Development of Nespresso - Research Paper Example

? Nespresso The development of innovative products/ services is a prerequisite for firms which are interested in securing their position in the global market; the introduction of Nespresso in the market can be characterized as such initiative. Nestle has managed to identify the gaps in the particular market – referring to the need for simplifying the process related to the preparation of Espresso – and developed a product which is characterized by quality and time-saving. Despite the fact that the public has experience on such products – referring especially to the Metodo iperEspresso of Illy and other pods/ capsules of similar characteristics - consumers worldwide have welcomed Nespresso; the reasons for the success of the particular product are analyzed below emphasizing on its advantages towards products with similar characteristics. In accordance with Davids (2009) one of the most important advantages of Nespresso compared to other similar products is the high range of the blends available; moreover, it seems that each of these blends is different (Davids 2009); from this point of view, Nespresso offers to the consumers the ability to choose among the blends available, a chance which is not given to other products, such as the Metodo iperEspresso (Illy) which has only three blends (Davids 2009). Apart from the above characteristic, Nespresso is distinguished from other products of this type in terms of quality. Each of the Nespresso blends has been produced using roasted coffee from different areas of the planet; in accordance with Davids (2009) the blends of Nespresso are produced using coffee elements from Africa, Brazil and Colombia (Davids 2009). In this way, a unique combination – in terms of the aroma and flavor of coffee – is achieved. In terms of cost also, Nespresso seems to be advantageous – compared to other similar products; in the report of Davids (2009) it is noted that the average cost of each Nespresso capsule is estimated to 55 cents – which is characterized as a rather cheap option for having a coffee of such quality. Of course, the brand name of the company involved, Nestle, is considered to have a significant role in the success of Nespresso. Indeed, Nestle is a firm operating in the food industry for quite a long; the firm’s name has been particularly related to food for infants; the impression that all the firm’s products are of high quality can be easily developed – an assumption that, actually, it would be valid. The differentiation of Nespresso from the other – similar – products in the market is also highlighted in the article of Sharp (2007), published in the Independent. In accordance with Sharp (2007) Nespresso could be characterized as one of the most profitable products of the specific category bringing to its initiators a profit of approximately ?500 annually. The reasons for the success of Nespresso are analyzed by Sharp (2007) as follows: At a first level, it is noted that the firm that produced Nespresso, the Nestle, has been well known for the quality of its products. This fact has significantly helped the particular product to be welcomed by consumers internationally. However, in practice, it has been proved that Nespresso has a series of additional advantages, such as: its name: the name given to the product defines precisely its characteristics; there is no threat of misunderstanding in regard to the type and the general characteristics of the product; furthermore, its name is memorable, being distinguished from other similar products, the names of which are difficult to be remembered (Sharp 2007). The involvement of Nespresso in daily meals – as promoted by the firm’s marketing team – is also characterized as another significant advantage of Nespresso compared to the similar products of rivals. More specifically, Nespresso is offered, as an after-dinner option, to well – known (but not expensive) restaurants, such as Sketch and The Fat Duck (Sharp 2007); in this way, the product is made known to the public as an after-meal option. At the same time, Nespresso coffee shops have been established internationally – aiming to make the access to the particular product easier (The Shot 2006). In this way, Nespresso becomes a coffee that can be enjoyed all day, as a first drink in the morning and last drink in the evening, a perspective that clearly gives to the specific product a significant advantage towards other products of such characteristics/ qualities. In other words, the reason for the success of Nespresso internationally can be identified at the following fact: the unique characteristics of the product have been made known to the public through appropriate marketing policies; it is in the context of these policies that Nespresso has been promoted to the market rather as a trend than as a common coffee. Moreover, since its entrance in the market, Nespresso has been available to people of all levels of income; i.e. Nespresso has not been a luxury option; the idea that the specific product is available to all people – no matter of their financial status, has been crucial for the success of Nespresso towards its rivals – which still are considered, even if having similar characteristics, as a costly coffee option. Additionally, Nespresso offers to the consumers the chance to be independent each time they want to have a cup of espresso; in accordance with Sharp (2007) in the past, in order to enjoy a cup of espresso, a consumer had to search for a cafe that offers the specific type of coffee – since in the past the production of Espresso required machines of significant size. Through Nespresso, consumers become familiar with a different trend, the option to have their cup of espresso at their home – i.e. without having to travel. Of course, such option is also available through other products of similar type – however, the specific coffee is differentiated from the other Espresso capsules as of its quality and aroma – range of blends (Sharp 2007, as also noted above). In accordance with the issues discussed above, the success of Nespresso in its market is influenced by many, different factors. In the context of competition, the specific product has been negatively criticized as of its components (patent), an issue highlighted by Mullier (2011); however, the value of the product in terms of quality cannot be doubted. Moreover, the other advantages of the product – as developed above – cannot be ignored. These advantages have been the basis for the expansion of the product worldwide, despite the strong competition in the particular industry. Works Cited Davids, Kenneth. “Convenience First: Espresso Pods and Capsules.” January 2009. Coffee Review. 14 March 2011 . Mulier, Tom. “Nespresso Is Probed Over Ethical Coffee Patent Allegations.” 10 March 2011. Bloomberg. 14 March 2011 . Sharp, Rob. “The cult of Nespresso: Could it really be the best cup of coffee money can buy?” 4 October 2007. The Independent. 14 March 2011 . The Shot. “Nespresso coffee shops around the world: Why?” 6 November 2006. The Shot. 14 March 2011 . Read More