Excellent Marketing Initiatives by Nespresso

Introduction

Marketing communication is the key. Through marketing, companies can place an ordinary product in the premium market and still sail through. On that note, not all brands started with something innovative or are super successful in today’s business environment, but it is worth noting if the impact that they created in the business world was tremendous. Nespresso is one such brand that started selling coffee machines and coffee capsules for a high-quality premium coffee to customers, which they can enjoy in the comfort of their homes.

Image 1 − The logo of Nespresso – Coffee brand owned by Nestlé S.A.

In this article, we will be diving deep into the entire growth trajectory of Nespresso and the different initiatives taken by Nespresso over the years to survive and thrive in the business environment.

The Birth and Growth Trajectory of Nespresso

Nespresso was born in 1986 as a subsidiary of the Nestle brand of the Swiss group. Nespresso is a brand that was set up to sell coffee machines to customers so that they could have a decent cup of good-quality coffee at home. Along with this, Nespresso also sold coffee capsules.

The Nespresso machine was a one-time purchase and only accounted for 4% of the total revenue; however, the Nespresso capsules were an all-time purchase and accounted for 92% of the total revenue. Nespresso, as a company, started selling its products as premium purchases and has been known as a brand of prestige and elegance.

Excellent marketing initiatives by Nespresso

Positioning of The Brand in The Premium Segment

Nespresso positioned itself and its product as brands that would enhance your social standing. Today, more than 8 million people belong to the Nespresso community, and they are proud and elevated to share this experience. Nespresso not only provides the customer with high-quality coffee, a refined taste, practically designed coffee machines, and excellent service but also strong and excellent communication with the brand. Nespresso today is earning profits that are generally found in the luxury segment. Caffeine today is becoming common, and with its Nespresso machines, it is giving great competition to many coffee outlets and coffee machine-making businesses. Today, more than 50 companies are making Nespresso tablets that will fit in a Nespresso machine, and this shows the upper-end positioning of the brand.

Distribution Channel of Nespresso

Nespresso refrained from using every distribution channel. There was always a restriction on where one could get the Nespresso machine, and this also helped in the premium positioning of the brand. One can acquire the Nespresso machine through internal channels, mobile devices, or unique boutiques. Apart from this, if anyone wants to purchase a Nespresso machine, they would have to go to the big airport, and in the posh area, they will see a fully automated Nespresso cube through which an individual can acquire the Nespresso machine or Nespresso.

Types of Promotion

Nespresso sells our customized mail and newsletters to its customers, and on top of that, individuals from the Nespresso community have access to the magazines. In these emails and magazines, limited offers, new improvisations, and innovations about the brand and its products are being talked about.

Collaborations with Well-known Restaurants

Around 25% of the restaurants in France today have the Nespresso machine installed. Apart from all the promotion that Nespresso does, it also promotes the presence of Nespresso machines in good-quality and ambiance restaurants. Nespresso not only encourages the consumption of coffee among the customers of the restaurants but also among the chefs, so they start recommending Nespresso products to the customers and strategizing different innovations with a free spirit.

Brand Ambassador of Nespresso

Nespresso, as a brand, understands that it needs brand ambassadors. The competition was rising, and to create a positive image of the brand among consumers, it needed a face. In Europe, Nespresso hired George Clooney and the famous slogan "What else?"; in the US, Penelope Cruz; and in the Asian market, Nespresso symbolizes a perfect cup of coffee at home or at high-end restaurants. Nespresso always associated the brand with prestige and elegance, and all its advertising efforts as well as the brand ambassadors ensured this image of the brand was conveyed to the larger public or community.

Sustainability of the Products

Nespresso was blamed because the capsules being used in the Nespresso machines were very polluting, and hence the brand came up with strategies through which it could collect all the used capsules and recycle them for making new ones to ensure minimum pollution to the environment.

Conclusion

Nespresso as a brand has been successful in the past and still has the potential to do wonders in the business era. However, we have noted that the brand is currently struggling because of the competition from coffee machine businesses as well as the new coffee outlets opening up every day. Starbucks, Dunkin Donuts, Cafe Coffee Day, Barista, and hundreds of other new coffee shops and coffee-selling outlets are growing. Nespresso has a long way to go. Nespresso is a brand with a rich heritage. The BFR can do wonders, and all it needs today are more excellent marketing initiatives to thrive in this volatile, uncertain, complex, and ambiguous (VUCA) world.