PORTA
Inventory- Storage Board For Nespresso Capsules Background: This is a group project I did in Introduction to Business Design. We designed an inventory-storage board for Nespresso company. The ultimate goal for designing this product is to sell it. So I deepened this business project and present here in my portfolio.
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What I have done: Conception Branding Requested Patents
Business Model Value proposition Financing
Team Project Dec. 2017
CONCEPT
STORAGE& INVENTORY SYSTEM
Nespresso is famous for the coffee capsules. These capsules make sure the coffee making simple. With one button of the machine, users can get the coffee they want. But when people use these capsules, they don’t know when a particular flavor of capsules is almost out of stock. Therefore I introduce an advanced storage system for these capsules, so the user has a good overall view of all the capsules which are available and the user does not have to worry about buying new capsules when one of the flavors need to be replaced, because the storage can take care of it and make inventory automantically. And the whole system can gather inventories from this region and make group inventory for all. It can benefit both customers and Nespresso company.
“ T H E S TO R A G E S Y S T E M I S A B L E TO CO U N T HOW MANY CAPSULES T H E R E A R E AVA I L A B L E F O R E V E R Y F L AV O R . I T C A N B E CO N N E C T E D TO A P H O N E , TA B L E T O R CO M P U T E R , TO E A S I LY ORDER NEW CAPSULES W H E N T H E S TO R A G E SYSTEM DETEC TS ALL ARE GONE”
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CONCEPT AND COMPANY
BRAND MATCHING
Main Purpose Improve Customer Service Nespresso is the branch brand of NestlĂŠ. Their business model is trying to build their own system for coffee. Machines, capsules and service are the three essential elements in this system. I accept their business model and would like to help complete the whole system.
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This project will emphasize on service part. I try to give users better experience in storing capsules. Normally users have to buy quite a lot capsules at one time. In this case, how to store them orderly is a problem. Moreover, Nespresso is a luxurious brand and its customers are those who attach great importance to quality, style and conscious. So the storage system should not only meet requirement of convenient, but also exquisite.
Flawed Part Saving on Shipping Costs According to what I learnt from Nespresso, their shipping cost is quite high. For household customers, if there’s no physical shops around them, they can only order new capsules from Nestlé. Take American for example, standard shipping for 50 capsules is US$6.95, raising the total cost per capsule around US$0.7. However, shipping is free for orders of 200 capsules or more. So the more you order the cheaper the single product. That’s why I would introduce group purchase for Nespresso.
Final Goal Complete the Brand Image Automatic inventories can recognize users’preference so they don’t have to spend quite some time to order new capsules. And the group purchase system can lower the costs of capsules. All these can benefit both customers and Nespresso company. With easier and faster way of ordering capsules, Nespresso can get purchasing orders more quickly, which means more money. Moreover, with more meticulous service, the Nespresso system can be completed in details. A better brand image will be built.
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MARKET SEGMENT
The market can be divided into a few categories which make up the total segment. Below each categorie is listed and explained. A large part of the segment is based on the market of Nespresso, since the product will be brought out under their name. Age. Nespresso’s target group age lies around 45 to 65. And that would also be our target group. Income. Above average, Nespresso is an expensive brand, so you’ll need some money to be able to afford it.
Behaviouristic.
Gender.
Luxury or need to have everything done fast because they can barely find the time to buy more capsules, or this saves them time.
The average woman still earns less than men, especially within the age group we selected. Therefor more likely to buy this product. Profession. The top three categories with highest income are economics, law and healthcare.
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Psychographics. Nespresso is a luxury brand, and the concept will apply to this product. Only people who can afford Nespresso will buy it, and they’ll buy it because a lot of people know the brand and how expensive it is. If people then see them drink Nespresso, they know they can afford it which will give them status.
