HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeNespresso: Strategy reset for growth: The youth marketback to Marketing

Case Study

Nespresso: Strategy reset for growth: The youth market

By Kamran Kashani and Goutam Challagalla

34 pages

October 2023

Order this case study

Reference: IMD-7-2479

Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certain shortfall, the company needs to attract young coffee drinkers among Millennials and Generation Z, whose consumption and values are significantly different from the current base. Management is being forced to reset its historically successful strategy for a new era when today’s young consumers will soon account for the bulk of the global coffee market.

Learning Objective

Practice the full cycle of extracting actionable insights from market analysis – including long-term trends and features of customers and competitors – and translate the takeaways into specific strategic priorities, decisions and plans.
Learn about different analytical techniques and frameworks as decision-making tools.
Realize the importance of continuous innovation in all aspects of marketing to stay ahead in fast-moving and increasingly commoditized markets.
Recognize the value of insights that come from “hearing the voices of customers,” especially non-customers, through various research methods including direct interviews with a representative sample.
Grapple with, and decide on, difficult managerial issues such as communicating corporate sustainability to a sceptical youth market or creating a customer value proposition and brand strategy that appeals to decidedly different market segments.

Keywords

Marketing, Strategy, Sustainability, Strategic Marketing, Strategic Planning, Global Marketing, Portioned Coffee, Premiumization, Disruptive Innovation, Young People, Millennials, Generation Z, Consumer, Communication, Brand Building, Branding, Brand Reshaping, Consumer Research, Consumer Archetype, Consumer Segmentation, Marketing Decision, Low Cost Competition, Market Leadership, Anticipatory Strategy, Reactive Strategy, Strategic Repositioning, Growth

Settings

World/global
Nespresso, Consumer Goods, Coffee
2023

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Nespresso: Strategy reset for growth: The youth market
Nespresso: Strategy reset for growth: The youth market (Abridged)

Best-selling Case Study

This case study is part of a series

Nespresso: Strategy reset for growth: The youth market
Nespresso: Strategy reset for growth: The youth market (Abridged)

Keep reading

Article

Navigating Luxury’s New Reality - Krug - Manuel Reman

Manuel Reman combines Krug’s tradition with innovation, prioritizing authenticity and sustainability to keep the champagne house relevant in evolving times.

Leadership Luxury Strategy Sustainability

By Stéphane J. G. Girod

in I by IMD

Article

You are not your role: how to lead without losing yourself

Taking up a new leadership post can mean a dramatic shift in the way others see you – and how you define yourself. It is vital to learn how to separate your true self from the demands and expectations of the role.

Leadership Marketing Organizational Culture Purpose Stakeholder Management

By Judy Kent and Alyson Meister

in I by IMD

Article

Keep an eye on marketing if you want to avoid a car crash - Su-Mei ThompsonI by IMD

Campaign failures at Apple, Bud Light, & Jaguar show why boards must prioritize marketing oversight. Insights from Su-mei Thompson.

Board Diversity and Equity and Inclusion Marketing

By Su-Mei Thompson

in I by IMD

Article

Do you know the four As of cultivating strategic thinking?

Being able to think strategically is key to addressing the ever-increasing demands on leaders – but it's easier said than done. Here are four key capabilities that will help you succeed in turbulent times.

Strategy

By Tania Lennon

in I by IMD Brain Circuits

28 January 2025

Article

Soft skills for hard targets: Why leaders need IDGs to reach the SDGs

Progress towards achieving the UN Sustainable Development Goals has been slow. Leaders need Inner Development Goals to become true sustainability champions.

