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  • Writer's pictureTigger Ho

STP Model — Nespresso Hong Kong

Project Background


Nespresso is a famous coffee product brand established in Switzerland in 1986. At first, their business provided the office coffee capsule and their patent coffee machine to run the Business-to-Business model. In 1988. Nespresso had shifted the strategy to Business-to-Customer by “Ultimate Coffee Experience” marketing direction (Khamis ,2012) and opened their first Nespresso Boutique in Paris in 2000 (Nespresso, 2021a). They built the Nespresso Club to provide a superior shopping experience to their customer and uplifted the coffee product to be a premium level.


In Hong Kong, Nespresso has six physical boutiques and 2 Pop-up Stores in 2021 (Nespresso HK, 2021). Customers can also use their online boutique and partnered channel HKTVMall (HKTV MALL, 2021) to buy their capsules. Moreover, Nespresso HK has their Facebook, Instagram Page and YouTube Channel for their Social Media Marketing Channels. In studying Nespresso Hong Kong marketing strategy, this project base on STP Model: Segmentation, Targeting, and Positioning, these three areas to analyse.




“World Exploration” Marketing Campaign


Figure 1. NESPRESSO World Explorations web page (2021)

Figure 2. NESPRESSO HK World Explorations IG Post (2021)


Nespresso launched their “World Exploration” capsule coffee product series in March 2021. The concept of this product series is “A Tasteful Journey with Every Cup”, to discover unique and typical tastes around the world. It has six coffee tastes from different cities, and customers can feel about travelling the world through enjoying Nespresso’s coffee.


Segmentation


“Hong Kong Young adults” and “Coffee Aficionados” are the segmentations of the “World Exploration” campaign. Their personability is Travel Lover, Foodie, and Music Enthusiasts. They are the “Experiences” in the VALS Framework who are high resources and innovation

and motivate by Self-Expression.


Figure 3. VALS Framework of “World Exploration” Campaign Segmentation


Targeting


Figure 4. World Explorations Facebook Post (2021)


Customer Life-cycle


Nespresso designed the “World Explorations” Campaign for Acquisition phase in the customer life-cycle in order to attract their target customer group — young adults and coffee lovers, toward their brand and increase the brand awareness by joining the online activity — Creating and Sharing their own “World Exploration” Photo on Nespresso’s Facebook and Instagram Page. The winner can reward the Nespresso Coffee Machine and World Explorations capsules coffee set. The Prize could arouse the audiences’ desire. At the same time, Nespresso can spread out this online activity by the participants share the photos on their social platform and influence their community members for Expansion.


Driving Force


Nespresso invited Hong Kong young singer-songwriter, Terrance Lam, to share his “World Exploration” Journey experience in an online video. The video posted on Nespresso’s Facebook, Instagram and YouTube channel create a Positive Motivation by Emotional Arousal — daydreaming of travel to enjoy a flavored coffee, Cognitive Arousal — a memory of a journey around the world, and Physiological Arousal — Enjoying a tasteful coffee for relaxing.



Figure 5. Terrance Lam” World Explorations” Online Video (2021)

Figure 6. Terrance Lam IG Page (2021)


Maslow’s hierarchy of needs model


The “World Exploration” Campaign target to appeal to the Social Needs level for positioning the products. Nespresso Coffee is not only satisfying the Physiological Needs of drinking, but it is also fulfilling the Social Needs of sharing travel enjoyment and experience with friends — Being the “World Explorer” Together. People reduce the tension that they cannot travel during Covid-19. The marketing campaign drives the target audiences’ Affiliation Needs by sharing the “World Exploration” Photos and tasting the Nespresso Coffee to perform the social behavior and relaxing when travelling.



Figure 7. Maslow’s hierarchy of needs model — “World Exploration”


“Nespresso Gourmet Weeks — A Coffee Gastronomy Experience” Campaign




Figure 8. NESPRESSO Gourmet Weeks 2021 web page (2021)


“Nespresso Gourmet Weeks” is a marketing event that Nespresso cooperates with the worldwide top chefs to encourage them to reexplore the possibilities of Nespresso coffee and fine dining since 2012. This year, the Gourmet Weeks comes to Hong Kong and work with eight local master chefs to create a unique and delicate cuisine by integrating Nespresso Professional’s first certified Organic coffee. Hong Konger can enjoy these tasteful dishes at collaborative restaurants. To promote this event, Nespresso’s marketing team design a promo video, chef interview videos, Facebook and Instagram Posts, and advertorial (Tatler Hong Kong Magazine, 2021)on social media.




Figure 9. Nespresso Gourmet Weeks Advertorial (2021)


Segmentation


According to the audience background in the Media Kit (Tatler Hong Kong Media Kit, 2021), the leading age group is 25–45 years, their annual personal income and household income is $2.5M and 3.2M. Also, their interest is about Lifestyle, Travel, Entertainment, Shopping, Food and Dining. Based on those dates, we can define that High resources, innovation and motivation by Achievement — “Achievers” at the VALS Framework is the segmented target audience of the “Nespresso Gourmet Weeks” Campaign. They focus on Lifestyle and prefer premium products and dining that demonstrate success to their peers.



