What are the risks to B Coffee and Nespresso?ī Coffee has one significant risk to manage- that people who invest in the machines will get frustrated. Either they will be frustrated with the limited choice of coffees, or they eventually may want a cappuccino or other coffee including milk and then will realize they have no options but to purchase a second machine. The merchandising for B Coffee is very boxy, which is exactly what you would expect for cereals or pasta, not for coffee. They have not yet made an environment which links you back to your own home The balls themselves. Unfortunately, the balls look somewhat like animal excrement. I do not know what is holding the coffee together- I assume some unnatural chemical. It is not something you would want to showcase on your kitchen counter or your living room.ĭ. espresso and espresso forte are 2 of them…). The only indication on the package is strength of coffee- nothing on acidity or bitterness, and no flavors or milk optionsĬ. There are only two choices for types of coffee with the B Coffee machine: espresso or “lungo”. In terms of packs of coffee there are 8 choices for purchase, but very limited (i.e. For tasting and purchase, some Migros supermarkets are allowing consumers to taste the coffee in their stores. However the network is limited and the space for tasting coffee is a supermarket, meaning noisy and not particularly beautiful. Compare that to a Nespresso boutique where you can project yourself better into your own living roomī.
B Coffee only provides 9 coffee balls, meaning the price per coffee ends up higher than NespressoĪ.
Their price per pack of coffee seems below Nespresso who sells a pack of 10. Customers imagine that a pack of coffee has 10 units as that is what they have gotten used to with Nespressoī. Pricing: B Coffee’s machines sell for CHF today, which is >50% above the price of their competitorĪ. Functions: B Coffee has coffee machines which only allow for making espresso and “long” coffee. The machines do not allow for milk frothing, which would mean having a separate machine to froth the milk if someone wanted that featureī. Let’s look first at B Coffee, and what they are bringing to the market vs their main competitor. In today’s “green” world, people want to purchase “sustainable” products. B Coffee is focusing on one pointed difference to their competitors: providing consumable coffee which is in recyclable packaging and for which the only waste is the ground coffee beans themselves.Ī. #nespresso is far and away the leader in terms of home coffee consumption. They have created a unique boutique experience, allowing them to change the entire #FMCG #coffee distribution network outlook. Nespresso has also strongly developed a business model whereby they sell coffee machines at cost or even a loss, and practice big margins on their coffee. Nespresso provides capsules, for which consumers pay for a very small amount of coffee inside packaging, which in some markets some capsules are recyclable, but from a global perspective most capsules are not easily recyclable (in their home market of Switzerland the consumer capsules are recyclable and the business capsules are not).ĭisclaimer: This article is focused on the business model and expected customer experience, not on the quality of the coffee itself.
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