Swot Analysis Of Nespresso

989 Words 4 Pages
It’s a very simple product hiding the complexity of a huge innovation process.
At the heart of the Nespresso system is the exceptional interaction between their coffee capsules and their machines. Integrating advanced technology and function, Nespresso machines manage the exact balance between water temperature, pressure, quantity and speed. They are specifically designed to enhance the aroma, cream and flavour of their Grand Cru coffees, creating the perfect cup every time.
Nespresso sources an exclusive selection of the finest green coffees from the top coffee-growing regions of the world. The beans they use are rare and precious. In fact, only an estimated 1% to 2% of the coffee grown globally meets their specific quality, taste
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They have different basic ranges of product from coffee to tea and even hot chocolate. Tassimo is also doing the same. Nespresso differentiates by focusing only on Grand cru and machines. It is the only brand to manufacture machines with 19 bars power, the minimum limit to have a real espresso. The fixed costs for competitors aren’t that high compared to Nespresso ones. Tassimo and Senseo chose the traditional retail distribution channel. They are present in numerous retail branches, sold online through own website and other retailing e-platforms like Amazon. For those brands, it’s somehow easier to reach the consumer, but the drawback is also a stronger dependency to the retailers. Nespresso created a unique path to sell its product. They built stores on famous areas, sell online only through their website. The last distribution channel is the appliance retail …show more content…
These shops are the base of the experiential marketing strategy developed by Nespresso. All has been designed so that the customers make themselves comfortable: the atmosphere is warm. The potential customers can taste the different flavours of coffee, try the espresso machines and listen to the advices of specialised salesmen. The aim is that the customers see the purchase as a pleasant experience which will make them want to come back in the shop and buy other Nespresso products. These shops are a real show window for the brand, to show the customers the “Nespresso’s drinker way of

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