...Keurig Case Study I. Overview Meaning excellence in Dutch, Keurig, was founded in 1990 by Peter Dragone and John Sylvan. The founders were on a highly caffeinated mission to completely alter the coffee industry with the underlying belief that coffee should be served fresh by the cup. They wanted to bring the gourmet coffeehouse experience to both the home and the office. Dragone and Sylvan wished to not only make this possible, but to do so in a satisfying, convenient and efficient way. In 1998, Keurig released their first single-serve brewing coffee machine. The machine could also serve a cup of hot tea or hot cocoa. In 2006, Keurig merged with Green Mountain Coffee Roasters (GMCR), which would later lead Keurig to becoming a world-wide industry leader in single-cup brewing technology. Since, Keurig has strived to innovate with new brewing technologies and expand their flavor selection. The barrier to entry in this market is relatively low and Keurig is most definitely not alone. Keurig’s competitors include Starbucks, Proctor & Gamble and Nestle. Success in the single-serve coffee market is determined by the ability of a company to provide efficiency, quality and array of choices to consumers. These three factors are of utmost importance due to the high cost of using a single serve machine. The initial machine is expensive as are the coffee K-cups or pods. Aside from high costs, Keurig has remained on top while exemplifying socially responsible business practices...
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...quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate process to optimize the coffee’s taste and aroma. From a small café in Waitsfield, Vermont to a recognized leader in specialty coffee and brewing platforms, GMCR is now leading the way to the successful marketing of expanding their brand awareness and enabling environmentally and socially responsible business practices. By partnering and promoting with Keurig® Brewing Systems, GMCR realized a...
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...COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters, Keurig Coffee/ www.gmcr.com, www.keurig.com / Specialty Coffee-Coffee Makers BACKGROUND/HISTORY Green Mountain Coffee Roasters, Inc. is a leader in specialty coffee and coffee makers, is highly recognized for its award winning coffees, environmentally and socially responsible business practices, and innovative brewing technologies. Green Mountain Coffee Roasters was founded in 1981 by Bob Stiller in Waitsfield, Vermont. In 1993 GMCR goes public and stock opens at $10. In 2006 GMCR acquires Keurig Incorporated, a single cup brewing system for coffees, teas, hot chocolate and apple cider. Green Mountain Coffee Roasters has teamed up with some of the strongest beverage companies and have acquired and merged with several specialty brands such as, Starbucks and Dunkin Donuts. They have also have Keurig licensing the patents for creating the single-serving unit called a “K-cup.” In 2007 Larry Blanford took the position of CEO and President of GMCR while Bob Still remains as Chairman of the Board. 2012 Brain Kelley joined GMCR and was named President and CEO and still holds that position today (www.gmcr.com). Michelle Stacey is currently the president of Keurig Inc. As of December 28, 2013 GMCR net sales were $1,386,670 and their gross profit was $464,047(http://finance.yahoo.com). SWOT ANALYSIS Strengths: * Strong brand name. * Unique and large variety of products in the coffee market. * Environmentally...
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...(GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of development, Keurig released its industrial strength machine which delivered the perfect...
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...COMPANY INFORMATION Name :: Green Mountain Coffee Roasters, Keurig Coffee Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com Industry :: Processed & Packaged Goods- Coffee Makers BACKGROUND & HISTORY Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012). SWOT ANALYSIS Strengths - Brand strength - Unique & large variety of products - Customer loyalty - Environmentally conscience, socially responsible - Innovative products and research - Strong growth potential - Product consistency Weaknesses - Not a strong online presence - Supplier dependence - Concentrated customer base - Single product line - Returns - Keurig defects - Capacity constraints Opportunities - Expanding to new markets - Collaborations - Increased purchases - Keurig Acquisition - Expansion to hotels and businesses - Expand suppliers Threats - Intense...
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...Keurig The word Keurig derives from the Dutch word meaning excellence. Keurig, Incorporated began with the company’s inception in 1992 (Kerin & Peterson, 2007). Gourmet coffee is a growing trend throughout the world. Keurig Incorporated was founded on the inspiration that coffee lovers should be able to brew and enjoy once perfect cup of coffee at a time (Kerin & Peterson). Excellence had been the guiding principle behind the development of its products and services. With gourmet coffee houses popping up in many areas, consumers were spending at least $1.50 more for one cup of gourmet coffee. Keurig’s launch of the single cup brewing system in the office coffee service market in the late 1990’s had benefited from coffee drinkers consistent increase of sophisticated drinks. In 2002 Keurig became the leading name in office coffee service by shipping over 33,000 units. In February 2003 Keurig was ready to launch their new B100 system targeting the at home segment all in hopes of gaining the same success Keurig found in the office coffee service, in a more competitive market (Kerin & Peterson, 2007). With the competition entering the single cup brewing market, Keurig had to think fast if they wanted to succeed in the Home market (Kerin & Peterson, 2007). Nick Lazaris, President, Chief Executive Officer and Director of Keurig, had to make the decision as to proceed with a two Keurig-Cup (K-Cup) strategy; this decision had the potential to...
