Nespresso: What next ?

Résumé du document

In this mature market which is the coffee, the Nespresso brand has demonstrated innovation through its 1700 patents, and has positioned in the category of premium coffee with his machines and capsules; by establishing a monopoly. But faced with the loss of one of its patents this year, Nespresso is it capable to maintain its advance, and its leadership?

Nespresso is a Nestle subsidiary, created in 1970 originated in Switzerland, which is positioned in two strategic business areas:

- The coffee capsule
- And espresso machines.

Nespresso has a policy of price skimming by differentiating the high end. The brand has a significant reputation and an extremely strong brand image.

The brand has to face a broad competition, because the coffee market pre measured is booming, with 40% growth each year while the ground coffee decreases of 3% per year. Coffee has become an essential consumer product. And despite the crisis and the price of coffee rising, consumers are looking for quality and authenticity. Well understood by Nespresso.

Extraits

[...] Nespresso was able to communicate fully on its high end image. The brand has continuously adapt to the changing consumption by diversifying into the flavors of capsules, in machines, incorporating gourmet coffee, then is placed in the tea market whose consumption has doubled in 15 years following the change in consumer behavior towards well being and health. Finally, patents, innovation, partnerships, quality, research and development were the key to the success of Nespresso that helped him to build a solid reputation and really stand out from competitors. [...]

[...] The patent which allowed taking lot of market shares: is the patent of the capsule "pre-dosed". These patents have generated increased sales of Nespresso products, which became the market leader due to its high ability to innovate and create a real competitive advantage. The loss of its patent, Nespresso obliges to be even more innovative. Technological factor The R & D sector is highly developed at Nespresso. The brand has invested heavily to create a real competitive advantage. Nespresso will have to innovate more and continue its policy of differentiation to maintain its leading position. [...]

[...] and Chinese market: The USA is the largest consumers of coffee in the world, so therefore represents an attractive market for Nespresso; the problem is that Americans do not consume coffee in the same way as Europeans. Starbucks is already very well established in the U.S. market and satisfied with the "gourmet coffee". China is also a very interesting market for Nespresso, because they are very keen of western products, but drink coffee for a very short time, but represents an attractive target for looking for high quality coffee. Nespresso will overcome the consumption habits of Chinese tea. [...]

[...] Changing consumer trends have pushed the brand to turn to fair trade and Nespresso is also diversifying into tea market with the machine "Special following the change in consumer consumption in a more "responsible" way. The purpose of Nespresso is to go international but locally, which has made successful. Nowadays the international perspectives of Nespresso are: the United States and China. To conclude: although the brand has lost its patent of the capsule, and despite the crisis, studies show that consumers are still looking for quality. The brand continues in the innovation that has made successful and made it the leader in premium coffee. [...]

[...] This change in strategy helped Nespresso to increase sales of its products. Nespresso realized partnerships that meet the luxury image given by Nespresso, particularly with major airlines with 'Nespresso Aviation system The brand focuses only on the first and business class, because as Nespresso, they must constantly make efforts to improve their services. In the constant effort to improve performance and services, Nespresso allied with other groups such as Krups, which allowed both companies to share their performance. With this success, Nespresso has become: Nespresso SA The Internet era in the 2000s, allows the creation of a website to expand the distribution channel of the brand by ordering directly from the website and offering a customized service to its customers nespresso club members. [...]