Read the case carefully (attached as Nespresso.pdf) and know the details. Then please answer the following two questions:
1. What is Nespresso’s brand position?
2. How is this positioning achieved through its marketing mix (4Ps: product, price, place, and promotion)? Note: An example of how this positioning is achieved through product is attached as Nespressor Part 2.txt. You only need to do price, place, and promotion.
3. How do U.S. consumers consume coffee (i.e., where and what kind of coffee) and how does this affect Nespresso?
Supplementary materials – Nespresso’s commercials
Product – Nespresso machine and capsules
Nespresso’s products include Nespresso machine and capsules. This section will first list the key differences between Nespresso’s machine and other coffee machines, and then compare Nespresso’s capsules to others.
Nespresso machine is advanced in the design and technology. Generally, as the case indicates, “they were typically well-designed and compact in size” (p. 2). Specifically, being well-designed means aesthetically appealing. The machine will “look good on a kitchen counter” (p. 3). In terms of its technology, the machine is easy to use. It has an advanced technology, which provides higher pressure than other coffee machines do when consumers brew coffee. Such technology is protected by 1,700 patents. In addition, there is a model called “Maestria”, which can make cappuccino. One caveat is that Nespresso machines do not produce milk-based coffee.
Nespresso’s capsules contain about five grams of ground coffee and produce either an expresso shot or a long shot. They are different from other competitors’ brands in three ways. First, the quality of the coffee is high because the case mentions that the quality of the coffee is the most important aspect to define Nespresso’s brand identity. Second, it has some unique peripheral cues such as fancy Italian names (e.g., Arpeggio, Capriccio and Rosabaya de Colombia, p. 3), good-looking design (e.g., “shiny aluminum capsules and various holders for them”, p.3), and limited editions of varieties. Third, Nespresso’s capsules are easy to dispose. Materials are recycled, and there are special disposal containers available in Switzerland.
