Product details

This is part of a case series. Nestlé want to introduce a new multi-beverage coffee machine positioned for the mass market. The decision is complicated by the fact that Nestlé already has a successful coffee machine (called Nespresso) that is positioned at the high-end of the market and has a best-selling instant coffee brand (ie Nescafé) positioned for the mass market. The (A) case addresses the questions: (1) Given the existing crowded coffee-machine market and Nestlé’s own position at the top-end of this market (with its Nespresso machine), should the new machine (targeting the mass market) be introduced? (2) If it is, what should its positioning be to allow it to differentiate itself; not only relative to its existing competitors but also relative to two other Nestlé brands – Nescafé and Nespresso? Should it be launched under the Nespresso or Nescafé brand name (or neither)? And how could Nestlé avoid potential cannibalisation of its Nespresso and/or Nescafé sales?