Marketing management and strategy: A case study of the Nestle sub-brand, Nespresso

Thèmes abordés

SWOT, Market analysis, PESTEL, Product life cycle, STP, Marketing Plan, Marketing mix

Résumé du document

Nestlé is a global company which recognizes that in order to be a successful company, one has to be competitive and cost efficient. The company put its customers first, and plans to create long lasting relationships with them, creating a luxurious exclusive experience for their coffee customers through its sub-brand Nespresso.

After having positioned itself as a luxury brand, the Nespresso brand struggled with several weak aspects in its positioning during the economic recession. Communication and marketing are therefore key factors in successfully fending its place in the global scenario for a company such as Nestlé; it is important to have a clear and concise view of how Nespresso functions in its current market, and how the future marketing plan and positioning could pan out for Nespresso.

With this in mind, we will suggest a five-year plan as to how Nespresso can improve its marketing communication skills and recommendations enhancing the Nespresso brand and image.

The global market for Nespresso is very large; this report will therefore only be looking at the French market, giving a more detailed account of the French market rather than a superficial overall account.

Extraits

[...] A machine costs between £130 and £500 and the capsules about which are expensive prices compared to the competition. They are sold online but also in official Nepresso stores. Nespresso is the worldwide market leader for coffee in capsules and an analysis of the coffee market shows that it is propitious for the company, as greedy coffees, but also the capsules and machines market are increasing. However, the brand has to think about the macro-environment and its variables: respect of the patents, household behavior during a crisis, or with the ecological revolution, possibility of purchasing online etc A competitor analysis shows that the main competitors of Nespresso are Senseo and Tassimo, which are cheaper and provide an easier system for capsules, and a French brand, Casino, tried to copy Nespresso's capsule in order to sell it at a lower price. [...]

[...] Other GMBs that do not meet the threshold, like Nestlé Professional, Nespresso, and the food and beverages Joint Ventures, are aggregated and presented in Other Food and Beverages (Annual report 2009). That is why it is really difficult to find any accurate financial data about only Nespresso France S.A.S. Nestlé's organic sales growth was including real internal growth of and pricing of This growth is still high despite the fact many countries have a negative GDP development. It is a proof of the strength of Nestlé's brands. It demonstrates the benefit of the policy, regardless of the crisis context, of investing continuously in brands through R&D and marketing. [...]

[...] The consumer buying process is divided in five stages: the problem recognition, the information search, the evaluation of alternatives, the purchase decision and the post-purchase behaviour (Kotler 2009). During the buying process, the consumer is influenced by different factors: the medias (advertisement campaign, TV, magazines . the feedback, the competition and the social pressure. Because the strategy is the same as luxury products, Nespresso is focused on advertisement and service to catch the attention and desire of the consumer and build a new need to lead to the purchase action. [...]

[...] Available from : (accessed 13 November 2010). Anon. (11 December 2009) Nespresso shares new insights on coffee farm economics to build its AAA Sustainable Quality™ Program. (internet). Available from: (accessed 16 December 2010). Anon. (2004) About us.(Internet). Available from: (accessed 16 December 2010). Anon. (February 2010)Les ventes de l'électroménager, Bilanéconomique 2009.(Internet). [...]

[...] In France, the main competitors of Nespresso on the coffee market are Tassimo from Kraft Foods group and Senseo from Sara Lee that are the leader in the coffee industry. They are selling coffee pods but that are not adapted to Nespresso machines. Their machines offer to the consumer more choices with a large range of compatible product from the coffee to the tea or even hot chocolate. Malongo, Lavazza and Dolce Gusto are also serious competitors selling coffee pods adapted to their own machines. Senseo Created in 2001, Senseo is a concept resulting from the alliance between Sara Lee and Philips. [...]