The Nespresso Coffee Machine Issues - Case Study Example

The Nespresso Coffee Machine Student’s name: Instructor’s name: Course code: Date of submission: Introduction Integrated marketing communication is the process that entails all the elements of marketing. The integrated marketing communication aims at integrating the communication channels to ensure that the needs of the customers are met and also the competitive advantage of an organization is achieved (Jobber 2001). This means that all the stakeholders in marketing function are incorporated into marketing strategy. The process of integrated marketing communication ends with the feedback from the customers which is then used to make appropriate marketing decisions. This paper will discuss the concepts of integrated marketing communication in relation to Nespresso coffee. Company background and product description Nespresso was founded in the year 1986 with the aim of providing everyone with a cup of tea which is perfect in terms of meeting the needs of the customers. Since the company was founded, it has managed to revolutionalise and redefining the way the customers enjoy the coffee. This means that the company has been offering variety of coffee products and this has helped to meet the diversified needs of the customers from the global market context (Nespresso 2015). The aim of the company is to provide coffee with highest quality and ensure that the customers have positive experience when using the coffee products. The company competes both in the business to consumer business and business to business markets. The aim of engaging in both b2b and b2c markets is to ensure that the customers do enjoy the coffee both in the local markets and they can enjoy the coffee products wherever they are in the global market. The company uses nespresso coffee machine to ensure that the quality of the coffee is high to meet the needs and expectations of the global customers. The integrated marketing communication has been the strategy that links the customers with the management of the company. The customer feedback is provided and the management reacts appropriately. The nespresso coffee product which is provided by the company is of high quality. The nespresso coffee machines ensures that the coffee products are of high quality and they meet the needs of the customers. In addition, the coffee product is different flavors to meet the diversified needs of the customers. The lingering aroma of the coffee product makes it attractive to the customers hence creating a positive experience among the customers (Nespresso 2015). The nespresso coffee product therefore is appropriate in meeting the needs of the customers leading to competitive advantage. Target market Nespresso coffee is sold in more than 62 countries globally. This means that the company targets the global customers applying the sustainable growth strategy. The target market for the nespresso coffee is middle and high income earning customers. This is because the customers are able to pay for the coffee product. The other target market for nespresso coffee product is the customers aged between 15 and 35 years old (Kerin 2012). This is because the customers at this age group require necessary nutrients they require for effective growth. Once the customers have been served with the coffee, they are asked to provide their feedback so that the management can understand the extent to which they were provided with the quality products. Once the marketing strategy has been implemented, the customer feedback is then used to assess the effectiveness of the marketing strategy. Positioning strategy The market positioning strategy has been applied by nespresso. This positioning strategy is applied with the aim of improving the global competitiveness of the organization. The market positioning strategy focuses on how the company can improve its global market by attracting and retaining the customers (Kerin 2012). However, this can be achieved by focusing on the customer needs and ensuring quality coffee product to meet the needs of the customers and this helps to improve the competitive advantage of the organisation and nespresso coffee. The rationale of market positioning strategy is that it helps to improve the market share of the company. The strategy that has been applied by the company is both b2b and b2c market. This strategies help to meet the needs of the customers wherever they are. The nespresso coffee does not serve the domestic customers only but also the global customers through b2c business. The other rationale of market positioning strategy is that it helps to improve the competitive advantage of the organisation (Kotler & Kevin 2009). The global customers will be able to access the nespresso coffee wherever they are and in this regard the sales of the company will increase by building loyalty among the customers due to accessibility of the nespresso coffee. It also helps to build good reputation of the brand. The company operates in more than 60 countries and this means that the brand is recognized globally. In this regard, the brand is recognized globally thus improving its competitive advantage. Communication goal The goal of the communication is to improve the relationship between the customers and the nespresso through public relations. The success of nespresso has been influenced by the ability to provide quality coffee and also building strong relationship with the customers (Kotler & Kevin 2009). The management of the company offers unique business model which helps to improve the interaction between the organisation and the consumers. For instance, the consumers are provided with the opportunity to give their feedback so that the management can make decisions which meet the needs and expectations of the customers. In addition, the success of nespresso has been determined by three factors which have been considered by the management to be the key success factors. The first factor that has been considered is the quality of the coffee product. The nespresso coffee machine helps to ensure quality of the nespresso coffee. This improves the satisfaction of the customers hence the company has been experiencing repeat customers. The other important factor considered is the relationship with the customers (Kotler & Kevin 2009). There is a club for members globally and this helps to promote the interaction between