As
consumers we love Nespresso. As luxury brand strategists we salute
Nespresso for outsmarting the best American Coffee companies and beating
them at their own game in the fastest growing segment of the coffee
industry: portioned coffee.
In 1996,
Nespresso patented the process of brewing espresso from capsules
containing ground coffee. But, North Americans crave larger cups of
coffee more so than espresso.
Keurig
was instrumental in turning portioned coffee into a $4.9 billion market
by licensing their K-Cups to major US and Canadian coffee brands
including Starbucks that accounts for over 25% of all K-cup sales.
Almost one-half of an isle at CostCo is devoted to selling multiple
brands of co-branded K-Cup coffee--IN BULK!
But, here
is the downside of K-Cups: They rob Starbuck’s (and other top
coffeehouse brands packaged in K-Cups) of their primary differentiator
as a luxury brand--freshly roasted coffee that you can get only at their coffee-houses. This created the opportunity for a new luxury brand niche: PREMIUM portioned coffee!
Nespresso,
launched the Viruoline system in 2014 expressly to target upper
demographic coffee aficionados in the US and Canada. What makes this
machine distinct from Keurig and all others is its patented Centrofusion
technology. It brews BOTH coffee and espresso with an enormous amount
of crema that significantly enhances the flavor and texture of the
coffee.
Nespresso,
buys only the top 1-2% of the finest coffee in the world--their Grand
Cru selection. It is exquitely packaged; you will never find Nespresso's
recyclable aluminum (not plastic) capsules sold in bulk. Their coffee
must be ordered by phone or online as a Nespresso Club member. It is not
available in stores other than Nespresso's own boutiques. That is how
they INSURE THE HIGHEST QUALITY, FRESHNESS AND CUSTOMER CARE!
Swiss-made
Nespresso trumped the top coffee brands in North America, creating a
new luxury niche which they undoubtedly will dominate. As a luxury real
estate marketing professional, how can you trump your closest
competitors?
Written by Ron & Alexandra Seigel-
ABOUT: Napa Consultants, International is the leader in brand strategy for the luxury real estate industry. They work exclusively with professionals who are passionate about gaining or sustaining market leadership. With an expertise in personal branding, company branding, luxury real estate website design and social media marketing they help their clients become the breakaway brand in their marketplace.
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