Nespresso is a subsidiary of Nestle founded in 1986 with over $3 billion in annual turnover. It operates in over 60 countries through 300 boutiques. Nespresso differentiates itself through high-end positioning and luxury experiences in its boutiques. It offers a variety of coffee options and builds long-term relationships through personalized attention. Nespresso has maintained its unique positioning against competitors like Tassimo through points of parity and difference. It distributes through its online platform and boutiques, known for their brand experiences. While aluminum capsules received criticism, Nespresso addressed ecological concerns through collaboration.

2. HISTORY & FACTS
A subsidiary of the Nestle group
Started in 1986
Turnover has reached $3 billions
Has a presence in more than 60 countries
with over 300 boutiques

3. It bet on a high end positioning and luxury
experiences
It’s highly convenient coffee machines have made
it extremely popular amongst its largest target
segment – affluent busy urban people
Large variety of options for consumers to choose from – a
choice for everyone
Personalised attention in its stores and targeted offers, helping
build long lasting relationships
HOW DOES IT
DIFFERENTIATE ITSELF?

4. POSITIONING
• Determining a competitive frame of reference
• Identifying Points of Difference (POD) and Points of Parity (POP)
• Sticking to a brand mantra

5. COMPETITIVE FRAME OF
REFERENCE
Nespresso’s unique brand positioning has allowed
it to keep its competition like Tassimo, Senseo’s compatible
capsules at bay
However the company faces stiff competition from
Jacobs Douwe Egberts, which is currently the number one
coffee company in the world with a turnover of $4 billion

6. POINTS OF PARITY AND
DIFFERENCES

7. POINTS OF PARITY AND
DIFFERENCES

8. THE BRAND MANTRA

9. THE PRODUCTS

10. CHANNELS OF DISTRIBUTION
Nespresso distributes its products through
the its online platform, more devices or its
one-of-a-kind boutiques

11. THE NESPRESSO BOUTIQUE
EXPERIENCE

12. BRAND POSITIONING
Customers buying Nespresso machines automatically become
members of the Brand Club. Thus cultivating a sense of
belonging to a privileged community that reinforces
the brand’s positioning

13. ADVERTISEMENT STRATEGY

14. ECOLOGICALARGUMENTS
The Nespresso capsules heavily use aluminium,
which made it unpopular amongst its consumers,
most of whom are extremely aware of ecological impacts.

15. BUT, NESPRESSO REMEDIED IT

16. ECOLABORATION

17. Why has Nespresso’s repositioning on
the consumer market led to success of
the brand?
• Practically designed coffee machine
• High quality coffee.
• Strong and original communication
• Excellent service to the customers.
• Manufactures its own capsules which added to their overall sales.
• Very good advertising strategy.
• Associates itself with chefs and well-established restaurants.

18. Will the unique positioning of
Nespresso enable it to resist new
competition from Jacobs Douwe
Egberts?
• Nespresso is more exclusive brand than Jacobs.
• Nespresso has their markets all over the world as opposed
to Jacobs which is not so widespread.
• They have better marketing strategy and very strong
communication

19. Will the unique positioning of
Nespresso enable it to resist new
competition from Jacobs Douwe
Egberts?
• Nespresso is more exclusive brand than Jacobs.
• Nespresso has their markets all over the world as opposed
to Jacobs which is not so widespread.
• They have better marketing strategy and very strong
communication

20. SUMMARY
ABOUT NESPRESSO
PORs and PODs
POSITIONING
PRODUCTS
CHANNELS OF DISTRIBUTION ECOLABORATION

21. DISCLAIMER
CREATED BY P V S VAMSI KRISHNA, NSIT DURING MARKETING INTERNSHIP
UNDER PROF.SAMEER MATHUR, IIM LUCKNOW