the customers and the organisation. The end result of these drivers of growth is sustainable business growth success. The company has managed to meet the needs of the global customers hence improving the competitive advantage. On the other hand, the management of the organisation has managed to develop and implement integrated marketing communication effectively. This is because one marketing of the coffee is done online and the customers can access the company website to search for the information they want. For instance, the consumers can be able to look for the coffee product they want and where they can access the product. The customer feedback is also managed effectively. The website of nespresso provides the customers with the opportunity to leave their feedback regarding the satisfaction of the coffee and the services they received (Goldstein & Lee 2005). In this way, there has been good relationship between the customers and the nespresso hence improving the positioning of the nespresso coffee globally. In this effect, the communication goal of applying customer relationship strategy is to help to improve the competitive advantage of the nespresso. Message strategy and executional tactics The message that is employed by the organisation to improve the competitive advantage of the organisation is achieved through social media marketing. The marketing team has used the social marketing strategy to ensure that the frequent users of the internet can be able to access the message which is being passed (Goldstein & Lee 2005). The message which is communicated to the customers includes the pricing strategies which are applied by the organisation. The consumers should be provided with pricing information so that they can make appropriate buying decisions. Furthermore, the message that is communicated to the customers includes the coffee flavors which are available. This helps the customers to make appropriate decisions regarding the flavors which can meet their needs (Goldstein & Lee 2005). In this effect, marketing communication is effective because the consumers will be aware of the flavors available in the market and this means that the marketing goals will be achieved effectively. The tactics which are used by the marketing team of nespresso to market the nespresso coffee include using loyalty cards. There are consumer cards which are provided by the company to ensure that the customers are maintained in the organisation. This implies that the customers can also provide their feedback which is helpful in making strategic marketing decisions (Jobber 2001). The other executional tactics which is used by nespresso is the use of the website of the company. The consumers can access the information about the nespresso coffee and they can also provide their feedback regarding their satisfaction and their expectations in the company. Promotional tools and media strategy The first promotional mix that is applied by nespresso is personal selling. The marketing team has the responsibility of ensuring that the loyal customers are provided with relevant information. For instance, the emails are sent out to regular customers informing the customers the changes in terms of pricing and the development of the coffee product. The reason why personal selling is used is to help improve the relationship between the organisation and the consumers thus maintaining their loyalty (Jobber 2001). The strategy has been effective since it has helped to improve the relationship between the customers and the organisation. The other promotional mix that is applied by the organisation is advertising. The nespresso markets its products using the social sites like Facebook and Twitter. The aim advertising is to create awareness of the coffee products to the customers (Jobber 2001). This strategy has been effective since it has helped to create global awareness of the nespresso coffee. The end result is improved organizational performance in the global coffee market implying that the strategy has been effective in its application. The public relations have also been applied by nespresso to improve the perception of the global customers to the coffee product. The customers are invited to the annual general meeting and they are provided the opportunity to give their feedback regarding what they think about the nespresso coffee product. In addition, the sales promotion has also been provided to attract the attention of the customers (Kerin 2012). For instance, during the festive seasons, the customers are provided with discounts so that they can develop loyalty with the nespresso coffee product. In this effect, the sales promotion has been effective and has helped to improve the performance of nespresso. The nespresso also creates good working relationship with the customers by inviting them to symposiums which held regularly to discuss the progress of the nespresso. During the symposium, the management of nespresso and the consumer find the opportunity to interact and exchange ideas and this helps to formulate strategic plans that meet the needs and expectations of the customers and this lead to improved organizational productivity. Conclusion Nespresso is one of the leading coffee houses globally. The company has effective business model which gives the customers the priority. One of the main coffee products provided is nespresso coffee which is being consumed in more than 20 countries globally. The market positioning strategy has been applied by nespresso hence meeting the needs of the customers. The communication goal of nespresso is to improve the competitive advantage by creating good working relationship between the customers and the organisation. In addition, the promotional strategies that have been applied by nespresso include persona selling and advertising as well as sales promotions. Works Cited Goldstein, D & Lee, Y. (2005). "The rise of right-time marketing". The Journal of Database Marketing & Customer Strategy Management, Vol. 12, No. 3, pp. 212–225. Jobber, D. (2001). Principles and Practice of Marketing, Third Edition, McGraw-Hill Education. Kerin, R., A. (2012). Marketing: The Core. McGaw-Hill Ryerson. Kotler, P & Kevin, K. (2009). "1". A Framework for Marketing Management (4th ed.). Pearson Prentice Hall. Nespresso (2015). Our Company, retrieved on 5th May, 2015 from http://www.nestle- nespresso.com/about-us/our-company Read More