The document summarizes the success of Nespresso, a subsidiary of Nestle that produces coffee machines and pods. It began in 1986 and has grown to a $3 billion global business present in 60 countries. Nespresso has established a premium brand through high-quality coffee, exclusive boutiques, and brand ambassadors. While new competition from Jacobs Douwve Egberts may impact Nespresso, its global presence, distribution channels, and exclusive brand positioning will help it resist competition. The document recommends Nespresso focus on expanding its capsule market, introducing new flavors and loyalty programs, and leveraging emotional branding in marketing.

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. Generating Revenue through Nespresso Pods

6. ● Having a long lasting Customer
relationship with the Nespresso Club

7. ● Association with well-established restaurants

8. Points of Difference (PODs)

9. ● Unique, elegant, & Luxury Experience
● Nespresso Brand Club
● Great in-shop experience at Nespresso
Cubes
● 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.