Insight on the single serve espresso world

          For this blog entry I’ve decided to write about the new marketing and expansion ploys of the Nespresso division of Nestle which were described in the article, “Nespresso Coffee Develops a Taste for TV” in The New York Times.  This company sells personal espresso makers worldwide.  A recently emerging trend in the past few years has been personal coffee makers with brands such as Keurig and Tassimo dominating the market.  Nespresso is showing a form of horizontal differentiation in this market with their espresso, as opposed to coffee, makers.  Nespresso will be targeting the same crowd as their American competitors, but with the increasing sales of personal coffee makers and the differentiation they are exhibiting, they shouldn’t run into too much trouble. Another interesting aspect of the small kitchen appliance world is that television advertising, which Nespresso is planning, is not a common occurrence.  This can be seen in that from 2007 to 2011, the only year in which Keurig advertised on television was last year.  Until now Nespresso has run some ads in regional newspapers and magazines, but nothing as extreme as they are planning, as they put it, they must change their advertising techniques “to address increasing consumer demand, which we have been getting across the nation.”