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Strategic marketing assignment: Nespresso

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  1. Introduction
  2. Presentation of Nespresso
    1. Market environment
    2. Brand and product descriptions
    3. Marketing strategy analysis
  3. Marketing mix analysis
    1. Product, price, promotion and place
  4. Communication strategy
    1. The Nespresso Club
    2. Other means of communication
    3. Brand identity and values
  5. Synthesis and recommendations
  6. Conclusion
  7. Bibliography

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. [...]

[...] Mix marketing in line with the positioning. Patented product. Internal sales forces highly specialized. OPPORTUNITIES THREATS Very open market, unprotected by Capsules coffee market in large barriers. growth Young people drink less coffee Target is getting older. B. My recommendations My recommendations for Nespresso must be in compliance with the topic of this assignment. Therefore, I have to recall the past means of communication, that is to say the ?Nespresso club? via: - Telephone and mailing paper before 1998 - Internet since 1998 If we give a look at the weaknesses identified in the SWOT analysis, I think Nespresso has to further develop its communication through various means such as television, radio, poster campaigns and appearing in magazines by using them more regularly. [...]

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