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Distribution - Entrepreneurship 101
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Distribution - Entrepreneurship 101

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  • 1. E101: DistributionRyan Poissant - MaRSemail: rpoissant@marsdd.comtwitter: @ryanpoissant
  • 2. ProductPricePlacePromotion 3The Four P s
  • 3. The Four P sProductPriceDistributionPromotion 4
  • 4. 53 Parts: Delivery, Sales, Service
  • 5. It s OK and often optimal to mix &match. 62 Flavours: Direct, Indirect
  • 6. 7How to Choose?
  • 7. 8Market type;Existing, Re-segmented, New
  • 8. 9Market Stage
  • 9. 10Complexity
  • 10. 11Price
  • 11. 12Customer Preference
  • 12. Default Choices 13 Channel Type Direct Indirect Market Type New Re-segmented Existing Market Stage Early Midstage Mature ProductComplexity Complex Simple Price Expensive Cheap
  • 13. OtherFactors• Size of market• Diversity/complexityof market•  Proximity of market• Completeness ofoffering• Cost of channel• Speed to market 14
  • 14. 15Not just a tactic...
  • 15. 16 Amazon Dell...for some a Strategy Apple
  • 16. 17
  • 17. 18
  • 18. 1970 - Invented 1976 - Patented 1986 – Launched Sold as a complete solution, machines & coffee for a per cup price to restaurants and offices. 19Background
  • 19. 1970 - Invented 1976 - Patented 1986 - Launched Sold as a complete solution, machines & coffee for a per cup price to restaurants and offices. 1988 - Acknowledged dud, Nestle considers shutdown. 20Background
  • 20. 1989 - Jean Paul Gaillard namedCommercial Director.Pivots 21Background
  • 21. 22Separate machine & coffee.Sell to consumers.
  • 22. Made and serviced by 3rd parties. Sold through independent retail stores. Manufacturers handle delivery and stocking. Nespresso handles sales training. 23Machines
  • 23. Sold online and over the phonedirect to members of the NespressoClub.Delivered direct to consumers in 24hours or less. 24Coffee
  • 24. As market matured Nespressoadded their own brand machinesmade by an OEM.Added it s own retail boutiques tofurther control the sales message.Created Nespresso Pro channel toserve the office market. 25Later
  • 25. ~$3 billion in annual revenue 30% CAGR over 10 years 50 countries 20 billion capsules 12 million machines 26Results
  • 26. Questions?Comments?Suggestions? 27Thanks!Ryan Poissant rpoissant@marsdd.com @ryanpoissant