Ho Ho Ho, Merry Purchase

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Holliday seasons have always been a great motivation to spend a bit more than we usually tend to: for family, friends and most importantly, some would say, for ourselves. As if we actually needed extra motivation to fill in our holiday carts, companies like Tasimo makes extra efforts to remind us, with a fresh and Christmassy new commercial presenting their new coffee machine.
The the5marketeers, a strategic brand management blog for coffee lovers,reports that as a response to Tasmio, Philips and Nescaffe offers cashbacks up to €100 on purchasing the Senseo or the Lattisima machines.

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On the other side of the coffee retail map, stands Starbucks and Nespresso which surprise with their brand new Christmas coffee flavors. Starbucks with the Geisha, a hard-to-grow premium bean, for no less than $7 per cup and $40 for half a pound bag. The Time reports, that this decision is the next step in Starbuck’s marketing strategy – convincing the costumer that a cup of coffee, which used to be sold for less than $1 is actually worth much more.

Moreover, they report this strategy is not just unique to Starbucks, but rather a process in the fast food industry today, offering

premium products to compete with the casual restaurants. Jack Russo, an expert in the industry, claims these premium product are aimed to a specific cut of the population, rather than, who has no problems to spend more money on high quality products. This previous post elaborates more about trends of premium product. If you belong to the group of people who believe this is an outrageous move of Starbucks, perhaps you should watch Jimmy Kimmel, host of ABC’s Jimmy Kimmel Live, more often: “Although while it’s ridiculous to spend $7 on a cup of coffee, it’s not that much more ridiculous than spending $4 on a cup of coffee.”

In order to keep with the competition, the5marketeers posted Nespresso pulled out of their sleeves 3 new tastes especially for the Christmas holidays: Coconut, Hazelnut and Macadamia Nut. Hazelnut, which can also be tried in one of the Nespresso boutique stores around your area.

noel-8
As Starbucks wished us recently: The holiday drinks are here, so have fun!

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3 thoughts on “Ho Ho Ho, Merry Purchase

  1. Salut Itai!
    First of all, I need to say, “Niiiiiiice!”. Overall your blog is really, really great!
    Like Jula921, you followed the advice we got last week for better blogging and therefore achieved, at least in my opinion, bigger success. So, I love your headline. It is short, season-relevant and particulary very catchy! It really made me curious.
    I think you have found the best “redline” troughout all your blogposts of all blogbusters. If I think of my groupmembers topics, Itai and his coffee passion is the most constant and therefore memorable topic. And that´s a big success, I guess!
    If I researched your topic a bit, I have to admit, that your blog provides me with the best summarized information so far, What a proof for excellent research on your part!!! But I did find something interesteing what you didn´t mention (as far as I know) yet. What about the coffee brands and shops loyalty programs to keep their customers? Maybe this blogpost of David Ingram could wake your interest: http://smallbusiness.chron.com/coffee-shop-marketing-strategies-10413.html ?
    What´s also wonderful is your use of the “authoring words” we learned this semester. claims, reports, posted, pulled out, etc. It shows your motivation to improve when you use those tips!
    The last assignments tasks was to work by following the literature review tips from Dr.B. One point of that was to offer different opinions and you also did that presentably and exemplary! You told us the bait offers of the different companies and also mentioned negative opinions about them. (Jack Russo, an expert in the industry, claims these premium product are aimed to a specific cut of the population, rather than, who has no problems to spend more money on high quality products.)
    Unfortunatley I am not so happy about the choice of your pictures. I know it´s not easy to find other pictures about coffee but maybe you will find nicer ones. You are using starbuck pictures in nearly every post and the maybe you could even format them a bit nicer, e.g. next to the text instead of in the end, in the middle and in the end. And use the quote function more often because that makes the blog look much nicer!
    But that´s just kindergarden nagging! The blog is great and I enjoy reading it every time!
    Have a good night!

  2. Hey Itai,
    good choice of topic. You have been focusing on coffee over the last couple of weeks and you have the talent to choose a different and interesting aspect of it every week without making your topic boring. I really appreciate that since you are the only person in our group who feels that passion for one specific topic. Really a good choice 🙂
    I also saw a documentary of VOX on saturday about marketing during christmas time and it is incredible that companies are so dependent on this period of time. Check this documentary out: http://www.voxnow.de/die-samstags-dokumentation/happy-shopping-einkaufen-um-jeden-preis.php?container_id=108995&player=1&season=0
    I was so surprised that some companies actually earn around 40 % of there annual revenues only in the christmas period.
    It seems that also the coffee industry tries to jump on the hype and sell more products during christmas. You really followed the steps of the literature review and tried to research many opinions by professional. You also compared two products which shows me that you are already kind of an expert in your field and that you developed your research skills over the last couple of weeks. As Melanie already said, your language is also very good. Good choice for the last sentence because it really feels like christmas now.
    I also found an article about the christmas strategy of starbucks http://www.businessweek.com/magazine/starbuckss-12-months-of-christmas-12082011.html
    For you next post I would suggest to divide your paragraphs maybe with sub-headlines. Then it would be even better structured for me.
    All in all, a very good post with a relevant topic for everyone.

  3. To be honest i didn’t read all of your information, but really enjoy your thorough coverage of my favorite, great and convenient coffee. I want to post a VERY important DISAPPOINTMENT with the Nespresso product policies. I bought the fabulous machine, which produces the most authentic coffee with a perfect crema atop, last December of 2012. I bought at a time where the company offered a $100 credit in coffee capsules w/purchase of one of their machines. The company was overwhelmed by the sales and were backlogged on processing the credit. I believe i might have just receive the credit in March or even April, 3-4 MONTHS after purchase. My BIG complaint is that after not liking the weaker capsules I am trying to return 4 sleeves of ten capsules (i.e. 40x $.60 or $24.00 of product) and the company refuses to help me as their ridiculous return policy is 14 days! i have spent over $300 probably in ordering thus far, WITHOUT having the credit promised at purchase as it wasn’t ready and input in their system (their mishandling of a promotion in my opinion). So, if after reading your reviews more carefully, I find a nice alternative, I will return my Nespresso machine and say BYE BYE NESPRESSO!!

    Thx very much for the info!
    Ellen

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