Marketing ManagementJelizavetaNazrin JoachimAura Haider

WBS - Integrated Marketing Agency London

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

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

MACRO environmentPESTEL 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.

MACRO environmentIndustry 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, 2014

MACRO environmentIndustry 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

MACRO environmentPerceptual map

Source: Aura lazzarini, 2014

Competitor analysis in 6 steps

Competitor Analysis

Source: Michael Porter, Competitive Advantage; Thompson & Strickland, Crafting & Implementing Strategy n.d.

Competitor Analysis in 6 Steps:

Competitors analysisIdentifying Competitors

Industry Analysis - Layers of Competition

Source: Joachim Schweier 2014Source: Lehman and Winter. Analysis for Marketing Planning appearing in Cravens 9 2009

Competitors analysisAssess Competitive Performance - POP vs. POD

● Eco- Friendliness ● Technical aspects● Price

● Variety● Lifestyle

Pod/ Pads coffee machine manufacturers Source: David Aaker n.d.

Competitors analysisPerform Strategic Group Analysis

Strategic Cluster

Source: Joachim Schweier 2014

Competitors analysisIdentifying 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

Competitors analysisBenchmark Competitors - 4P´s

Source: Joachim Schweier 2014

4 P´s - Competitors Performance

Competitors analysisProfile Competitors Objectives & Strategies

Porters’ 5 Forces

Source: Joachim Schweier 2014Coffee Industry Attractiveness

MICRO environmentMarketing Mix

Source: Jelizaveta Parsina, 2014

● Upper to middle class ABC1● Home use & Office use● Have disposable income

MICRO environmentSegmentation

MICRO environmentValue Chain Analysis

Source: Jelizaveta Parsina, 2014

MICRO environmentCustomer Journey

Source: Jelizaveta Parsina, 2014

Micro environmentBusiness Model Canvas

Source: FPPT.COM, 2014

Micro environmentProduct lifecycle

MICRO environmentFinancial Analysis: Gross Profit margin

MICRO environmentFinancial Analysis: Current Ratio

MICRO environmentFinancial Analysis: Return on Shareholders Funds

SWOT analysis

Conclusion & Recommendations

Diversifying current product rangeBrand collaboration Improve the recyclability of podsNew distribution channels Assess business profitability

Growing coffee industry

Strong brand image

Premium positioning

PLC - growth stage

Highly competitive market

Thank You

Any Questions?

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