Sondra T. Seecharan on LinkedIn: Nestlé’s Nespresso opening ‘immersive’ coffee boutiques across US (2024)

The power of physical in a Digital World: The Nespresso Boutique Experience In a world rapidly embracing digital transformation, Nestlé's Nespresso is pioneering an innovative approach with the launch of immersive coffee boutiques across the U.S. This bold move underscores an essential truth: the irreplaceable value of physical experiences in our increasingly digital lives.Engagement beyond the screen: Each Nestlé Nespresso SA boutique is crafted to be more than just a store; it's a journey into the heart of coffee culture. These spaces are designed specifically with Gen Z and coffee enthusiasts in mind, offering interactive experiences that educate, engage, and inspire. From "bean to cup" masterclasses to hands-on experiences with Nespresso machines, visitors gain a deep, sensory understanding of what goes into their favorite brews.Sustainability at the Forefront: Nestlé has not only innovated in customer experience but also emphasized sustainability, a critical factor for today’s informed consumers. Each boutique features a recycling center, spotlighting Nespresso’s commitment to environmental stewardship, which resonates deeply with visitors.A New Era of Retail: These boutiques represent a strategic blend of direct-to-consumer engagement and experiential retail, setting Nespresso apart in a competitive market. This initiative is more than an expansion; it's a redefinition of what it means to connect with consumers and offer them meaningful, memorable interactions.Why This Matters: As digital convenience continues to dominate, the hunger for genuine, tactile experiences is more pronounced than ever. Nespresso’s new boutiques cater to this desire, proving that physical retail spaces can thrive by offering unique, immersive experiences that go beyond the transactional.In embracing both the digital and physical realms, Nespresso is crafting a future where technology and tradition blend seamlessly, enhancing our appreciation of the products we love and the ways we experience them.#nespresso #retailInnovation #customerexperience #sustainability #CoffeeCulture #DigitalTransformation #genZ #storeexperience #POS #US

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I want to use Nespresso as an example of a business with an incredible moat. It's a world-class business and we should all be so lucky to build something like it.I'll give you the story, and at the end my big take-aways.Nespresso is one of the only DTC brands that successfully “removed the middle man”.More than $4+ billion a year in revenue.In 1975, inventor Eric Favre pitched the concept to Nestle. The system was then patented in 1976.For the next 8-10 years they build the product and try and sell single-serve coffee into offices and restaurants. It was a failure.In 1988, they had a massive pivot that turned them into the giant business you know today.Thank the man named Jean-Paul Gaillard for this visionary move.He was well ahead of the times. He even left Nespresso and later launched a biodegradable capsule business in 2008!They ditched restaurants and offices and instead focused on affluent households to establish their toe-hold.Nespresso needed to figure out what business they were in.And what they weren’t.Nespresso decided it wasn’t in the coffee machine business.It was in the coffee pod business.What’s even crazier, is Nespresso started off selling direct to consumer.Catalog and phone sales was the name of the game back then.I also believe Nespresso is Nestle’s only real (”owned” are its main channels) DTC brand.They sold their machines through classic one-time sale focused retail partners. Kitchen, home appliance, coffee specialty and department stores.The coffee however, that’s sold through Nespresso-owned channels.Owning the entire customer experience is the real magic in Nespresso’s business.They crafted very high-end retail stores in major markets.They have the Nespresso Club, aka - membership.And while they started with catalog/phone sales, they are obviously now DTC as we know it.They launched their eCommerce site in 1998.So yah, these things actually do take time to really scale!This is a master class in how to think about distribution channels.You should develop a strategy that leverages channels for what they are best suited for.Now, you might be thinking…but Matt, it’s easy to do this when you have so many patents!And yes, they had a lot of patents. 1,700+.But those started expiring in 2012.Which oddly enough, is 2 years after Nespresso started leaning into owned stores, membership, and a higher end customer experience.They built a moat by going luxury.When you visit a high-end hotel, they don’t have a Keurig machine in the room. They have Nespresso.Ok, enough story.Here are my take-aways from how Nespresso built their business:1 - Start with affluent customers (taste makers).2 - Utilize distribution channels for what they are good at and nothing more.3 - IP(Patents) can be important, but you can’t rest on them.4 - Customer experience is a real competitive advantage.5 - If you want to build something big, you need decades long patience.

