Case Study Analysis-Nespresso

1. WOULD YOU CHANGE ANYTHING?

2. HOW DID IT COME TO LIFE ?
• Created in 1986 as a subsidiary of NESTLE GROUP
• Started as a supplier to coffee machine market
• Repositioned to HIGH END MARKET

3. LET’S UNLOCK ITS SECRET
BRANDPOSITIONING

4. HOW DID THEY DO IT?
• CHOOSING COMPETETIVE FRAME OF REFERENCE
• IDENTIFICATION OF POINTS OF DIFFERENCE AND
POINTS OF PARITY
• BUILDING BRAND MANTRA
• ESTABLISHING BRAND POSITIONING

6. -Target Audience-Premium Segment
-Emphasis on Product performance
and Service

7. POINTS OF DIFFERENCE
• Practical Design and Top of the line service
• Effective Communication through Marketing Channels
• High Quality Coffee

8. WHAT ELSE?
•NESPRESSO CUBE(Marketing)
•Nespresso Boutique (Service)
•Pick Up Centre for Pods(Account for
92% of turnover)
•Nespresso Club(Exclusivity)

9. POSITIONING ON THE
PERCEPTUAL MAP

10. POINTS OF PARITY
•Premium offering
•High Quality Coffee
•Home Coffee Machine Makers

11. BRAND ENORSEMENTS
•George Clooney for EUROPEAN
Market
•Penelope Cruz for US Market
•Resonates with the BRAND
MANTRA

12. BRAND MANTRA
•CLASS
•ELEGANCE
•PREMIUMNESS
•AUTHENTICITY
•SERVICE

13. -Well, we recycle them!
-What about the pollution
they do ?

15. LET’S SEE WHO GOT THE PODS!
•Competition from-JACOBS DOUWE
EGBERTS($4Billion turnover)
•PODS being made by other brands
•PODS that make TEA, HOT
CHOCOLATE

16. CRITICAL ANALYSIS
• Why has Nespresso’s repositioning on the
consumer market led to the success of the brand?
• Will Unique positioning of Nespresso enable it to
resist new competition from Jacobs Douwe
Egberts?

17. RESPOSITIONING-SUCCESS?
• Acquisition of unmet market needs(Premium Home
Coffee Machines)
• Practically Designed machines and pods
• Extended exclusive after sales services
• Strong marketing tools and channels with excellent
choice for brand endorsements
• Marketing by associating(Up-Scale dine-in)
• Originality-Conceived the idea of pods

18. COMPETITION-WILL THEY
SURVIVE?
• Yes,
• Loyal Customer Base-CLUB MEMBERSHIP
• Premium Coffee-Essence of PODS
• More Brand Equity than the rest
• More Market Acquisition
• Originality-People associate with it
• Excellent After Sales Service

19. NO,
• Pods are increasing being made by other
manufacturers
• JACOBS DOUWE EGBERTS has a larger portfolio
and has successfully started making pods that fit
in NESPRESSO’S machines
• The machines were already outsources in the first
place, so the technology is not exclusive
• Tea and Hot Chocolate are not provided by
NESPRESSO

20. SUMMARY
•Origination
•Brand Positioning
•POD & POP
•Brand Endorsement
•Environmental Concerns
•Competition

21. DISCLAIMER
Created by Sumeet Duggal, Manipal
University Jaipur, during a Marketing
Management Internship under
Prof. Sameer Mathur, IIM Lucknow