KEURIG IN THE HOME CASE ANALYSIS
Keurig Inc. is main concern is how to receive the position they need in the at-home coffee market segment without having to lose their reveal of the workplace coffee section (OCS) and even though maintaining their very own gourmet coffee top quality. They have lower than six months to launch the merchandise, and very limited budget for production costs and expenses, and for changing the curent part packs. There are two solid competitors in the away from home market, Filterfish, and Flavia. There are several other competition in the at-home market. For me, this is marketing-mix problem as well as the end goal should be to maximize the at-home section and protect the founded OCS business. Strategic Condition Facing The Management:
The 2 cup approach (Keurig-cups & K-cups) may possibly solve challenges such as KADs revenue chafing, thefts of K-cups, improved control over rates; however , it will eventually delay Keurig's entry towards the market. Also, roasters will require 2types of inventories, that may increase development and products on hand costs. 2different cups as a point of differentiation will actually cause confusion and unhappiness among consumers resulting from using the wrong glass. Pricing in $199 will cause immediate huge losses and $299 is a premium price as per study. Direct marketing is supposed to cause funnel conflict. There is a concern that it will drive revenue away from KADs and endanger their proven relationships with accounts. The corporation plans marketing promotions such as incentivizing KADs to support the advertising efforts for the new machine (KADs referral program), net direct-marketing plan, public romantic relationship campaign. When this may put value by active participation of KADs who curently have a good understanding of the OCS market, Keurig will still have to find ways to make brand recognition in the at-home segment. Also, this is a demonstration-driven item and Keurig needs to discover avenues to show the product utilization and ease to the...