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Reference no. IMD-5-0543
Prize winner
Subject category: Marketing
Published by:
IMD (2000)
24 pages
Data source:
Field research


The case traces the development of the Nespresso System in a 100%-owned affiliate deliberately placed outside of Nestle's main organisational structure. It highlights the team's successes and challenges in creating a new, small, niche segment in the mature coffee market and its prospects for growing the business from CHF150 million to CHF1 billion within the next decade. A radical departure from most Nestle lines of businesses targeted to the mass market, the Nespresso story offers provocative lessons about innovation in large, highly structured organisations.

Teaching and learning

This item is suitable for postgraduate and executive education courses.


Innovation; New product development; Marketing a new concept to upsca; Direct marketing; Nestle
CHF150 million annual revenue in 1999
Other setting(s):
Autumn 1999

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