Starbucks Compared to Nespresso

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Nespresso
 &
 Starbucks
 
Why
 can
 we
 compare
 those
 two
 brands
  besides
 the
 strategies?
 (Analyse
 their
  targets,
 results,
 leadership.)
 
Claire Kobrzynski, Méryl Bouchet, Laurent Hans, François Bocco& Pauline Gauché

• Marketing Mix • Product • Price • Place • Promotion • Positioning • Leadership • Strategies • Starbucks • Nespresso • Conclusion • Sources

SUMMARY

Animation

MARKETING MIX

Product
Nespresso
  3 brands of machines                         Delonghi Krups Magimix Maestria Latissima Citiz Pixie U Essenza

Starbucks Coffee
                            Brewed coffees Espresso beverages Cold blended beverages Food items Teas Branded coffee drinks Line of ice cream Pastries Sodas Juices Coffee related accessories and equipment Purchasing Roasting Selling whole bean cofees worldwide to grocery stores and large hotels

For 6 Ranges of machine

16 Capsules with different aroma Classy and well-designed packaging

Price
Nespresso
  For the machine               From 399€ to 549€ for Maestria From 279€ to 499€ for Latissima From 179€ to 249€ for Citiz 149€ for Pixies 139€ for U 99,50€ for Essenza      

Starbucks Coffee
  Brewed coffees. Drinks: range from $1.00-$5.00. Not much than its competitors Regular coffee is 4% less expensive and its iced blended drinks are much as 30% less expensive when compared with special competitors. Compared to quick service restaurants, Starbucks is more expensive.

For the capsules   From 0,35€/ caps to 0,42€/caps  

 

Limited series with a lower price

Place
Nespresso
  Specific network retailer (more than 300 worldwide)   E-commerce Platform

Starbucks Coffee
  Brewed coffees.   Direct: stores.   US and operates also in 34 countries.   Stores in shopping malls: to provide convenient access for consumers.   For non pedestrian customers, they increased drive-thru retail stores.

Promotion
Nespresso
  Selective club with high level of quality   George Clooney, the brand’s image.   A popular slogan : “ What else”   Word of mouth

Starbucks Coffee
  Brewed coffees.   Able to use a standardized advertisement theme around the world in order to incorporate different cultures.   New trend around sustainable development.   Viral marketing campaign.   Unconventional.

  Communication about AAA Sustainable Quality Program

Positioning
Nespresso
  Differentiation Strategy   Image of exclusively   The « mantra » of the Starbucks’ experience.   Turned the vision of coffee Turning it into an everyday treat. 

Starbucks Coffee
  Brewed coffees.

  Developing customers’ loyalty through a selective club by offering products and services of high level of quality.   Not a drinking moment but a tasting of Grand cru coffees.   Organizing event, and including members to the advertising process.

  Using names which added a feeling a specialness for consumers. (ex: frappuccino…)

Leadership
Nespresso
  Nespresso is leader on its market     Turnover : $3 billion

Starbucks Coffee
  Leader on its market:   18 000 stores in 60 countries   Turnover $ 11,7 billions   Quality of the product & relaxing spaces

Specific & product of high quality level. Strong image     Ensure Improve it ( George Clooney)

 

  Strong image   Competitors:.   Costa Coffee   Peet’s Cofee

 

Competitors     Lavazza Illy

Leadership
Starbucks is going to launch its own coffee machine to attack Nespresso’s market.

STRATEGIES
High Quality Coffee

Evolutionary Strategy
Starbucks Coffee

Saling Coffee Bean
  Founded in 1971: Three partners, three coffee lovers, are inspired by Alfred Peet and create their own company.   At the beginning, Starbucks Coffee Company is a small business specializing in high quality coffee beans.

The « Third Place »
  1987: After the takeover by Howard...
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