Nespresso, created by Nestle in 1986, has evolved through significant milestones including the introduction of the Nespresso Club and innovative products, while maintaining a strong brand essence centered on luxury and quality. Despite facing market challenges from competitors producing compatible capsules, Nespresso has focused on innovation, sustainable practices, and unique customer experiences to enhance its position. The brand's loyalty and premium image may help it resist new competition, although it faces challenges in revenue sources and capital compared to rivals.

2. HISTORY AND EVOLUTION
1976: Eric Favre, an employee of Nestle, invented, patented and
introduced the Nespresso system.
1986 : Nespresso is created as a subsidiary of Swiss group Nestle.
1991: Introduction of the Nespresso Club concept.
1995: Introduction of recycling in Switzerland.
2000: First Nespresso boutique in Paris.
2003: AAA Sustainable Quality Program.
2006: George Clooney becomes the brand ambassador of
Nespresso.
2010: Nespresso opens the 200th boutique in Shanghai.
2012: Achieves their 75% recycling capsule objective one year
before time.

3. BRAND ESSENCE
A QUEST
FOR
EXCELLENC
E
A
SENSORIAL
EXPERIENC
E
DEDICATION
TO QUALITY,
STYLE AND
SERVICE TO
DELIGHT THE
CUSTOMERS

4. STRATEGY

5. PRODUCT LINE

6. VALUE PROPOSITION

7. KEY BRAND POSITIONING
STEP 1: COMPETITVE FRAME OF REFERENCE
Nespresso has over the time analyzed and gathered information of its
competitors strengths, weaknesses, strategies and objectives, for its better
performance in the consumer market.
A
PERCEPTU
AL MAP
OF SOME
OF THE
WELL-
KNOWN
COFFEE
BRANDS.

8. STEP 2:OPTIMAL POINTS OFDIFFERENCE AND POINTS OF
PARITY
POINTS OF
DIFFERENCE:
*Unique, elegant and luxurious
experience
*Great in shop experience with
Nespresso Boutiques and their
fully automated Nespresso Cubes
*Sense of belonging to their
members with their Nespresso
Club
*Unique and exclusive distribution
*Great variety of Grand Chu
coffee
*Sustainable, because of their
AAA campaign
POINTS OF PARITY:
*Product characteristics like
high quality, service an design
*Premium pricing
*Consistent innovation and R&D
*Convenience

9. STEP 3:CREATING THE BRAND MANTRA
The Brand
Mantra of
Nespresso
highlights it
points of
difference,
and
communica
tes, its
ultimate
goal of
service.

10. ONE-OF-A-KIND BOUTIQUES
These boutiques invite the
coffee lovers to indulge in
their “ultimate coffee
experience”.

11. THE NESPRESSO CLUB
•8 Million members already.
• Benefits of exclusive offers and
limited series, along with a
magazine subscription.

12. BRAND AMBASSADORS
It maintains
its classy
and elegant
brand
image by
having
celebrities
like George
Clooney
and
Penelope
Cruz as its
brand
ambassado
rs.

13. UNIQUE CHANNELS OF DISTRIBUTION
Nespresso
has been
using various
channel to
distribute its
products and
reach out the
maximum
number of
target
audience.

14. UNIQUE CHANNELS OF COMMUNICATON
Nespresso has been using various channels to reach its targets, the prints ads, TV
commercials , and organizing various events for consumer awareness.

15. One of the most watched TV commercial of Nespresso.

16. COMPETITION AND CHALLENGES
Nespresso has
been losing its
market share since
2010, after the
competitors started
making Nespresso
machine compatible
capsules.

17. INNOVATION AND OPTIMISATION
In February 2014
Nespresso introduced its
new line of products, the
Vertouline with many
variants.
By 2015 80% of
capsules were
getting recycled.

18. Why has Nespresso’s repositioning
on the consumer market led to the
success of the brand ?
•Impactful catering of demands and needs of the
consumers
•Their club providing exclusive treatment and
privileges to customers
•Practically designed coffee machines for both homes
and offices
•Premium quality of coffee with many variants
•Luxurious experience for customers at the special
boutiques
•Strong communication strategies
•Unique and easy to access distribution channels

19. Will the unique positioning of Nespresso
enable it to resist new competition from
Jacobs Douwe Egberts ?
YES,
• Owns the loyalty of its
long time customers
• It is difficult to replace a
luxury brand like
Nespresso
• It is working its way to
regain its position in
market with innovation and
optimization
• Wider market reach than
its competitors
NO,
 The major revenue
source of the company
i.e. the capsules have
now been replaced
 Jacob Douwe Egberts
owns more capital and
can invest more than
Nespresso in
advertising, innovation
and promotion.

20. SUMMARY

21. DISCLAIMER
Created by Anushree
Ghurka, during a
marketing internship
by PROF. SAMEER
MATHUR, IIM Lucknow.