Nespresso case study: lifestyle branding in coffee
Datamonitor
October 3, 2007 8 Pages - SKU: DFMN1580560
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Introduction
This report on Nespresso forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the company has encouraged growth by marketing a lifestyle brand, promoting a premium coffee product through its exclusive sales locations and clever marketing.
Scope
Highlights
Reasons to Purchase
Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market
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- DATAMONITOR VIEW
CATALYST SUMMARY ANALYSIS IntroductionBoutiques offer luxury and exclusive retail outlets for Nespresso productsLimited product sale locations retain sense of exclusivityThe company intends to grow boutique numbers to attract new customLimited boutique locations means that online sales are popularCompany sells fewer coffee varieties than its competitors, retaining premium positioningProduction methods stress high quality - and ethical - processesAAA program has a three tiered plan: safeguard quality; reward farmers; bring customer closer to coffee originsRainforest Alliance partnership aims to promote sustainability and social responsibility at Nespresso farmsProduction center places emphasis on quality controlMarketing is designed to make customers feel specialCompany calls customers Club Members and coffee line Grands CrusCustomers have their own lifestyle magazine in Europe and the USAdvertising campaigns are intended to express the product's sophistication, style and charm- APPENDIX
Case study seriesMethodologySecondary sourcesFurther readingAsk the analyst- List of Tables
Table 1: Coffee experts at Nespresso's production plant- List of Figures
Figure 1: Inside the Nespresso Boutique in Knightsbridge, LondonFigure 2: Nestle's Nespresso coffee machineFigure 3: Nespresso Magazine
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