Brand: Café Royal
Advertiser: Delica AG
Agency: Serviceplan Suisse AG
Countries in which effectiveness was proven
Austria, France, Germany, Netherlands, Spain & Switzerland.
In 2013 the European Patent Office revoked a key patent for Nespresso, rendering its proprietary coffee machine capsules a public good. That same year, food giant Mondelez and a host of other competitors launched their own Nespresso-compatible capsules. Needless to say, these new arrivals had an adverse effect on the premium segment, as average prices were reduced by these lower-quality capsules entering the market.
In 2014, Swiss retail company Migros positioned its re-created, yet unknown private-label brand Café Royal as a direct competitor to the 30-year-old Nespresso brand. The bold aim: claim a significant portion of the European market for premium coffee capsules, and not only in Switzerland, where market share was easier to conquer thanks to Migros' retail distribution channel (Migros is Switzerland's largest retailer).