Nespresso was created in 1986 as a subsidiary of Nestle. It was founded by Eric Favre who invented the Nespresso system. Nespresso has successfully positioned itself by focusing on high quality coffee and excellent service delivered through practical coffee machines and unique capsules. It builds brand loyalty through an emotional branding approach that makes customers feel part of an exclusive club with benefits like special offers, a magazine, and partnerships with restaurants. However, its positioning faces competition from Jacobs Douwe Egberts which produces capsules for Nespresso and has more marketing budget and cheaper products, though Nespresso maintains exclusivity through segmentation of customers and widespread markets.