Case Study

Senseo: Establishing a new standard in the home coffee market

24 pages
March 2005
Reference: IMD-5-0674

Sara Lee D.E. and Philips joined forces to launch Senseo, a revolutionary single-serve coffee-brewing system in Europe and had tremendous success. Now they needed to decide how best to balance returns between the margins on the appliance and coffee sides of the business as well as decide on their pricing strategy as they entered the US. Should they keep the same strategy as in Europe and give away the machine to make money on pods? In terms of distribution, should they stay with brick and mortar or go online as well? Given the clout of P&G, should they promote the system, the coffee or both?

Keywords
Coffee, Home Appliances, Joint Venture, Partnership, Alliance, Consumer Goods, Pricing
Settings
Europe, United States of America
February 2004
Type
Field Research
Copyright
© 2005
Available Languages
English
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