Nespresso Case
Executive Summary
Nespresso is a company born in the 80s but that hasn’t encountered a large success until the last ten years. This brand is for the moment the market leader in terms of capsules. However, many competitors are developing and threatening to shrink the market share of Nespresso.
The market surrounding Nespresso is broad, very competitive and worldwide. The set of competitors is divided into four categories, the espresso drinker, the coffee drinker, the hot drinker and the drinker. To attract more clients and gain market shares, the coffee industry uses factors of attractiveness. We consider the five following characteristics as relevant to have an impact over consumers when they have to make a choice during their shopping: quality of the product, price, packaging, social dimension and environmental impact. Nespresso has many different competitors in a market where the taste is really diversified. We have shown up all the strengths and weaknesses of these companies and also we have compared them with Nespresso. We have chosen 3 competitors according to their market quote and 1 of them according to its potential as competitor. The main strengths of these competitors are; size in the U.S.A. market, the sustainability policy, the financial capability and compatibility with Nespresso’s machines. The consumers that Nespresso deals with for the moment are the upper middle and upper class that live in the city and are between 25-55 years old preferably. These consumers are usually willing to pay a lot for a fashionable product and will therefore be interesting for Nespresso.
The Product Plan will give us information on how to improve Nespresso image from the eco-friendly point of view and on another hand we will try find a solution to the problem that Nespresso is facing with competitors that sell their product in supermarkets. These are the two main issues, however Nespresso could also try to develop some new product and in this way open itself to
Nespresso is a company born in the 80s but that hasn’t encountered a large success until the last ten years. This brand is for the moment the market leader in terms of capsules. However, many competitors are developing and threatening to shrink the market share of Nespresso.
The market surrounding Nespresso is broad, very competitive and worldwide. The set of competitors is divided into four categories, the espresso drinker, the coffee drinker, the hot drinker and the drinker. To attract more clients and gain market shares, the coffee industry uses factors of attractiveness. We consider the five following characteristics as relevant to have an impact over consumers when they have to make a choice during their shopping: quality of the product, price, packaging, social dimension and environmental impact. Nespresso has many different competitors in a market where the taste is really diversified. We have shown up all the strengths and weaknesses of these companies and also we have compared them with Nespresso. We have chosen 3 competitors according to their market quote and 1 of them according to its potential as competitor. The main strengths of these competitors are; size in the U.S.A. market, the sustainability policy, the financial capability and compatibility with Nespresso’s machines. The consumers that Nespresso deals with for the moment are the upper middle and upper class that live in the city and are between 25-55 years old preferably. These consumers are usually willing to pay a lot for a fashionable product and will therefore be interesting for Nespresso.
The Product Plan will give us information on how to improve Nespresso image from the eco-friendly point of view and on another hand we will try find a solution to the problem that Nespresso is facing with competitors that sell their product in supermarkets. These are the two main issues, however Nespresso could also try to develop some new product and in this way open itself to
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