The Art of Coffee Marketing

Marketing EssentialsSeptember 29th, 2011

Adriana Nagy

A quick introduction

Adriana Nagy

Full Time student

Russian & Hungarian

Worked for Publicis Paris

Content

I. What I got myself into A quick overview of the coffee industry

II. The Chanel of Coffee Nespresso within Nestle

III. Nespresso’s well protected playground Competitors overview

IV. Nestle + Nespresso = “Nespresso Mix” The 7P’s

V. Nespresso. What’s next…?My recommendations

I. What I got myself into

A quick overview of the coffee industry

I. What I got myself into…A quick overview of the coffee industry

2.25 billion cups /day

Necessity product

Effects on health

I. What I got myself into…A quick overview of the coffee industry

US, Germany, Italy, Japan and France

II. The Chanel of coffee

Nespresso within Nestle

II. The Chanel of coffee – Nespresso within Nestle

Sub brand of the world’s leading nutrition, health and wellness company, Nestle

1986, Lausanne

Jean-Paul Gaillard, 1988“Nespresso is a rough diamond handled with the

left hand by people with no vision”

50 countries and 190 boutiques, more than 7 million Club Members

II. The Chanel of coffee – Nespresso within NestleBranding

Logo

Color Palette

Luxury sector inspired graphic and visual design

Poly-Sensorial Marketing Concept in boutiques

III. Nespresso’s well protected playground

Competitors overview

III. Nespresso’s well protected playground Positioning and 5 competitive advantages

Best Service

Smart Machines

Optimum Convenience

Variety / Choice

Best-in-Cup Quality

ININNOVATIONTION

III. Nespresso’s well protected playground Target Segments & Customers

2 main target customer segments

In-Home Business

30 and above

Quality and style conscious

Upper middle and upper class epicureans

Satisfaction of self-esteem need

Offices

Hotels

Airline Companies

High-end event caterers

Luxury Boutiques

III. Nespresso’s well protected playground Competitors overview

High entry barrier till 2012 for direct competitorsEthical Coffee Company (Jean–Paul Gaillard)L’Or Espresso by Maison du Café (Sara Lee)Nexpod (Swiss start-up)Caps-Cup (Hong Kong)

No brand “attacking” the same market segment with similar technology and customer service

Senseo (Sara Lee+Philips)Tassimo (Kraft Foods)Dolce Gusto (Nestle), LavazzaFlavia (Mars Inc.)Keurig (Green Mountain Coffee Roasters)Caggia-IllyMalongo.

25%

IV. Nestle + Nespresso = “Nespresso Mix”

The 7 P’s

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Product

Same product range all over the world

Machines are elegant, design awarded, innovative, user friendly and convenient

Gemini, ES + 8 Grand Crus + Accessories & Aguila Nespresso Business Club

Essenza, Pixie, Citiz, Lattissima + 16 Grand Crus + Limited Editions + Accessories + Confectionary & sugar

Nespresso Club

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Product

Nespresso Club

Creation and nurturing of

personalized client relationships

database marketing

development of tailored sales

strategies

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Price

Growth life-cycle

Value based pricing method

Luxury sector profit margins

In-home: 99€ - 500€ Business: 275€ – 1495€Capsules: 0,35€ - 0,39€Accessories: 13€ - 110 €

Confectionary & Sugar: 5€ - 19€

Low threat of substitution

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Place

Nespresso Site

Phone

190 Boutiques in 50 countries

Distribution of coffee machines is a bit more “democratized”

Direct customer contact in order to maximize brand impactand

assure high quality standards

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Promotion

Print and TV participative Ad campaign

Nespresso Magazine

Social Media

Very little promotional and direct marketing activities

Sponsorship

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s – Physical Evidence

Based on the core values of the brand

Customer Delight

WOW Effect

Top Quality

EleganceInnovation

Aestethics

Excellence

Simplicity

IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s – Process & People

ProcessHighly customer focused

People Boutique employees -> true ambassadors of brand’s

image and reputation

Thorough employee selection process and intensive training

Employees and management are proud to be part of the winning team

V. Nespresso. What’s next…?

My recommendations

V. Nespresso. What’s next…?My recommendations

Limited collections

A more intensive communication on the different participative marketing tools

“Nespresso Moments” CD

More sponsorship activities and presence on worldwide events

Brand Ambassador Era Change

Thank you for your attention