Nespresso is a coffee brand subsidiary of Nestle that was started in 1986 in Switzerland. It offers a variety of Nespresso-compatible coffee capsules and technologically advanced coffee machines. It distributes its products through automated cubes, boutiques, and its website. Nespresso targets high-end consumers in Asia, Europe, and North America. Its unique positioning focuses on exclusivity, luxury, and a direct-to-customer business model.

1. -The ultimate coffee
experience.

2. Origin of the brand
Started as a brand
subsidiary under the
swiss group Nestle in
1986.
With the joint efforts
of Eric Favre and
Jean-Paul Gillard,
the brand became
successful.

3. Tailored technologically advanced coffee solutions suitable to all business
and values

4. Nespresso offers variety
of capsules separately
compatible with
vertuoline and original
line machines.

5. Distribution channels
-Automated cubes
-Boutiques
-website

7. Segmentation and Targetimg
Geographic segmentation
• Serves Asian, European and American countries according to their needs.
• Vertuoline in North America
• Original line in European Countries
• Targets high end segment of society.

8. Positioning
o One-in-a-kind of boutique
o Benefit from exclusive offers, magazine
subscriptions
o Fully automated Nespresso cubes
o Chefs are regularly invited to taste to keep a
check on authenticity.

9. Competitive frame of reference

10. Points of difference
• Direct-to-customer
business model
• Variety
• Nespresso cubes, one-
in-a-kind of boutique
• Recycle
• luxury

11. Point of Parity
• Premium prices
• Quality
• Advertising
platform
• Customer service

12. Brand Mantra
Unique, elegant and luxurious
in experience.

13. Q1. Why has Nespresso's positioning on the consumer market led to
success of the brand?

14. o Direct-to-consumer business model.
o Excellent service.
o Adaption to the customer's needs and
desires.
o Practically designed coffee machines,
high quality coffee.
o Benefit from exclusive offers.
o manufacture its own capsules.

15. Q2. Will the unique positioning of Nespresso enable it to resist new
competition from Jacobs Douwe Egberts?

16. Yes, because
-Nespresso is more exclusive brand
than Jacobs.
-Nespresso has their markets all over
the world
-They have better marketing strategy
and very strong communication.
No, because
-Jacobs is selling their capsules at a
lower price.
-Jacobs has more turnover than
Nespresso

17. Aluminum recycling
o Each capsule
generates 1 gm of
aluminum waste
o Easy and free
recycling program
called écolaboration
o Free recycling bags
o Or return capsules
to:
• Boutique
• Postal courier
who delivered
• one of the 870
Kiala points

18. The choices we make…
-In 2014, announced the AAA Farmer Future Program
- first pension scheme for coffee smallholders
- opportunity for young people in coffee producing
regions.

19. Summary
• History
• Machines and accessories
• Capsules
• Distribution Channel
• Advertising campaign
• Segmentation
• Positioning
• Competitive frame of reference
• Points of difference
• Points of parity
• Brand mantra

20. Disclaimer
Created by Ritika Sharma JIIT Noida, during a Marketing Internship with Prof. Sameer
Mathur, IIM Lucknow.