April 29, 2012
Keurig, Inc. was founded on “excellence”, which is the Dutch meaning of its name, and the innovative principle of allowing consumers to be able to make a single excellent cup of coffee whenever they wanted it at home or work with their K-cup single cup brewing system. The Keurig system was such a hit in offices that the company knew the next step was to position themselves to sell units to individuals for use in their homes. At home coffee brewers were always faced with two things loose coffee grounds to clean up and coffee that never quite tasted right. The Keurig system would eliminate both of those issues for the …show more content…
Pricing strategies and market research are extremely important when a company is preparing to bring a new product out in the market. Keurig used the strategy of placing the units into offices, generating interest in the units and the specialty coffee products that you could get at home. A smart move in any book, the company did not bring out a new product with no consumer interest, it brought out a product that people already wanted before it ever hit the showroom floor.
Keurig had a plan all along, concentrate first on the “away-from-home” market and use its success to springboard the company into homes nationwide. The core strategy was to remain unchanged, “we are committed to a multi-roaster strategy that relies on strong relationships with selected gourmet coffee roasters who take a great deal of pride in the coffee consumption experience that supports the meaning of their brand to consumers (Cravens & Piercy, 2009. Pg. 573)”. After Keurig saw the interest in the units and once the research was completed they had an idea of what people were willing to pay for the units, demonstrations of the units were a selling point, along with sales and free coffee. Keurig was not the only single cup brewing system out there; others existed but did not promote the “care free” clean