In this mature market which is the coffee, the Nespresso brand has demonstrated innovation through its 1700 patents, and has positioned in the category of premium coffee with his machines and capsules; by establishing a monopoly. But faced with the loss of one of its patents this year, Nespresso is it capable to maintain its advance, and its leadership?
Nespresso is a Nestle subsidiary, created in 1970 originated in Switzerland, which is positioned in two strategic business areas:
- The coffee capsule
- And espresso machines.
Nespresso has a policy of price skimming by differentiating the high end. The brand has a significant reputation and an extremely strong brand image.
The brand has to face a broad competition, because the coffee market pre measured is booming, with 40% growth each year while the ground coffee decreases of 3% per year. Coffee has become an essential consumer product. And despite the crisis and the price of coffee rising, consumers are looking for quality and authenticity. Well understood by Nespresso.
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