Keurig Case Study

Keurig Case Study
Keurig Case Study
I. Overview
Meaning excellence in Dutch, Keurig, was founded in 1990 by Peter Dragone and John Sylvan. The
founders were on a highly caffeinated mission to completely alter the coffee industry with the
underlying belief that coffee should be served fresh by the cup. They wanted to bring the gourmet
coffeehouse experience to both the home and the office. Dragone and Sylvan wished to not only
make this possible, but to do so in a satisfying, convenient and efficient way.
In 1998, Keurig released their first single–serve brewing coffee machine. The machine could also
serve a cup of hot tea or hot cocoa. In 2006, Keurig merged with Green Mountain Coffee Roasters
(GMCR), which would later lead Keurig to becoming a ... Show more content on Helpwriting.net ...
Porter's Five Forces
a) Threat of New Entrants
As competition in the single–cup brewing market continues to increase, the barrier to entry remains
relatively low. This encourages competitors to enter the market. The competitors are aware that
creating a lower–cost brewing machine that can brew coffee in the pod style (non–patented) would
give them a competitive advantage over Keurig, whose products are considered quite expensive.
Three main competitors include Nestle, Starbucks, Kraft and Mars. All three companies have greater
financial, marketing and operating resources.
b) Bargaining Power of Suppliers
Keurig has a low concentration of suppliers, which therefore limits the bargaining power of these
suppliers.
c) Bargaining Power of Buyers
Buyers ultimately have more bargaining power than the suppliers. This is because Keurig will be
more interested in keeping consumers happy so that they can maintain relationships and brand
loyalty. For example, consumers can demand new flavors of coffee that fit their personal preference.
d) Threats of Substitute
The threat of substitutes is relatively low solely because of the fact that there is a limited number of
substitutes. Keurig is the top Single–brewer coffee machine.
e) Intensity of Rivalry

Companies are more apt to work with Keurig in hopes of making K–cups in their own coffee to be
used by the Keurig single cup brewer. This is more of an
... Get more on HelpWriting.net ...

Keurig Dope
The innovative pods called k cups have turned the world of coffee brewing upside down. A company
called Keurig began making and selling high quality coffee makers in 1992. Six years later, they
developed a coffee brewer that would brew one superior cup of coffee at a time. The little pods of
coffee or tea that would be placed inside the innovative coffee makers were called Keurig cups,
which became k cups.
The key concepts behind k cups are controlled brewing and variety. The amount of finely ground
coffee and tea inside the pods is portioned very precisely. Controlling how much premium coffee or
tea is in the pod is a way of determining the taste of the final product. The k cups developed for a
Keurig Coffee Maker are perfect for offices. Staff can choose from a wide selection of blends and
types and flavors of coffee, teas, and hot cocoa. One pod is used to make one cup of coffee, ... Show
more content on Helpwriting.net ...
Do you remember how that was: some people in the office wanted a very strong coffee and others
preferred a milder blend? With a Keurig coffee maker system, those disagreements are over, because
every person in the office can choose their own type of coffee or tea to drink. Brewing with k cups
makes a perfectly proportioned cup when you are filling a cup of any size. Most of the Keurig coffee
makers have a removable cup tray, which allows you to fill your travel mug.
The same technology that built Keurig coffee makers and k cups for offices goes into the ultra
modern Keurig coffee maker for home use. Controlled, consistent brewing and over 200 varieties of
coffees, teas, hot cocoas, and iced beverages to choose from make Keurig the coffee making
favorite. Being able to choose what type of beverage you like at home morning, noon, and night is a
great treat for you, your family, and your guests. Besides that, a Keurig coffee maker would look
terrific in your

Case Write Up on Keurig Essay
Case Write up Keurig
It is essential that Green Mountain's negotiation succeed because the value proposition that comes
along a new product like the portion pack system. Keurig is a start up coming looking to expand its
business venture and GMCR central location is in the Northeast and they were also looking to
expand the company's geographic existence. With expansion ideas in mind as a common ground for
both companies, it would be smart and beneficial for the companies to work towards this specific
goal. Keurig would make it feasible for GMCR to sell the K–cups it will eventually produce in parts
of the country they are not already connected to once the Keurig goes national. There is major room
for them to grow and to be ... Show more content on Helpwriting.net ...
With this being said they must find ways successfully spread out some the overheads costs that are
in dire need of attention or raise more money. The VC's are saying that they will not receive any
more money until they have proven track of strong sales. A successful negotiation would help
alleviate their economics burdens they are currently incurring this is why it is important so they do
not end up in the worst situation where they cannot get money from the VC's, angels investors or
investments banks and have to go out of business. Keruig has 2 BATNA's the first is they can each
other try to find other roasters to contract with like Starbucks, Swiss Miss, Folgers or more regional
companies like Van Houtte of Canada and Diedrich of South California. Their second BATNA was
to revert back to the old plan and produce their own branded line True North Coffee. Under this plan
they would have to raise a lot more capital from angels and private investors. This approach would
come with a lot of obstacles such as higher costs, possibility of a lower valuation
One of the biggest barriers from GMCR's standpoint is that they realize they can possible build up
sales and marketing for the Keurig system once they start producing and endorsing the product.
They are capable of doing so because of the position that GMCR is in as an emerging

Swot Analysis : Keurig Green Mountain Essay
Introduction
The latest Hoover's market research and analysis indicate the coffee and tea are forecast to grow at
an annual compounded rate of three percent. Keurig Green Mountain is the third largest
manufacturer and distributor of coffee and coffee related products behind both Starbucks and Nestle.
A survey conducted by the National Coffee Association confirms thirteen percent of people drink a
single cup brewed coffee and accounts for $4.3 billion in sales (Oatman, 2014). To capture further
market share and to rebound from a disappointing 2015, Keurig Green Mountain is considering
expanding their operations into Ethiopia. This is a significant undertaking and one that comes with
enormous risks. This paper explores the internal and external risks and opportunities of Keurig
Green Mountain expanding into Ethiopia, the influence of microeconomic factors in the decision–
making process, and the possible scenarios if projections fall short or exceed expectations.
Internal Risks
Bold moves present not only opportunities but exceeding risks. Variations can impact financial
performance and account for these fluctuations should be part of a thorough analysis. Keurig Green
Mountain finds themselves in this position as it relates to expanding their operations. In their 2014
Annual Report to their shareholder, they identify innumerable risks including slumping sales,
distractions from their core business, changes in the industry, loss of a key strategic partner, inability
to

Keurig Green Mountain Essay
Keurig Green Mountain
Christian Derderian
Nick Fazzolari
Miguel Jimenez
Anastasia Zavgorodni
Table of Contents
I. Introduction
II. Industry Economic and Value Chain Analysis
A. Company Competitors
B. Value Chain Analysis
C. Firm's Market Share
D. Industry–wide Technological Developments
E. Economic Analysis
F. Firm's Business Strategy
III. Financial Analysis of the Firm
A. Assess Short–term Liquidity
B. Critique of Capital Structure and Long–term Solvency Issues
C. Firm's Asset Utilization
D. Firm's Operating Performance
E. Meaningful Ratios
IV. Executive Summary
A. Summary Interpretation
B. Z–Score
C. Conclusion
V. Appendix
A. Financial Statements
B. Common Size Statements
I. ... Show more content on Helpwriting.net ...
Although the company is known for their coffee, they also drive a great portion of their revenue
from baked good sales, which differs greatly from the Keurig Green Mountain strategy. Dunkin does
compete against Dunkin intensely in the New England market, as both companies were founded and
based in the area.

