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Keurig case study
Keurig business analysis
Keurig business analysis
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In the beginning of 2002, coffee-machine manufacturer Keurig Incorporated was a privately held company worth a little over twenty million dollars in revenues. In 2003, John Whoriskey, vice president and general manager of Keurig Incorporated At Home division, launched their very first single-serve coffee machine (Keurig B100), which provided more than seventy-five variety of flavors of coffee, to compete with the At Home (AH) marketplace. The company then faced many challenges which was for example manufacturing costs and creating a retail launch strategy. Moving forward to 2011, Keurig is now a wholly owned subsidiary of Green Mountain Coffee Roasters, Inc., which was a publicly traded company with market capitalization of between eight …show more content…
It enabled superior tasting coffee. Keurig was unique in the way that they had a patented portion pack system. It contained the coffee beans and also the filter system. Another unique element was the coffee replicate system which allowed the issue of choice like in gourmet coffeehouse. Keurig coffee was produced by four coffee roasters creating more than 75 varieties available. These partners included GMCR, Dietrich Coffee, Van Houtte, and Timothy’s coffee. In the initial market entrance, the company was owned by three shareholders MDT, GMCR and Van Houtte. Keurig was developed with the need to understand the coffee lovers. The coffee selection ordeal was based on the licensing arrangement with the coffee …show more content…
Keurig continues to strive to make themselves better. The company constantly works on growth and development. Proven through their differentiated line of products. Their “Good, Better, Best” line of products have given the market, average to high scale coffee makers in order to give their customers a choice of the coffee maker that is right for them. For example, the “good” B40 model and the “best” B60 model differed in price by about a hundred dollars and provided the consumer with a choice in function and brewing capabilities. Keurig has learned to give the people a choice. When they first launched their product they offered over seventy five flavor options to their consumers and have continued to establish themselves as a company of variety by partnering with firms such as Starbucks, Folger’s Gourmet Selections and Dunkin’ Donuts . They’ve noticed their weaknesses and have continuously strived for continued growth. For example, although they started out as a company whose products can only be purchased online, they listened to their market and extended their chain to be featured, purchased, and demonstrated at several retail locations - putting the power of choice into the buyer’s
Seattle-based Starbucks recently announced another price increase for all milk-based beverages at the largest coffeehouse/coffee bar chain in the world. With its trendy appeal and shop on every block personality, Starbucks built itself into one of the premiere brands in the world alongside Google, McDonalds, and Coke. With growth comes competition from all directions. Along with longtime Starbucks enemy Dunkin Doughnuts, a new contender for the java king title has emerged as new java joint, High Point Coffee pushes its way into the fray. Based in Mississippi, the newbie java spot has only been in business for less than five years. However, with its surge in revenues and customer retention, executives recently decided to push the brand nationally, going into direct competition with what they call
Keurig Green Mountain’s Acquisition of Dr. Pepper Snapple has led to the creation of a newly merged company Keurig Dr. Pepper. This paper will analyze the merger, the nonalcoholic beverage industry that both companies compete in, as well as the strategies that both companies have had prior to the merger and how those strategies change in a combined venture. The overall value of the purchase will be looked at as well as any benefits that can be achieved for the Keurig brand by acquiring Dr. Pepper Snapple.
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.
. The Kold machine will be Keurig's first machine to make cold beverages. One of the primary features that the Kold machine will have is top brands such as Coca-Cola making themselves available to be used with the machine. Keurig is emphasizing the different choices of name-brand beverages and the technology to show value of the machine to consumers. Brands that are well known besides Coca-Cola, such as Dr Pepper are as well making themselves available to use with the Kold Machine. One of their huge competitors, SodaStream, does not have such a variety of distribution deals (they have one with PepsiCo Inc.). By affiliating with top brands, Kold is trying to appeal themselves to consumers. 2. A factor from the external marketing environment that could make the Kold machine a success is the technological changes.
