Nespresso is a Swiss Coffee brand established by Nestlé in 1986. The brand developed a system of portioned capsuled coffee and matching machines that interact in order to deliver a cup of coffee. In 1989 Nespresso introduced the coffee machines, along with the capsules on the market, and introduced the new way of brewing coffee to the Swiss household - and with that came the Nespresso Club. The Nespresso club was introduced in order for the consumer to receive exclusive and personalized customer service options, which has later become a distinctive feature of the Nespresso brand.
In 1996 Nespresso launched their first website, which has proven to be a key brand showcase and a sales channel for Nespresso along with the 190 brand owned stores located around the world (Hooley et al, 2012;210). Today it is possible for the customer to purchase a Nespresso machine at the Nespresso stores or at selected hardware dealers. However the capsules can only be bought at Nespresso’s own online and offline stores. The coffee brand’s approach to marketing is differentiated from other coffee brands, as Nespresso has entered the market with exclusive sales of capsules. This exclusivity creates foundation for the luxury marketing approach, which Nespresso has made in order to position the brand away from other regular coffee brands (Ibid.).
The market approach has been further developed and is engaging the consumer at the website, through “the choices we make” - campaign (Nespresso, 2018). This campaign includes the consumer in the reasoning for choosing Nespresso and what the brand, along with the consumer, does for other communities, such as environmental and social initiatives. This campaign is further elaborated on Nespresso’s social media platform, where the brand is succeeding in posting a mix of pictures taken by Nespresso as well as Nespresso’s customers, presenting the products in the same way described for AV.
The social media interaction and distribution set-up of Nespresso can be transferred into the recommended strategy of AV and can create a hypothetical guideline for success.
Alterations in order to adapt the strategy to the watch industry must be made however the perspective of Nespresso is worth to notice when differentiating the market approach for the Chinese market.
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Market reports:
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Bain & Company (2017). China's Two-Speed Growth: In and Out of the Home. By Bruno Lannes, Jason Ding, Marcy Kou & Jason Yu. Published on June 29, 2017
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China Trade Research (2015b). Beijing: Profile of a consumer market, Published on August 5, 2015
Collected on April 7, 2018
http://china-trade-research.hktdc.com/business-news/article/China-Consumer-Market/Beijing-Profile-of-a-Consumer-Market/ccm/en/1/1X000000/1X0A38C0.htm
China Trade Research (2017). China’s Watch Market, Published on September 20, 2017.
Collected online on April 6, 2018
http://china-trade-research.hktdc.com/business-news/article/China-Consumer-Market/China-s-Watch-Market/ccm/en/1/1X000000/1X002MSE.htm
Euromonitor (2016a). Is time running out for traditional watches? Published in April 2016.
Collected online on April 9, 2018
http://www.euromonitor.com/is-time-running-out-for-traditional-watches-/report
Euromonitor (2016b). Watches 2016 and Beyond: How will Asia move on from here? By Jasmine Seng, Published on December 28, 2016
Collected online on April 9, 2018
https://blog.euromonitor.com/2017/01/watches-2016-and-beyond-how-will-asia-move-from-here.html
Euromonitor (2017a). Watches in China, Published in June 2017.
Collected online on April 8, 2018
http://www.euromonitor.com/watches-in-china/report
Euromonitor (2017b). Consumer lifestyles in China, Published in January 2017.
Collected online on April 8, 2018
http://www.euromonitor.com/consumer-lifestyles-in-china/report
Euromonitor (2017c). Wearable electronics in China, Published in August 2017.
Collected online on April 9, 2018
http://www.euromonitor.com/wearable-electronics-in-china/report
Euromonitor (2017d). World market for personal accessories, Published in October 2017.
Collected online on April 9, 2018
http://www.euromonitor.com/world-market-for-personal-accessories/report
McKinsey (2012). Meet the Chinese consumer of 2020, by Yuval Atsmon and Max Magni, Published in March 2012.
