...EXECUTIVE INTERVIEW Changing the Strategy at Nespresso: An Interview with Former CEO Jean-Paul Gaillard CONSTANTINOS MARKIDES, London Business School DANIEL OYON, University of Lausanne Background to the Interview Nespresso represents one of the most innovative ´ new products developed by the Swiss giant, Nestle. The product is basically a system that allows the consumer to produce a fresh cup of espresso coffee at home. Though simple in appearance and use, it took Nestle more than 10 years to develop it. ´ The system consists of two parts: a coffee capsule and a machine. The coffee capsule is hermetically sealed in aluminum and contains 5 g of roast and ground coffee. The machine consists of four parts — a handle, a water container, a pump and an electrical heating system. These four parts are cast into a body and form the machine. The use of the Nespresso system is straightforward. The coffee capsule is placed in the handle which is then inserted into the machine. The act of inserting the handle into the machine pierces the coffee capsule at the top. At the press of a button, pressurized, steamed water is passed through the capsule. The result is a creamy, foamy and high-quality cup of espresso coffee. The new product was introduced in 1986. The orig´ inal strategy adopted by Nestle was to set up a joint venture with a Swiss-based distributor called Sobal to sell the new product. This joint venture (named Sobal-Nespresso) was supposed to purchase the 296 machines from...
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...Nespresso Table of contents I) Introduction a. Company b. Product II) STEP Analysis a. Socio-cultural b. Technological c. Economic/competitive d. Political III) Segmentation Strategies a. Geodemographic segmentation b. Psychographic segmentation c. Behaviour segmentation d. Segmentation analysis IV) Recommendations V) Sources I) Introduction Nespresso belongs to the Nestle Group but Nespresso is also its own company and product at the same time. So I will introduce Nestle briefly and will focus the report on Nespresso as an individual company/product. a. Company 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. (Nestle UK) b. Product Nespresso SA is part of the Nestle Group, it was founded in 1986. The Nespresso system is an espresso machine using pre-measured capsules. It was introduced in Japan (1987), France & USA (1991), Benelux &...
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...Introduction : Launched 30 years ago, Nespresso is a subsidiary of Nestlé and one of the world’s leader on the coffee market. The brand became famous through its coffee makers working with pods, it is also Nespresso who opened the coffee pod segment as it was the first company to launch coffee makers working with pods. Nespresso wanted to innovate by creating the “Nespresso experience”. In this case, we will analyze the company and its strategies through the SWOT. SWOT analysis Internal diagnosis STRENGTHS A high visibility internationally: Nespresso, is part of Nestlé, which is one of the worldwide leader concerning consumer goods products: the turnover represents 58 billion euros, the company employs 250 000 people in 85 countries. So, Nespresso takes benefit from the visibility and the financial power of Nestlé. It enables Nespresso to have a better access to R&D and communication skills. Being part of the Nestlé Group helped Nespresso to become the European leader in the production of espresso machines. A high focus on the clients: One of the key factor of the success of Nespresso, it is that their strategy is based on their relationship with their clients. They listen carefully to the consumer needs and demands in order to promote fidelity within their clients. Excellence and high quality products are part of their strategy. Hence, the products have some particularity in order to enhance the unique aspect of Nespresso: - Very high quality products and a large range or...
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...Nestlé and Nespresso Based on the case study of Nestlé refines its arsenal in the luxury coffee war of the coffee war, this case talked about a subset of the coffee war that currently brewing in Western Europe between Nestlé, Sara Lee and Ethical Coffee. Nestlé is the incumbent in the market with a monopoly over its home coffee system with 1,700 patents. It has become one of the company's so-called "billionaire brands" with sales last year of $2.6bn. The Nespresso SA company was founded in Vevey, Switzerland in 1986 under the ownership of the Nestlé Group. Nespresso partnered with a Swiss manufacturer, Turmix, to produce and launch the first Nespresso coffee system in the office coffee market in Switzerland and Italy. Nestlé produced the first coffee capsules at its Swiss factory in Orbe. Nestlé traces the roots of Nespresso back to the belief that consumers wanted to have cafe‐style espresso experiences in the home and work place. Nespresso believed that the perfect combination of the highest quality coffee, water and air pressure was necessary to deliver a superior espresso. With this thinking the Nespresso system was born. Since 1986 Nespresso has expanded beyond its initial partnership with Turmix for production of its Nespresso machines. Today, Nespresso counts as partners such precision manufacturers as DeLonghi, Jura, Koenig, Krups, Miele and Siemens, all of whom provide a global distribution network of precision Nespresso machines. These machines, starting at €149...
