Through a short animation, the best of Nespresso marketing tools will be presented to you. This includes the 4P’s, the segmentation, the concurrence of the brand and the invisible service.
Link to the video: https://www.dropbox.com/s/6sfhhw4ii6eh7wh/Marketing%20Video.MOV?dl=0
“To wealthy and elegant customers, looking for a unique coffee experience, Nespresso Boutique Flon is not only a coffee shop that offers a wide variety of luxurious and high quality products but also the perfect representation of the brand’s dedication to customers and tailor-maid services”.
Nespresso is present internationally and adapts their offers to each of its geographical markets specific needs.
Its presence is mainly in Europe , in Asia and in the USA. The brand aims to develop its offers further by reaching inter-market segments in America and in Africa.
Nespresso tries to reach customers who value superior-quality, personalized service and an overall memorable coffee experience. Within that market, the Nespresso Boutique focuses mainly on middle-aged, wealthy and well-educated customers, experts or simply those that are curious about coffee. The brand also does Business to Business. Nespresso offers benefits such as reductions and specific capsules for this specific segment. The brand created partnerships with renowned chefs and delivers its products to hotels with the same standards and quality-value.
They aim to stay the reference on the luxurious coffee market for both markets.
Nespresso has chosen to deliver their services on the luxurious market which is the fastest growing segment. The brand has started by being the pioneer on the capsule market and is still the reference in matter of coffee brand. This has resulted in an important growth in 2015. At the start of the company in 1986, the targeted market of the brand was the office coffee sectors of Japan, Italy and Switzerland only.
Three years later the system was made available for the household market of those countries, and was progressively introduced in 1991 in the household market of France and the USA.
These steps were the first major market expansion of the company.
From 1992 until now, the growth and brand development has continued by adding amenities, accessories and innovative features. Several distribution channels, such as the first online platform in 1996 were developed in order to reach a wider part of the targeted market. Nespresso has been able to reach several levels of needs and expectations on its target market by offering tailored services, products and distribution options and therefore, stay on the desired luxury market.
By definition a competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or in the case of Nespresso Boutique Flon, by providing more benefits that justify higher prices.
The boutique’s location in the center of Lausanne is a valuable asset. However, the real PODs (points of differentiation) of the boutique are:
The PODs previously mentioned allow the boutique and the brand “Nespresso” to position itself on the luxury market and stay a reference for coffee in the mind of consumers.
Bibliography
Unknown author, unknown date, Officila Nestlé Nespresso SA website: https://www.nestle-nespresso.com/about-us/our-company
“The Nespresso winning formula”, Author: Richard Girardot CEO Nestlé Nespresso S.A., Date: 21.06.10, retrieved from: https://www.nestle.com/asset-library/documents/library/presentations/investors_events/investors-seminar-2010/nestlé-nespresso-jun2010-girardot.pdf
In this week’s blog, we analyze our company based on the SWOT analysis. The SWOT analysis combines the findings of the external and internal analysis and forms the starting point for the development of a company’s strategic orientation and for the definition of strategic success positions. A strategy can only be successful if the strengths and weaknesses of the company are in line with the predicted opportunities and threats. Since the 1960s, the SWOT analysis has been the basis of almost all attempts to formalize the process of strategy development of a company.
We take a closer look at the analysis to highlight some important aspects. Below, we take a deeper look into three points that we find the most interesting:
Nespresso is already excellently represented in the market, but the analysis shows that even for a company of this size there are always new areas where potential has not yet been exploited. With its boutique shops, which are centrally located in cities and serve their own products in addition to selling coffee capsules, the company is moving closer to their customers and thus strengthening their loyalty.
They are also not shy to venture into new areas and to discover the unknown partly through large investments (like the Starbucks move). In addition, they continue to work on known problems and try to keep up with the times through transparency.
Bibliography:
Marcel Speiser, 13.11.2018, Nestlé-Chef Mark Schneider: Starbucks, what else?, retrieved from: https://www.handelszeitung.ch/unternehmen/nestle-chef-mark-schneider-starbucks-what-else
Alexandra Tiefenbacher, 03.12.2018, Die Kaffeekapseln von Nespresso können zwar rezykliert werden. Aber bestehen die Kapseln selbst auch aus rezykliertem Aluminium?, retrieved from https://daslamm.ch/die-kaffeekapseln-von-nespresso-koennen-zwar-rezykliert-werden-aber-bestehen-die-kapseln-selbst-auch-aus-rezykliertem-aluminium/
With a unique patent, Nespresso created a niche market for themselves. However, after the expiration of this patent, many competitors have developed themselves on the coffee capsule market.