B. Value Chain Analysis The Keurig Green Mountain Inc. value chain has seven main steps.
Step 1. Cultivation
Farm management techniques can affect coffee cultivation. Water irrigation isn't used often in the
coffee cultivation because much of the water needed for coffee growing comes from rainfall. Step 2.
Packaging & Shipping After coffee is harvested, it must be dried, packaged in sacks, and
transported. During this stage, energy is sued for drying, storing, and mechanically hulling the
coffee beans. This stage of the value chain also includes transportation of green coffee beans to
facilities. Step 3. Processing Once green coffee beans arrive at facilities, they are roasted and
grinded for packaging. There is an established infrastructure to track the energy use of the roasting
operations in a new way, providing data that is more useful for managing energy efficiency. Step 4.
Packaging After the coffee is roasted it is packaged. This stage of the value chain includes the
physical packaging of the roasted coffee as well as the upstream material requirements for the
packaging itself. Step 5. Distribution After packaging, coffee is

Keurig Green Mountain : Qatar Expansion Essay
Keurig Green Mountain: Kuwait Expansion Keurig Green Mountain has revolutionized the coffee
market in the United States and Canada. The company has developed the most innovative brewing
technology that offered consumers a single–serving of a wide variety of specialty coffees, coffee
makers, teas, and other beverages (Keurig Green Mountain, 2016). In the past two years, Keurig
Green Mountain sales have declined in the United States. (Keurig Green Mountain, 2015). The U.S.
single–serve coffee market is saturated with alternative coffee sources for consumers. Due to
declining revenues and market saturation in the U.S. market, Keurig is looking to expand its coffee
brand to Kuwait. Keurig was acquired by JAB Holding Company in December 2015 (WSJ, 2015).
JAB Holding Company is looking to expand into the global coffee market to compete with Nestle
which is the leader of the global coffee market. The expansion of K–cups and brewing machines to
Kuwait will provide an opportunity for Keurig Green Mountain to recover from declining sales in
the U.S. market and for JAB Holding Co to gain a competitive position in the global coffee market.
The focus of the Keurig expansion to Kuwait is to enter the K–cup and coffee machine sales market
to provide the country of Kuwait with a variety of specialty coffee selections to meet consumer
demand in the region. This means that it is imperative for Keurig to develop strong business
relationships with coffee distributors, suppliers, local

Keurig And The Nespresso Effect
Any article or review I came across talked about the expensive lifestyle a Nespresso machine
demands. The Nespresso machine is a single serve coffee or espresso maker. The only thing is, in
order to get a cup of coffee you first have to buy the pods. The pods can be pretty pricey and are
only sold by Nespresso. According to Penenberg from Pando.com each pod costs about 70 cents,
more or less. If you're looking to buy a cheap coffee maker with cheap coffee, the Nespresso is not
the way to go; but if you're looking to invest some money in a quality machine with good espresso
the Nespresso is right for you. The article I found, written by Adam Penenberg, compares two
different coffee makers: the Keurig and the Nespresso. Penenberg compares

Keurig Green Mountain : A Personal Beverage System Company
About Keurig Green Mountain
Keurig Green Mountain is a personal beverage system company that prides itself in the way they
have redesigned the art of enjoying beverages at home and in the office. From their founding in
1981, Keurig Green Mountain (formerly Green Mountain Coffee Roasters) has always been a
company focused on environmentally conscious and sustainable business practices. Since their
inception, Keurig has grown to include over 80 brands and continues to add to their collection of
more than 575 drink varieties. The Keurig has committed to providing their customers and suppliers
with sustainable products and supply chains. They also give back to all of the world by engaging
communities and their commitment to water stewardship programs (Keurig Green Mountain).
Suppliers
According to Stevenson, supply chain management is the strategic coordination of business
functions within a business organization and throughout its supply chain for the purpose of
integrating supply and demand management. Supply chains are sometimes referred to as value
chains and have two components for each organization: supply and demand. Suppliers, producers
and final customers are connected through the supply chain. Global supply chains have additional
complexities that may not exist in domestic supply markets. Language and cultural differences, and
increased need for trust and cooperation among the supply market are among some of these
complexities. There are also risks that exist among

Competitive Analysis of Keurig
Competitive analysis
In recent months many new single–serve coffee brewers have come to market in the United States.
These new competitors are offering consumers many new choices and variations of a single–serve
coffee brewers. In turn, this is stepping up pressure Keurig to keep up with its competitors and the
markets demand. The three competitors that pose the biggest threat to Keurig are Bunn's MyCafé
unit, Starbucks' Verismo unit, and the Esio beverage system which is backed by Wal–Mart.
In October Bunn, a leading commercial beverage equipment producer, launched its home version of
its single–serve coffee machine called MyCafé. Unfortunately for Keurig, the MyCafé is the first to
capitalize on the expiration of Keurig's patent on ... Show more content on Helpwriting.net ...
The new Starbucks brewer will be a threat to competition.
Also in late October, about two–thirds of U.S. Wal–Mart stores started selling a machine made by
Esio Beverage Co that makes both hot and cold drinks called the Esio beverage system. This
machine does not use K–Cups but uses its own version called e–packs. The Esio is will be the
biggest threat to date for Keurig because the Esio will make good coffee but will be "more than just
a coffee machine,"(Geller) said Lyle Myers, the company's president . "We have a system for every
member of the family,"( Geller) Myers said. He also discusses that the machine can be used all day
and, "not just in the morning" (Geller). The Esio has licensing deals with Kraft Foods Group Inc,
Campbell Soup Co and Unilever Plc. Esio's will offer some unique drinks like Maxwell House
hazelnut coffee, V8 Splash juices, Diet Brisk iced teas, Country Time Lemonade and Crystal Light
drinks.
Product strategy The Keurig coffee brewer is the leader in the retail market for single serves coffee
brewers but it can do better. Keurig has been slowly losing some of its share of the retail market in
recent years. In 2011 Keurig controlled 54 percent of the market which is down from its 2010
number of 60 percent and 2009 number of 63 percent (Geller). Keurig needs to take its product and
it has to offer and enter into new markets and segments. It mainly needs to focus on the younger and
lower income level of its

