The document provides an analysis of Nespresso, founded in 1986, focusing on its macro and micro environments, competitive landscape, and a SWOT analysis. It highlights the growing market for coffee pods, projected to rise by 15% from 2014-2019, while recommending diversifying the product range, enhancing recyclability, and exploring new distribution channels. The findings emphasize Nespresso's strong brand presence in a highly competitive and evolving coffee market.

1. Marketing Management
Jelizaveta
Nazrin
Joachim
Aura
Haider
WBS - Integrated Marketing Agency London

2. Contents
● Introduction to company
● MACRO environment
● MICRO environment
● Competitors analysis
● SWOT
● Conclusion
● Recommendations
● References

3. Introduction to company
The nespresso concept, - “to deliver the perfect cup of coffee cup after cup”
● Founded 1986
● present in over 60 countries
● More than 9,500 employees , compared to 331 in 2000
● Over 320 boutiques worldwide
● 50% of new consumers experience Nespresso for the first time
through friends and family

4. MACRO environment
PESTEL analysis
T Development in machine production
Pods: biodegradable, washable, recyclable
Digital revolution (advertising, database)
New channels of distribution (e- commerce)
E Environmental concerns (waste per cup, water
consumption, pollution, climate changes,
recycling)
Fair trade coffee, sustainability
L Supremacy of UK laws (eg. labelling of products,
food hygiene, GM-free policy)
Intellectual property
P/E UK politically stable nation, encourage business
growth(corporate tax rate change) 23% -
21%
S Coffee increasing in popularity, instant coffee
consumption declining, artisan coffee
demanded. Coffee pod machines meeting
the needs of modern coffee consumer.

5. MACRO environment
Industry analysis - Market size
● 2013 sales have
reached £ 1,330.4
million, rising by 7%
from previous year
● Average 12% growth
rate since 2008
● Forecast growth 2014-
2019 +15%
Source: Passport,

6. MACRO environment
Industry analysis - Categories
● Instant coffee: market leader (75% of
sales in 2013)
● Pods: rapidly growing segment
○ Reached 7% retail sales
○ +300% sales in 5 years
○ Rising star (BCG Matrix)
● 600,000 coffee pod machines sold in
2012

7. MACRO environment
Perceptual map
Source: Aura lazzarini,
2014

8. Competitor analysis in 6 steps
Competitor Analysis
Competitor Analysis in 6 Steps:
Source: Michael Porter, Competitive Advantage; Thompson & Strickland, Crafting & Implementing Strategy n.d.

9. Competitors analysis
Identifying Competitors
Industry Analysis - Layers of Competition
Source: Source: Lehman and Winter. Analysis for Marketing Planning appearing in Cravens 9 2009 Joachim Schweier 2014

10. Competitors analysis
Assess Competitive Performance - POP vs. POD
● Eco- Friendliness
● Technical aspects
● Price
● Variety
● Lifestyle
Source: David Aaker n.d.
Pod/ Pads coffee machine manufacturers

11. Competitors analysis
Perform Strategic Group Analysis
Strategic Cluster
Source: Joachim Schweier 2014

12. Competitors analysis
Identifying Key Success Factors
The Strategic Clock Bowman´s Strategic Options
Bowman´s Strategic Options
Source: Christodoulou I. and Patel Z. (2013). BKEY 601 Strategic Perspectives, McGraw Hill editions – second edition

13. Competitors analysis
Benchmark Competitors - 4P´s
Source: Joachim Schweier 2014
4 P´s - Competitors Performance

14. Competitors analysis
Profile Competitors Objectives & Strategies
Porters’ 5 Forces
Source: Joachim Schweier 2014 Coffee Industry Attractiveness

15. MICRO environment
Marketing Mix
Source: Jelizaveta Parsina, 2014

16. MICRO environment
Segmentation
● Upper to middle class ABC1
● Home use & Office use
● Have disposable income

17. MICRO environment
Value Chain Analysis
Source: Jelizaveta Parsina, 2014

18. MICRO environment
Customer Journey
Source: Jelizaveta Parsina, 2014

19. Micro environment
Business Model Canvas

20. Micro environment
Product lifecycle
Source: FPPT.COM, 2014

21. MICRO environment
Financial Analysis: Gross Profit margin

22. MICRO environment
Financial Analysis: Current Ratio

23. MICRO environment
Financial Analysis: Return on Shareholders Funds

24. SWOT analysis

25. Conclusion &
Recommendations
Diversifying current product range
Brand collaboration
Improve the recyclability of pods
New distribution channels
Assess business profitability
Growing coffee industry
Strong brand image
Premium positioning
PLC - growth stage
Highly competitive market

26. Thank You
Any Questions?

27. References
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28. References
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29. References
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