In last weeks blog post, we took a deeper look into the way Nespresso made sure it was better than the competition through innovation, “attacks” on competitors and their most successful strategy: Brand Image. We then compared the products and services of their main competitors Tassimo, L’OR Espresso, Starbucks, Illy, Café Royal and Nescafé Dolce Gusto. Furthermore, we conducted in depth qualitative research into the pricing of each company, the distribution channels as well as the strengths and weaknesses.
Today, we will focus on quantitative research and take a closer look at the more financial aspect of Nespresso and its competitors. We have narrowed down the list of companies to four, Nespresso, Starbucks, Illy and Tassimo. The research includes insights into the financials of each company to be able to analyse what position Nespresso holds on the coffee capsule market as well as where they stand to their competitor Starbucks when it comes to coffee shops.
The individual revenues for 2018:
From all these numbers, we can make out that Starbucks is by far the company with the highest revenue in 2018. However, if we were to look at the larger groups that the individual brands belongs to, the numbers would be different. In this case the numbers would be as followed:
After this analysis we can see that when it comes to the company, Nestlé is very far ahead of the other companies. We have chosen to analyse the results in this manner as it is very interesting to see where the individual brands lie and where the larger companies they belong to stand.
In February 2019, Nestlé released a press release where they stated that they would join forces with Starbucks to launch a brand new range of very high quality coffee products combining the “know-how” of Nestlé with the Starbucks roasting and coffee blending expertise. With the brands Nespresso, Nescafé and Starbucks, the company Nestlé is now, by a very large margin, the biggest coffee company in the world. This decision was a very strategic one from Nestlé as they have continuously (as mentioned in previous blogs) tried to penetrate the rather difficult American coffee market with their brand Nespresso. They have however never been successful, whereas Starbucks is highly successful in the US. The joining of these two forces has also eliminated a big rival for Nespresso which was Starbucks with their range of coffee products and coffee shops.
Before we end the blog for this week, we would like to mention that this agreement between the two companies was made on the 13th February 2019. In our comparison we have taken the revenues of the year 2018 when these two companies were still rivals.
Bibliography:
Unknown author, 13 February, 2019, Nestlé announces the global launch of a new range of Starbucks products to enjoy at home, retrieved from https://www.nestle.com/media/pressreleases/allpressreleases/global-launch-new-starbucks-products
Unknown author, unknown date, Nespresso’s Competitors, Revenue, Number of Employees, Funding and Acquisitions, retrieved from https://www.owler.com/company/nespresso
Unknown author, unknown date, illy’s Competitors, Revenue, Number of Employees, Funding and Acquisitions, retrieved from https://www.owler.com/company/illy
Unknown author, unknown date, e-commerce revenue analytics tassimo.fr, retrieved from https://ecommercedb.com/en/store/tassimo.fr
Unknown author, 2019, Revenue of Starbucks worldwide from 2003 to 2018, retrieved from https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-worldwide/
Unknown author, February 14, 2019, Nestlé reports full-year results for 2018, retrieved from https://www.nestle.com/media/pressreleases/allpressreleases/full-year-results-2018
Unknown author, unknown date, JDE’s Competitors, Revenue, Number of Employees, Funding and Acquisitions, retrieved from https://www.owler.com/company/jacobsdouweegberts
More than 30 years ago, Nespresso invented the capsule system that we know nowadays for coffee extraction. Being the pioneers of the capsule industry, Nespresso had a long-standing monopoly on the market, which allowed them to put a significant margin on their products. However, as soon as their patent has expired, many brands have tried to conquer the market with similar products or even capsules compatible with Nespresso machines.
Over the years, Nespresso has adopted several strategies to combat competition:
1- Innovation: by continuously innovating, Nespresso tries to beat its competitors. Over the years, the company will have released more than 1 600 patents worldwide.
2- The attack of the competitors: By developing its machines with minimal changes, Nespresso tries to «trap» the other capsules producers when inserting these capsules into a Nespresso machine. In addition, the company continues to sue the manufacturers for “intellectual property” pods despite the fact that they end up losing their case after a few years.