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 ... Show more content on Helpwriting.net ...
They will rely on their reputation and their KAD's to sell the brewers at the higher prices. 60%
KAD's are going to help sell the keurig single cup system, they will sell between 1.5 and 1
brewer/day. This price is considered to bring profits out of their product. This option will keep
KAD'S and GMCR's happy since there is one cup offered, and for a future successes I would
recommend maintain good relationship with both of these groups A very important objective to
keurig is to create good relationships with high–end retailers to sell the keurg at home brewers. They
are taking the pricing of K–Cups into consideration too. The target market would be willing to pay
$0.55 per K–Cup, based on the market research, this price will allow keurg and the roasters to make
a higher profit per K–Cup and it will still give the KAD pricing control in the OCS market.
Keurig Inc. should show the benefits of the B100 brewer and advertise this product to gain unit sales
by distributing through small appliance retailers like department stores, mass merchants, and kitchen
specialty stores. Keurig should also take part in providing discounts and specials to help raise
awareness and loyalty to the product. Keurig should maintain direct and indirect channels in the at
home market. Try to develop a plane with office managers and key users to prevent the theft of K–
Cups to use at home. Implement the KAD referral program using the point of sale advertising
display material close

Swot Analysis Of Keurig
Keurig characterises itself as a technology–driven, innovative, and values–based personal beverage
systems company. Its multi–brand beverages and beverage systems portfolio has guided Keurig's
business model from the company's inception in 1998 to the present. Keurig sells a variety of
Keurig® brewers and sells specialty coffee pods. Since its early years, the company's beverage
options have expanded to include cold beverages (including iced teas, iced coffees, and iced fruit
brews) in addition to other hot beverages (e.g., hot apple cider, hot teas, and hot cocoa). Keurig has
also extended its reach to market and sell whole bean and ground coffee in bags, fractional
packages, and cans.
Differentiation is Keurig's business–level ... Show more content on Helpwriting.net ...
Both want high–quality coffee served quickly and easily. To satisfy both types of coffee drinkers,
Keurig has formed partnerships and licensing agreements with prestigious, well–known, and
popular brands.
Research and Development
Keurig invests heavily in research and development activities. Between fiscal years 2013 and 2015,
the company invested more than 200–M$ in its R&D programs. Keurig's R&D teams include
scientists and engineers who are critical to the company's innovation strategy. Innovation as a
strategy has facilitated Keurig's rapid product design and development, and has earned the company
leadership position in appliance technology within its industry.
Partnerships, Licensing, and Acquisitions
Keurig's large beverage selection is made possible by its ability to form partnerships and licensing
agreements with premium coffee roasters and industry–leading coffeehouses. Roaster partnerships
include or have included such companies as:
Green Mountain Coffee Roasters;
Diedrich Coffee;
Van Houtte;
Timothy's Coffee of the World; and
Caribou Coffee.
Agreements have also been made with Dunkin' Donuts and Starbucks.
In 2006, Green Mountain Coffee Roasters (GMCR) acquired Keurig and transitioned the company

from a small, privately–held company to a subsidiary wholly owned by a large, public corporation.
The acquisition enabled Keurig, now Keurig Green Mountain, to further its multi–brand strategy.
The agreement

Keurig At Home Case Study
Sonam Mhaskar
New Product Development
Keurig at Home Case Study
Introduction:–
Keurig Inc has been founded on an amazing idea that coffee making systems that uses individual
portion packs of freshly roasted and ground coffee with unique coffee maker designed to brew
perfect cup of coffee at a time. At that time there are already established gourmet coffee houses like
Starbucks, which is making coffee consumers to spend more money with an average of $ 1.50 or
more for a cup of gourmet coffee. This change is consumer behavior created opportunity to Keurig
to offer gourmet coffees by a single–cup in offices in 1998. Within a span of four years (1996–
2000), Keurig have noticed sales increased by 40% in US at home coffee market. With these facts
Keurig´s management got convinced, to develop an at home one–cup coffee brewer especially for
gourmet coffee lovers.
Keurig´s started approaching venture capital for funds to make their concept to a reality of single
cup brewing system and their first target was coffee service market, the B2000 which was launched
in 1998.
Keurig changed its owner structure in 2002. They made agreements with two of its roasters partners
that are Van Houtte and GMCR, both acquired 70% stake in the company. Keurig's single portion
system is dependent entirely on the three key elements. a coffee brewer that perfectly controlled the
amount, temperature and pressure of water to provide a consistency superior tasting cup of coffee.
Crucial differentiation for

Case Study Report :: Green Mountain Coffee & Keurig Coffee...
Company Information
Name :: Green Mountain Coffee Roasters, Keurig Coffee
Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com
Industry :: Processed & Packaged Goods– Coffee Makers
Background & History
Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined
with Keurig in 2006 (About GMCR, 2004–2009). GMCR produces specialty coffee and coffee
makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees.
Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time
rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with
several specialty coffee brewers and Keurig ... Show more content on Helpwriting.net ...
They have focused on building brand recognition and profitability by growing the business gaining
assets to grow the company and products for greater customer satisfaction (About GMCR, 2004–
2009). GMCR's strategy to incorporate current large brands, such as Tully's, Diedrich, and Keurig
has helped to expand their customer base and satisfaction as well as the markets for their products
(Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their
expansion into new geographical markets and promote the brand. GMCR's partnership with Keurig
creates a larger consumer choice and the addition of agreements to create portion packs for the
Keurig with companies such as Starbucks, Dunkin Donuts, and Newman's Own helps set them apart
from the competition (Invest in the Markets, 2011).
GMCR sells their large variety of specialty coffee, coffee makers, cocoa, teas, and other beverages
through supermarkets, several stores, restaurants, hotels, and to distributors in North America
although it is most popular in the Northeast US (Yahoo Finance, 2012). They use their variety in
products

Keurig
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 domestic coffee consumption by volume,
the sector had grown to over half the value of the U.S. coffee industry. 5
The specialty coffee market was estimated to be worth
$11 billion annually.
Specialty coffee consumption had
increased ... Show more content on Helpwriting.net ...
Keurig evolved from its traditional away–from–home, business–to–business (B2B) product offering,
served through KADs, to a new line of at–home, business–to–consumer (B2C) products. Keurig
contracted ePartners, a Microsoft–based software and services consultancy, to design and implement
a system consisting of an integrated suite of products. The complete solution included a system
based on Microsoft Dynamics GP(formerly Great Plains), Microsoft Commerce Server, The Great
Plains Siebel Front Office, and Microsoft SQL Server. System included a highly customized, easy–
to–use, and professional B2B and B2C e–commerce site with full integration to Great Plains and
Great Plains Siebel Front Office. The hosted nature of the system allowed Keurig to keep IT costs
low, maintain high availability, and focus on selling Keurig systems. The IT system served as the
foundation for Keurig's ongoing business and allowed Keurig to keep pace with the tremendous
growth it continued to experience.
The Green Mountain Coffee was good with their prestige, channels, manpower and marketing
experience, Keurig came into an agreement with them in 1997. Keurig kept the licensing for K–cup
that gave them four to five cents per cup almost pure profit. This plan gave Keurig good profits,
cash flows but lower sales.
GMCR and Keurig sold the system through select distribution channels. The system featured

