As the title of the article already mentions, the Swiss brand Nespresso is going through a great period of sales. In 2009 it has established a turnover of 1.9 billion Euros and a total growth of 22 %, which is very remarkable because the coffee machine market has experienced a decreased sales percentage of 8 % over the same period.
In the article, Daniel Blarer, Director of Nespresso Benelux, states that the coffee filter market has experienced some serious collateral damage because of the changing market conditions. In contrast to this decrease, this has brought several benefits for Nespresso. The sales of espresso machines have gone up by 57 % last year. Nowadays, 1/6th of all coffee machines is an espresso machine. Nespresso, a Nestlé Group brand, has an espresso machine market share of 45 percent at the moment, which makes it the uncontested market leader in this segment.
When it's being asked why Nespresso is experiencing such phenomenal growth, it is mentioned that Belgium is a country which has a large number of repetitive coffee consumers. Another key factor that is mentioned, is the unique trilogy that leads to an unseen confidence in the brand. This so-called unique trilogy consists of top quality, the ease of using their innovative system and their exclusive service that is right sized on the specific needs of the customer. These factors lead to a customer that is very confident and loyal to the brand. This is one of the reasons why Nespresso is one of the fastest growing brands in the world, with an average growth of 30 % since 2000. The company is determined to close off the decennium with that same average.
The company is looking to succeed in the proposed growth by launching some exclusive series of coffee flavours as well as fashionably designed coffee machines. The company has also set high hopes on the new so-called flagship boutiques. Some 30 of these boutiques will be opened all over the world in the near future. On of these boutiques will be opened in Brussels on the 6th of May. Nespresso is also making efforts to create a new e-commerce platform to make sure that on-line orders go even more smoothly en efficiently, nowadays 1 out of 2 orders already go over the internet. The new platform is necessary in order to improve their customer service and guarantee with a maximum delivery period of 48 hours.
I am well aware of the market situation of Nespresso because I have already written an article on the Nespresso subject earlier. Even though it was about a totally different topic, it helped me understand the background situation and the threats it is experiencing. For me it was a good experience to get to know more about the company's financial situation and to get a deeper insight in the circumstances.
I believe Nespresso is a very strong brand with an even stronger business culture. The most important thing about this article is the positive trend the company is experiencing. For investors, this is the key issue in the whole story. In my opinion, as a part of the Nestlé Group, Nespresso has a lot of expansion possibilities towards the future. If we see that the brand has come up with new possibilities the expand its activities, (such as the boutiques and the new flavours) then I can say I'm very positive towards the mid-term expansion.
On the other hand, I think the company really needs to take possible competitors and threats into account and manage to overcome them by staying innovative and going in on the beat of the emerging markets in order to stay successfull and sustain expansion.
In the article, Daniel Blarer, Director of Nespresso Benelux, states that the coffee filter market has experienced some serious collateral damage because of the changing market conditions. In contrast to this decrease, this has brought several benefits for Nespresso. The sales of espresso machines have gone up by 57 % last year. Nowadays, 1/6th of all coffee machines is an espresso machine. Nespresso, a Nestlé Group brand, has an espresso machine market share of 45 percent at the moment, which makes it the uncontested market leader in this segment.
When it's being asked why Nespresso is experiencing such phenomenal growth, it is mentioned that Belgium is a country which has a large number of repetitive coffee consumers. Another key factor that is mentioned, is the unique trilogy that leads to an unseen confidence in the brand. This so-called unique trilogy consists of top quality, the ease of using their innovative system and their exclusive service that is right sized on the specific needs of the customer. These factors lead to a customer that is very confident and loyal to the brand. This is one of the reasons why Nespresso is one of the fastest growing brands in the world, with an average growth of 30 % since 2000. The company is determined to close off the decennium with that same average.
The company is looking to succeed in the proposed growth by launching some exclusive series of coffee flavours as well as fashionably designed coffee machines. The company has also set high hopes on the new so-called flagship boutiques. Some 30 of these boutiques will be opened all over the world in the near future. On of these boutiques will be opened in Brussels on the 6th of May. Nespresso is also making efforts to create a new e-commerce platform to make sure that on-line orders go even more smoothly en efficiently, nowadays 1 out of 2 orders already go over the internet. The new platform is necessary in order to improve their customer service and guarantee with a maximum delivery period of 48 hours.
I am well aware of the market situation of Nespresso because I have already written an article on the Nespresso subject earlier. Even though it was about a totally different topic, it helped me understand the background situation and the threats it is experiencing. For me it was a good experience to get to know more about the company's financial situation and to get a deeper insight in the circumstances.
I believe Nespresso is a very strong brand with an even stronger business culture. The most important thing about this article is the positive trend the company is experiencing. For investors, this is the key issue in the whole story. In my opinion, as a part of the Nestlé Group, Nespresso has a lot of expansion possibilities towards the future. If we see that the brand has come up with new possibilities the expand its activities, (such as the boutiques and the new flavours) then I can say I'm very positive towards the mid-term expansion.
On the other hand, I think the company really needs to take possible competitors and threats into account and manage to overcome them by staying innovative and going in on the beat of the emerging markets in order to stay successfull and sustain expansion.
I also think that Nespresso is a very strong brand. The company adapt to the needs of nowadays. People like to drink a cup of coffee, but they are very busy and haven’t much time. The concept of Nespresso is a perfect solution. They also offer many different types of coffee and different tastes.
BeantwoordenVerwijderenThey also have a really good marketing campaign. Everyone recognize Nespresso's brand ambassador George Clooney, and the brand's slogan is What else?
Nespresso nowadays is a very unique concept. Let’s hope that Nespresse can maintain its market position when its patents will fall, as Dries already mentioned is his earlier article.