nespressoslideshare-110318061657-phpapp01

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Perfect Consistency What Else?
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Perfect Consistency What Else? Katie Mason, March 2011
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©XPotential 2011 3 Contents Nespresso have created a world around their coffee through clear and strong branding, helping them to succeed in bringing premium-priced coffee into consumers homes, without compromising on quality credentials In 2010, Nespresso grew 22.5% to $3.13 billion and profit more than tripled 4 Background and Products 7 Consistent Quality 11 Consistent Focus on Indulgence 14 Consistent Retail Experience 18 Consistent Message 23 Consistent Relationship with Customers 27 Summary This presentation takes a look at the ingredients that have been combined to make Nespresso a strong pioneering brand, and how other brands could learn from the recipe
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Background and Products
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©XPotential 2011 5 Background and Products Nespresso is Nestlé's premium at-home single-serve espresso coffee system, with an enclosed business model that locks customers’ loyalty in by being the only manufacturer and retailer of compatible coffee capsules. In order to compete with far cheaper means of home coffee (such as instant), Nespresso puts a heavy focus on quality, luxury and coffee expertise through all its communications and affiliations. This places the brand in a comparison set with more “high society living” ways of enjoying coffee, such as coffee houses (like Starbucks), home espresso machines and more premium single-serve machines such as Lavazza, compared to which it is relatively better value. “About us” The Nespresso Philosophy Nespresso has revolutionized the way of preparing coffee to deliver the ultimate coffee experience for each one of life’s moments of indulgence. At the heart of this concept is the unique Nespresso trilogy: the hermetically-sealed, iconic capsules with the large variety of Grand Cru ground coffees, the state-of-the-art, easy-to-use, sleek-looking coffee machines, and the Nespresso Club which offers unmatched personal service. This system consistently yields high-quality espresso the perfect marriage of aroma, body, taste and crema. Brand values: Perfection, Pleasure, Aestheticism, Simplicity
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©XPotential 2011 6 Background and Products In France, Casino and Sara Lee have both tried to manufacture Nespresso-compatible coffee pods. The new competitors have not stopped Nespresso’s growth and will find it hard to compete with the power of the luxurious brand image and community that Nespresso have built. Nespresso offers a unique experience which consumers won’t find, and don’t look for, on supermarket shelves .” CEO Richard Girardot. If bought from a supermarket, rather than ordered from Nespresso, the coffee could become subject to an unfavourable source bias and consumers might not enjoy it as much (see slide 12).
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