Nespresso Marketing Analysis

‘THE PERFECT CUP OF COFFEE, TIME AFTER TIME, CUP AFTER CUP’

TURNOVER$ 3 BILLION !!

4%MACHINES

HOW?

BRAND POSITIONING

VALUE PROPOSITION

SMART MACHINE

CAPSULES

AffordableDesignAppropriate SizeTechnology

Best QualityVariety of flavors

Experience

Perfect CoffeeLuxury ImageLifestyle

High Quality CoffeeExcellent Service

Innovative & Unique Coffee MachinesBrand ClubsStrong & Unique

Communication &Distribution Channels

HIGH QUALITY COFFEE & EXCELLENT SERVICE

SELECTED DISTRIBUTION CHANNELS

ONE-OF-A-KIND BOUTIQUES

GEORGE CLOONEY

HIGH-PROFILE CELEBRITY ENDORSEMENTS

NESPRESSO CUBES AT AIRPORTS

COMPETITORS?

MADE CAPSULES COMPATIBLE WITH NESPRESSO MACHINES THUS STEALING THEIR MARKET SHARE

ACCUSED NESPRESSO THAT ITS ALUMINIUM CAPSULES ARE AN ENVIRONMMENTAL MENACE

COMPETITORS HAVE MULTIPLE AND EASILY ACCESSIBLE DISTRIBUTION CHANNELS

WHY HAS NESPRESSO’S REPOSITIONING ON THE CONSUMER MARKET LED TO SUCCESS OF THE

BRAND?

oPractically designed coffee machinesoHigh Quality CoffeeoHad monopoly in the market before a

competitor made capsules at lower pricesoTarget MarketingoAdaptation to customer’s needs and desiresoHigh-profile celebrity endorsements

Will unique positioning of Nespresso enable it to resist new competition from Jacobs Douwe Egberts?

EXCLUSIVE BRANDWIDESPREAD MARKETING

BETTER MARKETING STRATEGYSTRONG COMMUNICATIONS

PRODUCES CAPSULES COMPATIBLE WITH NESPRESSO MACHINES

LOWER SELLING PRICEMORE BUDGET

About NespressoReasons behind Huge SuccessBrand PositioningValue PropositionPOPs and PODsCompetitorsQuestions

DISCLAIMERCreated by Parul Kaushal, NSIT Delhi during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.