Distribution - Entrepreneurship 101
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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