Nespresso Club In China And Eastern Europe Marketing Essay

Nespresso Club In China And Eastern Europe Marketing Essay Nespresso is the worldwide pioneer and market leader in premium-portioned coffee. It launched the first system of extracting coffee from capsules to the domestic household market. They currently operate more than 200 boutiques in key cities around the world. The Nespresso Club concept has been successful in Western Europe. The concept is simple: when a machine is bought, the customer joins Nespresso Club on Internet to purchase capsules. This case study investigates on the expansion of Nespresso Club in China and Eastern Europe and that may affect Nespressos entry of these markets. Discuss the key environmental factors that may affect Nespressos entry of these markets, and comment their business implications. Coffee tastes and perceptions are changing fast. Both Western and Eastern European countries have seen an explosion of trendy coffee shops over the past decade. Coffee has become a fashionable lifestyle drink and consumers across Europe are demanding products that allow them to replicate the coffee shop experience at home. (Mintel 2010) On the other hand, the key environmental factors that may affect Nespressos entry in the market of Eastern Europe and China are grouped into five factors: Social-Cultural: The Chinese have the habit of drinking tea. About coffee, they know only freeze-dried coffee. China is the worlds first country to have planted, prepared and drank tea. A culture related to tea made its appearance in a long history. Tea is indispensable in the life of Chinese. It is not only seen as a beverage, but it has also become a cultural art that expresses the philosophy, the aesthetic vision and the lifestyle of Chinese. According to the secretary of the European Coffee Association, Eastern Europe could be the biggest potential developing market of coffee. Moreover, the consumption could develop radically in Poland, Romania and the Czech Republic (Mooradian Swan 2006). He also added that for coffee consumption grows in Eastern Europe, it would be necessary to stop for consumers to consider it as a luxury product, but as an everyday consumer product. Tea is truly present in Russian society and it is inseparable from the Samovar Ceremony. Today, tea drinking around the samovar is to perform a warm and friendly gesture. (Healthy Tea Magazine 2008) It is a moment of sharing within the community in which everyone benefits from home and the presence of each. However, coffee market is expanding in recent years in this country. Legal: There are several barriers in China to establish itself in this country. There is a lot of paperwork to enter in the country. Nespresso sells the machines under license. Their concept, the machine and capsules are protected by 70 patents (School Project 2010). Nevertheless, the China market is risky because after few months the product is counterfeit. No legislation is truly effective in China for the counterfeiting. Under the legislation in force in Russia, over 60% of the products to be sold in the country require compulsory certification or license. That is to say, they must be approved by relevant Russian authorities to verify compliance national standards (Malchik 2010). Economic: China is the second largest economy after the United States. The country had a particularly strong economic growth since the 1980s. However, the population remains relatively poor. There are large disparities between regions and individuals. (BBC News 2009) Eastern Europe consists of a poor population, but its emerging economies have improved their purchasing power in recent years. Nevertheless, machines and capsules are expensive in spite of everything. Political: China has introduced a new tax for foreign companies (Proexport 2008). It would be for maintenance and construction of cities and educational support from foreign companies and foreign persons with business interests in the country. To control imports, the Chinese authorities have introduced restrictive measures applied to many products: the requirement to obtain an import license, the application of quotas and the application of tariff measures. (Thompson 2009) In Russia, there is a lot of bribery for companies. Approximately 80% of companies operating in Russia are forced to pay bribes. Further, the average amounts have increased in recent years. In 2000, a company had to pay on average  £6500 to have no trouble. Now, they must give  £85 000. It is the equivalent of the price of a small apartment in Moscow. Écouter Lire phonà ©tiquement Technological: Consumers must join online the Nespresso Club to purchase capsules from Nespresso Boutiques but only 45% of the population in China have Internet. Over 80% of households have Internet access in countries of Northern Europe. Eastern Europe is trying to gradually catch up delay Internet access, but it is very long to implement. Question 2: Consider opportunities and challenges for Nespresso in these markets in managing customer relationship and sales through the Internet. What are the advantages and disadvantages of such an approach? On Nespressos website, the Nespresso club can give access to a full range of services tailor-made for customers. This concept has been successful in Western Europe. Opportunities for Nespresso are to have consumers on Internet to control the different information. The advantages for Nespresso in these markets in managing customer relationships and sales through the Internet are the ability to know the expectations of customers and to read the consumer reviews on products. Nespresso Club allows a direct customer contact thanks to emails or discussion boards. On Internet, this is the best way to promote products and introduce the company. It creates a close relationship with consumers and forms a special connection. It hopes to turn them into brand advocates. In addition, it updates the database marketing and it can adapt sales strategies. Furthermore, if it does not sell in supermarkets but only in Nespresso Boutiques and Nespresso Club, the branding is positive and reflects a luxury product. By having the main service exchange online, Nespresso retain control of supply channels. Thus, it can assure high quality standards that build a brand identity. (New Media 2009) Challenges for Nespresso are to convince consumers to drink coffee in these markets, to buy a Nespresso machine and to join Nespresso Club to purchase capsules. The disadvantages with such an approach are that the consumers dislike purchasing online, especially Chinese people. Moreover, in China, only 45% has Internet and boutiques are in big cities. There is a large part of the country, which is not covered by Nespresso boutiques because major cities are in Eastern China on the coast (Alvarez Wilding 2008). Such an approach is risky for several reasons. Consumers do not necessarily want to join in the club online, especially to purchase coffee capsules. Further, some consumers prefer to have someone to talk in face-to-face and not on the Internet through emails or discussion boards. In Eastern Europe and China, a portion of population has low incomes. They do not want to waste time so they buy products they find at the supermarket. In addition, they have not all used to order online because this is not in their manners. Question 3: Given that the Eastern Europe and China are emerging markets, would you consider that Nespresso could successfully apply the Nespresso Club concept developed for the Western markets, or should the marketing strategy be adapted to reflect the markets specifics? Support your view on this with examples. Nespresso has not adapted its concept in these markets. However, some companies have chosen the adaptation strategy: Carrefour is a French international chain hypermarket. In 2009, Carrefour is the third in the world biggest to make profit behind Wal-Mart and Tesco. The adaptation of Carrefour consumption patterns for Chinese people is evident in the stores: the fish are alive in aquariums, customers choose their own pieces of meat and fresh products are extremely varied more than in Western Europe. Likewise, McDonalds in China has adapted its menu to meet the Chinese taste. There are a lot of fried chicken instead of meat in the hamburger because more Chinese people like it. Unlike Western Europe people, they like meat more than fried chicken in their hamburger. Further, it is very important to most Chinese consumers to have coupon deals so McDonalds offers several coupon deals to compete the KFC fast food. Nevertheless, McDonalds has standardized the concept in Europe and USA with identical hamburgers and restaurants. Nespresso is not the only one to have standardized its own concept. Several companies have preferred standardization: Like IKEA, it offers home products that meet the needs of people worldwide. For people with needs, tastes and budgets which are very varied. IKEA has the same structure and offers the same furniture catalogs in the world. IKEA stores around the world have the same range of products. It sells a similar lifestyle worldwide. The catalog contains from 2000 to 3000 products and it is the same furniture everywhere in the world. The concept is a success in Russia. It worked very well. Then, Starbucks Coffee has established in China with the same concept as in USA and Europe. Coffee shop has a friendly atmosphere thanks to its decoration, comfort (chairs, sofas), the music played and the ability to take his time in the shop (Wi-Fi connections). This place has attracted the Chinese despite their taste for the tea. Nespresso chose to apply the same concept in Eastern Europe and China. It is a good strategy because it achieves economies of scale in research and development. Thanks to standardization, Nespresso has a consistent brand image across markets. Further, a standardization strategy is much less complex to implement and it is quickly operational (Chernev 2007). Standardization can lead to failure despite the economies of scale that it generates because people do not want to change or abandon their culture.

