Nespresso Case

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focus on creating shared value with the producers at the beginning of the production chain; this will enable them to offer better and higher quality products.

Additionally, more importance and attention can be given to the Nespresso community by doing meetings and talks in different parts of the world, giving coffee sessions to the frequent consumers, creating a VIP club and listening to the personal suggestions of the buyers.

Finally, the stores can be set as not only a place to buy the capsules but a place where people could go and have a coffee, try the different and new flavors and feel as if they were buying luxurious and premium products. The buying experience should be maintained but new services could be added so that it becomes more personal and exiting for the consumers. The fact that not only the product is sold allows the brand to sell and integrated package so this will help expand the segment as people are willing to pay more for the additional benefits Nespresso is able to offer. The fact that more personal approaches are involved, gives the brand the opportunity to know the consumers better, it starts working with them and this allows them to understand their problems and then work on the solutions. This proves that Nespresso does not have to modify its business model, but it as to transform it focusing even more on consumers in order to stay as a luxurious brand and will be able to retain its consumers.

About launching a Nespresso-lite for sale in supermarkets, there are pros and cons.

Pros:

- It would increase the panel of potential consumers, touching a new type of people

- It would add more visibility to the brand and would make it easier to buy since it would diversify the selling places

Cons:

- It would be a rupture with Nespresso image and branding strategy

- It would damage the purpose of Nespresso services to the consumers which make its added value

- It would damage the overall brand by making it very comparable with the other brands