Launched in 1986, Nespresso is the worldwide pioneer and market leader in high-quality portioned coffee offering innovative coffee machines and flavours of capsules.
Nespresso has adopted a differentiation strategy through an image of exclusivity, based on high-quality products, an extensive customer service, and premium pricing. A key driver of Nespresso’s exclusivity approach is its route to market: Machines are widely available through a network of retailers whilst capsules can only be purchased via the e-commerce platform, a network of 215 high-end boutiques and 100 Customer Service Centers. The brand emphasises that it offers a whole lifestyle with its products. Consumers believe that buying Nespresso products makes them members of an exclusive club. Thus the company positions itself as a luxury brand and creates a sense of belonging to an elite group of customers which justifies prices that are considerably higher than market average. Nespresso’s coffee machines accepted only the brand’s capsules protected by a patent which expired in February 2012 though.