3- Their image: The brand tries to prove that it remains the top-of-the-line in coffee, by highlighting «George Clooney» or «Anton, Alexis and Angélique» (3 coffee experts) in their marketing. They are associated with luxurious environments such as star restaurants (in 2013, they occupied 25% of French gourmet restaurants).
Following qualitative secondary researches, we were able to create this table, highlighting several important competitors of Nespresso and therefore of their boutique in Flon.
If the table concentrates more on brands selling coffee capsules (or pods), it is because the sale of capsules represents 90% of Nespresso’s total sales.
However we also included Starbucks as an important competitor of Nespresso because in the United States, Nespresso is far from having the same fame as in Europe. It is no coincidence that Nespresso’s first “elaborate recipes” were the “latte macchiato” and “cappuccino” that are Starbucks’ best sellers. It was also to conquer the American market that we saw the arrival of their «Vertuo» capsules, designed to create «longer» coffees.
Since 2012, Nespresso started to lose its patents and in consequence a part of its global share on the capsule and pads share due to less protection. Here are the data of the “Wall Street Journal” from 2015:
In conclusion, we note that many brands have managed to sell capsules compatible with the Nespresso system and that Nespresso no longer holds the monopoly. However, while many sell similar products, there are still important differences. Nespresso remains the most luxurious coffee brand on the market.
It remains the only one to offer:
– Extremely personalized sales service to their customers;
– Stores mixing the “store”, “restaurant” and even “event” aspect;
– And in addition to those, a wide variety of capsules and machines for sale only on their platform or in their shops to guarantee direct contact with their customers and to meet their high-end image. We may wonder how long Nespresso will still be able to keep a large market share? How will they continue to innovate? And finally, will they manage to penetrate the American market?
Web journal “Le Capital”, Sylvain Lapoix, 26/05/2015, retrieved from https://www.capital.fr/
Unknown author, 24.05.2016, retrieved from https://www.romandie.com/
Official Starbucks Website in Switzerland, uknown date, retrieved from http://fr.starbucks.ch/
Official L’Or Espresso Website, unknown date, retrieved from https://www.lorespresso.com/
Illy official website, unknown date – retrieved from: https://www.illycafe.ch/f
Dolce-gusto official website, unknown date – retrieved from: https://www.dolce-gusto.ch/
Acquaspresso official website, unknown date – retrieved from: https://www.aquaspresso.co.
“Le Temps”, Adria Burdy Carbo, 18.05.17, retrieved from https://letemps.ch/economie
Dolce guesto official website, unknown date, retrieved from: https://wearedolcegusto.wordpress.com
“Le Bilan”, Marjorie Thery, 13.07.18, retrieved from https://www.bilan.ch/
Café Royal official website, unknown date, retrieved from https://www.cafe-royal.com/
Official Tassimo Website, unknown date, retrieved from https://www.tassimo.com/
The online selling platform is a relatively new way for businesses to sell their products in a rather inexpensive manner. This so-called e-commerce began in 1994 and has increased in popularity over the last 20 years. Nespresso has used this online platform to create personalised experiences for customers.
Nespresso’s goal with their strategy
Around 1999, Nespresso realized that this new strategy of selling their coffee capsules would greatly benefit them. For example, infrastructure costs and labour costs are removed, and the online platform allows customers to buy coffee 24/7. E-commerce was implemented to increase market demand (as you can now buy capsules every day at every time) and save on the above-mentioned costs. The goal of this strategy is to facilitate the customers purchase of coffee capsules by allowing them to order these capsules within the comfort of their own homes.
Is this strategy effective?
This strategy is very effective for Nespresso. This can be seen by comparing the amount of total reported sales from 2017, which were CHF 89.6 billion and those of end of 2018, which were CHF 91.4 billion. Furthermore, in just two years, Nespresso managed to create an increase of 15% sales outside of Europe. Amongst all these numbers, we can clearly see that the Nespresso brand is not slowing down, rather is it continuously growing.
Could it be improved?
Nespresso manages to make the online purchasing of coffee capsules consumer friendly by providing step by step guidance. To facilitate this process, Nespresso keeps track of your purchase history so you can save time on having to select each capsule. Furthermore, customers can select an option that allows for reoccurring orders to be dispatched. This means that consumers should never run out of coffee capsules.
