Case Study: Keurig At Home: Managing a New Product Launch
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Case Study: Keurig At Home: Managing a New Product Launch
Case Study
Keurig at Home
Managing a New Product Launch
I - Problem:
How can we penetrate and obtain the desired positioning in the at-home coffee consumer market segment, without loosing our market share of the office coffee service market segment and maintaining our selected gourmet coffee quality. Given less than six months for launching the product, limited budget for production costs and changing coffee portion packs.
II - Decision Factors:
(1) Alternative Courses of Action
Manufacturing Product Cost - $ 200
Suggested Retail Price - $ 199 to $299
Acceptable Consumer Price Range - $ 129 to $ 199
Distribution Channels - KAD's and Internet
Suppliers - GMCR and other roasters
K-Cup price, variety and sizes.
Production costs and marketing budgets.
(2) Uncertainties in the Competitive Environment
Product launching, initiatives, and marketing efforts of the competitors.
Product acceptance and consumer behavior towards the B100 brewer.
IV - Alternatives
1) Launch the new model B100, using the existing commercial portion pack; K-Cup.
2) Launch the new model B100, developing a new version of the coffee portion pack; Keurig-Cup.
V - Best Alternative & Recommendations
The best alternative is the (1) Launch the new model B100, using the existing commercial portion pack; K-Cup at the price of $ 249. For a limited time (first 3 months after the product launch) we will offer a $50 mail rebate off the original price. This way the consumers will acquire the brewer for more or less what they were expecting to buy it. The company will be having break-even point for only that period of time. After this, the home brewer will be sold at the original price, and the company will start having profits.
In addition, the following plans will be use to support the best alternative:
Develop a plan with office managers and key users to introduce a controlled distribution and usage program of the K-Cups portion packs, to prevent the theft...