Nespresso was created in 1986 as a Nestle subsidiary and has grown to $3 billion in annual turnover. It has over 300 boutiques globally as of 2014. The brand found success through high-end positioning in the coffee market. It cultivated an exclusive community and only distributed through boutiques and online. After repositioning to target high-end customers with exclusive hospitality and brand associations, Nespresso became a global success. Maintaining this unique positioning will help Nespresso resist new competition, but it could also expand its reach and target market. Repositioning plays an important role in marketing strategy.

2. CREATED IN 1986 AS A SUBSIDIARY OF THE SWISS GROUP NESTLE

3. TODAY THE NESPRESSO TURNOVER TOTALS CLOSE TO $3
BILLION.
AS OF 2014 , THE BRAND HAS MORE THAN 300 BOUTIQUES IN
60 COUNTRIES ACROSS THE WORLD.

4. THE SUCCESS OF THE BRAND HAS
BEEN DUE TO A UNIQUE
POSITIONING IN THE COFFEE
MARKET , ESPECIALLY ITS CHOICE OF
PLACING ITSELF ON THE HIGH – END
MARKET.

5. NESPRESSO CULTIVATES A
SENSE OF BELONGING TO A
PRIVELEGED COMMUNITY
THAT REINFORCES THE
BRAND’S POSITIONING.

6. HOW WIDE IS THE BRAND’S
REACH?

7. NESPRESSO DISTRIBUTES ITS PRODUCTS ONLY FROM A DISTANCE
THROUGH THE INTERNET AND MOBILE DEVICES , OR IN ONE –
OF A KIND BOUTIQUES.

8. WAS THE BRAND’S SUCCESS
A MERE LUCK?

9. IT WAS ONLY AFTER THE
BRAND REPOSITIONED
ITSELF THAT IT
BECAME A GLOBAL
SUCCESS .

10. WHY HAS NESPRESSO’S
REPOSITIONING IN THE
CONSUMER MARKET
LED TO THE SUCCESS OF
THE BRAND ?

11. POSITIONING IS THE ACT OF DESIGNING A COMPANY’S OFFERING AND IMAGE
TO OCCUPY A DISTINCTIVE PLACE IN THE MINDS OF THE TARGET MARKET.

12. BRAND
REPOSITIONING IS
DONE IN
• CHOOSING A COMPETITIVE
FRAME OF REFERENCE
• IDENTIFYING THE OPTIMAL
POINTS OF PARITY & POINTS
OF DIFFERENCE
• CREATING A BRAND -
MANTRA

13. NESPRESSO REPOSITIONED ITSELF BY
:
 TARGETING HIGH – END
CUSTOMERS
 EXCLUSIVE HOSPITALITY TO
CUSTOMERS
 WIDE REACH BEYOND THE
INTERNET
 ASSOCIATING ITSELF WITH WELL
ESTABLISHED RESTAURANTS

14. WILL THE UNIQUE POSITIONING OF
NESPRESSO ENABLE IT TO RESIST NEW
COMPETITION FROM JACOB DOUWE
EGBERTS , THE CURRENT NUMBER ONE
COFFEE COMPANY IN THE WORLD ?

15. IN ORDER TO RECLAIM ITS
SPOT AS MARKET LEADER ,
THE NESTLE GROUP
SHOULD AIM TO
STRENGTHEN THE HIGH –
END POSITIONING OF
NESPRESSO

16. THE BRAND SHOULD
• EXPAND ITS REACH i.e, beyond Nespresso Cube ,
internet and boutiques
• EXPAND TARGET MARKET i.e, beyond high – end
customers
• CREATE A SIMPLE , INSPIRING AND COMMUNICABLE
BRAND MANTRA TO WHICH PUBLIC CONNECT

17. POSITIONING PLAYS AN
IMPORTANT PART IN A BRAND’S
MARKETING STRATEGY

18. ALTERNATIVE
APPROACH TO
POSITIONING

19. BRAND NARRATIVES
AND STORYTELLING
CULTURAL
BRANDING

20. • Nespresso gained success after repositioning itself
• Brand repositioning is a very important aspect of
marketing
• Identifying & analysing competitors ; identifying points of
difference and parity and adopting a simple brand
mantra is necessary
• Alternative approach to positioning has also been
identified in recent years.

21. CREATED BY SURABHI BAJAJ DURING A SUMMER INTERNSHIP BY
PROFESSOR MATHUR , IIM LUCKNOW.