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All finesse of highly skilled marketing



• External analysis:

|Opportunities: |Threats: |
|Macro: |Macro:|
|Coffee has become, throughout the decades one of the most popular |Serious competition when it comes to soft drinks, like sodas, |
|drinks in the world. 1.5 billion cups / day. |especially among young people. Significant budget differences |
|Socializing moment. |between soft drinkcompanies and coffee companies as far as |
|Pick up in the Prices since 2002. |advertizing goes. |
|Record profits since 2001. |Small producers are tired of getting so little money out of their |
|Consumption mainly in the northern countries.|activity and move to bigger cities to get a steady job and a decent |
| |wage. |
| |Coffee prices crashed until 2002. |
|Micro:|Micro: |
|Huge increase in the capsule segment (57% volume and 56% value) in |Nespresso, Tassimo and Senseo all have growth potential. |
|2005. And then 30% increase each year ever since. |Most of the major players see the capsule segment as a strategic |
|Most brands on thecapsule market cannot actually produce real |step. For all intents and purposes, they have at least tried to make|
|espressos out of their machine. Only hard capsule producers can. |an entering in the capsule market. |
|More and more demanding as to the quality of coffee and the ease of |Senseo is the leader in volume in France with 2.5 million machines|
|use. |sold. |
| |People have become more and more sensitive to coffee prices. |
| |Eco friendliness and fair trade trends.|


• Internal analysis:

|Strengths: |Weaknesses: |
|The Nestlé firm was created in 1866 and launched its Nescafe brand |The quality tends to be there but when you cannot afford it, you |
|in 1938: real expertise. The group employees 254199 people in 508 |cannot afford it, and both the machines and the capsules are |
|factories and 85 countries today. Nestlé cares about building strong|ridiculously expensive (let alone all of the accessories). |
|relationships between its different stakeholders and guarantying |This club kind of makes the whole idea of Nespresso overall slightly|
|long-term profits. Consumersneeds and wants matter. Nestlé wants to|elitist, if you’re not a part of it, you can’t possibly know what a |
|have the best team and recruits in consequence. The company knows to|good coffee tastes like. Therefore some people don’t feel like they |
|adapt to different countries, their customs, legislations, cultures,|relate to the Nespresso world at all. |...