Analyst

Keurig: Managing a New Product Launch

By: Melissa Bockhold Heather Coddington Laura Duerstock Ali Wampler

March 1, 2006

TABLE OF CONTENTS

I. II. III. IV. Introduction……………………………………………………………………3 Assumptions…………………………………………………………………...4 History………………………………………………………………………....5 SWOT Analysis 1. Two-Cup Approach……………………………………………………….6 2. One-Cup Approach………………………………………………………..7 V. The Coffee Market 1. Market Analysis/Needs/Growth…………………………………………...8 2. Competition………………………………………………………………..9 VI. Keurig Marketing Strategy 1. Target Market…………………………………………………………….11 2. Product i. ii. iii. 3. Place i. ii. iii. i. ii. 5. Pricing i. ii. VII. VIII. IX. X. XI. K-Cup (or Keurig-Cup)……..………………………………….21 B100 Brewer...….……………………………………………...26 K-Cups (or Keurig Cups)...…………………………………….16 B100 Brewer...…………………………………………………17 Market Segmentation…………………………………………..18 K-Cups (or Keurig Cups)...…………………………………….19 B100 Brewer...…………………………………………………19 K-Cups (or Keurig Cups)...…………………………………….14 B100 Brewer...…………………………………………………15 Product Life Cycle……………………………………………..16

4. Promotion

Problematic Issues and Alternatives…………………………………………36 Conclusion…………………………………………………………………...38 Comments on Opposing Group’s Paper……………………………………..39 Keurig Authorized Dealer Interview………………………………………...44 Works Cited………………………………………………………………….46

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I. INTRODUCTION

Everyone has a morning ritual while getting ready for the day’s activities. Some people exercise. Some people shower. Some people help get their children ready for school. Some people watch the news or listen to traffic reports. Some people drink coffee. In fact, in 2001, 20 million Americans drank gourmet coffee on a daily basis (Sherry). Keurig, Inc. was founded on the idea that coffee lovers should be able to brew and enjoy one perfect cup of coffee at time. With the establishment of gourmet coffee houses like Starbucks, consumers began stretching their pocketbooks a bit more by spending on average $1.50 or more for a cup of gourmet...