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Nespresso Case 2

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Nespresso Case 2
Rajan Munusamy PBS 1331425
Koay Renee PBS 1331431
Lee Xiu Mei PBS 1331430
Yong Yue Qin (Sherry) PBS 1331338
Chin Shiau Yin GM04975

Introduction

History
(The Coffee Evolution in Nestle)

Nestle – 1867, Vevey
Switzerland
Nescafe – 1938, Ready-to-drink coffee beverage
Nespresso – 1986,
Revolutionised in-home coffee cup quality, Italy

Why Nespresso?
(The Business Model)

Highest quality coffee
Capsules
Hermetically sealed to preserved freshness of the coffee for 6 months after production Clean
Easy to use

Why Nespresso?
(The Business Model)

Innovative stylish machines
The Nespresso Machine
Chrome-plated capsule holder equipped with a built-in opening and filtering system A microchip-monitored pump that delivered varying levels of pressure depending on the coffee blend
High Precision thermoblock system to continuously heat water in ideal range of
86degree to 91 degree centigrade

Why Nespresso?
(The Business Model)

Personalised services
Nespresso club, 24/7 online ordering service, delivery within 2 business day
Trained coffee specialists were to advise consumers about the different flavours
Provide technical assistance on the machine
Recipe suggestion, Nespresso accessories, special offers and info on new coffee blend

Problem
Statements

Problem Statements
To Sustain in the market
To achieve 1 Billion dollar target

Justification

Machine & capsule – High price
Innovative - less advertisement
Internal preferences – leadership skills SWOT Analysis

Internal Analysis
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Higher Prices
Capsule system is not ecological
Limited distributions of products
Less advertising
Short product shelve-life
Focus on premier customer

Clear Brand Image
Consumer Loyalty
Customer Services
Great Market Database
Patents Rights
Market Leader
High Quality Product

External Analysis
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Competition
Health Conscious
Increasing Price
Advertising
Substitutes Products

Huge Market
Ease of Use
Fair Trade
Consumers Willingness
Coffee Culture
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