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.

Comments

  1. I've got in my entourage some Italian people who advocate the quality of a 'real' coffee made with a 'real' coffee-pot (Italian coffee-pot in their case of course! ). They denounce the fact that coffee machines proposed with capsules, like the Nespresso one, worsen the taste of the beverage and propose to the customer cups of coffee full of water. In order to satisfy these reluctant consumers don't you think Nespresso should propose also basic coffee powder? In that way, people could enjoy Nespresso coffee without capsules.

    Margaux.C

    ReplyDelete
    Replies
    1. I don't think that Nespresso should diversify its production because its brand image is linked too much to their machines and capsules and it would be an error to propose this kind of coffee powder, not linked to a luxury way to make coffee easily and quickly.

      R.M.

      Delete
  2. I think Nespresso positioning is rather successful. They have chosen a clear marketing strategy which helps to attract more people who look for high quality, luxury and exclusivity.
    However I agree with Margaux as for the point about the taste of coffee from capsules. I can’t compare it with the taste of coffee from beans made in a coffee-pot. This coffee is much better. Meanwhile the main advantages of coffee from capsules are simplicity and short time of preparation. That is why it becomes more popular today.

    Alena Z.

    ReplyDelete
    Replies
    1. As you said, Nespresso's machines are made to prepare coffee quickly, and its easier to get a machine in which you just have to put a capsule and press the "ON" button whereas to make coffee in a pot (quite a big quantity) if you're alone to need a coffee.
      They fit today's way of living, where you don't necessarly have enough time to make coffee.

      R.M.

      Delete
  3. Hi Remy,

    I completely agree with you concerning the slogan. For many non-English speakers, “What else” is only the expression that Georges Clooney says in the Nespresso advertising. This advertising succeeded in getting it stuck into our head. Moreover, using celebrities in advertising has always helped to boost the sales of a product.

    However I believe that Nespresso goes a bit too far comparing its coffee capsules to the “Grand crus” wines. I am aware that international competition pushes the company to do more in order to differentiate its products from those of its competitors but in the end I think that the brand takes advantage of the naivety of consumers. This luxury image seems excessive to me for simple coffee caps.

    Nadège GC

    ReplyDelete
    Replies
    1. Nespresso' s strategy is based on luxury, it sells coffee as a "sensorial experience": you are tasting a coffee as you would taste a great wine from 1985. The company allows people to access the luxury world just having a coffee, which is very smart.

      R.M.

      Delete
  4. Hi,

    I think that Nespresso's marketing strategy is the perfect example of how companies should run their marketing strategies. I'm not a huge coffee fan, but just with this strategy Nespresso convince me to have a look at their offer and maybe become a member of the club.
    Then I also think that with Nespresso latest publicty, in which Jean Dukardin joined George Clooney, they perfectly targeted french consumers as now Jean Dujardin is quite famous and really appreciated in France.

    However, the most important fact for me is the way Nespresso convince people to buy their products with this marketing strategy in which the quality of the product is not really accentued and specified whereas WHAT represent this product is what give people the desire to buy or become a member of the club.

    I also think that there are a few similars points with Sushi Shop's marketing strategy and brand image, as they both focuse their image on luxury, high end products and collaboration with famous people who share the same image.

    Pierrick MH

    ReplyDelete
    Replies
    1. You're dead right there, marketing strategies linked to the luxury are very successful because in today's context, few people can afford luxury products, and companies such as Nespresso or Sushi Shop offer not very expensive luxury products. And this is a very great success.

      R.M.

      Delete
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