1. MASTER COURSE CREATING STRATEGIC ADVANTAGES
Course No.: 269.060
Winter Semester 2012/2013
Group Members:
Lisa Schacherbauer (0955399)
Alexandra Baba (0851997)
Arlind Rexhepi (1057883)
Ching Yi Mou(1256776)
WHAT NEXT?
2. Table of content
Introduction
Key factors of Nespresso
Interdependeces between factors
Future strategy scenario
Conclusions
References
4. Brand Image
• “aspirational” brand, it stands
for reputation
• Focused on „rich“ customers
• George Clooney as “brand
ambassador”
Key Factors for Nespresso’s long-term success(1)
Nespresso isn’t just a coffee…it’s an aspirational
lifestyle
5. Key Factors for Nespresso’s long-term success(2)
Price & Quality
• Business model of exclusivity
• High price – high quality
• You cant buy capsules at common shop
51.71 51.58
32.24
25.33
12.95
0
20
40
60
Nespresso Illy Lavazza Sightglass
Coffee
Starbucks
priceperpound
Espresso
Figure 1: The cost of coffee from single-serve systems, The New York Times, 2012
6. Key Factors for Nespresso’s long-term success(3)
• Seperation from Nestlé
• Different target groups
Mission Statement of Nestlé is… Mission Statement of Nespresso is…
“...positively influence the social environment
in which we operate as responsible corporate
citizens, with due regard for those
environmental standards and societal
aspirations which improve quality of life”
(Nestlé H., 1857).
“…to become an inspiring growth partner that
delivers creative, branded food and beverage
solutions enabling operators to innovate, and
delight their consumers”
(www.nestleprofessional.com, 2012).
“…to offer customers the perfect Espresso, no
less” (www.nespresso.com, 1986).
“…a passion for quality, innovation and service
excellence” (McCombs M., 2012).
7. • Linking profit with the capsules not with the
machines
• Different coffe capsules in different flavors and
cofeine intensities
Sales strategy
8. Distribution & Ordering Service
• Ordering via interent, fax telephone
• Call center available 24 hours a day
• More than 200 special Nespresso
boutiques
9. Customer care
• Friendly workers in Nespresso
boutiques
• Nespreso Club
• Well catered Homepage
• Call center
11. FUTURE STRATEGY – SCENARIO
• Fighting in two fronts by:
• Strengthen its exclusive image
• Lanunching a new autonomous brand
• Recollect its noble and exclusive reputation and develop it
further
• Drawing a parallel between the jewelry and the coffee sector
• Carefully choose the slogans
12. FUTURE STRATEGY – SCENARIO
• Making people prood nut just with Nespresso capsules, but also
with Nespresso accessories such as Nespresso coffe set
• Bonus system for Nespresso Club
• Introducing a bonus system based on number of purchases
• It could simultaneously launch another brand which is kept
apart from the brand Nespresso
• Nespresso could sell still classy but cheaper capsules that
are compatible with Nespresso coffee machines
13. • Great job in building up a brand image which stands for
exclusivity
• Successful market segmentation by relying on “rich”
customers
• The organization has a clear conception of its core
competency
• Nespresso has to strengthen its exclusive brand image and
fight against the increasing competition
• Introduce a new autonomous brand with cheaper
Nespresso capsules, but which have still a higher quality
than the ones of the competitors
Conclusions
14. References
Anderson J., Collins M., Tavassoli N. (2012): Nespresso. What Next?, Antwerp Management School, pp. 1-14
Brooker C. (2007): Nespresso isn’t just a coffee…it’s an aspirational lifestyle marketing exercise by desperate lunatics, The Guardian, November
26th, download date: 27.12.2012
http://www.guardian.co.uk/commentisfree/2007/nov/26/drink.comment
Grands Crus: download date: 13.01.2013
http://www.nespresso.com/#/at/de/nespresso_kaffee/grands_crus
Markides C. & Oyon D. (2000): Changing the strategy at Nespresso: An interview with former CEO Jean-Paul Gaillard, in: European Management
Journal, Vol. 18 (3), pp. 296-301
McCombs M. (Nespresso customer service management), August 15th, 2012
http://www.quora.com/Nespresso/What-is-nespressos-mission-statement
Nestlé H., 1857, download date: 6.12.2013
http://www.nestle.co.za/aboutus/missionvision#.UOmnGuTAeHg
Nestlé Professionals, Company related frequently asked questions, 2012, download date: 6.12.2013
http://www.nestleprofessional.com/uk/en/FAQs/Company_related_FAQ/Pages/FAQ_Our_Company_2.aspx?UrlReferrer=https%3a%2f%2fwww.go
gle.at%2f
Nestlé loses bid to block rival coffee capsules, August 16th, 2012, The New York Times, download date: 27.12.2012
http://www.nytimes.com/2012/08/17/business/nestle-loses-bid-to-prevent-sales-of-rival-coffee-capsules.html?_r=0
Price of Coffee Machines: download date: 13.01.2013 http://www.nespresso.com/#/at/de/kaffeemaschinen/reihe_auswahl/
Strand O. (2012): With coffee, the price of individualism can be high, The New York Times, February 7th, download date: 27.12.2012
http://www.nytimes.com/2012/02/08/dining/single-serve-coffee-brewers-make-convenience-costly.html?_r=0
Figure 1: The cost of coffee from single-serve systems, The New York Times, February 7th, 2012, download date: 27.12.2012
http://www.nytimes.com/interactive/2012/02/08/dining/the-cost-of-coffee-from-single-serve-systems.html
The Coffee Revolution, p. 71, download date: 6.12.2013
http://www1.nespresso.com/precom/nmag/8/pdfs/en/nm8i_68_75_E.pdf
The cult of Nespresso, October 4th, 2007, Independent.ie, download date: 27.12.2012
