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Business Model Canvas

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on 9 December 2014

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Transcript of Business Model Canvas

Business Model Canvas
Nespresso


Presentation of Nespresso S.A
3. Channels
Customer Relationships
Revenue Model
1. Value Proposition
2. Customer segments
Partners
Resources, Activities and Costs
Few facts...
Branch of Nestlé
1.3 billions of capsules every year
In 1986, creation of Nespresso SA
Around 70 pattents (capsules, coffee machine,...)
First part:
Nescafé was the famous brand for the grounds coffee (Mass market)
The first business model of Nespresso was made for the restaurants and offices
Second part:
In 1988, a new business model for Nespresso is born
Give up the entreprises market and concentrate on the high-income home

Product
- New way to consume coffee and to store it (pods)
- Wide range of savors and strength available
- Re-invented coffee machine design
- Unique copyright = exclusivity
Painkillers
Daily challenges:
- waste of time and effort
- average quality coffee
- low diversity


Gains
- saving time & effort
- high quality coffee enjoyment
- individual strengths and flavours
- increasing the society status
- nice design of coffee machines

Product Market Fit
Easier way to make the best coffee
Needs / Frequency of Occurence
Needs : make good coffee and quickly

Frequency : every time you want to drink a coffee - daily - depending on the consumer
Gains / Pains
Pains:
- daily challenges : waste of time and effort
- average quality coffee
- low diversity

Gains:
- saving time and effort
- social status
- high quality coffee enjoyment
- design
- individual strengths and flavours
Product and channels
Physical
One whole product

Indirect -> large retailers only for machine
Direct - > Nespresso store, online shop, application, call center, mail order selling
Better solutions for the company
More exclusive
Higher standards
Better control of the sales
Get, keep and grow
Get
Huge marketing campain
Innovation -> product
Nespresso Club
Keep
Luxury words
Community
Magazine
Good vocabulary
Selling strategy
Nespresso boutique
Social media
Grow
New coffee, new machine
Evolve TV ads
Pricing
Fixed pricing
- Valued Pricing based on customer segments
- We were the first ones on the market, with advanced knowledge
- Decision to maintain a high-image for top customers
Competitors
Customers view
- customers pay for quality coffee and values (high standard, social status, belonging to the Nespresso club)

- capacity of the targeted customer segment to afford the products

- simple package
- additional products available
Key Partners
- Producers of coffee machines (Braun)
- Recycling of the capsules (Thévenaz-Leduc)
- Design, Development and implentation of the unique AAA Sustainable Quality Program (The Rainforest Alliance)
Key Suppliers
Coffee producers (Efico, Expocafé)
Good benefits with the suppliers
Strong confidence between suppliers and buyers
High price -> maintain a good production
Aluminum recycling
Resources
Activities
Costs
Based on Jim Harvey's speech structures
Idea 2
Pro
Con
Idea 2
Pro
Con
Finally...
In 2004, Nestlé launched a new business model and start a new brand: Nescafé Dolce Gusto
Customer Archetype
Customer in Context
- Male / Female
- From 30 y.o. to 50 y.o.
- Urban, stylish, classy
- High incomes
- High hierarchy at work
- High society status
Distribution
Physical
Unique way of selling the product
Stores on famous areas
Online selling through the website
Applying of the retails stores
Capsules only available in store
Role of complexity and value-adding
Add value by selling only in Nespresso Shops
Add fame to the product by having a high standard in distribution
Improve the relationship with the customer
most expensive capsules
coffee machines same price like competitor Lavazza

Risks
- Legizlation (risk of loosing suppliers)
- New competitors (Carte Noire)
- Development of the coffee market (Starbucks)

Partnership
- Strategic Alliance with Braun (Coffee machines)

- Supplier Partners with retailers (Walmart, Target)


-
Intellectual
: Image, trademark and copyright are basically the most important thing of our company
-
Human
: R&D, Innovation and marketing are also very important concerning our coffees.
-
Financial
: The multiple partnerships, especially with Braun have a significant impact on our fincancial resources.
-
Physical
: Many infrastructures including coffee treatment plants, capsule factory, stocking warehouse ...


- Marketing
- Production
- Logistics
- Customer Relations ( after sale service, retail)
- Other services (Recycling...)

The activities creating the most value are Marketing, Production and Recycling (Value added for the customer)
- Manufacturing : Variable
- Marketing : Fixed
- Distribution & Channels : variable


Full transcript