the nespresso story, on the cutting edge
DESCRIPTION
An interview by Maarten Schafer and Anouk pappers with Joachim Richter. [Published in CoolBrands, the Guru Book 2009] [copyright cool4ever]TRANSCRIPT
On the cutting edge
219
Coolbrands: M
aarten &
Anouk in d
iscussio
n w
ith H
.-Joachim
Ric
hter
Members also receive the Nespresso magazine, a bi-annual “pleasure
guide” for coffee lovers using journalists to tell the Nespresso story.
Rather than focusing solely on coffee products, the magazine highlights
the Nespresso lifestyle and issues of consumer interest, such as measures
the company is taking to ensure its business model is sustainable. More
than two million copies of the magazine are distributed around the globe
in eight different languages.
The most recent move is the famous advertising campaign with ‘super
premium brand’ actor George Clooney. The choice of Clooney fits the
Nespresso character - successful, not always following the rules, doing
your own thing and doing it in style. An icon is being born.
Green Coffee: The Nespresso AAA Sustainable Quality ProgramThe green coffee beans Nespresso uses in its Grands Crus blends are some of the rarest in the world. What’s more, such beans are often grown by small scale farmers in some of the world’s more remote locations. To ensure a sustainable, beneficial and environmentally sound relationship between Nespresso and its valued coffee growers, the company launched the Nespresso AAA Sustainable Quality Program in 2003. With various partner organisations, the program works to ensure the long-term supply of the highest quality ‘green coffee’ through sustainable practices, economic viability, environmental stewardship and social equity to ensure that farmers benefit from their commitment to the highest quality.Today, more than 35 percent of Nespresso beans come from the Sustainable Quality Program and the company has committed itself to increasing this to 50 percent by 2010. All at the company share a sense of pride and enthusiasm about the positive impact this initiative is already having on farmers and their communities around the world.The program also acts as a powerful bridge in linking all stakeholders that participate in producing the perfect cup of coffee. What many people don’t realise is that many of the farmers don’t get to taste their coffee – it is made far away from where it was grown. In an effort to build relationships between everyone at the company – from small scale farmers to those who take their place at the boardroom - Nespresso often visits its valued coffee growers. One such visit saw company representatives call in on a tiny little place in Mexico where one of Nespresso’s Special Club limited editions is grown, Ixhuatlan. The people of the village were extremely proud to see that their town was associated with the company and known around the world for its great coffee. They were very amazed to see their coffee had been placed inside a capsule and delighted to finally be able to taste the finished product. Nespresso in the country of origin is also a valued brand, a brand people are proud to supply.
CEO Richard Girardot | Number of employees 2,500 thereoff 1,600
face-2-face with customers | Company turnover 2007 € 1.7 billion | Company values Pleasure, perfection, estheticism and simplicity | Mission Becoming the Icon for Perfect Coffee Worldwide | Brand promise
Offering the Ultimate Coffee Experience | Primary target group Coffee
connoisseurs around the world | Primary advertising media Word of
Mouth
The third component of the company’s trilogy is personalised service.
Nespresso has again worked to create an exclusive relationship between
itself and its customers by creating special distribution channels for
its products. In this way the company interacts with consumers to
guarantee a high end service. Nespresso sells its coffee capsules via
three avenues: its website, dedicated Nespresso boutiques and through
the Nespresso Customer Club where members can place orders online
or through a 24/7 phone line. In all forums, the company strives for an
individually tailored service. Instead of simply serving as a forum where
customers can place their orders, the Nespresso website keeps a record
of individual customer purchasing habits and uses this information to
provide feedback and recommendations on different blends which
match the customer’s tastes. Indeed, the company views its website as
an online boutique and the stylish art direction, rich and earthy colours,
relaxing music and interactive display exude sophistication and style.
The site has become the bulkhead in the Nespresso branding push.
Visitors to the site increased by 33 percent last year, peaking at an
amazing 24 million. The site presently accounts for around 48 percent
of all Nespresso sales, making it the main bridge linking consumers with
the company.
