Steve Moskowitz - Nespresso Marketing B2B Marketing Camapaign
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I earned a certificate in digital marketing from NYU in Summer 2015. This marketing plan was part of the coursework needed to complete the certificate. My team found a new sales channel for Nespresso coffee and explored marketing avenues.
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Steve Moskowitz - Nespresso Marketing B2B Marketing Camapaign
- 1. Nespresso Marjan, Steve, Vasu, Mimoza, Bessie, Joanna
- 2. Company: Nespresso • Nestlé Nespresso SA, is the pioneer and reference for highest- quality portioned premium coffee. • Headquartered in Lausanne, Switzerland • Nespresso machines brew espresso from coffee capsules, a type of pre-apportioned single-use container of ground coffee and flavorings
- 3. Company: Nespresso • The company sells its system of machines and capsules worldwide • Revenue primarily from capsule sales • Market share in the U.S. in 2013 for single-serve coffee: 3% (compared with 72% for Green Mountain’s Keurig system)
- 4. Objective Develop a corporate (B2B) subscription service for New York City small- to mid-size companies that choose to reward their employees with quality coffee.
- 5. Competitive Analysis Single Serve Coffee Providers Coffee Shops Standard Drip Coffee Energy Drinks
- 6. SWOT: Strengths • Successful consumer program – Existing offering – Positioning and Strategic Approach (Differentiation strategy) “café connoisseurs” • Exclusivity based on high quality products • Single-Serve System – Convenience meets Technology – Customizable Coffee & caffeine content at the push of a button. A single cup of gourmet coffee in seconds brewed in seconds • Coffee pods in multiple flavors – Wide ranging flavor option – Satisfy a discernible palate and your every whim with the change of a pod. The ability to brew anything from Espresso, to flavored coffees and teas at your discretion • Recyclable – A partnership between Nespresso and The Rainforest Alliance – Sustainable Quality (A unique collaboration improving the situation for coffee farmers, and communities to create a sustainable supply of coffee at the highest quality) • Nespresso machine loan program – Lowering the barrier of entry to gain market share • Cost savings – Buying coffee from a store becomes expensive compared to the subscription program • Customer service – They have over 100 customer service centers – Offer consumers an integrated lifestyle approach towards coffee
- 7. SWOT: Weaknesses • Prepackaging (pre-ground coffee) • Cost • Coffee is not compatible or interchangeable with other types of machines • Availability and Distribution of Product • Lack of Brand Awareness • Environmental Concerns • Cost of Machine • Single Serve only
- 8. SWOT: Opportunities • First high-end company to offer a subscription program to corporations • Lack of Brand Awareness • Incentive programs • Corporate Purchasing • Single Serve • Subscription Program to general consumers • Status Symbol • Cost Savings (single serve as opposed to purchasing Starbucks) • Controlling Strength of Coffee • Comfort level/convenience
- 9. SWOT: Threats • Increased competition in the same market place • Competitive pricing for Single Serve coffees • Gourmet Coffee Shops • Branded Coffee Store Chains • Health Concerns • Alternative Caffeinated beverages • Loyalty to community and local Coffee Shops (Support for Small Businesses - buy locally)
- 10. Goals • Launch Nespresso subscription program that conveys convenience and quality • Drive awareness of new subscription program and break into small to mid-size market
- 11. Positioning Statement The Nespresso corporate subscription program is the convenient, quality coffee program for small to mid-size companies to reward their employees.
- 12. Audience Profile • B2B, New York City small- to mid- size businesses • Businesses who care about their company culture and want to reward their employees with quality lifestyle, which equates to quality coffee such as Nespresso. • Offices Managers, HR Departments, Involved Executive Teams Perpetually tired Enjoys coffee Strong Corporate Culture Enjoys high quality of life Foodie New York City
- 13. Target audience Target Audience Description Message General Audience Everyone • New coffee subscription program for small to mid- sized companies Office Managers Those who order supplies for an office space • Convenience • Be the coffee hero of the office HR Departments / C-level Corporate departments with vested interest in driving positive company culture & employee retention • Treating employees well with quality coffee. • Drive employee retention with overall quality of office life. • Employees stay later because they don’t have to leave the office for their coffee fix. Employees Any employee who may be vocal enough to drive and participate in company culture • Employees want to work for a company that cares and treats their employees well.
