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Nespresso PPT 17.1.11 Version

This document summarizes Nespresso's business strategy and competitive advantages. It discusses Nespresso's history of innovation in the single-serve coffee market since the 1970s. It also analyzes Nespresso's leading market position, differentiation through high quality coffee and services, and management of the entire value chain. Nespresso's strong brand identity and ability to rare and imitate its capabilities give it sustained competitive advantages. The document concludes by considering opportunities such as expanding markets and improving sustainability, as well as threats like increasing competition.

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2K views23 pages

Nespresso PPT 17.1.11 Version

This document summarizes Nespresso's business strategy and competitive advantages. It discusses Nespresso's history of innovation in the single-serve coffee market since the 1970s. It also analyzes Nespresso's leading market position, differentiation through high quality coffee and services, and management of the entire value chain. Nespresso's strong brand identity and ability to rare and imitate its capabilities give it sustained competitive advantages. The document concludes by considering opportunities such as expanding markets and improving sustainability, as well as threats like increasing competition.

Uploaded by

trailrun2502
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lehrstuhl fr Absatzwirtschaft und Marketing Katholische Universitt Eichsttt-Ingolstadt

The Nespresso Winning Formula


Continuous innovation and highest quality as cornerstones for sustainable growth

Lily Chen Li, Andrew Liu, Julien Toulouse & Jrmy Brache

Contents
Nespressos History

The Market and Nespressos Competitors

Nespressos Strategy and Competitive Advantages

Perspectives

Nespressos History

The Market and Nespressos Competitors

Nespressos Strategy and Competitive Advantages

Perspectives

Nespressos History
1970: First patented application for ground coffee caps
1986: introduction of a system of extracting coffee from capsules by Nespresso (a division of Nestl) to the Business and to premium domestic household markets 1988: Beginning of a market success & introduction of Le Club community 1990: Contract signatures with coffee machine manufacturers. Today: Nespresso remains pioneer and worldwide market leader in premium portioned coffee, proposing the best quality Grand Crus to be enjoyed in the comfort of your own home

Nespressos Fast Evolution


2000
210mn 868 6% 600,000 Turnover in CHF Cups per minute Coffee Systems MS (Units) Global Club Community

2009
2.770 bn 10.000 19.5%
2 770

8 millions

1
331

Global Boutique Network


Nespresso Employees

191
4,500

210

1990

1995

2000

2005

2009

Nespressos Today Situation


Global Nespresso Boutique Network

Nespressos History

The Market and Nespressos Competitors

Nespressos Strategy and Competitive Advantages

Perspectives

Nespressos Market

Nespressos growing Competition

Nespressos outperformance
Average annual growth rate exceeds 30% over the last 8 years

Today, Nespresso sells 10x more than in 2000

Worldwide market leader in highest-quality premium portioned coffee

10

Nespressos History

The Market and Nespressos Competitors

Nespressos Strategy and Competitive Advantages

Perspectives

11

Nespressos Winning Strategy

Broad market scope

Differentiation

Cost Leadership strategy

Segmentation strategy Narrow Market scope

Uniqueness competency

Low cost competency

12

Nespressos Competitive Adv.


Best in Cup Quality

Best in Class Services

High Brand Identity

Managing the whole Value Chain: from the Coffee to the cup

13

VRIO
Valuable Best in Cup quality High Brand Identity Rare Imitable Organisation

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Best in Class Services


Nespresso Value Chain

Yes

Yes

No

Yes

Yes

Yes

No

Yes

14

Best in Cup Quality


Only the top 1-2% of the worlds green coffee crop meets Nespresso specific taste/aroma profiles and Nespressos demanding quality standards

High Variety & Individual Choice (16 varieties of high quality Grands Crus) Dedicated Nespresso team & Rigorous quality management
15

High Brand Identity


Nespresso is established as a super premium brand and concept of perfect portioned coffee worldwide

Unstoppable drive for innovation & distinctive design Passionate global brand community Aspirational iconic global brand

16

High Brand Identity


1st global roast and ground coffee brand

Since 2008 among the top 20 risers in brand value ranking

17

Best in Class Services


Nespresso has successfully shaped a direct contact, a direct consumer relation, thanks to its premium services

Personalized & exclusive services to create long-lasting consumer relationship Flawless execution Recognition & intimacy, exclusive linked to the brand

18

Managing the whole Value Chain


Unique Nespresso Business Model based on vertical integration

Value Chain

Machines

Coffee

19

SWOT
Strengths: Market leadership Coffee quality Large range of products Luxury brand image Communication George Clooney High quality of service Stand alone globally managed business - Synergies with Nestle Weaknesses: Price Distribution Ecology Opportunities: - Foreign development outside Europe - Low developed market - Ecological trend : sustainable quality development - B2B development

Threats: Patents end in 2012 Ecological legislations A growing number of competitors

20

Nespressos History

The Market and Nespressos Competitors

Nespressos Strategy and Competitive Advantages

Perspectives

21

Perspectives
Improving the sustainability performance of Nespressos value chain
Conquer new markets outside Europe Continue urban expansion strategy in big western cities Defend and grow intellectual property portfolio Increasing shares on B2B market

22

Thanks

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