Uploaded byElaine Lorent
Nespresso "What Else?" - Marketing Plan
The document provides a comprehensive analysis of Nespresso's business strategy, market trends, and competitive landscape in the coffee industry. It highlights key demographics, marketing objectives, and critical issues the company faces, including brand positioning and consumer awareness. The action plan includes initiatives to increase product trials and expand market share from 7% to 12% by 2016 through targeted marketing efforts and new geographic market entries.
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Nespresso "What Else?" - Marketing Plan
- 1. Eli Hua Jenny Kuei ElaineLorent Haoran Fan Grace Liu
- 2. COMPANY BACKGROUND • Overview(Grace) • Nespresso Analysis (Haoran) • Target Market (Jenny) • Marketing Strategy(Eli) • Action Plan(Eli, Elaine) • Financial Analysis(Elaine) • Measurements(Elaine)
- 3. THE COFFEE INDUSTRY •Consumers aged 60 and plus • Consumers aged 40 to 59 • Consumers aged 25 to 39 • Consumers aged 13 to 24
- 4. COFFEE PRODUCTS RoastedCoffee Single –Cup Coffee Instant Coffee Ready-to- Drink Coffee
- 5. MARKET TREND OFCOFFEE • 83% of adults drink coffee in the U.S. • Hispanic Americans have the highest coffee consumption • At-home consumption • Demand for convenience due to fast- paced lifestyle • Increase in environmental awareness • Health benefits of coffee • Premiumization is a key driver • Quality drives profitability
- 6. SINGLE CUP COFFEEINDUSTRY • 32% of US household own a single-cup brewer • Market growth • The single-cup coffee category plays a significant role in the growing coffee market
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- 11. ALTERNATIVES • Tea • Increasingnumber of the U.S. population drinking tea rather than coffee • Healthier choice • Larger choices in term of tastes and preference
- 12. NESPRESSO ANALYSIS • Customers Female(60%), Male (40%) Age: 35-49 High income High social class High purchasing power • Product Finest green coffee Selected Capsules and innovative machines
- 13. NESPRESSO ANALYSIS • Service Directrelationship Nespresso Club • Distribution Official website Boutiques Well-known Department Stores • Market Share 7% in U.S. market Contributes 15% to global sales
- 14. SWOT Analysis strength • Hign-quality coffee •Variety and innovation • Genuine coffee machines • Energy saving and environmentlly friendly • Strong customer service • Nespresso Boutiques • Perfect B2B solutions • Luxury image weakness • Expensive pricing • High costs • Not to go service • Limited distribution opportunity • Ethical and sustainble business trend • Coffee becomes a more and more popular drink • Single-cup coffee plays an increasingly important role in total coffee market threat • Out of home • Challenges from other drink alternatives • Challenges from other coffee brand competitors • Coffee consumption habit in US market • Coffee beans supply
- 15. KEY TO SUCCESS •The market for single serve coffee is at growth phase. • U.S. consumers seek after high-quality and sustainable coffee. • The consumption at home increases these years. • Even though the competition in the one cup-coffee industry is intense, Nespresso targets a market that is really narrow and high standard. • Nespresso communicate an image of exclusiveness and luxury lifestyle.
- 16. CRITICAL ISSUES • Enhancethe brand essence and shift the positioning in consumer’s mind. • Promote the quality and features of having espresso and its unique experience. • Increase brand awareness by higher exposure in more aspects. • Acquiring the target markets that have not been reached, and convert them into users. • Enlarge the distribution of Nespresso in other American cities that welcome a concentrated number of the core target group. • Increase the trial of Nespresso coffee within our target group.
