Nespresso UK

NESPRESSO CRM & Sales Management Presentation: Leonor SILVA Xiaoran XIE Yingyu LIU Gang WANG Adedeji Osobukola

Contents of the Presentation
Introduction:
Company’s Background
CRM & Sales:
Relationship Marketing & Selling Practices;
Analytical CRM;
Operational CRM
What the Future Holds:
Poster
References & Resources;

C ompany’s B ackground
Nestlé Nespresso S.A. is the worldwide pioneer and market leader in premium portioned coffee ;
Nespresso’s ‘ Ultimate Coffee Experience’ consists on a combination of the world’s highest-quality Grand Cru coffees, smart and stylish coffee machines and second-to-none customer service. ( Nespresso Academy Website )
Born in Switzerland in 1986, their products are now sold in more than 50 countries , directly to its customers . ( Nespresso Corporate Website )
They currently operate more than 79 prestigious boutiques in key cities around the world, such as London, Lisbon, Paris, etc.
Nespresso Academy Website

R elationship M arketing: Diagram of Trade Relations Customer as the unique point of contact between Retailers & Club; The retailers as a POS for machines only & as recipients of sales techniques training; Company as a recipient and a sender of the customer needs; The Club as a link between customers & Company Original Diagram by Leonor Silva Nes p resso Nespresso Club Retailers Customers

Selling Practices
Retailers – Sell Machines only;
Nespresso Club – Sells/ Provides everything else:
Exclusive membership for customers only;
Coffee capsules (sale & distribution);
Cups & saucers, sugar bowls, milk jugs, Aeroccino;
Spoons, sugar, cookies, chocolates;
Customer service, technical service, machine maintenance;
Nespresso Magazine.

R elationship D ata M anagement
Two types of analysis questions are found in Nespresso:
Segmentation and selection questions:
Divide the customer database into groups;
Draw a list of the name-address-city information for person and organizations;
Acquisition analysis and selection questions:
Emphasize on customer retention.
Pictures: Nestlé Nespresso website

S egmentation & S elections
Nespresso targets high-income households as its main customer ( Markides , 1999);
Segmentation of customers based on their value and loyalty for various products and customer type, with the objective to increase loyalty and/or consumption of the high potential customers .

C ross S elling & R elationship M arketing
Marketing a lifestyle brand...
Magazine:
Attempts to portray Nespresso as a lifestyle choice for only the world’s most upmarket and discerning coffee drinkers.
Nespresso Boutiques:
Coffee Sample to try;
sales assistents available everywhere to help you choose either coffee or accessories;
Limited editions of coffee ‘special club’
Pictures: Nestlé Nespresso website

R etention and C ross S elling
NESPRESSO system
- capsule, machine and club
Customers retention – cross selling
- capsules, sugar, crockery, cases, machine accessories etc.
Pictures: Nestlé Nespresso Website

T he E ffects of M arketing A ctivity
Establish Nespresso as the Super-Premium Brand and Concept
Become the Icon for perfect portioned coffee worldwide.
Source: Nestlé Nespresso Investor Group Meeting 2006

I nternet and W ebsite

I nternet and W ebsite
NESPRESSO’S WEBSITES:
Loading time and versions;
Contents and lay out:
The Nespresso system;
The premium blends;
The machine;
The Nespresso club;
Nespresso at the Office;
Nespresso at the Office:
‘ Free trial’ program.

D irect M ail and I nternet M arketing.
● Personalized customer services designed exclusively for the customer:
● Through the Website
● Sending magazine
● Sending Offers
● Sending Catalogues
● Making Regular Calls
● Providing after Sales Service
Favorable Word of Mouth
& Boost in Sales

W e C oncluded T hat…
- this is an innovative product (design, espresso coffee, clean), that filled a void in a market that expressed a need for it. Not a solution looking for a problem;
- a great complement strategy between machines and coffee dose refills;
- innovative marketing, in particular in terms of CRM ;
- a viral approach for a global product.
The combination of these 4 factors can be applied to the tech sector, and be used maybe as a recipe or framework for success.

R eferences & R esources
Business Source Complete (2004) ‘RTD Tea & Coffee in the United Kingdom’. (Euromonitor Report);
Jobber, D & Lancaster, G (2006) Selling and Sales Management,7th Ed. Harlow : FT Prentice Hall
Lewis, Herschell Gordon (2007) ‘A Capital Idea? Well….’,Direct, 19 (2), p64.
Markides, Constantinos C. (1999) A Dynamic View of Strategy. Sloan Management Review, 40(3), p55-63.
Mascarenhas, O. A; Kesavan, R & Bernacchi, M (2006) ‘ Lasting customer loyalty: a total customer experience approach’ . Journal of Consumer Marketing 23(7), pp. 397–405. Emerald Group Publishing Limited [ISSN 0736-3761]
Nespresso UK (corporate website) available from http://www.nespresso.co.uk
Nestlé Nespresso Investor Group Meeting Report (2006)
Peelen, E (2005) Customer Relationship Management. Harlow : FT Prentice Hall
Ryals, Lynette & Knox, Simon (2001) ‘Cross-functional issues in the implementation of relationship marketing through customer relationship management.’ European Management Journal, 19 (5), pp. 534-542
Verhoef, Peter C. (2003) ‘Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development’. Journal of Marketing, 67 (4), pp. 30-45
Winer, Russell S. (2001), ‘A Framework for Customer Relationship Management,’ California Management Review, 43, pp. 89-105.
Xu, M. and Walton, J. (2005) “Gaining customer knowledge through analytical CRM”, Industrial Management & Data Systems, (105) 7, p.p. 955-971.

The End Thank you. Any Questions?

CREDITS Slides Design /Editing Leonor Silva Graphics Leonor Silva Theory Content Leonor Silva Gang Wang Xiaoran Xie Yingyu LIU Adedeji Osobukola Hand-Outs & Poster Leonor Silva

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Nespresso UK

by Leonor de Mattos on Feb 04, 2009

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Nespresso UK — Presentation Transcript