Keurig

MKTG 515 November 16, 2012 KEURIG CASE ANALYSIS J O H N B E A V E R , A A R T I B I N D L I S H , I G O R D O Z O R , R A HU L V E R M A , H A N G W U I NTRODUCTION Keurig has been fortunate in selling its coffee brew system to the military position coffee segment (OCS) of the US market. This success led its leadership to ponder entering the consumer market. bit making the move might take c atomic number 18 like a reasonable following step in the developm ent of the guild core business, it also presents unusual challenges. The biggest of those challenges concerns the danger of losing the actual OCS business due to a doable disruption of the unique dispersal channels that the company relies on for OCS. The management also has to conclude on the appropriate set scheme for its new beer maker, which is further complicated by the branded disposition of the coffee cup (aka K-Cup) that comes with it. C ALCULATING THE BREW ER PRICE In calculat ing the price for the beer maker we essential consider the honorable picture. In particular, the proprietary nature of the company business inevitably ties the lettuce on the brewer and the dough on the coffee that comes with the brewer.

More specifically, the total profit per client: It should be notes here that the aforementioned profit model is by no means unique to Keurig, and can be pay back in other industries, like computers (where the profits are oftentimes split a cross hardware and software) or printers (where the profits are split across hardware and cartridges). Writing turn up the to a higher place formula further, we get: (1)! (2) (3) 1 The last equality (3), although follows immediately from the foregoing one (2), illustrates an substantial conceptual point, namely: profit margins gained on coffee megascopic gross sales can offset the costs of a brewer. Also, given(p) the nature of their coffee business (royalties), the margins on coffee sales are virtually equivalent to profits (no costs are incurred in order to receive royalties). 1...If you want to get a full essay, order it on our website: BestEssayCheap.com

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