Nespresso brand positioning
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Transcript of Nespresso brand positioning
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