Nespresso Company, Research Paper Example

Nespresso Company was formed in early 1867, and the firm mainly deals with coffee based products and services (Matzler 30). According to various research-based studies and reports, the Nespresso firm is one of the global units and sectors of the Nestle, which is one of the largest companies globally (Caprile 52).   Due to its high quality and proper annual growth rate, the company is currently one of the fastest-growing operating units of the Nestle firm.  In early 2010, the firm general profitability was about three point two billion.  This is based on the firm effective use of various marketing strategies and behaviors including the use of digital, online and social media marketing platforms (Matzler 33).   The firm major success is also attributed to the firm management adoption of the Nespresso Club concept that mostly allows the firm customers to place orders and seek information from the firm coffee experts (Caprile 54).

In that sense, the main aim, objective and purpose of this paper is to critically analyze how Nespresso developed and created the Club concept in order to change their clients behaviors and how they adapted their marketing strategy accordingly.

Nespresso Club Concept

The Nespresso Club concept is mainly designed by the firm management in order to provide the firm customers with a broad range of services and products including placing of orders as well as receiving of the firm news and current affairs (Matzler 31). This is because the Nespresso Club concept include a number of information and database that serves a variety of its members.  In most cases, the club consumer information is collected through various obligatory membership concepts. In that sense, to buy the coffee capsules both the private, as well as business customers, are expected to become members of the club through providing the contact details and characteristics (Nespresso Tempts Coffee Lovers with a Special Gift 7). Nespresso Club concept also involves various methods and procedures of approaching their customers including through building of personalized relationships (Nestle Nespresso 78). Furthermore, the firm club concept also involves the provision of personalized services to its major customers. The firm also value information sharing especially at individualized customer levels (Matzler 34). This is usually based on the purchasing behavior and monetary value of the firm major customers.

It is also evident from a number of reports and studies that the firm club concept include various communication networks especially through social activities such as sports, coffee tasting practices as well as cooking classes (Strobel 230).   Due to this, the majority of the firm customers are emotionally attached to the firm business operations and activities in the society.

According to recent research based studies and reports, it is evident that the firm club concept is effective towards promotion of strong bond between the firm customers and its global brand image thus leading to loyalty and high customer retention levels  (Matzler 36).  This has also promoted the firm competitive advantage and the general profitability of the firm in the global coffee market.

Nespresso Marketing Strategies

The Nespresso firm major marketing approaches include the use of social media and other online advertisement platforms in order to reach large numbers of global customers (Nespresso Case Study 4).  The firm also involves a number of innovative and creative concepts in order to offer high-quality services and products to its customers (Strobel 228).    Historically, the firm was established in early 1867 in Vevey, Switzerland.  In addition, the firm also offers a variety of products and services including Nescafe in order to satisfy and promote the wants, needs and expectations of its diverse customers in different countries globally (Strobel 226).  It is also clear that the firm major marketing strategies and approaches are based on research and development procedures. This has enabled the firm to provide services and products that meets the needs of its customers (Matzler 37).

The firm also involves the use of various sports celebrities in order to advertise and market their products in the society (Strobel 227).   There are a number of brand names of the firm major products and services including the coffee capsules. The firm also involves in YouTube and TV commercial advertisement activities in order to market their products (Nespresso Case Study 8).   In the past, the majority of the firm customers complain of the high prices of the firm products and services. However, currently the firm is offering cost effective services and products in order to attract more customers to purchase their products and services (PR 3).  Furthermore, the firm coffee products and services are usually identified mainly with the most and well-educated individuals in the society thus is associated with some prestige (Strobel 229).    The provision of customer support, sales promotions as well as customer discounts and other range of coffee flavors also form some of the major marketing strategies that Nespresso has been applying in order to change their customer’s behaviors (Nespresso Case Study 3).

Furthermore, in marketing of the firm products and services the firm usually include their customers in their major advertisement activities. This has improved the global brand image of the firm (Nespresso Case Study 1). The firm also involves inclusive decision-making activities by including its customers in the firm major marketing activities.  The firm positioning activities and strategies also enhance customer’s loyalty towards purchasing of the firm products (Matzler 35).

Conclusion

In conclusion, it is evident from this paper that the Nespresso Club concept mainly involves the provision of effective and high-quality services to the firm customers through personalized services delivery systems. The firm also involves I effective customer information sharing activities in order to improve brand image and customers loyalty towards the firm services and products.  Furthermore, the firm major marketing approaches and strategies have been developed to include sports celebrities, social media platforms as well as other commercial TV based advertisement practices.  This has changed the firm clients and customers behaviors thus promoting the global brand image, competitive advantage and profitability of the firm. In that sense, the firm mainly focus on creating high value towards the customer’s needs, wants and general satisfaction. This has enabled the firm to create and developed a variety of products as well as to create high-quality services and products to its various customers globally.

Works Cited

Caprile, Eva. “Nespresso.” Hotel & Accommodation Management 17.1 (2013): 52-55.

Matzler, Kurt, et al. “Business Model Innovation: Coffee Triumphs For Nespresso.” Journal of Business Strategy 34.2 (2013): 30-37.

“Nespresso Tempts Coffee Lovers With A Special Gift.” Appliance Retailer 19.1 (2013): 7.

“Nespresso Case Study.” Nespresso Case Study: Lifestyle Branding In Coffee (2007): 1-8.

“Nestle Nespresso.” Gourmet Retailer 21.12 (2000): 78

PR, Newswire. “Nespresso Launches First-Ever U.S. Television Advertising Campaign.” PR Newswire US 30 Apr. (2012): 2-11

Strobel, Eva-Maria. “Nespresso V. Denner – A Coffee Capsules Battle in Five Acts. What Else?” European Food & Feed Law Review 6.4 (2011): 226-231.