Prepared for: AmberBenne)SeniorBuyerCrate&Barrel

March3,2016

Prepared by: EmilyBanschbach

SalesRepresentaAveKeurig

March3,2016

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March3,2016AmberBenne)SeniorBuyerCrate&BarrelUniversityVillageSea)le,WADearMs.Benne),First,IwouldliketoextendmythankstoyoufortakingAmeoutofyourbusyscheduletomeetwithmetoday.IthasalwaysbeenagoalofKeurig’stoworkwithsuchanaccomplishedandprominentcompanylikeCrate&Barrel.WearelookingforwardtothefuturepartnershipthatKeurigandCrate&Barrelwillhavefromhereonout.IhavebeenchaRngwithyourassistant,Lauren,overthelastcoupleweeksandshehasdiscussedsomeareasofconcernthatyouhadwithourproduct.ThoseincludeHighReturnonInvestment,BrandLoyalty,andEaseofUse.PleasesendmythankstoLaurenaswell,asshewasagreathelpindirecAngmeinassessingthecurrentsituaAonatCrate&Barrel.DuringthismeeAngIwouldliketoaddressanyconcernsyoumayhave,aswellassomesoluAonsIhavelaidoutaswell.Ourhighquality,innovaAveproductshavetransformedthewaythatpeoplemakecoffeeeverydayaroundtheworld.Weareconfidentthatthispartnershipwillbenefitbothofourbrandstobe)erserveourcustomers.PleaseacceptmyproposaltoimplementandprovidetheKeurig2.0K200intoyourUniversityVillagelocaAon.Best,EmilyBanschbachSalesRepresentaAveKeurig

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CustomerNeeds..........................................4AreasofConcern.........................................5ObjecAves....................................................6RecommendaAons…..................................7ImplementaAon Schedule...........................8Addenda......................................................9

ROI CalculaAons................................................10Customer TesAmonials……................................11ProductInfo.......................................................12How toUse…...........….......................................13SuggestedOrder….............................................14Order Agreement…...........................................15

TableofContents

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CustomerNeeds

HighReturnonInvestmentOnthephoneyoumenAonedthatfinancialstabilityissomethingthatisextremelyimportantforCrate&Barrel.WithallofthedifferenttypesofproductsbeingsoldatyourstoreyouwantaproductthatwillstandoutfromtheothersandturnintoagreatinvestmentfornotonlyCrate&Barrelbutyourcustomersaswell.

BrandLoyalty

Fromwhatyouhavetoldme,thecustomersofCrate&Barrelareveryloyaltothebrandsthatarealreadybeingsoldatthestore.Naturally,theytrynottostrayawayfromthebrandsthattheyalreadytrust.YouneedtoknowhowKeurigcanensurethatcustomerswillbehappywithadifferenttypeofcoffeemakerthantheonethattheyalreadyhavewithabrandtheytrust.

EaseofUse

ItseemsthatyourcustomersatCrate&Barrelarelookingforappliancesthatareeasytouseintheirbusyeverydaylives.BeingthatahugeporAonofyourstorestargetmarketareages35-60andhavefullAmejobs.YourstoreislookingforaproductthatisefficientandcustomerfriendlytosaAsfycustomerdemand.

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A.  PricingYouareconcernedthattheretailpriceistoohighcomparedtoothercoffeemakersandthattheKeurigbrandwon’tsell.Youareworriedthatthisisn’tagoodinvestmentandyourcustomersmaynotvaluetheKeurigattheretailprice.

B.  NeedforProductYoualreadysellmanydifferentbrandsofcoffeemakersatCrate&Barrel,soyoudon’tseetheneedforanaddiAonalone.

C.  NewnessofProductYouaren’tfamiliarwiththisnewwayofbrewingcoffeeandthinkthatitistoohightechforyourcustomers.Youaren’tcompletelysurethatitwillsellbecauseitisnothinglikeanyofthecoffeemakersCrate&Barrelcurrentlysells.

