case study of nespresso

1. MARKETING MANAGEMENT
MBA 2022-2024
Section P
Submitted By:
Sonali Tiwari
Sonali Patidar
Vishal Farkya
Shruti Singhal
Veena Mudgal
Guided By:
DR. SATNAM UBEJA
PRESTIGE INSTITUTE OF MANAGEMENT AND
RESEARCH, INDORE
(An Autonomous Institution Established in 1994, Accredited with Grade ‘A++’ NAAC (UGC) ISO
9001: 2008
Certified Institute, AICTE / UGC Approved Programs affiliated to DAVV, Indore)

2. INTRODUCTION
Nespresso was created in 1986 as a subsidiary of the Nestlé
Products supplied by nespresso is nespresso coffee machines, nespresso coffee capsules, nespresso Club.
As of 2014, the brand has more than 300 boutiques in 60 countries across the world
The Nespresso system is based on several fundamental criteria: practically designed coffee machines, high-
quality coffee, excellent service, and strong and original communication.
Nespresso distributes its products only from a distance—through the Internet and mobile devices, or in one-
of-a-kind boutiques
Nespresso markets its products using fully automated distributors called Nespresso Cube
have colored walls made of cases of capsules on display with an interactive interface
Nespresso works with the advertising agency McCann World to create the “ultimate coffee experience” in all
its dimensions of communication
In Europe, since 2006, actor George Clooney and the famous slogan “what else?” have been synonymous
with the brand.

3. Strengths
Premium coffee Experience(free coffee tasting
Broad ranges of coffee related products
Personalized services
Baristas & coffee experts offering private consultations in store
Self selection rooms with sensory experience for members
Pick up counters to save time for consumers
Used capsules recycling in store
Creative installations art in store
Experimental limited edition coffee
Weaknesses
Relatively low accessibility due to the limited
store locations
Consumers are unable to compare products
with different brands
Highly rely on salesperson performance
Opportunities
Easier to attract potential new customers (store location)
Huge market demand
1.Home drinker
2.Premium drinker
3.Fine dinning restaurant industry
Collaboration opportunities with other brands from wide
ranges of industries
Ongoing expansion of product portfolio
Threats
Variety of substitute products
Increasing competition price war
SWOT
ANALYSIS

4. QUESTIONS & ANSWERS
1. Why has Nespresso’s repositioning on the consumer market led to the success of the brand?
:- Nespresso's repositioning on the consumer market led to the
success of the brand because of it's successful brand
positioning. They offer a practically designed coffee machine
which offers high quality coffee and they have an excellent
customer service with very strong and original
communication. Nespresso distributes its capsules only
through only devices, mobile devices or in one kind of
boutique which are very strong PODs. They manufacture their
own capsules which add to their overall sales and even
associate themselves with well established restaurants and
chefs

5. QUESTIONS & ANSWERS
2.Will the unique positioning of Nespresso enable it to resist new competition from Jacobs Douwe Egberts?
:- Yes, the unique positioning of Nespresso will enable it to resist
new competition against Egberts because:
1. Nespresso is a more global and exclusive brand with its boutiques
spread across the world.
2. They have better marketing strategies and stronger
communication.
3. Their parent company, Nestle, backs them up with a very strong
brand equity and power.

6. SUMMARY
Nespresso first tested its new concept in Japan in 1986,
and rolled it out to consumers in Switzerland, France, Italy
and Japan the same year. Nespresso uses between 90%
to 95% Arabicas with some Robusta's to either add spice
to select Coffees, or create unique personalities in others.
Nespresso's unique brand positioning has allowed it to
keep its competition like Tassimo, senseo's Nespresso
compatible capsules at bay, but still faces stiff competition
from JDEBrand mantra(unique, elegant, luxurious in
experience)the company is growing 30% every year.