Clearly from the product side a unique innovation from Nestlé. Add your own distribution network (Nespresso Boutiques, Customer Service and Internet ordering system) and you have a captive consumer. This has even become their business model: by establishing its own channels, Nestlé is cashing in all the margins traditionally earned by the retailers.
And this retailing trend from big consumer goods companies is here to stay. How else can they grow the business in developed countries? The times when growth was driven by the simple fact that retailers were opening new points of sales is over. Place in the shelves is limited and new products need necessarily to substitute other products if they want to have a real chance of being listed. And honestly, it is becoming increasingly difficult to make people eat more… The logical alternative is to develop your own sales channels… Consumer goods companies will need to go the extra mile!
And how does Nespresso maintain their clientele loyal? From the product side by continuously delivering quality products and innovations, and from the retail side by turning the shopping experience into a sensory experience. I remember the first time I got into a Nespresso Boutique: I was offered to degustate a new coffee flavor and was given a chocolate to accompany it. All done with a smile from a beautiful hostess in a beautifully decorated shop. It felt great to be a coffee connoisseur and I ended up buying both!
Posted by Ignacio Molins
No comments:
Post a Comment