Market Analysis

Topics: Marketing, Coffee, Target market Pages: 5 (795 words) Published: September 14, 2014

Situational Market Analysis
Keurig Single Cup Brewer

The Keurig
Brewing Excellence, once cup at a time.

Keurig, Inc., a division of the Green Mountain Coffee Company, and is the king of the single serve coffee makers, thanks to its patented single-cup brewing technology, which uses the K-Cup portion packs. The actual brand name Keurig comes from the Dutch term for excellence and the company has built its reputation around the very meaning of the word. Everything the company does from its line of personal and commercial Keurig coffee machines to its customer service is centered on excellence. Keurig is the leader in single-cup brewing in North America, they offer their customers a wide range of products to choose from, personal and commercial coffee makers as well as an endless lineup of gourmet coffees, teas and hot cocoas, that can be brewed in less than a minute using any one of the many different Keurig machines. Demographics –

Keurig’s market included two broad target customers: office users and households. In households our primary target consists of a medium income household of anyone that desires a hot fresh cup of coffee, tea or hot cocoa at any time. Keurig can target the business offices as well with the idea of providing your employee a hot fresh cup of coffee anytime they want it. And since everyone has different tastes they can offer their employees a variety of flavors and roasts.

Target Market Strategy

Value Proposition
The Keurig is Innovative: they took the idea – that every cup of coffee should be fresh, and that everyone should choose what type of coffee they want, whenever they want – and made it happen in an innovative way. The innovation was in the engineering to make these objectives easily attainable. The Keurig is Indispensable: With 2.5 million Keurig beverages made each day, it is safe to say that the K-cup is indispensable to its owners and a part of their everyday lives. The Keurig is Inspirational: Keurig has come up with the type of product that consumers (and business professionals) are consistently interested in – even after using it day in and day out. I can easily marvel out loud at a Keurig in action, in any office – and have those around me join in. This is after we’ve all seen it do its thing hundreds of times. It’s still a “wow!” Internal Factors

Micro- factors would include but are not limited to:
competitors, what other single serve coffee machines are out there customers – who are our customers and are we meeting their needs distribution channels – how are the machines getting into the consumers home or office Macro factors would include but are not limited to:

SWOT Analysis
-Brand awareness and recognition/top selling cup brewer
- Innovative, product differentiation and consistency
-Green Mountain / Keurig has had a patent on the single serving technology -They have a vast assortment of partnerships, including Dunkin’ Donuts, Starbucks, Caribou Coffee, Coffee People, Newman’s Own, Celestial Seasonings and Gloria Jean’s, which gives them over 200 flavor options to offer the consumers. -The size of the K-Cups is small, which offers more flavor availability while taking up minimal shelf space, versus the large bags of coffee.

-Cost of K-Cups on average is more expensive
-K-Cup’s are not recyclable
-The patent on the single serve K-Cup technology expired last year Opportunities
-new products - can help Keurig to expand their business and diversify their customer base -new markets - this will allow Keurig to expand their business and diversify their portfolio of products and services -online market – allows Keurig to target a much wider audience without a lot of cost Threats

-substitute products – the availability of other single cup brewers keeps Keurig’s prices down - bad economy – can hurt their business by decreasing the number of potential...
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