Z0957486 Strategic Marketing Management
Strategic Marketing Management
Summative Assignment
BUSI5B815
Word Count: 2011
Anonymous Code: Z0957486
Submission Date: 19/01/14
Personal Declaration
Word Count: 2011
I confirm that this piece of work is as a result of my own work. Material from the work of others not involved in the project has been acknowledged and quotations and paraphrases suitably indicated.
Furthermore, I confirm that I understand the definition of plagiarism that is used by Durham University, and that all source material has been appropriately cited and referenced.
I understand that only the content in the main body of my work will be marked, and that the content in the Appendices will be checked, but will not contribute to the marking of my assignment.
Task One
Nespresso’s buoyant growth and impressive results (Anderson,2012), clearly display its product as highly desirable in the coffee industry (Ernst et al,2010), which, successfully supported by aspirational branding efforts, arguably adheres to the impression-focused trends within society (Jackson,2010,cited; Bennie et al,2011). However, recent loss of market share and the ubiquity of Nespresso in the mass-market, which conflicts with it’s concept of best-in-class service, best quality and premium brand identity, suggests that issues are prevalent within the company’s marketing strategy (Varadarajan,2010).
Nespresso’s critical marketing issue is that its product innovations no longer offer necessary opportunities for differentiation, which has arguably lead to increasing competition and the questioning of Nespresso’s capability in exceeding its competitors. The issue has materialized through a rapidly growing market segment (Appendix i), which has attracted competitors, particularly due to the low entry barriers (Porter, 2008), and the new understanding of the company’s non-entitlement to patent rights on their capsules. This intense competition from substitute
Summative Assignment
BUSI5B815
Word Count: 2011
Anonymous Code: Z0957486
Submission Date: 19/01/14
Personal Declaration
Word Count: 2011
I confirm that this piece of work is as a result of my own work. Material from the work of others not involved in the project has been acknowledged and quotations and paraphrases suitably indicated.
Furthermore, I confirm that I understand the definition of plagiarism that is used by Durham University, and that all source material has been appropriately cited and referenced.
I understand that only the content in the main body of my work will be marked, and that the content in the Appendices will be checked, but will not contribute to the marking of my assignment.
Task One
Nespresso’s buoyant growth and impressive results (Anderson,2012), clearly display its product as highly desirable in the coffee industry (Ernst et al,2010), which, successfully supported by aspirational branding efforts, arguably adheres to the impression-focused trends within society (Jackson,2010,cited; Bennie et al,2011). However, recent loss of market share and the ubiquity of Nespresso in the mass-market, which conflicts with it’s concept of best-in-class service, best quality and premium brand identity, suggests that issues are prevalent within the company’s marketing strategy (Varadarajan,2010).
Nespresso’s critical marketing issue is that its product innovations no longer offer necessary opportunities for differentiation, which has arguably lead to increasing competition and the questioning of Nespresso’s capability in exceeding its competitors. The issue has materialized through a rapidly growing market segment (Appendix i), which has attracted competitors, particularly due to the low entry barriers (Porter, 2008), and the new understanding of the company’s non-entitlement to patent rights on their capsules. This intense competition from substitute
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