Nespresso and its information system - E-business

The company was founded by Nespresso Nestle Group in 1986 with the aim of offering its customers quality coffee products. Since then, the company has continued to develop a selective distribution system and manage its brand based on luxury. The company catered to the popular concept of drinking coffee as a means of relaxing.

Introduced in 1987, the Nespresso system achieved massive popularity with its slogan “What else" publicized by George Clooney; the Nespresso machine is today emblematic of the fine art of coffee drinking and enabled the creation of a selective club where drinking exceptional coffee is a mantra.

Historical background
1970: Creation of the Nespresso machine and its capsule.This is a revolutionary process that keeps freshly brewed coffee (and its flavor) in a single capsule.
1986: The company Nespresso SA is created. It is 100% Nestlé owned. The Swiss company Turmix deals with the production of machines currently available in Switzerland and Italy.
1991: Equipment manufacturer Krups associated with the production of machinery for the international market. Nespresso launches in French and American markets.
1996: The company celebrates its tenth anniversary.The Nespresso Club has 180,000 members. Great Britain, Malaysia, Singapore and Taiwan are part of this exceptional niche.
1998: Following a number of partnerships that enable the creation of several models of machines, a Nespresso website is born. This enables the further growth of the Nespresso Club.
2002: Orders placed on the internet accounts for 30% of the turnover of the company.The sales caps explodes and leads to the emergence of new production processes.
2003: With the creation of the label Nespresso AAA, the company is committed to providing consumers with high quality coffee.
2004: Nespresso is the official partner of the 32nd America's Cup.
2005: Nespresso is the leading European coffee company with its new Nespresso Essenza.
2006: Launch of an advertising campaign featuring movie star George Clooney which garnered massive popularity worldwide. A new machine "The Cube" allows Nespresso to seduce lovers of design and luxury.
2007: Nespresso boutique opens in Paris (Champs Elysees); the area of the boutique is 1500m2. This opening is a pretext for extending the ambitions of the brand; the company is now turning to the Asian market.

Coffee production is entirely managed by Nespresso.The green coffee beans are processed directly by the production unit located in Orbe, Switzerland. Nespresso has complete control over its coffee production from the purchase of coffee pods (an academy was established for breeders of coffee for Nespresso production) to its sale (the sales of Nespresso is directly managed by the company) .

Nespresso is committed to delivering quality coffee.For this, it relies on what it calls a trilogy:
•Grand Cru coffees
•Machines at the forefront of design and technology
•A range of services tailored to consumers
The company relies on a selection of specific clients and has established the Nespresso Club.This club is accessible via Internet with a membership number issued when one buys a Nespresso machine. This online service also enables the control of capsules.
The mode of distribution is unique to Nespresso.The capsules are only available online or in exclusive shops.

Tags: Internet Marketing Strategy, Nespresso, CRM

[...] Nespresso saw that there was an opportunity to develop this type of communication and that this would allow it to control its marketing mix. Indeed, the marketing strategy of Nespresso is to distribute its products in a particular way and to target a certain clientele: rather young, dynamic, belonging to a fairly high income group. Nespresso coffee and accessories are available in some shops and also on the Internet as part of an elitist distribution. Internet is the main component of the marketing strategy that allows Nespresso to have a significant customer database and know the characteristics of its customers (they love the products, machinery and accessories they have etc) , something that would be impossible with other means of distribution. [...]

[...] The Nespresso Club, which includes all consumers, buyers and users, allows the company to identify its customers based on their coffee, favorite cafes etc. The Nespresso club allows the user to participate in the marketing choices of Nespresso. Thus, it is the Club members who voted between two commercials, which aired on television. Today, there are over 450,000 members. e-mailing With the Nespresso Club, the company was able to create a database of customers; this is vital since this enables the company to procure and access the customers’ internet addresses. [...]

[...] Implementation of the Oracle Data Integrator by Dynax to develop and consolidate a database system containing information common to all countries which market Nespresso 2.Provide a volume of 100GB of data to add value to the customers, orders and inventories 3.Develop solutions to cross-marketing and CRM through Oracle Data Integrator 4.Centralize data 5.Track and store the changing preferences and attitudes of the customers. 6.Reduce time to market products 7.Adjust the controls to daily updates of inventory and costs 8.Having a global view of the business of the company Evidence: "Oracle Data Integrator allows us to gradually transfer all our activity reports in the database.We can anticipate problems with a reduced reaction time despite the strong growth of our business and the volume of data processed. [...]