Keurig Incorporated Harvard Case Solution & Analysis

Keurig Incorporated Case Solution

BACKGROUND

The company was established in the year 2003. During that time,the company’s establishment waste riskiest approach by its management.  It is considered as a good start when the company introduces its product with well-known market retails such asDunkin Donuts and Starbucks. They offer their coffee by using single–cup brewing system. This is the reason which transforms the newly formed company into a market leader. However, different challenges have been faced by the company in its previous-years. In a short period of time, small companies-change into public companies with the large number of sales volumes. The strategy of the company is to ensure perfect temperature, pressure, uniqueness and packing among its products, which would make Differentiated from its competitors. Few competitors were operating in the market such as Salton, Flavia, Senseo and Home Cafe, in the market however,Keurig is considered as the market leader.

GAINING FAMILIARITY

Keurig, the famous coffee maker, entered in the year 2003 and at that time the  industry was not well established. It was a subsidiary of Green Mountain Coffee Roasters, Inc., the companycameup with a unique concept, no mess–no scooping, or dealing with filters, and ready within60 to 90 seconds. Within a very short period of time, the company managed to acquire a large market share due to its well-known users such as Dunkin Donuts and Starbucks.

            The main feature of company’s product which made it different from its competitors was offering seventy-five options with a variety of flavors while the competitors offered only five and eleven options. In addition to this, Keurig’s system was following the online system in many retail outlets. Furthermore, the company also distinguished its product by licensing its product ensuring the symbol of the superior quality of K-Cup.

RECOGNIZING THE SYMPTOMS

 Although due to the great startup, Keurig faced many challenges in its earliest growth stage. Keurig was a new player in the industry, therefore the owner of the company considered this as risky step. This is because it was transparent in front of management of Brewer. Therefore, the burden of the cost is also a concern for the management, as it should be balanced between quality and cost.

IDENTIFYING GOALS

 Keurig wants to change the newly introduced product position from risky phase to well-developed and growth phase. Moreover, Keurig wants the launching and designing of the product tobe excellent. Keurig planned to capture significant market share by differentiating its product from the available market competitors. In addition to this, the designed goals should be time-based so that the company would perform efficiently.

CONDUCTING ANALYSIS

The company has engaged with large retailers however,the arrival of new competitors cannot be ignored since new entrants are coming with more innovative products. The year 2005 showed that Keurig was not generating enough sales as at that time Keurig was considered a small scale company.(Jones1, 2001)

However,isolation showed fast growth in the year 2007 with respect to the volume, which indicatedthatina short time of two years, Keurig was in the position generalization volume of sales among its competitors. Each year Keurig’s retail stores were increasing, and it was expected that therewith increase of 500% of retail stores from the year 2004 to 2007. (Weitz, 2001)................

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