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...TASK 3: 1. INTRODUCTION Nespresso is an operating unit of the Nestlé group based in Switzerland. Since the 90’s Nespresso sell machines, which have a market success. Packaged portions of espresso coffee are one of the fastest growing segments of the coffee market. It has between 20 and 40% of the value of ground coffee sales in the European coffee market, which totals USD 17 billion. Nespresso sales have been growing at an average of 30% per year over the past 10 years and more than 20 billion capsules have been sold since 2000 at a current selling price equivalent to about USD 0.43 to USD 0.62 per capsule. Furthermore, Nespresso reported annual sales of USD 3,22 billion in 2011, growing by 20% during the fiscal year. The aim of Nespresso is to become the icon of the perfect coffee worldwide and to be established at the super premium brand. 2. 5 FORCES, MODEL OF PORTER a. Rivalry among competiting sellers Competitive intensity of the market is strong because of the many multinational that manage the market and who have a couple of coffee brands each one. Furthermore, Nespresso did have a patent for his capsules. But now, different companies have the right to manufacture capsules. Nespresso has not the monopoly on the portion capsules market now, and the rivalry is constantly increasing between the giants of the coffee market. b. Buyers Buyers have no bargaining power with brands that manufacture and/or distribute this portioned coffee. These are brands...
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...Corporate baCkgrounder © Nestlé Nespresso SA, Corporate Communications, March 2013 Coffee is at the heart of all we do. yet consumer pleasure is why we do it. at a gLanCe Coffee is at the heart of all we do. Yet consumer pleasure is why we do it. The Nespresso story began with a simple but revolutionary idea: enable anyone to create the perfect cup of coffee – just like a skilled barista. From its beginning in 1986, the Nespresso brand concept has redefined and revolutionised the way millions of people enjoy their coffee today, and it has shaped the global coffee culture. Nespresso is not just a coffee. It is a genuine experience that combines perfection and pleasure, simplicity and aesthetics. Nespresso has evolved from being the pioneer and trendsetter into the reference in the portioned coffee category through a singular focus on delivering the ultimate coffee experience to our consumers cup after cup. This is the cornerstone upon which the company was founded, and it is the foundation that has fostered the incredible growth we have enjoyed over the last 27 years. Our success is built on creating the highest quality Grand Cru coffees, long-lasting consumer relationships and sustainable business success. These will continue to be the Key Growth Drivers of our business moving forward, as we compete in the dynamic and growing portioned coffee category. Nestlé Nespresso is a company without boundaries, with both a direct business-to-consumer and business-to-business approach...
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...------------------------------------------------- March 01, 2012 How a brand could go ahead: Nespresso Nespresso, Swiss brand, was a separate company created in 1986 as a 100% owned Nestlé affiliate aiming to further develop, produce and market the Nespresso system. The product consisted of high quality coffee packed in aluminum capsules for exclusive use in specially designed machines. There were eight available coffee varieties. With this product, Nespresso was developed as a totally innovate system. However, the company had to face some troubling signs of market. Nespresso was on sales fields for both the machines and the capsules, but at the end of 1987 just half of the manufactured machines were sold, and without the machines further coffee capsules would not sell. Consequently to this, the machines had defects that were consuming much of the maintenance and service budgets that were covering in total by Nestlé. We can see at this point, that one of the causes of the losses of the company was the slow sales in non-traditional espresso markets like japan. Given this situation, we can identify two problems faced by the company: the first one was a problem of distance with the customer, and the second one, it seems as if the company had forgotten its primary purpose: the sale of coffee, not machines. For the first issue, Nespresso had to have thought about the customer (what he wanted) within its distribution strategy. In addition, Nespresso needs to think on a way that the customer could buy the desired...
