Buyer Behavior - Factors Influencing Nespresso's Target Consumers

Running head: BUYER BEHAVIOR
Buyer Behavior
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1BUYER BEHAVIOR
Executive Summery
Nespresso is a brand that offer its customers with luxury coffee drinking experience even in
the comfort of their own home. They provide espresso machines to leading restaurants,
airports and businesses who believe in enhanced customer experience. The purpose of this
report is to understand the factors that influence buyers to opt for expensive coffee machines.
The key demographical factors of the target consumers and the factors like culture,
motivation and status that affect or influence them in their decision making process has been
evaluated. With that understanding, a market strategy that would effectively enhance their
sale, has been created and recommendations regarding that has been made. The report
concludes that the position of Nespresso falls on the premium segment and thus must exercise
caution while retargeting the market.

2BUYER BEHAVIOR
Table of Contents
1 Introduction........................................................................................................................3
2 Findings..............................................................................................................................3
2.1 Identification and Profiling the Target Market............................................................3
2.2 Product Positioning Strategy.......................................................................................6
2.2.1 Environmentally Sustainable...............................................................................7
2.2.2 Ethical Practice.....................................................................................................8
2.3 Internal Influence of Buyer Behavior..........................................................................8
2.4 External Influences of Buyer Behavior.......................................................................9
2.5 Leading to Identification and Development of a Market Strategy............................10
3 Conclusion and Recommendation....................................................................................11
References................................................................................................................................13

3BUYER BEHAVIOR
1 Introduction
Nespresso has become one of the leaders of coffee market (Matzler et al. 2013).
Nespresso’s position in the market has always been as premium products and service
provider. The aim that they follow is to deliver to its customers the “Ultimate Coffee
Experience” (Brem, Maier and Wimschneider 2016). In order to do that, they aspire to
combine perfection, aesthetics, pleasure and simplicity to create an experience that is
beyond the imagination of the consumers. They focus on three deliverable in order to
achieve this: they make sure that the coffees that they supply to the market are top
quality Grand Cru production, the machines that they produce are innovative, exclusive
as well as stylish so that it appeals to the customers and providing personalized service to
the consumers (Oliveira and Rodrigues 2015). In this report, the target market of
Nespresso and the factors that influence it has been explored, the strategy that Nespresso
use for positioning of their product has been discussed and the internal and the external
influences of buyer behavior has been analyzed. Depending on that, an effective
marketing strategy for Nespresso has been developed.
2 Findings
2.1 Identification and Profiling the Target Market
Nespresso has become one of the leaders of coffee market. They maintain their
competitive advantage with their outstanding service, premium machines, innovation,
quality, variety and personalization (Niemuth et al. 2014). The main targeted market
for Nespresso are the upscale consumers who want to consume coffee as good as they
do get in cafes and the business market. They concentrate on the capsule coffee market