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STUDENT EXAMINATION NUMBER Y1401956
MODULE NO: __MAN00056M_________________
MODULE TITLE: ____Brand Management________________________________
Tutor: Prof. Fernando Fastoso___________________________________
Title: Final assessment____________________________________
Word Count: _3000___________

Brand
identity
1) Nespresso CBBE model (Keller et al., 2012:54-80; 2001).
a) Salience- ‘must have’ coffee services
Unique luxurious coffee experience.
Strong global presence,high brand awareness,high recall and high brand recognition a mong up-
scaletarget consumers and coffee lovers (exposure to Nespresso boutiques in expensive
neighborhoods, five star hotels and restaurants,recommendations by club members). Moderate
awareness among all others (connection to George Clooney, media buzz about the pioneering
company in the coffee capsulemarket).
b) Performance
Superior quality,total control, high
level of care(service) and innovation,
Service effectiveness (efficiency and
empathy), personalised services
c) Imagery
Sophisticated,stylish,personalized,up-
scale,capsulecoffeepioneer, coffee
connoisseur,superior experienceof
taste, elegant and unique, 30 and up
d) Judgments
Expertise, trust,
reliability,valuefor
money, good quality,
innovation
e) Feelings
Strong, sense of prestige
and high social status,
social excitement and
approval,sensual pleasure,
satisfaction,comfort,
delight, aesthetic pleasure
Nespresso club
membership- sign of
belonging, loyalty,long-
term relationship/
partnership, customer-
defining part of a luxury
brand
f) Resonance
Brand meaning
Brand responses
Brand relationships

Brand identity: innovators of trendy ‘must have’ coffee services
a) Salience
With a strong global presence (over 7 million club members and 410
Nespresso boutiques in 62 countries (Nestle Nespresso SA, 2015, Facts and
Figures)), Nespresso is recognised as an exclusive and privileged integrated
household coffee services brand ( Giehl et al,2012:93; Mintel Oxygen, 2014). It
is perceived as ‘the Louis Vuitton of coffee’ (Betts, 2010:14) and a ‘leading
quality coffee company for portioned coffee’ (Giehl et al, 2012: 93). It is known as
a pioneer of the coffee capsule system which overall, gives Nespresso higher
credibility, higher brand awareness recognition and recall, as well as, first priority
in purchasing considerations (Nestle Nespresso SA,2015; Khamis, 2012).
Nespresso has created a good recall in consumers’ minds by introducing
boutiques and celebrity endorsements. Brand’s ambassador, George Clooney,
mediates the brand identity and meaning and also increases credibility, mass
brand recognition, and a positive brand equity (Seno & Lukas, 2005; Petty,
Cacioppo & Schuman, 1983) 1( McCracken (1989) 2 the depth and breadth of
brand awareness increased by linking the brand directly to the Hollywood star’s
recognition, thus eliciting brand recall whenever the star and his activities are
mentioned (Keller et al,2012: 68-9).
Overall, Nespresso enjoys a high brand salience among high-end
consumers and coffee lovers that care about luxurious trends and superior coffee
quality. The golden N logo and ‘what else’ slogan is easily recognised by people
1 http://arno.uvt.nl/show.cgi?fid=115663

who possess knowledge about coffee quality and luxurious goods. Nespresso’s
research shows that the brand has “40% of aided and 90% of unaided brand
awareness level among the Swiss”. Brand asset valuator’s survey showed that
“brand awareness increased from 70% in 2000 to 96% in 2005”( Giehl et al, 93-
94).
The depth of brand awareness is high only among a specific group that
can easily evoke, recall and recognise the brand and the N logo because of
being exposed to Nespresso boutiques in prestigious neighbourhoods and
experiencing brand’s product in five-star hotels, restaurants and airlines. All
others who can’t afford to be in prestigious places moderately recognise the
brand (without having deep awareness) by being exposed to TV commercials
and outdoors advertisements with George Clooney. This celebrity linkage gives
additional cues in consumer’s minds and connects it with the Nespresso brand
but doesn’t specifically help consumers understand the services Nespresso
provides( Keller, 2001:9)3 Because of brand’s exclusivity the breadth of brand
awareness is relatively low. Nespresso is easily evoked in customer’s minds
when glamorous coffee consumption or capsuled coffee is mentioned but only
amongst the limited public. Other cues such as pleasure, luxury, and exquisite
coffee taste connect target consumers to the Nespresso brand and enhance
relatively low breadth of awareness among the general populace. Because the
brand is meant to be consumed only at home as an everyday luxury or in
Nespresso boutiques the breadth is not as extensive as it could have been.
3 http://www.sba.pdx.edu/faculty/ahutinel/Read/11.pdf

