Nestlé Nespresso SA A PASSIONATE ENDEAVOUR IN PURSUIT OF EXCELLENCE

1. Arber Ymeri

2.  good research for café segments
 the fancy image
 the boutiques
 sustainable innovation for quality
 machine and design (stylish coffee machines )
 Independence from Nestle (independent strategy)
 high quality coffee and fabulous marketing

3.  Nespresso system (focusing on roast and ground coffees)
 Nespresso select the attractive customer segments
◦ Men and women aged between 35 & 49
 Nespresso targets high end customers precisely
◦ Single customers
◦ Restaurants
◦ Offices

4.  No mass supermarket channels
 Nespresso established
◦ Boutique stores
 in 2010, 215 boutiques worldwide
 Boutiques locate in the exclusive shopping streets
◦ Tele-ordering
◦ E-commerce web sites
◦ Nespresso club for its customers
 Club members receive information , advice and tailored
services

5.  George Clooney as “ brand ambassador”
 The slogan, ‘’Nespresso, what else’’
 Stylish magazine for high-value customers
 The other media
◦ Television
◦ Print and outdoor advertising
◦ Celebrity endorsements
◦ Websites like facebook
◦ Smartphone apps.
 Nespresso launched several ecological friendly innitiatives

6.  The success of the business relies on
◦ different organizational process,
◦ different business culture and
◦ Mindset
 the company retains its complete autonomy form
Nescafe organization

7.  Nespresso did not set out to make a profit on the
machine sales
 seeing instead the machine purchase as the essential
first step in selling the consumer more Nespresso
coffee

8.  Nespresso pays attention to demands of customers
 Nespresso continued to invest into call centers and
coffee specialists

9.  Nespresso is unique
◦ They were the first ones to introduce coffee in capsules
◦ Offer the best quality coffee in the shortest time possible

10.  Bargaining Power of Suppliers
◦ Relatively low
 Bargaining Power of buyers
◦ Is low
◦ Customers can rarely negotiate prices
 Substitutes
◦ many substitutes for Nespresso coffee
 such as instant soluble coffee or other brands of coffee
 Threat of new entrants
◦ many companies would produce capsules suitable for Nespresso
Coffee machines because there are not any patent restrictions
 Intensity of competitive rivalry
◦ Many competitor are in this industry
◦ They seek to produce similar capsule for Nespresso

11.  In 2012 the patents for its branded coffee system
expired
 other entrants into this market because there are not
any patent restrictions
 Nespresso now needs to compete for it's business in
new ways because other companies are producing
coffee for it's unique system

12.  To expand in cities where there are two habits;
◦ The habit to appreciate the coffee and
◦ The habit of shopping
◦ E.g. the middle East
 Development and innovation
 Reenter the coffee machine market
◦ creating a new and innovative machine