Describe the current product experience
The brand Nespresso was established in 1986 as a supplementary facility of Nestle Business Group, which is a food leading company from Switzerland known for various trademarks, including the famous Nestle chocolate. Nespresso was depicted as the ‘Armani of coffee’ by Henk Kwakman, who is an erstwhile chief executive officer of the Nespresso brand. The first idea of a brand was that every person in the world should be able to prepare an excellent cup of coffee from the comfort of their home.
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Nespresso considers itself as an extravagant brand of coffee. The company had advertisements several luxury magazines served as a sponsor of various upscale ceremonies such as the film festival in Cannes and yacht awarding. Moreover, Nespresso is locating its exclusive store’s inexpensive districts of leading cities, Paris and San Francisco, in order to be more accurate. In 2012, Nespresso represented more than 20 percent of the increase in production, thus becoming one of the most rapidly expanding brands of the Nestle Company.
Nespresso has an exceptional capsule system, which follows their positioning completely and without flaw. The central feature of the capsule system is the variety of tastes: the brand represents 16 distinctive flavors that are served in separately vacuum-packed capsules. With this technology, coffee is preserving its original taste and freshness, as the capsules secure the coffee from air, light, and any other dangers that could ruin the unique flavor. Moreover, Nespresso presented its own branded coffee machine “with electronic water temperature control and a patented extraction and brewing system including a 19-bar high-pressure pump” (Boon, Campbell, and Pitt, p. 2).
Identify any problems or needs that you discovered
In 2011 the need for fresh home-made coffee enhanced, so, as a result, the adversaries of Nespresso Company started to invest more monetary funds into cheaper capsules in order to conquer a bigger part of a market. “Market leader Green Mountain Coffee Roasters increased advertising expenditure for its Keurig brand and started collaborating with Italian premium coffee maker Luigi Lavazza. At the same time, Mars increased investment in its coffee brand Flavia, and Kraft Foods did the same for its Tassimo brand” (Boon, Campbell, and Pitt p. 5). Moreover, when Nespresso failed to win several tribunal hearings in Europe regarding the prolongation of the brand’s patents after 2012, the competitor companies continued to present low-priced capsules. This competition could decrease not only the income of Nespresso but also endanger the relations with the club associates.
Nevertheless, the CEO of the company claimed that this was not a crucial problem, as the business competition always existed. He mentioned that there were nearly 50 various capsules introduced to the market that were adaptable to the Nespresso machines; however, the quality of the cheaper capsules was not competitive to the Nespresso ones.
Where or which retail did you go? How could they have a better shopping experience?
I went to the nearest department store that has a Nespresso production in retail. The selling experience there is going quite well; however, in my opinion, the company can better the income and increase the interest in the brand. Nespresso needs to reconsider selling their branded capsules not only through its exclusive shops and an online store. This suggestion can be explained by the fact that these channels of trading were meant to create a strong and flourishing relation with club members; nonetheless, several supermarket chains are offering cheap coffee capsules that can work with Nespresso machines. Based on this, Nespresso should look at the possibility of selling its products in luxury supermarkets.
Boon, Edward, Colin Campbell, and Leyland Pitt. Nespresso and the U.S. Market. 2014. Web.