Brand Meaning
b) Performance: “Dedication to quality, style and service to delight consumers” (
Nestle Nespresso SA, 2015).
Primary ingredients and supplementary features: Quality, innovation and service.
Nespresso is an up-scale brand that offers ‘unique and luxurious coffee
experience’ by offering extensive coffee-related products of superior quality such as
high performance coffee machines, wide range of coffee capsules, chain of
glamorous café boutiques, exclusive club membership and 24/7 customer services (
Nestle Nespresso SA, 2015). “Nespresso‘s attractiveness rests on a number of peak
performances:” exclusive services and competent consulting, commitment to
superior quality of coffee and coffee machines and attractive product design (Lux-
Arenz, 2014). The outstanding performance “spans the entire valuation chain: from
the cultivation and stringent selection of the coffee beans, the roasting process,
packaging, all the way to the specially designed machines with a technological
innovation, the unique high-pressure brewing method”( Ibid). Nespresso has
pioneered award-wining innovations and designs and have been granted over
1.7000 patents; however , after expiration in 2011 patent extension on the coffee
capsule system was revoked by the European Patent Office ( BBC, 10 Sept, 2013).
(E-Fortrade, The Nespresso case 2014:39).
Service effectiveness, efficiency and empathy: Nespresso has its own distribution
channel which enables to provide 48h capsule delivery to the club members. Also,
Nespresso provides personalized customer services such as 24/7 information and
advice services online, on the phone and in boutiques ( BRW Financial Review,

Nespresso, Services, 2014). High level of care, flexibility and trust among the company
and Club Members is the forefront of Nespresso services. Customers can conveniently
send machines for repair and ask any questions related to the use of Nespresso
products through various channels at any time (Nestlé Nespresso S.A., 2014:4).
Machine assistance services include collection of the machine, providing a loan
machine, fixing and returning with a 6 month warranty extension. Over 70% of
employees have direct contact with customers (Nestle Nespresso SA, 2015) and
Nespresso boutiques “offer excellent customer service, which invariably equates to
detailed production information” (Khamis,2012). Despite such reputation Nespresso
received complaints on the efficiency of the service and promptness of performance
(Hussey,2013).
Product quality, variety and design: Nespresso coffee machines are smartly-designed,
convenient, innovative, sleek and stylish and of high performance and quality. They
“manage the exact balance between water temperature, pressure, quantity and speed”
to create a “perfect cup of coffee every time” with a single push of a button (Nestle
Nespresso SA, 2014).They produce delicious coffee with great ease and cleanliness; all
28 models are reliable and simple to operate (Ludlow, 2015) Range of revolutionary
designs suit different lifestyles and provide personalized coffee experience. Nespresso
offers 23 blends of unique aromas and flavours in elegant hermetically sealed pods
“designed to preserve the complex, volatile aromas and prevent oxidation” to create
finest coffee of professional quality (Nespresso,2014; Khamis,2012). Wide range of
tastes are offered online and can be delivered or picked up in a Nespresso boutique
‘responding to varied demands of individual consumers’ (Slywotzky, Weber, 2011).