AreasofConcern

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A.  PricingTheKeurigprovidesvaluethatisworththepriceoftheproduct.EachcupisbrewedperfecteveryAme,explainbyshowingproductinfoandhowKeurigpodisrecognized,opAmizingcustomizedbrewdependingontypeofcoffee.

B.  NeedforProductEventhoughCrate&Barrel’scustomersareveryloyaltothebrandstheyalreadyuse,therearealsoloyalcustomerstoKeurig.IfyouwouldliketoseesomecustomertesAmonialstheyareonpage11.OurcustomersappreciatethequalityandinnovaAonofthisproduct.

C.  NewnessofProductWehavefoundthattheKeurigisalotsimplerthanothercoffeemachinebrands.Ifyoutakealookonpage13,Icanexplaintoyoumoreabouthowtheproductworks.Ialsohaveavideoexplainingthesteps,aswellashowitcorrespondswithabusyschedule.

Objec6ves

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A.  PricingTheretailpriceoftheKeurigmeansahighrevenueforCrate&Barrel.OpAon3showsthatbypurchasing100unitsyouwillobtainyearlysalesof$4,560andmaximizeyourrevenuewithanROIof71%.ThatsaAsfiesyourneedforahighROIandeliminatesyourconcernregardingthenecessaryretailprice.

B.  NeedforProductToconvincecustomersthattheyhaveaneedfortheKeurigproduct,Irecommendwegivethemachancetotryitfirsthand.Tohelpwiththelaunchofourbrandwewillprovide1Keurig2.0K200,alongwith50boxesofassortedK-cupflavorsforcustomerstoenjoywhileshoppingatCrate&Barrel.

C.  NewnessofProductIfyouareconcernedthatyourcustomerswon’tpurchasetheKeurigbecauseofitsnewness,IrecommendaproductseminarthatIwillpersonallycomeoutandteachyouremployees.IwillteachthemthebenefitsoftheKeurigandhowtouseitsothattheycanexplainthattopotenAalcustomers.

Recommenda6ons

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Implementa6onSchedule

•  IniAalconversaAonwithassistant1/25/16

•  Firstphonecalltodiscussareasofconcern2/8/16

• MeetwithMs.Benne)forsalespresentaAon/partnershipbetweenKeurigandCrate&Barrel

3/3/16

•  DelivershipmentofKeurigstoCrate&Barrel

•  Seminartoteachemployeeshowtouseproduct

3/11/16

•  FollowupwithMs.Benne)anddeterminehowwellKeurigsareselling4/11/16

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Addenda

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ROICalculaAons.........................................10Customer TesAmonials…...........................11ProductInfo...............................................12HowtoUse…...........…................................13SuggestedOrder….....................................14OrderAgreement…....................................15

NumberofCases(peryear)

ROICalcula6ons

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CustomerTes6monials

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ProductInfoKeurig2.0K200

Availablein7differentcolorsFeaturesa40oz.waterreservoir

9brewsizes(4oz.–30oz.)2”blackandwhitetouchdisplay

StrengthcontrolseRngforbrewingboldercoffeeCanbrewallyourfavoritebrandsincludingStarbucks

Comeswithtwowaterfilters,onebo)leofKeurigcleaningsoluAon,andasetof2reusableK-cupfilters

AbilitytofillanenArecarafeofcoffee

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1.  Fillthereservoir2.  Chooseyourcoffee3.  InsertK-Cup4.  Placemugbelow5.  Choosemugsizeandstrength6.  Waitoneminute7.  Perfectcoffeeisbrewed

ProductSteps:ToUse

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SuggestedOrder

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OrderAgreement

I,__________________,agreetopurchasetheabovequanAtyofKeurig2.0K200andanyothercompaAbledevicethatwasagreeduponduringoutmeeAngatthetotalpricelisted.IagreetohavethesepaymentsinbeforetheiniAalstockingdateofMarch11,2016__________________________________________Crate&BarrelBuyerRepresentaAve Date___________________________________________KeurigSellingRepresentaAve Date