Founded in Switzerland in the 1980’s Nespresso has been making the luxury of coffee at home feel like an exclusive experience for the contemporary customer seriously hitting the mark!
Their strategy has been extremely clever in so many ways, but I want to guide you through the way they have targeted consumer behaviour. There are many elements to consumer behaviour that are essential to why and how purchases are made, but this piece will focus on the purchase process and psychological influences on consumers.
THE PURCHASE PROCESS
Pre-Purchase: The consumer identifies that they have a need for a product or service and they will begin to look into how they will solve this.
Purchase: The consumer narrows their options and makes a decision to purchase
Post Purchase: Customer satisfaction, where by the consumer is enjoying their purchase and when happy with a purchase is likely to repeat the process and recommend the purchase to others generating Word of Mouth feedback for the company or brand.
The diagram below represents the stages a consumer experiences when making a new purchase.
Nespresso really is offering the complete consumer experience, convenience, luxury, taste and service. In a very competitive market where Nespresso may have just become the “APPLE” of coffee machines they needed to stand out in the crowd. The decision to purchase a coffee machine for your home may be relatively simple for some but the biggest issue the consumer may face is choice. In today’s market there has never been so much choice or ability to review products to help make the choice (Iacobucci,D. 2014).
Franke, Schreier & Kaiser (2010) describe the possibility to customise products and services to meet their needs and desires. This in turns adds a “feeling of uniqueness, symbolic benefit & pride of authorship as well as hedonic or experimental benefits related to the process of customization”. ( Broniarczyk, S., Griffin, J. 2014)
However, the freedom of choice does not always help the customer make a decision, in fact it may make the whole process even more complex. An extensive choice of products leads the consumer to experience task complexity; whereby the choice is extensive, the information load is high when comparing all the possibilities and the consumers attempt a trade-off between each products’ attributes causing conflicting views in their decision-making process. The whole choice process may become emotionally difficult for the customer as they struggle to decide and small differences in products can increase uncertainty. Preference uncertainty as it’s known is the consumer’s inability to match attribute combination to desired benefit. (Broniarczyk et. al.)
The ultimate luxury experience of your morning coffee right at home with your favourite Nespresso blend, in your pre-ordered Nespresso pods, in your own Nespresso machine all ordered through your Nespresso club membership. Targeting the motives of why consumers make purchases, the Nespresso machine is purchased both for functionality and pleasure, and a great brand is able to capture multiple emotional needs at the same time. Looking at Maslow’s hierarchy of needs the consumer is thinking about their physiological needs — (Coffee is just as important as Water for some!!) as well as their social needs of belonging to an exclusive club which will provide status.
Through many aspects of marketing Nespresso is really targeting sensory perception. A series of clever advertising campaigns provide great visual stimuli to the customer; a sleek shiny Nespresso machine, with smooth blends of coffee made by well dressed and sophisticated George Clooney.
Even the description of their coffee, 16 varieties of Grand Crus coffee, all packaged in premium coffee pods hermetically sealed to preserve the volatile aromas and prevent oxidation helps the customer to visualise their product and brand. Whilst the consumer cannot touch the products they are able to imagine them and it is likely that customers will be drawn to members only exclusivity boutiques once they have made their initial purchase located in upmarket cities in locations that are iconic and prestigious such as The Avenue des Champs-Elysees in Paris.
Image Nespresso Boutique
Whilst it would seem the most important sensory perception to Nespresso would be taste and smell, which cannot obviously be seen in print advertising it’s the imaginary sense of how amazing the coffee tastes and smells that they are trying to create. Through their customer service and individualisation and customisation of their products the consumer is able to experience the taste sensation post purchase and most liking leads to repeat purchasing and word of mouth recommendation.
Nespresso’s campaign with George Clooney as a global super star who represents the glamorous lifestyle that Nespresso exudes all have the same music, helping the customer to recognise their brand and making the music synonymous with their adds. It is also important to note that in these advertisements you never seem to hear the noise of the coffee machine.
Consumers are able to sign up to the Nespresso Club which promotes exceptional customer service, offering 24-hour ordering services in a variety of ways and delivery from boutiques on the day of purchase. They have been able to create a closed market exclusively for their products. Not only do they promote exceptional service but they also reward the consumer with free gifts of pods they might like to try, enhancing the customer experience and loyalty program.
Nespresso really has managed to stay ahead of the pack by focusing on providing a consumer experience that is luxurious, exclusive, functional and convenient, drawing consumers in and making them want more. What’s next: bluetooth compatible coffee machines!! Seriously Nespresso!!
Iacobucci, D 2014. Marketing Managment MM4. Mason: South Western.
Broniarczyk, SM. and Griffin, JG. (2014) Decision difficulty in the age of consumer empowerment Journal of Consumer Psychology, 24 (4), 608-625…
Khamis, S (2012) Nespresso: Branding the “Ultimate Coffee Experience” M/C Journal 15 (2) journal.media-culture.org.au/…le/view/476
Tungat, M. (2014) It’s not coffee, it’s a lifestyle. Marketing Magazine, 119 (6) 21.
the-entourage.edu.au/…/lessons-in-strategy-from-nespresso-kodak-blockbuster. Accessed 31/072016
nespresso.com/au/en. Accessed 31/07/2016
Donna Robertson Deakin ID 216315528