The paper "Capitalizing on the Nostalgic Appeal of a Product to Build Brand Loyalty" is a great example of a Marketing Case Study. The product that I chose to study in the Australian market is the most famous product called Nespresso coffee. This coffee is prepared by Nespresso Company which was launched in 1986 in Switzerland before it became a global brand. This type of coffee is harvested, roasted and packed once in hermetically capsules to seal its aroma thus maintaining its freshness. This coffee in capsules is brewed us an easy to use the coffee machine (Nespresso, 2012). Since the introduction and production of Nespresso coffee in 1986, the brand has redefined how millions of people enjoy the today not only in Australia, but the world over. In this report, I am going to describe the target market, which needs Nespresso, the competitive advantages, how this product has a greater achievement in Australian coffee market and how it has persistently grown and evaluated its marketing mix up to registering an annual gross turnover of almost US$ 3Billion as per the 2011 coffee analysis. The target market Nespresso coffee has increasingly become a drink of most Australians.
Nespresso aims at providing nutritional requirements and giving a refreshing taste to its customers. The biggest consumers of this product are adults though even children like it. Nespresso coffee as a consumer’ s daily necessity supplies rich proteins and fats. Not only do the consumers of Nespresso expect to gain nutritional value, but also sipping a cup Nespresso with friends or family members is an occasion to always remember (Nespresso, 2012). The total Nespresso market in Australia can be segmented as per the following aspects: The Market Segment Profile Demographic Characteristics: Age group: I spent two days in Perth City to observe the consumers of Nespresso coffee.
Their ages look like 25-70 years. Most of them were parents who also buy Nespresso for their children. Gender group: Nespresso coffee attracts almost all Australian males and females who take upto50% respectively. Because of the brand’ s unique taste, most people prefer it to its competitor like Espresso manufactured by Ethical Coffee. Geographic Characteristics Region: From the figures of Nespresso website, Australia makes 50% of the Nespresso sales in Oceania. (Nespresso, FAQs, Q10, 2012) this therefore suggests that almost 64% of Australian population do enjoy this beverage. Lifestyle: Nespresso connects with a good percentage of Australians whereby around 65% of households have Nespresso (Nespresso, FAQs, Q3, 2010).
A good number of Australian adults ranging from housewives to top Executives always consume Nespresso coffee. Therefore, this shows that Nespresso coffee has become their daily necessity, and sipping a cup of Nespresso with friends or spouse has become the Aussie lifestyle. Behavioral Characteristics Benefit expectation: Nespresso is a very healthy beverage that is rich in proteins and it does give a refreshing taste and an ever-alert mind to students and adults.
Moreover, Nespresso is a kind of beverage that contains natural fats and carbs (Nestle Annual Report, 2011). Volume usage: Nespresso is packed in capsules of 5 and 6grammess where each capsule is sold as a single entity. Therefore, this affords the Nespresso customers to buy the number of their capsules according to their abilities.
FQAs, Q.1, Nespresso 2012, http://www.nespresso.com.au/Pages/Nespresso-faqs.aspx
FQAs, Q.2, Nespresso 2012, http://www.nespresso.com.au/Nespresso-faqs.aspx
FAQs, Q.10, Nespresso2012 http://www.Nespresso.com.au/Pages/Nespresso-faqs.aspx
Nespresso 2012 http://www.Nespresso.com.au/Pages/product-information-Nespresso.aspx
Vieira, G 2012, ‘Nespresso’s growth, Maclean's; 6/4/2012, Vol. 125 Issue 21, p31-31, 1/3p, Business source complete, EBSCOhost, http://web.ebscohost.com/ehost/detail?sid=4fba7b0f-1e4b-4c19-97e0-0684f2e29266%40sessionmgr13&vid=1&hid=11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=76358164 http://www.Nespresso.com.au/Pages/Nespresso-surfgroms.aspx
Myresources 2012, ‘Toast to Australia ‘, http://myresources.com.au/downtime/food-and-drink/13-general/4919-toast-to-australia
Espresso and Nespresso Case Study. (2008, October). Capitalizing on the Nostalgic Appeal of a Product to Build Brand Loyalty, p1-11, 11p, 3 Color Photographs, 1 Chart, 2 Maps, Business source complete, EBSCOhost, http://web.ebscohost.com/ehost/detail?vid=3&hid=16&sid=0f06dffc-2a9a-4213-b8d9-3d2cf41d1d2d%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=36349304
Graph 1, Espresso, source: http://www.Espresso.com.au/Pages/product-information-Espresso.aspx
Graph 2, source: source http://www.Espresso.com.au/Pages/product-information.
Graph 3, source: http://www.Nespressoe.com.au/Pages/Nespresso-surfgroms.aspx
Graph 4, source http://www.Espresso.com.au/Pages/product-information
Graph 5, source http://www.Espresso.com.au/Pages/product-information
Mulier, Tom (4 March 2011). "Denner to Resume Nespresso-Compatible Capsule Sales After Ruling". Bloomberg.
Nestle Annual Report 2011
The Nestlé Coffee Report Faces of Coffee, Nestlé, 2012.The Nestlé Sustainability Review, May