Nespresso Co. Analysis

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INDEX PART 1
I. NESPRESSO: AN INNOVATION OF PROCESS AND OF BUSINESS MODEL

a. Nespresso, a brand of Nestlé group
b. An innovation of product
i. High quality Coffee
ii. Designed Coffee machines
iii. The Club
iv. The Boutique Concept
c. An Innovation of Business model in the Coffee Industry:

II. COUNTRY CLIMATE

d. Cultural Environment
v. Art
vi. Architecture
vii. Literature
viii. Music
ix. Media
x. Science
e. Social environment
xi. Labor law
xii. Social protection
xiii. Swiss work permits
xiv. Hofstede’s model applied to Switzerland
f. Economic environment
xv. Economic indicators
g. Political Environment
xvi. General Background
xvii. Political structure
xviii. Policy issues
xix. Foreign policy

III. ADVERTISING REGULATION

I. NESPRESSO: AN INNOVATION OF PROCESS AND OF BUSINESS MODEL a. Nespresso, a brand of Nestlé group
Nestlé is one of the largest food and Nutrition Company in the world, and global leader in the “mass market coffee”. The firm’s strategy is mainly based on innovation. Always looking for new market to enter in or new product to develop, Nestlé has a position of pioneer in almost the food and nutrition market. The main objective of this strategy is to be, and stay, in the leadership position and benefit from the first mover advantages. The coffee market is a remarkable example of this aspect of Nestlé’s strategy. Nestlé was the first to propose instant coffee and this particular product brought the company to the position of leader on the mass coffee market. The second success of Nestlé in the coffee market is the launching of Nespresso, a subsidiary company (but with almost a complete autonomy) specialized in Espresso. The initial strategy of Nespresso, launched in Italy, Switzerland and Japan, was to focus on the professional market (Business to Business) and target the restaurants and bureaus in order to sell machines and capsules. This orientation was a total failure and Nespresso had to rethink its strategy. That is why they developed a new business model based on a BtoC luxury, innovative and unique experience strategy that revolutionized the consumption of Coffee. Indeed, Nespresso is a success thanks to its double innovation: An innovation of product and an innovation of Business model. b. An innovation of product

The real innovation of Nespresso is portioned out coffee. Using a Nespresso machine, you can make an Espresso from special capsules containing high quality coffee. However, the company not only sells high quality and design machines or capsules, its sells a concept. Buying a Nespresso machine allows you to enter the Club Nespresso, where people do not “drink” coffee, but they taste it, they savour it. The image of privilege is characteristic of the luxury market, and that is what Nespresso is going for: a luxury product and image. This aspect is noticeable when you take a look at the designs. Nespresso’s machines, logo and boutiques are designed by a design agency (Future Brand Paris), following two orders: perfection of the forms and ambivalence (in order to send this message of privilege). Therefore, Nespresso is selling a combination of three elements: the machine, the capsule, and the club Nespresso.

i. High quality Coffee
More than 16 grands Crus are available from Espressos to Decaffeinatos, Lungos and Pure Origine. We can notice the use of the word “crus” in Nespresso website communication - that is usually used for wines - which indicates the will to promote Nespresso Coffee as a luxury product.

ii. Designed Coffee machines
Offering timeless designs, high technology functions and user-friendliness, every detail has been carefully considered to provide the consumer with the ultimate experience.

iii. The Club
The...
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