Keurig Case Summary

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

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

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