Marketing Mix: Keurig’s Coffee Brewer Machine

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Table of Contents

Introduction
Product Section
Place Section
Promotion Section
Price Section
Conclusion
References

Introduction

A marketing mix is a set of tools and parameters by manipulating which marketers try to satisfy customers in the best possible way. The specific content of the marketing mix depends on many variables. First of all, on the characteristics of the market and product – for example, on the length of its life cycle. The marketing capabilities of the company itself are also important. The combination of these factors is used by the company to obtain the desired response from the target market.

Product Section

Positioning

The Keurig brand positions itself mainly as a beverage company and one of the leaders of the industry in North America. As stated on the brand’s website (2021a), the company is “the first to bring hot and cold beverages together at scale” (para. 1). Keurig offers a wide range of products, specifically, the coffee brewing machines, which the brand introduced first in 2003.

Brand Name

The brand operates today under the name Keurig Dr. Pepper which is due to the fact that in 2018, companies Keurig Green Mountain and Dr. Pepper Snapple Group merged together. Moreover, the company has more than 125 licensed brands under its name, including Krispy Kreme, Gloria Jeans’ Coffee, 7Up, and Schweppes. Many of Keurig’s brands are considered leaders in their respective industries.

Company Image

The company has a strong positive public image, stating to be environmentally friendly and responsible. The Keurig Dr. Pepper website (2021c) claims that “we take a strategic approach to channel our energy and resources toward those opportunities that are meaningful to our planet, our business and our people” (para. 2). With constant action toward environmental protection, the brand has secured a strong position as responsible and ethical.

Features & Benefits

Keurig K-Classic Coffee maker is one of the most popular products offered by Keurig. The brewer can make coffee, tea, cocoa, specialties, and iced drinks in under a minute. Moreover, the machine offers different cup sizes: 6, 8, and 10 oz. (Keurig, 2021d). It has programmable features such as Auto Off and a 48 oz. Water reservoir for brewing. Moreover, the brewer offers the benefit of using travel mugs by making the drip pod removable.

Packaging

The product comes in a single carton packing with all removable details inside. The package is designed in silver tones, with the image of the coffee maker on the front, as well as featuring several brand names that cooperate with Keurig.

Warranty

Keurig offers a one-year warranty from materials or manufacturing defects on all its coffee maker machines. The warranty does not cover damages that were caused by faults in use or the use of non-compatible brewing cups. If the machine is replaced through a warranty, the new coffee maker will have another year of guaranteed protection. However, it is explicitly stated that the warranty applies only to buyers from the United States and Canada.

After-sale Service

Keurig offers various customer support services for its coffee makers. For example, if the client needs help with changing appliances, they can address the customer service on Keurig’s website. Additionally, customers can shop for new K-cups there, choosing from vast assortments of kinds and tastes. Moreover, the brand offers an auto-delivery service – the subscription for new coffee pods at the chosen time.

Place Section

Channels of Distribution

Keurig K-Classic Coffee Maker is distributed through the brand’s official website, Amazon, eBay, Target, Walmart, Costco, Wayfair, Home Depot, and other large retail shops. Armstrong and Kotler (2017) state that “downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers” (p. 300). Customers can buy it online to be delivered to their houses on any of the listed websites or buy it directly in the shop.

Type of Distribution

Keurig uses the strategy of intensive distribution, providing its product in as many stores and outlets as possible. By choosing this strategy, Keurig successfully entered the market and ensured that the customers were aware of the brand’s products and benefits. The brand uses both direct and indirect – through retailers – selling for distribution of the coffee makers and pods. This approach allowed Keurig to quickly become one of the industry leaders.

Promotion Section

Message/Positioning

Keurig K-Classic Coffee Maker is positioned as a simple yet functional coffee brewing machine that is perfect for a household. The Keurig website also offers this coffee maker as a slightly more expensive package deal, “Starter Kit,” which includes a free K-Select or a K-Mini coffee maker or 50% off of top-selling coffee machines.

Advertising

Keurig actively promotes all of its coffee makers on the brand’s official website and social media pages. Paid promotions in social media are also employed by Keurig, targeting a wide range of audiences. Moreover, the brand uses SEO advertising to ensure that the potential customers see its products on the first page of search engines when they look for coffee makers. The brand has a strong online presence through which it advertises the majority of its products on the internet.

Personal Selling

Keurig does not use a personal selling strategy, seeing as the product is majorly distributed online and through retail shops.

Sales Promotion

Keurig actively uses package deals and discounts to promote sales. The examples of such offers are listed above: smart coffee subscription and “Starter Kit” are some of the most prominent cases of Keurig’s sales promotion strategy. As stated on the Auto Delivery website page (2021b), customers can save 25% with a subscription. Additionally, the BrewID function allows users to schedule smart coffee pod delivery without any effort.

Public Relations

The brand actively communicates with its audience on social media, building a strong positive presence. Moreover, the customers can always reach out to Keurig’s customer service through email or phone listed on the company’s website.

Price Section

Objective

The main objective of Keurig’s pricing strategy is to offer high-quality coffee makers for a reasonable price. The brand provides potential customers with a wide assortment of coffee makers for every segment of buyers.

Strategy

Keurig employs a competitive and value-based pricing strategy to ensure the best reach. Moreover, the brand can also use other pricing strategies for different markets: for example, when launching a new product, a market penetration strategy can be used. Overall, coffee makers are not essential goods that everyone needs; thus, the brand should balance between securing profits and creating affordable products.

Impact of Competition

There are three biggest competitors in Keurig’s industry, which are Bunn’s MyCafé, Walmart’s Esio, and Starbucks’ Verismo. However, Keurig has the strongest position on the market yet. If the competitors gained a bigger share in the market, Keurig would need to come up with a competitive advantage that would allow the brand to remain the leader or contemplate another pricing strategy.

Conclusion

Overall, Keurig has a good chance to maintain its leading position in the market in the future. The brand offers a wide variety of products where every customer is able to find what they need for a reasonable price. Moreover, the presence of brand products in most of North America’s retail shops is another competitive advantage. The company communicates its values well and appeals to its audience on social media. It can be concluded that Keurig has developed a good marketing mix that fits its objectives and strategy perfectly.

References

Armstrong, G., & Kotler, P. (2017). Marketing: An introduction (13^th ed.) Pearson Education.

Keurig. (2021a). A modern beverage company. Keurig Dr.Pepper. Web.

Keurig. (2021b). Build your auto-delivery order. Coffee Subscription | Keurig Auto-Delivery. Web.

Keurig. (2021c). Corporate responsibility. Keurig Dr.Pepper. Web.

Keurig. (2021d). Keurig® K-Classic® Coffee Maker. Keurig.com. Web.

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