Launching a new coffee experience in Belux

Nespresso is a global leadership brand, present in 80 countries worldwide. The company has three coffee solutions: professional capsules, the original line and the recently launched Vertuo line.

Innovation is essential in dynamic and competitive markets like coffee and coffee machines. Nespresso created the new Vertuo proposition before the outbreak of the global coronavirus pandemic to reinvent the premium coffee machine market. The innovative capsule proposition uses centrifusion technology to deepen the coffee taste experience. Eliminating the need for pressure to mix the perfect brew, Vertuo delivers more coffee experience in the cup in more varieties than any other Nespresso system.

However, as the company started the countdown to the crucial launch phase in 2020, coronavirus began to spread and the lockdowns imposed. Given the crucial role of the coffee taste in marketing activities, the brand’s plan for experiential promotional campaigns in boutiques and train stations had to be mothballed.

To understand shopper behaviour, Nespresso and GfK carried out a very valuable shopper journey analysis which covered a range of topics.

Looking at models and price points, based on GfK Market Intelligence: Sales Tracking on Hot Beverage Makers, the results showed that although the majority of coffee machine sales (65%) were at a cost of 100 euros or lower, almost one quarter (23%) of sales were made at a starting price of 200 euros.

Deep dive analysis indicated which consumer demographic groups Nespresso appeals to and identified areas of opportunity that are addressed by the Vertuo line.

In terms of the replacement journey, the insight revealed what happens when a coffee machine breaks at home. Rather than substitute it with the same or a similar model, most coffee lovers trade up to the next best machine. Vertuo fulfils both the buyer’s needs and aspiration at this crucial moment.

More recent analysis has considered the impact of rising inflation on Nespresso’s customers. The findings are informing how the brand can help its customers through the cost-of-living crisis. The player is committed to its premium positioning as a force for good, supporting recycling and sustainable farming practices to deliver the ultimate coffee experience while simultaneously responding to the pressure its consumers face.