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.

1. Eli Hua
Jenny Kuei
Elaine Lorent
Haoran Fan
Grace Liu

2. COMPANY BACKGROUND
• Overview (Grace)
• Nespresso Analysis (Haoran)
• Target Market (Jenny)
• Marketing Strategy(Eli)
• Action Plan(Eli, Elaine)
• Financial Analysis(Elaine)
• Measurements(Elaine)

3. THE COFFEE INDUSTRY
• Consumers aged 60 and plus
• Consumers aged 40 to 59
• Consumers aged 25 to 39
• Consumers aged 13 to 24

4. COFFEE PRODUCTS
 Roasted Coffee
 Single –Cup Coffee
 Instant Coffee
 Ready-to- Drink Coffee

5. MARKET TREND OF COFFEE
• 83% of adults drink coffee in the U.S.
• Hispanic Americans have the highest
coffee consumption
• At-home consumption
• Demand for convenience due to fast-
paced lifestyle
• Increase in environmental awareness
• Health benefits of coffee
• Premiumization is a key driver
• Quality drives profitability

6. 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

7. PRODUCT LIFE CYCLE

8. COMPETITION ANALYSIS

9. COMPETITION ANALYSIS

11. ALTERNATIVES
• Tea
• Increasing number of the U.S.
population drinking tea rather than
coffee
• Healthier choice
• Larger choices in term of tastes and
preference

12. NESPRESSO ANALYSIS
• Customers
Female (60%), Male (40%)
Age: 35-49
High income
High social class
High purchasing power
• Product
Finest green coffee
Selected Capsules and innovative machines

13. NESPRESSO ANALYSIS
• Service
Direct relationship
Nespresso Club
• Distribution
Official website
Boutiques
Well-known Department Stores
• Market Share
7% in U.S. market
Contributes 15% to global sales

14. SWOT Analysis
strength
• Hign-quality
coffee
• Variety and
innovation
• Genuine coffee
machines
• Energy saving
and
environmentlly
friendly
• Strong customer
service
• Nespresso
Boutiques
• Perfect B2B
solutions
• Luxury image
weakness
• Expensive pricing
• High costs
• Not to go service
• Limited
distribution
opportunity
• Ethical and
sustainble
business trend
• Coffee becomes a
more and more
popular drink
• Single-cup coffee
plays an
increasingly
important role in
total coffee
market
threat
• Out of home
• Challenges from
other drink
alternatives
• Challenges from
other coffee brand
competitors
• Coffee
consumption habit
in US market
• Coffee beans
supply

15. 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.

16. CRITICAL ISSUES
• 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.

17. MARKETING STRATEGY
• 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

18. TARGET - DEMOGRAPHIC
• 35-49 years old middle to upper
middle class male and female who
have attained bachelor’s degree or
more.
• Annual Household income:
$60,000+

19. 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,
Northeast

20. DEMOGRAPHIC – EDUCATION ATTAINMENT

21. DEMOGRAPHIC – POTENTIAL MARKET

22. PSYCHOGRAPHIC
• 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

23. MEDIA EXPOSURE
• TV
• Spending 15-18.8 hours per week.
• Financial/Sports programs.
• Radio
• 8% above average in radio consumption (6.5-6.8 hours/week)
• Print
• 4% acove average consumption in print media
• magazines, newspapers, travel/business/finance publications
• Enjoy reading
• Internet
• 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
• Mobile
• 63% owns smartphones and 41% owns tablets
• 80% makes consumptions online.

24. 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
privileged.”

25. LET’S EXAMINE OURSELVES
• Positioning
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

26. OUR BARRIER
We have..
Premium coffee
Aspirational image
Luxury experience/atmosphere
BUT..
People don’t know how good Nespresso is!
BECAUSE…
They never try it!

27. IDEAL LOCATIONS
• 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.

28. ACTION PLAN
Goal
Increase trial to make people believe we are the best!
Our Acts
• Nespresso Experiential Tour
• Expand boutiques in new places
• Reach target audience in their “favorite” places
• Coop with other brand/Sponsor events that fit
consumer lifestyle

29. 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

30. NESPRESSO EXPERIENCE TOUR

31. REACH IN THEIR FAVORITE PLACES
• Airport
• VIP Lounge
• On board (First & Business Class)
• Hotel & Resorts
• Hotel rooms
• High end vacation resorts

32. COOP WITH OTHER BRAND/SPONSOR EVENTS
• Cultural
• Museum lounge
• Exhibition cooperation
• Sport
• ATP Tennis Tours

33. MEDIA TIMELINE – 2014

34. FINANCIAL

35. EFFECTIVENESS MEASUREMENT
• 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
• Communication
• Pre-test: focus group
• Post-test: public relation, social media, direct marketing, advertising (Billboard and print)

36. THANK YOU!