- 14. Pricing Tier Average Cups per Month Cost per Month Individual Cost Breakdown 20- 49 people 500 cups of coffee $450 90 cents per cup 50-99 people 1000 cups of coffee $900 90 cents per cup 100-199 people 2500 cups of coffee $2000 80 cents per cup 200-500 people 6000 cups of coffee $4500 75 cents per cup
- 16. Launch 20%Advertising 32% Sales 20%Sampling 3%Social Media 15% Events 10%Loyalty Prog.
- 18. Sales
- 20. Events
- 21. Loyalty Program • Mobile scan code for loyalty • Environmentally friendly campaign • Flavor of The Month Campaign • Discounts and Loading Promotions • Bulk Rate Pricing for Companies • Social Media Campaign (FB, Twitter, and Tumblr) What flavor are you • Listicals ( Buzz feed) • Nespresso Branded wraps on NYC Buses in and Subways • Online Purchasing discounts
- 22. Case Study: Flatiron Area • High concentration of businesses • Sampling cart / Station • Supporting Billboards – Subway & Around Flatiron Plaza
- 23. Barista quality, in your office. A reason to work late.
Editor's Notes
- Bessie to go over Nespresso as a whole
- Marjan to state our objective for this marketing plan
- Mimoza to go through the research we’ve done on SOME of the competitors Single Serve Aramark Green Mountain Coffee Shops -
- JOANNA TO SPLIT THIS INTO 4 SLIDES SWOT ANALYIS STRENGTHS Competitive Advantages or Core Competencies that give the firm the advantage in meeting the needs of its target markets. 1. Single brew at your convenience ( corporate subscription program) 2. Customizable caffeine levels with a push of a button. 3. Recyclable Coffee pods in multiple flavors 4. Nespresso machine loan program. 5. Cost savings —- Buying coffee from a store becomes expensive compared to the subscription program. 6.Customer service : Chance to meet the customer on a regular basis through the subscription program.
- JOANNA TO SPLIT THIS INTO 4 SLIDES SWOT ANALYIS WEAKNESSES Any limitation that a company faces in developing or implementing the market strategy. Convincing a company to pay for the machine. One cup at a time : Takes time to brew a single cup ( not like a ready made coffee in a coffee pot) Cannot use coffee pods with a different machine.
- JOANNA TO SPLIT THIS INTO 4 SLIDES SWOT ANALYIS OPPORTUNITIES Favorable conditions in the environment that could produce rewards for the organization if acted on properly. First company to offer a subscription program.
- JOANNA TO SPLIT THIS INTO 4 SLIDES SWOT ANALYIS THREATS Refer to conditions or barriers that may prevent the firm from reaching its objectives Gourmet and Branded coffee shops. Example — Starbucks and Gregory’s coffee. With science being introduced into coffee making, Barista’s are considered as chefs in a restaurant's, so machine coffee is not cool anymore. Competitors in the same market space. For example; Lavazza. Health studies. As of now, coffee is back on the list of items considered good for health. Alternative caffeine beverages.
- Barcode Mobile advertising Environmentally friendly campaign (Thinking Globally acting Locally) Flavor of the Month campaign (Nespresso chooses a flavor of the month which they want to promote by discounting to Corporate consumers and buyers) Loading Promotions – Buy one Get one Free promotions, Retailer based promotions, Rebates (work really well with luxury high priced items, Pre-packaged Premiums Bulk rate speaks for itself – purchase xyz amt. and receive a discount on your next purchase Social Media campaigns – send in your best Nespresso moment, what’s your favorite flavor, what flavor would you want nespresso to create, tell us your favorite Nespresso story, using Tumblr as a forum to disseminate the Nespresso story similar to the commercials, but in a visual interactive blog Listicals – This makes you a Nespresso coffee snob, What kind of Coffee are you, What Flavor Coffee are you, What intensity are you etc.. Nespresso Coffee brand covering subway and Bus routes located in Major commercial densely corporate areas (financial district, Midtown East, Mid town west) Incentives for people to purchase both machines and products online (larger profit margin for company, and less overhead costs for online purchases)
- Close with the tagline