1.
Eli Hua
Jenny Kuei
Elaine Lorent
Haoran Fan
Grace Liu

2.
COMPANY BACKGROUND
• Overview (Grace)
• Nespresso Analysis (Haoran)
• Target Market (Jenny)
• Marketing Strategy(Eli)
• Action Plan(Eli, Elaine)
• Financial Analysis(Elaine)
• Measurements(Elaine)

3.
THE COFFEE INDUSTRY
• Consumers aged 60 and plus
• Consumers aged 40 to 59
• Consumers aged 25 to 39
• Consumers aged 13 to 24

4.
COFFEE PRODUCTS
 Roasted Coffee
 Single –Cup Coffee
 Instant Coffee
 Ready-to- Drink Coffee

5.
MARKET TREND OF COFFEE
• 83% of adults drink coffee in the U.S.
• Hispanic Americans have the highest
coffee consumption
• At-home consumption
• Demand for convenience due to fast-
paced lifestyle
• Increase in environmental awareness
• Health benefits of coffee
• Premiumization is a key driver
• Quality drives profitability

6.
SINGLE CUP COFFEE INDUSTRY
• 32% of US household own a single-cup brewer
• Market growth
• The single-cup coffee category plays a significant role in the growing coffee market

7.
PRODUCT LIFE CYCLE

8.
COMPETITION ANALYSIS

9.
COMPETITION ANALYSIS

10.
ALTERNATIVES
• Tea
• Increasing number of the U.S.
population drinking tea rather than
coffee
• Healthier choice
• Larger choices in term of tastes and
preference

11.
NESPRESSO ANALYSIS
• Customers
Female (60%), Male (40%)
Age: 35-49
High income
High social class
High purchasing power
• Product
Finest green coffee
Selected Capsules and innovative machines

12.
NESPRESSO ANALYSIS
• Service
Direct relationship
Nespresso Club
• Distribution
Official website
Boutiques
Well-known Department Stores
• Market Share
7% in U.S. market
Contributes 15% to global sales

13.
SWOT Analysis
strength
• Hign-quality
coffee
• Variety and
innovation
• Genuine coffee
machines
• Energy saving
and
environmentlly
friendly
• Strong customer
service
• Nespresso
Boutiques
• Perfect B2B
solutions
• Luxury image
weakness
• Expensive pricing
• High costs
• Not to go service
• Limited
distribution
opportunity
• Ethical and
sustainble
business trend
• Coffee becomes a
more and more
popular drink
• Single-cup coffee
plays an
increasingly
important role in
total coffee
market
threat
• Out of home
• Challenges from
other drink
alternatives
• Challenges from
other coffee brand
competitors
• Coffee
consumption habit
in US market
• Coffee beans
supply

14.
KEY TO SUCCESS
• The market for single serve coffee is at growth phase.
• U.S. consumers seek after high-quality and sustainable coffee.
• The consumption at home increases these years.
• Even though the competition in the one cup-coffee
industry is intense, Nespresso targets a market that is
really narrow and high standard.
• Nespresso communicate an image of exclusiveness and luxury lifestyle.

15.
CRITICAL ISSUES
• Enhance the brand essence and shift the positioning in consumer’s mind.
• Promote the quality and features of having espresso and its unique experience.
• Increase brand awareness by higher exposure in more aspects.
• Acquiring the target markets that have not been reached, and convert them into users.
• Enlarge the distribution of Nespresso in other American cities that welcome a
concentrated number of the core target group.
• Increase the trial of Nespresso coffee within our target group.

16.
MARKETING STRATEGY
• Marketing Objective:
Increase the U.S. market share from 7% to 12% by 2016
by raising brand preference and expanding the market.
• Financial Objective:
2012  2013: 9.1% growth
2013  2014: 15% growth = 4.9billion of revenue

17.
TARGET - DEMOGRAPHIC
• 35-49 years old middle to upper
middle class male and female who
have attained bachelor’s degree or
more.
• Annual Household income:
$60,000+

18.
DEMOGRAPHIC - 35-64 DISTRIBUTION
• In 2010, there are 31.6
M of males and 32 M of
of females in age 35-49
• Mostly located in East
and West coasts,
Northeast

