nespresso ppt 17.1.11 version
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The Nespresso
Winning Formula
Continuous innovation
and highest quality as
cornerstones for
sustainable growth
Lily Chen Li, Andrew Liu,
Julien Toulouse & Jérémy Brache
Lehrstuhl für Absatzwirtschaft und Marketing
Katholische Universität Eichstätt-Ingolstadt
2
Contents
Nespresso’s History
The Market and Nespresso’s Competitors
Nespresso‘s Strategy and Competitive Advantages
Perspectives
3
Nespresso’s History
The Market and Nespresso’s Competitors
Nespresso‘s Strategy and Competitive Advantages
Perspectives
4
Nespresso’s History
1970: First patented application for ground coffee caps
1986: introduction of a system of extracting coffee from
capsules by Nespresso (a division of Nestlé) 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
2000 2009
210mn Turnover in CHF 2.770 bn
868 Cups per minute 10.000
6% Coffee Systems MS (Units) 19.5%
600,000 Global Club Community 8 millions
1 Global Boutique Network 191
331 Nespresso Employees 4,500
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Nespresso’s Fast Evolution
210
2 770
1990 1995 2000 2005 2009
6
Nespresso’s Today Situation
Global Nespresso Boutique Network
7
Nespresso’s History
The Market and Nespresso’s Competitors
Nespresso‘s Strategy and Competitive Advantages
Perspectives
8
Nespresso’s Market
9
Nespresso’s growing Competition
10
Nespresso’s 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
11
Nespresso’s History
The Market and Nespresso’s Competitors
Nespresso‘s Strategy and Competitive Advantages
Perspectives
12
Nespresso’s Winning Strategy
Differentiation Cost Leadership strategy
Uniqueness competency Low cost competency
Segmentation strategy
Broad
market
scope
Narrow
Market
scope
13
Nespresso’s Competitive Adv.
Best in Cup Quality
High Brand Identity
Best in Class Services
Managing the whole
Value Chain: from the
Coffee to the cup
14
VRIO
Valuable Rare Imitable Organisation
Best in Cup
qualityYes Yes No Yes
High Brand
IdentityYes Yes Yes Yes
Best in
Class
Services
Yes Yes No Yes
Nespresso
Value ChainYes Yes No Yes
15
Best in Cup Quality
Only the top 1-2% of the world’s green coffee crop meets Nespresso
specific taste/aroma profiles and Nespresso’s demanding quality
standards
High Variety & Individual Choice (16 varieties of high quality Grands
Crus)
Dedicated Nespresso team & Rigorous quality management
16
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
17
High Brand Identity
1st global roast and ground coffee brand
Since 2008 among the top 20 risers in brand value ranking
18
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
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Managing the whole Value Chain
Unique Nespresso Business Model based on vertical integration
Value Chain Machines Coffee
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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
21
Nespresso’s History
The Market and Nespresso’s Competitors
Nespresso‘s Strategy and Competitive Advantages
Perspectives
22
Perspectives
Improving the sustainability performance of Nespresso’s 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
Thanks
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