Collected online on April 12, 2018
https://www.mckinsey.com/global-themes/asia-pacific/meet-the-chinese-consumer-of-2020
McKinsey China (2017) Double-clicking on the Chinese consumer, By Wouter Baan and Lan Luan, Published on November 23, 2017
Collected online on April 12, 2018
http://mckinseychina.com/double-clicking-chinese-consumer/
Shanghai Statistical Yearbook (2016) Collected online on April 11, 2018
http://www.stats-sh.gov.cn/tjnj/zgsh/nj2011.html#
Internet pages and articles
A Blog To Watch (2018). Four watch industry trends I want to see further develop in 2018. By Ariel Adams. Published on January 10, 2018
Collected online on April 6, 2018
https://www.ablogtowatch.com/four-watch-industry-trends-2018/
BBC (2018) China's anti-corruption campaign expands with new agency, by Pratik Jakhar, published on March 20, 2018
Collected online on April 5, 2018
http://www.bbc.com/news/world-asia-china-43453769
Berlingske Business (2011). Pop up butikker indtager byerne. Published on November 26, 2011.
Collected online on May 1, 2018
https://www.business.dk/detailhandel/pop-up-butikker-indtager-byerne
Berlingske (2015). Kinas kamp mod korruption. By Kjeld Erik Brødsgaard. Published on September 21, 2015
Collected online on March 15, 2018
https://www.b.dk/kronikker/kinas-kamp-mod-korruption
Berlingske (2018). Handelskrig tager til: Nu straffer Kina USA, mens Trump truer Mexico, by Michael Bjerre, published on April 2, 2018.
Collected online on April 5, 2018
https://www.b.dk/globalt/handelskrig-tager-til-nu-straffer-kina-usa-mens-trump-truer-mexico
Bloomberg (2017). Luxury Is Back in Vogue in China. By Colin Simpson. Published on September 28, 2017.
Collected online on March 15, 2018
https://www.bloomberg.com/news/articles/2017-09-28/luxury-back-in-vogue-as-china-s-women-middle-class-lead-the-way
Business Wire (2017). Top 3 Emerging Trends Impacting the Global Watch Market from 2017-2021: Technavio. Published on February 2, 2017
Collected online on April 6, 2018
https://www.businesswire.com/news/home/20170202005814/en/Top-3-Emerging-Trends-Impacting-Global-Watch
Casio (2018). Watches
Collected online on April 8, 2018
https://www.casio.com/products/watches
CEIC (2018). China Gross Domestic Product: per Capita, Last updated on February 28, 2018 Collected online on April 10, 2018
https://www.ceicdata.com/en/china/gross-domestic-product-per-capita/gross-domestic-product-per-capita
China Business Review (2011). Understanding Chinese Consumers, By Christina Nelson, Published on July 1, 2011
Collected online on April 13, 2018
https://www.chinabusinessreview.com/understanding-chinese-consumers/
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Collected online on April 6, 2018
http://www.chinadaily.com.cn/bizchina/2017top10/2017-06/23/content_29853826_10.htm
China Importal (2018). Watch Manufacturers in China, Published on January 5, 2018.
Collected online on April 8, 2018
https://www.chinaimportal.com/blog/watch-manufacturers-in-china-complete-guide/
CKGSB Knowledge (2013). The thinker interview with Philip Kotler, the father of marketing.
By Neelima Mahajan. Published on October 8, 2013 Collected online on April 23, 2018
http://knowledge.ckgsb.edu.cn/2013/10/08/marketing/philip-kotler-interview-four-ps-marketing/
Differentiate your business (2011). Advantages and Disadvantages of Value Chain analysis. By Paul Simister. Published on August 18, 2011
Collected online on April 26, 2018
http://www.differentiateyourbusiness.co.uk/the-advantages-disadvantages-of-value-chain-analysis
E-commerce China Agency (2018). Tmall VS JD.com : What’s the best e-commerce platform for you? Published on March 17, 2018
Collected online on May 7, 2018
http://ecommercechinaagency.com/tmall-vs-jd-com-whats-best-e-commerce-platform/
EF (2017). EF English Proficiency Index Collected online on April 30, 2018
https://www.ef-danmark.dk/epi/regions/asia/china/
Euroman (2018). Det danske urfirma ‘About Vintage’: “Vi skal have en omsætning på 100 millioner indenfor de næste par år”. By Sebastian Dall Mayoni. Published on March 8, 2018 Collected online on May 1, 2018
https://www.euroman.dk/mennesker/det-danske-urfirma-about-vintage-vi-skal-have-en-omsaetning-paa-100-millioner-indenfor-de-naeste-par-aar
Focus Economics (2018). China Economy Overview, Last updates on March 20, 2018.
