Ch. 11 - Developing and Managing Products

The VertuoPlus was introduced in 2014 in response to U.S. demand for larger-sized, regular coffee. Nespresso elected to have the VertuoPlus manufactured by two distinct, but equally reputable small appliance manufacturers, De’Longhi and Breville, to increase distribution while diversifying design. Both co-branded versions feature the same patented centrifugal technology. 

https://www.nestle-nespresso.com/about-us/our-history

Ch. 3 Ethics and Social Responsibility

In their quest to demonstrate how a cup can have a positive impact, Nespresso launched its AAA Sustainable Quality™ program with Rainforest Alliance in 2003, fostering long-term relationships with farmers by embedding sustainable fair-trade practices on farms, where they have grown 1.4 million trees to offset their operational carbon footprint.

https://www.nestle-nespresso.com/sustainability/the-positive-cup

Ch. 2 - Strategic Planning for Competitive Advantage

SWOT ANALYSIS

STRENGTHS

- Market pioneer

- High-quality products 

- Global presence

- Backed by Nestle

- Patented technology

- Simple application 

WEAKNESSES

- Requires, single-use, aluminum capsules 

- Expensive 

- Incompatibility with non-Vertuo capsules 

OPPORTUNITIES

- Brand alignment with luxury hospitality and corporate entities 

- Continued growth of portioned coffee market

- Cross-promotion with manufacturing partners 

THREATS

- Competitively-priced imitation products

- Many substitute products 

Ch. 1 - Overview of Marketing

“To enable anyone to create the perfect cup of espresso coffee.”

Founded by Nestle in 1986, Nespresso initially launched in the B2B market with two pioneering portioned espresso machines, subsequently hitting the consumer market in 1991. The VertuoLine was introduced in 2014, featuring coffee/espresso hybrid machines with patented centrifugal technology.

(https://www.nestle-nespresso.com/asset-library/documents/nespresso%20-%20history%20factsheet.pdf)