NESPRESSO
ASSIGNMENT 1 User and Market Research
NESPRESSO CUPS INVENTORY SYSTEM
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B . F. L . C . V. S T R A AT E N @ S T U D E N T. T U E . N L
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M . Z E I J D N E R @ S T U D E N T. T U E . N L
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T. W. C . D. K O N I N G @ S T U D E N T. T U E . N L
T. W. C . D E K O N I N G
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M . S . S . H . H A N S S E N @ S T U D E N T. T U E . N L
M.S.S.H. HANSSEN
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G . C H E N @ S T U D E N T. T U E . N L
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B . F. L . C . VA N S T R A AT E N M. ZEIJDNER
G. CHEN
C O A C H : J . O. F U N N E K O T T E R
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Nespresso, what else?
Appendix.
Concept Introduction.
NESPRESSO
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6
Concept & Company.
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Innovation.
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Market Segment.
Target Customer.
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References.
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CONCEPT INTRODUCTION
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STORAGE & INVENTORY SYSTEM
Nespresso is very famous because of their coffee capsules. These capsules make sure the coffee making is simple for the user, because these capsules are made so that, with one button, the machine can make the coffee the user wants. But when people use these capsules, they don’t know when a particular flavor of capsules is almost out of stock. Therefore we 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.
The workings of the inventory system The storage system is able to count how many capsules there are available for every flavor. The storage can also be connected to a phone, tablet or computer. So when the storage system detects that there are no more capsules available for a particular flavor, an announcement pops up on the user’s devices.
3D image of our storage system, designed in Sketchup. 5
When the user clicks on the pop up, he or she will be able to buy a new set of Nespresso capsules for the flavor that needs to be replaced, with only clicking on one button. This will save some time, because the user does not have to go online or go to the Nespresso shop in the city and search for the particular flavor and then go through the payment procedure.
“ 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 H O W MANY CAPSULES THERE 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 ,
This storage is also made with a luxurious look, so when it is set next to a Nespresso coffee machine, it fits in well. The storage is made out of multiple fluent lines, where many Nespresso capsules with different flavors can be perfectly set. When the user chooses a particular flavor capsule to drink, he or she can take the capsule from the bottom, because the capsules slide down when put into the storage from the top. So the user can easily take the coffee capsule out that is needed.
TA B L E T O R CO M P U T E R , TO E A S I LY O R D E R N E W CAPSULES WHEN THE
Design Erika Musterman
ALL ARE GONE”
NESPRESSO
S TO R A G E S Y S T E M D E T E C T S
CONCEPT AND COMPANY
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BRAND MATCHING
Main Purpose Improve Customer Service
Nespresso is the branch brand of Nestlé. Their business model is trying to build their own system for coffee. Machines, capsules and service are the three essential elements in this system. Our team accepts their business model and would like to help complete the whole system.
So our emphasize is in service part. We try to give users better experience in storing capsules. Unlike traditional “loose” ground coffee, Nespresso capsules are packaged in cubical aluminum foil. And one capsule can only make one cup of coffee, which means users normally have to buy quite a lot capsules at one time. In this case, how to store them orderly is a problem. Moreover, we know Nespresso is quite 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.
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According to what we 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, There is a minimum order quantity of 50 capsules, and standard shipping for 50 capsules is US$6.95, raising the total cost per capsule from US$0.7 to US$0.84. However, shipping is free for orders of 200 capsules or more. So the more you order the cheaper the single product.[7]
Final goal Complete the brand image
In this situation we would add an inventory function for our storing board. It can calculate how many capsules you left and make new inventory based on your preference. And the whole system can gather inventories from this region and make group inventory for all. It can benefit both customers and Nespresso company. For users, they don’t have to spend quite some time to order new ones. Automatic inventories can recognize their preference. And good for customer is good for the company itself. With easier and faster way of ordering capsules, Nespresso company can get purchase orders more quickly, which means more money. In addition to this, with more meticulous service for users, the Nespresso system can be completed in details. A better brand image will be built.
