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Case Nespresso

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Nestle - Nespresso Marketing Strategic
About Nestle
Nestle is a Swiss multinational food and beverage company headquartered in Vevey, Swiss. Nestle’s products include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. 29 of Nestle’s brands have annual sales of over 1 billion Swiss francs including Nespresso, Nescafe, Kit Kat, Smarties, Nesquik, Stouffer’s, Vittel and Maggi. Nestle has 447 factories operates in 194 countries and employs around 333,000 people. Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactee Henri Nestle, founded in 1866 by Henri Nestle.
Nestle Coffee Industry
In 1985, Nestle’s coffee division was in a comfortable position regarding the overall coffee market. Long time leaders, Nestle was present and leading the mass coffee market since 1938 when it first launched it soluble coffee brand, Nescafe. Other players, such as Phillip Morris and Sara Lee, were also big multinational brands that somehow threatened Nestle leadership but that through the last two decades have not been able to achieve a threatening and sustainable growth.
Early in 1980s, coffee market was losing some of its attractiveness due to the stagnation of coffee consumption. Soft drinks and fruit juices were gaining market space to coffee products and growth was being achieved through price increases and not through increased demand. Also, coffee categories and products had also matured and stabilized over the past 10 years and no new product categories were foreseen to clearly expand the market. Nestle realized this that the real threat was not coming from big international roaster like Kraft Jacobs or Donwe Egberts but from private labels that started to proliferate in the early 80s. While…...

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