Keurig is the North American leader in single-cup coffee brewing. Introduced in 1998, the Keurig system uses self-contained coffee K-Cups, which allow users to brew one cup of coffee or other hot beverage in about one minute. After the K-Cup is pierced with a nozzle, hot water is forced through its contents and filter and into a mug below. Because the K-Cup is self-contained, disposal is easy and cleanup is almost totally eliminated. Keurig was purchased by Green Mountain Coffee Roasters in 2006 and today offers more than 200 different beverages, including specialty beverages from Dunkin’ Donuts, Wolfgang Puck, and Caribou Coffee.

Keurig’s K-Cups are sold in many supermarkets, selected big-box stores, some specialty stores, and department stores. Macy’s, for example, has a small selection of popular flavors displayed next to its coffee-maker aisle.

K-Cups also can be found online at specialty coffee websites as well as both the Keurig and Green Mountain Coffee Roasters e-commerce stores.

Describe the different channels used to distribute Keurig’s K-Cups in terms of customer characteristics, competition, and characteristics of the intermediaries.

How would you define the intensity of market coverage?

Does it make sense? Are there any strategic issues in managing these marketing channels?