Iced Coffee Gets Its Day in the Sun
Coffee makers and coffee shops have become a very competitive market. As the economy sank, big brands like Folgers and Maxwell House were able to get the upper hand against coffee shops like Starbucks. Americans began making their coffee at home in order to save money. This led to the opportunity for Keurig and Green Mountain Coffee to develop the one cup brewing system for those who wanted to have their specialty coffee at home. As the article states, this marketing strategy has been very successful for the companies and now their next goal is targeting those who prefer iced coffee.http://www.nytimes.com/2011/07/06/business/media/06adco.html?_r=1&ref=advertisingandmarketing
1. Do you think Keurig will be able to gain a large target market with their iced coffees?
2. Is this a trend that will fade once summer is over or do you think they will gain loyal consumers who will continue to purchase all year long?
3. If the iced coffees are as successful as the original Keurig brand coffee, do you think this could put specialty shops in danger of losing a large group of customers?
I definitely think Keurig will be able to gain a large target market with their iced coffees-- the idea of a Keurig alone is genius, but I know plenty of people that only like iced coffee. For example I had a roommate in college that was trying to cutback on going to coffee shops, but she preferred the taste of iced coffee, so she would brew a pot of coffee the night before and leave it in the refrigerator. That way when she woke up, and all throughout the day for that matter, she could pour what she needed, add some ice and sugar and be on her way. I think for some people iced coffee is a warm weather fade, but for many that's just how they prefer it.
ReplyDeleteI honestly don't think if people keep buying Keurig machines/coffee that coffee shops will go out of business. While coffee drinks from coffee shops are delicious and convenient, a lot of people go to these shops for the experience. I know I could make a cup of coffee any time I want, but to be honest, I find myself going to a coffee shop to just sit and relax, or to socialize with other people. It's a social and sometimes productive atmosphere that is hard to replace.
1. I think that Keurig will be able to get a large following of their iced coffee. Iced coffee is a very popular drink and to have the convenience of making it at home should attract people because in the long run it will be cheaper than buying iced coffee every time they want one and it will save them time from going out and getting one.
ReplyDelete2. I think that loyal iced coffee drinkers will continue through the fall and winter months. There are some people who only get their coffee intake from iced coffee so I'm sure there are enough people to keep sales up when it's not hot outside.
3. I don't think specialty shops should be worried. People must have a Keurig coffee machine to even use the little individual cups and not everyone is going to just go out and buy a new coffee machine. Also, some people may not want to make their own and prefer going to buy one.
1.Do you think Keurig will be able to gain a large target market with their iced coffees?
ReplyDeleteIced coffee is definitely trending! The way the economy is going these days, people are going to use Keurig more often and Starbucks less. Not only can you find bargains on their coffee makers at Belks and other department stores but the vision of an iced coffee maker offers a larger market.
2. Is this a trend that will fade once summer is over or do you think they will gain loyal consumers who will continue to purchase all year long?
This trend will not fade as a large amount of people use coffee as a way to wake up on their way to work. We all know how hard it can be to attempt and sip your steaming hot coffee while rushing out the door. I honestly despise burning the roof of my mouth, therefore I prefer to drink iced coffee when I need a pick me up no matter the time of year!
3. If the iced coffees are as successful as the original Keurig brand coffee, do you think this could put specialty shops in danger of losing a large group of customers?
Although business is booming as it states in the article, “Selling coffeemakers “at cost, or sometimes at a loss,” is part of the company’s growth strategy to get the brewers in homes and offices and lock into a revenue stream for the coffee pods, according to its 2010 annual report.” The aspect of getting coffee on the run will never fade. Everywhere you look there are Starbucks and in many cities you can find two or three on the same section of adjacent streets. The economical coffee drinker will definitely put a damper on java houses yet the corporations that have been previously built will survive without a doubt.
1) I think Keurig will gain a large target market with this idea of making iced coffee at home. Many people including myself enjoy drinking iced coffee a lot more than hot coffee, so I think it will be a huge success.
ReplyDelete2) As I mentioned earlier, many people prefer iced coffee over hot coffee, so it will still be successful in the winter months. Just because it is cold outside does not necessarily get people to want hot coffee because heat is in buildings so that can keep people warm, not just coffee.
3) If this is a huge success, I still don't think it would put specialty shops in danger because a lot of people are loyal to their brands. Not everybody would be willing to try Keurig coffee and a lot of people love Starbucks, and I feel they would continue to go there.
I do believe that Keurig will be successful in influencing coffee drinkers with the option of iced coffee. The majority of people I know prefer iced coffee, but simply find it to be too much of a hassle to make at home. To save themselves the trouble they drink regualr coffee. If iced coffee was available readily and easily, I have no doubt it would be successful. I do believe that the trend of iced coffee might diminish once winter comes along because people will be looking for a warm drink to fill them up in the cold weather. However, I do not think this decrease will be so drastic as to hurt the iced coffee industry. Despite the success I believe that Keurig coffee will have at making iced coffee available at home, I do not believe that specialty shops will be harmed. People will continue to be too busy or tired to make their own coffee, especially if it takes longer than going into a coffee shop and paying for the product. Sometimes convenience is worth the money, especially on something that people find "necessary" to get through their day.
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