Kould Machine Case Study Answers

. 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.

Technology plays a big part in the Kold machine as it lets consumers make their own cold beverage at home instead of physically going to a store to purchase it. Consumers want things that can make their life simpler so if it perhaps saves them time from going to a store they might buy it.

Another consumer trend that could support the potential success of the Kold machine is the relationship it will have with other well known brands such as Coca-Cola. Consumers are likely to purchase products they already know, and the Coca-Cola brand is very well known throughout the world. Some factors from the external marketing environment that could hinder the success of the Kold machine is competition and social/cultural forces. The Kold machine will face its strongest competitor in SodaStream, which already has been available for quite some time. Even though Mr. Kelly (Keurig'c CEO) mentioned having surpassed competitors in the past this might be a different scenario. SodaStream might have already took most of the market away as analysts are stating it will be more expensive buying Kold pods than buying a can or bottle at the grocery store. These statements will most likely not help growth the industry as much as Mr. Kelly things. Another factor that could hinder the success of the Kold machine is the social and cultural

forces. It has been passed down from tradition the enjoyment of drinking Coca-Cola from a can or even bottle, The enjoyment of opening the lid and hearing the fizzing sound helps create the experience of drinking a Coca-Cola. The Kold machine will take that all away and take away the red can everyone knows very well. The taste might be the same for consumers however the experience might be different. Another cultural factor is that households are now trying to stay on the healthier side of choosing their home products. Consumers are trying to stay away from sugar, fatty foods/drinks and are aiming for healthier alternatives. This change in scenery could affect the sales as well. 3. The first reason Keurig would want to venture to new products is so they can diversify themselves. If for example the coffee industry goes down, they can perhaps rely on the Kold machine to make up for their losses. Instead of putting all their marbles in one basket, if they are able to spread them apart their risk isn't as high (breadth). The second reason Keurig would want to venture to new products is because perhaps they feel their reputation and customer loyalty might help them succeed in this new product. In marketing it is known it is cheaper to keep loyal customers than to explore for new ones. If Keurig knows it has a big loyalty group from their coffee machines they probably think they will trust Keurig enough to buy their Kold machine. Finally, the third reason Keurig would want to venture to new products is because they are being supported by well known companies such as Coca-Cola. Having a brand such as Coca-Cola support your products is huge as it is a very well-known brand throughout the world. This relationship could very well mean big profits for Keurig as not only does it attract Keurig loyalists, but Coca-Cola loyalists as well. So the potential buying group for this machine is huge.