Green Mountain Coffe Roasters was a potential client for Renegade Communications - a full service advertising agency. The task was mine to research the brand, the market, its customers and the main insights for the agency, which they could use in their pitch. The presentation shows market history, value chain, competition, communication history, positioning map, target audience segmentation and key learnings for the agency.

1. GMCR

2. Agenda

3. Agenda
1. Coffee Market, Trends & Value Chain

4. Agenda
1. Coffee Market, Trends & Value Chain
2. Green Mountain Coffe Roasters - Company, Products & Brand

5. Agenda
1. Coffee Market, Trends & Value Chain
2. Green Mountain Coffe Roasters - Company, Products & Brand
3. Competition

6. Agenda
1. Coffee Market, Trends & Value Chain
2. Green Mountain Coffe Roasters - Company, Products & Brand
3. Competition
4. Consumers

7. Agenda
1. Coffee Market, Trends & Value Chain
2. Green Mountain Coffe Roasters - Company, Products & Brand
3. Competition
4. Consumers
5. Where does Renegade fit in?

8. THE MARKET

9. THE MARKET
History
from the 80‘s: coffee producers
and distributors take coffee to a
whole new level
1900-1980: commodity
Single-cup coffee brewers
Early `90s: Starbucks
Early `60s: coffee loses
ground to the soft drink
indusrty
elite expensive beverage till the early 1900`s
Growth of the US coffee consumpti-
on is fueled by the increased pro-
duction of coffee in Latin-America
Boston Tea Party
1668: first reference of coffe in the USA

10. THE MARKET
History
from the 80‘s: coffee producers
and distributors take coffee to a
whole new level
1900-1980: commodity
Single-cup coffee brewers
Early `90s: Starbucks
Early `60s: coffee loses
ground to the soft drink
indusrty
elite expensive beverage till the early 1900`s
Growth of the US coffee consumpti-
on is fueled by the increased pro-
duction of coffee in Latin-America
Boston Tea Party
1668: first reference of coffe in the USA

11. THE MARKET
History
from the 80‘s: coffee producers
and distributors take coffee to a
whole new level
1900-1980: commodity
Single-cup coffee brewers
Early `90s: Starbucks
Early `60s: coffee loses
ground to the soft drink
indusrty
elite expensive beverage till the early 1900`s
Growth of the US coffee consumpti-
on is fueled by the increased pro-
duction of coffee in Latin-America
Boston Tea Party
1668: first reference of coffe in the USA

12. THE MARKET
Trends
Specialty Coffee
Coffee drinkers beca-
me educated and their
„Special geographic microclimates produce beans with
bahavior has changed
unique flavor profiles, which she referred to as‚ specialty
over the last two dece-
coffees.“ - Specialty Coffe Organization of America
des extremely.
Niche audiences beca-
Sustainability me more mainstream
by the growing num-
Educated / Environmentally conciencious consumers bers of their consu-
Impact of Coffe Indusrty on Farmers mers.
With the growing de-
Single-cup Brewers mand of premium qua-
lity, specialty coffee,
Convenient market players positi-
Easy oned themselves ac-
Saving Money cordingly.
Fun

13. THE MARKET
Trends
Specialty Coffee
In order to preserve
the premium and spe-
„Special geographic microclimates produce beans with
cialty coffee sources
unique flavor profiles, which she referred to as‚ specialty
the coffee indusrty has
coffees.“ - Specialty Coffe Organization of America
to take action.
Supporting Farmers
Sustainability and their Communities
Support Centers
Educated / Environmentally conciencious consumers Loan Programs
Impact of Coffe Indusrty on Farmers Lowering Emission
...
Single-cup Brewers Market players incor-
porate sustainability
Convenient as a core value of their
Easy company and brand.
Saving Money
Fun

14. THE MARKET
Trends
Specialty Coffee
„Special geographic microclimates produce beans with
unique flavor profiles, which she referred to as‚ specialty
coffees.“ - Specialty Coffe Organization of America
The popularity of the
single cup coffee bre-
Sustainability wer has saturated
the market with many
Educated / Environmentally conciencious consumers different models and
Impact of Coffe Indusrty on Farmers types of single cup
coffee brewers.
Single-cup Brewers
Convenient / Clean / Easy /
Fresh / Fast / Economical /
Fun / Variety

15. THE MARKET
Value Chain
Producing Country Consuming Country
» Retail
Farmers / Import Processing /
» Factory » Export » » » Consumer
Smallholders Agents Roasting
» Catering
Fresh Cherries Cleaning / International coffee The roasting can take place either at a
Wet / Dry Pro- Packaging trade consists of processing company or at a coffee house.
cessing green coffee packed Roasters usually blend coffee of different
in 60-kg bags. origin and type together.
Beans have to be cle- Finally, the coffee is ground and branded,
ared for the market. sold on to the retailers or to the catering
units.