Keurig B70 Is The Right Choice
If you are a regular coffee drinker you might be considering to get a really good coffee maker for
your home. With a good single cup coffee maker, you can get a real coffee–house experience right in
your own kitchen and you can save a lot of money buying expensive coffee several times a day. But
before buying a new coffee maker it is important to consider which one will best fit all your needs.
This review will help you find out if the Keurig B70 is the right choice for you.
Huge selection of drinks and easy to customize
The Keurig B70 has many options for customization and it allows you to make coffee that suits your
own personal preference. But it is quite easy to use even though it has a high level of flexibility.
The Keurig B70 coffee ... Show more content on Helpwriting.net ...
If you are a coffee drinker and you are looking for variety then this machine is right for you. You
will get lots of variety with this single cup coffee maker. The large water container will enable you
to get a different type of coffee, or another hot drink without any preparation time and it is easy and
simple to use. The Keurig B70 can be recommended to anyone who likes to try out many different
flavors. It is also convenient for someone who has many guests, or someone who would like to put it
in an office as a treat to the employees.
Overall, it is a great single cup coffee maker with great features and endless possibilities of
customizing your perfect cup of coffee. You don't limit yourself to a certain brand or flavour you can
change all the time. So if you like variety and great taste then the Keurig B70 would be a decent

The Keurig Green Mountain Coffee Company
The Keurig Green Mountain Coffee Company focuses on the consumer and improving their coffee
experience. Keurig has a variety of products including brewing systems and the beverages that are
brewed in these systems. In my argument, I will be focusing mainly on the brewing systems alone.
Keurig Company has recently began expanding their business in international markets. I will be
evaluating Brazil as a possible country for growth. I will then discuss the potential success and
failures of the Keurig product entering the Brazilian market. This will be followed by an argument
on whether Keurig should or should not pursue expanding into Brazil.
Keurig is a subsidiary of Green Mountain Coffee Roasters Company. The Green Mountain Coffee
Roasters Company provides organic, fair trade, gourmet coffee. When adding Keurig to the Green
Mountain Coffee Company it became an industry leader in specialty coffee, coffee makers, teas, and
multiple other beverage types. Supporting this, in 2014, Keurig sold $4.7 billion worth of product,
totaling $596 million in net income. As a company, they emphasize the importance of social
responsibility. They claim that with the use of K–Cups, 85% of the waste from coffee is diverted
from landfills. The company and its employees have volunteered 57 thousand total hours in
community service. (Keurig Green Mountain, 2015) Between products and employees, Keurig is
successfully reflecting their socially responsible image. The Keurig products that I will

keurig
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..........................................................................9
VI.

Keurig Marketing Strategy
1. Target Market......................................................................11
2. Product
i.
K–Cups (or Keurig Cups)..............................................14
ii.
B100 Brewer............................................................15
iii.
Product Life ... Show more content on Helpwriting.net ...
4
III. History
Timeline of Keurig, Inc. and the North American Coffee Market
Mid1940s
Peak of coffee consumption (16.5 pounds per capita)
Popularity of soft drinks causes coffee consumption to decline
Mid1990s
All–time low of coffee consumption (6.1 pounds per capita)
1992
Keurig's inception
Late
1990s

Gourmet coffeehouses reinvigorate the market
Keurig introduces its single–cup brewing system (B2000 model); 8 varieties of coffee offered
14.8% of brewer distributors offer a single–cup system for the Office Coffee Service
(OCS) market
44.8% of brewer distributors offer a single–cup system for the OCS market
Filterfresh establishes relationship to market Keurig's commercial brewer, thus creating a system
with greater variety of coffees and teas
(February) Ownership structure changes; three largest shareholders become Van Houtte,
Inc. (28%), Green Mountain Coffee Roasters, Inc. (42%), and Memorial Drive Trust
John Whoriskey joins Keurig as the GM of the at–home Division
Keurig's roaster partners ship more than 125 million K–Cups
Total K–Cup shipment since the launch rises over 340 million
Keurig begins working on a line of teas (T–Cups); the first line is to be "Celestial
Seasonings" brand teas
OCS market reaches $3.46 billion in total revenue
Keurig's total number of brewers shipped across North America

SWOT Analysis: Green Mountain Coffee Roaster and Keurig...
The two companies involved in this case study are Green Mountain Coffee Roasters and Keurig
Coffee Inc. They are both in the coffee industry. What is interesting is that Keurig Coffee Inc.
actually started off as "a technology company in the coffee industry where they developed a brewer
that represents a fusion of technology and design" (C36 in the book, [Dess et al, 2012]). Green
Mountain Coffee Roasters' website is http://www.greenmountaincoffee.com and Keurig Coffee
Inc.'s website is http://www.keurig.com
Background and History
Green Mountain Coffee Roasters initially got started in 1981 as a small café in Waitsfield Vermont
and united with Keurig later in 2006. The company produces specialty coffee as well as coffee
makers with the ... Show more content on Helpwriting.net ...
SWOT analysis is a basic model that provides direction and serves as a basis for the development of
marketing plans. In competitor analyses, firms build detailed profiles of each competitor in the
market, focusing especially on their relative competitive strengths and weaknesses using SWOT
analysis.
The company had formulated a customer service charter, clearly projecting both the company
mission statement and products and services offered, so as to inform the staff and customers what
the company standards are. These standards covers quite detailed aspects of the service; such as how
many times the telephone will be allowed to ring until the caller is get response. Other issues might
include how many days between receipt and response for written correspondence and complaints
procedure and timescales for each stage. We look at the strengths weaknesses, opportunities and
threats of Green Mountain Coffee Roasters and Keurig coffee Company in the coffee production and
sale industry.
Strengths
The strengths of this company are many and discussed below is part of them. The company
produces a large variety of product and uniqueness; thereby, attracting a large number of customers.
Another strength that puts the company at an advantage over other companies is the fact that it is
very strong as a brand and is recognized by people all over the world for its quality products.
The company also has the pricing power of coffee

Keurig Research Paper
How to Make Coffee Using a Keurig
The alluring aroma of freshly brewed java is both tantalizing and calming to the senses, so much so,
that most individuals are unable to fathom a morning or a day without a cup of fragrant, hot coffee
in hand. Coffee is one of life's little indulgences that have become a necessity for some, who find it
increasing difficult to live without, as a result, Keurig created an innovative, and unique form of
preparation. The Keurig machine makes it possible for a single serving of coffee, tea, hot chocolate,
or water without the need to clean the machine in between its use. It eliminates the "stale–tasting"
waste that results from the remnants of old coffee, which no coffee drinker desires, and it eradicates
the need to clean the pot or brew basket, all this in less than a minute!
Although the Keurig is considerably easier to operate than a traditional coffee maker, adherence to a
few specific guidelines, are crucial to yield a cup of coffee. First, plug the unit into a power source,
this is essential, and the water reservoir be filled to the maximum water level line; filtered or
purified water work best for optimal results. Second, push the power button and a solid blue
indicator light will turn on, hearing a slight grinding noise is ... Show more content on
Helpwriting.net ...
It enables multiple users to consecutively create varied libations, without the necessity to cleanse the
reservoir, prior to its use. As a result, there is a significant decrease in time and materials wasted,
and it allows for the individual to concentrate their time and energy elsewhere. Finally, clean–up of
the Keurig is limited to the simple removal of the K–cup pod from its reservoir and placed into the
refuse receptacle. Consequently, those who claim an inability to "start the day" are appeased, until

