II. EXECUTIVE SUMMARY
Thanks to the strategic analysis, first we noted that Nespresso wishes to position on the espresso coffee market as luxury product.
We especially noticed two different points of segmentation: the social class and the age.
The touched social class demonstrates that it is about customers with high incomes and liking the luxury.
Furthermore, Nespresso aims at thewell-off (CSP ++) to assert its brand image and the membership of its product in the field of the luxury. The process Nespresso is unique because it is protected by a patent for the machine and thus Nespresso benefits from a monopolistic situation.
The basic product of Nespresso is the capsule of coffee which joins with a machine made by diverse companies.
The product Nespresso is situated in theup-market register of products thanks to its elaboration, its packaging and the associated services.
Thanks to its positionning, Nespresso applies a policy which strengthens its brand image. A high price is often associated to good quality on this kind of market. This policy applies as much to the basic product ( the capsules) as to the accessories.
The policy of distribution is, as for it, inperfect harmony with the deliberate and received positionning. It consists of strategy of an integrated distribution.
the offer of Nespresso, the organized communication strategy is in perfect adequation with its marketing strategy. It is based on the contact direct and turned to a marketing « one to one ».
The communication of Nespresso is based on « Club Nespresso » which serves on one hand forselling the product and accessories, to inform and to advise the customers. On the other hand « Club Nespresso » allows to develop loyalty its consumers.
The coffee is not any more only a warm drink which serves for waking us in the morning but it becomes one moment of pleasure and relaxation.
We chose to study a brand, Nespresso, who conveys the luxury through a product onthe base considered as the good of big consumption: the coffee.
The coffee market is one of the vastest markets in the world. Diversified and elaborated, this market is influenced by many factors which we will first of all point up.
Nestlé is a multinational founded in 1867 by the pharmacist Henri Nestlé who developed powdered buttermilk made especially for infants whose mothers wereunable to breastfeed.
Today, Nestlé is the undisputed leader in the food industry, with more than 470 factories around the world, 250,000 employees, and made up of 100 different nationalities.
Nestlé Nespresso has a presence in 48 countries and has 19 wholly owned affiliates/subsidiaries. The Company has more than 1,400 employees around the world and 40 outlets in key cities and 16,000 points ofsale.
In 2005, Nestlé Nespresso experienced an annual growth of 36 percent, which is above its sustained annual compound growth rate of more than 30% during the last five years.
IV. SITUATION SUMMARY
A. MARKET SUMMARY
1. Product : the offer
The coffee in individual dose is a new mode of preparation of coffee, launched in 1986 in Switzerland by the Nestle group known as the brand“Nespresso”.
Its design was born from the wish of the brands to improve their margins on a market that remains steady.
The individual dose is introduced into a machine, where passes hot water, the coffee is directly led in a cup, it has then only to take off the dose and to throw it. The process allows you to make a small number of coffees; it can also make several kinds of coffees, according to tastesof one’s preferences (and even for certain manufacturers for tea, chocolate and capuccino). About the disadvantages, it is necessary to note the price and the increase in waste which is due to the packing.
Nespresso was announced from the beginning as a luxury and the members are a privileged target: they are urbans with high purchasing power who are more