Nespresso Marketing Analysis
The Art of Coffee Marketing
Marketing Analysis of Nespresso
What I got myself into…
Coffee is one of the most widespread and popular drinks next to water and the second most used product right after oil. Being a truly global commodity, its consumption today reaches 2.25 billion cups per day. The biggest importers and thus coffee consuming nations are the US, Germany, Italy, Japan and France.
It is everywhere and at any time. People drink coffee while working, relaxing, driving, meeting or communicating, rendering this beverage almost a necessity product with no time factor for consumption. Drinking coffee can be a ritual, a culture, a tradition, a socializing event, a break or a source of energy.
Its effects on health are still a subject of debate but according to the Harvard Health Publication; “…in moderation – a few cups a day – coffee is a safe beverage that may even offer some health benefits.”
The capsule coffee segment showed the most rapid growth in the coffee market. According to Euromonitor International, prepackaged coffee sales accounts to 20 to 40 % the value of ground coffee sold in Europe; a market worth USD 17 Billion.
The Chanel of Coffee…
Nespresso is a sub brand of the world’s leading nutrition, health and wellness company, Nestle. The brand Nespresso was born in 1986, in Lausanne with the aim to bring the best Italian bar, quality espresso into our homes and offices. The Group was not convinced about neither the product, nor the machine or the brand and it was in this negative, “close to the end” atmosphere that Jean- Paul Gaillard took over in 1988. “Nespresso is a rough diamond handled with the left hand by people with no vision” said Mr. Gaillard and asked for a marketing budget of 1.6 M€. He was granted the half of it and the other half he has borrowed from UBS. His vision: to enter the market through the high end by giving the brand a luxury glow.
Today, the “Nespresso brand has become known for the highest quality coffee,
Marketing Analysis of Nespresso
What I got myself into…
Coffee is one of the most widespread and popular drinks next to water and the second most used product right after oil. Being a truly global commodity, its consumption today reaches 2.25 billion cups per day. The biggest importers and thus coffee consuming nations are the US, Germany, Italy, Japan and France.
It is everywhere and at any time. People drink coffee while working, relaxing, driving, meeting or communicating, rendering this beverage almost a necessity product with no time factor for consumption. Drinking coffee can be a ritual, a culture, a tradition, a socializing event, a break or a source of energy.
Its effects on health are still a subject of debate but according to the Harvard Health Publication; “…in moderation – a few cups a day – coffee is a safe beverage that may even offer some health benefits.”
The capsule coffee segment showed the most rapid growth in the coffee market. According to Euromonitor International, prepackaged coffee sales accounts to 20 to 40 % the value of ground coffee sold in Europe; a market worth USD 17 Billion.
The Chanel of Coffee…
Nespresso is a sub brand of the world’s leading nutrition, health and wellness company, Nestle. The brand Nespresso was born in 1986, in Lausanne with the aim to bring the best Italian bar, quality espresso into our homes and offices. The Group was not convinced about neither the product, nor the machine or the brand and it was in this negative, “close to the end” atmosphere that Jean- Paul Gaillard took over in 1988. “Nespresso is a rough diamond handled with the left hand by people with no vision” said Mr. Gaillard and asked for a marketing budget of 1.6 M€. He was granted the half of it and the other half he has borrowed from UBS. His vision: to enter the market through the high end by giving the brand a luxury glow.
Today, the “Nespresso brand has become known for the highest quality coffee,