Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
Version: 12.01.2005
Length: 24 pages
Data source: Field research
Topics:
Coffee; Beverages; Home appliances; Marketing; Joint venture; Partnership; Alliance; Philips; Sara Lee; Consumer goods; Pricing
Abstract
Sara Lee Douwe Egberts (SLDE) 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 on-line as well? Given the clout of P&G, should they promote the system, the coffee or both?
Location:
Industry:
Size:
Sara Lee Douwe Egberts (EUR4.7 billion), Philips (EUR29 billion)
Other setting(s):
February 2004
About
Abstract
Sara Lee Douwe Egberts (SLDE) 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 on-line as well? Given the clout of P&G, should they promote the system, the coffee or both?
Settings
Location:
Industry:
Size:
Sara Lee Douwe Egberts (EUR4.7 billion), Philips (EUR29 billion)
Other setting(s):
February 2004