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Keurig - Assignment Example

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The data was collected from these test locations and from the feedback that was received from the office, as well as from the different facility managers in these locations. As per the feedback received by the Keurig company, these managers had mentioned that the OCS was considered to be a wonderful type of benefit, which they were able to provide the company staff and this created a better atmosphere in the entire workplace. Indeed the office managers were really positive regarding the performance and the benefits that the coffee machine placed by the Keurig Company since now they feel that, the staffs enjoy the coffee breaks because of the in-house availability of the coffee. In addition to this the company is also able to save valuable office time with the OCS machines, since the staff would otherwise be wasting precious time by taking coffee breaks outside the organization, at the nearest coffee houses. The flavor offered by the Keurig’s coffee machines was also quite acceptable to the staff, since there was a total of eight varieties of flavor. Apart from this the marketing team at Keurig maintained that, the use of the OCS coffee machines would lead to lowering the wastage levels of the coffee, that would have otherwise been washed off the drain due to the flavor problems , incorrect type of brewing, or because the coffee becoming stale. In addition to this the OCS machines could be easily cleaned and maintained quite efficiently. The company also marketed what was popularly called

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as the K cups. Thus as per the company management it was decided that, the company would market and sell both its brewers as well as the K cups through its regional distributors to the offices. Thus the Keurig company was very successful in this market segment, since there was approximately a total 1,700 of the OCS distributors and each one of them were able to achieve a whopping sales of $1.4 million, which was a tremendous amount with respect to the coffee market in the US. Out of the total OCS distributors of the Keurig Company, an approximate of about one third of them very well enjoyed sales of over $2.5 million. Due to this success the company also learnt to market several other ideas for marketing its brewers as well as the K cups. According to this the company saw the huge possibility of marketing its brewers to its distributors, at a price of around $1000. The top management also felt the need for aggressive marketing that was to be launched by the distributors, taking the Fuller Brush model of door to door marketing. In the case of the OCS it was to be an office to office marketing strategy by demonstrating the coffee machines in offices and then to place the machine for at least a week to prove its efficiency and usefulness to the office managers and the staff. Thus it can be concluded that due to the strategies taken by the marketing team in this office market segment, the Keurig Company was very successful in marketing its brewers along with the K cups and the sales statistics and the earnings of the company proved this. b) What advise do you have for Nick Lazaris concerning his dealings with MTS (k-cup filling machine

Summary

a) How attractive is the Keurig system in the office coffee market? Answer: The Keurig’s office coffee systems most popularly called as OCS, was at first introduced into the office setup after some doubts by the company. The company had doubts whether the office staff would like the coffee made from the coffee machine and its flavor, whether the staff would be in a position to operate the coffee machine and on to top all this, whether the office managers will agree to pay a premium for such coffee prepared by the coffee machine…
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