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Marketing management and strategy: A case study of the Nestle sub-brand, Nespresso

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  1. Introduction
  2. Background
  3. Analysis
    1. Market analysis
    2. Competitor analysis
    3. Product analysis
    4. Product life cycle
  4. Marketing Strategy Framework
    1. Current corporate and marketing strategies
    2. SWOT
    3. Consumer/ Customer analysis
    4. Segmentation and positioning
  5. Marketing plan
    1. Future objectives and strategies
    2. The financial situation
    3. Recommendations and tactics
  6. Conclusion

Nestlé is a global company which recognizes that in order to be a successful company, one has to be competitive and cost efficient. The company put its customers first, and plans to create long lasting relationships with them, creating a luxurious exclusive experience for their coffee customers through its sub-brand Nespresso.

After having positioned itself as a luxury brand, the Nespresso brand struggled with several weak aspects in its positioning during the economic recession. Communication and marketing are therefore key factors in successfully fending its place in the global scenario for a company such as Nestlé; it is important to have a clear and concise view of how Nespresso functions in its current market, and how the future marketing plan and positioning could pan out for Nespresso.

With this in mind, we will suggest a five-year plan as to how Nespresso can improve its marketing communication skills and recommendations enhancing the Nespresso brand and image.

The global market for Nespresso is very large; this report will therefore only be looking at the French market, giving a more detailed account of the French market rather than a superficial overall account.

[...] Looking at the current corporate and marketing strategies it is evident that Nespresso is so new in the market that it has not implemented the defense strategies that might be necessary in a couple of years time. The next section will look go further into detail on the strengths, weaknesses, opportunities and threats of Nespresso SWOT Strengths The main strength of Nespresso is the recognized quality product of the brand. An Sustainable Quality? Program? has been launched in 2009 to preserve sustainable high quality for its coffee supply chain. [...]

[...] It is therefore understandable that the market for capsules and the market for machines are related, and as Nespresso is the leader in sales of capsules of coffee, it also benefits from a strong position in the market for machines. In Europe, machine sales are constantly increasing; they have doubled between 2005 and 2007, from 500,000 machines a year to nearly a million per year. In 2008, close to 1.4 million machines were sold, showing a dramatic increase in the sales of Nespresso products ( [...]

[...] Nespresso will sell capsules in premium food retailers such as Monoprix in France, which is the equivalent of Waitrose in UK to set up Nespresso corners in the store and check whether or not it damages the brand image of luxurious products. This joint venture with a top-of-the-range supermarket will help to win the war between Nespresso and the new competitors, available in most supermarkets without abandoning the high level positioning of the brand. It is the strategy that will achieve objectives by increasing the number of machines and capsules sold in the existing markets. PROMOTION Capsules In the past, Nespresso has launched a special kind of coffee for young people years) with specific advertising using some characters from Disney world. [...]

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