1. Keurig At Home Post Kotler

2. Contents Evaluation of the current plan CompanyOverview Suggestion of marketing Strategies Q & A 2 1 3 4 2

3. 1. CompanyOverview Post Kotler

4. Do you like coffee ? Instant coffee? Gourmetcoffee? VS. 4

5. Keurig become a leader in OCS market Peak of coffee consumption (16.5 pounds per capita) Mid-1940s Popularity of soft drinks / coffee consumption decline 1960s Low coffee consumption (6.1 pounds per capita) Mid-1990s Keurig’s inception 1992 Gourmet coffeehouses reinvigorate the market Late 1990s Introduction single-cup brewing system (B2000 model) 1998 14.8% of brewer distributions offer a single-cup system for the OCS market 2000 44.8% of brewer distributions offer a single-cup system for the OCS market 2001 Keurig became a leader in OCS market (Keurig had shipped over 33,000) 2002 Keurig’s plans to enter into at-home market Provide the largest variety of coffees for single-cup brewing system 2003 5

7. Delicious

8. Variety

9. Fast

10. Convenient 6

11. Biz Model of Keurig Rent/free brewers Sell brewers Fee Office Keurig KAD Sell K-Cups Pay (Wholesale price) Pay : per $0.4~0.5 Licensing Arrangement Pay : per $0.25 U.S. Single-Cup Brewer Placement In 2002 K-Cup loyalty : per $0.04 Sell K-Cups Keurig Others Roaster Flavia Filterfresh 7

12. Can Keurig make a success at home market as much as they did in the OCS market?

14. Variety of gourmet coffee roasters - more than 75 coffee varieties

15. Keurig-aware customers in OCS market

16. Strong partnership with KADs

18. 2.Evaluation of the current plan Post Kotler

19. Evaluation - Product GOAL Maximize at-home biz & Protect OCS market STRATEGY Introduction of a second portion pack Current Plan Evaluation 11

20. Evaluation - Price GOAL Maximize at-home biz & Protect OCS market STRATEGY Pay greater attention to the pricing of the Brewer Current Plan Evaluation Manufacturing cost : $200 ~ $220 12

21. Evaluation - Place GOAL Maximize at-home biz & Protect OCS market STRATEGY Direct marketing & leverage KADs Current Plan Evaluation KeurigRoaster End User KeurigRoaster KADs End User 13

22. Evaluation - Promotion GOAL Maximize at-home biz & Protect OCS market STRATEGY Targeting Keurig Office users & Demonstrating Current Plan Evaluation 14

23. 3. Suggestion of marketing Strategies Post Kotler

31. Q & A