Principles of Marketing
Georgia Southern University
Marketing Product Focus:
Marketing and Product Objectives: Keurig’s marketing objective is to be the leading specialty coffee company, and to be the leader in coffee brewing innovation and no longer share the leadership board. These are explained in four different categories:
Current Markets- Expanding Keurig’s current market will be done by teaming up with high brand name coffee sellers such as: Dunkin’ Donuts, Starbucks, Folgers, and Cinnabon. This will target the loyal customers of these brands, and bring in hard to reach revenue for on-the-go coffee.
New Markets- With a recent signing deal with John A Benckiser (German consumer products’ giant) for Peet’s branded coffee and tea K-cups, we can expect to see K-cups and Keurig systems reaching around the globe. This will expand Green Mountains retail business by 44 countries and an investment of $11 billion.
Retail Service- Retail services are growing with the option of three different brewing systems: single serve brewing, custom serve brewing, and cappuccino & latte brewing. Each brewing system has their own special brewing cups: K-cup, Vue, and Rivo.
Increase in Net Income comes to 28% ($138.2 million), which is a $47.6 million I ncrease in net sales.
New Products- Keurig’s bringing in a new Mini series and Elite series brewing system, accommodating the needs of a single cup or multiple cup brew. With the expansion of flavored K-cups, and new consumer needs, keurig can begin to identify and expand on new potential products.
Target Markets: Keurig focuses on two main target markets for their products. These are office users and households. Office users, also called the away-from-home market (AFH), are those who consume coffee daily at work. Keurig’s single-cup brewing system enables them to get premium, quality coffee in their office, instead of having to go to a coffee shop. The other target market for Keurig is