Abstract
Nestle Nespresso is one of the fastest growing subsidiaries of the Nestlé group. The group includes many different brands producing coffee. Among them, there are two very profitable entities: Nespresso and Nescafé. Although they are not the same company, they are owned by the same group, and perform different activities. Nestlé Nescafé is a company that specializes in medium-range coffee. This brand owns many different ranges of products from soluble coffee to small portioned coffee sets. The products are sold in supermarkets, and this is one of its big differences with Nespresso. It is true that one of the particular features that we could identify about Nespresso is the fact that the company sells its products within a fully owned network of outlets. Nespresso is a company that specializes in high-end coffee and coffee machines for rich people. In fact, it was created with this concept in mind at the very inception. The company was created in Switzerland in 1982 to provide high quality coffee to homes, and commercial entities. Thus, this branch of Nestlé created a very powerful coffee machine that was very expensive from the very beginning, and provided two or three different capsules. It catered to what we call in marketing, a niche market. Nespresso looks for the best coffees from all around the world, and is very particular about quality: all the coffees that do not match with the company's exigencies are given to Nestle Nescafe.
