...EXECUTIVE INTERVIEW Changing the Strategy at Nespresso: An Interview with Former CEO Jean-Paul Gaillard CONSTANTINOS MARKIDES, London Business School DANIEL OYON, University of Lausanne Background to the Interview Nespresso represents one of the most innovative ´ new products developed by the Swiss giant, Nestle. The product is basically a system that allows the consumer to produce a fresh cup of espresso coffee at home. Though simple in appearance and use, it took Nestle more than 10 years to develop it. ´ The system consists of two parts: a coffee capsule and a machine. The coffee capsule is hermetically sealed in aluminum and contains 5 g of roast and ground coffee. The machine consists of four parts — a handle, a water container, a pump and an electrical heating system. These four parts are cast into a body and form the machine. The use of the Nespresso system is straightforward. The coffee capsule is placed in the handle which is then inserted into the machine. The act of inserting the handle into the machine pierces the coffee capsule at the top. At the press of a button, pressurized, steamed water is passed through the capsule. The result is a creamy, foamy and high-quality cup of espresso coffee. The new product was introduced in 1986. The orig´ inal strategy adopted by Nestle was to set up a joint venture with a Swiss-based distributor called Sobal to sell the new product. This joint venture (named Sobal-Nespresso) was supposed to purchase the 296 machines from...
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...Introduction : Launched 30 years ago, Nespresso is a subsidiary of Nestlé and one of the world’s leader on the coffee market. The brand became famous through its coffee makers working with pods, it is also Nespresso who opened the coffee pod segment as it was the first company to launch coffee makers working with pods. Nespresso wanted to innovate by creating the “Nespresso experience”. In this case, we will analyze the company and its strategies through the SWOT. SWOT analysis Internal diagnosis STRENGTHS A high visibility internationally: Nespresso, is part of Nestlé, which is one of the worldwide leader concerning consumer goods products: the turnover represents 58 billion euros, the company employs 250 000 people in 85 countries. So, Nespresso takes benefit from the visibility and the financial power of Nestlé. It enables Nespresso to have a better access to R&D and communication skills. Being part of the Nestlé Group helped Nespresso to become the European leader in the production of espresso machines. A high focus on the clients: One of the key factor of the success of Nespresso, it is that their strategy is based on their relationship with their clients. They listen carefully to the consumer needs and demands in order to promote fidelity within their clients. Excellence and high quality products are part of their strategy. Hence, the products have some particularity in order to enhance the unique aspect of Nespresso: - Very high quality products and a large range or...
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...Nestlé and Nespresso Based on the case study of Nestlé refines its arsenal in the luxury coffee war of the coffee war, this case talked about a subset of the coffee war that currently brewing in Western Europe between Nestlé, Sara Lee and Ethical Coffee. Nestlé is the incumbent in the market with a monopoly over its home coffee system with 1,700 patents. It has become one of the company's so-called "billionaire brands" with sales last year of $2.6bn. The Nespresso SA company was founded in Vevey, Switzerland in 1986 under the ownership of the Nestlé Group. Nespresso partnered with a Swiss manufacturer, Turmix, to produce and launch the first Nespresso coffee system in the office coffee market in Switzerland and Italy. Nestlé produced the first coffee capsules at its Swiss factory in Orbe. Nestlé traces the roots of Nespresso back to the belief that consumers wanted to have cafe‐style espresso experiences in the home and work place. Nespresso believed that the perfect combination of the highest quality coffee, water and air pressure was necessary to deliver a superior espresso. With this thinking the Nespresso system was born. Since 1986 Nespresso has expanded beyond its initial partnership with Turmix for production of its Nespresso machines. Today, Nespresso counts as partners such precision manufacturers as DeLonghi, Jura, Koenig, Krups, Miele and Siemens, all of whom provide a global distribution network of precision Nespresso machines. These machines, starting at €149...
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...------------------------------------------------- March 01, 2012 How a brand could go ahead: Nespresso Nespresso, Swiss brand, was a separate company created in 1986 as a 100% owned Nestlé affiliate aiming to further develop, produce and market the Nespresso system. The product consisted of high quality coffee packed in aluminum capsules for exclusive use in specially designed machines. There were eight available coffee varieties. With this product, Nespresso was developed as a totally innovate system. However, the company had to face some troubling signs of market. Nespresso was on sales fields for both the machines and the capsules, but at the end of 1987 just half of the manufactured machines were sold, and without the machines further coffee capsules would not sell. Consequently to this, the machines had defects that were consuming much of the maintenance and service budgets that were covering in total by Nestlé. We can see at this point, that one of the causes of the losses of the company was the slow sales in non-traditional espresso markets like japan. Given this situation, we can identify two problems faced by the company: the first one was a problem of distance with the customer, and the second one, it seems as if the company had forgotten its primary purpose: the sale of coffee, not machines. For the first issue, Nespresso had to have thought about the customer (what he wanted) within its distribution strategy. In addition, Nespresso needs to think on a way that the customer could buy the desired...