“Coffee has become more than just a shot of caffeine. It 's a $30 billion-a-year national industry, a foodie fixation, an affordable luxury, a boost of disease-fighting antioxidants, a versatile ingredient, an intoxicating aroma and a beverage that brings people together.” Because of all these factors, Starbucks has a very diverse audience and numerous competitors in the industry. As of 2011, coffee shops have maintained an average growth rate of 7% a year, and Starbucks alone is the third most recognized restaurant chain in America. The specialty coffee industry will continue to grow because of the variety of drinks and the appeal of specialty coffee
A Keurig Coffee Maker is a familiar name for every coffee lover. It's like a genie in your kitchen. All you do is press a button, and freshly brewed, delicious hot coffee is served in a jiffy. Life couldn't get any simpler. Keurig Coffee Makers are manufactured by Keurig, a company founded with the mission to bring gourmet coffee to regular households and offices. And it has done just that. Today, Keurig holds a huge share in the market space with its coffee makers installed in a large number of commercial workplaces and households and the best brands in the coffee world making their own gourmet blends of K Cups which is an innovative Keurig concept.
KGM sells many different beverage-related products, from Arabica coffees to beverage systems. They attribute most of their increased revenues to the popularity of their Keurig brewers. Their beverage systems are sold to consumers at cost or at a loss. However, most of their profits are made through the selling of accessories and Keurig beverage related products, such as the portion-packed coffee cartridges known as K-Cups, which can only be used in the Keurig brewing systems. With the increased popularity of the Keurig system, KGM has increased their investments into research and development (R&D) which consists of salary, consulting expenses. However, their increased revenues have stayed well ahead of their costs. For the fiscal year
Keurig Inc. founded in 1992, manufactures and designs single-cup brewing systems for use in commercial offices, food service, medical offices, and home environments (Keurig Inc., 2014). In June of 2006, Keurig Inc. began operating as a subsidiary of Green Mountain Coffee Roasters Inc. (Keurig Inc., 2014). The company also produces gourmet coffee, hot cocoa, ice beverages, and tea in different K-Cup portion brand packs. The company uses a network of national and local retailers as well as grocery stores ...
The purpose of this report is to analyze two companies in the coffee industry that could be our potential investment. Starbucks and Dunkin’ Donuts are the companies that many foresee as good profitable companies that can give us the necessary return on investments. Investments must be made after carefully researching each potential investment. Different factors that may lead us to a better deal. One must look at the industry, and the coffee industry is, in fact, the second largest commodity in the world.
There are a lot of competition in the coffee industry, such as Dunkin Doughnuts, McDonald’s, and quick stops. Starbucks differentiation strategy is what puts the company of its rivals. According to Porter, the most important thing that makes differentiation strategy successful is the unique and difference of products and services that contribute to represent the company’s competitive advantage (Quick MBA, 2010). Romans 12:2 states, “Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and
Starbucks pride themselves on providing great-tasting coffee, reliability in service, speed and convenience. Whilst other competitors have entered the market and offered the same attributes, the brand has always capitalised on the ‘authenticity’ factor. However as the brand expands it becomes more commercialised, causing an erosion in its competitive advantage in this arena. This has left a gap for independent artisan coffee shops to offer a unique experience to rival the one Starbucks promises.
The Keurig and coffee: When the Keurig was first introduced it was a new product in the market. Its purpose was to provide the consumer with a fresh cup of coffee almost instantly (within 1 minute). Providing the consumer with
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
Despite the fact that Krispy Kreme’s same-store sales are increasing every quarter, the company is not in control of the specialty foods industry. Starbucks Coffee, Krispy Kreme’s leading competitor, has been experiencing astonishing sales that surpass even Krisp...
Founded in the early 1970s Starbucks has developed into the foremost coffeehouse corporation on the globe. It began as a simple Seattle based business focused on selling premium coffee beans and equipment. During the 1980s, the company expanded toward selling coffee and espresso drinks in addition to the beans and equipment. In the 1990s, the company went international with the first store opening in Tokyo, Japan and soon after in the United Kingdom. During the 2000s, the business erupted on the South American continent in Mexico, Peru, El Salvador, and Guatemala. All the while during the global expansion of this multi-billion dollar coffeehouse empire one constant has veraciously remained, the purchase and development of responsibly grown coffee products with respect to the people and places that produce it.