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The Art of Coffee Marketing
Marketing EssentialsSeptember 29th, 2011
Adriana Nagy
A quick introduction
Adriana Nagy
Full Time student
Russian & Hungarian
Worked for Publicis Paris
Content
I. What I got myself into A quick overview of the coffee industry
II. The Chanel of Coffee Nespresso within Nestle
III. Nespresso’s well protected playground Competitors overview
IV. Nestle + Nespresso = “Nespresso Mix” The 7P’s
V. Nespresso. What’s next…?My recommendations
I. What I got myself into
A quick overview of the coffee industry
I. What I got myself into…A quick overview of the coffee industry
2.25 billion cups /day
Necessity product
Effects on health
I. What I got myself into…A quick overview of the coffee industry
US, Germany, Italy, Japan and France
II. The Chanel of coffee
Nespresso within Nestle
II. The Chanel of coffee – Nespresso within Nestle
Sub brand of the world’s leading nutrition, health and wellness company, Nestle
1986, Lausanne
Jean-Paul Gaillard, 1988“Nespresso is a rough diamond handled with the
left hand by people with no vision”
50 countries and 190 boutiques, more than 7 million Club Members
II. The Chanel of coffee – Nespresso within NestleBranding
Logo
Color Palette
Luxury sector inspired graphic and visual design
Poly-Sensorial Marketing Concept in boutiques
III. Nespresso’s well protected playground
Competitors overview
III. Nespresso’s well protected playground Positioning and 5 competitive advantages
Best Service
Smart Machines
Optimum Convenience
Variety / Choice
Best-in-Cup Quality
ININNOVATIONTION
III. Nespresso’s well protected playground Target Segments & Customers
2 main target customer segments
In-Home Business
30 and above
Quality and style conscious
Upper middle and upper class epicureans
Satisfaction of self-esteem need
Offices
Hotels
Airline Companies
High-end event caterers
Luxury Boutiques
III. Nespresso’s well protected playground Competitors overview
High entry barrier till 2012 for direct competitorsEthical Coffee Company (Jean–Paul Gaillard)L’Or Espresso by Maison du Café (Sara Lee)Nexpod (Swiss start-up)Caps-Cup (Hong Kong)
No brand “attacking” the same market segment with similar technology and customer service
Senseo (Sara Lee+Philips)Tassimo (Kraft Foods)Dolce Gusto (Nestle), LavazzaFlavia (Mars Inc.)Keurig (Green Mountain Coffee Roasters)Caggia-IllyMalongo.
25%
IV. Nestle + Nespresso = “Nespresso Mix”
The 7 P’s
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Product
Same product range all over the world
Machines are elegant, design awarded, innovative, user friendly and convenient
Gemini, ES + 8 Grand Crus + Accessories & Aguila Nespresso Business Club
Essenza, Pixie, Citiz, Lattissima + 16 Grand Crus + Limited Editions + Accessories + Confectionary & sugar
Nespresso Club
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Product
Nespresso Club
Creation and nurturing of
personalized client relationships
database marketing
development of tailored sales
strategies
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Price
Growth life-cycle
Value based pricing method
Luxury sector profit margins
In-home: 99€ - 500€ Business: 275€ – 1495€Capsules: 0,35€ - 0,39€Accessories: 13€ - 110 €
Confectionary & Sugar: 5€ - 19€
Low threat of substitution
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Place
Nespresso Site
Phone
190 Boutiques in 50 countries
Distribution of coffee machines is a bit more “democratized”
Direct customer contact in order to maximize brand impactand
assure high quality standards
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s - Promotion
Print and TV participative Ad campaign
Nespresso Magazine
Social Media
Very little promotional and direct marketing activities
Sponsorship
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s – Physical Evidence
Based on the core values of the brand
Customer Delight
WOW Effect
Top Quality
EleganceInnovation
Aestethics
Excellence
Simplicity
IV. Nestle + Nespresso = “Nespresso Mix”The 7P’s – Process & People
ProcessHighly customer focused
People Boutique employees -> true ambassadors of brand’s
image and reputation
Thorough employee selection process and intensive training
Employees and management are proud to be part of the winning team
V. Nespresso. What’s next…?
My recommendations
V. Nespresso. What’s next…?My recommendations
Limited collections
A more intensive communication on the different participative marketing tools
“Nespresso Moments” CD
More sponsorship activities and presence on worldwide events
Brand Ambassador Era Change
Thank you for your attention
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