16. GREEN MOUNTAIN
COFFEE ROASTERS

17. GMCR
The Company
» Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and distribution facilities
» Values based company with a strong sustainability driven purpose, integrated into the business operations
» Advocate of high quality, farmer friendly, Fair Trade Coffee
» HOUSE OF BRANDS «
GMCR
Specialty Coffees Keurig Canada
Green Mountain Coffee® Keurig® Van Houtte®
Tully‘s® Timothy‘s®
Diedrich®
Coffee People® +sales in Canada

18. GMCR
The Company
» Growth-by-acquisition strategy to expand both their product offerings and their manufacturing and distribution facilities
» Values based company with a strong sustainability driven purpose, integrated into the business operations
» Advocate of high quality, farmer friendly, Fair Trade Coffee
» HOUSE OF BRANDS «
GMCR
Specialty Coffees Keurig Canada
Green Mountain Coffee® Keurig® Van Houtte®
Tully‘s® Timothy‘s®
Diedrich®
Coffee People® +sales in Canada

19. GMCR
Marketing Mix
Products
K-Cup single-serve coffee / tea / cocoa options / specialty whole beans & ground coffee
Brewing systems: Keurig brewing machines for K-Cups / classic brewers and grinders for specialty coffee products
Distribution
K-Cup coffee and Keurig brewing systems - traditional outlets (catalogs, mass, club and specialty retail stores),
- non-traditional channels (online retailers), and
- in-store consumption
- regional coffee shops across the U.S. and Canada (with recent aquisitions)
Price:
The average price per K-Cup is roughly $0.60 per cup compared to
Starbucks: $1.65
Dunkin Donuts: $1.39
7/11: $1.25
Standard tabletop Keurig brewers are available in approximately 10 models that vary in functionality (low-high involvement) and price ($100-300).
Communication
Historically: traditional retail outlets, catalog mailers, and the company website.
Nowdays: television commercials and social media

20. GMCR
Communication
2006
2012
2012
Clear / Concise
Corporate / Safe
Message Comes Across
Shot in HD / Good Lighting / Professional VO / Heavy use of After Effects

21. GMCR
Brand Essence
Performance Tonality / Personality
What do I stand for? Who am I? My way of communication
A leader in specialty coffe and coffee Natural
makers with socially responsible Responsible
business practices. Premium
Passionate
Caring
Differentiators Signals
Benefit & Reason Why How do I look?
Passion for coffee
Strong values
Being conciencious about ecosystems
Fair Trade

22. GMCR
Brand Essence
Performance Tonality / Personality
What do I stand for? Who am I? My way of communication
A leader in specialty coffe and coffee Natural
makers with socially responsible Responsible
business practices. Premium
Passionate
Caring
Differentiators Signals
Benefit & Reason Why How do I look?
Passion for coffee
Strong values
Being conciencious about ecosystems
Fair Trade

23. GMCR
Brand Essence
Performance Tonality / Personality
What do I stand for? Who am I? My way of communication
A leader in specialty coffe and coffee Natural
makers with socially responsible Responsible
business practices. Premium
Passionate
Caring
Differentiators Signals
Benefit & Reason Why How do I look?
Passion for coffee
Strong values
Supporting Ecosystems
Fair Trade

24. GMCR
Brand Essence
Performance Tonality / Personality
What do I stand for? Who am I? My way of communication
A leader in specialty coffe and coffee Natural
makers with socially responsible Responsible
business practices. Premium
Passionate
Caring
Differentiators Signals
Benefit & Reason Why How do I look?
Passion for coffee
Strong values
Supporting Ecosystems
Fair Trade

25. GMCR
Brand Essence
Performance Tonality / Personality
What do I stand for? Who am I? My way of communication
A leader in specialty coffe and coffee Natural
makers with socially responsible Responsible
business practices. Premium
Passionate
Caring
Differentiators Signals
Benefit & Reason Why How do I look?
Passion for coffee
Strong values
Supporting Ecosystems
Fair Trade

26. GMCR
Core Values
ESTHETICS / DESIGN FUNCTIONALITY
Status Quality
Prestige Price
Apperance
Design Thinking
EMOTIONALITY ETHICS
Happyness Sustainability
Pride Credibility
Adventure Responsibility

27. COMPETITIVE LANDSCAPE

28. COMPETITIVE LANDSCAPE
Competitive Segments
Primary
» K-Cups and Keurig brewing systems vs. companies that manufacture / market & supply
similar product offerings either via retail outlets (i.e. mass/grocery) or brick and mortar
establishments (i.e. coffee houses such as Starbucks).
» Other hot and cold coffee and tea beverage brands
Secondary
» Substitutes - soft drinks / functional beverages / etc.

