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The
Nespresso
Success
Story
• Created in 1986
• Subsidiary of the Swiss Group, Nestlé
• Initially a supplier of Coffee Machines
• Repositioned to the high-end
segment to become a global success
• $3 Billion Turnover
• Present in around 60 countries with
more than 300 Boutiques
Some Facts
Generating Revenue through Nespresso Pods
● Having a long lasting Customer
relationship with the Nespresso Club
● Association with well-established restaurants
Points of Difference (PODs)
● Unique, elegant, & Luxury Experience
● Nespresso Brand Club
● Great in-shop experience at Nespresso
Cubes
● Developed & Diversified Distribution
Channel
● Variety of Coffee Choices
Points of Parity (POPs)
● High Quality Coffee
● Premium Price
● Research & Development
● Product Characteristics
● Convenience
Distribution Channels
Nespresso Boutiques
e-Commerce Portal
Retailers
Mobile Devices
Brand Mantra
Ultimate Coffee Experience
Ultimate
Coffee
Experience
- Serves as the Emotional Modifier
- Serves as the Descriptive Modifier
- Serves as the Brand Function
Brand Ambassadors
Why has Nespresso’s repositioning on the consumer market
led to the success of the Brand?
● Good communication channels
● High Quality Coffee
● Highly targeted marketing campaigns
● Making the brand Desirable to the consumer
● Setting up Boutiques and Nespresso Cubes
● Association with well-established restaurants
● High Profile Brand Ambassadors
Will the unique positioning of Nespresso enable it to resist
new competition from Jacobs Douwve Egberts?
● No, Since Jacobs Douwve Egberts (JDE) has more revenue to market themselves.
● No, Since JDE will be selling the capsules that fit into the Nespresso machines at a lower rate.
● Yes, Since Nespresso has a global presence and a good distribution channel in place.
● Yes, Since Nespresso is a far more exclusive brand than JDE
Recommendations
● Establish more growth in the Capsule Market
● Introduce more coffee flavors
● Introduction of Consumer Loyalty Program
● Work on Cultural Branding
● Induce the concept of Emotional Branding in
their marketing campaigns.
Summary
Disclaimer
Created by Mehul Sharma, Chitkara University during a Marketing Internship by
Prof. Sameer Mathur, IIM Lucknow.

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Nespresso case study

  • 1.
  • 3. • Created in 1986 • Subsidiary of the Swiss Group, Nestlé • Initially a supplier of Coffee Machines • Repositioned to the high-end segment to become a global success • $3 Billion Turnover • Present in around 60 countries with more than 300 Boutiques Some Facts
  • 4.
  • 5. Generating Revenue through Nespresso Pods
  • 6. ● Having a long lasting Customer relationship with the Nespresso Club
  • 7. ● Association with well-established restaurants
  • 9. ● Unique, elegant, & Luxury Experience ● Nespresso Brand Club ● Great in-shop experience at Nespresso Cubes ● Developed & Diversified Distribution Channel ● Variety of Coffee Choices
  • 11. ● High Quality Coffee ● Premium Price ● Research & Development ● Product Characteristics ● Convenience
  • 15. Ultimate Coffee Experience - Serves as the Emotional Modifier - Serves as the Descriptive Modifier - Serves as the Brand Function
  • 17. Why has Nespresso’s repositioning on the consumer market led to the success of the Brand? ● Good communication channels ● High Quality Coffee ● Highly targeted marketing campaigns ● Making the brand Desirable to the consumer ● Setting up Boutiques and Nespresso Cubes ● Association with well-established restaurants ● High Profile Brand Ambassadors
  • 18. Will the unique positioning of Nespresso enable it to resist new competition from Jacobs Douwve Egberts? ● No, Since Jacobs Douwve Egberts (JDE) has more revenue to market themselves. ● No, Since JDE will be selling the capsules that fit into the Nespresso machines at a lower rate. ● Yes, Since Nespresso has a global presence and a good distribution channel in place. ● Yes, Since Nespresso is a far more exclusive brand than JDE
  • 19. Recommendations ● Establish more growth in the Capsule Market ● Introduce more coffee flavors ● Introduction of Consumer Loyalty Program ● Work on Cultural Branding ● Induce the concept of Emotional Branding in their marketing campaigns.
  • 21. Disclaimer Created by Mehul Sharma, Chitkara University during a Marketing Internship by Prof. Sameer Mathur, IIM Lucknow.