Nespresso: SWOT analysis

Résumé du document

We would like to think that the customer of Nespresso looks like 'a perfume addict' who does not really care about the quality of coffee. He attaches more importance to the packaging and the purchasing atmosphere than the contents themselves. Two of the three key points of the Nespresso concept confirm that it is the main strategy to appeal to the clients. The machines have always an 'avant-garde design' and the Club Nespresso helps the salesperson to know the patrons and their expectations better. Nespresso was originally created to provide high quality coffee to businesses, and the launch of the Citiz range of machines reminds us of this first target. Louis Vuitton, for example, serves its customers only with Nespresso.

Extraits

[...] That's why Nespresso is trying to reach a new target: the youth. The strategy is quite clear: to propose a more affordable range of machines (Essenza) which are even more easy to use. We think it is what convinced me to become a member of the Nespresso community on one hand. But even if the price of machines decreased so as to appeal to the youth, the price of capsules didn't and that obstructed the purchase. But the ad campaign with George Clooney and its natural class removed the obstacle. [...]

[...] We can't sell Nespresso in a PMU, it's not compatible. The media which is the most developed in their strategy is internet. In general, the consumers make the command on the webstore of Nespresso. This media is used and developed in their strategy. The consumer can also buy doses in a little reseau of stores which look likes galleries. Furthermore, by creating a private club on the internet Nespresso continues to develop the experience of its consumers with the brand. [...]

[...] They don't sell the dose in supermarkets; this is not in the distribution strategy of Nespresso because the place doesn't respond to the brand image. They also work in collaboration with restaurants, coffee shops, bars etc., where consumers can not only drink coffee but they can also buy other things. They make a selection concerning the distributors. The service owners have to complete a certain criteria such as the service quality, the luxurious ambiance and the consumers. It means that the place has to respond to the image of the brand. [...]

[...] This is Nespresso and nothing else. One more time, we have in the idea that Nespresso is more than a procuct, it is a way of life, a way of being Nespresso and nothing else, consumers are proud of it and we can see that through the increasing number of members in its private club. As far as the advertisement campaign is concerned, the brand ambassador is George Clooney. He has been selected by the Club members. He is the evident reason for the Nespresso positioning in the luxury market. [...]

[...] At the same time, Louis Vuitton serves its customers only with Nespresso. But this market has some limits and that is the reason why the management team decided to widen its field of action. They started by targeting a wealthy and very urban population. They achieved this by selling a coffee whose cup's price is twice as expensive as Senseo's one, its main competitor. They also opened coffee shops only in large cities such as Paris, Marseille or Lyon in France. Thus, only people living there had access to the brand. [...]