This option is highly attractive for extremely busy people which might not have time to go through the purchasing process and might even forget to order coffee. The process of ordering capsules online has been thought through to every detail, however, to add to this experience, Nespresso could package the capsules in a more attractive manner. At the moment the capsules arrive in a standard brown box which is rather boring. Nespresso could instead package the capsules in a black box that is visually more appealing to contribute to their luxury image and make even the unpacking an experience.
How does their strategy compare?
Nespresso’s strategy stands out from others because there are one of the only companies that sells coffee capsules in a personalised way. This personalised way refers to the option of having reoccurring orders and keeping a history of previous orders. What mainly differentiates Nespresso from brand like L’Or is that you are spoilt for choice. For example, L’Or has 19 different kinds of coffee, whereas Nespresso has 30 different kind of capsules that can be classified into different groups such as: Limited edition, Master origin and Lungo. This choice is what makes Nespresso stand out from other brands.
Nespresso has mastered the art of personalised e-commerce. There is a reason why their slogan slogan is: Nespresso, what else?
Unknown author, unknown date, Nespresso steams ahead with double digit growth, retrieved from https://www.nestle-nespresso.com/newsandfeatures/nespresso-steams-ahead-with-double-digit-growth
Brad Tuttle, August 15 2014, 8 Amazing Things People Said When Online Shopping Was Born 20 Years Ago, retrieved from http://money.com/money/3108995/online-shopping-history-anniversary/
Unknown author, unknown date, E-Commerce, retrieved from https://businessmodelnavigator.com/pattern?id=13
Unknown author, unknown date, The Nespresso history: from a simple idea to a unique brand experience, retrieved from https://www.nestle-nespresso.com/asset-library/documents/nespresso%20-%20history%20factsheet.pdf
Unknown author, February 14 2019, Nestle’s full-year results show consistent mid single-digit growth for Nespresso, retrieved from https://www.comunicaffe.com/nestles-full-year-results-show-consistent-mid-single-digit-growth-for-nespresso/
Unknown author, unknown date, no title, retrieved from https://www.nespresso.com/ch/en/order/capsules/original
“Services are invisible” is a term used to describe tangible company offerings. Therefore they do not rely on the five senses to reach their customers, instead companies try to stimulate an emotional reaction.
After having done much research into what drives consumer purchase decisions, we have found that sustainability is a very important factor of these decisions. Studies have shown that 68% of US consumers consider this a vital factor in their product choice. This is why we have chosen to promote Nespresso’s sustainability. Nespresso has created the Nespresso AAA sustainable quality program in 2014 which focuses on coffee sourcing, aluminium sourcing and recycling. Many consumers still believe that Nespresso is an unsustainable business, however they have created many programs, like the one mentioned, including programs that help local communities in war stricken areas. With this advert we want to raise the attention of the consumers, that Nespresso is a sustainable company. Due to the studies on the factors of consumer purchase decisions (as stated above) we are hoping that we can attract more potential customers to the easy, yet sophisticated way of Nespresso.
When we talk about the potential customers we are targeting, we are referring to the middle class coffee consumers. The reason for this being, that many people think being sustainable is rather difficult as the idea is usually always associated with items that are hard to get and rather expensive. By showing them that Nespresso, a luxury product, is easily attainable, well priced and sustainable, we hope that more of these consumers will visit the Nespresso Boutique Flon and join the Nespresso community.
The billboard is located on a busy street in a suburb of Lausanne that leads to the centre of town. The position of this billboard has been deliberately chosen to meet the middle class of society since Nespresso is a brand providing products that are associated with luxury and yet are affordable for everyone. The location means that, at best, advertising is found twice a day by customers; on the way to work to the city and on the way back home. As a result, the brand is constantly in the subconsciousness of customers. In the best case scenario, the billboard reminds the customer that capsules can be bought before or after work, taking him directly to the centrally located Nespresso boutique in Lausanne.
The slogan in combination with the image will inspire the viewer to think. In stimulating the fourth level of the Maslow Pyramid of Needs, the advertisement aims to give the individual a sense of achievement after having purchased a sustainable Nespresso product and therefore we trigger the individuals esteem needs. This sense of achievement is created every morning when the Nespresso consumer brews a fresh cup of sustainable coffee. Nespresso thus gives its customers the feeling of enjoying a luxury product and at the same time doing something sustainable for the environment and the producers. A relationship between the company and the customer is created, whereby the customer identifies himself with the brand.