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... The Nespresso story began over 27 years ago with a simple but revolutionary idea: enable anyone to create the perfect cup of espresso coffee just like skilled baristas, but in your little environment. The Nespresso concept has redefined and revolutionised the way millions of people enjoy their espresso coffee today. It has shaped the global coffee culture. Thanks to continuous innovations and highest quality, Nespresso has evolved from being the pioneer and trendsetter for portioned coffee into a worldwide reference. Let’s go back to the start of this amazing journey! In 1986, Nestlé Group founded the company Nespresso SA. It was inspired by Luiggi Bezzera’s original espresso coffee concept. It developed a revolutionary system of portioned, encapsulated coffee and dedicated machines that interact to deliver what was expected to be a perfect coffee. But only four initial coffee varieties included Capriccio, Cosi, Decaffeinato and Bolero (now known as Volluto) were offered. And the first two machines offered (the C100 and C1100) are designed to resemble mini espresso machines that people were used to seeing and enjoying at cafés and restaurants. In 1989, Nespresso first tested the Nespresso system in the Swiss household market with Turmix as machine partner. . In 1991, Nespresso SA takes a huge turning point deciding to produce their own machines exclusively with Eugster, which becomes their exclusive producer. Within the same year, Nespresso enters the markets...
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...Nespresso coffee shop Salalah Name: __________________________ ID: ______________________________ Table of Contents Executive summary 2 Company Summary 3 Product/ Services Summary 5 Strategies – Marketing & Sales 7 Management Summary 8 Organizational Chart 9 Financial Statements 10 Balance sheet 12 Feasibility Business Idea and its suitability to Oman 12 Conclusion 13 Executive summary Nespresso coffee shop is a coffee shop that is located in Salalah exactly in the Alsaada north . That is a complete list of moderately priced "comfort" food influenced by Arab cooking traditions but on the basis of time-honored recipes from around the world. Section of the cafe and Nespresso coffee shop features a cafe with candy bar, and magazines, and space for live performers. This shop is basically the franchise that was introduced by the Nespresso the international brand of Coffee. This Coffee shop was not till now available in Salalah Oman. So, the opening of Salalah branch will provide a unique taste of coffee of an international brand. This business plan offers financial institutions an opportunity to review our vision and strategic focus. It also provides a step-by-step plan for the business start-up, establishing favorable sales numbers, gross margin, and profitability. This plan includes chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan. Company Summary The "Nespresso...
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...Sophia Fan Mr. Carter & Mrs. Farley Humanities - Matteo Ricci November 15, 2012 The Domino Effect of the White Terror Have you ever tapped lightly against one domino and watched it knock down a whole line of these small squares? It is amazing how one single action can reciprocate so many other events. This is not only the case for dominoes, of course- everyday events have occurred like this too. A perfect example of the domino effect is the Communist split from the Nationalists, commonly known as the White Terror. This sudden purge only lasted around three nights, but the effects of the split would last for many decades in the future. The Chinese Communist Party (CCP) split from the Chinese Nationalists in 1927 affected both China itself and other foreign nations through the triggering of major wars, changes in international relations, and the formation of modern China- one of the world’s leading economies. The effects of the split, both positive and negative, would last for many years to come. After splitting from the Nationalists, Mao Zedong led the legendary Long March- a campaign that would garner support for him and split the country into two parties. Although the route was extremely long and dangerous, the popularity gained along the way sustained the marchers. As Mao Zedong wrote in his 1935 poem The Long March, “the Red Army fears not the trials of the Long March, holding light ten thousand...
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...Chiang Kai Shek Chiang Kai-Shek lost control of China to the Chinese Communist Party (CCP) in 1949 following two and a half decades of mistakes and fundamental errors in ruling the struggling and fractured republic. Under his leadership, corruption was allowed to flourish in the nationalist party, failed military campaigns were commonplace, national unity was never created, and the obsession with personal wealth and gain was the rule among large numbers of the higher ranking members of the nationalist party, all of which lead to a complete breakdown of support for the nationalist party from the Chinese people. Chiang never had a “relationship with the common people.”1 From the time he came to power in 1925, he appeared never to understand his people. His obsession with purging the Kuomintang (KMT) of all Communists, his push for a New Life Movement2, making the claim, “first internal pacification, then external resistance”*3, and his use of foreign relationships and criminal organizations to gain superiority and exterminate the communists each played a role in confirming Chiang’s failure. In the fight against the Japanese in World War II, Chiang’s single-minded focus on the Chinese Communists allowed Japan to gain a strong grip in China and occupy parts of the country. It eventually required the help of the United States to defeat and oust the Japanese. Chiang’s repeated military failures against the Japanese caused him to lose support within his own elite KMT group. ...
