Nespresso Analysis

Brand strategy

Brand positioning:

Nespresso is an ultra-premium sub-brand of Nescafe which aims to satisfy the demand for high-quality coffee. As an ultra-premium sub-brand of Nescafe, Nespresso uses unique logo and slogan so as to be more independent to distinguish from other common sub-brands.

Target audience:

Urban elites aged 24-35 with high salary who are willing to have and can afford a high-quality life.

Current situations:

a. Product

As a specific premium coffee brand, Nespresso requires consumers to buy a coffee machine before enjoy its product. And in terms of environmental protection and resources efficient utilization, one cup of product for one serving seems to be a waste.

b. Price

In addition to buying a coffee machine before enjoy the product, the price of Nespresso seems higher than other premium instant coffee brands.

c. Place

Presently, the only way to get Nespresso product is through the Internet either from the official website or the sellers of Amazon.

d. Promotion

Some successful commercials enhance the awareness and reputation of Nespresso.

Related strategies:

1. Flagship stores(conception stores)

Considering the single way to get the product, we recommend opening flagship stores in main cities such as London, Birmingham, Manchester and Newcastle etc. And one city has one store which should be decorated luxuriously to match the brand image. Apart from buying products via internet or telephone calls, consumers can even go to the store directly to get products home or just enjoy them there. And the store is also designed to be a place for experience. All the products should be demonstrated to attract more people to have a product experience. The benefits are: Firstly, it makes consumers easier and more convenient for purchasing. Secondly, through product experience, more potential consumers would be transferred real customers. Thirdly, the brand image and awareness spreads widely. Even though we could not make all people to be real consumers, the enhanced awareness of Nespresso would increase the feeling of superiority when consuming Nespresso.

2. 10 used for 1 new

In order to resolve the problems of both product and price, we suggest operating the 10 used for 1 new activity. As its literal meaning, 10 used products namely 10 blank capsules can exchange for 1 new capsule. The benefits of the activity are: Firstly, it could be a solution for recycling the capsules to reduce