Nespresso, launched as a subsidiary of Nestlé in 1986, evolved from a coffee machine supplier to a prominent player in the high-end coffee capsule market. The brand has established strong consumer connections through high-profile endorsements, premium product offerings, and exceptional customer service, while facing challenges in distribution and competition. Its unique positioning and commitment to quality are seen as key factors in sustaining its market success against competitors like Jacobs Douwe Egberts.

1. NESPRESSO

2. Origin of the brand
Startedasabrandsubsidiaryunder
theSwissgroupNestléin1986.
WiththejointeffortsofEricFavre
andJean-PaulGaillard,thebrand
becamesuccessful.

3. Journey
Startedasasupplier
ofcoffeemachines
butlaterexpandedinto
coffeecapsules

4. Positioning
Highendsegment oftheconsumermarket.

5. Competitive frame of reference
Nespresso
JacobsDouwe
Egberts

6. Distributionfromadistance
Innovatorofcoffeecubes
Practicallydesignedcoffeemachines
Directtoconsumerbusinessmodel
Points of difference

7. Advertisingplatforms
Highquality
PremiumPrice
Tirelesscustomerservice
Points of Parity

8. Securingcoffeequality
Maintaininghighprofitability
Sustainingitsbrandequity
Challenges

9. Distribution channels
Internet MobileServices Boutiques Restaurants
C U
S T O M E R
S

10. 10
Advertisement catchphrase

11. An advertisement starring George
Clooney

12. Brand mantra
Unique,elegantandprestigiousexperience

13. Environment friendly

14. Femininetypeofconsumption inUS
FocusonEspressoinEurope
Expansionofsocialpresence
Current commitments
Buildingdirectrelationshipswithfarmers

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

16. 0 25 50 75 100
HIGH PROFILE BRAND ENDORSEMENTS
HIGH QUALITY OF CAPSULES AND MACHINES
ORIGINAL COMMUNICATION
EXCELLENT SERVICE
Because of…

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

18. Yes, because…
More uniquethanJacobs
Emotionallybranded
Globallypresent

19. No, because…
Similarproducts
0
15
30
45
60
JacobsNespresso
Turnover
Jacobshasmorebudgetforexpansion

20. Summary
INCEPTION
POSITIONING
FRAMEOFREFERENCE
PODsandPOPs
CHALLENGES
DISTRIBUTIONCHANNELS
ADVERTISEMENTS
BRANDMANTRA
CURRENTFOCUS
ECOFRIENDLY

21. Disclaimer
This presentationwascreatedbySimranBansal,Hindu
College,UniversityofDelhi,
duringamarketinginternshipunderProfessorSameer
Mathur,IIMLucknow.