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Nespresso's strategy

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  1. Who is the target?
    1. Middle and upper class
    2. Little emperors
    3. Expatriate community
  2. What are the Products to focus on, and at which Price?
  3. What about competition?
  4. What distribution centres? (Place)
  5. What kind of communication? (Promotion)
    1. The Beijing shoppers guide
    2. Leaflet
    3. Asian Hospitality Association (AHA)
  6. Conclusion

How Nespresso made it to turn a basic product into a luxury one through its CRM strategy? Drinking coffee is such a common habit that brands always offered all the elements to enjoy this beverage at home; the coffee, the machine, the filters? As a result, the quality and taste can never constant and the best way to appreciate a high quality coffee was in a bar or restaurant, equipped with professional machines. Nespresso nevertheless decided to open access to premium coffee experience at home? A strong concept, a relevant positioning supported by an exemplar CRM strategy leaded the brand to success. So we will first present the concept, then analyze the key elements of the strategy and try to foresee threats to finally develop recommendations.

[...] Make sure that the CRM strategy is profitable. One point of the ?Successful loyalty management? theorem (Stones, 2003) lays emphasis on the understanding of how CRM makes money, since this is the company's main goal. As the concept of Nespresso itself is based on a massive use of CRM, we can wonder if the efficiency and use of CRM could be improved in Nespresso. Indeed, the massive investment for the boutiques is high and is supposed to reinforce the customer loyalty and strengthen the feeling of belonging to the Nespresso community. [...]

[...] Besides of this double need fulfilment, Nespresso also performs a very efficient CRM integration, and applies a differentiation strategy based on total service offer. In fact, the services are strongly associated with the buying of the machine, so that all the CRM is part of the product. It increases the quality by adding to the high technical advantages of the product a real emotional link with the customer. Finally, the company tends to value the product by focusing on advice and expertise dimension only club members are targeted. [...]

[...] All these elements reassure the customer in his choice and satisfy his self esteem and belonging to elite Cosy boxes and design cups show his affiliation to the club 2 Strategy The product Nespresso aims at offering to the consumers an espresso which offers all the qualities of the Italian espresso directly at home: unique concept for an espresso always perfect Nespresso conveys the luxury through a product initially considered as consumption good: the coffee. How Nespresso became a success story? [...]

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