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Essay / Nespresso Case Study - 2101
Nespresso: The Perfect Cup of Coffee and the Evolution of a MarketIntroduction:Nespresso is a subsidiary brand of Nestlé, based in Switzerland. Nestlé was established in 1905 when two companies Anglo-Swiss Milk and Farine Lactée Henri Nestlé merged to form the Nestlé Company. The company was very successful and grew considerably during the two world wars; it has expanded its product line beyond its original condensed milk and infant formula products. The company is still mainly involved in the development and production of food and beverages. Nestlé is a global company whose main products are Nestlé Waters, Nestlé Nutrition and other food and beverage products. Nestlé has its primary listing on the SIX Swiss Exchange but also a secondary listing on Euronext. Nestlé is too large and too complex a company to analyze in such a short, focused document. I am interested in the growth of home and business coffee and capsule coffee systems, particularly the Nespresso brand, and how it is handling new entries into its market. Nespresso is a system that allows the consumer to prepare a new cup of espresso quickly and easily. at home. The system is based on two parts: a coffee capsule (freshly ground coffee pre-measured in an aluminum pod) and a machine. Using a Nespresso system is quick and simple: fill the water tank, turn on the machine, place the coffee capsule, close the handle (which pierces the coffee capsule), press the button. The result is a high-quality cup of espresso that rivals that of most coffee shops. Nespresso offers a number of different machines with different functions and coffee cup capacities. They start with a machine with only an option of two cup sizes and no additional features and can go up to the middle of paper......this will help the market grow and increase revenue throughout the supply chain. .Nespresso sells very well in Europe and is experiencing continued growth in the United States. As we, as a country and world, slowly emerge from recession, sales of luxury goods will increase and people will be more willing to spend money on luxuries. products to please yourself and yourself. Nespresso has found its place in the coffee market between high-end premium coffee makers and lower-cost, lower-quality systems. As the New York Times put it in 1949, "During the second and third cups, matters of high finance, high state, common gossip and low comedy follow one another." [Coffee] is a social binder, a warmer of tongues, a soberer of spirits, a stimulant of spirit, a thwarter of sleep if you wish. From roadside mugs to the classic demi-tasse, it's the perfect democrat. (New York Times)