Boosting sales of the Nespresso System
- Executive summary
- Swot analysis
- Analysis of the environment
- Diagnosis and goal formulation
- Short-term make nespresso more visible
- Middle-term creating the nespresso experience
- Long-term: positioning nespresso as a status brand
Nespresso is the result of an innovation process that started inside the Nestle Company: a new idea of coffee that combines the quality of an espresso coffee and the convenience of the use of capsules. The process of launching this product inside a big company like Nestle was not an easy one. Innovations often bring some kind of fear in people's mind, i.e., there are barriers that must be broken during the process. Hiring someone from the outside and changing the structure, in order to make the company more agile and fast were the weapons to fight against them and to make the project move on.
Renovation is important for every long term strategy, especially in a field that is technology driven. Nestle was already a leader in instant coffee in the market, but those characteristics of innovation and renovation made the company discover another market to target, even though for many specialists, the market was already saturated.
[...] Turnover in 1998 Turnover (SF Million) Nespresso 130 Illycaffe 171 Malongo 59 Lavazza 919 Regarding the household segment, Nespresso is the leader, which has 90% shares of the market, while Malongo and Illy share the rest. However we can see that the Illy's turnover is even more than Nespresso's. Therefore, in the segment of away-from-home, Illy performs better than Nespresso. Therefore, Nespresso needs to pay a lot of attention to its competitors Analysis 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. [...]
[...] This could ultimately lead the Nespresso system to be leapfrogged by an even more innovative system developed by one of Nespresso competitors in the coffee market. So, the Nestle division has to promote and sell this system as being a part of lifestyle. This will prevent Nespresso from only being a fag in the market, and will create a competitive advantage over possible competitors. To achieve this goal, Nespresso has to target the same customers, instead of targeting new consumers. [...]
[...] Then, an execution part, where we will go into detail on how the company can make those changes, and finally a recommendation part which will sum up the changes that should be made inside the company, on a timely basis SWOT analysis Strengths Weaknesses General FIRST MOVER ADVANTAGE The target is a NICHE MARKET Nespresso is the main player in the market it has created INDEPENDENT and INNOVATIVE within the Nestle group Nestle is already a LEADING BRAND in instant coffee segment Nespresso operates according to the ENVIRONMENTAL POLICY of the Nestle Group(+) types, highly innovative, including MANY PATENTS. [...]