Nespresso's premium coffee and machines hail from Europe, where coffee’s reference point and primary consumption method is a short shot of espresso. But according to the brand’s trend research, Gen Z consumers in the U.S. experience coffee differently than its core customer does. This generation is accustomed to cafes on every corner and beverages that are often served iced, flavored and consumed out-of-home.

That presented a marketing challenge for the brand. “From a coffee landscape standpoint, we saw that their definition of coffee has changed—and is changing,” says Jessica Padula, VP of Marketing at Nespresso NA. “We look at that and say, okay, we have to meet them where they are, and not necessarily try to convince them to drink coffee the ‘Nespresso way.’”

Enter the brand’s new machine product, the Vertuo Pop, a smaller, colorful Nespresso maker sold at a lower price point. We spoke with Padula about the brand’s approach to Gen Z targeting; how it balances marketing to multiple generations; new messaging surrounding its sustainability efforts; and an affiliate influencer marketing strategy in the works.

CM sister pub PRNEWS announced its fourth annual Agency Elite Top 100 earlier this week, which highlights the most innovative PR, marketing and communications firms in the business. The companies that made the list demonstrate a wide range of specializations and core capabilities, but they also spotlight new areas of expertise—from generative AI to innovative employee programs to new experiential divisions. Explore the 2024 Agency Elite Top 100 here.

Speaking of AI, last week marked the year anniversary of ChatGPT’s public release. Since then, the generative AI tool has amassed 100 million weekly users, altered the way the marketing industry performs work, ignited conversations about AI’s ethical use, and much more. Here’s how several brand and agency experts—from Duolingo, Jellyfish, Joe & The Juice and True Classic—are leveraging the technology for marketing purposes a year after its debut.

Lastly, the holiday digital marketing frenzy is in full swing, amid rising CPMs for advertising campaigns and intensified competition to reach audiences through paid media. Here are strategies for addressing these challenges, from expanding your geographic targeting to refining campaign demographics to using A/B testing to optimize ad spend.

Until next week,

Kaylee Hultgren
Content Director
Chief Marketer

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