Bibliography:
Khan Mohd Eshtiaque 25/08/2014, Marketing Plan for Nespresso, Retrieved from https://www.slideshare.net/kmeshtiaque/marketing-plan-for-nespresso
Rémy M. 11/11/2014, Nespresso: the success of the brand, Retrieved from http://naturallygreattraders.blogspot.com/2014/11/nespresso-success-of-brand-image.html
Rahul Chadha 16/01/2019, Sustainability is driving consumers purchase decisions, retrieved from https://www.emarketer.com/content/sustainability-is-driving-consumers-purchase-decisions
By definition, a marketing strategy consists of specific strategies for target markets such as positioning and the marketing mix. Nespresso Boutique Flon is a perfect representation of how the brand’s main marketing tools are applied and represents the brand’s success in positing itself on the luxury market.
More than 20 years ago, Nespresso invented the capsule and coffee extraction system with pressurized water. Since then, they are constantly innovating and offering a wide choice of more than 60 different capsules. They can be classified into three categories: “capsules for professional machines”, “originals” and, the most recently developed ones named “vertuos” (from which coffee is extracted differently and intended to please the American way of drinking coffee). To make their choice, consumers can participate in tastings at the Nespresso store, make their decision according to the origin of the coffee grains or simply answer questions about their habits and taste preferences on the Nespresso website, in order to be advised on what best suits them. On top of the capsules, the company has smartly created a complete set of products complementary to each other: treats, accessories or coffee machines (manufactured by partner brands but nevertheless designed by Nespresso). Finally, at the Nespresso Boutique Flon, you can sit at the bar or on the terrace and enjoy special creations made from Nespresso coffee, as well as the “creations of the month” that vary regularly. However we noticed that the biscuit offered with the product was from the brand “Wernly” which is a loss of a selling opportunity for the brand. Indeed, if the customer tries and likes a Nespresso sweet served in the coffee shop, he is more likely to purchase it in the boutique.
The Nespresso Boutique in Flon promotes itself as more than just a coffee retailer, it advocates “the complete Nespresso experience” which means that you can count on their luxurious and personalized service. The sales people working in Flon are all experts in creating this personalized service by using the customers online profile to see their preferences and buying habits. This enables the staff to create the ultimate Nespresso experience. Moreover, events are organised at Nespresso boutiques, for example food and coffee pairings, tastings, coffee masterclasses, etc. Finally, out of the store, a Nespresso customer will be able to find 24hour assistance, via internet, telephone or explanatory videos. The wide offer of products and services is the main tool that allows the brand to please every specific customer’s need.
To sell and make its products accessible to the public, Nespresso has developed several distribution systems. The customer can directly buy a product in a Nespresso boutique such as the one located in Lausanne Flon. He may also order his coffee by phone (which was the first selling method used by the company), online on the company’s website or through its mobile app. These tools are advantageous as they facilitate the buying process and makes the products easily accessible. Nespresso has put a lot of effort into customizing the delivery process so as to fit the customers’ preferences.
Nespresso has created an automatic recurring order system: the customer choses the product, quantity and frequency at which he wishes the coffee to be delivered. The brand is also currently developing a machine that will enter a new coffee order once all the stock in the machine has been consumed. These tools are continuously strengthening customer loyalty and the brand’s competitiveness.
In low demand areas, the company delegates the sale to local retailers. The organization by market of Nespresso gives the company the ability to study and decide which market they will invest to get sustainable growth.
Nespresso makes sure that their image is preserved by having their own stores and online platforms to be able to control the quality and the service.
In terms of marketing, no need to mention their famous brand ambassador, George Clooney, and the ‘what else’ slogan which is well-known and shows the great success of their marketing campaigns.
