Nespresso: About and its Market Analysis

21

Transcript of Nespresso: About and its Market Analysis

Nespresso is not just a coffee. It is a

sensorial experience.

Nespresso has grown into one of the most

well-recognised global coffee brands. It is

trusted by millions of consumers as a mark

of passion, authenticity and service.

The Nespresso brand stands

for exceptional quality, refined service and

genuine pleasure. It has become a symbol

of elegance.

Facts:

• Founded in 1986

• Autonomous globally managed business of the

Nestlé Group

• Present in 64 countries

• More than 12,000 employees worldwide,

compared to 331 in 2000

• Over 50% of employees in the markets in

direct contact with consumers

Who are main customers?

The urban men and women seeking to treat themselves, who would not compromise upon luxury and quality. Nespresso which is perceived for it’s elegance, high quality, and taste provides that exclusive and unique experience.

Brand Success Strategy:

For 30 years, success has been based on

singular focus on:

1. creating the highest quality Grand Cru

coffees

2.building long-lasting consumer

relationships

3.operating business in a sustainable way.

These three Key Growth Drivers underpin

long-term corporate

Advertisements:

-market specific always.

-catchy taglines

Boutiques by Nespressois one of the method used by the company to emphasise it association with luxury and high quality.

BRAND LOYALTY

Benefits:

Emotional Benefit: feel special, treated

with every sip. Sensorial value.

Consumer Benefit: effortless, unique experience, uplifts moods, relaxes.

Product Benefit: Perfection, convenience, choices, superior taste.

The 4P’s:

Product, Price, Place and Promotion

Product:- Premium espresso brewed from capsules available in various flavours.

-Beautifully designed machines

- B2B and B2C solutions

-Unique experience in boutiques.

Place:-exclusive

-online and boutiques mainly

-good customer interaction online through club

Price:-High compared to competitors.

-Luxury brand status

Promotion:-word of mouth

-sponsor

-chefs and connoisseurs

SWOT Analysis:

-Strengths, Weakness,

Opportunities and Threats

Strengths:-Market Leader

-Strong brand equity: awareness, top of mind and image

-Store experience is excellent

-Loyalty through club

-Easy to use, effortless, varieties

Weaknesses:-Lack of easy availability

-too much dependence on celebrity espClooney

- Inconvenience in buying

- Huge chunk of market is untapped

Opportunities:- Business to business expansions

- Increasing awareness

- Increasing hold in luxury segment

Threats:-Jacob Douwe Egberts being number one

-market can be overtaken by them

COVERED Topics:

• Who is Nespresso?

• It’s Positioning

• Strategy

• Product

• Market analysis

DISCLAIMER:

This presentation has been done by Vasudha Harlalka, from VIT Vellore

Under the able guidance of Prof. Sameer Mathur, IIM Lucknow during Marketing internship.