...Keurig Case Study I. Overview Meaning excellence in Dutch, Keurig, was founded in 1990 by Peter Dragone and John Sylvan. The founders were on a highly caffeinated mission to completely alter the coffee industry with the underlying belief that coffee should be served fresh by the cup. They wanted to bring the gourmet coffeehouse experience to both the home and the office. Dragone and Sylvan wished to not only make this possible, but to do so in a satisfying, convenient and efficient way. In 1998, Keurig released their first single-serve brewing coffee machine. The machine could also serve a cup of hot tea or hot cocoa. In 2006, Keurig merged with Green Mountain Coffee Roasters (GMCR), which would later lead Keurig to becoming a world-wide industry leader in single-cup brewing technology. Since, Keurig has strived to innovate with new brewing technologies and expand their flavor selection. The barrier to entry in this market is relatively low and Keurig is most definitely not alone. Keurig’s competitors include Starbucks, Proctor & Gamble and Nestle. Success in the single-serve coffee market is determined by the ability of a company to provide efficiency, quality and array of choices to consumers. These three factors are of utmost importance due to the high cost of using a single serve machine. The initial machine is expensive as are the coffee K-cups or pods. Aside from high costs, Keurig has remained on top while exemplifying socially responsible business practices...
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...the United States. These new competitors are offering consumers many new choices and variations of a single-serve coffee brewers. In turn, this is stepping up pressure Keurig to keep up with its competitors and the markets demand. The three competitors that pose the biggest threat to Keurig are Bunn’s MyCafé unit, Starbucks’ Verismo unit, and the Esio beverage system which is backed by Wal-Mart. In October Bunn, a leading commercial beverage equipment producer, launched its home version of its single-serve coffee machine called MyCafé. Unfortunately for Keurig, the MyCafé is the first to capitalize on the expiration of Keurig’s patent on its k-cup technology. The MyCafé will be able to brew both regular ground coffee and K-Cups. Also, it is able to brew tea bags as well as loose leaf tea which a Keurig brewer cannot. Bunn's new MyCafé system will cost $159.99. Aimee Markelz Tracy, senior vice president of Bunn's home products division has stated "We tried to make it as universal as possible so that people, however they want to brew their single cup, can do that in a high-quality way" (Geller). The MyCafé will be sold at Lowe's stores nationwide and select Bon-Ton and Dillards stores. With the MyCafé being able to brew all the unique flavors that are offered through k-cups it poses a serious threat to Keurig. In September Starbucks will enter the market of single-serve coffee brewers with the launch of its Verismo brewing system. What makes the Versimo different is that it...
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...Questions : Identify a company (either a local business or a national firm) that you think has a strong customer orientation. Briefly describe why you think so. Also identify specific marketing strategies used by the company that seem to contribute to its success. Also identify a company that has a poor customer orientation (perhaps a local firm with which you have had experience) and describe what marketing strategies contribute to that state. What are the consequences of this?Offer suggestions on how to improve the customer service of the company using different concepts from the text material. From my perspective, Apple has a strong customer orientation because it meets it does whatever it takes to meet its customers’ needs and. I decided to write about Apple and the changes that it has made over the years and how will survive without Steve Jobs. After Apple lost Steve Jobs the stock fell many people questioned the future of this company; how could this organization survive without its founder, its creative foundation, its perfectionist. The challenges for the new CEO, Tim Cook, is keeping innovation image and fulfill the customers expectation in order to maintain the original culture values. Because continue the current culture can ensure the profitability and successful of the company. Steve Jobs’ always worked as the main character involved in the whole culture at Apple, and it is a challenge for Apple to adopt this major loss and realizing a new era. After Steve...
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...KEURIG Green Mountain Coffee Roaster Company Content KEURIG Green Mountain Coffee Roaster Company 1 KEURIG Green Mountain Coffee Roaster Company 3 1. Introduction 3 1.1 Product and operation 3 1.2 Stock price 4 1.3 Financial data 4 The revenue from 2009 to 2013 7 Net sale and operating income for each area segments 8 Net sale and operating income for each product catalogs 9 The cost from 2009 to 2013 10 SG&A trend 10 Components of SG&A 11 Comparison: Enterprise R&D Spend 11 Comparison: Enterprise Advertising Spend 12 1.4 Competition 13 1.5 Target market 14 2. The KEURIG Green Mountain Coffee Roaster Company’s Story 14 3. The problems 16 3.1 Problem in the supply 16 3.2 Competition from the distributions 16 3.3 Problem in innovation and successful development 16 3.4 Single experience 17 3.5 Narrow direction for sale 17 3.6 Quality of unlicensed 17 3.7 Narrow market for sale 17 4. Change of Strategy 18 4.1 Increasing the supply chains 18 4.2 Varying the distributions 19 4.3 Improving the business model 19 4.4 Building the relationships 20 4.5 Strength the experience 20 4.6 Expending away from home business 21 4.7 Converting unlicensed 22 4.8 Sharpening marketing message 22 4.9 International expansion 23 Appendix: Extracts from KEURIG Green Mountain coffee Company 10-K report. 24 1. Operating Free Cash Flow 24 2. Long Term Debt-to-Equity Ratio 24 KEURIG Green Mountain Coffee Roaster...
