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New generation branding
It seems to me that Nespresso is a new generation of brand, that combines product "sausage", emotional sizzle and also service. Here's a few thoughts on what they have done:
1. Amazing design: check out those capsules. They're so damn pretty, its almost a shame to use the things. And the machines are perfect for today's design conscious kitchen.
2. Super premium: when you work out the cost per serving its really scary, especially if you make a double espresso. You're talking 0.4 Euros a capsule, versus, a c. 400% premium vs. using a jar of Nescafe
3. Super sausage: the coffee is very good. The Nespresso speciality is the "cremosa" topping you get on the espresso. They also have a huge range of different blends, each with its own colour of capsule.
4. Direct to the consumer: this is a biggie. Nespresso is one of the few brands who markets direct to the consumer. You order your refills by phone or internet. And this has some major advantages:
More margin: you are seller and retailer
No trade negotiations: want to launch a new product? Just list it. Contrast that with the other 99.9% of FMCG brands who have to negotiate the minefield of negotiation with the major retailers.
Data is king: Nespresso know all their customers. Just think of the value of the data base of affluent customers alone. back in 2004 they already had 1,[url=http://nikefreetilbud.hcslnet.com]nike free tilbud[/url],6 million active Nespresso Club members!
5. Brand palaces of desire: Nespresso pioneered the brand store, long before Apple opened up their first Apple store. It now has more than 30 "boutiques". The latest, the Paris flagship at 119 Champs Elysees is an amazing place, that I must visit next time I am in Paris. Here are some of the features described on the website of this 2story brand palace:
I admit that it makes delicious and easy eseprsso. I did a little research and found that the pods cannot be recycled in the US and that they don use fair trade coffee (which is less of a surprise). When I though of all of those delicious pods accumulating in the garbage, I just couldn justify the machine. I found that not only do they still do this, but more recently they were found to be contracting with the Mugabe family (mass genocide) in Zimbabwe, sold contaminated dog and cat food in Venezuela, and have been involved with using contractors that utilize in slave labor. That delicious eseprsso is not so delicious anymore. This is because you can control bean freshness, grind date, grind size, amount of beans used, tamp pressure, and extraction length and volume. You also have no control over milk texture (where the microfoam?), temp inconsistencies, and can have any artistic flare (hearts, tulips and triple rosettas, anyone?). You are also limited to buying only the capsules provided (as opposed to almost limitless bean variations from cafes), which are an expensive way to buy beans, plus are incredibly wasteful.

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