SWOT and 4p's Nespresso

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

2. Company Overview
• Autonomous part of Nestlé 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, Cafés, Hotels & Bars : 16%
• At work: 13%
• United States:
• At home: 82.40%
• Out-of-Home 17.60%

4. Nespresso’s Business Philosophy
“ Nespresso has revolutionized the way of preparing coffee. Indeed, the
whole Nespresso experience is about delivering the ultimate coffee experience
for each one of its clients at any moments of coffee consumption.
At the heart of this concept is the unique Nespresso trilogy: the now iconic
capsules with the large variety of Grand Cru coffees, the state-of-the-art but
still easy-to-use and nice looking coffee machines, and the Nespresso Club
which 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 4P’s
Product Place
Price Promotion

6. Nespresso Coffee Machines Product
Nespresso Coffee
Capsules
Accessories
Confectionary & Sugar

7. Offices in 58 different countries Place
A website platform
Over 320 boutiques worldwide in the end of 2013

8. Price
Product Price
Nespresso Home
Coffee Machines
99€ - 549€
Capsules 0,35 € - 0,42€ (per unit)
Accessories 13€ - 75€
Sugar and
4,50€ - 26€
Confectionary

9. Promotion
• Print and TV advertisement campaigns
• Nespresso Magazine
• Social Media (Facebook, Twitter, Instagram &
Youtube)
• Sponsorships

10. SWOT MODEL NESPRESSO
Strengths Weaknesses
Opportunities Threats
Internal
External

11. Strengths
• Nespresso is positioned at the « High end » of the
coffee 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)
• L’Or in Europe
• Flexible alternatives (Nexpod)

15. Conclusion
• Over 320 boutiques worldwide at the end of 2013, versus 1 boutique in
2000
• More than 1,300 coffee specialists in Nespresso’s Customer Relationship
Centers 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 time
through 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
• Nestlé Nespresso: The Art of Espresso, Exclusive Coffee Machines, the Premium Blends, the Accessories
and 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
• L’EXPÉRIENCE D’UN ART DE VIVRE ÉPICURIEN. (n.d.). Retrieved September 7, 2014, from
http://www.lagardere-pub.com/presse/les-fiches-titres/nespresso-magazine/(srub)/lamarque
• Novel, A. (2012, January 20). What else ? Ben ça coûte vachement plus cher, George. Retrieved September
5, 2014, from http://alternatives.blog.lemonde.fr/2012/06/20/what-else-ben-ca-coute-vachement-plus-cher-
george/