University level Marketing study providing an analysis of the brand Nespresso and written by a French native speaker.
[...] Illy post high ambitions and want to attire the same customers than Nespresso (elitist). To impose on the market, Illy multiply the partnerships with for example Méridien and Hyatt (high tourism resorts). The E.S.E. (Easy Serving Espresso) espresso pod invented and launched by Illy has become an espresso standard, found in homes, offices and cafés throughout the world. pod) Capsules for Illy's Nespresso equipment Espresso appliance “Francis, Francis”, made only for Illy's capsules Stage 3 Price Nestlé with Nespresso is different comparing to rivals due to his high range and luxury positioning. [...]
[...] Its machines are sold through retail channels, while the capsules are sold online and in about 175 "coffee boutiques" in 30 countries. The domestic capsules, at least, are only available from Nespresso. The Nespresso coffee machines are widely sold in electrical retail stores, but the capsules can only be bought in Nespresso stores, called "Nespresso boutiques", via mail-order or the company website. (www.nespresso.com) While there is a relatively large opinion in Internet forums that the Nespresso coffee is very good, the concept of Nespresso does not allow the customer to purchase coffee from any source other than Nestlé (Lock in). [...]
[...] Targeting For the international market, Nespresso had selection specific advertising areas to optimize the diffusion (Sweden, Dutch, and Italian) Targeting of a qualified audience with a panel of luxury, feminine and news magazines Feedback IC-Agency, included solutions as web analytics which allow to measure and optimize performance of the campaign to maximize his impact. Magazine Opinion Nespresso succeed his positioning. Nespresso penetrated a closed market, this one of the coffee. The initial segmentation had been respected and the perception and the image of the product (coffee) had been changed in the consumer's mind. However, new rivals jostle this segmentation, Nespresso must keep coherent. There are some risks as compromise the brand image and to decrease the “comfortable” margins (about 30%). [...]
[...] One question still remains: Is it a good idea to sell capsules in supermarkets? The brand will be more famous and the distribution network more developed. Potentials new customers could compare the prices between the Nespresso's capsules and these from the rivalry and choose the cheaper price (it's to say the rivals). The Nespresso's club is an efficient CRM tool. Shops allow to know the consumer behavior and the magazine permit to offer personalized products. This will procreate a confusion in the positioning and an inefficient club . [...]
[...] This one guaranties an excellent targeting visibility, a real opportunity to attract new prospects With powerful Traffic Management tools, IC-Agency offers an integrated strategy which valorize the reference and secure the brand image in stopping others actors of the market (rivals, copy brand) to buy the brand name or to watch for fraud Georges Clooney advertising campaign Nespresso looks today to develop his notoriety and his brand image among the large public. The first operation in this way was the advertising campaign with Georges Clooney lunched in IC-Agency accompanies Nespresso. It was a great success: Gratitude score = 66% (standard Score of amenity 85% (standard The result is that in just one campaign Georges Clooney became the icon of Nespresso. His image and his style are in adequacy with the brand. People recognize themselves into the ambassador. It was an international advertising. [...]
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