Nespresso also offers premium selection of deserts and accessories to enhance the
coffee experience ( Nespresso,2014).
Premium Price: Nespresso’s own pods range from 29p to 35p per capsule (Mintel
Oxygen, 2014). Machine prices vary from 90 to 850 pounds (Ludlow, 2015).
c) Imagery: upmarket image.
Nespresso is all about sophistication, style, elegance, simplicity and privilege. Social
positioning of Nespresso is expressed through the brand ambassador George Clooney
who represents a personification of what the brand stands for (Independent, 2007). He
“embodies the glamorous, cosmopolitan lifestyle that Nespresso signifies” (Khamis,
2012).
Nespresso is for the chosen true and sophisticated “gourmet’’ coffee lovers who
have or strive to have a luxurious lifestyle (Khamis, 2012). Nespresso is more than a
coffee. It provides a genuine experience that combines luxury, perfection and pleasure (
McCann, Nespresso Case). It portrays privileged and elegant lifestyle to the target
consumer who is more likely to be successful, over thirty and have high income (Giehl
W., 2012:93). The brand claims to satisfy the need of convenience and ease of having
café quality coffee drinks, as well as, having personalised ‘feel-good’ experience and
sense of belonging in an exclusive Nespresso Club.
Nespresso succeeded to encrypt the luxurious brand image into consumers’ minds
effecting the strength of brand associations through rich image and intensive advertising
(Keller et al, 2012:64). A persuasive message of a ‘must-have’ product experience is

emphasized in Nespresso commercials and 4 the notion of pleasure and ease is very
clearly delivered to the public through the signature last coffee drop close-up in every
ad.5 Sensorial experience and pleasure in an elegant manner is communicated through
sophisticated luxurious design of products and high-profile atmosphere of the
Nespresso boutiques (Khamis,2012). Coffee capsules are called Grand Crus and are
portrayed as highly valuable collectible items (Independent, 2007).
Brand responses
d) Judgments - “Well recognized, loved and respected reference for highest
quality around the world” (E-Fortrade).
Nespresso is thought to be the best brand in the coffee capsule market. By the
media it received a coffee cult and a luxury goods status (FT, 2009). It is also seen as a
game changer of coffee consumption and a controversial brand in terms of sustainability
and ethics (Independent, 2007).
It is seen as an innovator and a trend-setter with an impeccable reputation and
distinctive design; a brand that appeals to the coffee-literate consumers (IMD, 2014;
Khamis, 2012). Through Nespresso Club Membership the company has “established
‘privileged relationship’ with consumers who show reciprocal enthusiasm for the brand” (
E-Fortrade, The Nespresso case 2014: 39). Nespresso has a high recommendation
rate:60% of Nespresso’s new customers come through word-of mouth and 50% of Club
members first experience the brand through existing members (Ibid, Lux-Arenz,2014)
which proves the high performance of the brand.
4 https://www.youtube.com/watch?v=jaLw8bklpgc
5 http://www.campaignlive.co.uk/thework/1220567/

Quality: Nespresso provides “unsurpassed product quality and proven coffee expertise”
for high-income households and individuals (Khamis, 2012). It reassures consumers on
quality by using rational justifications of better taste and exclusive services with low
perceived risk with its AAA quality program. While the quality of products and services
is rarely questioned, the prices for capsules are thought to be expensive (Lovell, 2014).
Blind tasting test by coffee experts at Choice found that Nespresso coffee from
capsules tasted ‘musty’ and ‘watery’ (Hurley,2013, BRW, July 2013). Another taste test
showed that “capsules lacked flavour and tended to have an artificial or plastic
tang”(Herron,2013).
Value for money. Nespresso has been able to maintain this claim of highest quality, so
it had time to develop into an important brand value: perfection, which is also repeated
in the brand positioning „perfect espresso indulgence“.
http://www.brand-trust.de/en/insights/articles/2013/Nespresso-strong-Brand.php
Credibility: Nespresso is perceived as a trustworthy and credible brand because of
being affiliated with Nestle-a well-known food and drink company. It is seen as Nestlé’s
mass-market product that is mainly successful due operational convenience rather than
better taste (E-Fortrade, The Nespresso case 2014:14-38). Expertise, trust and like
ability are achieved through opinion leaders, celebrity endorser George Clooney, and by
being featured in the media (independent, 2007, thu 4)).The fact that Nestle invented
the coffee capsule system gives it a high credibility.
Superiority: Boutique- status-based setting, brand-specific language and emphasis on
product quality and exclusivity protected by 1700 patents gives Nespresso highly

