Thursday, 3rd June 2010
Quality + function service economics = commercial success and guaranteed margins !
Nespresso has found itself in the spotlight of recent news because of its success (1.34 billion € for 4.8 billion capsules and 8 billion clients in 2009) spiking interest, and in consequence, created direct competitors, then did not exist up till then.
The heavy contenders of the distribution trade and of coffee are attacking the leader with the inevitable rising of prices, that has become the only reference these past years. What does Nexpresso do? No need to panic! Firstly, above all never make concessions on quality, even encourage it if possible, then keep control of distribution to keep control of the margins, then find a new service to offer a client to strengthen their loyalty. Loyal visitor of this website do you not see anything coming?
What if the link between the theme and this website? The Nespresso model is based on the sale of expensive consumables, but of extremely good quality. The machines may be sold but, in the company market, these machines are deposited at the clients, the capsules are delivered in less than 48 hours, and the service includes: a dedicated customer service, an annual technical inspection, a local water analysis with the provided filters, the assistance of a technician in less than 48 hours, a replacement machine when extended repairs are needed, providing one or several machine for events such as seminars. Is this not a case of functional service economics? Not on one major aspect, I grant you that: reducing energy and raw material consumption, where, “they can do better…!” But for the rest 10/10. Moral of this case: quality + functional service economics = success. Imagine, if, in addition, there was an economy of resources than transformed into margins…
Homo sustainabilisis and profitabilitisis