Arne Krokan’s part has just gone, now the new part is coming, which is Social Communication by Cecilie Staude. As usual, each week I will publish two blogs about typical topic that related to this part.
In this first blog of Cecilie’s part, I will introduce to all of you the concept of customer journey. I will take Nespresso as an example. Basing on the understanding of consumer behavior and communication habits, I will briefly analyze the journey where customers choose to buy Nespresso’s products.
In the book “Marketing Management” by Philip Kotler and Kevin Lane Keller, they point to consumer behavior as the study of how individuals or groups of customers choose, buy, and use the services and products, and more about how they sacrifice, trade in order to satisfy their needs. It is mainly related to psychology, motivation and behavior.
The research on consumer behavior includes:
-How consumers perceive and think about alternative products (brands, products, services and retailers)
-Inference process and choice between different products.
-How consumers research and shop
-How the surroundings affect consumer behavior (co-workers, culture, media)
We can simply understand Media habits is the way a person reach to media channels such as Facebook, Instagram, Youtube. Media habits also influence consumer behavior more or less.
The background story
Some people need at least one cup of coffee a day to stay awake. Some people need more than one cup of coffee, and the ‘addicted to coffee’ group wants coffee every time they need it. These people are the main source of income for coffee shops, inhouse and take away. However, in some circumstances, as well as the long-term cost of serving the demand for coffee is too much, so some people choose to make coffee at home. However, the shortcoming is that they can hardly brew a cup of coffee that tastes like outside, and also needs to drink a variety of coffee (latte, cappuccino, mocha). This is where capsule coffee and capsule coffee machine come into play.
The growth of entertainment on the Internet, and during the Corona crisis, people used the internet more, from shopping to studying, meeting. That drives consumer behavior to change as well, they want every service at home, with coffee being no exception.
Nespresso’s market segment:
Market segmentation of Nespresso is single-serve coffee market and to the group of people who want a high quality espresso at home with variety.
Nespresso market segment can illustrate based on 4 factor : Geographic, Demographic, Psychographic and Behavioral.
Geographic: Nespresso focus the most on Europe market because of its major sales. Nespresso also use Europe market to advertise and introduce their new products.
Demographical: Nespresso target on adults from the range age of 30-70. Nespresso also want to raise sale and spend more focus on the group 18-30. In addiction, medium-high end , compact, high performance life style, medium to high income people who seeking for “coffee shop quality at home” are these included factors.
Psychograpical: Nespresso’s customrs will be people of high social class, mainly. Price is the only barrier which prevents usual people from buying Nespresso’s product, but high social class people can easy break that barrier and buy these product without any issue. However, it still have people will buy Nespresso product because of the values and experience that Nespresso bring to them. The desire to chase the compact and high-end lifestyle is also the reason to buy products.
Behavioral: Nespresso expected at their consumer will be positive people and have a loyalty to their product. These consumers will positively join and collab with a solidarity project which will make them proud of the brand they are buying and using, for example Nespresso’s The Positive Cup program on sustainable coffee source, reduce aluminium and facing cimate change.
Nespresso runs marketing strategy mainly on two groups : the adult and the teenager. It is better to have focused group than do mass marketing. The adult group is the group that consume more coffee and the main target of Nespresso on sale. The teenager is the second one, Nespresso expected to change they behavioral by lead them to consume coffee instead of any soft drink. An effective marketing strategy can be used for teenager group is using influencers, famous teenagers who will influence the teenager market.
Nespresso’s customer journey:
On mass media channels, like youtube, we can easily see content in which a person uses a capsule coffee machine. That more or less affects the psychology of the user. The first thing that comes to mind is, “It’s convenient to have such a machine at home”. They can make any type of coffee they want to.
-> This is how customer reach to the product
In the market, there are many supplier who sell capsule coffee machine such as Bosch, Nescafé and Nespresso. These products are in different prices. When a customer think to buy a machine, they have to research and read about these alternative products.
-> This is the phase that consumers perceive and think about alternative products.
Each capsule coffee machine uses a different type of capsule. With Nespresso machines, consumers can buy Nespresso’s capsules, and they can also have another option from Starbucks. With these variety and convenience, it will be a priority for Nespresso capsule coffee machines. At the same time with the marketing campaign, Nespresso has promoted its image in a way that customers can easily access to them. When visiting Power or Elkjøp stores, customers can try Nespresso capsules at the counter. Of course other brands do, but the variety of Nespresso capsules and flavors can be overwhelming.
-> This is the phase of inference process and choice between different products.
After summarizing the strengths of Nespresso, customers will choose to buy the product from this brand. This leads to a major factor is customer loyalty. When a customer buys a Nespresso coffee machine, they will buy Nespresso’s capsules at the same time, making it a habit that until they are used up, they will also and may be only buy Nespresso’s capsules to use it with their machine.
-> This the last phase, when a person buy the product and become this brand’s consumer.
In conclusion, customer journey is all the way of a customer from a stranger to a consumer of a brand. The way that brand make a good marketing campaign, a good story of the products will affect a lot on consumer behavior and the willing to buy a product of customers.