Keurig at Home Essay

967 Words 4 Pages
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
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The competitors will enter the market first with a lower price too. I think it will also hurt the OCS market, which is the big investment of Keurig inc. The price of the brewer itself is too high to break even with a company. 2. One cup approach makes a quick entry to the at home market before all competitors. The customer doesn’t have to match cups so its lees confusion. Roasters can keep one inventory for OCS market and one for at home market. A weakness is that it would decrease the pricing power with the KAD’s. They would have more opportunity to come out with different brewers if can get to market quickly. Employees might be stealing the cups from the brewers at work to use them at home. The lack of resources might be a threat to keurig inc. Keurig might suffers loss of market share too. The best option for Keurig Inc. is to launch the new B100 using the old packaging style” K-Cup” at a price of $249 because its in the meddle, so in the future they can go higher or lower. At the $249 price they can cover their costs without depending on K-Cups sales. . They can make a 50% discount coupons for a limited time” around 4 months since launching the product” just to make the customer get it for less than they expected ,at this time the company won’t be making any profits but it

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