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...Background Information Company History Keurig Inc. was originated in 1992 by Peter Gragone and John Sylvan. The company was constructed on the concept of coffee brewing systems, and their focus was to serve high quality, fresh coffee. Keurig's groundbreaking single cup brewing system, presented in 1998, allows people to brew the perfect cup of gourmet coffee in less than a minute, without having to grind beans, measure coffee, handle filters or clean up (The Keurig Story, 2013). In 2002, Green Mountain Coffee Roaster Inc., a Vermont company, paid $14.4 million for 41 percent of Keurig. Four years later, it purchased the remainder of Keurig, selling the brewers at a sensible price and creating money on the K-Cups, which only worked with Keurig machines (Purpose, Mission & Values, 2013) Green Mountain’s vales, which can be found on their website, are; We Partner for Mutual Success, We Innovate with Passion, We Play to Win and We Brew a Better World. In 2008, Keurig made it to the Forbes ‘200 Best Small Companies’ list, but 2011 was the pioneer year. From January to September, sales rose over three hundred percent. This was due to their K-cup agreements with Starbucks and Dunkin Donuts (Badenhausen & Settimi, 2011). Today, the corporation is a leader in specialty coffee and coffee makers, and is known for its award-winning coffees, innovative Keurig Single Cup brewing technology, and publicly respectable business practices. Green Mountain supports local and global communities...
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...vacation. He liked the coffee so much that he decided to buy the store. The company has grown into a large corporation and now has its headquarters in Waterbury, Vermont where they also house a roasting and distribution facility that is over 90,000 square feet. Green Mountain Coffee Roaster has had many accomplishments. In 1993 the coffee company first went public. Green mountain coffee roasters in 1996 the invested in Keurig, Inc. When the company invested in Keurig the owned 35% interest in that company. By 2002 they agreed to sell their product as fair trade coffee. In 2003 the coffee company increased its stake in Keurig, Inc. up to 43%.Green Mountain Coffee roasters then obtained Keurig, Inc. in 2006 and by 2009 they bought the wholesale division of a Canadian coffee provider Timothy world Coffees. The coffee company the bought and sold part of another Canadian distributor known as Van Houtte. In 2011 Green Mountain Coffee made agreements with Starbucks and Dunkin Donuts to sell their coffee in single serve pods and in return these companies would offer the Keurig brewing machine for...
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...COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters, Keurig Coffee/ www.gmcr.com, www.keurig.com / Specialty Coffee-Coffee Makers BACKGROUND/HISTORY Green Mountain Coffee Roasters, Inc. is a leader in specialty coffee and coffee makers, is highly recognized for its award winning coffees, environmentally and socially responsible business practices, and innovative brewing technologies. Green Mountain Coffee Roasters was founded in 1981 by Bob Stiller in Waitsfield, Vermont. In 1993 GMCR goes public and stock opens at $10. In 2006 GMCR acquires Keurig Incorporated, a single cup brewing system for coffees, teas, hot chocolate and apple cider. Green Mountain Coffee Roasters has teamed up with some of the strongest beverage companies and have acquired and merged with several specialty brands such as, Starbucks and Dunkin Donuts. They have also have Keurig licensing the patents for creating the single-serving unit called a “K-cup.” In 2007 Larry Blanford took the position of CEO and President of GMCR while Bob Still remains as Chairman of the Board. 2012 Brain Kelley joined GMCR and was named President and CEO and still holds that position today (www.gmcr.com). Michelle Stacey is currently the president of Keurig Inc. As of December 28, 2013 GMCR net sales were $1,386,670 and their gross profit was $464,047(http://finance.yahoo.com). SWOT ANALYSIS Strengths: * Strong brand name. * Unique and large variety of products in the coffee market. * Environmentally...
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...(GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of development, Keurig released its industrial strength machine which delivered the perfect...
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...basis. It is important for consumers to be aware of what is being recalled. It is also important for the manufacturing company to have a system in place to contact the consumers who purchased a product that has been recalled, as well as a way to correct the problem they may be faced with. Our job was to locate a product that has recently been recalled I chose to research the Keurig MINI Brewing System, it was recalled on December 23, 2014, and the Recall number: 15-05. See below for an example of the product code bar and what the consumers who purchased the product were looking for to see of their product was affected by the recall. This picture below was provided by the compnay. * | | 1. 2 of 3 photos 2. Identification number is located on a white sticker on the bottom of the brewers 3. Below is a brief summary of the product and why it was recalled, also known as the Recall Summary? Keurig® MINI Plus Brewing Systems, the hazard occurred when the coffee was being brewed, apparently the water would overheat and spray out the sides and the consumed became burned. Keurig did provide duty of care to the consumers (See below). They seem to have covered their legal obligation to the consumers by offering an extensive list of how to correct the malfunction in order to avoid any more harm done to the consumers....