NESPRESSO
Inventory system Safe on Shipping costs
ABOUT THE PROJECT
INNOVATION AND NEWNESS
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Trend Forecasting: We’re on it. In the technology industry everything is shifting, products are focused on making our lives much more easy. Brands like Apple and Amazon are creating smart home systems. This systems can keep up small conversations, and also control your house. With the design we are creating, we try to anticipate to this trend. A smart and appealable coffee storage system. This product must be able to connect to such a smart home system. The design focusses on the target group of Nespresso, because it will be a luxury item. There are already products for the storage of capsules. However there aren’t any interactive systems which keep track of the capsules, nor keeping track of the stock. Furthermore most of the storage products are not visible attractive. Keeping track of the stock can be used to purchase capsules automatically, this is perfect for customers and profitable for Nespresso.
So the product is not only innovative in a physical way, but it is also in an economical way. Because the system automatically buys capsules, the user bought in fact a subscription to Nespresso coffee. In an ideal situation everyone has this storage system, as result of that Nespresso doesn’t need supply shops as Albert Heijn, bol.com and Bijenkorf. In that way they can rise their profits, without raising their product value.
“A small and appealable cofffee storage system, which must be able to connect to such a smart home system.”
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The design is innovative because most coffee machines or accessories are not connected to a network, and ours is connected. The existing products for coffee which are connected to your phone, are for brewing the coffee. Yes, it is useful for coffee products to connect to the internet. There are a lot of possibilities, however we chose for one feature. Loads of features creates a fuss for the users, and even the supplier. In this way our design will be easy to use. Furthermore the product takes care of the empty coffee storage. The capsules will be ordered directly from the Nespresso store.
NESPRESSO
Connected Inventory System
MARKET SEGMENT
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. After the explanations you’ll find the conclusion containing the final statement. Age. Nespresso has a target group with a higher income. Also, with casting George Clooney they’re targeting a specific audience. Because of that and the numbers in source [2] we assume the age lies around 45 to 65.
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Income. Above average. Nespresso is an expensive brand, so you’ll need some money to be able to afford it. Gender. According to source [1] the average woman still earns less than the average men, especially within the age group we selected. This indicates that men are wealthier and therefor more likely to buy this product. Education. Most likely a university degree, because people with that type of degree make the most money. [2] Proffesion. The top three categories with highest income for people with a university degree are economics (economics, commercial, management and administration), law (law, governmental, public order and safety) and healthcare (healthcare, social services and care), in order from highest to lowest. [2]
Psychographics. Nespresso is a luxury brand, and since we’re making a Nespresso product their believes will apply to us. Only people how can afford Nespresso will buy the product, 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. Something Nespresso also tries to carry out is connectivity. People will choose Nespresso because they want to be part of the group that drinks it and talks about it. This will give people social status because they’re part of an exclusive group (1). Something that people always think about with Nespresso is also the unique look. All the machines, cups and capsules look very nice. This indicates that people who buy Nespresso like good looking things and are trendy (1). People who choose Nespresso also choose for a high-quality brand. This gives us that they care about quality of the products they use.
INTERESTED IN OUR
NESPRESSO
“PEOPLE WHO ARE PRODUCT ARE PEOPLE WHO ARE INTERESTED I N N E S P R E S S O. THESE PEOPLE ARE G E N E R A L LY B E T W E E N T H E 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 UNIVERSITY AND A JOB I N T H E E CO N O M I C S , S E C TO R ” Nespresso is also actively trying to fight climate change and is a partly fairtrade company. From this we can conclude that Nespresso drinkers are people who are aware of the world and their environment, and would like to see change. (2) [4]
Behaviouristic. Reason/occasion for purchase? Luxury or need to have everything done fast. People might like the easiness of the product, or feel like they need it because they can never find the time to buy more capsules, or this saves them time. Number of times they’ll purchase? One, maybe two times, if there is a need to store more capsules. When the counting mechanism is broken customers might buy a new one. Where customer purchases and/or uses product/ service? Most likely people will buy the product online or in a store that sells Nespresso machines, like a Nespresso boutique or a coffee store.
Conclusion. People who are interested in our product are people who are interested in Nespresso. These people are generally between the age of 45 and 65. They have an above average income, usually have a university and a job in the economics, law or healthcare sector. It’s also more likely that they’re men. People who buy this product will look at the Nespresso brand. This means that people who buy this product will be looking for a sense of status, both social and wealth. Nespresso also attracts people who value quality. Also they are aware of the world and would like to see some change in the environment and how we treat people. This is a product that shows luxury and makes life easier for the user, which are reasons to buy it. The product won’t be bought often because it’ll last long and there is no need for a lot of it. Most likely people will buy it online or in specialized stores.
