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Coffee for two

Property & Construction

Opportunities

Time for other (appliance) manufacturers to get creative? Join forces with complementary brands? Eye the office market? Forget coffee makers and focus on other domestic appliances? How about a Hoover/P&G vacuum cleaner with built-in air freshener pads?

A highly successful alternative to traditional coffee makers

Huge corporations sometimes manage to be nimble enough to spot shifting demographics and behaviour before trend watchers run with them. Case in point: electronics giant Philips and global consumer goods manufacturer Sara Lee figured out that in most busy families the big, 12-cup, coffee-all-day machine was becoming obsolete. Not to mention the millions and millions who are living the single life and don’t even know what to do with traditional coffee makers anymore. Throw in a meteoric rise in upscale coffee’s popularity, and you have the perfect market for Philips and Sara Lee’s ‘Senseo’; a coffee machine that serves up just one or two tasty, fresh cups of creamy coffee, using sophisticated Senseo coffee ‘pads’ that come in various flavours. The machine is priced at 69 euros (roughly 69 USD), with coffee pads costing roughly 10-15 euro cents per piece. Consumers are slurping it up in a big way: Senseo sold 800,000 machines in Holland since its introduction in 2001, brewing more than 10 million cups a day, thereby capturing 10% of the entire coffee market. After a runaway success in the Benelux, Philips is now rolling out the Senseo coffee concept in France and Germany, and is in a hurry to prevent copy-cats from joining the party. (Which makes sense: when Philips and Sara Lee failed to get the coffee pads patented in Holland, a whole new business sprang up with retailers and other coffee producers now introducing their own pads for the Senseo.)

Opportunities

Time for other (appliance) manufacturers to get creative? Join forces with complementary brands? Eye the office market? Forget coffee makers and focus on other domestic appliances? How about a Hoover/P&G vacuum cleaner with built-in air freshener pads?

Website: www.senseo.com/

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