Sustainability Leadership

By David Bach, Natalia Olynec and Heather Cairns-Lee

in I by IMD Brain Circuits

27 January 2025

Case Study

Brookfield Asset Management Catalytic Transition Fund

Finance Economics Sustainability

By Arturo Bris and Raphaël Jean Luigi Grieco

Case Study

China Resources Beer: Becoming future ready

China Digital Human Resources Strategy Diversity and Equity and Inclusion

By Mark J. Greeven and Wei Wei

Case Study

Sea2see: Seastainable vision

Entrepreneurship Family Business General Management Global Business Marketing Sustainability

By Benoit F. Leleux and Thomas Brochier

Case Study

DIDA: Becoming a world leader in IT infrastructure

Strategy General Management Digital Disruption

By Patrick Reinmoeller

Article

Honda and Nissan need more than a $58bn merger to compete with Chinese EVs

Facing mounting competition from Tesla and BYD, Honda and Nissan's big bet on a merger might not be enough to close the gap. Survival may depend on thinking beyond traditional boundaries.

Business Transformation Strategy

By Patrick Reinmoeller

in I by IMD

22 January 2025

Navigating Luxury’s New Reality - Krug - Manuel Reman

By Stéphane J. G. Girod
in I by IMD

Summary

Manuel Reman combines Krug’s tradition with innovation, prioritizing authenticity and sustainability to keep the champagne house relevant in evolving times.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Luxury

Strategy

Sustainability

Browse all topics

You are not your role: how to lead without losing yourself

By Judy Kent and Alyson Meister
in I by IMD

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Marketing

Organizational Culture

Purpose

Stakeholder Management

Browse all topics

Keep an eye on marketing if you want to avoid a car crash - Su-Mei ThompsonI by IMD

By Su-Mei Thompson
in I by IMD

Summary

Campaign failures at Apple, Bud Light, & Jaguar show why boards must prioritize marketing oversight. Insights from Su-mei Thompson.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Diversity and Equity and Inclusion

Marketing

Browse all topics

Soft skills for hard targets: Why leaders need IDGs to reach the SDGs

By David Bach Natalia Olynec and Heather Cairns-Lee
in I by IMD Brain Circuits 27 January 2025

Summary

Progress towards achieving the UN Sustainable Development Goals has been slow. Leaders need Inner Development Goals to become true sustainability champions.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Sustainability

Leadership

Browse all topics

Brookfield Asset Management Catalytic Transition Fund

By Arturo Bris and Raphaël Jean Luigi Grieco
Case reference: IMD-2652 ©2024

Summary

Brookfield’s Catalytic Transition Fund is a case study in how the financial industry can spearhead sustainable development. Brookfield Asset Management announced an initial closing of $2.4 billion for the Catalytic Transition Fund, marking a significant milestone toward the target of raising up to $5 billion for deployment to clean energy and transition assets in emerging markets. $1 billion of capital was provided by ALTÉRRA, the world’s largest private investment vehicle for climate finance based in the United Arab Emirates, with the purpose of mobilizing investment at scale to finance a new climate economy. The fund is focused on deploying capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. This strategic partnership will help drive clean energy investment into emerging markets, where investment needs to increase sixfold over current levels to reach the $1.6 trillion required annually by the early 2030s in line with global net zero targets.

