guest lecture

• The first Nespresso machine


  1986
• How was Nespresso created?

  A diverse range (Original Line, Professional Line, Vertuo Line), B2C, B2B

  
• Getting to the bean

  1. Coffee plant

  2. Green coffee

  3. Harvesting

  4. Processing

  5. Drying

  6. Hulling

  7. Roasting

  
• All aluminium capsules collected by Nespresso are recycled
• The 3 pillars of the AAA program

  • Quality, Productivity, Social & Environmental
• Lifecycle stages of a cup of Nespresso coffee

  • Green Coffee Supply (45%)
  • Use Stage (37%)
  • Packaging production & delivery (8%)
  • End of life (-4%)

  
• Maximizing system profit vs reducing coffee cost
• Small businesses that have different realities and needs

  • Small & home offices (Coffee for employees mainly)
  • Retail businesses (Coffee for guests mainly)
  • Formal businesses (Coffee for guests & employees)
  • Informal businesses (Coffee for guests & employees)
• Small businesses strive to make the right choices

  • I don't want to be treated like a small fish by my suppliers
  • I don't want to spend too much time managing my coffee system
• Industries where NEEDS work

  • Retail sector (hairdressers, opticians, real estate, agencies, health & beauty providers, travel agencies, entertainment, sales and purchasing, wholesale & trade, hospitality, transportation, automotive)
  • Formal industries (white collar, finance & insurance, accounting, consulting, lawyers)
  • Informal industries (well being programs, IT, Comms & advertising, fashion, start ups, software development, technology, charity, journalism, publishing, art, education)
• Coffee usage by industry

  • Coffee for employees mainly (small & home offices)
  • Coffee for guests mainly (retail businesses)
  • Coffee for guests & employees (formal businesses, informal businesses)
• Decision drivers for NEEDS when choosing a coffee solution

  • Quality (coffee quality & authenticity, consistent taste)
  • Brand
  • Convenience (capacity - volume of water tank, preparation ease & speed)
  • Value for money (order & delivery + after sales services, machine price / price per cup)
  • Experience (attractive design, versatility, extended yet clear range of varieties)
  • Company values (recyclable waste)
  • System (coffee taste, discovery of new tastes and recipes, discovery of tastes that suit preferences)
  • Professionalism (quality, sustainability, machine robustness)
• Small Office Home Office (SOHO)

  Offices with less than 20 employees
• Scope of Nespresso's small office offering

  • B2C offices (Vertuo)
  • B2B small offices (Zenius)
• Nespresso's small office objectives

  • Break silos with a high-performing cross departmental team
  • Build awareness & consideration
  • Drive online conversion
  • Integrated B2B & B2C approach
  • Establish always on acquisition strategy
• Nespresso's small office KPIs

  • Machine sales
  • % New Club Members
• Nespresso's small office sub-segments

  • B2B small offices (offices <20 employees with a Nespresso Professional machine acquired via B2B RTM)
  • B2C offices (offices of any size using Nespresso OL / Nespresso VL machines acquired through traditional B2C channels)
• Nespresso's wave 1 small office results (April-September '21) were below target
• Nespresso's wave 1 small office key findings & conclusions

  • CRM: good open & click rate of emailings to external DB, but low conversion eBiz, high drop-out web page visitors, webpage too content-heavy
  • Marketing: unclear value proposition, low attractivity VL offer vs aggressive B2C promos, missing strong visual ID
  • Media: social & digital interest doesn't translate into conversion, relevance visuals, low search volume
• Nespresso conducted 2x workshops, 7x small offices enthusiasts interviews, generated 35x improvement ideas, and 27x lead generation ideas for the small office segment
• Nespresso's focus areas for small office wave 2

  • Offers
  • User experience
  • Media
  • Small offices identity
• Changes made to small office wave 2 offer

  • Accessories added to B2C offer to increase value perception
  • Increased offer transparency: Small Offices wave 1 had capsule quantity requirement, Small Offices wave 2 includes capsule quantity in advertised offer price
  • Dispenser removed due to supply issues
  • Aerocino 4 for premium milk experience
• Changes made to small office wave 2 user experience

  • Removed Qualifying questions section to increase offers' visibility
  • Moved USP section to bottom of page
  • Simplified checkout journey (1 click to add-to-bag & start checkout/registration)
  • UX improvements (offer detail pane)
  • Decreased page length by removing or relocating unnecessary elements
  • Technical improvements to reflect out of stock situations in real time on page
  • Entry point to Small Offices on B2C Homepage
• Nespresso's marketing funnel stages

  • Awareness
  • Consideration
  • Conversion
  • Loyalty
  • Advocacy
• Nespresso's small office media tactics

  • PPA Link – Attract Static
  • PPA Link – Select Your Needs
  • Carousels – Convert
  • Paid Search always-on
  • Display Banners