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...café and later in 2006 merged it operations with Keurig. GMCR’s Keurig recognized as the market leader particularly in coffee industry just because of its quality standard and implementation of inventive techniques for brewing and fulfilling different socially responsible practices of business. The specialty of the business is beverages in K-cup portion packs and to sells various kinds of teas, cocoa and coffee. GMCR’s portfolio of brand comprises Van Houtte, Brûlerie Mont-Royal, Brûlerie St and Orient Express. In addition to this organization is also providing wide range of ground coffee and beans in fractional packs which can be easily used by customers of Away-from-Home (AFH) and At-home (AH) markets. This is because AFH and AH has extreme growth potential as no brand of coffee has been doing this to target the attractive markets. Currently, organization is operating with more than 5,600 employees. From the case study it is clear that GMCR announced to form a relationship by mixing the Starbucks and Tazotea brand and basic aim is to give premium quality single cup coffee (GMCR, 2011). So this assignment includes financial analysis, SWOT analysis, Porter’s Five Forces and Key Success Factors. Income Statement The case study shows that GMCR is making growth in financial market so effectively just because of its wide range of quality products. The basic aim of this financial data analysis is represent the horizontal data analysis of the organization so as to figure out the increasing...
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...Long-term Growth Prospects MEMBER USE ONLY GMCR LONG-TERM GROWTH PROSPECTS COMPANY OVERVIEW Keurig Green Mountain, Inc. (Nasdaq:GMCR), formerly Green Mountain Coffee Roasters, Inc., is a specialty coffee and coffeemaker businesses in the United States and Canada. The Company sells Keurig Single Cup Brewers and Arabica bean coffees, including Fair Trade Certified, certified organic, flavored, limited edition and blends offered in K-Cup and Vue packs (single serve packs) for use with its Keurig Single Cup Brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, the Company produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company distributes its products in two channels: at-home (AH) and away-fromhome (AFH). Currently, GMCR has 13% penetration in at-home coffee brewer of the US market. Furthermore, it sells its products to retailers, including supermarkets, department stores, mass merchandisers, club stores, and convenience stores, restaurants, hospitality accounts, office coffee distributors, and partner brand owners, as well as to consumers through its Website. THE CONTINUATION OF GROWTH STORY KEURIG 2.0 RELEASE The new machine, Keurig 2.0, will be released in the third quarter of 2014. This $189 machine can brew more than one cup...
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...Mountain Coffee Roasters (GMCR) is a company that is in need of a change. As we combed through the company’s most recent 10-K, we were presented with two possible domestic challenges, the first being that GMCR was about to lose its patent rights to its Keurig K-cup model and that there were stagnating sales. Upon further research and analysis, we found that GMCR has come up with solutions to counter both challenges. In response to the impending patent loss, Green Mountain Coffee has a new machine in the works that will only recognize the brand’s specific Keurig K-cup products through RIFDs. This new machine will enable GMCR to combat any possible competitors or imitators and will allow the company to avoid what was almost a crisis situation. Additionally, the projected sales forecast for the next few years is anticipated to grow exponentially. With the company’s most imminent challenges solved, it seems logical that GMCR look at its possible opportunities and embark on a new business venture. Green Mountain has an extremely weak international presence, with its major sales coming predominantly from North America. The company needs to take advantage of an incredible opportunity it has been presented with and bring its coffee, Keurig machines and K-cups to the international market of Brazil by way of a flagship café based out of Rio de Janeiro. Green Mountain can expand internationally anywhere in the world, but there are specific reasons as to why Brazil is the prime location and...
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...Product Classification Target Market Competitive Situation Analysis Analysis of Competition using Porter’s 5 Forces Model SWOT Analysis Strengths Weaknesses Opportunities Threats Market Objectives Product Objective Price Objective Place Objective Promotion Objective Marketing Strategies Product Strategies Price Strategies Place Strategies Promotion Strategies Tactics and Action Plan Product Action Plan Price Action Plan Place Action Plan Promotion Action Plan Monitoring Procedures Introduction Company G has come out with a new line of small appliances for their customers. This new line of products is to help those customers have more control and ease while using them. The company requested a new marketing plan be made in order to introduce the product and get attention from consumers that may be interested in using it. This is the marketing plan that will introduce not only the product, but the company and allow you to learn how it might be beneficial to have the product in your home. It can be something that you may want to purchase in the near future depending on the needs that you have in your household at the time so make sure to read on and learn more about Company G, what they provide, and how their products are able to help you in your every day life. Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.” The Product The Keurig coffee maker provides the consumer...
