Nespresso is a global coffee company created in 1986 as a subsidiary of Nestle. It initially supplied coffee machines but later repositioned itself in the high-end coffee segment, becoming a global success with $3 billion in turnover across 60 countries. Some key events in Nespresso's growth included opening its first boutique in 2000, signing George Clooney as brand ambassador in 2003, and opening its 200th boutique in Shanghai in 2010. While facing competition from brands like Keurig and Senseo, Nespresso has maintained its position through high quality coffee, boutiques, brand ambassadors, and maintaining a luxury experience through its unique business model and distribution channels.

2. The
Nespresso
Success Story

3. ● Created in 1986
● Subsidiary of the Swiss Group, Nestlé
● Initially a supplier of Coffee Machines
● Repositioned to the high-end
segment to become a global success
● $3 Billion Turnover
● Present in around 60 countries with
more than 300 Boutiques
Some Facts

5. 2000 2003 2004 2010 2012
First
Nespresso
Boutique
Opens in Paris
Adapted AAA
Sustainability
Program
Signs George
Clooney as
their Brand
Ambassador
Nespresso
Opens its
200th
Boutique in
Shanghai
Adapts own
Circuit of
recovery of
used capsules

6. Competitors
Nespresso faces tough
competition from:
● Verismo
● Keurig
● Tassimo
● Senseo

7. ● Offering High quality Coffee
● Positioning themselves for the High-end
Segment
● Having a long lasting Customer Relationship
with the Nespresso Club
● Association with Well-Established
Restaurants
● Signing Brand Ambassadors who act as
influencers for the brand.

8. Points of Difference (PODs)

9. ● Unique, elegant, & Luxury Experience
● Nespresso Brand Club
● Great in-shop experience at Nespresso
Cubes
● Technology
● Developed & Diversified Distribution
Channel
● Variety of Coffee Choices

10. Points of Parity (POPs)

11. ● High Quality Coffee
● Premium Price
● Research & Development
● Product Characteristics
● Convenience

12. Distribution Channels

13. Nespresso Boutiques
e-Commerce Portal
Retailers
Mobile Devices

14. Brand Mantra
Ultimate Coffee Experience

15. Ultimate
Coffee
Experience
- Serves as the Emotional Modifier
- Serves as the Descriptive Modifier
- Serves as the Brand Function

16. Brand Ambassadors

17. Why has Nespresso’s repositioning on the consumer market
led to the success of the Brand?
● Good communication channels
● High Quality Coffee
● Highly targeted marketing campaigns
● Making the brand Desirable to the consumer
● Setting up Boutiques and Nespresso Cubes
● Association with well-established restaurants
● High Profile Brand Ambassadors

18. Will the unique positioning of Nespresso enable it to resist
new competition from Jacobs Douwve Egberts?
● No, Since Jacobs Douwve Egberts (JDE) has more revenue to market themselves.
● No, Since JDE will be selling the capsules that fit into the Nespresso machines at a lower
rate.
● Yes, Since Nespresso has a global presence and a good distribution channel in place.
● Yes, Since Nespresso is a far more exclusive brand than JDE

19. Recommendations
● Establish more growth in the Capsule Market
● Introduce more coffee flavors
● Introduction of Consumer Loyalty Program
● Work on Cultural Branding
● Induce the concept of Emotional Branding in
their marketing campaigns.

20. Summary

21. Disclaimer
Created by Mehul Sharma, Chitkara University during a Marketing Internship by
Prof. Sameer Mathur, IIM Lucknow.