TABLE OF CONTENTS
1/ Introduction and presentation
a) b) c) d)
The industry (P. 2) The company (P. 2) The products (P. 2) The Key Account (P. 3)
2/ Selection and development of the Key Account
a) Selection of the Key Account (P.4) b) Development stages of the relationship andorganizational considerations, human factors (P.4) c) Considerations about the future (P.5)
3/ Development of the CRM system in BtoB environment (P.6)
a) Business objectives (P.6) b) Expectations from the new CRM system to come (P.6) c) Problems and solutions regarding the development of this system (P.6)
4/ Customer Lifetime Value (CLV) (P.7)
a) Evaluation of the CLV of this Key Account (P.7) b)Of the entire Customer base (P.8)
PART I - PRESENTATION OF THE INDUSTRY
In 2006, the two main importing countries are the USA and Germany which combine more than 40% of the global importations amount. Then come Japan, Italy and France with 6, 34%. However, among the top 15 consuming countries in 2002, Europe holds always the 11 first places. With four Nordic countries on top the list, Norwaywith 10.7 kg per capita per year, 10.1 kg Finland, Denmark and Sweden 9.7 kg 7.8 kg. France reached only the 10th position just ahead of Italy with 3.9 kg.
An efficient market in France Even if since several years trend is downward for consumption by volume, the coffee is still one of the first grocery markets. In 2007, 91.6% of French households have been buyers. On average, French spent 48.81Euros for their coffee per household and per year. With 1.16 billion Euros in 2007, the turnover of the market (up to 3.3% more compared to 2006) confirms the attractiveness and prosperity of the product. An apparently paradoxical performance, but justified by innovative and qualitative initiatives which were developed by industrials in order to meet French expectations and stimulate consumption.First tendency and important revolution, Pods are still increasing since the success of Nespresso, which remains one of the market leaders. The pods represent now over 20% of the coffee market value and France is the 4th European market for espresso machines using this method. Another strong trend, consumers are now turning towards more quality, including coffee consumed outside home, offeringblends arabica / robusta, representing a higher quality. On the other hand, french consumers remain culturally aware of the quality / taste / origin relationship, and so curious to discover the "Grands Crus" and "pure origins. The diversity of supply in this segment, which ranks France on the first place in Europe, remains unmatched. Finally, third tendency that influence the evolution of the market: the "organic coffees and fair trade coffee" sector; strengthened by the creation of new certifications such as UTZ Certified or Rain Forest Alliance, now present on shelves beside the Max Havelaar label.
Nestlé Nespresso SA, worldwide pioneer and market leader in highest-quality premium portioned coffee, introduces consumers to the world’s finest Grand Cru coffees to be enjoyed in thecomfort of their own homes and savored outside home, in locations such as gourmet restaurants, upscale hotels, luxury outlets and offices. - Headquartered in Paudex, Switzerland, with more than 4 500 employees, Nestlé Nespresso SA sells products in more than 50 countries directly to its customers. At the end of 2009, it operated a global retail network of more than 190 exclusive boutiques in key citiesaround the world. - For the fourth consecutive year, Nespresso is one of the fastest growing brands within the Nestlé Group and one of its "billionaire brands". In 2009, Nespresso achieved global sales of CHF 2.77 billion, maintaining an average annual growth rate of 30 percent since 2000. - As a company, Nespresso is driven by core competencies that enable it to create highest quality Grand...