Case Analysis

Made by:

Sayan Bose

Sonia Grover

Nakul Dev

Synopsis

• Launched in 1986, Subsidiary of Nestle Business Group

• Target: Premium Coffee Segment, as “The Armani of Coffee”

• In 1997

• Advertising: Print

• Offered to first-class airline passengers

• In-store Demonstrations in Retail Outlets – Sales increased from

50 machines per year to 700 machines

• In 2006, TV commercials featured George Clooney

• Annual Growth- 30% from 2006-2010

• In 2011, Global Revenue- 3.5 billion Swiss Francs

• In 2012, Overall growth- 20%

Marketing Angle

Digital Marketing

Nespresso’s Online Boutique- 180,000 Unique Visitors

Facebook Page Reach- 1.8 million fans

Challenge faced in U.S.: Nespresso’s Machine produce only

espresso

Machine launched- Maestria including steaming/frothing wand,

to make Cappuccino

Brand Positioning

Advertise

Premium magazines

Sponsored prestigious events, like Cannes Film festival

Brand Ambassador- George Clooney

he brings kind of humoristic distance

People see him as real person

Physical Expression- Machines designed to look good

Emphasized environmental protection

75% capsules are recycled worldwide

Special disposal containers in Switzerland, for capsules

Questions…in U.S. market:

Is Advertisement expense in U.S. a necessary expense for

the company? Why?

What could be the different distribution channels, in

order to increase market share in U.S. ?

What could be the positioning of the Brand in U.S.?

What could be the message, if they advertise ?

What could be criteria to select the distribution

channels?

Recommendations

Yes, consumption increasing. Hence, there is a need to increase brand visibility

Distribution channels

Supermarket

Online distribution channel

Sponsored retailers

Boutiques

Tie-ups with High end Brands, like Louis Vuitton

Luxury Brand

“The perfect cup of Coffee… Anytime or Every time”

Criteria

High Network Individual Reach

Access to Coffee Lovers

Financially stable, in case of Retailer

Incentives for achieving targets