This plan was developed within a group of five NYU students during the 2013 fall semester. We elaborated a complete (integrated) marketing plan covering from the market analysis to the marketing tactics selected to reach ours business goals and objectives.
Nespress2012 o contribution margin in January 2012 was of $3,9 billion. In January 2013, the brand raised it to $4.3 billion. It means that the brand experimented a growth of 9.1% between and 2013. If the brand does not change its marketing strategy, they will have an estimated $4,687,000,000 in total sales in January 2014. However, we expect that if the brand follows the strategy stated below, the revenue will reach a desirable forecast of $4,945,000,000 within the year by pushing the growth up to 15%.
Nespresso "What Else?" - Marketing Plan
MARKET TREND OF COFFEE
• 83% of adults drink coffee in the U.S.
• Hispanic Americans have the highest
• At-home consumption
• Demand for convenience due to fast-
• Increase in environmental awareness
• Health benefits of coffee
• Premiumization is a key driver
• Quality drives profitability
SINGLE CUP COFFEE INDUSTRY
• 32% of US household own a single-cup brewer
• Market growth
• The single-cup coffee category plays a significant role in the growing coffee market
• Increasing number of the U.S.
population drinking tea rather than
• Healthier choice
• Larger choices in term of tastes and
Female (60%), Male (40%)
High social class
High purchasing power
Finest green coffee
Selected Capsules and innovative machines
Well-known Department Stores
• Market Share
7% in U.S. market
Contributes 15% to global sales
• Variety and
• Genuine coffee
• Energy saving
• Strong customer
• Perfect B2B
• Luxury image
• Expensive pricing
• High costs
• Not to go service
• Ethical and
• Coffee becomes a
more and more
• Single-cup coffee
important role in
• Out of home
• Challenges from
• Challenges from
other coffee brand
in US market
• Coffee beans
KEY TO SUCCESS
• The market for single serve coffee is at growth phase.
• U.S. consumers seek after high-quality and sustainable coffee.
• The consumption at home increases these years.
• Even though the competition in the one cup-coffee
industry is intense, Nespresso targets a market that is
really narrow and high standard.
• Nespresso communicate an image of exclusiveness and luxury lifestyle.
• Enhance the brand essence and shift the positioning in consumer’s mind.
• Promote the quality and features of having espresso and its unique experience.
• Increase brand awareness by higher exposure in more aspects.
• Acquiring the target markets that have not been reached, and convert them into users.
• Enlarge the distribution of Nespresso in other American cities that welcome a
concentrated number of the core target group.
• Increase the trial of Nespresso coffee within our target group.
• Marketing Objective:
Increase the U.S. market share from 7% to 12% by 2016
by raising brand preference and expanding the market.
• Financial Objective:
2012 2013: 9.1% growth
2013 2014: 15% growth = 4.9billion of revenue
TARGET - DEMOGRAPHIC
• 35-49 years old middle to upper
middle class male and female who
have attained bachelor’s degree or
• Annual Household income:
DEMOGRAPHIC - 35-64 DISTRIBUTION
• In 2010, there are 31.6
M of males and 32 M of
of females in age 35-49
• Mostly located in East
and West coasts,
• Busy Busy Busy!
• Seldom spend time cooking and go mid-high end restaurants
• Active in social events, visit museums, galleries and concerts
• Sports fans and love outdoor activities – Skiing, cycling, tennis, golf
• Participated in financial investment and charity
• Only watch certain programs on TV- financial news, sports
• Online shopping after work
• Travels a lot for fun and for work, join airline memberships
• Shopping preferences
• High-end, luxury brand retail/department stores
• Crate & Barrel, Barnes & Noble, Bloomingdales, Nordstrom, Ann Taylor
• Coffee to them are energy booster . Also it’s a little treat for relaxation at work and to spend
leisure time alone or with colleagues/clients
• Spending 15-18.8 hours per week.
• Financial/Sports programs.
• 8% above average in radio consumption (6.5-6.8 hours/week)
• 4% acove average consumption in print media
• magazines, newspapers, travel/business/finance publications
• Enjoy reading
• 88.8% of Gen X are monthly internet users. 29-34 hours/weak.
• 74.5% using social media at least once/month (Facebook 65.6%, LinkedIn 41%, Google+
29%, Twitter&Pinterest 10%), and 28% don’t use social media
• 63% owns smartphones and 41% owns tablets
• 80% makes consumptions online.
START WITH CONSUMER
“I am leading an active and busy lifestyle in the
city and I love it. To escape, I enjoy sharing
warm and relaxing moments with the people I
love. I highly value quality in the products I buy
and I am willing to pay for it. I fully enjoy
treating myself with the special luxuries that
make life better and make me feel unique and
LET’S EXAMINE OURSELVES
For people belong to higher social classes who distinguish themselves by what they possess,
Nespresso delivers a strong commitment and dedication to serve and accompany their
customers into their ultimate coffee experience.
• Tone & Manner
Exclusive, uniqueness, privileged, elegance, inspirational
People don’t know how good Nespresso is!
They never try it!
• New geographic markets chosen based on:
• Closeness to our target group caracteristiques
• Density of the population
• Purchasing power
• Final decision:
Baltimore, MD; Hartford, CT; Whashington DC; Houston, TX;
°Opening repartition within two years to share the burden.
Increase trial to make people believe we are the best!
• Nespresso Experiential Tour
• Expand boutiques in new places
• Reach target audience in their “favorite” places
• Coop with other brand/Sponsor events that fit
NESPRESSO EXPERIENCE TOUR
• Raise awareness (visibility / Mobile-capsule stores) & Brand preference (trial)
• Communication: promotional sales; advertising; PR; direct marketing
• Multiple ways to get access to the trial
• Incentive to buy our products later on
• Agenda: from beginning of October to the end December
• Trial measurement
• Comparison sample distributed and return on promotion sales
• Sales metrics
• Number of sales per new boutiques (><existing stores)
• Increase in overall sales + growth
• Further: instill more pressure on the best sales channel
• New customers acquisition
• Subscription to the Nespresso Club
• Conversion through our promotional sales
• Pre-test: focus group
• Post-test: public relation, social media, direct marketing, advertising (Billboard and print)