Knowledge Is the Ultimate Power

Knowledge is the Ultimate power by jayaram Dear friends, have you ever gazed at the night sky and wondered â€Å"What is this Universe? Why is the universe the way it is? Where did we come from? How long our Earth and human race last for? † I think everybody has these questions at least once in their life and we may have a little bit answers. If you want to get better answers, you must read an awesome book called â€Å"A brief history of time† written by Stephen William Hawking mainly for a layman. Stephen William Hawking is a cosmologist, Physicist and Mathematician who is believed to be one of the greatest minds and a living genius.How you will feel if one day you come to know that you are going to die within two years? We will lose our heart. We will lose our future dreams. Some fellows will start to enjoy whatever they wanted to enjoy in their entire life. Some fellows even will try to suicide or start to abuse the God like why the god cursed me? The Same thing happ ened to Hawking. At the age of 21 he was diagnosed with the incurable disease ALS shortly before his marriage, and doctors said he would lost control of his muscles day by day and would not survive more than two years.At first, Hawking was shocked and upset. He could not find any reason for living except one goal to complete understanding of the universe, why it is as it is and why it exists at all. He lost the use of his arms and legs. Fortunately the progress of his illness slowed down Despite his growing physical disabilities, he determined to live and make professional progress in the world of science. Hawking explained the beginning of the universe with the help of black holes which Einstein couldn’t answer.Unfortunately at the age of 42, Hawking caught pneumonia and had a tracheotomy operation, which made him voiceless and as of now he has been almost completely paralyzed. To communicate he has been using a voice synthesizer which auto-completes the words entered throug h a sensor on his cheek. He can speak only 4 words for a minute. Inspite of all disabilities he wrote 6 books through which he changed the perception of human beings about the universe. He had a zero-gravity space flight to encourage public interest in space.He had an attractive family. He got Presidential Medal of Freedom the highest civilian honor in the United States. He is the king of cosmology not because of political power; he has everything not because he is a billionaire. He is a celebrity not because he is a Hollywood or pop hero. He has sold more books on physics than Madonna has on sex. All is because of his search for truth, Quest for Knowledge and knowledge is the ultimate power. The world of knowledge is waiting for our contribution. Let us add something to it.

