Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
Version: 05.02.2025
Revision date: 16-Jan-2025
Length: 34 pages
Data source: Field research
Abstract
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.
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
World/global
Countries:
Switzerland; United States; China; Japan
Featured company
Nespresso
Employees:
10000+
Turnover:
CHF 7.0 billion (est 2023)
Industry:
Consumer goods: Coffee
About
Abstract
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.
Settings
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
World/global
Countries:
Switzerland; United States; China; Japan
Featured company
Nespresso
Employees:
10000+
Turnover:
CHF 7.0 billion (est 2023)
Industry:
Consumer goods: Coffee