NespressoMarjan, Steve, Vasu, Mimoza, Bessie, Joanna

Company: Nespresso

• Nestlé Nespresso SA, is the pioneer and reference for highest-quality portioned premium coffee.

• Headquartered in Lausanne, Switzerland

• Nespresso machines brew espresso from coffee capsules, a type of pre-apportioned single-use container of ground coffee and flavorings

Company: Nespresso

• The company sells its system of machines and capsules worldwide

• Revenue primarily from capsule sales

• Market share in the U.S. in 2013 for single-serve coffee: 3% (compared with 72% for Green Mountain’s Keurig system)

Objective

Develop a corporate (B2B) subscription service for New York City small- to mid-size companies that choose to reward their employees with quality coffee.

Competitive Analysis

Single Serve Coffee

Providers

Coffee Shops

Standard Drip

Coffee

Energy Drinks

SWOT: Strengths• Successful consumer program – Existing offering

– Positioning and Strategic Approach (Differentiation strategy) “café connoisseurs”• Exclusivity based on high quality products

• Single-Serve System – Convenience meets Technology – Customizable Coffee & caffeine content at the push of a button. A single cup of gourmet coffee in seconds brewed in

seconds

• Coffee pods in multiple flavors – Wide ranging flavor option – Satisfy a discernible palate and your every whim with the change of a pod. The ability to brew anything from Espresso, to

flavored coffees and teas at your discretion

• Recyclable – A partnership between Nespresso and The Rainforest Alliance – Sustainable Quality (A unique collaboration improving the situation for coffee farmers, and communities to create a

sustainable supply of coffee at the highest quality)

• Nespresso machine loan program – Lowering the barrier of entry to gain market share

• Cost savings – Buying coffee from a store becomes expensive compared to the subscription program

• Customer service – They have over 100 customer service centers – Offer consumers an integrated lifestyle approach towards coffee

SWOT: Weaknesses• Prepackaging (pre-ground coffee)

• Cost

• Coffee is not compatible or interchangeable with other types of machines

• Availability and Distribution of Product

• Lack of Brand Awareness

• Environmental Concerns

• Cost of Machine

• Single Serve only

SWOT: Opportunities• First high-end company to offer a subscription program to

corporations

• Lack of Brand Awareness

• Incentive programs

• Corporate Purchasing

• Single Serve

• Subscription Program to general consumers

• Status Symbol

• Cost Savings (single serve as opposed to purchasing Starbucks)

• Controlling Strength of Coffee

• Comfort level/convenience

SWOT: Threats

• Increased competition in the same market place

• Competitive pricing for Single Serve coffees

• Gourmet Coffee Shops

• Branded Coffee Store Chains

• Health Concerns

• Alternative Caffeinated beverages

• Loyalty to community and local Coffee Shops (Support for

Small Businesses - buy locally)

Goals

• Launch Nespresso subscription program that conveys convenience and quality

• Drive awareness of new subscription program and break into small to mid-size market

Positioning Statement

The Nespresso corporate subscription program is the convenient, quality coffee program for small to mid-size companies to reward their employees.

Audience Profile

• B2B, New York City small- to mid- size businesses

• Businesses who care about their company culture and want to reward their employees with quality lifestyle, which equates to quality coffee such as Nespresso.

• Offices Managers, HR Departments, Involved Executive Teams

Perpetually tired

Enjoys coffee

Strong Corporate Culture

Enjoys high quality of life

Foodie

New York City

Target audienceTarget Audience Description Message

General Audience Everyone • New coffee subscription program for small to mid-sized companies

Office ManagersThose who order supplies for an office space

• Convenience• Be the coffee hero of the office

HR Departments / C-level

Corporate departments with vested interest in driving positive company culture & employee retention

• Treating employees well with quality coffee.• Drive employee retention with overall quality of

office life.• Employees stay later because they don’t have to

leave the office for their coffee fix.

Employees

Any employee who may be vocal enough to drive and participate in company culture

• Employees want to work for a company that cares and treats their employees well.

Pricing

Tier Average Cups per Month Cost per Month Individual Cost

Breakdown

20- 49 people 500 cups of coffee $450 90 cents per cup

50-99 people 1000 cups of coffee $900 90 cents per

cup

100-199 people 2500 cups of coffee $2000 80 cents per

cup

200-500 people 6000 cups of coffee $4500 75 cents per

cup

Launch & Campaign

Launch

20% Advertising 32% Sales 20% Sampling

3% Social Media 15% Events 10% Loyalty Prog.

Advertising

45%Magazines

30%Billboards

25%Newspaper

Sales

Social Media

#NespressoAfterDark

10%Facebook

70%LinkedIn

20%Twitter

Events

Loyalty Program

• Mobile scan code for loyalty• Environmentally friendly campaign• Flavor of The Month Campaign• Discounts and Loading Promotions• Bulk Rate Pricing for Companies• Social Media Campaign (FB, Twitter, and Tumblr)

What flavor are you• Listicals ( Buzz feed)• Nespresso Branded wraps on NYC Buses in and

Subways• Online Purchasing discounts

Case Study: Flatiron Area

• High concentration of businesses

• Sampling cart / Station

• Supporting Billboards – Subway & Around Flatiron Plaza

Barista quality, in your office. A reason to work late.