Nespresso has succeeded due to its brand positioning strategy. It chose coffee pods as its competitive frame of reference, establishing points of difference like exclusivity and customer experience, as well as points of parity like convenience. Nespresso also uses the emotional brand mantra of "Ultimate Coffee Experience" and allows customers to join an exclusive club. While JDE produces pods compatible with Nespresso machines, Nespresso has greater market share and exclusivity, so it will likely resist competition from JDE despite their entry into the market.
10. Why has Nespresso’s repositioning on
the consumer market led to success of
the brand?
Mainly because of 3 factors:
1)Chose a perfect competitive frame of reference
2)Established it’s Points of Parity and Points of
Difference
3)Effective Brand mantra.
How ??? Let’s See…
11. 1.
Competitive frame of Reference defines which other
brands a brand competes with and which should
thus be a focus of analysis.
• Identify Competitors
• Analyze Competitors
12. 2.
Points of Difference
1) Exclusivity as a Brand
2) Customer Experience
Points of Parity
1) Convenience
2) Product characteristics
20. Jon Snow may know nothing!
But you know..
• What Brand Positioning is!
• The reason behind Nespresso’s success
• And If JDE can outgrow Nespresso!!
21.
22. Disclaimer
Created by Rishikesh.M, Mahindra École Centrale Hyderabad,
during a Marketing Internship by Prof. Sameer Mathur,
IIM Lucknow.
Editor's Notes
Hello people,Today I am going to explain a bit about brand positioning throught the nespresso case study,I am a coffee addict myself so it might be one of the factors that led to me chose this case study, and btw I am Rishikesh
Before we move on, I want to assure about the work I put into it,thanks.
Positioning is the act of designing company’s offering and image to occupy a distinct place in the minds of target market. While that is true ,Some marketers have proposed a less structured approach that is telling the story of the brand
There are 5 elements to telling the story of a brand. First one is the brand story in terms of words and metaphors, Nespresso was built to create a rich,elegant and unforgetfull experience while having coffee.
We know to tell a story there has to be a way to communicate and so….. the 2nd one …..that is expression for the brand or in what way it communicates with the target market
The 3rd one is the way in which the story is expressed experientially, for example through a Tv ad of nespresso which engages our eyes, and ears or Taste trips which involves all the 5 senses.
The 4th one being the way consumers engage with the brand over time and touch points where they come into contact with it. Be it with your friends or family, morning or evening, at home or outside your home.
Last but not the least….Every brand created ……..believe’s to fulfill a role in consumers life, Nespresso believes it can be your alone time partner , reading time parter ,working time partner ……whatever you want it to be.
Now ,Lets answer few case study related questions, to answer it I have applied the structured approach of brand positioning which you will understand in the coming slides.
Now to anser this question its important to remember the basic 3 points about structured way of brand positioning ………chosing a competitive frame of refrence……Identify points of difference and points of Parity and finally define a brand mantra…..i’ll discuss about them in little detail in next few slides
We can identify competition through two categories ,Industry competition provides close substitute for our products, and market competition satisfies the same customer needs…and then analyze the competitors real and perceived strengths and weakness.
Points of difference are attributes or benefits that consumers believe they could not find to the same extent with the comepititor,while points of parity are attributes or benefits that are not unique with the brand but can be found with competitors as well.
A brand mantra is a expression of heart and soul of the brand in words. Role of Brand mantra is to guide through all the nuances of marketing.
Emotional branding is to emotionally connect with the customers….. Few perks of the Nespresso club are Exclusive offers, and members are informed of innovations and creations.Nespresso cultivates a sense of belonging to a privileged community which inturn reinforces the brand’s positioning.
I’ll tell you few perks of these great innovation:
The cube provides state of art personalized shopping experience
In Boutique : The club member can shop at their own pace and checkout without staying in the queue, this uses a rfid technology.
The App: Notifies you with various aspects of Nespresso machines which can be connected via Bluetooth.
Ecolaboration : lets you recycle coffee pods
I’ll tell you few perks of these great innovation:
The cube provides state of art personalized shopping experience
In Boutique : The club member can shop at their own pace and checkout without staying in the queue, this uses a rfid technology.
The App: Notifies you with various aspects of Nespresso machines which can be connected via Bluetooth.
Ecolaboration : lets you recycle coffee pods
JDE is a bigger company with huge capital compared to Nestle’s Nespresso, this may help JDE pour more into advertising and marketing and may take the lead
Nespresso’s customers are loyal and emotionally connected to the brand. Even though JDE has more capital, Nespresso has more market share which will be tough to out grow,
TO summarize what I have said , we now know the elements and factors of Brand positioning,How nespresso succeded and its competition with JDE.
Thank you so much for patiently listening to my views. It really means a lot.
The presentation was done under the guidance of Prof.Sameer mathur ,IIm lucknow and this is Rishikesh signing off.
