468 Retail and Channel Management Blog

Sunday, March 12, 2017

Nespresso: A World of Unique Coffee Experiences

Nespresso, "What Else?"

It all started with one idea: anyone, anywhere should be able to make a premium cup of coffee. Nespresso's primary focus as a company is to deliver the highest quality coffee to their customers cup after cup in a sustainable fashion from start to finish. They have revolutionized the coffee experience by creating high quality espresso machines, single use capsules (or pods) of espresso with associated proprietary flavourings at various levels of intensity, as well as coffee accessories such as glasses, capsule holders, and even chocolate! The brand has positioned itself as a premium brand, with a wide variety of unique channels that all serve their customers with a premium experience. 

Customer-centric, Experiential Marketing

Realizing that aroma, quality, and specialist advice factors into consumer's coffee buying experience, Nespresso boutiques provide all of this to their customers. The moment you walk in to a boutique you are greeted by a friendly, knowledgable coffee specialist who is willing to provide you with advice and information. In fact, Nespresso prides itself in having personal relationships with it's customers, and this direct dialogue has allowed them to understand what consumers desire from a coffee experience and craft their offerings accordingly. 

A boutique bar in SoHo

Inside the boutiques a vast array of colourful espresso pods are showcased behind glass, which gives an aspirational feel to the product. They are priced at a premium, and contain some of the highest quality coffee in the world. Each boutique has a testing station where the customer can try any one of their espresso capsules made in any way they would like, allowing customized engagement and inducing trial. Nespresso also uses eye-catching bright colours and clean designs along with a large selection of coffee and premium pricing to allure their target demographic of the upper-middle class. 

A bright espresso capsule wall 

Nespresso has three different types of boutiques: boutique bars, complete experience boutiques and on-the-run boutiques such as the one in The Bay in Southgate Mall in Edmonton.  Being located in a store like The Bay has allowed Nespresso to be placed in a convenient location with the ability to capture traffic as well as to suit more time constrained consumers or those who prefer to do all of their shopping in one place.  The complete experience boutiques have a larger retail space which includes lots of seating, larger breadth and depth of coffee selection, larger testing centres and more customer service. This has allowed Nespresso to integrate more comfort and interaction inside their boutiques, which segments of their target market desired. 

Nespresso also has a large e-commerce presence, which is convenient and useful for their customers.  They incorporate story-telling into this channel by providing recipes of different types of coffee that can be made with their pods, and provide a live chat platform with a coffee specialist that runs 24 hours a day. Customers can also order products through their mobile app. Nespresso also incorporates technology into the customer experience within it's channels.  The "Nespresso Cube" (as shown in the video below) allows personalized orders of up to ten different sleeves of espresso pods in only 20 seconds. With boutiques being the heart of Nespresso's retail strategy, this simply compliments Nespresso's omni-channel network and strategy of being convenient, innovative and functional. 

Overall, I believe Nespresso has done an incredible job of positioning itself as a premium brand and incorporating compelling offerings needed in today's quickly changing retail landscape. 



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