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L AW O R H E A LT H C A R E
TARGET CUSTOMER
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
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As our concept includes the use of a smart mobile phone to quickly reorder the Nespresso capsules, our main target customer has to have a smartphone and the know-how to operate such a device. Marry Rhodes, the high-teacher was never really a fan of technology until her boys reached the age of 16 and got introduced to phones. To keep up with her boys and the high-school children she teaches, Marry decided to buy an iPhone herself. Now that all of her friends also make use of a smartphone, 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 in order to stay number one. His first smartphone experience wasn’t that great, but after asking his children for help, he now uses his phone regularly to make his life easier and converse with his grandchildren. Customer #1 Tech Savvy Mom and Teacher Customer #2 CFO at Fortune 500 Company Customer #3 Retired Entrepeneur
Marry Rhodes, high-school teacher and tech savvy mom of two teenager boys.
Motivated by: Spending time with her children. Enjoying talking about herself when hanging out with her friends.
Demographics: Age: 48 years Income: $70k Profession: High-school teacher Family: Married, 2 teenager boys Hobbies: Hanging out with colleges and friends
Dick Schmidt, retired entrepreneur with still a very active and sporty lifestyle.
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: 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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NESPRESSO
Philip Brenton, CFO of a Fortune 500 company and father of a recent born daughter.
NESPRESSO
REFERENCES
IMAGES
[1]: Centraal Bureau voor de Statestiek, (2016), Welvaart in Nederland,
[1]: Cover
https://www.pexels.com/photo/coffee-cup-drink-tea-12597/
https://www.cbs.nl/-/media/_pdf/2016/26/2016welvaartinnederland.pdf
[2]: De Mooij, M. Geerdinck, M. Oostrom, L., van Weert, C., (2012), Studeren loont, https://webcache googleusercontent.com/ search?q=cache:PEWR2EmzMnAJ:https://www.cbs.nl/-/ media/imported/documents/2012/26/2012-k2-v4-p55-art.
[3]: MaGee, S. (no date), How to Identify a Target Market and Prepare a Customer Profile, http://edwardlowe.org/how-to-identify-a-target-
[4]: Nespresso, (no date), Is Nespresso coffee Fairtrade certified?
[2]: Appendix
http://www.audrena.com/nespresso-and-other-ways-to-drinkcoffee-at-home/
[3]: Storage&Inventory System
https://images-na.ssl-images-amazon.com/images/ I/91y9oPVNv2L._SL1500_.jpg
4]: Brand Matching
http://www.debenhams.com/electricals/coffee-machines/ nespresso https://www.nextbigfuture.com/2015/02/for-big-impactquantum-computers-would.html
https://www.nespresso.com/pro/at/zen/pages/nachhaltigkeit
https://fd.nl/ondernemen/1210098/nespresso-capsules-voorhet-eerst-ook-via-retailers
[5]: Néstle Nespresso S.A., (no date), Coffee capsules
[5]: Innovation and Newness
https://www.nespresso.com/nl/en/koffie-capsules-grands-crus?
[6]: Néstle Nespresso SA, (no date), Integrated actions on climate change, https://www.nestle-nespresso.com/nespresso-sustainability/ the-positive-cup/climate
[7]: Néstle Nespresso S.A., (no date), Shipping Costs,
https://static.pexels.com/photos/225232/pexels-photo-225232. jpeg http://www.retail-square.com/shops/nespresso https://static.pexels.com/photos/159304/network-cable-
[6]: Market Segment
https://www.pexels.com/photo/portrait-of-young-woman-
https://www.nespresso.com/us/en/order/capsules/original/ intenso-on-ice-coffee-capsule
[7]: Customer Profile
[8]: Néstle Nespresso SA, (no date), The Nespresso Brand Essence,
https://gb-forex.com/
https://www.nestle-nespresso.com/brand/brand-essence
https://www.shutterstock.com/video/clip-7556893-stockfootage-portrait-of-beautiful-year-old-woman.html https://www.stjh.org.uk/file/older-manjpg