The brand is also associated to places or people that can reflect and spread their “luxury” and “premium” image. They work in collaboration with more than 700 gourmet culinary chefs (e.g. Edgar Bovier, Lausanne Palace) to integrate their coffee in high gastronomy. These kind of associations give Nespresso the opportunity to penetrate existing customer based and bring its market to the next level. However, the brand should continue to search for new collaborations in order to continue evolving after George Clooney’s outstanding impression. As for their products, Nespresso develops each year several «limited edition» capsules around a theme. They are promoted, in the window of the Nespresso Flon Boutique for example, with ample decorations. This specific tool is a way for Nespresso to be innovative but also to increase the customer’s interest and curiosity for the brand. To promote some of their more classic products, Nespresso also makes momentary offers on prices (ex. reduction on price for a certain amount of capsules bought).
Thanks to the high-quality service and the high quality of the products, the customer is willing to pay two times more for a Nespresso capsule than for example a Bellarom capsule. Moreover, Nespresso has set different prices for the businesses that buy Nespresso products to sell in their own establishments. The price depends on the length of the engagement and the number of capsules bought. This tool increases Nespresso’s visibility and regular sales even if the margins are lower. Nespresso was the pioneer in the creation of coffee capsule and benefited of the patent for 20 years. Their monopole is now threatened by other companies that distribute coffee capsules on the market at a lower price and through more diversified channels. Thus, Nespresso must not rest on its laurels, but continue to innovate and develop their marketing tools and maintain their image.
Thanks to the design of the shop, the quality of their products and the professional and personalized service offered, Nespresso Flon Boutique is placed on the market as a luxury coffee boutique. They are not only a shop but want to be provide the total customer experience. It is partly by this differentiation that Nespresso can create superior customer value. We might even notice that they use terms of oenology for their coffee as “grand crus”.
Nespresso targets several types of clients: First, the multinational does what is called “business to customer”. Buyers are the final consumers and distinguish themselves between regular coffee drinkers, wishing for a luxurious, simple and professional service (we notice that it mainly concerns consumers over 30 years of age, having a rather easy financial situation), passionates, experts as well as customers willing to learn more. Nespresso also does business to business. Private companies can access a second official website for professionals and have agreements with the brand. Today, Nespresso is in the minds of most consumers, the “coffee” reference.
Sources:
Meeting with Julien Repond (former IT developer at Nespresso), 14th of March 2019
Official Nespresso Website, unknown date, retrieved from https://www.nespresso.com/
Official Nespresso “pro” website, unknown date, retrieved from https://www.nespresso.com/pro/
Case study Analysis Website, unknown date, unknown author, retrieved from: https://acasestudy.com/nespresso-marketing-analysis/
Bon à savoir.ch, unknown date, unknown author, retrieved from: https://www.bonasavoir.ch/files/comparatif-capsule-cafe.pdf
The Unique Business Model of Nespresso enables the company to master the quality of coffee from farmer to consumer. It also allows the brand to build close and strong relationships with customers and Club Members, anticipating their needs and expectations. Nespresso continues to set the standard for design and function, bringing home the art of coffee making.
Global mission of the company
Nespresso’s main focus is on taking action to improve the environmental performance of every aspect of its business: coffee cultivation, machine use, business operations and capsule recycling. This is also the case at the Nespresso Bar in Flon, where customers are made aware that their capsules can be recycled the moment they step through the door. There are recycling bags just to the right of the entrance and it is also explained, that customers do not even have to go to the store to recycle the capsules. They can be brought to a Nespresso drop off station or even picked up by the postman at the door of the consumer. Following up on the promotion of recycling, one of the achievements the company was able to accomplish, was a reduction of the carbon footprint of a cup of coffee by over 20%. To add to this achievement, Nespresso has planned to reduce it by another 10% by further optimising its technologies by the year 2020.
Life cycle assessments (LCA) of Nespresso operations throughout the value chain show that the greatest environmental impacts occur during coffee cultivation and Nespresso machine use. To follow up on their mission of creating a sustainable business concept, in the Nespresso boutique Flon, new capsules are displayed that have been produced in a sustainable way. To sell these capsules more than others, Nespresso changes the classic one colour branding of the pods with creative patterns. Furthermore, Nespresso has created the Nespresso AA sustainable quality program which wants to improve the sustainability of their coffee production as well as helping the farmers. This is all promoted in the various boutiques across the world.
To be able to provide excellent and innovative service to every single customer, Nespresso came up with a Club Membership system, which allows everyone to become a part of the company and receive a personalised service. wWhich gives the client a feeling of individuality and care.