19.
DEMOGRAPHIC – EDUCATION ATTAINMENT

20.
DEMOGRAPHIC – POTENTIAL MARKET

21.
PSYCHOGRAPHIC
• Busy Busy Busy!
• Seldom spend time cooking and go mid-high end restaurants
• Active in social events, visit museums, galleries and concerts
• Sports fans and love outdoor activities – Skiing, cycling, tennis, golf
• Participated in financial investment and charity
• Only watch certain programs on TV- financial news, sports
• Online shopping after work
• Travels a lot for fun and for work, join airline memberships
• Shopping preferences
• High-end, luxury brand retail/department stores
• Crate & Barrel, Barnes & Noble, Bloomingdales, Nordstrom, Ann Taylor
• Coffee to them are energy booster . Also it’s a little treat for relaxation at work and to spend
leisure time alone or with colleagues/clients

22.
MEDIA EXPOSURE
• TV
• Spending 15-18.8 hours per week.
• Financial/Sports programs.
• Radio
• 8% above average in radio consumption (6.5-6.8 hours/week)
• Print
• 4% acove average consumption in print media
• magazines, newspapers, travel/business/finance publications
• Enjoy reading
• Internet
• 88.8% of Gen X are monthly internet users. 29-34 hours/weak.
• 74.5% using social media at least once/month (Facebook 65.6%, LinkedIn 41%, Google+
29%, Twitter&Pinterest 10%), and 28% don’t use social media
• Mobile
• 63% owns smartphones and 41% owns tablets
• 80% makes consumptions online.

23.
START WITH CONSUMER
“I am leading an active and busy lifestyle in the
city and I love it. To escape, I enjoy sharing
warm and relaxing moments with the people I
love. I highly value quality in the products I buy
and I am willing to pay for it. I fully enjoy
treating myself with the special luxuries that
make life better and make me feel unique and
privileged.”

24.
LET’S EXAMINE OURSELVES
• Positioning
For people belong to higher social classes who distinguish themselves by what they possess,
Nespresso delivers a strong commitment and dedication to serve and accompany their
customers into their ultimate coffee experience.
• Tone & Manner
Exclusive, uniqueness, privileged, elegance, inspirational

25.
OUR BARRIER
We have..
Premium coffee
Aspirational image
Luxury experience/atmosphere
BUT..
People don’t know how good Nespresso is!
BECAUSE…
They never try it!

26.
IDEAL LOCATIONS
• New geographic markets chosen based on:
• Closeness to our target group caracteristiques
• Density of the population
• Purchasing power
• Final decision:
Baltimore, MD; Hartford, CT; Whashington DC; Houston, TX;
°Opening repartition within two years to share the burden.

27.
ACTION PLAN
Goal
Increase trial to make people believe we are the best!
Our Acts
• Nespresso Experiential Tour
• Expand boutiques in new places
• Reach target audience in their “favorite” places
• Coop with other brand/Sponsor events that fit
consumer lifestyle

28.
NESPRESSO EXPERIENCE TOUR
• Raise awareness (visibility / Mobile-capsule stores) & Brand preference (trial)
• Communication: promotional sales; advertising; PR; direct marketing
• Multiple ways to get access to the trial
• Incentive to buy our products later on
• Agenda: from beginning of October to the end December

29.
NESPRESSO EXPERIENCE TOUR

30.
REACH IN THEIR FAVORITE PLACES
• Airport
• VIP Lounge
• On board (First & Business Class)
• Hotel & Resorts
• Hotel rooms
• High end vacation resorts

31.
COOP WITH OTHER BRAND/SPONSOR EVENTS
• Cultural
• Museum lounge
• Exhibition cooperation
• Sport
• ATP Tennis Tours

32.
MEDIA TIMELINE – 2014

33.
FINANCIAL

34.
EFFECTIVENESS MEASUREMENT
• Trial measurement
• Comparison sample distributed and return on promotion sales
• Sales metrics
• Number of sales per new boutiques (><existing stores)
• Increase in overall sales + growth
• Further: instill more pressure on the best sales channel
• New customers acquisition
• Subscription to the Nespresso Club
• Conversion through our promotional sales
• Communication
• Pre-test: focus group
• Post-test: public relation, social media, direct marketing, advertising (Billboard and print)

35.
THANK YOU!