Saturday, 6 August 2016

Wake up and smell the Café Nespresso - further developments in vertical market strategy

Café Nespresso coffee shop at
 100 Cheapside development
 in early 
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 .

'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.
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

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