Sunday, May 16, 2010

Nespresso: A Great Retail Case Study From A Supplier

Nespresso is always considered as one of the best example of a customer oriented company. It is a successful story, thanks to three main keys:
· Its nespresso machines: They deliver the highest pressure on the market, which means it extracts the most flavors out of the capsules.
· Its communication: By choosing George Clooney as icon of the brand, they have been able to build strong brand equity. The smart George fits perfectly with the image the clientele aspires to be.
· Its customer relationship management strategy: In order to buy coffee for your Nespresso machine, you need to enrol their Nespresso club program. 100% of capsules are sold by Nespresso, either online, over the phone or in their stores.

Now Nespresso is a great company because their core business is producing coffee. Nestle has been one of the leading companies on the coffee market for years, and has an expertise in different kinds of food producing. But with Nespresso, in order to build a unique system, they had to create a unique retailing system as I have said that allows them to control 100% of its customer information.

Who can say it know it all from its customers? Nespresso might be the only one. And thanks to it, they have been able to build over the years a tremendous success.

Most impressing, they have been able to implement their CRM strategy even though due to their top of the line positioning, they have never spend a dime in specials nor promotions.

Now nespresso sees some new challengers appearing, with retail’s private label and other coffee producers entering the market, trying to dump the price of the pricy capsules. But Nespresso seems to be way ahead of its competition to be taking back.

Nespresso has really been a great idea, and once again, a great retailing case study.