Case Study: Keurig

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

Increased inventory for roasters.
Keurig-Cups are not available for customers in retail stores because retail sectors have lack of demonstration.
Sale of brewer and Keurig cup in retail outlets are affected because of lack of resources Keurig has.

Opportunities Threats

Continued growth in OCS market and more available resources for expanding distribution of at-home market into the retail sector. In future never there will be fall of brewing prices and due to this
Brewer pricing does not decrease and due to this reason opposition starts with lower pricing strategy and Keurig suffers large losses in future.

One-cup Approach with Brewer
Strengths Weakness
Keurig Inc can easily enter into at home market before competition.
Customer confusion will be decreased.
Here after roasters not needed to keep two different cup inventories like one inventory for OCS market and one for at-home market.
Most likely Roasters´ production levels will be increase due to the increase in demand of at-home market including KADs and at-home