Nespresso was created in 1986 as a Nestle subsidiary. It has become globally successful due to its brand positioning focusing on practical coffee machines, high quality coffee, excellent service, and strong communication. While Nespresso faces competition from compatible capsules and Jacob Dauwe Egberts, its exclusive boutique distribution and brand community have allowed it to maintain differentiation in the market. However, Jacob Dauwe Egberts' larger scale may enable it to erode Nespresso's market through lower pricing and greater advertising investments.

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

3. SSo what
made
Nespresso
so
successful?

5. Now, What is 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. Nespresso is based on several fundamental
criteria
Practical design
High quality coffee
Excellent service
Strong communication

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.

9. BUT…..
The company faces stiff competition from
Jacob Dauwe Egberts, which is currently the
number one coffee company in the world with
a turnover of $4 billions.

10. POINTS OF DIFFERENCE

11. Nespresso distributes its product only through the
online devices, mobile devices or in a one-of-a-kind-
boutique.

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

13. POINTS OF PARITY
Nespresso shares parity in terms of its
quality, service and design.
Other POPs include- R&D, premium price
and design.

16. 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.

17. Will the unique positioning of Nespresso enable it
to resist new competition from Jacob Dauwe
Egberts?
YES, because:
1. Nespresso is more exclusive brand than Jacobs.
2. Nespresso has their markets all over the world as opposed to
Jacobs which is not so widespread.
3. They have better marketing strategy and very strong
communication.

18. • No, 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.

19. 1.About Nespresso
2.Reason for Nespresso’s success
3.Brand positioning
4.Questions

20. DISCLAIMER
Created by Anjali Gupta, Delhi Technological University, during a
marketing internship under Prof. Sameer Mathur, IIM Lucknow