Collected online on April 5, 2018
https://www.focus-economics.com/countries/china
Forbes (2017). Despite Consumer Demand, The Luxury Watch Industry Will Have To Shrink Before It Recovers. By Ariel Adams. Published on June 23, 2017.
Collected online on April 6, 2018
https://www.forbes.com/sites/arieladams/2017/06/23/despite-consumer-demand-the-luxury-watch-industry-will-have-to-shrink-before-it-recovers/#41d91b182c75
Forbes (2018). China Quietly Releases 2017 Provincial GDP Figures. By Salvatore Babones. Published on February 12, 2018
Collected online on April 5, 2018
https://www.forbes.com/sites/salvatorebabones/2018/02/12/china-quietly-releases-2017-provincial-gdp-figures/#472a6e9020dc
Fortune (2017). Why China Is Emerging as a Tech Superpower to Rival the U.S. By Clay Chandler. Published on November 21, 2017.
Collected online on April 9, 2018
http://fortune.com/2017/11/21/china-innovation-dji/
Forbrugerrådet Tænk (2014). Garanti og reklamationsret: Hvad er forskellen? By Mie Velebilova Sloth. Published on July 2, 2014
Collected online on April 14, 2018
https://taenk.dk/raadgivning-og-rettigheder/garanti-og-reklamationsret-hvad-er-forskellen
Fossil (2018). Men’s watches Collected online on April 8, 2018
https://www.fossil.com/us/en/men/watches/view-all.html
GB Times (2015). Does China have an english problem? By William King, Published on December 14, 2015
Collected online on April 18, 2018
https://gbtimes.com/does-china-have-english-problem
HiConsumption (2016). Japanese Precision. By Sean Tirman.
Collected online on May 9, 2018
https://www.watchreviewblog.com/are-seiko-watches-any-good/
Investopedia (A). PEST analysis. By Investopedia Collected online on April 22, 2018
https://www.investopedia.com/terms/p/pest-analysis.asp
Investopedia (B). Why is product differentiation important in today’s financial climate? By Investopedia
Collected online on April 23, 2018
https://www.investopedia.com/ask/answers/062415/why-product-differentiation-important-todays-financial-climate.asp
Investopedia (C). Marketing Mix. By Investopedia Collected online on April 23, 2018
https://www.investopedia.com/terms/m/marketing-mix.asp
Investopedia (2018). The Pitfalls of Porter’s 5 forces, By Andrew Beattie, Published on March 9, 2018
Collected online on April 22, 2018
https://www.investopedia.com/articles/investing/103116/pitfalls-porters-5-forces.asp
Jing Daily (2017a). Why the ‘Millennial’ concept fails in China, By Yiling Pan, Published on August 8, 2017
Collected online on April 12, 2018
https://jingdaily.com/why-millennial-concept-fails-china/
Jing Daily (2017b). 3 Must Know Trends of Affluent Millennials In Shanghai, By Ruonan Zheng, Published on November 11, 2017
Collected online on April 12, 2018
https://jingdaily.com/why-you-need-to-know-these-3-trends-about-affluent-millennials-in-shanghai/
Jing Daily (2017c). 5 things to know about the hottest Pop-up retailing trends in China, By Nina Huang, Published on November 13, 2017.
Collected online on May 1, 2018
https://jingdaily.com/5-things-pop-up-retailing-trend-in-china/
Jing Daily (2018). Are China’s retail pop-ups a bubble that’s ready to burst? By Ruonan Zheng, Published on April 20, 2018
Collected online on May 1, 2018
https://jingdaily.com/pop-up-stores-in-china/
Knoema (2012). Beijing - Rural Population, Countryside, % Collected online on April 11, 2018
https://knoema.com/atlas/China/Beijing/Rural-Population-percent
Lexology (2018). Anti-corruption and Bribery in China. By Kyle Wombolt, Robert Hunt &
Anita Phillips. Published on March 13, 2018 Collected online on April 4, 2018
https://www.lexology.com/library/detail.aspx?g=760a5dc1-33db-4d92-91de-c475eb4110da
Ministry of Foreign affairs. About Trade Council China.
Collected online on May 7, 2018
http://kina.um.dk/en/the-trade-council/tradecouncil-in-china
National Bureau of Statistics China (2017). Annual GDP per Capita by Province.
