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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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