“PEOPLE WHO ARE INTERESTED IN OUR PRODUCT ARE PEOPLE WHO ARE INTERESTED I N N E S P R E S S O. THESE PEOPLE A R E G E N E R A L LY BET WEEN THE A G E O F 45 A N D 65. T H E Y H AV E A N A B O V E AV E R A G E TO I N CO M E , U S UA L LY H AV E A U N I V E R S I T Y AND A JOB IN THE E TCO N O M I C S , L AW O R H E A LT H C A R E S E C TO R ”
USER SEGMENT
CUSTOMER PROFILE To further narrow the target market down, three hypothetical target customers are listed on this page. They represented a customer of a different age and demographic group, but all fall within our target market. As our concept includes the use of a smart mobile phone to quickly reorder the Nespresso capsules, the main target customer has to have a smartphone and the know-how to operate such a device. Marry Rhodes, the teacher. To keep up with her boys and the highschool children she teaches, Marry decided to buy an iPhone herself. Now she has to admit that she can’t live without a phone anymore. Just like Philip Brenton, Dick Schmidt has always been on the front row of adapting new technology. As a successful entrepreneur, he constantly had to adapt to stay number one.
Marry Rhodes, high-school teacher and tech savvy mom of two teenager boys.
Philip Brenton, CFO of a Fortune 500 company and father of a recent born daughter.
Dick Schmidt, retired entrepreneur with still a very active and sporty lifestyle.
Motivated by: Spending time with her children. Enjoying talking about herself when hanging out with her friends.
Motivated by: Time-saving products and services that give him more time to focus on his family and newborn daughter.
Motivated by: Spending time with his grandchildren and helping others reach succes in their lifes.
Demographics: Age: 48 years Income: $70k Profession: Highschool teacher Family: Married, 2 boys Hobbies: Hanging out with colleges and friends
Demographics: Age: 44 years Income: $120k Profession: CFO Family: Married, 1 daughter Hobbies: Spendig time with his family and friends
Demographics: Age: 72 years Income: $20k Profession: Retired Family: Married with 4 children Hobbies: Walking, spending time with grandchildren
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PATENTS REQUESTED For this product, there are 3 IPRs need to be requested. This includes a technology patent, with a new type of system that’ll be unique for this product, a trademark and a registered design for the aesthetics of the product.
Technology Patent This inventory system consists of a rack in which 10 capsules can be stored per column, a technical part that knows how many capsules are stored per column and a part that communicates with an app on your smartphone about the capsules. 37
As soon as the counting system knows that one or more of the columns are out of capsules it will send a signal to the companion app on the users smartphone or tablet. The app will show a out of capsules and present the user with two options:
Quickly reorder the same flavour of coffee capsules, or leads the user to a page in the app that shows recommendations based on previous purchases. The app will use previously gathered data to make the buying process go smoother and faster than before.
Trademarks This product need a trademark on the name and logo will be using. The product will be filled under the name and looks like Nespresso but will need a separate name and logo to distinguish it from other Nespresso products. So we decided to name it PORTA .Here on the left is the logo. Registered Design The storage system is designed to be able to stand upright on a table or hang on a wall. This gives the customer the choice where they are going to place the storage system.
The design consists of a couple of racks in which a full sleeve of 10 cups can be stored. You can insert the capsules via the extra space at the top of the rack and retrieve them via the bottom.
The rack will be made of metal rods welded into frame and shaped in a sine function for the aesthetic look.
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VISUALIZATION
BUSINESS MODEL CANVAS
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VALUE PROPOSITION CANVAS VALUE PROPOSITION
CUSTOMER SEGMENT
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PERSONAL PLANNING Marketing Manager
- Identify the target market. - Test the product on the market.
Financing Manager
Business Consultant - Business advisers. - Good at making the ‘big-boys’ to the driven start-up companies.
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- Manage the initial start-up funds. - set a budget and realistic financial goals.
Administrative Worker - Tackle routine office work
BUSINESS MILESTONES
Making a working prototype that can be presented to Nespresso within 1 month.
Getting a yes from Nespresso that they will invest in our business within 5 to 8 month.
Produce a market-ready prototype based on the feedback of the user test within 10 to 12 month.
Sell the product to the first customer within 4 month.
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