The study of the media has to be considered political, economical and a social context in which they operate. Algeria as it is the case in this paper, and after many years of insecurity and political instability appears now to be stabilizing. Algerians are gradually resuming a normal and peaceful life. Institutions are also recovering and functioning in accordance with policies of reconciliation and concordia law initiated by President Abdelaziz Bouteflika since assumed power in 1999. Thus, the Algerian media and the press has managed to make a number of tangible and qualitative advances, following the adoption of the April 1990 information bill. However, almost 17 years after the 1990 information code, media reform projects are still frozen.
[...] Besides, the Illy's brand image approaches to Nespresso one. Illy was also less established in the mass consumer market. Therefore, Nespresso needs to pay a lot of attention to its competitors Diagnosis and goal formulation Being profitable, Nespresso has already reached a satisfactory performance, but now, to achieve its goal of SFr 1 billion sales, the company needs to find new ways towards the market. Indeed, the Nespresso system is very innovative and it has created a new market that consumers were not even thinking about. [...]
[...] However important constraints have to be taken into account before making any decision: Nespresso is a part of the Nestlé group, which is a leader on the coffee market and therefore, we have to be careful that there is no cannibalism between the different divisions and their products Because of its past strategy and the advanced technology of its system, Nespresso benefits from a really strong expertise image. Added to the price, it can be considered as a premium brand. The company has to increase sales without damaging this image. There is a high risk of brand dilution. [...]
[...] Though many opportunities can be seen, as part of the Nestlé group, and because of its technical characteristics, more groups can't be targeted. Therefore we need to focus on the same segment, but rather than selling a technical device, we will now sell a whole experience based on a cup of quality coffee. To achieve this, we need to become more visible on the market place and then, to follow the lifestyle of our target group. Eventually, using the adequate communication tools, we will manage to bring Nespresso as high as being an aspirational brand for many. [...]
[...] We plan an important investment of SFr 1 million for this communication campaign. Price In order to favor machine purchase, some cross-subsidies can be implemented, which means that new customers will get a discount on their machine, without any loss on profit for manufacturers as it will be compensated by Nespresso. In order to favor customer reorders, and to encourage machine purchaser to consume more, some discounts should be given to customers, whose consumption in one year is over a certain quantity capsules for instance (125 capsules per month). [...]
[...] R&D will focus on machine improvement, in order to provide to the customer an even more convenient system, but also on process improvement so that we can reduce production costs, in order to decrease the prices, or else to increase our margin. This improvement concerning prices will also be favored by economies of scale as sales increase but also economies of scope with diversification and economies of experience, as the production process will be always more known by workers. Maintaining this focus on R&D will participate to strengthen Nespresso's position on the market, and ensure profitability on long term basis. [...]
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