Nespresso Report

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Target market

American has huge coffee market because there are 30 million American drink specialty coffee beverages daily (E-imports, 2016). Also Nespresso has its Aromatic flavor coffee which has Fruity and Flowery. We will create a new flavor which is “Avocado”. So our target market is focusing on the coffee-avocado lover. According to the foodnetwork data, there is a huge increase for avocado consumption. There are 1.25 billion avocados eaten in the U.S. in 2000, but 4.5 billion avocados eaten in 2015. Avocado is American’s new favorite fruit (Fredman, 2015). In addition, there are 85% avocados are imported to U.S. in 2015, compare with 40% import in 2000. The imports double in 15 years (Hass Avocado Board, 2015). More and more people eat avocado and Americans put avocado on everything, such as burger (Stone, 2015). The avocado “enthusiasts or lovers” represent over one-half of all avocado consumers (54%), so we assume 50% avocado lovers in U.S., then we can know our target market has 15 million potential consumers (Hass Avocado Board, 2013). They are willing to enjoy Avocado flavor coffee. Nespresso is going to create the avocado flavor coffee, it would attract more avocado lovers. In the similar way, the other fruit flavor coffee could get other potential consumers.

4P’s in the future market

- Product

Our product is the Avocado flavor espresso; we are the first provider of ‘Avocado espresso’ in the market. According to the data, there is a big increase of Avocado sales in every year, there is a lot of avocado products face to customers: Avocado salad, Guacamole, California Roll from Sushi, and etc. More and more people realized that the Avocado is a really health food in their life, they are willing to buy them, meanwhile, when customers buy avocado as their food, not only because its health, but also because of its tasty. With the processing technic, people really like the avocado taste, so we want to mixed the avocado and coffee taste together. The new taste of coffee will let people fancy to drink, and those people who really focus on healthy would like to drink espresso with their life.

- Price

With this new taste of coffee, the price of our product will be the same as our other products. The Nespresso is the luxury brand of coffee, the new avocado flavor coffee is also the high-level quality, and high processing technic espresso, the price would not be change.

- Place

The new taste of coffee will release at the two stores from Irvine and Beverly, considering two situations: the two flagship stores are in these two locations, and there are a lot of potential customers would like to visit these two areas, so we decide to provide our new avocado flavor espresso in these two places.

- Promotion

There are two steps to promote our new product. First step: In these two flagship stores, we use the test area to let our customers try the new avocado taste coffee, with the avocado element, more and more espresso customers will focus on the healthy from the coffee they drink. Then the second step is let our customers know that during they drink the coffee, their body also be able to get the necessary health elements, the vitamin from avocado would protect their eyes and livers, lower their cholesterol and blood lipid, this is not only a coffee, but also a healthy beverage. This is not just a coffee, this is Nespresso.

References

Brackin, J. (2017, January). Nespresso vs Keurig vs Verismo – which is best?. Brackin's Bar. From http://brackinsbar.com/nespresso-vs-keurig-vs-verismo/

Carabis, P. (2016). Verismo vs Nespresso: Which You Should Buy & Why (Hint: Price). Coffee Blog. From http://www.espressomachines.club/verismo-vs-nespresso/

E-imports. (2016). Espresso Business Solutions. From http://www.e-importz.com/coffee-statistics.php

Fredman, R. (2015, January). The rise of the avocado, America’s new favorite fruit. The Washington Post. From https://www.washingtonpost.com/news/wonk/wp/2015/01/22/the-sudden-rise-of-the-avocado-americas-new-favorite-fruit/?utm_term=.b9734985ca66

Hass Avocado Board. (2013). A look at fresh avocado consumers’ attitudes, awareness and usage. From http://www.hassavocadoboard.com/sites/all/themes/hab/pdf/research/HAB_Tracking_Study.pdf

Lacy, V. (2016) Keurig vs Nespresso vs Verismo – Which coffee maker is best. Compare Coffee Maker. From http://compare-coffee-maker-and-reviews.blogspot.com/2016/01/keurig-vs-nespresso-vs-verismo.html

Nation Coffee Association. (2016, March). Coffee market in the U.S. Statista. From https://www.statista.com/study/12878/us-coffee-market-statista-dossier/

Stone, D. (2015, May). Thanks to America, we’ve reached peak avocado. National Geographic. From http://theplate.nationalgeographic.com/2015/05/05/thanks-to-america-weve-reached-peak-avocado/

(2017, February). Coffee Production in the US. IBISWorld. 31192a. From http://0-clients.ibisworld.com.leopac.ulv.edu/reports/us/industry/default.aspx?entid=272

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