Nespresso final project
Nespresso is a young subsidiary of Nestlé which turned quickly into a powerful multinational company leading the portion coffee market nowadays. The company has been created in 1986 and has been immediately launched to Switzerland, Italy and Japan. During 1987, the company sold just 875 machines. Since that date, the company has increasingly expanded its operations internationally to become the famous coffee brand that everybody knows today.
In 1991/1992 J.P Gaillard decided to internationalise the brand into new major countries such as France, Belgium and Germany, and then in United States of America in 2006. Nowadays, Nespresso is a global brand selling its product all around the world. The main question would be how the company has managed such a quick success in Europe? However is it a worldwide success?
Basically the success of the company is due to an innovating strategy but not only. This dissertation will highlight the key elements of the company’s success (a premium positioning strategy, a strong customer loyalty strategy which makes the customer dependent on the brand and a good internet communication in addition to a brilliant marketing mix).
First and Foremost, we will study the coffee market and the portioned coffee market in order to know the actors of the market. The success factors of Nespresso in Europe will be analysed. Finally through a case study of the internationalisation of Nespresso into United States of America, there will be an attempt to determine whether Nespresso is a worldwide success.
2.0. Theoretical Framework
2.1. Internationalisation Motives
The globalisation is in the heart of on society. Every company would like internationalise. The main motivation of the internalisation is making profit. In fact, the internationalisation is a high level of the expansion of the company. A company did not just limit itslf to its own market, the company needed to expand in order to increase its competitiveness and its