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1986 Nestle decided to lunch the Nespresso S.A not knowing that it will reach incredibles goals. But Nespresso didn´t work world wide upto Krups became the key supplier of machines. Nowadays, Nespresso had became the European leador of coffe produce by capsules.
“Nespresso is today present in over 35 countries, with 19 subsidiaries and more than 300 staff. Thereare 11 partners for the machines, 6500 points of sale were the machines are available, , 42 Nespresso stores in 38 cities in Europe, North America and Asia, over 420000 members of the club and over 2 million consumers. In 2005, net sales reached 529 million euros. “Quoted from the case study Nespresso by Danielle Castagnoni,Tim White.
Nesspreso does not only sales to their customer coffe, theysales a style of life, an image.
Nespresso SWOT
Regarding the product, Nespresso is the only one to offer a real espresso coffee. In fact, the others machines (Senseo and Tassimo) don’t make this kind of good coffee. Machines are a real strength of Nespresso since the brand has the more innovative products: esthetical and easy to use.
The main strength ofNespresso is the capsule innovation that has made the brand the European leader in espresso machines (2005). It consists in one capsule for one coffee. The product is hermetically closed which allows keeping the good taste of the coffee. In this idea, Nespresso machines work only with the same capsule brand. So, users of Nespresso have to buy Nespresso capsules. It is a real advantagefor the brand
The positioning of Nespresso allows high prices of machines and capsules. Consumers are loyal, they want the quality of products they buy and also they desire the innovation that Nespresso offers. The creation of a “Nespresso Club” permits to give personal advice and solution to each consumer. It allows also maintaining the great image of Nespresso and the feelingto be unique for the consumer.
One of the most important forces of Nespresso is its presence all around the world (35 countries) and also close of its clients with shop in all quite important city.
The fact that Nespresso machines work only with Nespresso capsules can be seen has a real problem for consumers who can be reluctant for having to buy always thesame brand of capsule to drink coffee with their coffee machine.
The point of selling capsules only in Nespresso stores limits the proximity customers.
The price of Nespresso capsules remains a big obstacle. In fact, if we compare the price of one Nespresso capsule, it is 0,31€ in front of 0,25 € for a Tassimo coffee. It could be a barrier for new customers.
Infront of the awareness of sustainable development issues, people may be reluctant to buy products that are very ephemeral and that are used just for one coffee. The brand values are no more the same that those of consumers. It could be bad for the brand to continue using capsules with “just” coffee. Nespresso could be seen as a superficial brand with values such as ecology, ethics … thatdoesn’t matter. Consumers may prefer another brand, more responsible.
The fact that Nespresso have the capsule technology shows that they knew how to take advantage of the global and actual tendency which consists in the easy using of the product. A good product is one that offers a good taste and that is easy to prepare. Nespresso offers this two advantages.Nespresso can take advantage of the growing rate of the machine market that attracts some new competitors. So, innovation in design is now the way to seduce consumers.
Coffee remains a very famous and attractive drink. More and more workers are used to drink coffee during their break or people use to drink it at home. But there is a desire of a quality coffee that is a...
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