Nestle Bites Into Chocolate’s $8 Billion Premium Market Essay

Nestle is known as one of the biggest company in the market of the chocolate. But their premium segment Maison Cailler is not very developped and they want to improve the sales from this brand. Nestle has a new strategy for this brand . Nestle wants to use the same approach for Maison Cailler products than Nespresso products when the brand was launched for the luxury home coffee market. Here Maison Cailler is starting small and wants to prevail in the market like with Nespresso in the past.

They want a new packaging for their products with personnalized boxes and they use new flavours for their chocolates like verbena or rasperry. The cocoa used to make these chocolates is also renown because it is from ecuador and this chocolates is particularly researched by the chocolate’s companies. Maison Cailler is a premium chocolate brand so the price of the different chocolates is a little bit higher than the concurrence. Indeed, the price of a 16 pieces of chocolate box is around 16 euros (20 francs) while the box of 30 chocolates is 16 euros!

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It shows that Maison cailler is the high quality for the chocolate. For the place, the online store will generate the bulk of Maison Cailler’s revenue and some sales will come from a boutique in Broc, Switzerland, where the brand is based. But E-commerce is still a new territory for Nestle and not for Lindt because they sell their standard products online. Maison Cailler is not very well known out of Switzerland with only 8 percent of sales coming from abroad and the online store has to help this ignorance out of Switzerland

To promote the brand, Nestle has to create some websites for other countries nos only for switzerland : they did it with a German website to promote around 1500 products. The new Nestle’s finance chief will help Maison Cailler in the promotion of the different products. Maison Cailler can have some problems in the market place. On the One hand, Maison Cailler is well known in Switzerland but not in the other countries: only 8 percent of sales coming from abroad. They have to improve the advertising in the other countries.

Maison Cailler has a reputation of a good quality made but not a very high value of the products. One the Other hand, to break into the luxury chocolate sector, Nestle choses Maison Cailler to sell its premium chocolate and to make profit, Nestle will fill in his deficit of branding at the luxury level. The lack of reputation is detrimental for people who want buy expensive chocolates without a significant luxury branding. Indeed, rich people are ready to pay products for the recognition of the brand.