Ch. 18 Social media and Marketing

Nespresso’s online push with popular social media app, Instagram, successfully amplifies the brand’s reputation, and increases engagement with millennial consumers while still maintaining its high-end appeal. Paid influencer partnerships are among the more effective uses of Instagram due to the resulting increased reach, which Nespresso has experienced great success with.

Ch. 8 - Segmenting and Targeting Markets

The stages of the Family Life Cycle at which the VertuoPlus is positioned to be sold are young/single professionals, the young married/divorced without children; the middle-aged married/divorced with/without children; and the middle-aged married/divorced without dependent children, as they all have sufficient, moderate-to-high disposable household income. 

Ch. 15 - Marketing Communications

Nespresso’s VertuoPlus’ primary competitive advantage concern its dual ability to produce large-size regular coffees in addition to the traditional espresso it was originally known for. Furthermore, the patented centrifugal technology makes it the only single-serve, portioned coffee machine capable of creating decadent crema on an otherwise water-textured, long coffee drink.

Ch.10 - Product Concepts

Nespresso’s brand name is universally recognized, in part due to the first three letters echoing the global mega brand, Nestle. The incorporation of the word “espresso” cleverly denotes the core product, and the uniquely designed “N” in both the full and condensed brand name versions makes for an easily-recognizable logo. 

Ch. 17- Personal Selling and Sales Management

The selling process for Nespresso’s VertuoPlus varies according to the market - namely whether B2B or B2C. The former typically requires relationship selling due to the corporate accounts and sales volumes involved being larger, while the latter is more transactional. Nonetheless, both require lead generation, lead qualification, closing-the-sale and follow-up. 

Ch. 16 - Advertising, Public Relations and Sales Promotion

https://m.youtube.com/watch?v=i9y3XKeyydw

Ch. 14 - Retailing

The VertuoPlus is best retailed with a combination of e-commerce platforms, including Nespresso’s own website, that of its retail partners and Amazon; select brick-and-mortar third-party specialty retailers and luxury department stores; and Nespresso's own international boutiques. The physical locations facilitate demonstration and sampling, while the online enhance the product’s accessibility. 

Ch. 6 - Consumer Decision Making

The evoked, or considered set of Nespresso’s VertuoPlus hybrid coffee and espresso machine include the Keurig K-Cafe, the Cuisinart SS-10, and the Mueller Ultima Sing Serve K-Cup Coffee Maker. They all produce single-serve, portioned coffee, but only the VertuoPlus can create coffee and espresso with crema, by a single button. 

Ch. 5 - Developing a Global Vision

Nespresso's global vision is to establish the VertuoPlus as "The Ultimate Coffee Experience" worldwide, which it achieves by continuing to shape the global coffee culture through the highest quality and most technologically advanced extraction equipment, while targeting international markets where consumers are increasingly choosing the convenience of portioned, sustainably-sourced coffee. 

Ch. 4 - The Marketing Environment

The VertuoPlus’ target market contains all-gendered coffee drinkers in their mid-twenties to late-sixties with general preferences for luxury goods and moderate-high household incomes, whether married/single and with/without children. Some indulge to escape the drudgery of everyday life, because owning the VertuoPlus is marketed to elevate their self-perception and social status.

Ch. 11 - Developing and Managing Products

The VertuoPlus was introduced in 2014 in response to U.S. demand for larger-sized, regular coffee. Nespresso elected to have the VertuoPlus manufactured by two distinct, but equally reputable small appliance manufacturers, De’Longhi and Breville, to increase distribution while diversifying design. Both co-branded versions feature the same patented centrifugal technology. 

https://www.nestle-nespresso.com/about-us/our-history

Ch. 3 Ethics and Social Responsibility

In their quest to demonstrate how a cup can have a positive impact, Nespresso launched its AAA Sustainable Quality™ program with Rainforest Alliance in 2003, fostering long-term relationships with farmers by embedding sustainable fair-trade practices on farms, where they have grown 1.4 million trees to offset their operational carbon footprint.

https://www.nestle-nespresso.com/sustainability/the-positive-cup

Ch. 2 - Strategic Planning for Competitive Advantage

SWOT ANALYSIS

STRENGTHS

- Market pioneer

- High-quality products 

- Global presence

- Backed by Nestle

- Patented technology

- Simple application 

WEAKNESSES

- Requires, single-use, aluminum capsules 

- Expensive 

- Incompatibility with non-Vertuo capsules 

OPPORTUNITIES

- Brand alignment with luxury hospitality and corporate entities 

- Continued growth of portioned coffee market

- Cross-promotion with manufacturing partners 

THREATS

- Competitively-priced imitation products

- Many substitute products 

Ch. 1 - Overview of Marketing

“To enable anyone to create the perfect cup of espresso coffee.”

Founded by Nestle in 1986, Nespresso initially launched in the B2B market with two pioneering portioned espresso machines, subsequently hitting the consumer market in 1991. The VertuoLine was introduced in 2014, featuring coffee/espresso hybrid machines with patented centrifugal technology.

(https://www.nestle-nespresso.com/asset-library/documents/nespresso%20-%20history%20factsheet.pdf)