Visit the Nestle Nespresso Website at www.nestle-nespresso.com/about-us/our-company and report on the most recent marketing strategies that are being accomplished.
an espresso machine under the family brand name of Nespresso. To attract the American consumer, Nestle is “supersizing” the brewer as part of its new VertuoLine system. Although Nespresson is being sold in the United States, this is a strategic move is to take advantage of the rapidly increasing growth of the portioned coffee market (the drink ready in the cup). This coffee market is estimated to be roughly $5 billion in the United States. Although U.S. consumers can purchase the Nespresso machine if they want it, the VertuoLine system of machines and capsules is designed to appeal to the different coffee-drinking habits of North Americans. The coffees are characterized by a rich and generous foam called crema. To support the product debut, eight coffee and four espresso blends in specially designed VertuoLine capsules will be introduced along with the brewing system. The VertuoLine system will retail for $299. This is in comparison to Green Mountain’s $229 Keurig Rivo R500 espresso maker and Starbucks’s Verismo 600 machine that sells for $199. This pricing strategy reflects that Nestle desires for the Nespresso VertuoLine to be recognized by consumers as a premium product. To reinforce this perception of the product, the system will be sold directly to consumers through a network of Nespresso boutiques and on the Internet at Euromonitor, a market intelligence firm, reports that single-serve coffee capsules have “exploded” in the U.S. marketplace and that this trend will continue to grow. In addition to Green Mountain’s Keurig and Starbucks’s Verismo, Nestle faces competition from companies like Cuisinart, Hamilton Beach, and KitchenAid. 1. Research the companies mentioned such as Green Mountain, Starbuck’s, Keurig and other competitors. 2. What is Nestlé’s competitive advantage for Nespresso? 3. Determine how each competitor’s product would be ranked in terms of product, price, place and promotion. 4. Visit the Nestle Nespresso Website at www.nestle-nespresso.com/about-us/our-company and report on the most recent marketing strategies that are being accomplished.
