Keiurig Case Analysis

A passage I found on Keurig’s company website says the following about their KOLD product. “We view our initial KOLD system launch as a pioneering innovation. We learned from consumer feedback that while the KOLD system delivered great tasting cold beverages, our initial execution of KOLD did not fully deliver on their expectations, particularly around size, speed, and value. Because of this, we are discontinuing the first generation of our Keurig KOLD system. While we work to incorporate our learnings into future beverage systems, we are offering a refund to consumers who purchased a KOLD system”. Essentially, their system had flaws that consumers were quick to react towards. Their target market for this system consists of anyone who has interest

Keurig has a wide variety of brewers they offer for sale to the consumer, including single serve, multiple serve, fully programmable, and premium features. However, none of them are equipped with the function to brew cold drinks. Hence, this KOLD system allowed a unique selling point and competitiveness into the brewing industry. Their product line all have the same function which is to brew coffee, but the KOLD brews cold drinks. The product design itself looked promising, with a huge water reservoir, sleek and modern design, as well as no CO2 canister needed or messy syrup bottles. All you need to do is put your pod in and let the machine do all the work. The product was also very user friendly, with big buttons and contents that described how to use it. Though, with that comes the price, and the pods are expensive to buy. To compare, a pack of 12 cans is about $5 at a grocery store, and 4 Keurig pods are $5. Each pod produces 235 ML, but one single can from the store gets the consumer 355 ML. Not only is the consumer getting little product, but they are also getting 8 cans less. The value simply is not there, but due to the fact this was the only product of its kind they could charge whatever they wanted and sell