Collected online on April 4, 2018
http://data.stats.gov.cn/english/easyquery.htm?cn=E0103
New York Times (2014). How Switzerland came to dominate the watch market. By Victoria Gomelsky. Published on November 20, 2014
Collected online on April 26, 2018
https://www.nytimes.com/2014/11/21/style/international/what-enabled-switzerland-to-dominate-watchmaking.html
Quartz Media (2014). What China’s anti-corruption push has done to Swiss watch exports. By Jenni Avins, published on June 3, 2014
Collected online on April 26, 2018
https://qz.com/216244/what-chinas-anti-corruption-push-has-done-to-swiss-watch-exports/
Search Engine People (2016). Gen Y: How to target the largest consumer group in history. By Emily Culclasure. Published on August 29, 2016
Collected online on April 26, 2018
https://www.searchenginepeople.com/blog/16081-gen-y-marketing.html
Seiko (2018). Our Heritage
Collected online on April 15, 2018
https://www.seikowatches.com/global-en/special/heritage/
Shine (2018). Consumer confidence index hits record high, by Huang Yixuan, published on January 8, 2018.
Collected online on April 5, 2018
https://www.shine.cn/biz/finance/1801088780/
Statista (2016). China: Unemployment rate from 2010 to 2021 Collected online on April 5, 2018
https://www.statista.com/statistics/270320/unemployment-rate-in-china/
Statista (2017a). Labor participation rate* in China from 2006-2016 Collected on April 5, 2018
https://www-statista-com.esc-web.lib.cbs.dk:8443/statistics/239152/labor-force-participation-rate-in-china/
Statista (2017b). Unemployment rate in urban China in 2016 Collected online on April 5, 2018
https://www-statista-com.esc-web.lib.cbs.dk:8443/statistics/278354/unemployment-rate-in-china-by-region/
Timezone.com (2014). James goes to Japan: Seiko Factory Tour. By James Dowing. Published on November 7, 2014
Collected online on May 2, 2018
http://www.timezone.com/2014/11/07/james-goes-to-japan-seiko-factory-tour-part-1/
The Economist (2017). China’s demographic divisions are getting deeper. Published on September 21, 2017
Collected online on April 6, 2018
https://www.economist.com/news/china/21729573-no-province-has-many-babies-some-shortfalls-are-much-worse-others-chinas-demographic
The Local (2016). Survey: world willing to pay more for ‘Swissness'. Published on July 15, 2016
Collected online on May 9, 2018
https://www.thelocal.ch/20160715/survey-world-willing-to-pay-more-for-swissness
The World Bank (2017a) GDP (Current US$) Collected online on April 5, 2018:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?year_high_desc=true
The World Bank (2017b) GDP (Current US$) Collected online on April 5, 2018:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=CN&year_high_desc=true
The World Bank (2017c) GDP per capita (Current US$) Collected online on April 5, 2018:
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2016&locations=CN&start=199 1
Trading Economics (2018a) China Consumer Confidence, Last updated in April 2018 Collected online on April 5, 2018
https://tradingeconomics.com/china/consumer-confidence
Trading Economics (2018b) China Average Yearly Wages, Last updated in April 2018 Collected online on April 11, 2018
https://tradingeconomics.com/china/wages
WatchReviewBlog (2017). Are Seiko Watches any good? By Matt, Published on March 14, 2017
Collected online on May 9, 2018
https://www.watchreviewblog.com/are-seiko-watches-any-good/
Wilke. Atropologi/Etnografi Collected online on May 4, 2018
http://www.wilke.dk/viden/metodebibliotek/antropologi-etnografi/
Worldometers (2018). China Population Live Collected online on April 11, 2018
http://www.worldometers.info/world-population/china-population/
World Population Review (2017a) Shanghai Population, Last updated on October 20, 2017.
Collected online on April 5, 2018
http://worldpopulationreview.com/world-cities/shanghai-population/
World Population Review (2017b) Beijing Population, Last updated on October 20, 2017.
Collected online on April 5, 2018
http://worldpopulationreview.com/world-cities/beijing-population/
World Population Review (2018). China Population, Last updated on January 24, 2018.
