Insight on the single serve espresso world

          For this blog entry I’ve decided to write about the new marketing and expansion ploys of the Nespresso division of Nestle which were described in the article, “Nespresso Coffee Develops a Taste for TV” in The New York Times.  This company sells personal espresso makers worldwide.  A recently emerging trend in the past few years has been personal coffee makers with brands such as Keurig and Tassimo dominating the market.  Nespresso is showing a form of horizontal differentiation in this market with their espresso, as opposed to coffee, makers.  Nespresso will be targeting the same crowd as their American competitors, but with the increasing sales of personal coffee makers and the differentiation they are exhibiting, they shouldn’t run into too much trouble. Another interesting aspect of the small kitchen appliance world is that television advertising, which Nespresso is planning, is not a common occurrence.  This can be seen in that from 2007 to 2011, the only year in which Keurig advertised on television was last year.  Until now Nespresso has run some ads in regional newspapers and magazines, but nothing as extreme as they are planning, as they put it, they must change their advertising techniques “to address increasing consumer demand, which we have been getting across the nation.”

The News on Solar Panels

          There are many ways to acquire electricity these days whether it’s nuclear power plants, burning fossil fuels, or harnessing the elements.  Nuclear power plants can be dangerous, fossil fuels burn unclean and are a finite resource, but how about the sun? Not only is solar energy free once it is set up, the government will allow a tax deduction of up to thirty percent of your installation costs, and it has no negative externalities such as many other energy sources, that is, unless you are part of a homeowners association.   The article from the Buffalo News, “Casting a Panel on Home Solar Panels” highlights some of these problems.  In some states homeowners associations are forcing residents to take down their solar panels because according to these neighborhood officials to the north of Atlanta, “the panels would look out of place and might lower home values.”  Around two dozen states have taken action against this and are outlawing homeowners associations from forbidding solar panels.  For example, Texas adopted a law that prevents homeowners associations from totally blocking these panels, residents can install panels on roofs or in fenced in areas.  This prevents the negative externality of having to see these panels, but still allows for them to be installed.