Nespresso was created in 1986 as a subsidiary of Nestle. It has achieved global success through effective brand positioning. Nespresso's positioning involves choosing high-end competitors, identifying distinguishing attributes like exclusive boutique distribution, and adopting a brand mantra of being unique, elegant, and luxurious. This positioning has allowed it to compete against similar coffee capsule brands while facing competition from Jacobs. Nespresso's success is attributed to its high quality premium product, original machine design, strong communication, excellent customer service, and relationship with restaurants.

2. Nespresso was created in 1986 as
a subsidiary of the Swiss group
Nestle
Today Nespresso
is a Global
success!
Nespresso was created in 1986 as
a subsidiary of the Swiss group
Nestle

3. What else?

4. Why is
so
successful
?

5. EFFECTIVE BRAND POSITIONING!!
It is an act of designing a company’s offering and image to occupy a distinctive place in the minds of consumers

6. BRAND POSITIONING
HAS THREE ASPECTS:
•Choosing competitive
frame of reference.
•Identifying optimal
PODs and POPs.
•Creating a Brand
Mantra.

7. It defines which other brands it competes with in the market
COMPETETIVE FRAME OF REFERENCE

8. COMPETITIVE FRAME OF REFERENCE
Nespresso’s unique
brand positioning has
allowed it to keep its
competition like
Tassimo, Senseo’s
Nespresso
compatible capsules
at bay, but still faces
stiff competition
from
Jacob Dauwe Egberts

9. POINT OF DIFFERENCE
Attributes or benefits
consumers strongly
associate with a brand,
positively evaluate,
and believe they could
not find to the same
extent with a
competitive brand

10. POINTS OF DIFFERENCE
Nespresso distributes its product
only through the online devices,
mobile devices or in a one-of-a-
kind-boutique.
The brand has located fully
automated distributers called
Nespresso Cubes in Europe
Airports
Customers buying
Nespresso machines
automatically become
member of the Brand Club.
It cultivates a sense of
belonging to a privileged
community that reinforces
the brand’s positioning.

12. POINT OF PARITY
Associations that
are not
necessarily
unique to the
brand but may be
shared with other
brands

13. POINTS OF PARITY
QUALITY
SERVICE
DESIGN
R&D
PREMIUM
PRICE
DESIGN

14. BRAND MANTRA
Unique, Elegant, Luxurious in experience

17. Why has Nespresso’s repositioning on the
consumer market led to success of the
brand?
• High quality coffee, repositioned at high end market.
• Original design coffee machines.
• Strong communication
• Excellent service to the customers.
• Manufactures its own capsules which added to their overall sales.
• Associates itself with chefs and well-established restaurants.

18. Will the unique positioning of Nespresso
enable it to resist new competition from
Jacob Dauwe Egberts?
It should be able to resist competition from JDE because :-
1. Nespresso is more exclusive brand than Jacobs, positioned at
the high end of the market.
2. Nespresso has a more wide spread market as opposed to
JDE’s.
3. They have good communication and a strong customer base.

19. The competition might turn in favour of JDE because:-
1. Jacobs is also producing capsules which can fit in Nespresso
machine. Since Nespresso’s own capsules were major source
of their income, they are facing tough competition because
of other capsule manufacturers.
2. Jacobs has more turnover than Nespresso which enables
them to invest more money in advertisement and also let
them sell their products at a lower price.
3. Since it’s a merged company, it has the customer base of
both the individual companies.

20. NESPRESSO ANALYSIS OF ITS SUCCESS
BRAND POSITIONING
POPs
PODs
BRAND MANTRA
COMPETITIVE FRAME OF REFERENCE

21. DISCLAIMER
Created by Pooja M, College of Engineering Trivandrum during a
marketing internship under Prof. Sameer Mathur, IIM Lucknow