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Nespresso What Else? Presented by: Bismuth May-Laurence Laurenço Audrey Nelson Carlee Marketing and Customer Relationship Management 2014

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SWOT and 4p's Nespresso

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  • 1. Marketing and Customer Relationship Management 2014NespressoWhat Else?Presented by:Bismuth May-LaurenceLaureno AudreyNelson Carlee

2. Company Overview Autonomous part of Nestl Group Founded - 1986 Nespresso club introduced - 1989 George Clooney as brand ambassador 2006 70% capsule market share in Europe - 2013 3. Where do people drink coffee ? France: The places were coffee is consumed the most are: At home: 71% Restaurants, Cafs, Hotels & Bars : 16% At work: 13% United States: At home: 82.40% Out-of-Home 17.60% 4. Nespressos Business Philosophy Nespresso has revolutionized the way of preparing coffee. Indeed, thewhole Nespresso experience is about delivering the ultimate coffee experiencefor each one of its clients at any moments of coffee consumption.At the heart of this concept is the unique Nespresso trilogy: the now iconiccapsules with the large variety of Grand Cru coffees, the state-of-the-art butstill easy-to-use and nice looking coffee machines, and the Nespresso Clubwhich offers what seems to be a unique personal service.(http://nespresso-malongo-strategycomparison.blogspot.fr/2013/11/nespressos-history-and-business.html) 5. Nespresso and the 4PsProduct PlacePrice Promotion 6. Nespresso Coffee Machines ProductNespresso CoffeeCapsulesAccessoriesConfectionary & Sugar 7. Offices in 58 different countries PlaceA website platformOver 320 boutiques worldwide in the end of 2013 8. PriceProduct PriceNespresso HomeCoffee Machines99 - 549Capsules 0,35 - 0,42 (per unit)Accessories 13 - 75Sugar and4,50 - 26Confectionary 9. Promotion Print and TV advertisement campaigns Nespresso Magazine Social Media (Facebook, Twitter, Instagram &Youtube) Sponsorships 10. SWOT MODEL NESPRESSOStrengths WeaknessesOpportunities ThreatsInternalExternal 11. Strengths Nespresso is positioned at the High end of thecoffee market capsules Nespresso Gran Cru Strong identity brand What else? luxurious and elegant atmosphere; Coffee as a lifestyle Sensorial marketing Impressive customer service Nespresso Club Environmental consciousness Ecological Partnership Recycling container Dhjana coffee 12. Weakness Highly Priced Budget in for one year, 2 coffees a day : Senseo machine with Senseo capsules 240.9 / 160,9 Nespresso machine with Nespresso capsules 365 / 284,7 Limited Distribution Machines are limited for coffee only Misconception of the environmental aspect of Nespresso 13. Opportunities Environmental awareness Increasing single-serve popularity VertuoLine Aimed at North America 14. Threats Permanently linked to George Clooney Competition Patent loss 2012 Compatibility requirement 2014 Keurig in North America (72% USA) LOr in Europe Flexible alternatives (Nexpod) 15. Conclusion Over 320 boutiques worldwide at the end of 2013, versus 1 boutique in2000 More than 1,300 coffee specialists in Nespressos Customer RelationshipCenters maintain regular dialogue with Nespresso Club Members. 180,000 unique customers visit the online boutique every day. 50% of the new Club Members experience Nespresso for the first timethrough friends and family. Nespresso reported annual sales of 2.49 billion in 2011, growing by 20%during the fiscal year. 4 billion in 2013 16. What else? 17. Thank you for your attention 18. Bibliography Nestl Nespresso: The Art of Espresso, Exclusive Coffee Machines, the Premium Blends, the Accessoriesand Our Unique Club | Nespresso. (n.d.). Retrieved September 5, 2014, from http://www.nespresso.com The Nespresso Brand. (n.d.). Retrieved September 5, 2014, from http://www.nestle-nespresso.com/brand LEXPRIENCE DUN ART DE VIVRE PICURIEN. (n.d.). Retrieved September 7, 2014, fromhttp://www.lagardere-pub.com/presse/les-fiches-titres/nespresso-magazine/(srub)/lamarque Novel, A. (2012, January 20). What else ? Ben a cote vachement plus cher, George. Retrieved September5, 2014, from http://alternatives.blog.lemonde.fr/2012/06/20/what-else-ben-ca-coute-vachement-plus-cher-george/