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SWOT Analysis- Keurig Products

In this post, I'll be displaying an objective view of where the company Keurig and Keurig products stand on a SWAT basis. I hope you enjoy my different points of discussion.

STRENGTHS

• The Keurig system comes equipped with three key elements; 1. Coffee brewer that controls amount, temperature, and pressure of water. 2. A portion packs system with ground coffee beans. 3. A varied coffee selection with multiple choices available in gourmet coffeehouse

•The Keurig commercial-market brewer includes an “always on” feature that brews coffee in less than 1 minute

•Keurig commercial-market brewer includes an automatically refillable water reservoir that maintains up to 12 cups of water at brewing temperature

•The Keurig brand “K-Cups” were impermeable to air, moisture, and light, allowing contents to stay fresh up to 6 months.

•Broad coffee selection available through licensing with gourmet coffee roasters

•Control of critical elements in the brewing process that recreates amazing flavor experiences for consumers

•Keurig Brand brewer became the leading position of single-cup brewing systems in 1998

•Keurig had shipped more than 33,000 brewers in North America by the end of 2002

•Keurigs market research for consumers, allowing them to gain feedback and information on the brewing system.

•Keurig was one of the first entrants in the single-cup brewing product category

•Keurigs KAD referral program, which offered attractive incentives for the marketing of a new brewer system.

WEAKNESSES


•Keurig doesn’t have enough resources to launch certain brewing systems through the retail channel, for example the B100


•Keurigs lack of a brewer investment to recover from potential KAD under pricing sales


•Keurigs B100 brewer system costing more than the recommended price range ($300) and including designing issues


•Keurig can’t market their product to coffee drinkers in the office segment without KAD assistance


OPPORTUNITIES

•Potential increase in the amount of Americans drinking gourmet coffee on a daily basis

•Possible entrance of more gourmet coffeehouses into the market, gathering an even larger consumer segments

•Possible creation of a more enhanced brewing system under Keurig Company launched for the at-home segment of consumers

•More beneficial licensing agreements arranged between the Keurig company and GMCR

•Potential increase in the amount of partnerships established between the Keurig company and roasting companies

•Possible increase in the amount of stocks sold under the Keurig company and between other coffee companies

•Potential consolidation of smaller, significant shareholders under the Keurig company

•Potential increase in the amount of “K-Cups” produced by other gourmet coffee companies

•Potential increase in the amount of K-Cup flavor varieties produced by other gourmet coffee companies

•Positive behavior changes on consumer spending when it comes to buying/drinking good-quality coffee

•Potential increase in the amount of sales revenue under the OCS market

•Possible increase in the amount of distributors offering single cup brewing systems under the coffee market

•Future increase in the amount of K-Cups sold under the Keurig company

•Potential increase in the amount of KAD distributors located in North America

•Possible establishment of KAD distributors in other parts of the world besides North America

•A potential increase the price range of K-cups sold to office managers

•Possible increase in revenue for retail consumption of gourmet “at-home” coffee markets

•Increase in the retail purchases of coffee maker appliances located in the United States

•Potential advances in the electronic sales force of the Keurig company and their products

•Increase in consumer awareness of the Keurig Company’s online website.

•Possible inventions of a new portion pack style for coffee beans under the Keurig Company.

•Future entry of multi-source consumer markets in terms of brewer products and coffee sales

•Possible increase of more marketing activities under the Keurig Company.

THREATS

•There might be a switch of consumer demand from the gourmet coffee market to the soft drink market

•Potential increase in future competitors of the single-cup brewing based market, creating a disadvantage for the Keurig Company

•European based coffee companies might try to penetrate the North American Market, creating competition for the Keurig Company

•The Filter-fresh company ( Canadian based coffee company) might attract more consumers in the gourmet coffee market with their style of brewing coffee

•The Flavia company (Britain based coffee company) might decide to enter the North American market, and present their style of brewing coffee

•The coffee retailer Starbucks might overpower the growth of whole-bean sales in the near future, compared to single-cup brewing companies

•Potential market entry of the gourmet coffee market by consumer product companies. For example, Mr. Coffee, Black&Decker, Sunbeam, and Hamilton Beach

•Possible invention of a more efficient way to brew coffee beans into coffee

•Salton Company possibly entering and introducing new technology of brewing towards the North American market

•Competitor prices potentially being offered at a better price than the Keurig Company

•P&G possibly attempting to enter the single-cup brewing market with new products and tactics 

•Nestle potentially entering the North American single-cup brewing market with a new style of brewing coffee

•Competitors possibly imitating the brewing style of the Keurig Company

•Future loss of the company’s OCS consumer market from their (Keurig Authorized Distributors).

•Possible switch of demand/loss of interest for the Keurig Company’s K-Cups.

•Potential denial of Keurigs' new products launched into the single cup brewing market

•Potential switch of sales from the company’s KAD’s to their website, affecting the KAD accounts

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