DAS GESCHÄFTSMODELL NESPRESSO #FragDenProf

Marketinginstitut

12 Apr 201806:51

Summary

TLDRThe video script delves into the business model of Nespresso, exploring how the company makes its coffee capsules desirable despite being significantly more expensive than regular coffee. It discusses the premium branding, the exclusivity of capsule sales through Nespresso, the 'lock-in' effect of the closed system, and the direct customer contact through the Nespresso Club. The script also touches on the patent protection and the logistics involved in delivering the capsules, concluding with the idea of a bait-and-hook model where the machine is the bait and the capsules are the ongoing profit.

Takeaways

💡 Nespresso's business model revolves around the sale of its coffee capsules, which are more expensive than regular coffee on a per gram basis.
🏷 The brand is associated with high-quality and premium espresso, using celebrity endorsements like George Clooney to maintain its premium image.
💰 A Nespresso capsule costs between 30 to 40 cents, which is significantly more expensive than regular coffee, yet consumers are willing to pay due to the convenience and quality.
🔒 Nespresso capsules can only be purchased directly from Nespresso, not in regular retail stores, creating a closed-loop system for the customer.
📦 Nestlé, the parent company of Nespresso, controls the customer contact and does not have to give a trade margin, thus earning more from the capsules.
🏭 Nestlé, being a food manufacturer, is involved in the production of the capsules, which is a key process in their business model.
🚛 The company also has its own logistics process to ensure the delivery of capsules directly to the customers' homes.
🔒 The Nespresso business model is protected by strong branding, patents, and legal rights, which prevent competitors from easily entering the market.
🔑 The 'lock-in' effect is a significant part of the business model, where customers are encouraged to become members of the Nespresso Club, further securing their loyalty.
💻 Nespresso machines are not the main source of profit; it's the continuous sale of capsules that generates revenue.
🤔 The script encourages viewers to consider how they could create a business that locks customers into their system and then offers continuous value to generate significant profits.

Q & A

What is the main product of Nespresso's business model?
-The main product of Nespresso's business model is coffee capsules, which are used in their proprietary coffee machines.
How much does a Nespresso capsule typically cost?
-A Nespresso capsule typically costs between 30 to 40 cents, with an average price of about 37 cents.
What is the significance of the Nespresso capsule in terms of coffee quality?
-The Nespresso capsule signifies high-quality, premium espresso coffee that is designed to be easily accessible for home use.
How does Nespresso differentiate its capsules from regular coffee?
-Nespresso differentiates its capsules by offering a premium, high-quality espresso experience that is not typically found in regular coffee shops or through traditional brewing methods.
What is the price comparison between Nespresso capsules and regular coffee in terms of cost per kilo?
-The cost per kilo of Nespresso capsules is between 70 to 75 euros, which is significantly more expensive than regular coffee that might cost around 10 euros per kilo.
What is the target customer segment for Nespresso's business model?
-The target customer segment for Nespresso includes private households and upscale offices, as well as hotels and gastronomy where the machines and capsules are often provided for exclusive use.
Why does Nespresso's business model exclude traditional retail channels for its capsules?
-Nespresso's business model excludes traditional retail channels to maintain control over the customer experience and to avoid giving up margins to retailers. Customers can only purchase the capsules directly from Nespresso.
How does Nespresso ensure customer loyalty and retention?
-Nespresso ensures customer loyalty and retention through the Nespresso Club, where members can purchase capsules using their customer number, and by controlling customer data to provide personalized service.
What is the 'lock-in effect' in Nespresso's business model?
-The 'lock-in effect' in Nespresso's business model refers to the strategy of selling the coffee machine at a lower profit margin and then earning revenue through the sale of proprietary capsules, which can only be used in the Nespresso machine.
How does Nespresso protect its business model through legal means?
-Nespresso protects its business model through strong branding, patents on the capsule design and production process, and by controlling the distribution of its capsules to prevent competition.
What is the core business process in Nespresso's business model?
-The core business process in Nespresso's business model is the production of the capsules and the establishment of its own logistics to ensure direct delivery to customers.
How does Nespresso's business model relate to the concept of a 'bait and hook' model?
-Nespresso's business model is an example of a 'bait and hook' model, where the initial product (the coffee machine) is sold at a lower margin to attract customers, and then the ongoing sales of the capsules (the 'hook') generate the main revenue.

Outlines

00:00

😀 The Business Model of Nespresso Capsules

This paragraph delves into the intriguing business model of Nespresso, a brand known for its coffee capsules. The script discusses the cost of a single capsule, which ranges from 30 to 40 cents, and contrasts this with the premium price point relative to regular coffee, which is significantly cheaper. It highlights the brand's appeal, often associated with a high-quality lifestyle, and its customer base, which includes private households and upscale offices. The unique selling proposition of Nespresso is its practicality and convenience for home use, setting it apart from traditional espresso machines that require more effort and space. The script also mentions that Nespresso is part of Nestlé, a company with a vast portfolio of products, and that the capsule system is the only one that excludes traditional retail, allowing Nespresso to control the customer experience and eliminate the need to pay for retail margins. Additionally, the paragraph touches on the Nespresso Club, which offers members the ability to purchase capsules directly, reinforcing customer loyalty and data control for Nestlé.

