Nespresso case - answers PDF

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Nespresso, art and style (answers) Question 1 What are the strong points of Nespresso's marketing strategy?!

• The strong points of Nespresso's marketing strategy are as • • • • • • • •

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follows: Experiential and sensory marketing (providing the customer with a unique and engaging tasting experience to create an emotional attachment to the brand); Product control, efficiency of the distribution network and consideration of customer expectations; A strong image and a reputation for excellence; Focus on a market niche (portioned coffee) made up of consumers with specific needs; Relationship strategy focused on loyalty, personalization, one-toone communication and customer value creation; Involvement of customers in viral marketing actions allowing the spread of positive word of mouth and facilitating the recruitment of new customers; Establishment of the Nespresso Club, which enhances the feeling of belonging to a private cub; Branding Nespresso: capitalization on a strong and sophisticated aspirational brand, very high-end positioning (little exploited by competitors), rising coffee consumption to the rank of a lifestyle symbol); Aggressive and ambitious expansion strategy (establishment in high-end hotel chains, conquest of the world market).

Question 2 How does Nespresso segment the portioned coffee market?! - Behavioural segmentation: drink a perfect cup of coffee, achieve a certain social status, save time - Sociodemographic segmentation: age groups (it seems obvious that the brand mainly targets a male clientele aged 40 is more in line

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with its advertising spokesperson) and income (very high-end positioning). - Psychographic segmentation: Nespresso is the translation of a hedonistic way of life and a culture of refinement. The brand also promotes the values of generosity, equity and environmental protection. - Segmentation according to market-specific variables

Question 3 Write the positioning of the Nespresso brand. Several possible answers. Segment: a lover of quality coffee, in need of time, but in search of status and refinement. Brand: Nespresso: Concept: Portioned coffee Advantage: High quality coffee, service to members Justification: Technology, Nespresso Club

Question 4 What do you recommend to Nespresso in terms of pricing? Explain why.! The status quo. Nespresso's pricing policy is entirely justified given the brand's high-end positioning, the nature of the targeted market segments, the customer experience (tasting of fine wines) and the value of the product (characteristics, substitutes and message conveyed by the price): "Nespresso is above all an aspirational brand, which has succeeded in making coffee consumption a symbol of a whole art of living... "Seen from this angle, we immediately understand better the substantial price gap with the rest of the market...)

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Question 5 Would you recommend to Nespresso an intensive distribution strategy for its products? Why? Why? No. An intensive distribution policy would be totally unsuited to the brand's positioning and symbolism. Thanks to its exclusive distribution, Nespresso has given its products a prestigious image and its shops have become communication vehicles that consolidate brand capital and strengthen the feeling of belonging to a select club.  Question 6 Nespresso wishes to increase its presence and visibility in the Quebec retail market. a) What are the objectives of a communication campaign targeting the retail market in Quebec? Here are some examples of communication objectives: → Increase in brand awareness rate of X% among individual customers in Quebec by XX/XX/2008. → Affirm the brand's image of refinement and prestige. b) Propose and justify two concrete marketing communication actions that would allow Nespresso to achieve its communication objectives. Marketing communication actions are numerous, so there is no ready-made answer to this question. We will therefore evaluate the relevance, originality and realism of the actions proposed by the students

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