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Nespresso innovation strategy
Transcript of Nespresso innovation strategy
“Coffee is at the heart of all we do.
Yet consumer pleasure is why we do it.”
-Nespresso manages every aspect of the coffee production process from farmer to consumer to maintain the highest quality standards.
-Founded in 1986
-Autonomous globally managed business of the Nestlé Group
-Present in almost 60 countries
-Pioneer of the portioned coffee segment
Today, the company continues as the category driver of innovation, quality and consumer demand.
What is new?- Product and Service innovation
How new is it?- Module innovation and Incremental innovation
New for whom?- Customers, companies, branch and international market
Innovation source- Technology push-innovation
Sources of strategic innovations
-boutique pick up
-Diferents types of machines
-Accesories (glasses, spoons, bags, capsules, tableware, maintenance...)
-Adults 27-49 years
-The main consumers of nespresso are economically stable with access to mass media.
*A range of smart and stylish machines with 30 models
Machines developed with and produced by 6 machine partners
*Nespresso holds a global market share of over 19% in the segment of espresso & filter portioned coffee machines (source: GFK based on survey of 10 main European countries).
* More than 50% of the Club Members experienced Nespresso for the first time through friends and family.
* Over 1.9 million Facebook fans
* 180,000 unique customers visit the online boutique every day.
*Over 70% employees in contact
*E-commerce platform, network of boutiques, customer relationship centre, mobile app.
*Over 300 boutiques worldwide at the end of 2012, versus 1 boutique in 2000
*More than 1,300 coffee specialists in the Customer Relationship Centres maintain regular dialogue with Nespresso Club Members.
*Only an estimated 1-2% of the world’s green coffee crop meets the Nespresso specific taste, aroma profiles and quality standards.
*2 production centres based in Switzerland (Avenches and Orbe)
*More than 14,000 dedicated used capsules collection points around the world.
Three-categories of non-customers
Current market: 27-49, middle to high class.
1st category: Young consumers of the Brand, mostly between 20 and 30 years old, very Brand sensitive and that usually change by trend.
2nd category: People who like drinking coffee in the traditional way, old coffee drinker who don’t have patience to learn how to use the coffee machine, buyers who are price sensitive, kids.
3rd category: People who really like to drink coffee but are not completely informed about the advantages of the product, concerned about the usage of the machine.
For 27 years, their success has been based on their singular focus on creating the highest quality Grand Cru coffees, building long-lasting consumer relationships and operating their business in a sustainable way.
Even though they have this innovative strategy, they must keep in mind that there's a lot of competitors entering the market, so they must keep on innovating.
1) Nespresso brand
2) Business model
3) Classification overview
4.1) Sources of strategic innovation
4.2) Strategic outline
4.3) ERSK Square
4.4) Three categories of non-costumers