05:01

😉 The Profit Mechanism of Nespresso's Business Model

The second paragraph focuses on the profit mechanism behind Nespresso's business model, which is based on the sale of coffee capsules rather than the coffee machines themselves. It describes the 'bait and hook' model, where the initial low-cost or free machine entices customers into a closed system, locking them into purchasing Nespresso's proprietary capsules for continued use. The paragraph explains that while customers can buy cheaper alternatives, the perceived quality and taste of the original capsules often prevent them from switching, thus ensuring a steady revenue stream for the company. It also touches on Nespresso's logistics, highlighting the direct delivery service to customers, which is a key part of the brand's customer service strategy. The script concludes by encouraging viewers to consider how they might apply similar business strategies to their own enterprises, emphasizing the importance of customer retention and the continuous earning potential of such a model.

Mindmap

Keywords

💡Nespresso Capsules

Nespresso Capsules refer to the single-use coffee containers used with Nespresso machines. They are the core product of the Nespresso business model, providing a convenient way for consumers to enjoy a quality espresso at home. The script discusses the high desirability of these capsules, despite their relatively high cost compared to regular coffee, and how they are a significant part of the company's revenue stream.

💡Business Model

The business model in the context of the video refers to the way a company creates, delivers, and captures value. For Nespresso, it involves selling coffee machines at a lower margin while making profits from the continuous sale of proprietary capsules. The script explains how this model locks in customers to buy only Nespresso capsules, ensuring a steady income.

💡Premium

The term 'premium' in the script signifies the high-quality and high-price positioning of Nespresso products. Nespresso markets its capsules as a premium choice for consumers seeking a quality espresso experience. The script mentions how the premium branding is part of the customer's perceived value and lifestyle.

💡Customer Loyalty

Customer loyalty is the ongoing preference for a brand's products or services. In the script, it is discussed how the Nespresso business model fosters loyalty by making customers members of the Nespresso Club, which offers exclusive benefits and reinforces the relationship with the brand.

💡George Clooney

George Clooney is mentioned in the script as the celebrity endorser for Nespresso, contributing to the brand's image and marketing appeal. His association with the brand helps to reinforce the premium and desirable nature of Nespresso capsules.

💡Patents

The script talks about patents as a form of intellectual property protection that Nespresso uses to secure its business model. Patents prevent competitors from producing similar capsules that can be used in Nespresso machines, ensuring that customers buy only Nespresso-branded capsules.

💡Logistics

Logistics in the video refers to the process of arranging the storage and transportation of goods, in this case, Nespresso capsules. The script mentions that Nestlé has to establish its own logistics to deliver capsules directly to consumers, which is a key part of their business operation.

💡Branding

Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product. Nespresso has a strong brand identity, as discussed in the script, which is crucial for creating a perception of quality and desirability among consumers.

💡Market Exclusivity

Market exclusivity in the script refers to the fact that Nespresso capsules can only be purchased through Nespresso channels, not in regular retail stores. This exclusivity is a strategic part of their business model, ensuring control over the customer experience and pricing.

💡Lifestyle

Lifestyle in the context of the video is associated with the image and values that Nespresso projects. The script mentions how the brand is not just about selling coffee but also about offering a certain quality of life and experience to its customers.

💡Lock-in Effect

The lock-in effect is a phenomenon where customers are compelled to continue using a product or service due to high switching costs or other barriers. In the script, this concept is applied to the Nespresso business model, where customers are 'locked in' by the need to purchase proprietary capsules for their machines.

Highlights

Nespresso's business model is intriguing, focusing on the premium coffee capsule market.

A single Nespresso capsule costs between 30 to 40 cents, making a cup of coffee more expensive than regular coffee.

Nespresso's advertising features celebrities like George Clooney, emphasizing high-quality espresso.

Nespresso stands for high-quality, qualitative espresso, positioning itself as the only true way to get a good espresso at home.

The actual coffee inside the capsules is not the main focus, but rather the convenience and premium experience.

Nespresso capsules are more expensive on a per gram basis compared to regular coffee, priced between 70 to 75 euros per kilogram.

Most Nespresso customers are unaware of the high cost due to the practical solution and high customer benefit provided.

Nespresso targets private households and upscale offices as its customer segments, offering a premium lifestyle.

Nespresso is part of Nestlé, which controls the exclusive sale of capsules, ensuring customer contact and no trade margin.

Nespresso capsules can only be purchased through Nespresso, not in regular retail, maintaining control over the customer experience.

Nespresso machines are often sold through partnerships, such as with electronics retailers, with salespeople promoting the brand.

Nespresso has a strong brand and legal protection through patents and trademarks, securing its business model.

The core business process of Nespresso is the production of capsules, with Nestlé being a food manufacturer unlike competitors.

Nespresso's own logistics are crucial, ensuring direct delivery of capsules to customers upon request.

The main profit comes from the sale of individual capsules, not the machines, creating a 'lock-in effect' for customers.

Customers buying machines become members of the Nespresso Club, allowing them to purchase capsules with their customer number.

Nespresso's business model is protected by strong brand recognition and legal rights, making it difficult for competitors to enter.

Nespresso's capsules are patented, though some patents have expired, leading to new competitors in the market.

The business model encourages customers to stay within the Nespresso system, ensuring continuous revenue from capsule sales.