By Amélie BLANCHERI
Nespresso is leading the market by providing luxury coffee thanks to a strong strategy.
First, as we said in previous articles, celebrity endorsement participates a lot in building a luxury image: George Clooney and Penelope Cruz are not just selling the products, they are justifying the premium value.
The brand also reinforces its position by doing partnerships with high-end top chef restaurants: Nespresso is selecting the provenance and the quality of the coffee makers and convinces famous restaurants to sign contracts with them in order to be the only one provider of coffee in these places. For example, the very expensive and “chic” Four Seasons only serve Nespresso.
The company also started to organize weekly seminar program: “designed to help servers sell coffee like wine by using (a lot) of adjectives to describe the differences between (…) the blends”.
Then, as we all know Nespresso is selling capsules exclusively designed to fit Nespresso-branded machines. These machines are equipped with “high-pressure extraction system designed for optimum release of the coffee”. By doing this process, Nespresso is making sure to grow its sale of course, but this is also a way to build a strong sense of belonging. By making sure “you stay in the club”, Nespresso is building a strong community and forces its customers to stay into the ecosystem. This is what we called the “walled gardens”, the same way Apple does it: Nespresso makes it difficult for you to go outside of the ecosystem and switch to another brand.
Moreover, The Nespresso Club offers “café-quality coffee” by making it possible to enjoy privacy and comfort while drinking coffee.
According to the “Ultimate Experience” paper, Nespresso was also the first brand to differentiate itself by providing a luxury option in an accessible and familiar market. The paper also highlights that in 2009, there were more than 5 million members of the club.
If we focus deeper on the stores, Nespresso opened its first one in 2000 on the Champs-Elysées: this was a symbolic movement and it has shown the brand preferences for “glamorous precincts in cosmopolitan cities”in order to be surrounded by premium and luxury brands. All Nespresso boutiques are designed according to the same template and are part of a brand ambassador image. For example, Nespresso uses its iconic boutiques to release new products and press. All the spaces and floors are dedicated to coffee consumption.
Still, according to the “Ultimate Experience” paper, the boutiques are used to pursue 3 main objectives:
- Showcasing the coffee products, machines, and accessories available
- Club members can restock some capsules
- Offers a high-end customer service
Nespresso takes advantage of the Club Members by taking their recommendations because they are supposed to be “strong connoisseurs with knowledge and higher enjoyment of coffee than the average people”.
In order to be closer to its customers, Nespresso has redesigned some shopping experience to get rid of intermediaries. Since November 2015, Nespresso has created new boutique concepts (in London, Rotterdam, and Paris La Défense) to provide “a higher customer service which includes delivering a personalized experience, improving efficiency and providing even greater access to our knowledgeable Coffee Specialists”.
- Usage of mobile technology to have seamless experience:
These technologies have been used to leverage more personalized customer experiences with the use of tablets for example to place an order. All of these processes will help to regulate the traffic in-stores and at the same time offer a better experience.
Source: Nespresso website
- Pilot boutiques in key locations:
The shops are offering a new retail experience in these 3 pilots boutiques: the first according to Nespresso website was opened in London in an important shopping center, then at Rotterdam in mid-December and lastly into the CNIT area in Paris La Défense: all these places are attractive in terms of traffic, trendy movements and in terms of innovative boutiques.
Sources: Nespresso website
- Consumer-centric approach:
By offering new shops and experiences to their Club Members, Nespresso is putting them at the core. By asking questions and recommendations to the members, the brand can know in advance people’s needs.
In the last years, Nespresso shops get new services such as: “self-selection areas with automatic checkout using Radio Frequency Identification and pick-up desks (…) where people can collect pre-ordered products”.
Finally, another impressive retail concept is the one opened by Nespresso in Cannes. This pilot concept was designed by Universal Design Studio: the whole customer journey is integrated into the spaces. According to FrameWeb, the three floors of the store represent the three levels of engagement.
When people enter the store, they have a one-to-one personalized welcome. According to FrameWeb, the first floor represents “Engage”, in other words, the initial stage of the customer journey. Employees have a digital platform to track customers and each customer has a specific avatar to increase the identification.
Then the website specifies that there is a virtual queue management system, which lets the customer free to navigate. This will lead then, to the next floor which is called “Explore Stage”: visitors are navigating around the dedicated area to explore all of the offer.
On the second floor of the boutique, the consumers can find Nespresso’s experts using aromas and flavours to provide a strong sensual experience of coffee. FrameWeb explains also that the open design of the interior encourages exploration by removing physical barriers in the area and encourage movement by customer and salespeople.
Finally, the last floor is called “Involve”: customers are encouraged to participate with the brand in particular to sustainable purpose.
CSR, as we mentioned in another article, is very important for Nespresso and in its shops, that is why it is also integrated with the use of recycled materials. The website also added that the “coffee beans are repurposed in the table surfaces and used Nespresso capsules are transformed into an art mosaic”.
Source: Nespresso website
To conclude, Nespresso is very strong in building powerful boutiques such as the pilot one created in Cannes. The boutiques interrelate customer engagement, new technologies, and corporate mission and vision to ensure a strong lasting relationship.
Nespresso website and FrameWeb images