Dolce Gusto Presentation
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Why NescaféDolce Gusto ? 1 NestléInvestor Seminar Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that 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. 2 NestléInvestor Seminar Consumers WW looking for versatility, quality and convenience A desire for more choice A desire for betterquality A desire for more convenience Consumers have the right to be lazy and demanding at the same time 3 NestléInvestor Seminar The coffee market is changing fast WW trends are emerging From To 4 NestléInvestor Seminar There was a gap in the market High pressure Nespresso NDG Full Automat Black coffee Long Multi bev. Brew systems cups systems Senseo Keurig Tassimo Drip filter Black cups high pressure White cup specialty coffee coffee type Low pressure type & non-coffee bev. 5 NestléInvestor Seminar We have the best technology 6 NestléInvestor Seminar Unique proprietary technology Give us an incredible competitive edge Customised extraction pressure Espresso: 6 bar Lungo: 3 bar Technical advantage Milk: <1 bar Variable temperature Direct Flow Choice (from espresso to brew cup), Consumer Benefit convenience, less cleaning, Quality 7 NestléInvestor Seminar Exceptional performance in 60/40 • Chococinovs. Tassimo: 93/07 • Cappuccino vs. Tassimo: 73/27 • Latte macchiato vs. Tassimo: 68/32 • LungoMild vs. Tassimo: 64/36 • Espresso vs. Tassimo: 59/41 • Lungovs. Tassimo: 58/42 8 NestléInvestor Seminar What have we built so far 9 NestléInvestor Seminar 1 strongconcept supportedby… Coffee-shop coffees @ home 10 NestléInvestor Seminar …a machine range like no other… • Design • Cost • Functionalities 11 NestléInvestor Seminar …a range of 22 recipes of superior quality… B l ac k C o ff ee • Moment • Target • Need State I n d ul g e C nt old M o r n i ng 12 NestléInvestor Seminar …a strong and modern brand visual identity… 13 NestléInvestor Seminar …unique brand personality … 14 NestléInvestor Seminar …a big business… By the end of 2010: #1 • Roll-out in 36 markets #2 •Close to 5 Millions machines sold to the trade •2’000’000 registered consumers #3 •4TH system WW already ahead of Tassimo. # 4 #5 15 NestléInvestor Seminar ...our business grows from the base (the key markets)... Markets Launch Share of % evol. Year Business ´08 vs.´09 Wave1 2006 39% +36% Wave2 2007 51% +58% Wave3 2008 8% +183% Wave4 2009 2% +318% 16 NestléInvestor Seminar ... and a new ambition for Nescafé Convenience = Superior Personalisation Quality By the cup 17 NestléInvestor Seminar ü We are strong on the key drivers of this business Get People to upgrade Superior • 70/30 superiority quality àvs. competition àusual coffee solution • Variety à Recipes Convenienc • By the cup Choice àCapsule e • Cleanliness àDirect flow àDesign 18 NestléInvestorSeminar How do we Operate ? 19 NestléInvestor Seminar A unique route to market Tutbury WiKChina SEB / De Longhi Girona Machine Machine Coffee production distribution production Specialised Food Food Retail Retail Retail 20 NestléInvestor Seminar A centralized model in a decentralized organisation A hybrid business àthe best of both world • A Central team (to contain complexity and cost): Global Strategy, System I/R, Partnership management Global Operations. • Role of the market is local implementation, flawless execution and ultimately P&L responsibility 21 NestléInvestor Seminar How do we see the Future 22 NestléInvestor Seminar Our vision CHF 1 Billion business 2006 2007 2008 2009 2010 2011 2012 2013 2014 NPS (mio CHF) 295 197 6 66 23 NestléInvestor Seminar Key Learning • Breakthrough innovation drives growth even in the most mature businesses. • It can also create huge value in otherwise commoditised markets • Nescaféwill find a new dimension thanks to NescaféDolce Gusto • Combining centralised with decentralised approaches accelerated growth much faster than using either of the two separately. • The quality of the partnership is critical for success 24 NestléInvestor Seminar.