...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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... 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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...------------------------------------------------- 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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...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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...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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...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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...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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...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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...Practice: The Nespresso Example In early 1988, Mr. Jean-Paul Gaillard had just taken over the Nespresso subsidiary which, despite selling one of Nestle’s most innovative new products, was facing serious financial problems. He therefore had to decide how to rejuvenate the subsidiary’s financial fortunes by developing a new strategy. The Nespresso product was a system, which allowed the consumer to produce a fresh cup of espresso coffee at home. Though simple in appearance and use, it took Nestle more than ten years to develop it. The system consisted of two parts: a coffee capsule and a machine. The coffee capsule was hermetically sealed in aluminum and contained 5g of roast and ground coffee. The machine consisted of four parts-a handle, a water container, a pump and an electrical heating system. These four parts were cast into a body and formed the machine. The use of the Nespresso system was straightforward. The coffee capsule was placed in the handle which was then inserted into the machine. The act of inserting the handle into the machine pierced the coffee capsule at the top. At the press of a button, pressurized, streamed water was passed through the capsule. The result was a creamy, foamy and high-quality cup of espresso coffee, The new product was introduced in 1986. The original 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...
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...Nespresso: Porter’s five forces of the portion-coffee market Introduction Portion-coffee is defined as single cup coffee systems, offering individual portions of freshly ground coffee. Portion-coffee systems come in several coffee machines systems like, filter, automatic, pads or capsules . In this segment, Nespresso offers hermetically sealed and colored capsules containing a wide range of tastes. The portion-coffee market could be of great interest for investors, as this market grew by 44% between 2006 and 2007 (see Appendix XX) and has been growing constantly since then. In 2009, Nespresso held 20% of the espresso & filter portioned coffee machines market, and its sales grew 30% annually over the past 8 years . The portion coffee market is one of the fastest-growing segments of the coffee market. Pods represented, 20 to 40% of the value of ground coffee sales in the $17 billion European coffee market in 2010. Moreover, the portion-coffee market is expected to triple to $15 billion by 2012 . The following sections will analyze the competitive environment of portion-coffee through the five-force analysis. Conclusions are made on the global investment interest of the portion coffee market. Threat of substitutes Substitutes of portion-coffee are the following: filter coffee, instant coffee and traditional espresso. Additionally, substitutes of coffee, in general, are also other hot drinks such as tea or non-caffeine products that imitate coffee such as roasted...
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...May 3, 2012 12:55 pm Nestlé to open third Nespresso factory By Haig Simonian in Zurich Nespresso, the fast-growing premium coffee brand owned by Switzerland’s Nestlé, on Thursday brushed off fears of rising competition for high-margin capsules with plans for a third factory to boost output to meet surging global demand. Nespresso, whose sales grew by about 20 per cent to SFr3.5bn last year, said it would invest SFr300m on a new plant in Romont in the Swiss canton of Freiburg. The factory will be similar to the second Nespresso plant at Avenches, built and then swiftly extended to relieve pressure on Nespresso’s original production site. “Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally.” said Patrice Bula, Nespresso chairman. The new plant, to cost SFr300m and create more than 400 jobs, is expected to start production in the first half of 2015. Nestlé does not reveal financial data for Nespresso, other than a rounded annual sales figure. Analysts believe the business, which effectively created a new market segment around the world, is extremely profitable, with margins of more than 25 per cent. Nespresso’s success, boosted by clever advertising featuring US actor George Clooney, has however prompted growing competition, most recently form Starbucks. The US coffee group last November launched a single cup coffee system, initially...
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...Diepvries producten, Diervoeding, Gebotteld water ,Koffie,… De Nestlé-producten respecteren de lokale cultuur en consumptiegewoonten. De merken van de groep maken deel uit van het dagelijks leven van honderden miljoenen consumenten. Haar streefdoel: de consumenten elke dag Voeding, Gezondheid & Welzijn verschaffen. De bedrijfsstrategie wordt gestuurd door een groot aantal fundamentele principes zoals: het besteden van aandacht aan consumentenbehoeften, investeren in onderzoek, vernieuwen en hernieuwen van het productgamma met behoud van evenwicht in de productlijnen. Nespresso is een van de vele dochterbedrijven van Nestlé, behorend tot de Nestlé Group. Nespresso voorziet de consument van koffie en koffiemachines. Het verhaal begint bij het oprichten van het hoofdkantoor in 1968 in Zwitserland, Lausanne, waar zich nu ook de twee belangrijkste fabrieken bevinden. Het Nestlé Nespresso bedrijf is een autonoom globaal gemanaged bedrijf dat behoort tot de Nestlé Group. Het is actief in bijna 60 landen met meer dan 83000 werknemers. Het bedrijf is actief in de koffiesector. Naast het produceren van de...
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............................................................ 3 Business Description................................................................................ 4 Enter the World of Nespresso........................................................................... 4 Nespresso Products/ Services offering.............................................................. 4 Key strategies of Nespresso…………………..................................................... 5 Business model Framework………………........................................................ 6 Organization’s Channel Environment........................................................ 7 Government..................................................................................................... 7 Competition... …………………......................................................................... 7 Market...............................................................................................................9 Technologies....................................................................................................10 Profile of Organization’s Channel...............................................................12 Market segmentation........................................................................................12 Nespresso Channel structure........................................................................... 15 Channel Function and Flows Analysis.......................................................
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...Nestle - Nespresso Marketing Strategic About Nestle Nestle is a Swiss multinational food and beverage company headquartered in Vevey, Swiss. Nestle’s products include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. 29 of Nestle’s brands have annual sales of over 1 billion Swiss francs including Nespresso, Nescafe, Kit Kat, Smarties, Nesquik, Stouffer’s, Vittel and Maggi. Nestle has 447 factories operates in 194 countries and employs around 333,000 people. Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactee Henri Nestle, founded in 1866 by Henri Nestle. Nestle Coffee Industry In 1985, Nestle’s coffee division was in a comfortable position regarding the overall coffee market. Long time leaders, Nestle was present and leading the mass coffee market since 1938 when it first launched it soluble coffee brand, Nescafe. Other players, such as Phillip Morris and Sara Lee, were also big multinational brands that somehow threatened Nestle leadership but that through the last two decades have not been able to achieve a threatening and sustainable growth. Early in 1980s, coffee market was losing some of its attractiveness due to the stagnation of coffee consumption. Soft drinks and fruit juices were gaining market space to coffee products and growth was being achieved through price increases...
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