Emotionalise the brandThat’s not to say Nespresso does not have a physical home. The company
continues to roll out its line of Nespresso boutiques, giving customers a
hands-on experience of the Nespresso identity. The idea of the stores is
to make the brand more present in consumers’ lives, allowing them to
touch, smell, see and try Nespresso products in an environment which
best symbolizes what the company stands for. The boutiques often serve
as the first point of contact between a potential customer and Nespresso,
so the company has gone to great trouble to ensure the sites represent
the Nespresso lifestyle; sophisticated and understated.
Nespresso boutiques follow three blueprints: in-store boutiques which
are rented spaces in high end department stores; stand alone boutiques
in key street locations and flagship stores located in the world’s most
fashionable shopping districts, establishing Nespresso as a super
premium brand.
Joachim, “By the end of 2008, we plan to have established 175 boutiques
around the globe. All will help to build brand visibility and “emotionalise”
the brand-consumer experience.”
The Nespresso Club rounds out the company’s platform for engaging
its customers and enhancing its personalised service. Customers who
purchase a Nespresso coffee maker automatically become a club member.
The club provides its members with around-the-clock information
services, accessed via the internet or telephone, and guarantees delivery
of Nespresso products within 48 hours. Club members also benefit from
a door-to-door pick-up and return maintenance warranty covering their
Nespresso machine should something go wrong (the company will even
give you a machine while yours gets repaired). Joachim, “It’s the type of
service consumers usually associate with high end luxury goods, further
cementing Nespresso’s prestige.”
Taking a seat at the Nespresso Boutique which fronts the company’s headquarters in Lausanne Switzerland, it is clear that this is an organization which takes the pursuit of excellence seriously. Before employees enter the head office they must first walk through the boutique where customers go about trying, tasting and testing the range of Nespresso products. It’s all part of the Nespresso creed that every employee must live the brand; see it from a customer’s point of view.
Nespresso has done much to establish itself in the marketplace since
first releasing its coffee capsule technology. The company’s high profile
advertising campaign with Hollywood star George Clooney has given
the brand a suave and sophisticated face. The challenge now is to turn
Nespresso from a high profile company into a brand icon. In this drive,
the company is working to position Nespresso as more than just a cup
of the world’s best coffee. It is a premium experience. A lifestyle choice.
It is for people who recognize quality and want the best of the best. With
Nespresso, coffee has become a luxury brand.
We met H.-Joachim Richter, Director of Corporate Communications.
The Nespresso TrilogyJoachim, “Nespresso is not just a coffee it is a trilogy of perfectly portioned
highest quality Grand Cru coffee, smart and easy to use machines and
the Nespresso Club with personalized services. It’s a unique business
model which works to ensure a premium experience for customers in
all their interactions with Nespresso: from being exposed to the product
through advertising, to buying Nespresso products, to making a cup of
coffee and, of course, to finally drinking it.”
The trilogy is a dedication to quality in everything Nespresso does. The
first part concerns the beans. Only the best beans make the Nespresso
Grand Cru blend. The in-factory quality management process is
rigorous - every single bag is individually inspected for quality, blend,
appearance and aroma. Joachim, “Buying Nespresso Grands Crus
capsules, coffee lovers know they are going to get the perfect cup of
coffee every time.”
The trilogy’s second major pillar is the Nespresso range of coffee
makers. The smartly designed and easy-to-use Nespresso machines
are specifically developed to complement and enhance the aroma,
crema and flavour of Nespresso coffee – creating the perfect cup every
time. The coffee capsule – each perfectly encapsulating hundreds of
delicate aromas and flavours – is at the heart of every Nespresso coffee
machine. As Joachim points out, “Reinventing coffee and Espresso
machine design – inside and out – has become Nespresso’s trademark.
Our machines have become the must-have design accessory for any
kitchen, living area or home office.” The key themes for designers
are the integration of function and form and the combination of
simplicity and style. The design and development of coffee capsules
and machines was inspired by the idea to offer the same high-quality
Espresso created by baristas in the best Italian coffee bars directly to
consumers in their homes.
222