Having a Nespresso machine is one thing, but getting some capsules another! After researching online I was lead to believe that there are several retailers where you can by machines and capsules – but no, you can buy only machines. Unless you live in London and buy at Harrods.
Nestlé Nespresso SA, a subdivision of Nestlé Group, is an exclusive and premium coffee brand that provides copyright protected single-serving “capsules” containing ground coffee. They also approach several appliances manufacturers such as Siemens, De’Longhi, Miele, Krups and Magimix to build top-quality machines and stylish accessories promoting their brand and coffee, which exclusively run with Nespresso branded capsules. They also apporach brands like Alessi to design exclusive branded espresso tableware for them.
The coffee industry is a highly competitive market with rivals all over the globe and after oil; it has become the second most targeted product worldwide. Given the stiff competition and the current economic downturn, many suppliers struggle to sustain their businesses. Nevertheless, organisations that are providing exclusive and high quality coffee (AA ranking) appear to gain a secure position.
In 2003 Nespresso introduced the NESPRESSO AAA SUSTAINABLE QUALITYTM with an additional “A”, which stands for their assurance and commitment to consistent excellence “from the coffee tree to the coffee cup” and their highly respectful fair trade conditions in coffee production countries.
Nespresso is located in Paudex, Switzerland and employs approximately 2,500 staff worldwide. Its machines are sold globally through retail channels, while the capsules are sold exclusively through their webpage with the exception of 175 premium coffee boutiques. These boutiques are located in the following markets (Source: Nestlé Nespresso SA Corporate Communications):
- Argentina: Buenos Aires
- Australia: Sydney
- Austria: Vienna (2), Linz, Salzburg, Graz
- Belgium: Antwerp, Brussels
- Brazil: Sao Paulo
- Czech Republic: Prague
- Denmark: Copenhagen
- France: Bordeaux, Lyon (2), Lille, Marseille, Nantes, Nice, Paris (4), Strasbourg and Toulouse
- Germany: Düsseldorf, Hamburg, Munich, Frankfurt
- Hungary: Budapest
- Israel: Tel Aviv
- Italy: Milan (2), Rome, Turin
- Luxembourg: Luxembourg
- Netherlands: Amsterdam (2), Rotterdam
- Portugal: Lisbon
- Russia: Moscow
- Spain: Barcelona (4), Madrid (2), Valencia
- Sweden: Stockholm
- Switzerland: Basle, Bern, Geneva, Lucerne, Lugano, Paudex (Lausanne), St. Gall, Zurich, Fribourg, Bienne, St. Moritz
- UK: London (2)
- USA: New York
Nespresso created a TV campaign with George Clooney in order to promote their premium brand. The clip also describes the rich taste of the blends and also shows what the luxurious interior of the exclusive Nespresso coffee boutiques is supposed to look like.
Serving customers mainly through their web page is a good strategic plan in order to provide their customers with the ultimate coffee experience. Having all traffic online allows Nespresso to have direct customer contact through emails or discussion boards, and also provides them with unique customer data access through membership (it is only possible to order capsules online if you join the Nespresso Club – which also forms a special connection with customers and opportunity to turn them into brand advocates) Such an amount of information offers excellent opportunities for database marketing and tailored sales strategies. By having the main service exchange online, Nespresso retain control of supply channels and hence, can assure high quality standards that build a premium corporate brand identity. In my opinion, certainly an interesting, very customer focused and successful business model.
Now then… I will have to be patient and allow three days until I receive the premium capsules in order to use my machine!