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Nespresso
Flashback
1986 – created as a subsidiary of Nestle.
2014 – Brand has 300 boutiques in 60 countries across the
world.
Turnover – close to $3 Billion.
What has changed ?
Ans:It became global success only after its
Repositioning to high end segment of the
consumer market.
Crafting the Brand Positioning
What is
Positioning?
Positioning of Nespresso
• High end market
• Practically designed coffee machines
• High quality coffee
• Excellent service
• Brand capsules
The three aspects of Brand positioning
• Choosing competitive frame of reference.
Identifying optimal PODs and POPs.
Creating a Brand Mantra.
Competitive frame of reference
Identifying optimal PODs and POPs
Points-of-difference (PODs)
• Attributes or benefits
consumers strongly associate
with a brand, positively
evaluate, and believe they
could not find to the same
extent with a competitive
brand
Points-of-parity (POPs)
• Associations that are not
necessarily unique to the
brand but may be shared with
other brands
For Nespresso
• POP’s
• Quality of Coffee
• Convenience and Ease of
Operation
• Services Offered
• Premium Price
• Product Design
• POD’s
• Product Distribution strategies
• Privileged Community
• InnovativeTechnology
• ProductVariety
• Social Responsibility
Creating a Brand Mantra
• Ultimate Coffee Experience
Brand Club
Club incentives
Means of Distribution
Advertising
Q: Why has Nespresso's
positioning on the consumer
market led to success of the
brand?
Briefly
Unique Selling Points of
Nespresso
Emotional Branding
Good advertising strategy
Q: Will the unique
positioning of Nespresso
enable it to resist new
competition from Jacobs
Douwe Egberts?
Briefly
•No
•source of income.
•More turnover so
More marketing
budget and Less
expensive products.
• Yes
• Segmentation and
exclusivity of
customers
• Widespread markets
• Good customer
relations.
Summary
•Relation between Nespresso’s Success and
its Brand Positioning.
•Crucial elements for crafting a brand
positioning
Disclaimer
Created by Sagar Gondela, IIT Kharagpur,
during a marketing internship,
by Prof. Sameer Mathur, IIM Lucknow.

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Nespresso - Mini Case

  • 2. Flashback 1986 – created as a subsidiary of Nestle. 2014 – Brand has 300 boutiques in 60 countries across the world. Turnover – close to $3 Billion. What has changed ? Ans:It became global success only after its Repositioning to high end segment of the consumer market.
  • 3. Crafting the Brand Positioning What is Positioning?
  • 4. Positioning of Nespresso • High end market • Practically designed coffee machines • High quality coffee • Excellent service • Brand capsules
  • 5. The three aspects of Brand positioning • Choosing competitive frame of reference. Identifying optimal PODs and POPs. Creating a Brand Mantra.
  • 7. Identifying optimal PODs and POPs Points-of-difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands
  • 8. For Nespresso • POP’s • Quality of Coffee • Convenience and Ease of Operation • Services Offered • Premium Price • Product Design • POD’s • Product Distribution strategies • Privileged Community • InnovativeTechnology • ProductVariety • Social Responsibility
  • 9. Creating a Brand Mantra • Ultimate Coffee Experience
  • 10.
  • 14.
  • 16. Q: Why has Nespresso's positioning on the consumer market led to success of the brand?
  • 17. Briefly Unique Selling Points of Nespresso Emotional Branding Good advertising strategy
  • 18. Q: Will the unique positioning of Nespresso enable it to resist new competition from Jacobs Douwe Egberts?
  • 19. Briefly •No •source of income. •More turnover so More marketing budget and Less expensive products. • Yes • Segmentation and exclusivity of customers • Widespread markets • Good customer relations.
  • 20. Summary •Relation between Nespresso’s Success and its Brand Positioning. •Crucial elements for crafting a brand positioning
  • 21. Disclaimer Created by Sagar Gondela, IIT Kharagpur, during a marketing internship, by Prof. Sameer Mathur, IIM Lucknow.