Keurig

Individual HBS Case Analysis Keurig At Home Dr. Cunningham ICM Braden Bellack EID: byb75

History ! ! Since the mid-90s, the overall coffee market has seen a rebirth due to the rise of coffeehouses such as Starbucks, and growing public interest in quality coffee. Keurig has been able to leverage customer’s increased sophistication when it comes to coffee in order to become a successful player in the away-from-home single-cup coffee market. There success has created an opportunity to possibly penetrate the at-home coffee market. Keurig views their position in the office coffee market as an opportunity to develop the Keurig brand and products into an at-home version of a single-cup coffee brewer.

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Situation Analysis

External Analysis Market Analysis Away-From-Home Coffee Market and Office Coffee Service (OCS) ! ! ! ! ! ! In the past, office coffee was a very generic type of coffee that sat in a single pot most of the day. To have a cup, someone would have to make an entire pot which often left burnt or wasted coffee. Many coffeehouses and gourmet coffee shops offer a wide variety of products and they are usually at a premium price. These shops have helped create demand for gourmet coffee. Companies like Filterfresh and Crane have been leaders in the single-cup coffee brewer category in the past while Flavia and Keurig are newer entries to the market. Keurig’s single-cup system is ideal for office coffee drinking because it eliminates waste and feels customized. People in the office don’t all drink the same amount or types of coffee and Keurig’s system solves all of these problems. The single-cup system in general has been very popular in the OCS market and is growing rapidly. There has been a 72% increase in single-cup brewer placements in the OCS market between ’99-’03. Single-cup coffee brewer placements have been steadily rising in the U.S. The market saw a 34% total increase in placements between 99/00 and 00/01, but the dramatic initial increase has...