The celebrity endorsement of George Clooney has helped Nestle achieve worldwide sales of its Nespresso coffee machine hit £1.2bn in 2008, up 30% on 2007. This was the 8th consecutive year that the product's annual sales have risen by 30% or more.
So what is the secret of it's success? First launched in 1986, the process produces a decent espresso with no spillages to clean up and there are a variety of blends to choose from. Some analysts believe it is this simplicity which is the brand's popularity.
Advertising analysts say this is only half the story - they say Nestle's marketing has been "first class".
- Huge marketing centred on the celebrity endorsement of George Clooney.
- Data capture - consumers are automatically enrolled in a loyalty programme, receiving magazines and the feeling that they are part of an exclusive club.
- Minimising the places you can buy the pods from to just the company itself.
- Creating machines that only work with the capsules, ensuring repeat purchasing.
- Nestle work with manufacturers to keep the costs of the machines down.
Overall, a great example of marketing and advertising at work.
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