The organisation has a clear conception with a strong and exclusive brand image, which gives a customer an idea of satisfaction and creates expectations, which are always met and even exceeded by the Nespresso team.
Nespresso has strived to create a community of passionate coffee lovers, that value the brand’s innovative spirit and heritage of quality, style and service. They appreciate the sensorial experience that can be seen in the Nespresso boutique Flon with the coffee shop that is placed in the boutique.
Links:
Unknown author, unknown date, retrieved from https://www.nestle-nespresso.com/about-us/strategy/creating-sustainable-business-success
Unknown author, Thursday May 11 2017, retrieved from https://3blmedia.com/News/Nespresso-Track-Meet-500-Million-CHF-Investment-Advance-Ambitious-Sustainability-Goals
Part of the innovation marathon Nespresso is following, is adding an experience as well as a journey during the customers purchasing process. Through the table service in the boutique bars, Nespresso keeps its customers in the store for a longer period of time. This allows them to discover the wide range of products & services Nespresso provides. Additionally, this enables the consumer to identify themselves with the brand.
Creating “Moments of Truth” (MOT), a brand catches potential customers by providing lasting impressions over the different stages of the MOT-Theory. By transferring this theoretical model to the Nespresso Boutique Bar in Flon, we analyze how this specific location manages to keep loyal, as well as attract new customers. We want to understand, how one of the key players in terms of marketing strategy and consumer satisfaction manages to succeed in the highly competitive coffee shops market.
During the “Zero Moment of Truth”, a potential customer is motivated to search for more information about a specific brand, product or service. Through a strong social media presence with over 6.5 million Facebook fans, Nespresso brings 440’000 individual customers to interact with the brand online. A large number of customers order their coffee online. Through this frequent online interaction, customers become aware of the “Nespresso Boutique Bar Lausanne”. After becoming aware, that there is more than the boutique in Lausanne, the customers feel tempted to experience the new service provided.
Nespresso masters the creation of long-lasting wow effects like almost nobody else in the industry. This allows them to create what is considered as the “First Moment of Truth” in an unforgettable manner. After finding the Nespresso Boutique Bar in Lausanne online, the customer is already impressed by the centralized location itself. By reaching the convenient location of the boutique, the customer is fascinated by the simplistic, modern and desirable design of the shop. Furthermore, the fact that it is not only an ordinary Nespresso store but also a boutique coffee shop, where customers can enjoy their favorite products, as well as new ones, served in a desirable way. Nespresso combines personalized service and stimulation of the senses to create this unforgettable first impression. In addition to the wow factor of entering the boutique in Flon, Nespresso chose this exact location, to provide the customer with a sunlit terrasse and breathtaking view of the historic buildings located in central Lausanne.
By continuously growing, Nespresso shows its success with customer satisfaction through positive online reviews and the high demand for more boutiques. This is due to lasting memories, also called the “Second Moment of Truth”. Comments on TripAdviser are the best example for it. People are excited about the idea of free tasting of products adapted to the season. For example a leggero on ice, a reinterpretation of a common Nespresso product. By placing this classy and sophisticated concept in the heart of Lausanne, they manage to persuade guests to recommend the boutique through online comments like “you won’t regret it” or “a must visit place in Lausanne”.
With this specific location in Flon, Nespresso manages to hook their customers through the “First Moment of Truth”. The wow effect after entering the boutique and the terrace with an impressive view speak for themselves. To continue this impression and reach even more potential customers, Nespresso could increase their feedback on review sites such as TripAdvisor and Yelp by replying personally to customer reviews and to follow up with suggestions for improvement.
Nevertheless, Nespresso lives up to its reputation at the boutique bar in Lausanne because….. Nespresso, what else?
Bibliography:
Unknown Author, The Nespresso Brand Essence, Retrieved from https://www.nestle-nespresso.com/brand/brand-essence U
Unknown Author, Facts and Figures, Retrieved from https://www.nestle-nespresso.com/about-us/facts-and-figures
Unknown Author, Nespresso (Boutique Nespresso Lausanne), Retrieved from https://www.facebook.com/NespressoBarLausanne/
Colso91, 20.09.2018, Nespresso Bar, Retrieved from https://fr.tripadvisor.ch/Restaurant_Review-g188107-d12009542-Reviews-Nespresso_Bar-Lausanne_Canton_of_Vaud.html
Nespresso Boutique Flon 