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Distribution - Entrepreneurship 101
 

Distribution - Entrepreneurship 101

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    Distribution - Entrepreneurship 101 Distribution - Entrepreneurship 101 Presentation Transcript

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