This document discusses Nespresso's circular economy challenge. It provides background on Nespresso, including its supply chain and growth over time. The challenge asks how Nespresso can capitalize on the circular economy to build a premium proposition for aspirational customers. The proposal suggests making customers proud by telling the story of coffee beans, renting/leasing machines, offering personalized machines, giving discounts for returning empty refills, building a social network connecting to farmers, and displaying how many cups a machine can make.

1. NESPRESSO MBA CHALLENGE 2015
- Nitin Maurya

2. What will we discuss??
• Circular Economy – what is it?
• What is Nespresso?
• Supply chain of Nespresso
• THE CHALLENGE
• Proposal

3. Circular Economy- What is it?
Take -> Make -> Waste Take -> Make -> Return -> Renew

4. Nespresso Timeline
• 1986: Inception of Nespresso (1st in market)
• 2000: 1 boutique with 331 employees
• 2013:
– 320 boutiques
– 9,500 boutiques
– 60 countries
– 10 million club members
– 2.5 million FB fans
How to make amazing Nespresso coffee ?

5. Nespresso: from “farm” to “cup”

6. THE CHALLENGE
• “ HOW SHOULD NESPRESSO CAPTITALIZE ON
THE CIRCULAR ECONOMY TO BUILD A
PREMIUM PROPOSTION FOR THE
ASPIRATIONAL CUSTOMERS? ”
ASPIRATIONALS
• Average Age: 39 year old
• Care about Style | Social Status | Shopping = Happiness
• Define themselves through brands
• Yet believe to do something good for environment.

7. Proposal
• Make customers proud: Provide a story of COFFEE BEAN
to consumers
• RENT/ LEASE MACHINES: As customer always wants the
latest and the best of machines.
• PERSONALIZED COFFEE MACHINES
• Utilize the club programs to GIVE DISCOUNTS on returning
the empty refills to the store/ delivery person.
• BUILD SOCIAL NETWORK: Connect with Farmers on Social
Media
• DECREASING COUNTER of How many coffee cups can be
made from machine

8. Thank you
!