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Analysis of Keurig coffee makers and pods

Customer (Who specifically is helped?)
Busy individuals and households who want a single, fresh cup of coffee without the effort or waste of brewing a full pot. Keurig also serves small to medium-sized offices seeking a simple, mess-free coffee solution for employees and guests.
Pain (What is the frustration for the customer?)
Traditional coffee brewing is time-consuming and often results in wasted coffee, while the alternatives are unappealing; instant coffee tastes inferior and daily coffee shop trips are expensive. This leaves the customer without a quick, affordable way to make a single cup of good-quality coffee at home.
Solution (How does the product remove the frustration?)
Keurig's pod-based system brews a consistent cup of coffee in under a minute, directly solving the convenience problem. It occupies a strategic middle ground by delivering a taste superior to instant coffee at a per-cup cost far lower than a café.
Offer (Pricing, warranties, terms)
Keurig sells the brewing machines at 60$ to encourage widespread adoption. The company's main profit is generated from the continuous, high-margin sale of proprietary K-Cup pods required for the machine to function (25$ per 30 pods).
Channel (How do customers discover and purchase the offer?)
Customers purchase Keurig brewers through major big-box retailers, department stores, and online marketplaces. The essential K-Cup pods are sold ubiquitously through these same channels and in nearly all grocery stores, ensuring they are always convenient to repurchase.

Exercises for the reader

  1. Can you think of a totally different way to efficiently help this market?
  2. Can you think of a different market where an analogous strategy would work?
  3. What is the underlying need that the customer has beyond the immediate problem?

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