Influencers 2014: Nespresso discusses being more than just a machine and targeting younger consumers

Welcome to Influencers, our annual series that speaks with the heads of retailers, suppliers and industry bodies to find out what is happening in appliances and electronics and how different companies are shaping its future.

John Ciaglia is the commercial manager at Nespresso Australia. Today, he drops a capsule of his favourite Grand Cru into a Nespresso machine and tells us all about how the famous Swiss brand plans on maintaining a stranglehold on the Australian coffee market.

John Ciaglia

Achieving strong sales targets: John Ciaglia.

How has the first half of 2014 been for your business?

It has been a very positive start for Nespresso this year. We extended our coffee offering to 22 Grands Crus, to deliver a range of the highest quality coffees to suit every occasion and taste.

In January, we introduced Nespresso’s first Pure Origin Lungo, Bukeela Ka Ethiopia. This was followed by the release of two Limited Edition coffees from Colombia, Cauca and Santander, as well as the relaunch of Fortissio Lungo in May.

In addition to expanding our coffee offering, we also extended our range of coffee machines. With the introduction of the Latissima Pro and Inissia machines, we are continuing to drive innovation, as well as appealing to new audiences. The Lattissima Pro is the most technically advanced Nespresso – De’Longhi machine yet, featuring the first innovative LCD touchscreen display. With the touch of a button, it allows coffee-lovers to recreate the full café experience in their own home and also has the added convenience of a self-rinsing function.

What are your predictions for the second half of the year?

In Australia, portioned coffee is the fastest growing category in the coffee industry, with experts predicting one in four households will have a coffee system by the end of 2014.
In terms of key sales periods, we expect major gift-giving occasions such as Father’s Day to bring growth to the capsule coffee market and we will be supporting this key selling period with a cashback offer on all machine ranges.

The introduction of the Inissia, with its attractive price point, provides us with a strong offering for a younger audience looking to become first time Nespresso machine owners. With this, and the release of a new range of limited edition colours in August, we expect it to also boost sales performance for this half of the year.

We believe that with key sales activities like our cashback promotions and new machine innovations, retailers will be set to achieve strong Nespresso sales targets.

What opportunities do you see for the electrical retailing industry?

In the past couple of years, we have seen a rise in home renovations and interior decorating as a result of television shows like The Block and House Rules. This means Australians are now more conscious of the appearance of their home. This presents an exciting opportunity for the electrical appliance industry.

This trend has influenced a shift towards more colours being featured on appliances in order to suit today’s living space. Our latest machine, the Inissia, bundled with the new Aeroccino3 milk frothier with ceramic coating, is a compact and sleek coffee machine offering young consumers a variety of playful colours including Black, White, Red, Cream and two new Limited Edition colours: Blueberry Blue and Lime Yellow.

What threats are currently present in the industry?

There are now more players in the capsule coffee category than ever before, which makes it an important time for us, as the pioneers of the category, to reinforce that Nespresso is more than just a machine. When you buy a Nespresso machine you join The Nespresso Club, giving you 24/7 access to our knowledgeable coffee specialists who provide advice on coffees, machines and accessories, as well as instantaneous product orders.

Our innovations and services continue to set the standard for customer care and provide a level of added value, unmatched in the industry. This is why our Club Members continue to choose the genuine quality of Nespresso.

It’s also why we seek out opportunities for new customers to not only taste the quality of Nespresso coffee but also experience our customer service excellence first-hand, during our in-store trade demonstrations.
It’s also important that the portioned coffee industry provides solutions for recycling. For Nespresso, sustainability is an integral part of our business. We believe a responsible business is a sustainable business and have put local programs in place to ensure the proper disposal of used capsules.

The first step of this journey in Australia was to install recycling collection points in each of our boutiques nationally. We’ve recently launched a partnership with TerraCycle to expand our collection points across the country and we will continue to work on finding ways to make recycling more accessible and simple for Club Members.

What is your favourite product of 2014 so far?

This year, the release of the Inissia (RRP $249) machine has allowed Nespresso to access a new, younger market. As one of the most compact machines yet, I can say it’s currently one of my favourites. The Inissia is designed to suit today’s contemporary living environments, be it in the kitchen, living room or guest room. We believe it is the perfect machine for households looking to purchase their first Nespresso machine.

Nespresso De'Longhi Inissia

Targeting a younger audience: Nespresso De’Longhi Inissia.

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