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Café Nespresso coffee shop at 100 Cheapside development in early August. |
A vertical market is a market in which vendors offer goods
and services specific to an industry, trade, profession, or market segment of
customers with specialised needs.
Having sold their coffee products through
third party shops and cafés, Nespresso have started to move towards a vertical market model in
recent years where they have set up their own retail boutiques where their coffee pods
and club membership are sold.
The next move is the Café Nespresso coffee shop. One has opened at
100 Cheapside in the City of London ( financial district) development near to the Mansion House and Bank of England .
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| 'Walk-thru ' cafe .City customers queue up to place their orders and collect their orders through hatch much like a Drive thru |
It offers customers an extensive range of coffee – made from capsules – and “premium” food to pair with coffee.
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| Premier food to pair up with their Nespresso pod coffee. Notice the screens on the right current selling coffee club messages |
The move comes as the competing top coffee brands battle it out
to attract customers with “enhanced coffee experiences”.
Nespresso fans are encouraged to become members of its club.
The company is also expanding its retail boutiques. These 'Apple i store' style showrooms where customers can sample the range of coffees, speak to
experts and purchase machines and accessories. There are now thirteen Nespresso
boutiques in the UK and Ireland.
“Café Nespresso is our latest innovation in the retail and service arena,” -Francisco Nogueira, general manager of Nespresso UK and Ireland.( reported by the Guardian Newspaper)
“As we have seen through the expansion of our boutique
offer, there is a great deal of demand from UK customers for our range outside
of the home. Café Nespresso is the next step in our customer experience.”
Some adverse has been
voiced by some consumers who have complained on social media that they did not
want to “pay through the nose” to buy capsule coffee in a cafe that they could
make at home.
Nespresso, which founded the capsule method of making
Italian-style espresso coffee 30 years ago – and launched it in the UK 10 years
later – has also recently launched its first internet-connected coffee machine.
Designed to “suit increasingly connected lifestyles”, the
Prodigio will allow owners to instruct their machines to brew a cup of coffee
to be ready as they wake up – a modern version of the old-fashioned teasmades.
It uses Bluetooth to connect with an app to allow users to choose from a selection
of coffees and brewing techniques – and order new supplies – and is already on
sale at Debenhams and John Lewis.
Related links:
The 7 Ps of marketing coffee pods