Marketing Strategy For Single Serve Coffee Products,...
Strategic Issue: Throughout the case, it becomes clear that competition may be hindering your
product from leading the market. A limited amount of compact company resources and the constant
technological advancements may prevent the company from performing to the best of its
capabilities. In order to address this issue, we recommend that you investigate our recommendations
to increase market share by implementing the strategies that will be discussed in this memorandum.
Strategic Analysis:
Strengths: When it comes to the market for single–serve coffee products, Keurig holds strong
recognition. Keurig has many popular branding partners such as: Green Mountain Coffee, Bigelow
Tea Company and Caribou Coffee. Other strengths unique to Keurig are the intellectual property and
intangible resources that you possess. Keurig's patents on the machines and their use hold great
value. The widely available nature of Keuring allows for its distribution throughout multiple
channels. These products gain recognition in supermarkets, restaurants, convenience stores, offices,
and hotels.
Weaknesses: Keurig's relatively low expenditures on advertising result in a low global recognition.
Green Mountain Coffee Roaster's inability to predict the K–Cup demand and warranty issues also
should be considered as weaknesses. With the change in technology, consumers are always
expecting more and Keurig has to keep up with new demands as well as product innovation.
Opportunities: Green

The Keurig Machine
The Keurig Machine
We are surrounded by many choices when we start are day, such as what we are going to wear, what
we are going to eat, and where we are going to get our source of caffeine from to use to start the day.
There are so many choices on where to get that caffeine from, outside coffee shops, an old fashioned
coffee maker, french press, and lastly the newest invention, the Keurig machine. The Keurig
machine itself was invented in 1990, with its first machine manufactured in the 2000's. (Keurig
website) It's very challenging in a modern world like todays' not to be drawn to this neat, and useful
device. Looking at it, it can brew a cup of coffee with just the touch of a button in seconds. There
isn't a massive glass jar like an old–fashioned coffee maker would have, instead just enough room
for any mug of choice. Firstly, what really is a Keurig? Well, according to the Keurig website, it is a
beverage brewing system used for both commercial, and home use. Instead of usual coffee machines
requiring a switch to flip to brew, and a coffee filter, and filling the glass with water, the Keurig
allows a small portion called a "K–Cup" which is used to brew the coffee. The middle aged, and
adult populations are highly targeted with this invention. The ad imposes that our lives can be easier
with the touch of a button, and boom our source of coffee is delivered within seconds. The
advertisement is adequately showing the easy steps one can take to brew a cup of coffee, tea,

Manufacturing and Packaging Line
CASE ANALYSIS MEMO – SESSION 06
Keurig
2012.11.07
Entrepreneurial Management
Dr. Sean M. Hackett
Waseda Business School, MBA
Fall, 2012
Panjapol wariratanaroj (pe) – #35112329–5
JOanna chen (joanna) – #35112318–7
li wei – #35122327–5
kemal SADULLAYEV (kemal) – #35129403–1
Gaetano d'imprima (tano) – #35129755–8
I. Identify/Define the Key Issues/Situation Analysis A. Key issues that will impact Keurig to
survive, thrive and grow Strong bargaining power from a supplier: MTS, being the only supplier for
the K–Cup packaging line, has a control over the machine. Having no substitution plan in place,
Keurig is forced to follow MTS's request to fulfill the ... Show more content on Helpwriting.net ...
Enjoy cost–benefits from possibility of lower price from Pilla. 2. Reasons why choice 2 may not be
optimal MTS still have very large bargaining power for future productions. Thus, the cost for K–
Cup packaging line activities could be driven up significantly. Pilla, being financially insecure, can
be a risk for the roll–out schedule in case there is a problem in the manufacturing processes as it
links to the packaging line. Single packaging line supplier and brewer means lower production
capacity compared with Choice 1, this would limit Keurig's future expansion plans to go into the
consumer market.
C. Choice 3 Internalize brewer production and work with multiple packaging line suppliers

1. Significance of choice 3 Keurig will gain more control over the production because it'll be easier
to forecast production capacity and there'll be more inventory control. Kuerig already have the
people and the capabilities that it needs. Finally gaining the learning curve: product brewers will
help Keurig to reduce its production costs and thanks to this reduction it'll be easier to sell more
brewers to distributors at less price and less defected products. Working with multiple suppliers on
the packaging line side will give them less bargaining power making us more "independent". 2.
Reasons why choice 3 may not be optimal A big amount of investment required in

Case Study: Keurig Green Mountain
Keurig Green Mountain (GMCR), the maker of quick–serve coffee machines and those ubiquitous
coffee pods, plans to cut its workforce by 5% after reporting a massive sales slump in the third
quarter, the company said Thursday.
Keurig shares fell nearly 28% in morning trading on the news.
The company said the job cuts are part of a "multi–year productivity program" that will save $300
million over the next three years. The news comes as Keurig says it struggled to sell its coffee
machines and pods in the thirteen weeks ended June 27.
Sales of brewers and accessories fell 26% compared to the same period a year ago, in part due to
high levels of inventory in retail stores and promotions to sell off inventory at lower prices, the
company said.

Group 6 Case 2 Keurig At Home
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 differentiates the at–home market from office market, the previous office
brewer users could not go to the direct commercial channel to purchase K–Cups at a lower price (if
the at–home used Cups is cheaper). It won't cause the customer loss of OCS ... Show more content
on Helpwriting.net ...
To calculate the optimal the Keurig–cup price, we first considered the data from Case Exhibit 7B, to
determine the total percentage of consumers who are willing to purchase at each of the price points.
Keurig–cup Pricing Range
Pricing points
Cumulative Percentage
1 cup/Day
2 cups/Day
$0.55+
$ 0.57
5.10%
14.60%
0.50–0.54
$ 0.52
16.70%
30.70%
0.45–0.49
$ 0.47
20.50%
33.60%
0.40–0.44

$ 0.42
22.00%
41.50%
0.35–0.39
$ 0.37
28.20%
48.20%
0.30–0.34
$ 0.32
41.00%
58.50%
0.25–0.29
$ 0.27
60.30%
75.60%
Then we multiply the cumulative percentage by the ticket price points and coffee consumed per day,
we can obtain the potential ticket revenue per Keurig–cup, as shown below.
Keurig–cup Pricing Range
Pricing points
Cumulative Percentage
1 cup/Day
2 cups/Day
$0.55+
$ 0.57
$0.03
$0.17
0.50–0.54
$ 0.52
$0.09
$0.32
0.45–0.49
$ 0.47
$0.10
$0.32
0.40–0.44
$ 0.42
$0.09
$0.35
0.35–0.39
$ 0.37
$0.10
$0.36
0.30–0.34
$ 0.32

$0.13
$0.37
0.25–0.29
$ 0.27
$0.16
$0.41
In the long run, we would lower the new brewer's price to $99 and increase the Keurig–cup price to
$0.5.
Using the same approach stated above, we multiply the cumulative percentage by the ticket price
points of both Keurig–cups and the brewers, and coffee consumed per day. This time, not

