Strategic marketing assignment: Nespresso

Résumé du document

Coffee is not just a hot drink that wakes us up in the morning anymore. It is becoming a moment of pleasure and relaxation. I have chosen to analyze a brand, Nespresso, that drives luxury through a product basically considered as a consumers good: coffee. Therefore, we ask ourselves several questions: how Nespresso's communication has been evolving? What is its current marketing strategy? What can we recommend them? For the first time, I will present you the company through its products and its brand, and also its marketing strategy. Then, I will introduce the marketing mix of this company to be able to understand the way it works. Finally, to answer the main problem of this assignment, I will deal with Nespresso's communication in the third part.

Coffee, surnamed “green gold”, is a food product that has become indispensable nowadays. Indeed, it is the first agricultural commodity exchanged in the world and the second commercialized raw material (behind oil and wheat). This represents 4% of the world trade in food products. It can be consumed all day long: in the morning at breakfast, after lunch, at breaks during the working days and even at night for some people, especially after a meal with family or guests. More than just a product, it has become a ritual, a custom, a habit. However, despite a regular consumption of coffee, its market is in crisis mainly because of its price which keeps falling….

Extraits

[...] Marketing strategy analysis In order to analyze the marketing strategy of Nespresso, I have studied the different types of coffee existing and how Nespresso stands by its main competitors. The coffee market is segmented into two main parts: ground coffee and soluble coffee. Find below a diagram representing the coffee market in terms of Nespresso's position and its main competitors' one. In order to determine further develop the market analysis, find below the Porter Matrix: Concerning the demand, I have wanted to identify the users of the product and also to establish the differences between Nespresso's customers and those of its competitors. [...]

[...] Nespresso's target being people between 35 and 49 years- old, belonging to the Internet becomes an indispensable tool of communication as the target is supposed to have Internet access at home. B. Other means of communication Year after year, Nespresso's communication has evolved. First, Nespresso has started to present its product with its technical aspect through “System Nespresso” mentioned above. Then, the brand increases the differentiation with the notion of “assertiveness”, in which all of the consumers have found a part of themselves. Today, Nespresso coffee refers to the Italian coffee, that is to say a coffee known for its excellent quality and its taste. It also refers to individualism. [...]

[...] There are more and more young professionals or others with incomes high enough to become a customer of Nespresso. Because young people drink less coffee than before, Nespresso must apply a very dynamic communication. This may involve a more suitable image driven to its potential customers while keeping the simplicity and the sobriety that make Nespresso a luxury brand. Nespresso may also choose, in its next communication campaigns, an intermediate target composed of old people that can be used to be prescribers and final target. [...]

[...] What is its current marketing strategy? What can we recommend them? In a first time, I will present you the company through its products and its brand, and also its marketing strategy. Then, I will introduce the marketing mix of this company to be able to understand the way it works. Finally, to answer the main problematic of this assignment, I will deal with Nespresso's communication in the third part. I - Presentation of nespresso A. Market environment Coffee, surnamed “green is a food product that has become indispensable nowadays. [...]

[...] In a first time, until 1998, direct contacts with customers were mad through a loyalty club called “Nespresso Club”. It was the exclusive channel allowing customers to order their capsules, accessories or Nespresso machines. The contact was made by telephone or mailing paper. Since 1998, Internet has become part of the communication strategy. It has become an extension of the communication without harming the image of Nespresso. Indeed, Internet makes possible to offer consumers an interactive aspect of the products. [...]