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Case Study

Nespresso: Strategy reset for growth: The youth market

By Kamran Kashani and Goutam Challagalla

34 pages

October 2023

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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

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Teaching note

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