Keurig Green Mountain : Financial Reporting Project
Keurig Green Mountain Financial Reporting Project Professor Erickson 9:15–10:20 Joseph Schmitt
Audrey Steeves Amy Wang Thanpat Wongvajara Keurig Green Mountain Coffee is a company
dedicated to providing its customers with the best home beverage making technology as well as the
best beverage brands and coffee around the world. They specialize in coffee, tea and coffeemakers.
They have a variety of products and product lines that cater to the idea of customizing beverages for
the end consumer. This dedication is one that has lasted just over 26 years. While the company
initially went public in 1993, it has recently been bought up by JAB Holding Co. in an effort to push
the company into a new era of success (Imbert) (Forbes). Keurig's strong commitment towards
environmentally sustainable programs, investment into innovation and strengthening the
community's around it make Keurig Green Mountain an exceptional company to analyze financially
and potentially invest in (Forbes). The stock exchange in which Keurig traded stocks was at The
NASDAQ Global Select Market and their ticker symbol was GMCR. The company's stock price for
January 2, 2015 was $132.81 and for the year ended December 31, 2015 was $90.02. Considering
that Keurig Green Mountain specializes in coffee, tea and coffeemakers, they fall into the
coffeemakers and specialty coffee industry offering a variety of products for their consumers. These
products include Keurig brewers, Keurig Kold brewing systems, Pods

Keurig Case Analysis
KeUrig Case Analysis
Introduction
Keurig has been successful in selling its coffee brewing system to the office coffee segment (OCS)
of the US market. This success led its leaders to ponder entering the consumer market. While
making the move might seem like a reasonable next step in the development of the company core
business, it also presents unique challenges.
The biggest of those challenges concerns the danger of losing the existing OCS business due to a
possible disruption of the unique distribution channels that the company relies on for OCS. The
management also has to decide on the appropriate pricing scheme for its new brewer, which is
further complicated by the proprietary nature of the coffee cup (aka
K–Cup) that comes with ... Show more content on Helpwriting.net ...
Keurig should probably refrain from undercutting KAD by offering lower priced coffee; since
currently KAD offer coffee cups for $0.40–$0.50, pricing slightly above that range will avoid the
undercutting
Our recommendation is to price K–Cups slightly above $0.50 but below $0.58, perhaps at $0.55.
Is Keurig–Cup a necessary fence?
In order to answer this question we first have to consider whether the value provided to the
commercial and residential markets is the same. While it may look like the value is similar, upon
closer inspection, we can identify an important distinction between the values provided to the two
markets:
While the typical residential customer will only value the coffee making ability of the brewer, the
commercial customer will also value the service that comes along with it
In fact, the case alludes to this fact where it says that "Office managers are all about eliminating
headaches".
Hence, even without the two cup system that would have introduced a physical fence, the "products"
offered to the two markets are not equivalent. Therefore, we do not believe that the new Keurig–Cup
is a necessary fence to price discriminate between commercial and residential markets.
Appendix A
Brewer Price Elasticity Price | Log(Price) | Share (%) | Log(Share) | 199 | 2.298853 | 6 | 0.77815125
| 149 | 2.173186 | 9 |

Analysis of the Keurig Website
The Keurig website is a site that mainly focuses to promote their brewer products and sell them to
consumers. They also have many different products to accompany their brewing systems that they
have to offer. This website is indeed helpful and professional since it clearly promotes the product
and allows for easy navigation. It not only lets you shop for the product but also has a section
dedicated to customer service where the audience can view videos about their products. The
navigation is fairly easy to follow and the design makes it easy to read and manipulate. In order to
prove that this website is helpful and professional I will be analyzing the design, content, usefulness,
and how it's organized. When you first go to the home page it has a well–developed and effective
design. The colors complement each other and the white text contrasts nicely with the maroon,
black, and mustard, making it easy to read and user friendly. The main navigation menu is at the top
right after their logo and company name. When you go the store option they have their three main
brewing systems and the names of them along with visuals of each system and products that you can
choose for each system. If you already know what brewing system you are looking for you can also
just go to the brewing system tab instead of the store one and find each separate system listed. The
next tab is the beverages tab

Keurig Green Mountain And Its Operations
After reviewing the financial and performance information related to Keurig Green Mountain and its
operations, I would recommend holding the Keurig Green Mountain stock. Keurig has a high degree
of leverage and has the ability to take on more debt to finance its expansion of operations. As Keurig
Green Mountain navigates managing strong sales in current markets and expanding into untapped
markets, it will also have to manage criticism about sustainability and face legal consequences
stemming from product recalls. Balancing the strong growth potential with challenging strategic
issues will help determine Keurig's unpredictable stock price.
Founded in 1981 in Waitsfield, Vermont, Green Mountain Coffee Roasters invested in Keurig, ...
Show more content on Helpwriting.net ...
The lawsuits against Keurig are detrimental for its image and also represent the possibility of lost
earnings from more recalls and future settlements.
In February 2015, Keurig announced a contractual stock repurchase plan. Keurig Green Mountain
reached an agreement to repurchase over 5 million shares of Keurig's common stock from Luigi
Lavazza at a price of $119.18 per share. (The purchase price represents a 3.0% discount off the
closing price of Keurig common stock on February 20, 2015). This repurchase will be financed
through Keurig's cash reserves and existing credit. Stock repurchase programs are often used by
companies as an efficient use of excess cash. Stock buyback programs are often regarded as signal
that shares are undervalued and are expected to rise in the future.
In March of 2015, Keurig acquired DS Services. Through the acquisition of DS Services, Keurig
will now be able to offer a new brand of beverages – Javarama. Keurig's deal with DS Services will
allow Keurig to manufacture Javarama and other gourmet roasts through the exclusive K–Cup
platform. This acquisition shows Keurig's commitment to providing its customers with new,
desirable products. Keurig Green Mountain is a leader in the industry it operates in.
Keurig Green Mountain has experienced steady growth in

The Revolutionary Coffee Company, And The Variables That...
Section One – Background
The Keurig case study is an interesting examination of the revolutionary coffee company, and the
variables that will shape the future of the company and industry. The basis of the Keurig case study
is the transition for niche product aiming for the mainstream success of everyday use by consumers
in their homes, to one of the industry leaders among the coffee industry giants. "Keurig had been
founded to commercialize an innovative technology that allowed coffee lovers to brew one perfect
cup of coffee at a time" (Hitt, Hoskisson, & Ireland, 2016, p.C–87). Hence, the attempt to create a
new segment within the coffee industry would take time, and education efforts to promote and sell
the benefits of the new coffee makers. After 11 years of trying to perfect the desired product the
company believed could change the industry, Keurig was able to develop the K–cup.
The K–cup brand was built of the idea of the consumer being able to brew a single cup of coffee at
the perfect temperature and superior tasting at the convenience of their home (Hitt, Hoskisson, &
Ireland, 2016, p.C–87). As a result, this new product began to set the market on fire because the new
features were never available for customers, which in turn created the issue of competition. Patents
are key to protecting the intellectual property that generates the sources of knowledge, technology,
and designs used by companies such as Keurig to obtain and maintain an advantage within the

