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.
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
Available Languages
English
Related material
Teaching note
Copyright Information
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.