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...Nespresso coffee shop Salalah Name: __________________________ ID: ______________________________ Table of Contents Executive summary 2 Company Summary 3 Product/ Services Summary 5 Strategies – Marketing & Sales 7 Management Summary 8 Organizational Chart 9 Financial Statements 10 Balance sheet 12 Feasibility Business Idea and its suitability to Oman 12 Conclusion 13 Executive summary Nespresso coffee shop is a coffee shop that is located in Salalah exactly in the Alsaada north . That is a complete list of moderately priced "comfort" food influenced by Arab cooking traditions but on the basis of time-honored recipes from around the world. Section of the cafe and Nespresso coffee shop features a cafe with candy bar, and magazines, and space for live performers. This shop is basically the franchise that was introduced by the Nespresso the international brand of Coffee. This Coffee shop was not till now available in Salalah Oman. So, the opening of Salalah branch will provide a unique taste of coffee of an international brand. This business plan offers financial institutions an opportunity to review our vision and strategic focus. It also provides a step-by-step plan for the business start-up, establishing favorable sales numbers, gross margin, and profitability. This plan includes chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan. Company Summary The "Nespresso...
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...Nespresso Table of contents I) Introduction a. Company b. Product II) STEP Analysis a. Socio-cultural b. Technological c. Economic/competitive d. Political III) Segmentation Strategies a. Geodemographic segmentation b. Psychographic segmentation c. Behaviour segmentation d. Segmentation analysis IV) Recommendations V) Sources I) Introduction Nespresso belongs to the Nestle Group but Nespresso is also its own company and product at the same time. So I will introduce Nestle briefly and will focus the report on Nespresso as an individual company/product. a. Company Nestle was built in 1866 by Henri Nestle, a pharmacist who developed baby food for babies who did not get their mother’s milk. Nestle doubled its size during World War I. In the 1920s, Nestle expanded its range of products like chocolate that became its second activity after milk. Nestle profits dropped down during due to effects of World War II. In 1947, Nestle had a dynamic phase with acquired companies like Findus and L’Oreal. In the 1990s, Nestle continued acquiring companies like San Pellegrino and others. Today, Nestle is one of the most important groups for food sales. (Nestle UK) b. Product Nespresso SA is part of the Nestle Group, it was founded in 1986. The Nespresso system is an espresso machine using pre-measured capsules. It was introduced in Japan (1987), France & USA (1991), Benelux &...
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...TASK 3: 1. INTRODUCTION Nespresso is an operating unit of the Nestlé group based in Switzerland. Since the 90’s Nespresso sell machines, which have a market success. Packaged portions of espresso coffee are one of the fastest growing segments of the coffee market. It has between 20 and 40% of the value of ground coffee sales in the European coffee market, which totals USD 17 billion. Nespresso sales have been growing at an average of 30% per year over the past 10 years and more than 20 billion capsules have been sold since 2000 at a current selling price equivalent to about USD 0.43 to USD 0.62 per capsule. Furthermore, Nespresso reported annual sales of USD 3,22 billion in 2011, growing by 20% during the fiscal year. The aim of Nespresso is to become the icon of the perfect coffee worldwide and to be established at the super premium brand. 2. 5 FORCES, MODEL OF PORTER a. Rivalry among competiting sellers Competitive intensity of the market is strong because of the many multinational that manage the market and who have a couple of coffee brands each one. Furthermore, Nespresso did have a patent for his capsules. But now, different companies have the right to manufacture capsules. Nespresso has not the monopoly on the portion capsules market now, and the rivalry is constantly increasing between the giants of the coffee market. b. Buyers Buyers have no bargaining power with brands that manufacture and/or distribute this portioned coffee. These are brands...
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...Corporate baCkgrounder © Nestlé Nespresso SA, Corporate Communications, March 2013 Coffee is at the heart of all we do. yet consumer pleasure is why we do it. at a gLanCe Coffee is at the heart of all we do. Yet consumer pleasure is why we do it. The Nespresso story began with a simple but revolutionary idea: enable anyone to create the perfect cup of coffee – just like a skilled barista. From its beginning in 1986, the Nespresso brand concept has redefined and revolutionised the way millions of people enjoy their coffee today, and it has shaped the global coffee culture. Nespresso is not just a coffee. It is a genuine experience that combines perfection and pleasure, simplicity and aesthetics. Nespresso has evolved from being the pioneer and trendsetter into the reference in the portioned coffee category through a singular focus on delivering the ultimate coffee experience to our consumers cup after cup. This is the cornerstone upon which the company was founded, and it is the foundation that has fostered the incredible growth we have enjoyed over the last 27 years. Our success is built on creating the highest quality Grand Cru coffees, long-lasting consumer relationships and sustainable business success. These will continue to be the Key Growth Drivers of our business moving forward, as we compete in the dynamic and growing portioned coffee category. Nestlé Nespresso is a company without boundaries, with both a direct business-to-consumer and business-to-business approach...
