Innovation and Renovation, the Nespresso Story

This marketing plan will show that the solution to Mr. Coffee’s problem is show that the features and technological improvements, specifically the Wi-Fi option, thermal carafe, and optimal brew temperature feature create a good value and great cup of coffee. The plan will rely heavily on channel and image differentiation. This device will be easier to get than pricey Italian entries and the Mr. Coffee brand will be shown to reestablish brand affinity by keying into pop culture references.

Referring to the political aspect, it all started when Nespresso created a separate company selling coffee but, instead of targeting the mass market like Nestlé did, Nespresso targeted “wealthy and young urban professionals” positioning itself as an upmarket brand. Nespresso was able to position itself differently from Nestlé, which allowed them to develop separate commercial, distribution and workforce policies. This structure seems to have been an important success factor. On the subject of the economic part, there are a wide range of economic factors that could potentially affect Nespresso’s marketing plans. If

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Handpresso is a product designed for coffee lovers. Inspired by the quote “Simplicity is the ultimate sophistication”, Handpresso’s is developed as a simple small portable espresso machine. It is invented by Nielsen Innovation which specializes in creating new-to-the-world products. Nielsen Innovations, founded in 2000, designed and developed several innovative products such as Wi-Flow technology for a vacuum cleaner and Reelight – battery-free bicycle lights. Handpresso started as a self-financing product design project. Upon completion of the basic design, Nielson Innovation approached a couple of leaders from the espresso market to obtain a licensing agreement. The companies were happy with the portability offered by the Handpresso but they were not interested to purchase the product. Since there were no direct substitutes in the market, Nielsen Innovation decided to develop the product in-house and take it directly to market. Today, after the product development is almost complete, there are many questions that need to be answered for developing a business around this innovation. The biggest question posed is what next?

The Keurig coffee brewer is the leader in the retail market for single serves coffee brewers but it can do better. Keurig has been slowly losing some of its share of the retail market in recent years. In 2011 Keurig controlled 54 percent of the market which is down from its 2010 number of 60 percent and 2009 number of 63 percent (Geller). Keurig needs to take its product and it has to offer and enter into new markets and segments. It mainly needs to focus on the younger and lower income level of its

Starbucks is an organization that is known for being one of the largest coffee chain stores in the United States. They focus on serving delicious coffee to the customers at affordable prices while giving them an amazing experience at their store. Recently the CEO of Starbucks has announced that he will be implementing a new strategic planning initiative to his company to ensure that the customers and employees are getting the full experience of Starbucks Coffee. In his annual report he mentioned these strategies, “A proprietary and revolutionary in-store Clover® brewing system that delivers the best cup of brewed coffee available anywhere; A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks; The introduction of a new state-of-the-art espresso system that provides the perfect

The Nespresso was established in 1986 and it has been serving its esteemed customers ever since. Its story started with a very simple plan, that every person

A high quality and well defined offering – the concept is differentiated from market leader Starbucks (i.e. European versus North American). There is also a high attention to detail to build a truly authentic European coffee house environment that is supported by

Keurig Inc has been founded on an amazing idea that coffee making systems that uses individual portion packs of freshly roasted and ground coffee with unique coffee maker designed to brew perfect cup of coffee at a time. At that time there are already established gourmet coffee houses like Starbucks, which is making coffee consumers to spend more money with an average of $ 1.50 or more for a cup of gourmet coffee. This change is consumer behavior created opportunity to Keurig to offer gourmet coffees by a single-cup in offices in 1998. Within a span of four years (1996-2000), Keurig have noticed sales increased by 40% in US at home coffee market. With these facts Keurig´s management got convinced, to develop an at home one-cup coffee brewer especially for gourmet coffee lovers.

Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market

Coffee, a cup of Joe, Java or brew, it goes by many names. It can be your morning jump-start or even used as an afternoon pick me up, to be enjoyed alone or with the company of others. It is a drinkable source of energy that is enjoyed in the United States and in many other places around the globe as well. It’s no wonder that coffee is such a popular commodity. Companies such as Starbucks and Peet’s Coffee have revolutionized the coffee shop industry in the United States by making it easy and convenient for consumers to purchase single-serving cups of coffee on a regular basis. Not only is the service quick and convenient, but it also allows consumers the ability to personalize their drinks to make it to their desired preference, making it a more enjoyable experience rather than just having a cup of instant coffee at home. In this paper, I will be exploring the coffee shop industry, which will be defined as firms who sell single-serving cups of coffee to their consumers.

Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

When Schultz returned to the States he presented his new-found discoveries, of what he believes a coffee shop should be like. However, his bosses didn’t share the same belief, that creating a coffee shop with “artistic and joyful experiences” was less as important as making coffee that sells well. So, Schultz quit and he went on to raise money to fund his own coffee shop establishment , “Il Giornale.” The store started very small, with only two, or three employees, to keep labor costs down. Only sixteen months into his new founded company, Schultz found himself in the position to buy his former employers’ small scale coffee shop. To Schultz it was a no brainer to buy the company which first sparked his love for coffee, so he did. And at only thirty-four years old Schultz had one-hundred employees, several locations throughout the city of Seattle, and a dream to create a nationally recognized brand of “Starbucks Coffee.”

Nespresso's story begins with a simple but revolutionary idea; "The perfect cup of coffee, time after time and cups after cups". To do this Nespresso pioneered the concept of portioned premium coffee, it is designed to provide maximum convenience. This process has redefined the way coffee lovers from all over the world can enjoy their coffee. The key idea is in terms of quality, innovation and perfect.