Collected online on April 5, 2018
http://worldpopulationreview.com/countries/china-population/
World’s Top Export (2018). Switzerland’s Top 10 Exports. By Daniel Workman. Published on March 20, 2018
Collected online on April 26, 2018
http://www.worldstopexports.com/switzerlands-top-10-exports/
3Watches, branded watch manufacturer.
Collected online on April 6, 2018
https://www.3watches.com/product/fashion-unisex-watch-thread-etiquette-type-genuine-leather-strap-3w-te05/
Appendix 1
Questionnaire to About Vintage
This interview serves to collect knowledge about About Vintage, their history, aspirations, current challenges and strategic intentions. About Vintage was founded back in late 2014, and almost immediately experienced significant growth, and has not looked back ever since. But what does the future bring?
This paper has noticed a lot of interesting opportunities within the watch market, and would like to offer About Vintage advice for a future strategic positioning in this thesis, along with an indication of whether to accelerate in this position in the future.
Interview with Nikolaj Larsen, [Global sales director] About Vintage
Topic Question Follow-up question
Background
Tell us about who you are? What is your role and responsibilities?
Tell us about AV.. Who are AV?
What do you do?
What have your strategic considerations been so far?
Have you been following a strategic plan?
what are your current challenges?
what part of your business are you looking to develop next?
What is your current strategic plan?
How do you plan to deal with your current challenges/How are you planning to chase current opportunities?
Have you been thinking about your positioning in the market?
If so, how have you strategically positioned yourself?
Have you developed a vision and mission for your company?
If yes, what is it?
Aspiration/wondering
What are your aspirations for About Vintage?
What do you want to achieve?
what is your aim/purpose of being in this business?
Do you have a goal for the next five years?
Goals to achieve within 2023?
Market share, Revenue and positioning?
Where/Playground
which market(s) are you competing in? and how do you define these markets?
wristwatches, clocks, timepieces, jewelry etc.
geography?
How do you see this/these markets?
do they differ? and how so?
Where and how do you sell your watches?
Distribution wise?
Do you target different segments with different watches?
Or are all your products targeted at the same segment(s)?
Who are your customers? What are their typical behaviour?
Are they loyal?
We have been reading that you are targeting the affordable luxury segment. Can you elaborate on that?
Why this segment?
Who the customers in this segment?
Who are your greatest competitors?
How are you positioned compared to your competitors?
How would you describe the rivalry among you and your competitors?
What drives competition?
Price, design etc.?
We have been reading that you get some of your clockworks from Seiko - do you use other suppliers than them?
Are there many suppliers to choose from?
If so, why did you choose to work with Seiko?
Would you consider switching suppliers?
Why/why not?
How/execution
what is your selling proposition? What do you do better or differently than your competitors?
What are your values? How are they different from your competitors?
which capabilities enables you to do better/differently than your competitors?
and which must be
utilized/acquired to win against your competitors?
how/where do you bring value to your customers?
and how does this bring value to the customer?
Appendix 2
Interview, Nikolaj Larsen
Hvor stor en del af omsætningen forventer i skal komme fra Kina i fremtiden?
hvor stor en del af omsætningen, der skal komme fra østen, det har vi ikke defineret. Lige nu er de største markeder USA og Danmark.
Okay.
Så østen vil komme, men det er klart at alle brands, ligesom vores, kigge selvfølgelig mod østen, fordi der bor voldsomt mange mennesker, men det har vi ikke defineret.
De 100 millioner er et target som vi synes er realistisk set ud fra den vækst About Vintage har haft de sidste 3 år. Hvornår det kommer må vi så se. Der er ikke defineret en tidsramme på de 100 millioner.
Nej men det kunne være i havde fordelt procentvis hvor i forventer at få noget af omsætningen fra?
Nej det har vi ikke, men et godt bud, her i den spæde retail-start, ville være at asien kommer til at tegne sig for en stor del, men hvor stor en del, det må vi jo så se.
Okay. Jamen vil du starte med at fortælle lidt om hvem du er, hvad din rolle er og hvad dit ansvarsområde er?
Ja, min rolle i About Vintage er at skabe turnover. Jeg er salgsansvarlig globalt, og det vil selvfølgelig sige at i sidste ende at målet på de 100 millioner er som sådan delvist mit ansvar.
Og så er jeg i øvrigt partner i firmaet. Så det er min rolle.
Okay. Jamen hvem er About Vintage?