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...|Project Title | | | |A Two-year strategic Plan on Sustaining Leadership and Competitive Advantage for Cathay Pacific | |Background | | | |Cathay Pacific Airways announced 2014 annual results in March 2015, the company stated that the business outlook for 2015 looked to be improved when| |compared to the previous year. However, a number of factors had a significant negative impact on their business. | | | |The principal adverse factors were reduced passenger yield, the continued high fuel price and the increased competition on Hong Kong routes and | |within the region have led to price wars in a climate of economic uncertainty. The Hong Kong-based airline faces a potentially more daunting...
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...• The seed that planted the Chinese Civil war lies in its social, political and economic instability within the Chinese society. The Chinese civil war was an armed conflict between two ideologically opposed forces - the Nationalists Guomingdang (GMD) and the Communists People Liberation Army (CCP) – to see who could ultimately restore power and regain central control over China. As Historian Jonathan Spence argues, the Chinese Civil War should refer more narrowly to this latter conflict between 1946 and 1949, as this produced a decisive result. Although there are many causes to the outbreak of the war, the main long term, mid-term, immediate and catalyst causes will be discussed. The overthrow of the Manchu Dynasty coupled with the Warlord era, followed by the ideological divide between the CCP and the GMD during the First United Front led to the catalyst cause during the Sino-Japanese war, in which the two parties truly showed the extent to which they will go to, to become the leader and unifier of the country, unleashing the ultimate trigger to the outbreak of the Chinese Civil War. The most significant long term cause of the civil war in China was the collapse of the Qing Dynasty, as it played a fundamental role in creating the conditions for the event. The Qing government became weakened economically, socially and politically from internal and external threats by the end of the 19th century. European imperialist powers and Japan forced their way into China to take advantage...
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...According to the internal and external analysis and we found out there are some room for Cathay Pacific for compete more aggressively if it wishes to develop its business in the Asia region. Cathay Pacific already has had a good network within South East Asia and serves most major cities from Hong Kong with reasonable frequency. Currently most of those passengers who fly to Hong Kong on Cathay flights terminate their journey at that destination (with the possible exception of Taiwan). With Cathay already having a impressive long-haul network in place a smaller number of passengers are choosing to use Hong Kong as a ‘stopover’ in order to fly on to another destination. This is an area that Cathay Pacific can exploit. Whilst the Cathay serves most major cities with good frequencies and therefore covers a large geographical segment within Asia there is one area which Cathay is not well represented, China. Because of this Cathay looses out in three ways: o Loss in potential revenue from Chinese nationals wishing to visit Hong Kong and vice versa; and o Loss in potential revenue from Chinese nationals wishing to fly to Europe, the USA or Australia and potentially using Hong Kong as a ‘stop-over’ o Loss in potential revenue from international travellers coming from outside Asia who wish to visit China potentially using Hong Kong as a ‘stop-over’. As can be seen from the analysis Cathay Pacific Airways has a well respected brand and is a well run company that is able...
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...Mao’s choice of ideology appealed to the masses as it provided them with an equal opportunity, gave them land, rights and privileges and offered them an alternative to political instability and lack of unity. Before Mao, the peasants who made up 85% of society, had endured humiliation and suffering under the imperialist dynasty. After the overthrow of the dynasty, the people were looking for answer to their extreme poverty. Mao provided that answer through his own form of Marxism Leninism, where every man, woman and child got a share. He gained support from the people by giving them land rights through land reform and offering them fair and equal treatment in the Red army. Mao also provided the peasantry with an alternative to the harsh ways of the Nationalist government. Under the GMD, the peasants had to pay 40-60% of their crops in rents, with further taxes on top. The peasants found it very hard to sustain a living under GMD control whereas Mao set to eliminate taxes for poorer peasants, set up price controls, and only have the upper 20% pay taxes. Mao also gained further support by promising to rid China of domination and interference by foreign nations. The Long March is to date considered as one of the major propaganda tools which Mao employed in solidifying his cult of personality and gaining support. The Long March occurred when the CCP had to flee a concerted GMD attack and the CCP retreated. Speaking of the Long March as a tool of propaganda, Mao himself said “The...
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