium qua- lity, specialty coffee, Convenient market players positi- Easy oned themselves ac- Saving Money cordingly. Fun
  13. 13. THE MARKETTrends Specialty Coffee In order to preserve the premium and spe- „Special geographic microclimates produce beans with cialty coffee sources unique flavor profiles, which she referred to as‚ specialty the coffee indusrty has coffees.“ - Specialty Coffe Organization of America to take action. Supporting Farmers Sustainability and their Communities Support Centers Educated / Environmentally conciencious consumers Loan Programs Impact of Coffe Indusrty on Farmers Lowering Emission ... Single-cup Brewers Market players incor- porate sustainability Convenient as a core value of their Easy company and brand. Saving Money Fun
  14. 14. THE MARKETTrends Specialty Coffee „Special geographic microclimates produce beans with unique flavor profiles, which she referred to as‚ specialty coffees.“ - Specialty Coffe Organization of America The popularity of the single cup coffee bre- Sustainability wer has saturated the market with many Educated / Environmentally conciencious consumers different models and Impact of Coffe Indusrty on Farmers types of single cup coffee brewers. Single-cup Brewers Convenient / Clean / Easy / Fresh / Fast / Economical / Fun / Variety
  15. 15. THE MARKETValue Chain Producing Country Consuming Country » Retail Farmers / Import Processing / » Factory » Export » » » Consumer Smallholders Agents Roasting » Catering Fresh Cherries Cleaning / International coffee The roasting can take place either at a Wet / Dry Pro- Packaging trade consists of processing company or at a coffee house. cessing green coffee packed Roasters usually blend coffee of different in 60-kg bags. origin and type together. Beans have to be cle- Finally, the coffee is ground and branded, ared for the market. sold on to the retailers or to the catering units.
  16. 16. GREEN MOUNTAINCOFFEE ROASTERS
  17. 17. GMCRThe Company » Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and distribution facilities » Values based company with a strong sustainability driven purpose, integrated into the business operations » Advocate of high quality, farmer friendly, Fair Trade Coffee » HOUSE OF BRANDS « GMCR Specialty Coffees Keurig Canada Green Mountain Coffee® Keurig® Van Houtte® Tully‘s® Timothy‘s® Diedrich® Coffee People® +sales in Canada
  18. 18. GMCRThe Company » Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and distribution facilities » Values based company with a strong sustainability driven purpose, integrated into the business operations » Advocate of high quality, farmer friendly, Fair Trade Coffee » HOUSE OF BRANDS « GMCR Specialty Coffees Keurig Canada Green Mountain Coffee® Keurig® Van Houtte® Tully‘s® Timothy‘s® Diedrich® Coffee People® +sales in Canada
  19. 19. GMCRMarketing MixProductsK-Cup single-serve coffee / tea / cocoa options / specialty whole beans & ground coffeeBrewing systems: Keurig brewing machines for K-Cups / classic brewers and grinders for specialty coffee productsDistributionK-Cup coffee and Keurig brewing systems - traditional outlets (catalogs, mass, club and specialty retail stores), - non-traditional channels (online retailers), and - in-store consumption - regional coffee shops across the U.S. and Canada (with recent aquisitions)Price:The average price per K-Cup is roughly $0.60 per cup compared toStarbucks: $1.65Dunkin Donuts: $1.397/11: $1.25Standard tabletop Keurig brewers are available in approximately 10 models that vary in functionality (low-high involvement) and price ($100-300).CommunicationHistorically: traditional retail outlets, catalog mailers, and the company website.Nowdays: television commercials and social media
  20. 20. GMCRCommunication 2006 2012 2012 Clear / Concise Corporate / Safe Message Comes Across Shot in HD / Good Lighting / Professional VO / Heavy use of After Effects
  21. 21. GMCRBrand Essence Performance Tonality / Personality What do I stand for? Who am I? My way of communication A leader in specialty coffe and coffee Natural makers with socially responsible Responsible business practices. Premium Passionate Caring Differentiators Signals Benefit & Reason Why How do I look? Passion for coffee Strong values Being conciencious about ecosystems Fair Trade
  22. 22. GMCRBrand Essence Performance Tonality / Personality What do I stand for? Who am I? My way of communication A leader in specialty coffe and coffee Natural makers with socially responsible Responsible business practices. Premium Passionate Caring Differentiators Signals Benefit & Reason Why How do I look? Passion for coffee Strong values Being conciencious about ecosystems Fair Trade
  23. 23. GMCRBrand Essence Performance Tonality / Personality What do I stand for? Who am I? My way of communication A leader in specialty coffe and coffee Natural makers with socially responsible Responsible business practices. Premium Passionate Caring Differentiators Signals Benefit & Reason Why How do I look? Passion for coffee Strong values Supporting Ecosystems Fair Trade
  24. 24. GMCRBrand Essence Performance Tonality / Personality What do I stand for? Who am I? My way of communication A leader in specialty coffe and coffee Natural makers with socially responsible Responsible business practices. Premium Passionate Caring Differentiators Signals Benefit & Reason Why How do I look? Passion for coffee Strong values Supporting Ecosystems Fair Trade
  25. 25. GMCRBrand Essence Performance Tonality / Personality What do I stand for? Who am I? My way of communication A leader in specialty coffe and coffee Natural makers with socially responsible Responsible business practices. Premium Passionate Caring Differentiators Signals Benefit & Reason Why How do I look? Passion for coffee Strong values Supporting Ecosystems Fair Trade
  26. 26. GMCRCore Values ESTHETICS / DESIGN FUNCTIONALITY Status Quality Prestige Price Apperance Design Thinking EMOTIONALITY ETHICS Happyness Sustainability Pride Credibility Adventure Responsibility
  27. 27. COMPETITIVE LANDSCAPE
  28. 28. COMPETITIVE LANDSCAPECompetitive SegmentsPrimary» K-Cups and Keurig brewing systems vs. companies that manufacture / market & supplysimilar product offerings either via retail outlets (i.e. mass/grocery) or brick and mortarestablishments (i.e. coffee houses such as Starbucks).» Other hot and cold coffee and tea beverage brandsSecondary» Substitutes - soft drinks / functional beverages / etc.
