Nespresso: the success of the brand image

Nowadays, Nespresso is seen as the Apple of the coffee world. In 2013, the Swiss company’s turnover was about 2.4 billion euros with 9 billion capsules sold. This success is due to a well-built strategy mainly based on its brand image which is very powerful. Here are the key points of this strategy:

The luxury as a lifestyle

Nespresso doesn’t sell its coffee as normal coffee; it sells it as a sensorial experience, which makes a lasting mark in people’s minds.  The company prioritizes a vocabulary linked to the luxury universe with its range of capsules called “Grand Crus” (linked to the vocabulary of the wine, in order to promote their very high end product and to differentiate it from the competitors). Moreover, Nespresso’s stores are “boutiques”, which is a key point in its strategy. Within the boutique, there is a showroom, a tasting area and a machine gallery: this is more than a boutique; this is a retail experience to satisfy every customer. Boutiques are designed by architects who combined art deco influences with contemporary shapes and materials. They represent design, modernity, elegance and luxury.

All of this creates a luxury experience for Nespresso’s customers, which contributes to worldwide fame.

What else? A powerful communication strategy

Who has never heard the world famous slogan “Nespresso. What else?”? Probably nobody. That’s the force of Nespresso’s slogan - it remains associated to Nespresso in your mind if you do not buy capsules. It represents the pleasure of tasting a high-quality coffee and needing nothing else.

Moreover, the brand chose to be represented by cinema icons such as George Clooney (present in every TV advertisement), Matt Damon, John Malkovich, Penelope Cruz or more recently Jean Dujardin. They set the tone for what Nespresso is trying to achieve: style, elegance and attractiveness.  Customers will identify themselves with their favourite stars and buy Nespresso capsules. As a result, the company’s popularity will grow and its brand image will be strengthened.

The Club: being more than simple customers

Nespresso created a feeling of belonging to a community thanks to “The Nespresso Club”, which gathers all owners of Nespresso coffee machines who registered their machines on the website. They take advantage of numerous services offered (online orders, technical help for the machines, home delivery, tasting evenings etc.). Members have a Club card (they can say that they belong to the same club as Georges Clooney, and it is very cool!), not a loyalty card, which shows the company’s will to distinguish itself from competitors even more.

The exclusivity as selling strategy

Nespresso set up a selling strategy based on exclusivity: the coffee machines work only with Nespresso capsules. When a customer buys a Nespresso machine, he will be forced to buy capsules from the Swiss brand. This is a profitable strategy because sales of capsules represent 92% of the company’s turnover whereas the machines represent only 4%. The exclusivity and luxury of the brand is also present through its distribution facilities, which are Nespresso’s website and the boutiques only. Using marketing terms, this is called a “one to one” strategy, and it allows the company to identify every customer’s needs. 

Nespresso is the world leader in the coffee capsules sector thanks to a strategy based on luxury, elegance, exclusivity and community. The success of the brand can be linked to Apple’s, which is also a symbol of the success of a strong brand image. 

Despite the expensive price of the product, people will buy it. What else?

Rémy M.