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Nespresso Case Study

MKTG213 MingXuan Li

Al ALan

on 17 October 2012

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Transcript of Nespresso Case Study

Nespresso Background Nespresso TimeLine 1What reason makes Nespresso win in the market?
2 What do u think their channel distribution is? Question Nespresso is a subsidiary brand of Nestle since 1986 and create its first product which brewing new bussiness based on the idea of self-make espresso coffee .
Not in a years that Nespresso Machine and Nespresso exclusive pods(capsule) successfully monopoly their target market by passing consumer high quality pods and exclusive experience through its system. 1986 2010 1999 2002 March (cc) image by jantik on Flickr 1989 1996 1998 2000 2003 2006 2009 1.The range of target market is too narrow
2. New Entrant threat of cofee pod market
3. How to Promote a New Product though channels Case Problem!! 5C Situation Analysis Competitors Collabrators Sara Lee & Ethical coffee Strength
High quality
Low Prices
Wholesale and retail channel
Duplicate other company's product
Market Follower Competitors Other Brands/ Coffee Shop Company Goal:
To become the icon of the perfect coffee worldwide and establish nespresso as the super-premium brand

Brand Image:
Elegant and exclusive

Technology and experience:
capsule recycling and carbon reduction.

persuade highest quality and continuous innovation

Product line:
coffee pods and coffee machine Farmers:as a supplier to provide material
Partnership manufacturers(coffee Machine)
Krups, DeLonghi, Alessi, Jura, Miele, Siemens & Gaggia etc

Prestigious department stores(increase brand awareness)
Globus, Harrods, Les Galleries Lafayette, Kaufhof
B2B Partner:(to run new programs and maximize the profit)
Swissôtel, Radisson, Relais &Châteaux
Lufthansa, Swiss International Air Lines, British Airways Cathay Pacific,Malaysian Airlines, Etihad Airwaysand Qatar Airways

NGOs: (to promote fair trade)
Rainforest Alliance

Manhattan Associates
make Nespresso have more effective logistic operation system
Customers B2B :


Home Use Consumer(Coffee Lover)
High class Consumer Nespresso Climate Economic Environment

Coffee Industry stable

Social and Culture Environment
The high quality life style
Exclusive coffee experience

Technological Environment
Running R&D
Media support-(mobile/WMS)

Political Environment
Fair Trade Solution --Competitors? 1. Lawsuit

2. Renew the product
--Renew both machine and pods(change size or shape)
-- Various the products
--make sustainable product

3. Apply for new patent

4. Social responsibility
--corporate with NGOs
--Fair trade with farmers

5. Enhance B2B channel. Solution--Promote New Product throught Channel? 1. Online
--Build up Social network to express new product
--Hold a campaign online about various coffee experience
--EDM promotion
2. Call centre
--Open a new hot line for the new product
--Introduce new product to Member
3. Botiques
--New product display
--Experience Promotion Solution---Expand the market range 1. Expand the target segments

2. New product

3. New proposition
--Low Price
--High Quality
--Home based

4. Extend new channels
--vending machine
--others Recommendation A.To the Channel :
--Backward Integration
--Build Convergent Network

B.To the Brand
--New Campaign related to social responsibility

C. To the product
-- Maintain product orginal proposition
--Online 2 Offline

D. To the promotion
--Efforts on Emarketing
--Efforts on Mobile marketing and social network

E. Emotional Marketing
Build Special coffee culture. Findings A.Why don't Nepresso build wholesale and retail channel
1.Blue Ocean Strategy
2.Avoid Home brand competition
3.Product Propositon

B. Nespresso profit secret--Pods
Business Model Thank You !!
Any Question?? Marketing Channel 213
Wednesday 6pm-7pm
Case : Nespresso

Team MingXuan Li 42073928
HuanYi Liu 41548485
Xue Wang 41935594
Full transcript