29. COMPETITIVE LANDSCAPE
Positioning Premium / Specialty
STARBUCKS
PEET‘S
GREEN DUNKIN
MOUNTAIN DONUTS
Old-fashioned
Hip
Functional
Emotional
MAXWELL
HOUSE
FOLGERS
Conventional

30. CONSUMERS

31. CONSUMERS
Highlights 2011
» Coffee consumption is growing year by year.
» 40% of 18-24 year olds drink coffee daily, up from 31% in 2010.
» 54% of adults age 25-39, said they drink coffee daily, up from 44% in 2010.
»These figures aligned with findings that 29% of those 18-39 felt better about their financial situation than last year, while other age groups did not.
» Gourmet/Specialty coffee continues to be a significant portion (37%) of total coffee consumed – indicating that consumers want to maintain coffee
quality despite the uncertain economy.
At Home Market
» 86% of coffee consumers enjoyed their beverage at home compared to 24% who drink out of home past day, on par with 2010 findings. (Note that
these figures include those who drink coffee both at home and away.)
» Penetration is growing in the single serve arena at an average of 1% per year, and 35% of those with a pod system acquired it in the past six
months. Purchasers of the pod system are now more likely to use it to replace their current brewer. There is an increased awareness of single-cup
systems with 45% who think the systems are excellent or very good in 2011, compared to 26% in 2007.

32. CONSUMERS
Typology Every Day
AVID
K-CUP
USERS?
CLASSIC
Effect Taste
SPORADIC
APPRECI-
ATOR
CONNOI-
SSEUR
Rarely

33. HOW CAN WE DO
BUSINESS TOGETHER?

34. HOW CAN WE DO
BUSINESS TOGETHER?
GMCR‘s patent for the Keurig K-cup
brewers expires in September this
year.
From that moment on other
Branding / Advertising
manufacturers and brands will also
» K-cupWars be able to enter the market with
» Renew focus on Green Mountain Coffee Brand
substitute products.
Starbucks already announced its
Production new single-cup brewer, which is
planned to be available for the
» Video Template Cooperations
public around the holiday season.
In order for GMCR to maintain its
market position, a smart marketing
& advertising strategy is needed.

35. HOW CAN WE DO
BUSINESS TOGETHER?
While concentrating its forces on
the Keurig Business Unit, GMCR
might lose market share and brand
awareness for their specialty
coffee unit.
Branding / Advertising
» K-cupWars In order to avoid this Renegade
» Renew focus on Green Mountain Coffee Brand
can come up with a branding /
advertising strategy.
Production By
» Video Template Cooperations
...Reconstructing the Brand
Architecture
...Focusing on B2B (Away from
Home) segment
...etc

36. HOW CAN WE DO
BUSINESS TOGETHER?
Brands whose products or services
are connected to the Keurig
brewers, could use advertising
cooperations with the main
manufacturer, GMCR.
Branding / Advertising
» K-cupWars Providing a video template for
» Renew focus on Green Mountain Coffee Brand
these businesses is helpful for
every party. The main brand has
control over the communication,
Production the related products save money
and get better production quality.
» Video Template Cooperations
By providing the production
services, Renegade not just works
with GMCR, it also gets access to
new potential clients.

37. ?/!

38. SOURCES
Company websites
www.gmcr.com
www.greenmountaincoffee.com
www.keurig.com
www.starbucks.com
www.dunkindonuts.com
www.folgers.com
International Coffee Organiztaion
www.ico.org
National Coffee Association
www.ncausa.com
United States Department of Agriculture
www.usda.gov
www.coffee-tea-etc.com
http://biblioteket.ehl.lu.se/olle/papers/0003180.pdf
http://www.teacoffeecocoa.org/tcc/Commodities/Coffee/Value-Chain
nexis.com
mintel.com
Academic Studies
Abel, Natalie: Determinants of Customer Loyalty in the Specialty Coffee Indusrty (2009)
Casey, Gail et.al.: GMCR, an Integrated Company Analysis (2010)