superior touch. People without even having taste the coffee know it should be better
than any other coffee and that the Nespresso club membership give a specific inclusion
into a glamorous coffee cllub( Nespresso,2014, Coffee).
e) Feelings
Nespresso is a “Feel-Good” brand that offers inclusion into an exclusive club for coffee
lovers. It portrays a strong sense of prestige and high social status.
The feel of a good life and luxury is often emphasized and linked to the brand by
including luxurious cars, up-scale setting and George Clooney in advertisements.
Social excitement and approval is also accompanied with sensual and aesthetic
pleasure, satisfaction, comfort, and delight. Nespresso boutique’s interior desing
reminds of a five-star hotel reception.(Wiggins and Simonian 10). As soon as the
customer is entering the Nespresso boutique, he lives a sensory experience:The smell
of the coffee, the look of the place: the warmth of the place, the taste: because
customers get the possibility to taste the coffee, the touch.
Elegance is felt through the sleek designs of machines and coffee pods, as well as the
up-scale digital presence.
http://www.nestle-nespresso.com/brand/brand-essence
Brand relationships
f) Resonance

Nespresso has a very loyal customer group base with a sign of belonging thanks
to the Nespresso club .
Attitudinal attachment (lovemark: they see it as a special purchase). Long-term
relationship with customers.
Sense of community: Their way to communicate through social media, mobile apps,
direct marketing, and all kinds of media...
Active engagement: Nespresso asked their fans to choose the outcome of one of their
famous ad.
“The machines are not the heart of the Nespresso business; the relationship with the
coffee drinker is” (Lovell, 2014).
The brand welcomes coffee lovers and invites them into an exclusive relationship.
Those who buy a Nespresso machine automatically become members of the Nespresso
Club.
membership loyalty-long-term relationship/ partnership, part of a luxury brand.
Instead of being a retail business “it is a relationship business that knows its customers
and can talk to them again and again.”
Nespresso Club membership- monthly newsletter, coffee tastings
Boutiques- the company calls “brand embassies” that provide opportunities for direct
tangible engagement with the brand and enhance privileged experience.(Khamis)
direct relationship with its customers: 24-hour customer service, by mail, phone, fax,
and email.
Nespresso inverts the logic of a coffee house as a “third place,” and patrons are drawn
not to socialise and relax but to pursue their own highly individualised interests.

boutique service is merely the human extension of Nespresso’s online presence,
whereby product information becomes increasingly tailored to increasingly
individualised tastes.(khamis 2012)
emphasis on the individual is sold in terms of elegance, expedience and privilege.
Nespresso boasts that over 70 per cent of its workforce is “customer facing,” sharing
their passion and knowledge with Club members.
“The Nespresso Club fosters direct relationships with our Club Members. Our coffee
specialists provide advice and guidance to our consumers; they are in constant dialogue
with the brand community. This constant interaction enables us to evolve to meet and
anticipate our consumers’ demands.”- welcomes them into an exclusive relationship
global community of passionate coffee lovers, Our Club Members have become true
brand advocates.
over 70% of Nespresso employees in the markets are in direct contact with consumers.
The Nespresso Club enables us to respond to individual needs and involve consumers
in the brand experience
Through our boutiques, our Customer Relationship Centres and our e-commerce
platform, we are able to deliver personalised services to our consumers.
“Our Club Members stand as the true representation of the Nespresso brand and a
lifestyle that is refined and inspiring.”- exclusive club for coffee-lovers
Long-lasting consumers relationship- one of the pillars of the brand strategy.
Works cited Part 1
Adrian Slywotzky, Karl Weber, 2011, Demand: Creating What People Love Before They
Know They Want It, Headline Publishing group
Betts, Paul, 2010, Nestlé Refines its Arsenal in the Luxury Coffee War,
Financial Times, 28 Apr. (2010): 14.
Davids K., CoffeeReview

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Hurley,2013, BRW, July 2013
Herron, 2013
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capsules

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