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1. For the current distribution channels Nespresso has, they meet two criteria: 1) Nespresso maintains control, and 2) channels reflect Nespresso’s positioning. Based on the criteria, please evaluate whether Nespresso should broaden its distribution or not. To answer this question, please do the following:
1) Conduct a research to understand how luxury brands design their distribution channels. Find at least 2 brands and describe their distribution channels.
2) What can Nespresso learn from the brands you researched? Then make your recommendation. (Hint: Exhibit 1) Lists five consumer goods channels. Think about what current channels Nespresso have. If your recommendation is no, state your reasons why other channels are not effective. If your recommendation is yes, choose the appropriate channels and describe them specifically how Nespresso would build the channels.)
2. If Nespresso increases its promotion expenditure, make your recommendation on how Nespresso should do. To answer this question, please do the following:
1) Conduct a research to understand how luxury brands design their promotions/communications. Find at least 2 brands and describe their promotional strategies.
2) What can Nespresso learn from the brands you researched? Then make your recommendation on which promotional activities Nespresso should choose, and which of its brand elements should be communicated? Choose 3 promotional activities and describe your specific design for each one. For example, if TV advertising is recommended, explain why this activity is appropriate, and describe the ad design. How long is the ad? What are the scenes in the ad? By describing the scenes, the brand elements are revealed. (Hint: Exhibit 2, lists different 4 components as well as corresponding promotional activities typically used in an IMC plan.)
