April 29, 2012
Keurig, Inc. was founded on “excellence”, which is the Dutch meaning of its name, and the innovative principle of allowing consumers to be able to make a single excellent cup of coffee whenever they wanted it at home or work with their K-cup single cup brewing system. The Keurig system was such a hit in offices that the company knew the next step was to position themselves to sell units to individuals for use in their homes. At home coffee brewers were always faced with two things loose coffee grounds to clean up and coffee that never quite tasted right. The Keurig system would eliminate both of those issues for the at-home consumer. Distribution
Keurig based their start on the away-from-home market, or offices, because a consistently good cup of coffee is always a plus. The market was ripe for a less costly more convenient alternative in the workplace. Once Keurig excelled in the away-from-home market it was only logical to move towards the home consumers. The strategy was to seek to develop a product for the changing market and develop a product that everyone would want, positioning them to move ahead in the market (Hooley, Piercy, & Nicoulau. 2008. Pg. 8). Consumers purchasing for their homes would order through a different venue than their office counter parts who used an office coffee service, OCS, or a Keurig authorized distributor, KADS. The at-home brewer would be able to order K-cup coffee products via fax or the internet, and they would have more flavor choices as well, through a licensing arrangement made with a variety of gourmet coffee roasters. Office placement of the Keurig units had shown an increase of close to 50% by 2001, with close to 143,200 single cup systems in place by 2003 (Cravens & Piercy, 2009. Pg. 574). Interviews with focus groups found that customers were interested in consistent great-tasting coffee...