The Keurig Machine
The Keurig Machine
We are surrounded by many choices when we start our day, such as what we are going to wear, what
we are going to eat, and where we are going to get our source of caffeine from to use to start the day.
There are so many choices on where to get that caffeine from, outside coffee shops, an old coffee
maker, french press, and lastly the newest invention, the Keurig machine. The Keurig machine itself
was invented in 1990, with its first machine manufactured in the 2000's. (Keurig website) It's very
challenging in a modern world like todays, not to be drawn to this neat, and useful device. Looking
at it, it can brew a cup of coffee with just the touch of a button in seconds. There isn't a massive
glass jar like an old–fashioned coffee maker would have, instead just enough room for any mug of
choice. There is always a question of, what is a Keurig machine? Well, according to the Keurig
website, it is a beverage, brewing system used for both commercials, and home use. Instead of usual
coffee machines requiring a switch to flip to brew, and a coffee filter, and filling the glass with
water, the Keurig allows a small portion called a "K–Cup" which is used to brew the coffee. The
middle–aged and adult populations are highly targeted with this new invention. The ad imposes that
our lives can be easier with the touch of a button, and boom our source of coffee is delivered within
seconds. The advertisement has adequately shown the easy steps one can take to brew a

KEURIG AT HOME CASE ANALYSIS NehaS
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. There are some other
competitors in the at–home market. In my opinion, this is marketing–mix problem and the end goal
is to maximize the at–home segment and protect the established OCS business.
Strategic Situation Facing The Management:
The 2 ... Show more content on Helpwriting.net ...
A) Brewer – Skimming strategy
Premium launching at $299 to cover costs incurred in R&D. Competitive positioning based
onspeed, convenience/ cleanliness of preparation, ease of usage and taste consistency. The profit
generated will help in developing a new basic model with lower cost, priced at $129 to cater to
customers who are willing to buy the brewer at a lower price. Thus, they can profit by covering high
manufacturing costs initially and bracing up for the price war against competitors by introducing the
basic model.
B) Cups – Penetration strategy @ $0.50 per K–cup
44% of intercept customers are willing to pay $0.55 for a K–cup, 30% of interested customers were
willing to pay $0.50 or more for a K–cup. By pricing the K–cup for $0.50,which is similar to Kcups
in the OCS market, KADs will not lose revenue from their segment. Premium flavor cups for the at–
home segment be priced at $0.60 per cup.
III) PLACE / DISTRIBUTION STRATEGY
Blend of direct marketing through Internet and traditional retail channel.
A) Short term plan: Direct marketing through website is apt for selling to the 12000customers who
are waiting for the brewer for the home market. It is also convenient at targeting Keurig–aware
customers. This can be executed by taking advantage of both Keurig's and the roaster's websites.
Also, create an online shopping experience similar to Amazon. This trims down distribution costs
and also

Keurig Case Analysis
Strategic Issue: Throughout the case, it becomes clear that competition may be hindering your
product from leading the market. A limited amount of compact company resources and the constant
technological advancements may prevent the company from performing to the best of its
capabilities. In order to address this issue, we recommend that you investigate our recommendations
to increase market share by implementing the strategies that will be discussed in this memorandum.
Strategic Analysis:
Strengths: When it comes to the market for single–serve coffee products, Keurig holds strong
recognition. Keurig has many popular branding partners such as: Green Mountain Coffee, Bigelow
Tea Company and Caribou Coffee. Other strengths unique to Keurig are the intellectual property and
intangible resources that you possess. Keurig's patents on the machines and their use hold great
value. The widely available nature of Keurig allows for its distribution throughout multiple
channels. These products have gained recognition in supermarkets, restaurants, convenience stores,
offices, and hotels.
Weaknesses: Keurig's relatively low expenditures on advertising result in a low global recognition.
Green Mountain Coffee Roaster's inability to predict the K–Cup demand and warranty issues also
should be considered as weaknesses. With the change in technology, consumers are always
expecting more and Keurig has to keep up with new demands as well as product innovation.
Opportunities:

Competitors Of Keurig And Starbucks Verismo
When it comes to capsule coffee machines, the top two competitors of Nespresso are Keurig and
Starbucks Verismo. As reported by A National Coffee Association, "the number of American
households that own single–serve coffee machines has gone up"; since they provide many great
benefits such as ease of use, time –saving, low maintenances, or automatic turn–off after use (Shah,
2015). As a result, various companies start entering into this fast–growing coffee market by offering
many machines different in designs and quality features to target this trend's consumers.
The first competitor is Keurig. It is an American coffee machine company that directly competes
with Nespresso. It also produces premium coffee and coffee capsules; and is known for

Keurig case
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 to launch their first industrial
strength, single–serve machine delivering a perfect cup of coffee every time. Keurig was lucky to
join the coffee market at the dawn of its explosion, when consumers' wants and needs began to shy
away from ... Show more content on Helpwriting.net ...
If Keurig wants to be able to compete with the other industry leaders, it is essential that they take the
time to do careful research, then implement their strategy for expanding abroad.
Recommendation 2: Follow GMCR's 2012 initiatives with increased innovation
With the expiration of Keurig's patents coming to a near, it is crucial that Keurig be on the defensive
end for a while and prepare themselves for any major market moves. In order to prepare themselves,
Keurig must also have some tricks up their sleeve to keep their market share and diversification high
because of the relatively low barriers to entry.
There were two of GMCR's 2012 initiatives that stood out as good plans for attack. The first one
dealt with launching new coffee makers such as the Rivo Cappuccino and Latte System as well as
new variety blends to accompany them. When their patent expires, launching a completely new
product with new patents will pave the way for increased market share. Keurig will be able to
compete in a much broader market and can appeal to greater amounts of consumers.
In addition to developing new variety packs, it is also essential that Keurig pursue more beverage
options to appeal to a broader market. For instance, GMCR mention introducing a Wellness Brewed
line to include healthy beverages containing vitamins and antioxidant ingredients. Keurig must
continue growth between certain partnerships

