Nespresso

NESPRESSO

Introduction

Launched 30 years ago, Nespresso is a subsidiary of Nestlé and one of theworldwide leaders of coffee market. The brand became very famousthanks to the coffee maker based on capsules. More than a simple coffee,Nespresso managed to create litterally a “Nespresso experience” by itsinnovative concept.All this case long we are going to analyze the company and isstrategiesthroughout the SWOT, the positioning, the targeting ant to finish themarketing mix of the brand.

SWOT analysis:



* The roasted coffee market has alsoseen significantly improved performances for fair tradeproducts. 

* There is also increasing awarenessof issues associated with fair tradeand sustainable development.


* Customers are extremelyresponsive to promotionaloffers on coffee. Consumers are more and moredemanding about the quality of their coffee.

* Consumers also expect anincreasing ease-of-use in relation to coffee.


* Consumers are increasingly takingethical issues into account inrelation to their consumption of coffee, and hence the fair tradecoffee segment has grown strongly.









Internal analysis:Diagnosis and advices:

Coffee industry is a very thriving one, it has a huge market with greatopportunities. Coffee is the most popular drink in the world. This sector isvery dynamic with famous and useful innovations such as the Capsules orNespresso machines; both have a strong potential. Capsules andNespresso machines are a strategic growth opportunity. Consumers paymore and moreattention to quality of coffee and some are ready to payhigher price for a more up market coffee. They also expect a more ease touse relation to coffee. So, Nespresso has to keep on innovating to fulfillconsumers’ needs. Analyzing consumers’ needs and aspirations in termsof coffee could be a great mean to achieve those objectives and adapt theoffer to consumers needs.
Nespresso has to face a hardcompetition from the others soft drinks thathave higher communication budgets. Moreover, the current trend forhealth and well being act in favor of so called healthy drinks such as fruit juice, smoothies and mineral water. So, Nespresso has to keep beingcompetitive on the sector, it should increase the communication budgetsand focus on the benefit on health of coffee.Coffee business is renowned forunscrupulous business practices, soNespresso has to improve its involvement in issues associated with fairtrade and sustainable development. Brands must therefore deal with theparadoxes that exist in relation to consumer demand: they must marketinexpensive yet high quality products that are easy to use and ethical.

Targeting and positioning

 The target aimed by Nespresso is the consumers Topof the range. The customer typifies in between 28 and 49 years, he is urban, likes pleasing and is an art lover. The new target aimed by Nespresso at present is the young assets. Indeed according to the CEO of Nespresso it is the young assets which are going to allow making increase the equipment rate in coffee machines. Concerning the location of Nespresso it is a question down from Range with apolicy of creaming. Indeed the price of coffee machine Nespresso is appreciably more brought up than a coffee machine Senseo (at least 50€). Of more Nespresso try to refer to its image top of the range luxury and class not only in its Coffee but also in his shops who are generally situated in the very rich streets of cities, but also in their association with Star like George Clooney or theparticipation in events as Rolland Garros, Of America Cup. The creation of the Club Nespresso adds a luxury touch to the concept.

Marketing Mix

Product:

Nespresso proposes 3 different types of products. The espresso machines: they are manufactured by 6 different companies and combine technological technology, simplicity of use and innovative design. There are 5 different ranges of machines...