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... The Nespresso story began over 27 years ago with a simple but revolutionary idea: enable anyone to create the perfect cup of espresso coffee just like skilled baristas, but in your little environment. The Nespresso concept has redefined and revolutionised the way millions of people enjoy their espresso coffee today. It has shaped the global coffee culture. Thanks to continuous innovations and highest quality, Nespresso has evolved from being the pioneer and trendsetter for portioned coffee into a worldwide reference. Let’s go back to the start of this amazing journey! In 1986, Nestlé Group founded the company Nespresso SA. It was inspired by Luiggi Bezzera’s original espresso coffee concept. It developed a revolutionary system of portioned, encapsulated coffee and dedicated machines that interact to deliver what was expected to be a perfect coffee. But only four initial coffee varieties included Capriccio, Cosi, Decaffeinato and Bolero (now known as Volluto) were offered. And the first two machines offered (the C100 and C1100) are designed to resemble mini espresso machines that people were used to seeing and enjoying at cafés and restaurants. In 1989, Nespresso first tested the Nespresso system in the Swiss household market with Turmix as machine partner. . In 1991, Nespresso SA takes a huge turning point deciding to produce their own machines exclusively with Eugster, which becomes their exclusive producer. Within the same year, Nespresso enters the markets...
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...NESPRESSO AND ITS STORES - SYNOPSIS RETAIL MARKETING HA – E125 Autumn 2012 Cpr n° 051092-3138 Cpr n° 270790-4162 Copenhagen Business School PURPOSE STATEMENT This synopsis will present some problems related to the brand Nespresso and more specifically concerning its store management. We will focus on issues associated on store layout, design and visual merchandising. Nowadays, Nespresso highlights its boutiques while they were not integrated in the initial business model of Nespresso. Indeed, they have only been created in 2002 in order to address customers’ needs. The brand decided to develop its boutique due to the growing demand of its customers for a face-to-face contact, which means a lack of direct relationship with them. However, this touchpoint is indispensable in the strategy of the brand nowadays. In France for example, the rate of opening of shops is about two or three a year. First we will present briefly the brand Nespresso and its products. Thus we will approach its positioning and channels of distribution in order to introduce the store concept and design of Nespresso. Finally we will deal with theories related to our problem statement: the store design and atmosphere in Nespresso boutiques and the SOR model. CASE PRESENTATION Nespresso is the leader on the premium portioned coffee market. The brand was created in 1986 by Nestlé Group which is located in Switzerland and has a turnover of almost two billion euros. Nespresso changed the idea of coffee as...
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...Intro : Nespresso, un des leaders mondiaux du marché du café est le leader sur le marché du café en dosette ( Nepresso et Senseo se partageant le marché ). Nespresso, a une position de monopole sur le marché des capsules en aluminium grâce à ces 70 brevets déposés pour se protéger d’une éventuelle concurrence. Mais Nespresso a surtout une image de marque très forte. Ces deux points en font un marché verrouillé. Cependant, Jean Paul Gaillard fondateur d’Ethical Coffee Company à découvert une faille dans les brevets ainsi la concurrence pénètre le marché avant même la perte du monopole en 2012 de Nespresso. Nous, chargé d’études pour Un groupe Industriel allons analyser le marché des capsules de café, afin de savoir s’il est intéressant pour l’entreprise de pénétrer ce marché ? Si, oui comment ? Avec quels atouts ? Les nouveaux entrants : Aujourd’hui, Casino, L’OR, Ne-cap, Coffeeduck ont pénétrer le marché des capsules utilisable sur la machine Nespresso. En 2012, les brevets vont tombés dans le domaine du public, ce qui constituera une barrière à l’entrée en moins non négligeable. Cependant, il ne sera pas si simple de pénétrer le marché car il reste de nombreuses barrières à l’entrée. * Tout d’abord Se fournir en café est compliqué et couteux: Il existe une réelle bataille des prix pour bénéficier du meilleure café (Costa Rica). Pour fidéliser cultivateurs, il faut leur offrir un prix fixe et signer des contrats sur des longues durée de un à dix ans. Il est donc...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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