5-Force Analysis of Keurig Brewing System by Jay Haque
Abstract
Green Mountain Coffee Roaster's Keurig Single Brew system is dominating the U.S. market with an
overwhelming market share. Analysts expect sales of single–cup brewing systems to continue to
grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig's current
position, based on Michael E. Porters 5–Forces, highlights a number of key areas of opportunity and
risk for the company. Handled correctly, the Keurig product line should continue its growth,
however, a number of significant pitfalls threaten its dominance. Keywords: Green Mountain Coffee
Roasters, Keurig
5–Force Analysis of the Keurig Single Brew Coffee System
Rivalry Consumers considering single–cup brew coffee units are looking for ... Show more content
on Helpwriting.net ...
Power of Suppliers GMCR's warns of the potential impact of the price of coffee on the gross profit
margin. To combat this, GMCR had made a number of purchase commitments to ensure an adequate
supply of coffee (GMCR Annual Report, 2010). The market price for coffee is impacted by
numerous factors including weather, economy, and competition. It is vital that GMCR continue to
take proactive measures to secure against unforeseen spikes in coffee prices. The price of coffee
does not only impact GMCR's ability produce coffee for the Keurig brewer under its namesake but
impacts their partner suppliers as well. GMCR purchases coffee from brokers, farms, estates, and
cooperative groups and essentially diversifies its coffee supply, reducing some supply risk (GMCR
Annual Report, 2010). Suppliers such as Starbucks and Dunkin Donuts are marquee names in the
coffee business. The brands are powerful and offer significant value to the Keurig product line.
GMCR must continue to build similar relationships and retain them for the long term. These strong
brand names not only offer a new target customer they also reaffirm Keurig positioning as premium
product. The bargaining power of these suppliers will vary based on size and brand. GMCR must
determine its power when negotiating future deals with such suppliers, in cases like Starbucks,
GMCR should be willing to give more (accept lower royalty) to continue building the brand.
Power of Buyers Patents protecting the K–Cup

Keurig Inc Essay
Case Study – Case 6–7: Keurig, Inc.
Toni Mardry
MKT/575
April 29, 2012
Matt Mardoon
* *
Introduction
Keurig, Inc. was founded on "excellence", which is the Dutch meaning of its name, and the
innovative principle of allowing consumers to be able to make a single excellent cup of coffee
whenever they wanted it at home or work with their K–cup single cup brewing system. The Keurig
system was such a hit in offices that the company knew the next step was to position themselves to
sell units to individuals for use in their homes. At home coffee brewers were always faced with two
things loose coffee grounds to clean up and coffee that never quite tasted right. The Keurig system
would eliminate both of those issues for the ... Show more content on Helpwriting.net ...
The system allows consumers to buy a variety of coffee and make a cup of coffee that has the
quality like the one you would buy in a gourmet coffee house for upwards of $3 to $5. Based on the
surveys and focus groups that had been conducted people were looking for convenience, minimal
clean–up, and great taste. Keurig made its decision to promote the system based on those factors and
with units succeeding in local businesses now was the time to strike, while the "iron is hot", a large
percentage of survey takers said they would gladly buy the units that were proposed based on the
information they were given.
Pricing strategies
The successful market of Starbucks and other successful coffee houses has made it okay to spend
$1.50 or more for a good quality coffee and even more for specialty drinks. Considering the trend in
successful coffee houses and the cost of the drinks, it opened the door for Keurig to produce high
quality low maintenance units for the home and office. Keurig conducted multiple market research
polls to reach its price points, ensuring that once units are released they are something that
customers will buy without hesitation. Price points were anywhere in the range of $199 to $299
(Cravens &

Case Study: Keurig Green Mountain
Keurig Green Mountain: Risk The expansion of Keurig Green Mountain products to Kuwait include
some risks to the organization, but the company must assume some risk in order to capture gains and
competitive advantage. The expansion is a strategy designed to support sales growth and to establish
competitive advantage in global coffee market. Kaplan & Mikes (2012) emphasized that companies
accept some risk to generate returns from strategy. Strategies that demand high returns on
investment require companies to assume more risk. Keurig Green Mountain will assume some level
of risk with the expansion of Keurig products to Kuwait. The company must evaluate internal,
external, microeconomic and financial risks associate with the new investments. Internal risks of
Keurig Green Mountain include lack of global brand recognition, customization of products, and
cost. External risks are macroeconomic factors to include the economic conditions of Kuwait and
the regulatory and legal structure of the country. The most critical microeconomic risks associated
with expansion to Kuwait include competitors in the market, establishing competitive pricing for
products, and consumers. An analysis of projected financial ... Show more content on
Helpwriting.net ...
Nespresso Coffee in Kuwait offers coffee product solutions to businesses, hotels, restaurants, luxury
retailers, and airlines (Nespresso, 2016). Keurig Green Mountain has an excellent opportunity to
enter the coffee market in Kuwait to provide consumers with a larger variety of specialty single–cup
coffee options in the home and local business environment. Keurig has a significant advantage over
Nespresso in regards to coffee selection. Nespresso coffee machines only brew coffee, expresso,
cappuccino, and off brand teas and hot chocolate. Keurig has established well–known brands to
include Starbucks, Dunkin, Celestial Seasoning, Folgers, and many

Case Study Of Keurig Green Mountain
Keurig Green Mountain, previously owned by Keurig, Inc., was introduced in 1998. Beginning as a
vision in the 70's, the goal of the company was to solve a typical office problem; a full pot of coffee
sitting, growing bitter, dense, and stale. The vision was a single cup coffee brewer. In 1992, a
business plan was formed and partnerships were made. John Sylvan, the man with the plan, called in
Peter Dragone, a former college roommate and director of finance at Chiquita, and Keurig was
founded. But the vision and the plan were not enough. They needed funding. In order to quit making
their coffee pods by hand and make their single coffee brewers more reliable, they sought the help
Dick Sweeny to automate the manufacturing process while

Keurig's Swot Analysis (2008)
Keurig's strategy continues to be differentiation. The company has managed to outperform its
competitors by offering high–quality single–cup coffee brewers and a wide variety of coffee portion
packs called K–Cups. Users of Keurig brewers can enjoy a cup of great tasting coffee, tea or hot
cocoa every time. The cup of coffee is brewed in less than a minute, there is no need to grind coffee
or use filters, and cleaning up is as easy as it gets. Keurig brewers use coffee portion packs called
K–Cups. There are over 200 different blends and flavors available from 13 brands, including
Newman's Own, Tully's, Celestial Seasonings, Bigelow, Emeril's, and Caribou.
Keurig is the leading single–cup brewing system in the at–home market, with 82 ... Show more
content on Helpwriting.net ...
The additional revenue generated by the additional sale of K–Cups would offset the losses incurred
by lowering the prices of the brewers. Another opportunity that Keurig could take advantage of is to
license additional coffee roasting companies to package their products in K–Cups. Keurig's revenues
would increase as a result of the increased royalties paid by the licensed roasters, and the increase in
variety may motivate more coffee consumers to purchase a Keurig single–cup brewer. Additionally,
Keurig could seek to increase the number of office coffee system distributors that distribute Keurig's
products. Lastly, Keurig could effectively publicize its involvement with socially and
environmentally responsible causes in order to improve brand image and increase brand awareness.
Threats
The most obvious threat right now is the difficult consumer economy that may lead consumers to
cut back on their spending causing a decrease in demand for Keurig's premium–priced products. The
price fluctuations of coffee represent another threat to Keurig's competitiveness. In May 2008,
Green Mountain Coffee implemented its first prices increase since 2005. The 8 to 12 percent
increase on coffee products was the result of several factors, including a sharp escalation in the price
of green coffee, increases in other raw materials, and higher energy and fuel costs. Keurig

Keurig Case Study

Recommended

Recommended

More Related Content

Similar to Keurig Case Study

Similar to Keurig Case Study (13)

More from Cecilia Lucero

More from Cecilia Lucero (20)

Recently uploaded

Recently uploaded (20)

Keurig Case Study