Nespresso

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Innovation and commitment to highest quality as key corner stones for sustainable growth
H.-Joachim Richter Director Corporate Communications Nestlé Nespresso SA

Working at Nestlé April 1st, 2008

Disclaimer

This presentation contains forward -ooking statements which reflect Management’s current views and estimates. The forward-looking statements involve certain risks and uncertaintiesthat could cause actual results to differ materially from those contained in the forward-looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

© Nestlé Nespresso SA – Corporate Communications March 2008

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Overview

Vision &Ambition Nespresso Trilogy Building the Brand Performance

© Nestlé Nespresso SA – Corporate Communications March 2008

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What Was the Starting Point?
Nespresso Concept Idea: to offer espresso just like the best Italian coffee bars do, but directly in homes and work places. After years of research at Nestlé R&D on the technological development, including many patents, the project wascompleted in the mid 1980s. The result: the Nespresso system; an espresso machine using unique, premeasured ground coffee capsules that protects coffee from the damaging effects of light, air and moisture and allowed easy preparation with guaranteed, consistent highest quality.

© Nestlé Nespresso SA – Corporate Communications March 2008

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Our Vision & Ambition
CHF

Redefine theworld of coffee and position Nestlé Nespresso as the industry thought leader for portioned coffee Our vision is to be preferred and respected as the leading premium quality coffee company for portioned coffee, and become the icon for perfect coffee worldwide Build the Nespresso brand into a CHF 2 billion business in 2008

2008 2 Billion

1986
© Nestlé Nespresso SA – Corporate Communications March2008

2008
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Nestlé Nespresso Integration within the Nestlé Group
Nespresso is a globally managed business
its own global P&L its own global decision-making process its own business model its own global manufacturing centre its own route to market

What are the benefits?
Global business focus (independent from local priorities/P&L) Faster decision making (speed to market)Maintains consistency of super premium global brand One centre of competence (coffee, design, technology, CRM)

© Nestlé Nespresso SA – Corporate Communications March 2008

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The Nespresso Team in 2007
22 subsidiaries and 4 hubs Present in more than 50 countries 2’500 employees - HQ: 260 - Production Centre Orbe: 280 - 11 Relationship Centre: 700 - 117 Boutiques & BIS : 850 Architects ofPerfection: Nespresso employees are dedicated to delivering the highest level of quality throughout every step of the value chain, from tree to cup

© Nestlé Nespresso SA – Corporate Communications March 2008

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Managing the Value Chain
Highest quality in all we do… from the coffee tree to the cup

Best in-cup quality

48 hours delivery 24/7 service Exclusive boutique networkSuper premium POS concept State-of-the-art machines, & innovative design Great variety, convenience, guaranteed freshness Superior capsules and quality Unmatched experts for roasting & grinding Highest quality green coffee based on sustainable practices
© Nestlé Nespresso SA – Corporate Communications March 2008
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Overview

Vision & Ambition Nespresso Trilogy Building the BrandPerformance

© Nestlé Nespresso SA – Corporate Communications March 2008

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The Unique Nespresso Trilogy
Nespresso embodies the most sophisticated espresso coffee concept ever developed

Perfectly portioned highest quality Grands Crus coffees

Smart and easy to use machines

Personalised service

© Nestlé Nespresso SA – Corporate Communications March 2008

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