Nespresso aims to maintain its luxury positioning through exclusive clubs, quality, and in-store experiences. Its goals are to increase awareness, loyalty, and word-of-mouth among target customers. As luxury markets grow, Nespresso must balance exclusivity with appealing to more customers. Its campaign will encourage members to share their experience through a referral program with incentives. Marketing tools include direct mail, magazines, events, and a celebrity endorsement by Penelope Cruz to promote exclusivity and experience. The $58 million budget allocates most funds to the celebrity and sampling to drive membership and sales growth.

2. Overview
Positioned brand as luxurious, elegant, and exclusive,
by:
Premium price point
<<Le Club>> B2C (club-member only)
Quality through best practices
In-store experience
George Clooney
Well established in Europe

3. Marketing - Goals
To maintain high-end positioning
Create awareness among their target
Keep consistent image and brand message
Promote club membership and loyalty, customer
retention
Increase word of mouth recommendations
Communicate Nespresso experience

4. Target

5. Key Issues for Nespresso
As the luxury market grows, it becomes subject
to scrutiny
Luxurification of society - The need to emulate
rich social class
Stay loyal to members yet appeal to masstige
market
Combat imitators with star power and strong
client relationships

6. Campaign Objectives
To encourage word-of-mouth in current consumer’s social
circles
To increase sales of machines and capsules in Nespresso
retailers
To increase foot traffic into Nespresso boutiques
To increase mentions in relevant media
To introduce and promote the referral program
To increase unique visitors to Nespresso.com

7. The Message
Will you share the secret?
Share the unique experience of Nespresso with the
entourage.
As an insider, customer are provided with incentives
to open the Nespresso club to their loved ones.

8. Sssssshhh. The Secret Campaign
Celebrity endorsement: Penelope Cruz

9. Marketing Communication Tools
Direct
Mailer (Golden Envelope)
Referral Program
Point System
Special Collection
Email Blast
Nespresso Magazine

10. Marketing Communication Tools
Print/Digital Magazine
Examples:
The Economist
Harper’s Bazaar
Conde Nast Traveler

11. Marketing Communication Tools
OOH
MallScape
Copley Square,
Prudential,
Outside Saks Fifth Avenue in
NYC

12. Marketing Communication Tools
Promotional
Sampling

13. Marketing Communication Tools
PR
Press Kit

14. Marketing Communication Tools
PR
Spokesperson Management

15. Marketing Communication Tools
Schedule
July August September October November December January February March April May June
Direct Marketing
Email Blast
Mailer
Nespresso Magazine
Digital/Print Magazine
Harper's Bazaar
The Economist
Conde Nast Traveler
OOH
MallScape
Promotional
Sampling
Public Relations
Press Kits
Spokesperson

16. Budget
Total: $ 58 million (0.2% of annual revenue)
Penelope: $20 million (5 years contract)
Sampling: $ 10 million
Direct Postcard: $ 1 million
PR: $ 4 million
Mallscape: $ 8 million
Magazines : $ 10 million
Contingency budget: $5 million

17. Budget
Print Celebrity Endorsement
17% 34%
OOH
14%
Contingency
9%
PR Direct Mail
7% 2%
Promotional
17%

18. Metrics
Increase 45% of revenue ($3 billion) after
communication plan
Budget $58 million

19. Metrics
Number memberships through referrals from direct mail
Number subscriptions from magazines, pass-along rates
Measure sales against last year’s sales
“ “ in local boutiques with or without Mallscape advertisements
Online database of clients
Sampling - the number of machines sold in respective stores
PR - how many reports about Nespresso
How many media mentions with Penelope

20. Conclusion

21. Thank You