Nespresso was created in 1986 as a subsidiary of the

Swiss group Nestle

Today Nespresso is a Global success!

SSo what made

Nespresso so

successful?

EFFECTIVE BRAND

POSITIONING!!

Now, What is Brand Positioning?

It is an act of designing a company’s offering and image to occupy a distinctive place in the minds of consumers

Brand positioning has three aspects:

•Choosing competitive frame of reference.

• Identifying optimal PODs and POPs.

•Creating a Brand Mantra.

Nespresso is based on several fundamental criteria

Practical designHigh quality coffeeExcellent serviceStrong communication

COMPETITIVE FRAME OF REFERENCE

Nespresso’s unique brand positioning has allowed it to keep its competition like Tassimo, Senseo’s Nespresso compatible capsules at bay.

BUT…..The company faces stiff competition from Jacob Dauwe Egberts, which is currently the number one coffee company in the world with a turnover of $4 billions.

POINTS OF DIFFERENCE

Nespresso distributes its product only through the online devices, mobile devices or in a one-of-a-kind-boutique.

Customers buying Nespresso machines automatically become member of the Brand Club.

Thus cultivating a sense of belonging to a privileged community that reinforces the brand’s

positioning

POINTS OF PARITY

Nespresso shares parity in terms of its quality, service and design.

Other POPs include- R&D, premium price and design.

BRAND MANTRA

•Unique, Elegant, Luxurious in

experience

George Clooney and Penelope

Cruz as brand ambassadors

Why has Nespresso’s repositioning on the consumer market led to success of the brand?• Practically designed coffee machine• High quality coffee.• Strong and original communication• Excellent service to the customers.• Manufactures its own capsules which added to their overall sales.• Very good advertising strategy.• Associates itself with chefs and well-established restaurants.

Will the unique positioning of Nespresso enable it to resist new competition from Jacob Dauwe Egberts?

YES, because:1. Nespresso is more exclusive brand than Jacobs.2. Nespresso has their markets all over the world as opposed to Jacobs

which is not so widespread.3. They have better marketing strategy and very strong

communication.

• No, because:

1. Jacobs is also producing capsules which can fit in Nespresso machine. Since Nespresso’s own capsules were major source of their income, they are facing tough competition because of other capsule manufacturers.

2. Jacobs has more turnover than Nespresso which enables them to invest more money in advertisement and also let them sell their products at a lower price.

1.About Nespresso2.Reason for Nespresso’s success3.Brand positioning4.Questions

DISCLAIMERCreated by Anjali Gupta, Delhi Technological University, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow