Nespresso was introduced in 1976 and creates the perfect espresso cup. It changed coffee from a commodity to a luxury product accessible through easy-to-use machines and personalized service via boutiques and clubs. Nespresso's unique positioning around high quality specialty coffees, technologically advanced machines, and exclusive retail experience has led to its success in capturing the consumer market for premium coffee. However, competition from similar pod-based systems like Jacobs Douwe Egberts could threaten Nespresso's leadership if they can achieve wide distribution.

2. …introduced and patented in 1976 by
an employee of Nestle` , Eric Favre
… creates the perfect cup of espresso
with exquisite crema, tantalising aroma
and full -bodied taste – just like skilled
baristas

3. “Coffee is at the heart of all we do.
Yet consumer pleasure is why we
do it”

4. Products
• Enable anyone to create the perfect
cup of espresso coffee just like skilled
baristas
• Changed the idea of coffee elevating
into a luxury accessible product
• Nespresso personalized the idea of
coffee

6. UNIQUE BRAND POSITIONING
Perfectly shaped
Excellent Quality
Grand Cru Coffees
Technologically sound
& easy-to-use machines
Personalized & Exclusive
service

7. Throughout the world, the Nespresso Boutiques invite coffee
lovers to experience the art of espresso

8. The Nespresso Club:
The Ultimate Coffee Experience
Several Grands Crus are offered to Club
Members in a Limited Edition range.

10. Points of differences (PODs) Points of Parity(POPs)
Product Variety
- Hot
- Coffee blends
Product Pricing
- Expensive
Availability
- Nespresso boutiques
- Online
- Quality Coffee
- Advertising platforms
- Product characteristics
- Convenience

11. Nespresso’s Supply Chain
From the cherry to the cup

12. Nespresso’s Multi-Channels Routes connect consumers all over the world
Magazines

13. Nespresso Sponsors
events to create an
awareness among
its consumers

14. Connecting Multi-Channels routes
offline to online

15. Competitors of Nespresso:
•Coffee Experts
(Illy and Lavazza)
•Coffee Bar Experts
(Starbuck’s and Costa
Coffee)

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

17. • adapt to consumer needs and desires
• smart but easy-to-use machines
• high Skilled employees
• high-quality coFee, excellent service, strong and
original communication
• Nespresso consumers automatically become the
members of the brand club

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

19. Yes!!
best-in-class service
direct-to-consumer
mode
wide Market reach
luxury brand
No!!
Jacob’s capsules can
fit in Nespresso’s
machine
High Investment in
advertisements

20. SUMMARY
History of Nestle` Nespresso
Products of Nespresso
Unique Brand Positioning
Reasons behind Success
Possible future threats

21. DISCLAIMER
Created by Neha Byadwal ,
IIT Kanpur, during a
Marketing Internship with
Prof. Sameer Mathur , IIM
Lucknow