Stefan’s Diaries: Bloodlust Epilogue

Once I stopped drinking human blood, I became even better at hearing a heartbeat, knowing in an instant, from the speed of a pulse, whether a human was sad or annoyed or in love. Not that I was around humans very much. After I left New Orleans, I truly was a creature of the night, sleeping during the day and venturing into the outside world only when humans were safe in their beds, fast asleep. But occasionally I'd hear a quickening heartbeat and know that someone was climbing from a window or sneaking out a door to meet a lover, stealing a few moments of intimacy. That was the hardest sound to hear. Whenever I did hear it, I was reminded of Callie, of her fluttering heart and quick smile. Of how alive she was, and how she was not afraid to be in love with me despite my true nature. Now, when I think of our plan to escape, I can't help but laugh bitterly at myself for ever thinking it could have been a possibility. It had been the same foolish mistake I'd made when I'd fallen in love with Katherine, believing that humans and vampires could love each other, that our differences were just a minor detail that could be easily solved. But I wouldn't fall into that trap a third time. Whenever vampires and humans dared to love each other, death and destruction were sure to follow. And I had enough blood on my hands to last an eternity. I would never know the extent of the harm Damon was causing in the world. Sometimes I'd see a newspaper article or hear snatches of conversation about a mysterious death, and my mind would instantly jump to my brother. I'd listen for him, too, always waiting to hear him call â€Å"Brother† in his exaggerated drawl. But mostly I listened to myself. The longer I subsisted on animal blood, killing the odd squirrel or fox in a forest, the more my Power ebbed, until it was simply a faded thrum in the background of my being. Without Power, I lost the electric sense of feeling alive, but the guilt I would carry for the rest of my existence had dulled around the edges. It was a trade-off, one of many I'd learned to make, and one of many more I'd have to make in the eternity that stretched in front of me. So I made the vow to always keep moving, to never stay in one place too long or grow too close to anyone. That is the only way I'll do no harm. Because God help us all if I ever fall in love with another human

The Link Between Down Syndrome and Alzheimers Disease...

The Link Between Down Syndrome and Alzheimers Disease The individuals with Disabilities Education Act states that all children with disabilities, including mental retardation, be educated to the maximum extent appropriate with students who are not disabled (2). In an ideal world, society would have no problem following this decree, but the world is less than perfect and, therefore, stigmas are unfortunately attached to those suffering from mental disabilities, especially the mentally retarded. One has to question whether this group of people deserves these stigmas. Having grown up with two severely retarded cousins and, for that matter, a great uncle suffering from Alzheimers Disease, I often wondered as to what was happening†¦show more content†¦The fact that individuals displaying the same symptoms have similar abnormalities in their brains gives supporting evidence to the brain = behavior argument. In further support, studies have suggested that mentally retarded adults have the same risk as other adults of developing Alzhei mers disease, which affects roughly 6% of adults over 65 in the general population. However, adults with Down Syndrome have a much higher rate of developing the disease. 25% of adults with Down Syndrome develop the disease by age 40, and the rate sky-rockets to 65% after age 60. Upon autopsy at death, nearly all adults that suffered from Down Syndrome show brain patterns analogous with those of Alzheimers (9) . If the brain is responsible for the behaviors demonstrated by the sufferers of both Down Syndrome and Alzheimers, then one has to question what the link is. What makes the transition from one to the other more frequent than in the general population and why are the mentally retarded not afflicted by Alzheimers as often as those with Down Syndrome? Down Syndrome is the most common genetic form of mental retardation and occurs in about 1 out of every 800 births. It has distinctive characteristics that allow it to be easily distinguished from other forms of mental retardation (3). Factors such as maternal age, hormonal abnormalities, x-rays, viral infection, immunologic problems, and genetic predisposition can cause the improperShow MoreRelatedThe Chronic Neurological Disease : Alzheimer s Disease1649 Words   |  7 PagesNeurological Disease: Alzheimer’s Hollie Haywood South Piedmont Community College Abstract Alzheimer’s disease has been around since 1901; a German psychiatrist Alois Alzheimer was the first man to identify and follow a case that is now known as Alzheimer’s disease. Alzheimer’s disease is involved in synaptic deterioration and neuronal cell death, and causes degeneration in the hippocampus and amyloid deposition in blood vessels, ultimately cell death is the cause of the disease. 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