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….
[...] Thanks to the strategy analysis, we first noticed that Nespresso wants to position on the espresso coffee capsules market as a luxury brand. We have notices two distinct points of segmentation: the social class and the age. As we have already noticed, Nespresso distinguishes itself by targeting a restrained population. The 35-49 years old primary needs are satisfied, so they are looking for secondary needs. Also, their professional career is stable. The targeted social class shows that Nespresso is dealing with customers having high incomes and loving luxury. [...]
[...] Nespresso has decided to establish an integrated promotion strategy which is to rely on direct sales to customers through an internal sales force or means of direct marketing and distance sales. The “Nespresso which will talk about later, is the exclusive distribution channel according to Frédéric LEVY, Internet project manager of Nespresso. However, there are Nespresso stores that sell Nespresso capsules and machines. Moreover, in those stores, the brand disposes of coffee professionals whose mission is to inform customers. Of course, superstores specialized in household appliances only sell machines without capsules. [...]
[...] The brand notoriety along with its services through the “Club Nespresso” encourages customers to prefer Nespresso products to others. Nespresso targets a high social class (SPC in order to assert its brand image and the fact that its product belongs to the luxury area. The demographic and social criteria do not give us an explanatory but a descriptive approach. I have based my analysis on the criteria of: - Behavior: it refers, for example, to the average amount consumed (young people are not used to drink a lot of coffee, so they do not buy it). [...]
[...] 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. The diagram below represents the coffee market in terms of Nespresso's position and its main competitors. 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. [...]
[...] 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. The famous message delivered by the media “What drives an image of simplicity, highlighting the basic aspect of coffee: its taste. Nespresso prefers to communicate the evidence of drinking its coffee without focusing on the technical aspect. Media The television advertising and poster campaigns are mostly conducted from mid-November to mid-January and for celebrations of mothers and fathers. [...]
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