22
May

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The Marketing club, with Alex Roemer (IMBA 2009) leading the initiative, invited Vincent Termote, Managing Director at Nespresso Iberia, to share one of the most successful and passionate cases and his exceptional approach to “Nespresso Ultimate Coffee Experience”.

 

While coffee being first and foremost a commodity-coming second after oil-, Nestlé succeeded with Nespresso in all challenges in creating a luxury segment in this mature market.  Termote discussed how Luxury is evolving into exclusivity of experience; Nespresso not only delivers apremium product but a promise for emotions that fill the brand uniqueness.

 

Vision  

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Nespresso wants his highest-quality premium portioned coffee to become the icon for the perfect cup of coffee, and they are getting it! As a result, Nespresso logo is synonymous with luxury, innovation and service in many countries. They have gained this enviable position further to a very coherent and selected differentiation strategy for their products and services, due to the fact they are directly involved in controlling every single step of the entire value chain “from the bean to the cup”, maintaining highest quality -almost perfection- in all elements.

Although integrated in Nestlé Group, Nespresso has always remained since its foundation in the early 90´s as a stand-alone company; “otherwise, we would have gone lost in the shelves of big super markets and hypermarkets”, explained Termote. They were innovative and did not mind to break paradigms when 15 years ago they betted for the internet channel; now 50% of their business is on the net.  

 

Trilogy

 

Nesspreso 20-05-2009 026.jpgAt the heart Nespresso system, concept, is a unique trilogy (Triple A) ensuring the customer promise:

  • superior Grand Cru coffees (control from producer to packaging)
  • state-of-the-art machines (simple, smart and stylish)
  • an outstanding customer service, “The Nespresso Club” (channel control)

coffee.JPGThe Coffees 

Nespresso works with 22,000 producers selected among the best in gourmet coffee. Specialty coffee only makes up 10% of the world production, and still only 10% of these selected coffees meets the company high standards.

All farmers are involved Nespresso’s AAA Sustainability Program, further to the company´s commitment to deliver excellent quality coffee while supporting producers and their communities from a social, economic and environmental standpoint. As Termote stated, they pay extra for their production in a win-win relationship, to guarantee welfare and development for them, and their engineers do also help farmers to adopt the best agricultural practices in order to keep guaranteeing the best quality ranges and avoiding producers´ temptation to go to bigger and poorer beans.

 

Simple, Smart and Stylish machines

 

Nespresso has invested a very significant amount of resources in technological innovation and design to offer a series of simple to use but highly reliable and stylish machine for customers´ delight either to perfect fit in a kitchen, a living room or an office. They are currently launching Citiz range, focused on an urban style of life.

 

Service 

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The company has a rich CRM solution that allows giving providing a personal relationship to each of its 6 million individual clients. Further to a consistent knowledge of their consumption patterns, they quest for high valued loyalty campaigns such as offering customers his/her favorite product for Christmas or reminding them to review their filter machines after a certain use.

B2B is still a small but consistent line. Passionate customers at home want Nespresso at the office or at their favorite hotels and restaurants. For catering trade, machines´ easy use and standard results are a guarantee for the client satisfaction. Many of the world best restaurants have already adopted Nespresso , such Arzak in Spain or The Fat Duck in UK.

 

George Cloony 

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Why Nespresso had chosen star George Cloony as its main ambassador raised curiosity of attendants; the answer: elegant and classy but not arrogant, he is the perfect brand image.

 

We listened to an amazing successful story of a company with a sustained annual compound growth rate of more than 35% during the last 7 years. But worth of it? Vincent Termote advices to our future executives and managers:  Go for your dreams, but be coherent; take risks, be innovative, aspire to perfection; go for the extra mail and work with dedication, passion and entrepreneurial spirit.”

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