Nespresso Marketing Techniques and Positioning Strategies

Principles and
practices of marketing
- PPM

Table of Contents
2) INTRODUCTION.......................................................................................................................2
MAIN BODY...................................................................................................................................2
3) Positioning of company..........................................................................................................2
4) 4 of the marketing P's used by Nestle Nespresso to reinforce positioning.............................3
Marketing mix ............................................................................................................................3
5) How Nespresso current evaluates the effectiveness of it's marketing efforts and what it ...16
can do further............................................................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
1

2) INTRODUCTION
Marketing principles and practices are the framework for presenting an organization's
product, price, promotion, and distribution strategies (Kotler and et. al., 2019). This report is an
overview of the marketing techniques and positioning of Nestlé Nespresso, commonly known as
Nespresso. The company is an operating unit of the Nestlé Group and was established in 1986.
Nespresso coffee machines are famous and unique for brewing espresso and coffee from coffee
capsules, also known as pods in home or professional machines. The company is rooted in coffee
expertise, innovation and the farmers who work with the company. The company has limited
editions of 30 original coffees, 35 Vertuo coffees and 17 specialty coffees, as well as some other
global rarities. The report will provide an overview of the company's positioning over the past
three years and the four P's of the marketing mix that the company has used to reinforce its
positioning. Finally in the end, KPIs are used to evaluate the effectiveness of your company's
marketing efforts.
MAIN BODY
3) Positioning of company
Nespresso is a global success in positioning the UK market over the past three years. The
reason for Nespresso's effective positioning in the UK market is the identification of optimal
PODs and POPs. The company's positioning statement to customers states: "For the elegant
customer who is looking for a unique coffee experience, Nespresso offers not only coffee from
the coffee shop, but also a variety of luxurious and high-quality products”. It reflects the brand's
dedication and love for customers , tailor-made maid service". From the past three years, the
company has positioned its brands and products on four basic criteria, namely functional design
of the capsule, high-quality original coffee, excellent service and strong communication.
2

Last year, Nespresso developed its own new coffee machine with airtight pods, allowing
customers to make Italian-style coffee at home at a fraction of the cost. This is the company's
broad positioning strategy, including technology and competitive pricing. With this positioning,
the company achieved a turnover of more than $6.3 billion in 2020, an increase of 7% over 2019.
The company's niche positioning is for those customers who are behaviorally looking for barista-
style coffee at home and Nespresso to be able to offer it at a relatively low cost. The company
was able to gain an edge over its competitors by patenting its technology. Additionally, in order
to target the market with Nespresso’s new machines, the company is targeting and targeting the
market by offering customers free access to the Nespresso Club.
4) 4 of the marketing P's used by Nestle Nespresso to reinforce positioning
Marketing mix
4.1) Product mix
Nespresso products are classified under the three i.e. services, coffees and machines. The
company in the range of coffees has three segments Vertuo, Original and Professional. All the
coffees in the menu of the Nespresso contain 4 different attributes in order to differentiate them
3
Illustration 1: Illustration 1: Welcome to
Nespresso, discover our range of Coffee Capsules
and Coffee Machines, 2022
(Source:Welcome to Nespresso, discover our
range of Coffee Capsules and Coffee Machines,
2022)

from each other. The four attributes are Capsule, Intensity, Arabica/Robusta and Aroma profile
(HIGHEST QUALITY SUSTAINABLE, C O F F E E , 2 0 2 2 ) .
The company from last three years, to reinforce the positioning of this product as working on its
quality as the quality is everything for the Nespresso. To serve best coffee to the customers the
company in year 2020 has started to focus on the field for the selection of the best coffee beans.
The finest beans are arrived at the production unit of the Nespresso. All the wide range of
coffees of the Nespresso from original to Vertuo and to professional the company is following
the product life cycle as the model of the product mix to fit all the aromatic and taste profiles, in
all sizes to reinforce their position in market. Machines of the Nespresso are the unique product
that company has innovated in last three years using the best upgraded technology
(C O N T I N U O U S I N N O V A T I O N A N D D I S T I N C T I V E D E S I G ,
M A C H I N E S , 2 0 2 1 ) .
4
Illustration 2: All_Nespresso_Coffees, 2020
(Source: All_Nespresso_Coffees, 2020)