The company was founded by Nespresso Nestle Group in 1986 with the aim of offering its customers quality coffee products. Since then, the company has continued to develop a selective distribution system and manage its brand based on luxury. The company catered to the popular concept of drinking coffee as a means of relaxing.
Introduced in 1987, the Nespresso system achieved massive popularity with its slogan “What else" publicized by George Clooney; the Nespresso machine is today emblematic of the fine art of coffee drinking and enabled the creation of a selective club where drinking exceptional coffee is a mantra.
Historical background
1970: Creation of the Nespresso machine and its capsule.This is a revolutionary process that keeps freshly brewed coffee (and its flavor) in a single capsule.
1986: The company Nespresso SA is created. It is 100% Nestlé owned. The Swiss company Turmix deals with the production of machines currently available in Switzerland and Italy.
1991: Equipment manufacturer Krups associated with the production of machinery for the international market. Nespresso launches in French and American markets.
1996: The company celebrates its tenth anniversary.The Nespresso Club has 180,000 members. Great Britain, Malaysia, Singapore and Taiwan are part of this exceptional niche.
1998: Following a number of partnerships that enable the creation of several models of machines, a Nespresso website is born. This enables the further growth of the Nespresso Club.
2002: Orders placed on the internet accounts for 30% of the turnover of the company.The sales caps explodes and leads to the emergence of new production processes.
2003: With the creation of the label Nespresso AAA, the company is committed to providing consumers with high quality coffee.
2004: Nespresso is the official partner of the 32nd America's Cup.
2005: Nespresso is the leading European coffee company with its new Nespresso Essenza.
2006: Launch of an advertising campaign featuring movie star George Clooney which garnered massive popularity worldwide. A new machine "The Cube" allows Nespresso to seduce lovers of design and luxury.
2007: Nespresso boutique opens in Paris (Champs Elysees); the area of the boutique is 1500m2. This opening is a pretext for extending the ambitions of the brand; the company is now turning to the Asian market.
Coffee production is entirely managed by Nespresso.The green coffee beans are processed directly by the production unit located in Orbe, Switzerland. Nespresso has complete control over its coffee production from the purchase of coffee pods (an academy was established for breeders of coffee for Nespresso production) to its sale (the sales of Nespresso is directly managed by the company) .
Nespresso is committed to delivering quality coffee.For this, it relies on what it calls a trilogy:
•Grand Cru coffees
•Machines at the forefront of design and technology
•A range of services tailored to consumers
The company relies on a selection of specific clients and has established the Nespresso Club.This club is accessible via Internet with a membership number issued when one buys a Nespresso machine. This online service also enables the control of capsules.
The mode of distribution is unique to Nespresso.The capsules are only available online or in exclusive shops.
Tags: Internet Marketing Strategy, Nespresso, CRM
[...] Nespresso saw that there was an opportunity to develop this type of communication and that this would allow it to control its marketing mix. Indeed, the marketing strategy of Nespresso is to distribute its products in a particular way and to target a certain clientele: rather young, dynamic, belonging to a fairly high income group. Nespresso coffee and accessories are available in some shops and also on the Internet as part of an elitist distribution. Internet is the main component of the marketing strategy that allows Nespresso to have a significant customer database and know the characteristics of its customers (they love the products, machinery and accessories they have etc) , something that would be impossible with other means of distribution. [...]
[...] The Nespresso Club, which includes all consumers, buyers and users, allows the company to identify its customers based on their coffee, favorite cafes etc. The Nespresso club allows the user to participate in the marketing choices of Nespresso. Thus, it is the Club members who voted between two commercials, which aired on television. Today, there are over 450,000 members. e-mailing With the Nespresso Club, the company was able to create a database of customers; this is vital since this enables the company to procure and access the customers' internet addresses. [...]
[...] Accessories: - Around the presentation o Classic Range (white porcelain cup) o Range concept (white rounded porcelain design) o Preparation accessories (spoon, cocktail shaker, emulsifying milk, cappuccino kit etc) o Leather and wood range (plateau) - Around the machine o Storage accessories (for storing capsules) o Accessory maintenance and transport (descaling kit, carrying bag etc) - Around the tasting o Chocolate (cinnamon, black pudding, exclusive Nespresso recipe) o Sugar (brown, white color pods according to vintage) Emulsifier Machines: A system without equal "Providing a simple way at home or outside, a quality espresso identical to that of the best offered in Italian cafes. [...]
[...] Being a consumer of Nespresso has become a social criterion, a trademark of luxury and membership to the upper classes of society 2. Products Nespresso products are separated into two distinct ranges: - Professional products - Products for individuals These two ranges are composed of capsules, accessories and machinery. The Pro Capsules: The capsules are flat, round and of different colors. There are 6 capsules for professionals: - Espresso Leggero - Espresso Forte - Caffe Forte - Caffé Leggero - Decaffeinato - Ristretto These 6 types of coffee can be served as models or in small, medium or large cup. [...]
[...] We can conclude that the strategy to conquer Nespresso customers and convince them to come visit is widely promoted via TV spots. First, George Clooney endorses the product, and then the site address is displayed at the end of the ad, which encourages consumers to browse through the Nespresso site. Nespresso's E-Business strategy 1. Why? Nespresso has chosen this method of distribution as opposed to other brands of coffee that have chosen a more conventional distribution method because the company wanted to differentiate itself as a new and modern one. [...]
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