Marketing Management

Jelizaveta
Nazrin
WBS - Integrated Marketing Agency London Joachim
Aura
Haider
Contents
● Introduction to company
● MACRO environment
● MICRO environment
● Competitors analysis
● SWOT
● Conclusion
● Recommendations
● References
Introduction to company
The nespresso concept, - “to deliver the perfect cup of coffee cup after cup”

● Founded 1986

● present in over 60 countries

● More than 9,500 employees , compared to 331 in 2000

● Over 320 boutiques worldwide

● 50% of new consumers experience Nespresso for the first time

through friends and family

 MACRO environment
PESTEL analysis
T Development in machine production
Pods: biodegradable, washable, recyclable
P/E UK politically stable nation, encourage business
Digital revolution (advertising, database)
New channels of distribution (e- commerce)
growth(corporate tax rate change) 23% -
21% E Environmental concerns (waste per cup, water
consumption, pollution, climate changes,
recycling)
Fair trade coffee, sustainability
S Coffee increasing in popularity, instant coffee
consumption declining, artisan coffee L Supremacy of UK laws (eg. labelling of products,
demanded. Coffee pod machines meeting food hygiene, GM-free policy)
the needs of modern coffee consumer. Intellectual property
 MACRO environment
Industry analysis - Market size

● 2013 sales have

reached £ 1,330.4
million, rising by 7%
from previous year

● Average 12% growth

rate since 2008

● Forecast growth 2014-

2019 +15%

Source: Passport,
MACRO environment
Industry analysis - Categories

● Instant coffee: market leader (75% of

sales in 2013)

● Pods: rapidly growing segment

○ Reached 7% retail sales
○ +300% sales in 5 years
○ Rising star (BCG Matrix)

● 600,000 coffee pod machines sold in

2012
MACRO environment
Perceptual map

Source: Aura lazzarini,

Competitor analysis in 6 steps

Competitor Analysis
Competitor Analysis in 6 Steps:

Source: Michael Porter, Competitive Advantage; Thompson & Strickland, Crafting & Implementing Strategy n.d.
 Competitors analysis
Identifying Competitors
Industry Analysis - Layers of Competition

Source: Lehman and Winter. Analysis for Marketing Planning appearing in Cravens 9 2009 Source: Joachim Schweier 2014
Competitors analysis
Assess Competitive Performance - POP vs. POD

● Eco- Friendliness ● Variety

● Technical aspects ● Lifestyle
● Price

Source: David Aaker n.d.

Pod/ Pads coffee machine manufacturers

Competitors analysis
Perform Strategic Group Analysis

Strategic Cluster

Source: Joachim Schweier 2014

Competitors analysis
Identifying Key Success Factors
The Strategic Clock Bowman´s Strategic Options
Bowman´s Strategic Options

Source: Christodoulou I. and Patel Z. (2013). BKEY 601 Strategic Perspectives, McGraw Hill editions – second edition
Competitors analysis
Benchmark Competitors - 4P´s
4 P´s - Competitors Performance

Source: Joachim Schweier 2014

Competitors analysis
Profile Competitors Objectives & Strategies

Porters’ 5 Forces

Coffee Industry Attractiveness Source: Joachim Schweier 2014

MICRO environment
Marketing Mix

Source: Jelizaveta Parsina, 2014

MICRO environment
Segmentation

● Upper to middle class ABC1

● Home use & Office use
● Have disposable income
MICRO environment
Value Chain Analysis

Source: Jelizaveta Parsina, 2014

MICRO environment
Customer Journey

Source: Jelizaveta Parsina, 2014

Micro environment
Business Model Canvas
 Micro environment
Product lifecycle

Source: FPPT.COM, 2014

MICRO environment
Financial Analysis: Gross Profit margin
MICRO environment
Financial Analysis: Current Ratio
MICRO environment
Financial Analysis: Return on Shareholders Funds
SWOT analysis
Conclusion &
Recommendations
Diversifying current product range Growing coffee industry
Brand collaboration Strong brand image
Improve the recyclability of pods
Premium positioning
New distribution channels
Assess business profitability PLC - growth stage
Highly competitive market
 Thank You
Any Questions?
 References
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 References
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 References
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