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 create from raw stuff system to the military position coffee segment (OCS) of the US market. This success led its leadership to ponder entering the consumer market. sequence making the move might take c nuclear number 18 like a reasonable conterminous step in the developm ent of the alliance core business, it also presents peculiar 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 proprietary disposition of the coffee cup (aka K-Cup) that comes with it. C ALCULATI NG THE BREW ER PRICE In calculating the price for the beer maker we mustiness consider the honorable picture. In particular, the proprietary nature of the company business inevitably ties the net on the brewer and the wampum on the coffee that comes with the brewer.

More specifically, the total profit per node: It should be notes here that the aforementioned profit model is by no means unique to Keurig, and can be play in other industries, like computers (where the profits are frequently split a cross hardware and software) or printers (where the profits are split across hardware and cartridges). Writing come to the fore the to a higher p! lace formula further, we get: (1) (2) (3) 1 The last equality (3), although follows immediately from the foregoing one (2), illustrates an authoritative conceptual point, namely: profit margins gained on coffee rough-cut sales can offset the costs of a brewer. Also, disposed(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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