Reference IMD-2652

Organization Brookfield Asset Management

Industry Finance and Insurance, Private Equity

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Economics

Sustainability

Browse all topics

China Resources Beer: Becoming future ready

By Mark J. Greeven and Wei Wei
Case reference: IMD-7-2538 ©2024

Summary

The China Resources Beer (CR Beer) case study is a compelling narrative of the world’s largest beer producer by volume under the leadership of CEO Hou Xiaohai. In 2016 CR Beer embarked on a pivotal transformation journey. This case study offers critical insights that particularly resonate with Chinese corporations navigating similar challenges in an era marking the end of China’s rapid economic growth. Faced with industry saturation, changing consumer behaviors, the rise of digital technology and the imperative shift from expansive to high-quality growth, CR Beer’s story mirrors the predicament in which many Chinese companies find themselves today. The case delves into CR Beer’s strategic overhaul, how it optimized its vast 60,000-employee structure, streamlined operations and embraced digital transformation to remain competitive. CR Beer’s transformation was characterized by tackling “three mountains” – operational inefficiency due to numerous small factories with high costs and low-capacity utilization, weak brand presence in the high-end beer market and an underutilized and mismatched workforce. The study also highlights the company’s innovative approach to rebranding for younger consumers, integrating consumer insights into product development and exploring new business models. It underscores the importance of internal cultural shifts to support these external changes and the role of leadership in guiding transformation. CR Beer’s journey from traditional efficiency to future-readiness offers valuable lessons in managing large-scale organizational change, strategic management and business innovation. It provides essential insights for understanding the complexities of transformation in a rapidly evolving industry, making it a crucial read for those interested in organizational change, particularly in the context of the Chinese market and its unique challenges and opportunities.

Reference IMD-7-2538

Organization China Resources Beer

Industry Consumer Goods, Food and Beverage

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

China

Digital

Human Resources

Strategy

Diversity and Equity and Inclusion

Browse all topics

Sea2see: Seastainable vision

By Benoit F. Leleux and Thomas Brochier
Case reference: IMD-7-2564 ©2024

Summary

BARCELONA, JANUARY 2023. What started in 2016 as a humble entrepreneurial attempt to contribute to a more sustainable future had turned into a solid eyewear brand present in major Western markets. François van den Abeele was even more excited by the rapid development of the Sea2see Foundation, which he set up in Ghana. But success brought its own new questions and issues. From the start, he had relied on the superb craftmanship and dedication of an Italian frame manufacturer. Over time that relationship had turned into a mutual dependency: He was now one of its major clients but, reciprocally, had developed a key supplier risk. What if something happened to that relationship? Should he develop a broader set of suppliers and, if so, how could that be done without antagonizing a great working relationship? Recycling very much set the stage for the brand’s sustainability claims, but it also took massive amounts of time to manage. As other companies started to develop their own fishing net recycling supply chains, did it still make sense to invest so much time in the upstream phase or should he pour his energy into his beloved brand? Finally, maybe it was also time to revisit the growth/profitability dilemma and open up the capital to increase the speed of growth, all for the benefit of the environment as impact fed on scale.

Reference IMD-7-2564

Organization Sea2see

Industry Consumer Goods, Optical Products

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Family Business

General Management

Global Business

Marketing

Sustainability

Browse all topics

DIDA: Becoming a world leader in IT infrastructure

By Patrick Reinmoeller
Case reference: IMD-7-2547 ©2024

Summary

Five friends created DIDA in 1983 and turned it into a global provider of IT infrastructure and services. Riding the wave of rapid growth of communication networks and increasingly global business relationships of corporations, DIDA established its brand through its strong alignment with dominant infrastructure companies such as Cisco and Microsoft. Navigating the end of the internet bubble, DIDA served as a major reseller of these companies’ products, adding value with its integration services by increasing its clients’ efficiency and enabling collaboration within corporate networks. By 2005 DIDA had resumed rapid growth through partnerships, equity-based alliances and, most prominently, acquisitions, which led to a network of subsidiaries in more than 50 countries and six continents. By the end of 2009, DIDA had shown its critics that it could grow and integrate. However, its revenue was growing faster than its profits and it was not poised to help corporations move to the next generation of internet technology which would require new capabilities for installing and managing large data centers for computing as a service (CaaS) and cloud computing. The case ends with DIDA’s CEO reviewing the prospects of shrinking core markets and displacement by technological disruption. He acknowledges the need to make choices and get ahead of technological trends again in a changing IT infrastructure landscape. DIDA could seek to further grow its core business or internalize new capabilities to get ready for a CaaS future. Should DIDA seek more profitable growth organically or through acquisitions?

Reference IMD-7-2547

Organization DIDA (Disguised)

Industry Services, Telecommunications

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

General Management

Digital

Disruption

Browse all topics