DAS GESCHÄFTSMODELL NESPRESSO #FragDenProf

Summary

The 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.