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In the dynamic landscape of #retail, Chaayos is setting a benchmark by redefining the customer experience. Their recent initiative to premiumise offerings at select outlets is not just about upscale ambiance or an expanded menu; it’s a strategic move towards enhancing the overall brand value.In this context, Ankur Bisen, head of retail at Technopak Advisors, encapsulates this shift perfectly: “These efforts to upgrade the customer experience make a good case for #Chaayos to charge a premium.”This insightful article from #Livemint delves deeper into how Chaayos is navigating the challenges and opportunities of this transition. A must-read for anyone interested in the dynamics of retail innovation.READ THE COMPLETE ARTICLE AT:https://lnkd.in/gDkAKFpP#RetailInnovation #CustomerExperience #Chaayos #PremiumRetail #BrandValue #RetailStrategy #TechnopakAdvisors #BusinessInsights #RetailTrends

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Happy New Year! If you're trying to get ahead of the key 2024 trends across #retail, #grocery, #restaurant, #commericalrealestate, #office, and #retailmedianetworks, Ethan Chernofsky and I have you covered. And if you're interested in seeing more of the data behind these insights, check out our full report in the link below. #placer #locationintelligence #locationanalytics #retailtrends #webinar

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The Blendly model differs from the traditional commercial coffee roaster model in several ways, offering a new and secure standard for the commercial coffee industry. Blendly provides a unique approach that enhances food security, transparency, and omnichannel distribution. Tools like Data Standardization, Customization and Collaboration: Blendly empowers coffee users to customise their blends by leveraging the Brand Search facility on their website. Users can mix and match green beans to create unique flavour profiles, replicating popular global coffee brands ……………

The Starbucks Phenomenon: A Cup of Success That Went GlobalIn a world brimming with coffeehouses, Starbucks stands as a monolithic testament to the power of branding and marketing. A cup of Starbucks coffee isn't just about caffeine; it's about an experience that has captivated hearts and palates worldwide. This short piece delves into the reasons behind Starbucks' unparalleled success, the marketing tactics that fueled its rise, and why it enjoys a near-monopoly on the luxury coffee dining experience.A Dash of History:From its humble beginnings in Seattle in 1971, Starbucks has come a long way. But what really sets it apart? It's not just the coffee; it's the way Starbucks has woven itself into the very fabric of our lives. It's the scent of roasted beans, the inviting ambiance, and the familiarity of the mermaid logo. Starbucks is no longer just a place to grab coffee; it's a destination.The Starbucks Experience:Starbucks isn't selling just coffee; it's selling an experience. Walk into a Starbucks, and you'll find a curated playlist, comfortable seating, and a menu that goes beyond your basic brew. This blend of atmosphere and innovation ensures that Starbucks isn't just a coffee shop; it's a lifestyle.Global Domination:Starbucks' journey to global prominence was fueled by its strategy to be everywhere. From cornering prime real estate locations to adapting its menu to cater to local tastes, Starbucks made itself ubiquitous. In essence, it became an everyday luxury that millions couldn't resist.Marketing Magic:The Starbucks mermaid is not just a logo; it's a symbol. Starbucks has mastered the art of storytelling, giving customers a reason to feel connected. From the personalized barista-crafted drinks to the annual arrival of the beloved Pumpkin Spice Latte, Starbucks taps into our emotions and creates anticipation.The Monopoly Effect:Luxury coffee dining isn't just about the beverage; it's about an escape from the mundane. Starbucks capitalizes on this by creating a space where people can work, socialize, or simply enjoy their solitude. This unique combination of quality coffee and a welcoming ambiance has made Starbucks synonymous with the concept of premium coffee worldwide.In conclusion, Starbucks' recipe for success is a carefully crafted blend of marketing, branding, and a focus on customer experience. It's not just a coffee shop; it's a global phenomenon. Starbucks isn't just about coffee; it's about connection and community, and that's a marketing tactic that resonates with people around the world.This article is a short exploration of the Starbucks phenomenon, but it's just the tip of the iceberg. The Starbucks story is a case study in turning a humble coffee shop into a global empire. It's a testament to the power of branding, consistency, and creating a product that people don't just want, but need.#businesscasestudy #StarbucksSuccessStory #CoffeeCultureIcon ☕🌟

