Keurig Katy Winge Mackenzie Wagner Samantha Heath

Overview I.Situational Analysis A.Internal Environment B.External Environment C.Customer Environment II.SWOT Analysis/Matrix III.Competitive Advantages IV.Strategic Focus V.Marketing Goals and Objectives VI.Marketing Strategies VII.Marketing Implementation VIII.Evaluation and Control IX.Financial Projections

Internal Environment ● Goals, objectives, strategies ● Current market performance ● Current/anticipated resources ● Current/anticipated cultural and structural issues

External Environment ● Top 3 Competitors: Starbuck’s, Nestle, Peet’s Coffee & Tea ● Economic growth and stability: Competes in the Coffee Industry ○Mature stage, very intense competition, industry anticipated to grow at a rate of 7.4% ● Legal and regulatory trends: Keurig is being sued by Club Coffee ● Technological advancements: Keurig 2.0 machines, Social Media ● Sociocultural trends: Consumers prefer to brew their own coffee at home, focus on convenience, quick brewing, ease of use, and minimal cleanup, consumers demand for Fair Trade Labels

Customer Environment ● Current/Potential Customers ○Demographics: Men and women ages 18 through retirement ■Middle to upper class ○Geographics: United States and Canada ■Potential Customers in United Kingdom, Australia, South Korea, and Sweden ○Psychographics: On-the-go people who value their time ■Status orientated with some brand loyalty ● What do customers do with the firm’s products? ○Efficiency ○Convenience ○Quality ○Choice

Customer Environment cont. ● Where do customer’s purchase firm’s products ○Intensive Multi-Channel Distribution ■Local and National Retailers ●Supermarkets, Department Stores, Mass Merchandisers, Club Stores ■Directly from Keurig Green Mountain’s website ● When do customers purchase the firm’s products ○Promotions & Competitor Initiatives ○High amount of sales during last fiscal quarter of the year ○Weather

Customer Environment cont. ● Why and how do customers select the firm’s products ○Quality ○Convenience ○Choice ○Wide variety of brand partners ○First-Mover Advantage ● Why do potential customers not purchase the firm’s products? ○Needs, preferences, and requirements are not met ■Prefer old-fashioned way of making a cup of coffee

SWOT Matrix

Competitive Advantage- Value Proposition ●Steady financial performance attracts businesses in the industry ●Easy to use machines attract consumers with busy lifestyles ●Keurig stores ○Enable Keurig to overcome their weakness of limited customer interaction ○Store associates can build relationships with customers and find out what their coffee preferences are and what products will best suit the consumer's needs ○Competitive advantage: Keurig demonstrates its brewing system at the store and customer’s can buy the product there ●1 major limitation: Keurig relies on a single supplier ○Ex: Customer orders an item from the store and the supplier forgets to fulfill the order

Strategic Focus ● Diversification: Keurig has many internal strengths and faces many external threats in the Coffee Industry ○ Competition is so intense that Keurig must differentiate themselves ● Keurig stores allow Keurig to differentiate themselves from their competitors in the industry by providing customers with a unique in- store experience

Marketing Goals and Objectives ● Enhance Customer Relationship ○ Open Keurig Stores ○ Employee Training Program ● Increase Product Awareness ○ Increase Reach by Marketing Activities ○ Increase Sales

Target Market ●Primary Target Market ○Men and Women years old ○On-the-go people who value their time and convenience ○Want a quick and effortless product at the touch of a button ○Have multiple product preferences per household ●Secondary Target Market ○Men and Women years old ○Value convenience and simplicity ○More browsing time, and willing to spend more money ○User-friendly products

Marketing Strategies- Marketing Mix ● Product ● Pricing ● Distribution ● Promotion

Tactical Marketing Activities and Sequence ● Product Activities ● Pricing Activities ● Distribution Activities ● IMC Activities

Evaluation and Control ●Enhance Customer Relationship ○ Open Keurig Stores ■Reassess store success at 6 month and 1 year marks ■Measure use of loyalty program ■Survey customers experience, buyer behavior and motivation ○ Employee Training Program ■Pre and Post test evaluation ●Increase Product Awareness ○ Increase Reach by Marketing Activities ■Survey customers knowledge of product and distribution ○ Increase Sales ■ Track revenue and product sales

Financial Projections ● Market potential ○ 24 million ○ million ● Sales forecast ○4.2 million ○4.536 million

Coming Soon… The Keurig Store!