In order to design a product that creates value, a crucial step known as the analysis phase is set up. During that, a plan is set up to gather data, which is then carefully studied to uncover important insights. Before diving in, a clear problem statement is formulated: design a new mass-producible Nespresso coffee machine, that uses a single-portion system, which is more sustainable than industry standards. The statement gives a clear base to what information needs to be seeked.
Analysis
Market research
In order to get a better idea of the situation on the market and the competitors, a market research is conducted. A sample of competitive brands is chosen that satisfy the same customer need. In order to cover a wide base, brands are chosen that have similar functions: beverages consumed as a hot drink and/or to get energy. In the scheme below their classifications can be seen. Nespresso is also included for reference purposes.
Competitive brands diagram
Following, a competitors analysis is done to get a better understanding of expectations, by rating the brands based on five criteria:
Quality - aspect that Nespresso is really known for, is important for customers.
Ease of use - main advantage of pods, crucial selling-point for customers.
Sustainability - a major trend in society, looking to develop an eco-friendlier machine.
Price / value for money - gives a better idea of what functions are expected in certain price classes.
Choices / customization - how broad the options on the market are.
The detailed comparison of Nespresso and competitors can be seen in the appendix ‘’Marketing report.’’
By analysing the competitors on the market, it is found that Nespresso scores high on quality compared to the competitors which is something the customers appreciate. However, the existing sustainability endeavours of Nespresso are currently decreasing comfort of users. The price of the machines and pods are high, but the customization possibilities are significant. Some points of parity with other brands is the making of single-serve coffee and in most cases the ease of use and the short brewing time. Points of difference for Nespresso are there prestige quality, brand recognition and sustainability initiatives.
Based on the market research, a SWOT analysis is used to find the weaker sides of Nespresso to work on and good ones to maintain.
SWOT analysis
To draw conclusions from this analysis phase, a focus on sustainability without compromising too much on the ease of use and quality is the way to stay ahead of competition. Nespresso has to find the fitting balance between sustainability and ease of use, while still remaining the important aspects like quality and luxury that customers value. This is something that the product under design should seek a solution for.
Nespresso’s position on the market