The coffee pods market is evolving quickly
The coffee capsule became a day-to-day product used by 20% of homes equipped with coffee machines in France. It seems that coffee brands has their own strategic positions and each of them earned a share of the pie in this sector.
Unfortunately, private labels came in the market thanks to the first espresso machine and coffee pods launched by Casino (thanks to a partnership with Malongo).
This new product shake violently the market and brands had to take some initiatives to remain present in it.
The brands tried to propose a different product in order to keep the market shares. The fist innovation was to work on a different product, a multi-beverages product, to reach a new target. “Chocobreak” is the perfect example. Launched by ‘’La Maison du café” and Philips this machine is targeting the teenagers and child and is able to make hot chocolate.
Tassimo created different experiences and proposed a big range of beverages with new sort of teas, hot chocolates and coffees.
Of course this strategy is interesting because the bigger the range of product the bigger the potential target.
The quality and the taste of the coffee remain the essentials parameters in the buying process. Saeco and Lavazza understood this quite well and launched an authentic Italian coffee; Nespresso invited their customers to discover the best products and Malongo created a new range of high quality products with a real distinction between the pods.
All brands make some huge effort in the design of the machines. Each machine have now different advantages, shapes, colors etc.
Tassimo reached young people, single or childless couple with a modern and classy design. Lavazza and Saeco played on “”pop art colors” to deliver happiness to the customers. Finally, Nespresso and Senseo created really small machines that are adapted to small spaces.
Indeed, coffee pods are, most of the time, working only with one single machine. Marketers have to sell machines in order to sell coffee pods. That’s why the machine and its design play an important role in the market.
Knowing the environmental issues that we face today, coffee brands understood that improving and communicating about their sustainable effort will play a key role on their images. Machines are more and more technological and environmental friendly. The T20 machine, for instance, have descaling indicators and a cleaner system of the machine between each beverage. Malongo and Casino machines possess a water filter in the machine to have cleaner water. The ethical issues are now crucial. Most of the brands make capsules using recyclable natural paper. Since 2009, 1000 Nespresso’s point of sale take the pods back in order to treat them ecologically. It’s a good way to show to the customers that the company is sustainable.
The intense competition on the market and the entrance of private labels in it force the actors to take strategic decisions to keep the customers faithful. Each brand keep working on new projects to facilitate and make unique the customers experience.
