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Analysis of Nespresso's targets

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  1. STEP Analysis
    1. Socio-cultural
    2. Technological
    3. Economic / competitive
    4. Political
  2. Segmentation Strategies
    1. Geodemographic segmentation
    2. Psychographic segmentation
    3. Behaviour segmentation
    4. Segmentation analysis
  3. Recommendations

Nestle was built in 1866 by Henri Nestle, a pharmacist who developed baby food for babies who did not get their mother's milk.

Nestle doubled its size during World War I.
In the 1920s, Nestle expanded its range of products like chocolate that became its second activity after milk.

Nestle profits dropped down during due to effects of World War II. In 1947, Nestle had a dynamic phase with acquired companies like Findus and L'Oreal.

In the 1990s, Nestle continued acquiring companies like San Pellegrino and others.
Today, Nestle is one of the most important groups for food sales.

[...] Geo-demographic segmentation Geo-demographic is analysis of people according to where they live'. When we look at the Nespresso Geographic and Demographic segmentation we can see two different targets aged between 28-49. They are single people and families. Geographically speaking, they live in beautiful districts of large cities. We can deduce this aspect because Nespresso ?boutiques' are situated in these districts and the costs of capsules and machines are quite expensive. Demographically speaking, the targets are women or mothers because they usually drink a lot of coffee and do the house hold shopping. [...]

[...] These Limited Editions are meant for the club members of the Group and to attract new customers. Nespresso capsules sales continue to increase every year. (Nespresso UK) Nespresso did not only use the Limited Editions to increase its club members or their new consumers. To have an espresso, you need to have a Nespresso machine. The company has designed a wide range of machines, in 2006 nineteen different kinds of machines were available, twelve of these are distributed by Nespresso and the rest are distributed by big manufacturers like Krups and Magimix. [...]

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