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Will a retail experience drive connections and growth for Nespresso, which is largely a direct-to-consumer brand? Nespresso is a key part of Nestle’s large coffee business that includes Blue Bottle, Seattle's Best Coffee, Nescafe and Starbucks packaged coffee. Nespresso has had impressive double-digit growth in North America the past 5 quarters and has been a leader in applying new business models, one of my favorite innovation topics!The new Nespresso boutiques are designed to connect customers with the brand. Each boutique will have four main components: 1. A taste and discovery area where consumers can sample different coffees and play with the Nespresso machines2. A coffee theater that will offer master classes with tastings and experiences and an opportunity to witness how the bean progresses from crop to cup3. A recycling center highlighting the sustainable efforts of the brand4. A coffee bar with lounge spaceI look forward to tracking how this plays out with the Gen Z targets -- will they want to experience coffee pods in this way and become more educated about coffee in general? I look forward to visiting a boutique soon. Maybe they can help me figure out how to operate the Nespresso machine in my next hotel room!#Markknows #DTC #innovation #education #entrepreneurship #startups #coffee #marketing #sales #technology #VC #CVC #food #beverages #beveragehttps://lnkd.in/eUk_kj-M

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Project Highlight!In the dynamic world of retail, harnessing sensory experiences can elevate products from mere commodities to memorable encounters. Take, for instance, the Chai Latte Candle—a fusion of scent and ambiance crafted by Blue Sparrow Coffee based on their secret chai recipe from their menu that has been replicated into a candle. This was one of my favorite (and first!) retail projects to work one.This product not only encapsulates the essence of their signature beverage but also offers a tangible way for customers to bring the coffee shop experience into their homes. By leveraging sensory elements like scent, businesses can create unique and compelling retail offerings that resonate with customers on a deeper level. Whether it's through strategic partnerships, thoughtful product development, or sustainability initiatives, integrating sensory experiences into retail can foster stronger connections with consumers and drive brand loyalty. As retailers, it's essential to recognize the power of sensory engagement and explore ways to leverage it effectively in our own product offerings. #RetailInnovation #SensoryMarketing #BrandEngagement #ProductDevelopment #CustomerExperience

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Distinct, yet similar! Visualizing two related products for different need states.☕ The situation: The energy space was booming with Starbucks’ Doubleshot and Tripleshot as key players. But despite successful packs, the role of each drink was confusing – Doubleshot felt like regular coffee, Tripleshot felt too severe. New designs sought to build a cohesive family where each drink’s role was clear.🔎 The integrated approach:- #Qual delved into how consumers navigate this expansive category, unpicking the job done by different brands and products. Our design expertise and categorical knowledge allowed us to dig deep into how well each design showed the drink’s role in different #occasions, #moods, and #needstates.- Following design optimizations, #quantitative testing refined each design. We aimed to ensure Doubleshot felt tasty and Tripleshot felt more approachable, each with their own distinct purpose.- Using our expertise, we delivered recommendations to build range cohesion while also highlighting each drink’s distinct job, to drive impact at shelf.💫 The result: PepsiCo and Starbucks are shaking up RTD coffee with revamped favorites. Each design aims to appeal to the same consumer, but to be drank for specific needs and occasions.Get in touch to hear more about our bespoke, agile approach to building brand presence!

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Luxury retailers are introducing a host of food concepts to deepen engagement with customers as sales slow. See article from Laura Barr, Brandon Isner, and our CBRE Retail Team. Summary: Using food to lure customers is not new—it’s a strategy used by a wide spectrum of retailers across multiple industries. Capital One has more than 50 cafes in bank branches nationwide open to the public, with extra perks and discounts for clients. IKEA is as famous for its Swedish meatballs as for its furniture. Costco’s food court lures members to their stores via a heavily discounted menu that regularly generates buzz on social media.Cafes are a popular choice for many luxury brands. Ralph Lauren launched Ralph’s Coffee in their New York and Chicago flagships and other destinations to casually and physically lure in younger customers to regularly engage the brand in an approachable, easily accessible way. Kith is taking a similar approach with its Kith Treats milkshake cafe concept.See full article: #cbre #foodandbeverage #retailrealestate #luxuryhttps://lnkd.in/gYwCn97t

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