Nespresso was created in 1986 as a subsidiary of Nestle. It was founded by Eric Favre. Nespresso has achieved success through its positioning as a premium coffee brand offering high quality coffee and excellent service 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 through benefits, limited editions, and engagement with innovations. However, its positioning faces competition from Jacobs Douwe Egberts, which produces Nespresso capsules and has greater resources for marketing and cheaper products.

1. NESPRESSO
WHAT ELSE?
CRAFTING THE BRAND
POSITIONING

2. •NESPRESSO WAS CREATED IN 1986 AS A
SUBSIDIARY OF THE SWISS GROUP
NESTLE .
•ERIC FAVRE IS THE FOUNDER AND
INVENTOR OF NESPRESSO .

4. How to determine
positioning?

5. Choosing A Competitive Frame Of Reference
Identifying Competitors
Analyzing Competitors

8. POINTS OF DIFFERENCE
 Desirable To Consumer
 Deliverable by the Company
 Differentiating from Competitors
POINTS OF PARITY
Category Points Of Parity
Correlational Points Of Parity
Competitive Points of Parity

10. DIFFERENCE BETWEEN POP AND POD
• EXAMPLE : HYUNDAI CARS

13. Why has Nespresso’s
repositioning on the
consumer market
led to the success of
the brand ?
?

14. Practically Designed Coffee Machines
High Quality Coffee
Excellent Service
Strong and Original Communication
Nespresso Capsules

15. Emotional Branding
o Nespresso Customers become members of brand club
o Benefits from exclusive offers and limited series
o Informed of Innovations and Creations
o Magazine Subscription
o Associating with well established restaurants

16. MANTRA

17. Will the Unique positioning of Nespresso enable it to resist new competition
from Jacobs Douwe Egberts ?

18. Jacobs produces Capsules for Nespresso
which is its major source of income
Jacobs has more turnover
 More marketing Budget
Less Expensive Products

19. SEGMENTATION AND EXCLUSIVITY OF CUSTOMERS
WIDESPREAD MARKETS
GOOD CUSTOMER RELATIONS

21. DISCLAIMER
This Presentation was created by VEDANT HAMIRWASIA , MIT
MANIPAL During an Internship under Prof Sameer Mathur , IIM
Lucknow