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Nespresso and the U.S. Market
內容大綱
At the beginning of 2012, Nespresso, a manufacturer and distributor of home-brewed, single-serve coffee machines and capsules, is considering how best to increase its share of the U.S. market. It had always relied on organic growth through its own retail stores and a few premium department store chains. However, between 2005 and 2011, the demand for capsule coffee boomed, and this attracted a number of new competitors, including Starbucks, while existing competitors increased their marketing expenditures. At the same time, Nespresso’s patents were expiring, and some supermarkets started selling generic capsules for Nespresso machines. How should Nespresso change its strategy to ensure future growth? Should it relinquish its tightly controlled distribution system in order to offer increased convenience to consumers? Should it alter its product to better match the U.S. taste for milk-based coffee? Or might an increase in advertising spur demand?
學習目標
This case is particularly suited for a capstone marketing or strategy course and to both developing and accessing marketing programs at the MBA and undergraduate level. Its objectives are:<ul><li> To explore the challenges a brand can face when a market is taken for granted and growth is assumed.</li><li> To apply situation analysis, to explore customer analysis and positioning issues and to evaluate marketing strategy.</li><li> To focus on decisions related to product promotion, channels and distribution.</li><li>To understand the interlinked nature of a firm’s decisions, evaluate existing marketing programs, identify mismatches between a marketing program and a target market’s needs and understand how positioning is operationalized.</li></ul>