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Nestle Coffee from Popularization to High quality

Do you still remember the slogan "No matter how busy I am, I will have a cup of coffee with you"? By sharing images and lines of hot coffee with friends on winter nights, Nestle has become almost synonymous with instant coffee. From instant coffee powder and particulate coffee powder to the three-in-one coffee market with sugar and cream, it is not difficult to see Nestle products. However, the global food company has not only gained a place in instant coffee by emphasizing speed, convenience and low prices, but has regained dominance in the high-end coffee market through coffee capsules in recent years.

According to Euromonitor, a consumer research agency, the annual sales of coffee capsules worldwide is about 20 billion, with a growth rate of 300% in the past five years, and the Wall Street Journal predicts that coffee capsules will account for 25% of the global coffee market in the future. Nestl é Nespresso, the founder of coffee capsules, naturally contributes to this trend.

Adopt a sales model that faces consumers directly.

Nespresso's sales model facing consumers directly

Coffee capsules, which came out as early as the mid-1970s, did not receive much attention in the early days, until the 1980s, when the office and restaurant access began to produce demand for coffee machines, and Nestle Coffee officially established its coffee capsule division as a Nespresso brand. However, limited by the low-price image of Nestle coffee in the past is too strong, and the company is good at a large number of marketing advertising strategies can have little impact on office and restaurant access, so the sales of coffee capsule machines were gloomy at the beginning.

After a setback, Nespresso CEO Paul Gaillard quickly thought about the two main advantages of the brand: small size and easy to operate, which may be more attractive to middle-class families than to consumers in the office and restaurant market. In addition, Gaillard also decided to abandon the strategy of promoting products through coffee shops, and instead adopt the original service model, which is similar to that of traditional coffee shops and focuses on directly facing consumers. So Nespresso began to set up business teams and member organizations, through a large number of customer service personnel to regularly remind consumers to buy coffee capsules, and then set up a distribution system dedicated to Nestle coffee capsules, enhance consumer experience and establish a good interaction with customers, at the same time, Nespresso became one of the earliest enterprises to use database marketing.

Take the fashion and luxury style as the product positioning

At a time when sales growth is becoming more and more stable, Nespresso began to create opportunities for high-end consumers to try this brand of coffee through cooperation with airlines and restaurants; through actual trial drinking, consumers feel that coffee capsules are better than instant coffee, and at the same time, they also experience the convenience of being better than traditional coffee machines. In addition, Nespresso attempts to make the positioning and features of the brand more prominent by opening coffee capsule stores that emphasize exquisite taste. In order to make Nespresso more fashionable and boutique image, Nestle Coffee invited experts to redesign Nespresso trademarks, machines and capsules, and successively opened direct stores on Madison Avenue in New York and Champs Elysees in Paris. Regions adjacent to luxury boutiques around the world sell coffee capsules in the form of luxury goods.

Not only will there be professional service staff in the store to provide customers with tasting service, but sometimes they will even hold Nespresso night for new models. Wait for the party to transform Nespresso from a seller of coffee machines into a taste creator with a coffee atmosphere. Since 2005, Nestle has invited George Clooney and Penn é lope Cruz one after another. When Hollywood stars act as spokesmen, Nespresso's high-end coffee image will once again become the best representative of exquisite coffee with the advertisement of the spokesman with elegant and fashionable temperament.

Nestle coffee

It is understood that Nespresso has been committed to promoting the patent protection of the brand, and has applied for more than 1700 internationally registered patents for its coffee machine, coffee capsule and service concept. This action provides a powerful umbrella for the company. After all, the coffee capsule machine, which is similar to the inkjet printer, is mainly profitable from the capsule. This ensures that consumers cannot use other brands of capsules once they buy Nespresso coffee machines as competitors continue to enter the market, while helping to maintain the brand's leading position with a market share of more than 35 per cent. Secondly, set up direct stores and sell them online. The concept of equal channels allows Nespresso to set exclusive prices for its own products, making the price of a cup of capsule coffee several times higher than that of coffee made from traditional filter paper. French newspaper Figaro once pointed out that the high income generated by Nespresso is almost at the same level as that of the luxury industry.

However, although Nespresso coffee capsule brings many consumers the good feeling of enjoying the present and experiencing life, recently it has also aroused public misgivings and disputes because of the impact of product packaging on the environment. In the era when consumers gradually pay attention to the issue of environmental protection, how coffee capsules strike a balance between taste, fashion and green happy lifestyle may depend on the next step of Nestl é!

[editor's note]

Nespresso said that recycling systems have been built around the world, while Taiwan launched the Nespresso coffee capsule recycling program in July this year. The company stressed that every component of Nespresso coffee capsule can be recycled: including aluminum packaging and coffee powder. Before recycling, it is necessary to separate the aluminum outer packaging from the coffee powder so that it can be recycled and reused respectively. This process consumes very little energy, and aluminum can be recycled without affecting the weight and quality of aluminum.