  29. 29. COMPETITIVE LANDSCAPEPositioning Premium / Specialty STARBUCKS PEET‘S GREEN DUNKIN MOUNTAIN DONUTS Old-fashioned Hip Functional Emotional MAXWELL HOUSE FOLGERS Conventional
  30. 30. CONSUMERS
  31. 31. CONSUMERSHighlights 2011» Coffee consumption is growing year by year.» 40% of 18-24 year olds drink coffee daily, up from 31% in 2010.» 54% of adults age 25-39, said they drink coffee daily, up from 44% in 2010.»These figures aligned with findings that 29% of those 18-39 felt better about their financial situation than last year, while other age groups did not.» Gourmet/Specialty coffee continues to be a significant portion (37%) of total coffee consumed – indicating that consumers want to maintain coffeequality despite the uncertain economy.At Home Market» 86% of coffee consumers enjoyed their beverage at home compared to 24% who drink out of home past day, on par with 2010 findings. (Note thatthese figures include those who drink coffee both at home and away.)» Penetration is growing in the single serve arena at an average of 1% per year, and 35% of those with a pod system acquired it in the past sixmonths. Purchasers of the pod system are now more likely to use it to replace their current brewer. There is an increased awareness of single-cupsystems with 45% who think the systems are excellent or very good in 2011, compared to 26% in 2007.
  32. 32. CONSUMERSTypology Every Day AVID K-CUP USERS? CLASSIC Effect Taste SPORADIC APPRECI- ATOR CONNOI- SSEUR Rarely
  33. 33. HOW CAN WE DOBUSINESS TOGETHER?
  34. 34. HOW CAN WE DOBUSINESS TOGETHER? GMCR‘s patent for the Keurig K-cup brewers expires in September this year. From that moment on otherBranding / Advertising manufacturers and brands will also» K-cupWars be able to enter the market with» Renew focus on Green Mountain Coffee Brand substitute products. Starbucks already announced itsProduction new single-cup brewer, which is planned to be available for the» Video Template Cooperations public around the holiday season. In order for GMCR to maintain its market position, a smart marketing & advertising strategy is needed.
  35. 35. HOW CAN WE DOBUSINESS TOGETHER? While concentrating its forces on the Keurig Business Unit, GMCR might lose market share and brand awareness for their specialty coffee unit.Branding / Advertising» K-cupWars In order to avoid this Renegade» Renew focus on Green Mountain Coffee Brand can come up with a branding / advertising strategy.Production By» Video Template Cooperations ...Reconstructing the Brand Architecture ...Focusing on B2B (Away from Home) segment ...etc
  36. 36. HOW CAN WE DOBUSINESS TOGETHER? Brands whose products or services are connected to the Keurig brewers, could use advertising cooperations with the main manufacturer, GMCR.Branding / Advertising» K-cupWars Providing a video template for» Renew focus on Green Mountain Coffee Brand these businesses is helpful for every party. The main brand has control over the communication,Production the related products save money and get better production quality.» Video Template Cooperations By providing the production services, Renegade not just works with GMCR, it also gets access to new potential clients.
  37. 37. ?/!
  38. 38. SOURCESCompany websiteswww.gmcr.comwww.greenmountaincoffee.comwww.keurig.comwww.starbucks.comwww.dunkindonuts.comwww.folgers.comInternational Coffee Organiztaionwww.ico.orgNational Coffee Associationwww.ncausa.comUnited States Department of Agriculturewww.usda.govwww.coffee-tea-etc.comhttp://biblioteket.ehl.lu.se/olle/papers/0003180.pdfhttp://www.teacoffeecocoa.org/tcc/Commodities/Coffee/Value-Chainnexis.commintel.comAcademic StudiesAbel, Natalie: Determinants of Customer Loyalty in the Specialty Coffee Indusrty (2009)Casey, Gail et.al.: GMCR, an Integrated Company Analysis (2010)

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