Green Mountain Finished Report Essay

Submitted By cassie_724
Words: 9917
Pages: 40

TABLE OF CONTENTS Part One History ….......................................................................... 1 Part Two Value Discussion …........................................................... 5 Competitive Advantage …................................................ 6 Part Three Mission Statement …....................................................... 8 SWOT Analysis …............................................................. 9 Portfolio Analysis …......................................................... 12 Growth Strategies …........................................................ 14 Part Four Evoked Set …................................................................... 16 Global Marketing …......................................................... 18 Part Five Segmentation, Targeting, Positioning............................. 19 Value Proposition............................................................ 22 Perceptual Map............................................................... 23 Part Six Product …………….……………………………………………………….. 25 Product Life Cycle ….……………………………………….………….. 27 Part Seven Services……………………………………………………………………… 29 Pricing……………………………………………………………………….. 30 Integrated Marketing Communications……………………… 31 Works Cited…………………………………………………………………………… 33

History The story of Green Mountain Coffee Roasters Incorporated begins with the story of Robert Stiller. Robert Stiller was an entrepreneur, who, in 1971 launched a rolling papers company branded E-Z Wider. The premise of E-Z Wider was a simple one: provide longer, wider papers so customers could roll larger joints. As the cultural rebellion of the 1970’s began to wind down, Stiller and his partner, Burton Rubin, sold E-Z Wider to Rizla, who operated in the tobacco industry. The sale of E-Z Wider was valued at $6.2 million. Green Mountain was already in existence when it crossed paths with Robert Stiller, operating as a specialty coffee shop. While visiting a Vermont ski resort in 1981, Stiller had his first cup of Green Mountain coffee. Stiller enjoyed the cup so much, that he ended up buying the business for $200,000. The tea and coffee industry had been experiencing steady, yet tepid growth since the 1960’s, and as Stiller found out, competition was fairly stiff. This was due, in large part, to Stiller’s commitment to the Arabica bean over the cheaper, inferior, Robusta bean. This unwavering commitment to quality meant high overheads and low margins. The cost of the Arabica bean was seen as prohibitively expensive for entry into some markets. As a result, profits, and even the occasional loss, are mere fractions of the overall sales revenue generated by the company. Despite high over-head, and low margins, the company found the black in 1985 when it established four reoccurring strategies:
Benefiting from Strategic Mutual Partnerships As circumstance would have it, the first strategic alliance Green Mountain formed was with a charity, a theme that is littered throughout the company’s history. Green Mountain developed a relationship with the Kiwanis Club, and began sending out free samples through this channel. The exposure created by this alliance resulted in 1985’s break through into profitability. However, the alliances didn’t end there. The next alliance was probably the most influential in determining the company’s niche in the marketplace. Stiller decided that it could compete in the convenience coffee market. Instead of relying on wholesale distribution, Green Mountain branched out and began appearing in convenience stores. Soon, customers could enjoy the high quality coffee from Green Mountain, while on the go, by visiting any one of more than 1000 Mobil Corporation stores across the country. The company soon parlayed its entry into the convenience market by brokering deals to sell the same blends…