“To wealthy and elegant customers, looking for a unique coffee experience, Nespresso Boutique Flon is not only a coffee shop that offers a wide variety of luxurious and high quality products but also the perfect representation of the brand’s dedication to customers and tailor-maid services”.
Market segmentation
Nespresso is present internationally and adapts their offers to each of its geographical markets specific needs.
Its presence is mainly in Europe , in Asia and in the USA. The brand aims to develop its offers further by reaching inter-market segments in America and in Africa.
Nespresso tries to reach customers who value superior-quality, personalized service and an overall memorable coffee experience. Within that market, the Nespresso Boutique focuses mainly on middle-aged, wealthy and well-educated customers, experts or simply those that are curious about coffee. The brand also does Business to Business. Nespresso offers benefits such as reductions and specific capsules for this specific segment. The brand created partnerships with renowned chefs and delivers its products to hotels with the same standards and quality-value.
They aim to stay the reference on the luxurious coffee market for both markets.
Market Targeting
Nespresso has chosen to deliver their services on the luxurious market which is the fastest growing segment. The brand has started by being the pioneer on the capsule market and is still the reference in matter of coffee brand. This has resulted in an important growth in 2015. At the start of the company in 1986, the targeted market of the brand was the office coffee sectors of Japan, Italy and Switzerland only.
Three years later the system was made available for the household market of those countries, and was progressively introduced in 1991 in the household market of France and the USA.
These steps were the first major market expansion of the company.
From 1992 until now, the growth and brand development has continued by adding amenities, accessories and innovative features. Several distribution channels, such as the first online platform in 1996 were developed in order to reach a wider part of the targeted market. Nespresso has been able to reach several levels of needs and expectations on its target market by offering tailored services, products and distribution options and therefore, stay on the desired luxury market.
Differentiation
By definition a competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or in the case of Nespresso Boutique Flon, by providing more benefits that justify higher prices.
The boutique’s location in the center of Lausanne is a valuable asset. However, the real PODs (points of differentiation) of the boutique are:
- the large choice of high quality products the customers have when entering the boutique
- the numerous personalised services the clients have access to: membership account with history and preferences, 24h delivery and available assistance, home capsule collection for green customers, workshops and tastings for curious and connoisseurs clients …
Positioning
The PODs previously mentioned allow the boutique and the brand “Nespresso” to position itself on the luxury market and stay a reference for coffee in the mind of consumers.
Positioning map of Nespresso in the mind of consumers
Bibliography
Unknown author, unknown date, Officila Nestlé Nespresso SA website: https://www.nestle-nespresso.com/about-us/our-company
“The Nespresso winning formula”, Author: Richard Girardot CEO Nestlé Nespresso S.A., Date: 21.06.10, retrieved from: https://www.nestle.com/asset-library/documents/library/presentations/investors_events/investors-seminar-2010/nestlé-nespresso-jun2010-girardot.pdf
Nespresso Boutique Flon 