Essay Nespresso SA part 2
Identification of target audiences
Traditionally, the company focused on the large customer group since coffee is consumed by the broad customer group. At the same time, the youth is the most perceptive customer group, when innovations come into play. What is meant here is the fact that young customers are more likely to respond to the appearance of the new highly technological product in the market compared to the older customer group, who is more conservative and is not always willing to change their habits (Breneman & Taylor, 2006). To put it in simple words, younger customers would be more likely to buy the new coffee machine of Nespresso than an elderly customers, who are accustomed to use conventional coffee machines and do not always like innovative products. In this regard, the target audience of the new brand is very important to determine since the branding focuses on the specific target customer group. The company may focus on the younger customer group to sell its products (Robbins & Finley, 2005). The focus on the younger customers can help to improve its brand image and increase sales because the youth is more active customer group compared to older customer groups. This is why the youth can also stimulate other customer groups to purchase the new Nespresso coffee machine.
Identification of competitors
At the moment, Nespresso has many rivals and its position in the market is not as dominant as it used to be in the early 1990s. One of the rivals of the company is the Ethical Coffee Company SA launched by the former Nespresso CEO, which has taken a large market share introducing compatible biodegradable capsules for the Nespresso machines (Peters, 2012). However, the main rivals of Nespresso are the largest coffee machines manufacturers, such as Acorto, BOSCO, Bravo, Espressa, and others (Peters, 2012). The company can take advantage in its competitive position, if it introduces the innovative coffee machine using advanced technologies that have never been applied before by either rival of Nespresso.
The design elements of the brand communications and their impact on the positioning of the brand to specific markets and audiences
The brand communications should be accurate and concise. The brand design should reach the target customer group precisely. In this regard, the revived brand should be eye-catching, original, and dynamic. The brand should focus on the youth and the advertising agency should help Nespresso to revive its brand image and to attract its target customer group.
The brand’s sustainability in its marketplace
The brand’s sustainability is very important for the survival of Chrysler in the market. The brand sustainability involves the fuel efficiency and the high productivity of the new coffee machine of the company. In this regard, the new coffee machine should be energy efficient with the minimal coffee and water waste and the maximum use of the energy. For instance, the new coffee machine should consume less electric power, cook the coffee faster and consume ingredients efficiently.
Conclusion: the next five years for the brand
The introduction of the new coffee machine this year opens wide opportunities for Nespresso to revive its brand fast because the new coffee machine is very comfortable to use and, therefore, it may be very attractive for the target customer group. This year the company can complete the development and testing of the product and introduce it in the market. The introduction of the new coffee machine should be preceded by the intensive, aggressive promotional campaign. The next year, the company can expand sales of its new coffee machine in all target markets, where the company is present at the moment. In 2016, the company should start receiving return on investments and the new coffee machine should start bring profits to the company as the costs of the research and development along with the promotion of the new product will be returned to the company. In 2017, the company should try expanding its market share further entering new markets, where the company has never been operating so far. In this regard, Asian markets are particularly attractive for the company. The company should focus on Chinese, Japanese and Indian markets, which are the most prospective markets in Asia so far. On the fifth year, i.e. in 2018, the new Nespresso coffee machine should become one of the world leaders among coffee machines which should hold its leading position due to its innovativeness and use of high technologies allowing users to make their coffee machine interactive and manageable with the help of their smartphones.
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