Figure 10. Tatler Hong Kong Magazine Audience data (2021)

Figure 11. VALS Framework of “Nespresso Gourmet Weeks” Campaign Segmentation


Targeting


Driving Force


Experience the superior dining created by the celebrated chefs is the Positive driving force to satisfy the unfulfilled desires. The customer’s previous learning — Experience of Nespresso is that they provide their customers with an excellent quality service. Moreover, the thinking process — Cognition is that Nespresso is the Luxury Coffee Brand that cultivates coffee as art to grow the best in each of us (Nespresso, 2021b). The “Nespresso Gourmet Weeks” Campaign can lead a Cognitive Arousal to motivate the Achievers to fulfil their needs.


Maslow’s hierarchy of needs model


The Achievement need at the Ego Needs Level is the strong motivation to drive the targeted audience to arouse their desire on the “World Exploration” Campaign. The High-End dining experience does not only for the Physiological Needs. Apparently it is for satisfying Prestige and Self-Esteem to accomplish their self-confidence. Nespresso utilizes this marketing event to transmit brand awareness and trigger customer’s desires.



Figure 12. Maslow’s hierarchy of needs model — “Nespresso Gourmet Weeks”


Nespresso Positioning


Points of Difference Associations


Nespresso finds the proper location in the consumer’s minds by delivering superior value in the marketplace. They offer an excellent luxury shopping experience through their boutiques that same as premium goods brands. Their attentive customer service, such as 24 hours ordering service and exclusive loyalty program “Nespresso & You”, provide desirability to the customers. Furthermore, provide rare varieties of capsule coffees from around the world as well as Limited Editions. Customers can enjoy a cup of high-quality Nespresso conveniently at their stylish design home or workplace. This brand positioning makes Nespresso standing out from competitive brands. It finds that Nespresso has an aligned global brand position in order to maintain the coherence brand awareness for the public.




Figure 13. Nespresso Boutiques Hong Kong photo (2021)

Figure 14. Nespresso and You (2021)

Nespresso utilizes the “World Exploration” Campaign to associate with Lifestyle image and identity rather than coffee products in the customer’s cognition. The story of the worldwide traveler delivers the message that Nespresso Limited Editions coffees are rare varieties from around the world. The experience of tasting these special flavors is unique and incomparable.


In the “Nespresso Gourmet Weeks” Campaign, Nespresso collaborates with local famous “Michelin-Star Restaurants” to create a unique extravagant menu for customers. This epitome of Luxury and Prestige posit to the target customer’s mind that Nespresso is highly different from other coffee brands.


The Lifestyle and Luxury positioning approach by these marketing campaign support Nespresso’s standing — Cultivating coffee as an art, Delivering Extraordinary (Nespresso, 2021b). Customers perceive that Nespresso is comparatively higher quality than Instant Coffee Products from Nespresso’s Luxury image. Moreover, their products have enhanced to the Augmented and Potential Product-Level that build the unique functional associations, representing the brand in the mind of the consumers. So Nespresso can successfully occupy a separated and valued position in the target customer’s mind.




Critical Reflection


In the Beginning, the decision to use Nespresso global marking campaign or Hong Kong campaign for studying is my significant consideration. The objective of this project is to investigate the STP Model application in the brand marketing strategy. Therefore I have chosen Nespresso Hong Kong because it is an opportunity to understand how the worldwide brand implements the segmentation in different regions and balance the consistency of the coherence Brand Imagery when communicating to specific cities. When researching the Nespresso Youtube Channel, I find different regions videos that integrate their segmented location Style and Nespresso Brand Identities to lead target audiences to connect the brand Recognition and Recall. Also, speak their language for effective communication with them. In this studying, I learn more about the STP Model how to apply various strategies for different marketing objectives. For example, choosing the appropriate segmentation, the driving force to motivate the needs, and standing on the proper positioning.





Figure 15. Nespresso YouTube Page (2021)



Bibliography

HKTV MALL (2021) Nespresso Official Store. At: https://www.hktvmall.com/hktv/en/main/Nespresso/s/H5060002 (Accessed 16/08/2021).


Khamis, S. (2012) ‘Nespresso: Branding the “Ultimate Coffee Experience”’ In: M/C Journal 15(2) pp.1–11.


Nespresso (2021a) A Timeline. At: https://nestle-nespresso.com/our-history (Accessed

16/08/2021).


Nespresso (2021b) OUR PURPOSE. At: https://nestle- nespresso.com/about_us/the_purpose (Accessed 15/08/2021).


Nespresso HK (2021) FIND US. At: https://www.nespresso.com/hk/en/store- locator#map-intro (Accessed 15/08/2021).


