Nestl''s Nespresso

Topics: Coffee, Coffee preparation, Espresso Pages: 27 (7901 words) Published: April 18, 2013

During the 70s, Nestlé anticipates the growth of the market of the up-market coffee and is inspired by the original concept of the inventor of the espresso Luiggi Bezzera. The principle is simple: offer directly at home or to the office the quality of espressos served in the best Italian cafes. Based in 1986, Nespresso looked like pioneer on the market of the portioned out coffee and introduced a new tendency which will be adopted all over the world. And since the subsidiary of the international group Nestlé did not stop surprising: more than 3 million customers worldwide, a growth superior to 30 % during 6 consecutive years and crossed for the first time the billion Swiss franc cap of turnover in 2006. The concept Nespresso leans on a trilogy: the best big vineyards of cafes, machines in espresso ingenious in the elegant design and finally, a service outstanding personalized customer. Nestlé Nespresso S.A, whose seat is to Paudex, in Switzerland, counts more than 2500 employees, markets directly its products with its consumers in more than 50 countries and manages more prestigious 160 shops situated in most big cities of the world Cafes contained in capsules Nespresso result from various regions of the world such as Brazil, Colombia, Costa Rica, Guatemala, Togo, Kenya and Ethiopia. Its range includes ‘espressos’, a range which samples in small cups (40 ml), and ‘lungos’, for the big cups (110 ml), without forgetting the editions limited by variety show of coffee produced in limited quantity and for a while given. Nestlé Nespresso limited company maintained, from its debuts, the narrow business connections with manufacturers of famous household electrical devices and carefully selected. Every partner hatches is responsible for the distribution, for the marketing, for the referencing in boutiques and the after-sales service of the machines of its own brand. At the moment, Nespresso accounts 10 partners for domestic custom’s machines with, offering various models of machines Nespresso. Machines and capsule Nespresso Professional are also available on the Internet site,, as well as through a network of importers and independent distributors, subsidiaries of Nestlé Nespresso limited company and local structures of the Group Nestlé. Today, the activities "except place of residence" of Nespresso represent 25 % of the turnover of the sales of portioned out coffee. And to seduce the consumers, Nespresso uses big means: place of boutiques, design of machines, glossy paper magazine, secondary purified... Nothing is left at random, everything is thought to evoke the refinement of the brand. The success of this company represents an interesting book case; a case of rare innovation. That’s why we chose Nespresso. In the present work, we shall approach first of all the history of Nespresso since its launch until our days. In a second time we shall speak about the marketing analysis of the company as well as about main competitors. After the study of the strategy, we shall enclose this report by recommendations. 1.0 BACKGROUND TO COMPANY: Strategy’s history

In the 70s, the Research and development services of Nestlé turn to an integrated system: a machine receiving doses ‘encapsulated ‘of coffee, every dose corresponding to a cup of coffee of 50 cc. They invent the capsule of coffee freshly ground and its concept of extraction of the coffee under pressure. Nestlé, world leader of the coffee "mass market" gets ready to attack the segment of up-market " premium coffee " thanks to this technical innovation say. A first patent of the process is registered in 1976 by the centre of development of the Group Nestlé. It is only in 1986 that the marketing begins. First of all, by the creation of the company Nespresso S.A, the wholly-owned subsidiary of the group Nestlé to Vevey. Then Nespresso dashes by targeting the Business to Business market, particularly that of offices and restaurants. The company...
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