Keurig Case Study

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Keurig was a company founded in 1992 with aim in manufacturing a brewer such that the brewer can brew one cup of fresh coffee instantly and without any wastage. In the beginning the company launched the brewer machine in the office segment and it was a success. The company was supported by strong Venture Capitalists. The first brewer launched in office segment was called B2000 in the year 1998. The Green Mountain Coffee Roasters Inc. (GMCR) had a license agreement with Keurig to manufacturer K-cups and pay a royalty of four cent per K-cup to Keurig. In the year 2002, Keurig sold its stock to Van Houttle Inc. to get fund of 10 million dollar so as to launch in the home segment. With this there are now three main Venture Capitalist in Keurig…show more content…
The brewer was connected to water piper which had a capacity to hold twelve cups and its reservoir is refilled automatically. The K-cup was built in the cone shape which contained fresh coffee and it didn’t came in contact with moisture, air or light. The K-cup was inserted in the machine over which the machine would puncture a hole on it and hot water flow will pass through the cup to brew hot coffee. Cupping is the process of testing the coffee. Keurig wanted to serve same coffee taste anytime you consume coffee from the brewer. So they developed a system where the taste was consistent throughout and was tested by cupping. Keurig has two main sectors to market that is commercial sector or the office sector and another is Home sector. Keurig decided to enter the office sector first as the brewer they designed was expensive which was not acceptable by the consumers at home to buy such an expensive brewer and there already existed a good market for office as Startbucks created a space to sell premium coffee in the offices. Another great success of the keurig was the design of its K-cup which was sold in tremendous quantity after its launch because it brewed fresh coffee…show more content…
The K-Cups were used for commercial brewer so Keurig designed and launched a different cup named Keurig cup that was for Home which were different in color and name. Here the Roaster of the Keurig cup will manufacturer Keurig cup to sell it over internet for Home purpose while the K-cup was sold by two channels that is KAD and direct selling over internet. The Roaster GMCR which was the first Roaster company for Keurig suggested in the meeting that the two design for cups should be merged into one cup design as the two design were creating complicity among consumers and many consumers may use wrong cup in the brewer and it was cumbersome to store two different type of cups in

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