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Drink-Works: Home Bar by Keurig Case Solution & Answer

Drink-Works: Home Bar by Keurig

Value Proposition

 

Customer Segmentation

Drink works customer segmentation is based upon the different factors such as age, frequency of consumption, hosting etc. for consumer choices, it has been identified the consumer choices has been affected by various factors such as economic, social, cultural, personal and Psychological factors. These factors play an important role in consumer interest. For instance, the high premium pricing strategy makes a consumer little less attractive towards the home bar. This means that the company should try to develop its strategy in such a way that reflects the customer choices. The drink works customer segmentation divides into the following six segments depending upon the above factors;

Situational Analysis

SWOT Analysis

The SWOT analysis is used to identify the company’s internal structure such as strength, weakness, opportunities and Threats. It is significantly important for the company to maximize strength, reduce weakness, exploit opportunities and overcome Threats. The following are the Keurig SWOT analysis; (see Appendix)

Strength

Keurig is known for its high-quality product and brand loyalty. It has a strong strategic work force and partnerships. The workforce of the company is extremely strong and energetic, that it makes less than a minute to prepare beverages with no hustle. The company is known for its “CSR activities” which helped the brand to promote its loyalty and value.

Weaknesses

The company is the single based china manufacturer, and the technology used by the company allows it to brew only one cup a time. It has a broad category of varieties, but what makes it a little disturbing is its high premium pricing strategy. Since the company is only in china, so its absence in other nations makes it less competitive in the market. The K-Cups used by the company for brewing are not environment friendly and recyclable and it has caused tons of problems in the society.

Opportunities

Keurig has a lot of opportunities to make worthy position in the market such as the company can globally expand its outlets to the other regions. The company can also work on its cup and make its more environment friendly in order to avoid any critics’. The company can also expand their food chain other than coffee and make it more appealing.

Threats

The company is facing an extreme threats from its competitors such as Starbucks and dunking because of their high global reach. Another threat that imposed the company is its single manufacturing scheme. Keurig is still depending upon its ingle manufacture for its machine needs, whereas its competitors have its own brewing machines. (C, 2016)

Recommendations

  • It is recommended for the company to sell its products through e-commerce or online website in order to increase the cash flows and running costs. Regarding this issue, it is hard for the customer to purchase the innovative products without touching or operating them. In order to resolve this issue, the company can start the advertisement blogs and promote the customers to purchase their products followed by informed consent in order to avoid any mess.
  • Moreover, the company can look into its pricing strategy and make the high-quality products by looking at the economic factors.
  • Also, the organization should offer non-alcoholic cases to the clients because of the explanation that it would have no need to any face administrative resistance &customers would be able to add liquor to their favored decision and amount…..

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