Keurig at Home ”Case Study#3” 20 million Americans drank gourmet coffee daily in 2003. As a result of this amount of coffee lovers that can’t start their day without coffee‚ Keurig. Inc had the idea that they should be able to brew their own perfect cup of coffee any time they need. People started paying $1.50 or more for a cup of gourmet coffee at coffee shops like Starbucks. This gave Keurig. Inc the idea of offering coffees in a single-cup proportion size to offices. After the placement of
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Keurig: Managing a New Product Launch By: Melissa Bockhold Heather Coddington Laura Duerstock Ali Wampler March 1‚ 2006 TABLE OF CONTENTS I. Introduction……………………………………………………………………3 II. Assumptions…………………………………………………………………...4 III. History………………………………………………………………………....5 IV. SWOT Analysis 1. Two-Cup Approach……………………………………………………….6 2. One-Cup Approach………………………………………………………..7 V. The Coffee Market 1. Market Analysis/Needs/Growth…………………………………………...8 2. Competition………………………………………………………………
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KEURIG AT HOME CASE ANALYSIS Main Problem: Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market segment without losing their share of the office coffee segment (OCS) and while maintaining their gourmet coffee quality. They have less than six months to launch the product‚ and very limited budget for production costs and expenses‚ and for changing the curent portion packs. There are two strong competitors in the away from home market‚ Filterfish‚ and Flavia
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Brewing excellence‚ One cup at a time. Keurig in Dutch means excellence. It is the leading single cup brewing system in North America. The U.S. annual per capita consumption of coffee was estimated to be 424 servings‚ which included in-home and out-of-home roast and ground‚ instant‚ and ready-to-drink (bottled/canned) coffee.2 The total coffee market in 2008 was estimated to be 1.8 billion pounds‚ or $19.3 billion. 3 While specialty coffee was only about 17 percent of total
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New Product Launch Marketing Plan‚ Part II New Product Launch Marketing Plan‚ Part II Digital Display Corporation (DDC) is launching an innovative product that will display caller identification of cellular phone calls in the automobile windshield. DDC is in the process of performing a market segmentation of potential consumers of the product. The organization must understand decision motivators and buying behaviors of customers. DDC will develop a tactical plan to manage each stage of the
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Keurig at Home: Managing a New Product Launch Question 1 Keurig should launch the Keurig-Cup in the at-home market and continue to use the K-Cup in the commercial market. The reasons of separating these two series are listed as follows: a. Protect the benefits of KAD and Roasters. Keurig should insist on their plan to launch the new Keurig-Cup even if the GMCR holds the opposite view since it can protect the profits of KAD and roasters when new products are introduced to the market. If Keurig
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New Product Development for Microfinance: Design‚ Testing‚ and Launch Technical Note Number 2 New Product Development for Microfinance: Design‚ Testing‚ and Launch by Monica Brand ACCION International October 1998 This work was supported by the U.S. Agency for International Development‚ Global Bureau‚ Economic Growth Section‚ Microenterprise Development Office‚ through funding to the Microenterprise Best Practices (MBP) Project‚ contract number PCE-C-00-96-90004-00. i ACKNOWLEDGMENTS
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product launch should be evaluated using a business case that is built around the future expected cash flows. However‚ from a portfolio perspective there are some factors that must be considered in forecasting the future expected cash flows. • Cannibalization As new products arrive‚ the revenue and costs involved should not be looked at in isolation. There can be ripple effects across the business where a new product cannibalizes sales from existing products. For example‚ the launch of a new car
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NEW PRODUCT LAUNCH: UB GROUP – SOFT DRINK “MIST” COMPANY OVERVIEW United Breweries Limited (UBL) - has assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration‚ The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand‚ Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality. MACRO-ENVIRONMENTAL ANALYSIS
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KEURIG CASE 1 - How do Keurig and its partners make money? (You can find information on the sources of profit for Keurig‚ coffee roasters‚ and the KADs from the case.) Ans: Keurig made money some amount of money by selling the brewers from a price range of $500 - $1000.Keurig also made a royalty of $0.04 per K-cup sold. Coffee roasters earned $0.25 per K-cup and KAD made money by selling this K-cup at a mark-up price of $0.40 - $0.50. They also at times charged a small rent. 2 -
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