- 17. MARKETING STRATEGY • MarketingObjective: Increase the U.S. market share from 7% to 12% by 2016 by raising brand preference and expanding the market. • Financial Objective: 2012 2013: 9.1% growth 2013 2014: 15% growth = 4.9billion of revenue
- 18. TARGET - DEMOGRAPHIC •35-49 years old middle to upper middle class male and female who have attained bachelor’s degree or more. • Annual Household income: $60,000+
- 19. DEMOGRAPHIC - 35-64DISTRIBUTION • In 2010, there are 31.6 M of males and 32 M of of females in age 35-49 • Mostly located in East and West coasts, Northeast
- 20. DEMOGRAPHIC – EDUCATIONATTAINMENT
- 21. DEMOGRAPHIC – POTENTIALMARKET
- 22. PSYCHOGRAPHIC • Busy BusyBusy! • Seldom spend time cooking and go mid-high end restaurants • Active in social events, visit museums, galleries and concerts • Sports fans and love outdoor activities – Skiing, cycling, tennis, golf • Participated in financial investment and charity • Only watch certain programs on TV- financial news, sports • Online shopping after work • Travels a lot for fun and for work, join airline memberships • Shopping preferences • High-end, luxury brand retail/department stores • Crate & Barrel, Barnes & Noble, Bloomingdales, Nordstrom, Ann Taylor • Coffee to them are energy booster . Also it’s a little treat for relaxation at work and to spend leisure time alone or with colleagues/clients
- 23. MEDIA EXPOSURE • TV •Spending 15-18.8 hours per week. • Financial/Sports programs. • Radio • 8% above average in radio consumption (6.5-6.8 hours/week) • Print • 4% acove average consumption in print media • magazines, newspapers, travel/business/finance publications • Enjoy reading • Internet • 88.8% of Gen X are monthly internet users. 29-34 hours/weak. • 74.5% using social media at least once/month (Facebook 65.6%, LinkedIn 41%, Google+ 29%, Twitter&Pinterest 10%), and 28% don’t use social media • Mobile • 63% owns smartphones and 41% owns tablets • 80% makes consumptions online.
- 24. START WITH CONSUMER “Iam leading an active and busy lifestyle in the city and I love it. To escape, I enjoy sharing warm and relaxing moments with the people I love. I highly value quality in the products I buy and I am willing to pay for it. I fully enjoy treating myself with the special luxuries that make life better and make me feel unique and privileged.”
- 25. LET’S EXAMINE OURSELVES •Positioning For people belong to higher social classes who distinguish themselves by what they possess, Nespresso delivers a strong commitment and dedication to serve and accompany their customers into their ultimate coffee experience. • Tone & Manner Exclusive, uniqueness, privileged, elegance, inspirational
- 26. OUR BARRIER We have.. Premiumcoffee Aspirational image Luxury experience/atmosphere BUT.. People don’t know how good Nespresso is! BECAUSE… They never try it!
- 27. IDEAL LOCATIONS • Newgeographic markets chosen based on: • Closeness to our target group caracteristiques • Density of the population • Purchasing power • Final decision: Baltimore, MD; Hartford, CT; Whashington DC; Houston, TX; °Opening repartition within two years to share the burden.
- 28. ACTION PLAN Goal Increase trialto make people believe we are the best! Our Acts • Nespresso Experiential Tour • Expand boutiques in new places • Reach target audience in their “favorite” places • Coop with other brand/Sponsor events that fit consumer lifestyle
- 29. NESPRESSO EXPERIENCE TOUR •Raise awareness (visibility / Mobile-capsule stores) & Brand preference (trial) • Communication: promotional sales; advertising; PR; direct marketing • Multiple ways to get access to the trial • Incentive to buy our products later on • Agenda: from beginning of October to the end December
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- 31. REACH IN THEIRFAVORITE PLACES • Airport • VIP Lounge • On board (First & Business Class) • Hotel & Resorts • Hotel rooms • High end vacation resorts
- 32. COOP WITH OTHERBRAND/SPONSOR EVENTS • Cultural • Museum lounge • Exhibition cooperation • Sport • ATP Tennis Tours
- 33. MEDIA TIMELINE –2014
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- 35. EFFECTIVENESS MEASUREMENT • Trialmeasurement • Comparison sample distributed and return on promotion sales • Sales metrics • Number of sales per new boutiques (><existing stores) • Increase in overall sales + growth • Further: instill more pressure on the best sales channel • New customers acquisition • Subscription to the Nespresso Club • Conversion through our promotional sales • Communication • Pre-test: focus group • Post-test: public relation, social media, direct marketing, advertising (Billboard and print)
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Editor's Notes
- #18 Nespress2012 o contribution margin in January 2012 was of $3,9 billion. In January 2013, the brand raised it to $4.3 billion. It means that the brand experimented a growth of 9.1% between and 2013. If the brand does not change its marketing strategy, they will have an estimated $4,687,000,000 in total sales in January 2014. However, we expect that if the brand follows the strategy stated below, the revenue will reach a desirable forecast of $4,945,000,000 within the year by pushing the growth up to 15%.