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.... Analysis: Nespresso and the U.S. Market Introduction This report examines the market position of Nespresso, a subsidiary of the Nestlé’s Business Group, as it looks to improve its position in the competitive “capsule coffee” machine and cup market in the United States. The industry has boomed after economic recession hit the U.S. in 2008; American consumers realized they could invest in a home brewing station and enjoy a premium cup of coffee at home without paying the high prices found in coffee shops such as Starbucks. The report seeks to identify key role players, performance, decisions, objectives and problems facing Nespresso as the top management ponders whether to move forward into the surging U.S. market while still retaining their core values and reputation as a premium brand of capsule coffee suppliers. Positioning Nespresso is a subsidiary of the Nestle’ Business Group and was established in 1986. Nestlé’s held a dominant position in the coffee industry in the 70s and 80s with the brand Nescafe. Nespresso was launched targeting the premium coffee industry and its consumers. From its inception, Nespresso has strived to be exclusive and organic, that is, eschewing normal advertising, promotional and distribution efforts in favor of keeping a tight reign over how, where, when, who and why they promote and advertise with. The company has done this exceedingly well over three decades as the 2011 global revenue figure of $3.9 billion demonstrates. Nespresso’s...
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...Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey). Mr. Coffee is a part of American iconography appearing in movies, books, and other arenas of pop culture. It appeared in loosely translated interpretations in the Back to the Future movie trilogy of the as 1980’s as “Mr. Fusion”, it was referenced in the TV show Seinfield, and in the title of the short story by Raymond Carver, “Mr. Coffee and Mr. Fixit.” According to a recently conducted survey Mr. Coffee was the most identifiable home coffee brewer. Brand recognition is not a problem in the current marketing environment. Mr. Coffee has many entries into the home coffee making market. Most of the devices are on the lower end of the price scale and easily obtained at every local big box store. These devices are sold alongside similar devices presented by direct competitors with very little differentiation. Recent developments in the industry are the k-cup, single serve devices, by brands such as the niche’s first mover, Keurig. Traditional brewers are now in direct competition with the single serve manufacturers, they are reacting to the new type of coffee brewer by producing...
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...consume. Product differentiation is based on four elements: Price – How much am I prepared to pay for this product? Quality – What level of quality do I require? Availability – or maybe delivery. How quickly do I want to have the use of this purchase? Promotion – or maybe "branding". Do I want a specific brand, or one of a range of brands that I feel 'says something about me? Think about denim jeans here—a $4.00 pair from Wal-Mart, a $400 pair from Neiman-Marcus We all make "value judgments" based on the inter-relationship of these three elements when we consume a service or product. Stakeholder analysis is a technique you can use to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of your activity or project. There are a number of tools available that can assist with this. A Stakeholder analysis can be used to: * identify people, groups, and institutions that will influence your decisions about the form, style, features, etc., of your product or service (either positively or negatively), ------------------------------------------------- Core Competencies or Core Capabilities? Competencies are responsible for providing benefits in products and services that make them desirable to customers, and organizations strive to develop a set of core competencies that are difficult for competitors to imitate. There are links here to intellectual property and tacit knowledge, as these 'intangible'...
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...MRKT 310 Principles of Marketing What is Strategic Marketing? Diet Coke October 04th, 2015 1. Creating Value for Customers: Value is the benefit buyers receive that meets their needs (Principles of Marketing, 2015). Customers do not want only the products and services but want what those products and services will do for them as well. Companies create value for its customer by creating, communicating, delivering, and exchanging values. They do this by understanding their customers, describing the product and making the product available to the customers, For example, diet coke, consumers buy them for reduced calories. The consumers should be able to receive the reduced calorie it promised and at a good price compared to the alternative and at a convenient location. It should also be worth the price paid compared to other brands. It should also have the label describe the content of the calorie without the customers searching to hard to find it. 2. Role of customer in the company’s strategic plan: The coca cola mission statement is, “To refresh the world, to inspire moments of optimism and to create value and make a difference”. This mission statement creates a close link and communication with customers. The understanding of the consumers need leads the company’s strategic plan towards satisfying those needs. They survey the environment and conduct a research of the current and potential customers. A customer knowing that a company’s mission centers...
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...The External Environment and Organizational Culture The essence of a business is outside itself. ” A Look Ahead — Peter Drucker LEARNING OBJECTIVES After studying Chapter 2, you will be able to: CHAPTER OUTLINE The Macroenvironment Laws and Regulations The Economy Technology Demographics Social Issues and the Natural Environment The Competitive Environment Competitors New Entrants Substitutes and Complements Suppliers Customers Environmental Analysis Environmental Scanning Scenario Development Forecasting Benchmarking Responding to the Environment Adapting to the Environment: Changing Yourself Influencing Your Environment Changing the Environment You Are In Choosing a Response Approach Culture and the Internal Environment of Organizations Diagnosing Culture Managing Culture LO 1 Describe how environmental forces influence organizations and how organizations can influence their environments. p. 48 Distinguish between the macroenvironment and the competitive environment. p. 48 Explain why managers and organizations should attend to economic and social developments. p. 50 Identify elements of the competitive environment. p. 55 Summarize how organizations respond to environmental uncertainty. p. 63 Define elements of an organization’s culture. p. 72 Discuss how an organization’s culture affects its response to its external environment. p. 72 LO 2 LO 3 LO 4 LO 5 LO 6 LO 7 Management Close-Up HOW CAN LARRY BLANFORD KEEP GREEN MOUNTAIN COFFEE...
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