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...Long-term Growth Prospects MEMBER USE ONLY GMCR LONG-TERM GROWTH PROSPECTS COMPANY OVERVIEW Keurig Green Mountain, Inc. (Nasdaq:GMCR), formerly Green Mountain Coffee Roasters, Inc., is a specialty coffee and coffeemaker businesses in the United States and Canada. The Company sells Keurig Single Cup Brewers and Arabica bean coffees, including Fair Trade Certified, certified organic, flavored, limited edition and blends offered in K-Cup and Vue packs (single serve packs) for use with its Keurig Single Cup Brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, the Company produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company distributes its products in two channels: at-home (AH) and away-fromhome (AFH). Currently, GMCR has 13% penetration in at-home coffee brewer of the US market. Furthermore, it sells its products to retailers, including supermarkets, department stores, mass merchandisers, club stores, and convenience stores, restaurants, hospitality accounts, office coffee distributors, and partner brand owners, as well as to consumers through its Website. THE CONTINUATION OF GROWTH STORY KEURIG 2.0 RELEASE The new machine, Keurig 2.0, will be released in the third quarter of 2014. This $189 machine can brew more than one cup...
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...Keurig 2.0 On a whim, shopping at Kohl’s , I purchased the Keurig 2.0 350k. Our old Keurig could brew our own coffee as well as the coffee K-cup packs and other non-branded k-cups that flood the market. Excited, I purchased the coffee filter that reads, “Solofill Filter Cup for Keurig 2.0,” in order to brew our own specialty coffee. When I returned home, I tried it out, but, the Solofill filter did not work. Consumers assume a new version of the old product is the same with improvements and when it is not the same the product, it is not a good buy and therefore, consumers lose trust and the company loses business. The Keurig 2.0 350k added a water filter and in addition, to making coffee by the cup, it also made coffee by the pot. These are excellent additions that appeal to the Keurig consumers and thoughtful marketing came into action from Green Mountain, the makers of the Keurig 2.0. Except, what they took away from the famous coffee maker disabled trust in the Keurig product, not only for the consumers, but also companies that produce other k-cup compatible coffees....
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...COMPANY INFORMATION Name :: Green Mountain Coffee Roasters, Keurig Coffee Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com Industry :: Processed & Packaged Goods- Coffee Makers BACKGROUND & HISTORY Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012). SWOT ANALYSIS Strengths - Brand strength - Unique & large variety of products - Customer loyalty - Environmentally conscience, socially responsible - Innovative products and research - Strong growth potential - Product consistency Weaknesses - Not a strong online presence - Supplier dependence - Concentrated customer base - Single product line - Returns - Keurig defects - Capacity constraints Opportunities - Expanding to new markets - Collaborations - Increased purchases - Keurig Acquisition - Expansion to hotels and businesses - Expand suppliers Threats - Intense...
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...Green Mountain Coffee Roasters, Inc. (KGM) was created in 1981 as a small café in Waitsfield, Vermont. In 1993, the Company went public and extended its first wings around Keurig, Inc. It acquired the rest of Keurig in 2006 and the combined company has made tremendous changes in the way U.S. prepares their beverages whether at home or at workplace through the innovative Keurig Single Cup Brewing System. The Company produces and sells more than 60 different brands and 400 varieties of coffee, cocoa, teas and other beverages in K-Cup packs and Vue packs, as well as a variety of specialty whole bean and ground coffee. The Company operates in three different business units: the Specialty Coffee business unit, the Keurig business unit, and KGM...
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...Keurig in the Netherlands Table of Contents Review of the Netherland Market ……………………………………………………………2 Chart of Long and Short Distributions ………………………………………………………2 Introducing Keurig to the Netherlands ………………………………………………………3 Picture of Contrasting Keurig’s ……………………………………………………………...3 Bringing Keurig into the Netherlands …………………...................................................4 Conclusion …………………………………………………………………………………….5 Works Cited …………………………………………………………………………………...6 Review of the Netherland Market The Netherlands have an advanced free market economy and it is one of the top ten richest countries in the world. Currently the Netherlands hold an 849 billion gross domestic product that is currently growing at about two percent. The continued growth is mainly due to the increase in international trade, the largest engine of the Dutch economy (CIA). These figures make the Netherland’s market an optimal place to enter a business. Marketing and distributing in the Netherlands is much like marketing and distributing in the United States. I will use marketing techniques such as using my logo, products, and brand name to market my products on the internet, television, and through retail. To distribute my products, I will contact big box stores such as HEMA or Giant, which are department and grocery stores, to make deals with them to get my products on their shelves (Big). Local coffee shops that are in the Netherlands will be other sources I will contact...
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...quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate process to optimize the coffee’s taste and aroma. From a small café in Waitsfield, Vermont to a recognized leader in specialty coffee and brewing platforms, GMCR is now leading the way to the successful marketing of expanding their brand awareness and enabling environmentally and socially responsible business practices. By partnering and promoting with Keurig® Brewing Systems, GMCR realized a...
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