Tatler Hong Kong Magazine (2021) 8 Leading Chefs Create Coffee-Infused Haute Cuisine For Nespresso Gourmet Weeks. At: https://www.tatlerasia.com/dining/digest/nespresso-gourmet-weeks-hong-kong (Accessed 15/08/2021).


Tatler Hong Kong Media Kit (2021) Media Kit 2021. At: https://www.google.com/url? sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjh1b O8hbHyAhUUZt4KHV3lBkcQFnoECAUQAQ&url=https%3A%2F%2Ftatlerasiagroup.c om%2Fwp-content%2Fuploads%2F2021%2F01%2FTatler-Hong-Kong-2021-Media- Kit_05012020.pdf&usg=AOvVaw3vy2E5SkcZY9ZpuwTOjn15 (Accessed 15/08/2021).



Illustrations


Fig. 1 NESPRESSO World Explorations web page (2021) [Website, screenshot] At: https://www.nespresso.com/kr/en/2021-world-explorations (Accessed 15/08/2021).


Fig. 2 NESPRESSO HK World Explorations IG Post (2021) [Instagram, screenshot] At: https://www.instagram.com/p/CLvi55pq7f k/?utm_source=ig_web_copy_link (Accessed 15/08/2021).


Fig. 3 VALS Framework of “World Exploration” Campaign Segmentation


Fig. 4 World Explorations Facebook Post (2021) [Facebook, screenshot] At: https://fb.watch/7oj1YySM8K/ (Accessed 15/08/2021).


Fig. 5 Terrance Lam” World Explorations” Online Video (2021) [Instagram, screenshot] At: https://www.instagram.com/p/CML3nLtKBGx/?utm_source=ig_web_copy_link

(Accessed 15/08/2021).


Fig. 6 Terrance Lam IG Page (2021) [Instagram, screenshot] At: https://www.instagram.com/terencelam0903/ (Accessed 15/08/2021).


Fig. 7 Maslow’s hierarchy of needs model — “World Exploration”


Fig. 8 NESPRESSO Gourmet Weeks 2021 web page (2021) [Website, screenshot] At: https://www.nespresso.com/hk/en/gourmet-weeks?utm_source=Paid- Social&utm_medium=SMP&utm_campaign=GourmetWeeks2021&utm_content=Fac ebook&utm_cd62=B2C&utm_cd63=LOC&utm_cd69=page-post- zh_30Jul&utm_cd82=Facebook&utm_id=dc26526e-fc7a-4c89-a7fa- 01dd9609b224&f bclid=IwAR3i4Zt7kYpRqAhaeyqBBacOeHOnYh7NSYAGo5G1mPDz BRBnDeo3pjtGevo (Accessed 15/08/2021).


Fig. 9 Nespresso Gourmet Weeks Advertorial (2021) [Website, screenshot] At: https://www.tatlerasia.com/dining/digest/nespresso-gourmet-weeks-hong-kong (Accessed 15/08/2021).


Fig. 10 Tatler Hong Kong Magazine Audience data (2021) [Website, screenshot] At: https://www.google.com/url? sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjh1b O8hbHyAhUUZt4KHV3lBkcQFnoECAUQAQ&url=https%3A%2F%2Ftatlerasiagroup.c om%2Fwp-content%2Fuploads%2F2021%2F01%2FTatler-Hong-Kong-2021-Media- Kit_05012020.pdf&usg=AOvVaw3vy2E5SkcZY9ZpuwTOjn15 (Accessed 15/08/2021).


Fig. 11 VALS Framework of “Nespresso Gourmet Weeks” Campaign Segmentation


Fig. 12 Maslow’s hierarchy of needs model — “Nespresso Gourmet Weeks”


Fig. 13 Nespresso Boutiques Hong Kong photo (2021) [Facebook, screenshot] At: https://www.facebook.com/nespresso.hk/photos/pcb.1676668362497702/1676668 295831042/ (Accessed 15/08/2021).


Fig. 14 Nespresso and YOU (2021) [Website, screenshot] At: https://www.nespresso.com/hk/en/nespressoandyou?utm_source=Paid- Social&utm_medium=SMP&utm_campaign=NespressoAndYou&utm_content=Faceb ook&utm_cd62=B2C&utm_cd63=INT&utm_cd65=Launch&utm_cd69=page-post- zh_22-feb&utm_cd82=Facebook&utm_id=b509682d-cb09-41e2-9e1b-

5 5 3 6 0 e 8 1 f 7 4 7 & f b c l i d = I w A R 3 9 r S 2 d 6 M h y h f i m G C W D 9 g m -Y Z I B 5 E 6 3 - mA3afxjVazCJ66DPQlTeLNIrbA#!/free-delivery (Accessed 15/08/2021).


Fig. 15 Nespresso YouTube Page (2021) [YouTube, screenshot] At: https://www.youtube.com/c/nespresso/videos (Accessed 15/08/2021).

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