Created by a Nestle employee in the 1970s, Nespresso is a system of brewing coffee that had modest success in Switzerland until Nestle began licensing the technology to other manufacturers. In the 1990s the Original Line of Nespresso machines was introduced in Canada and the US to moderate acclaim.

In February 2014 Nespresso launched their VertuoLine in the United States and Canada. With several high-tech features including a barcode system that rejects pods from their competitors, the VertuoLine was widely promoted using George Clooney in long-format television commercials, supported by print ads, stimulating a strong increase in sales of the machines and the pods required to use them.

Nespresso machines can be purchased by Canadians in a number of ways: online at Nespresso.ca, via Amazon.com or Amazon.ca. The pods, however, can only be purchased in a Nespresso Store and Cafe. A recently-renovated location at a downtown Vancouver store saw the cafe move from the underground level to occupy a large portion of the main floor, where it is visible from the street.

While initially Nespresso had no plans to carry the Vertuo in Europe, they began selling the machines in France, the UK, and Australia, in late 2016.

A) What level of coverage is Nespresso currently using in their distribution strategy for their machines?

1. Intensive
2. Exclusive
3. Selective
4. Market

B) What level of coverage is Nespresso currently using in their distribution strategy for their pods?

1. Intensive
2. Exclusive
3. Selective
4. Market