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Nespresso: SWOT analysis

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  1. SWOT
    1. Internal diagnostic
    2. External diagnostic
  2. Strategy and marketing mix
    1. Targeting and positionning
    2. Marketing mix
  3. Communication

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.

[...] technical issues hotline. They provide personalised follow ups for the customer. -Anyone who buys a Nespresso machine is automatically made a member of the Club. It is also possible to join the club directly through the website. -Provides special services to companies which choose to install machines in their offices (hotels, restaurants, luxury goods stores, airlines) -George Clooney as ambassador Weaknesses Threats -Customers are locked in their -Success of non-alcoholic soft supplies, they can chose other drinks and healthy drinks machine because of that -Uncertain evolution of the coffee -Nespresso sells the most expensive world prices capsules and machines in the sector All brands are moving into the -Capsules are not sold in production of capsules and/or supermarkets, but only in Nespresso machines, numerous competitors stores -It's difficult to buy capsules on the internet -Capsules are not recyclable, Nespresso isn't seen as a green brand, and it doesn't offer ethical coffee, in spite of the demand Strategy and marketing mix Targeting and positionning We'd like to think that the customer of Nespresso looks like perfume addict' who therefore doesn't really care about the quality of coffee. [...]

[...] All is based on a luxurious and smart atmosphere where the consumer feels unique and special. This atmosphere makes the consumer feel an uncommon experience. This is experiential marketing. They associate the brand, the service (because we can drink coffee in the shop) and moreover the product to a particular pleasure in the consumer's mind. And theatralize the selling points to transform them into entertaining places and not only a buying one. As far as the indirect distribution is concerned, they are selling their machines in specialized stores as Darty, Fnac etc., but they sell only the machines and not the coffee dose. [...]

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