essence of marketing - bru coffee

Once Upon A Successful Brand

• Batch – 2014

• Name – Sheikh Rehmatullah

• Course Name – Brand Management

• Roll No. – 720

Choice of Brand (in Instant Coffee)

Brewing Rivalry

BRU Instant Coffee

• BRU belongs to Hindustan Unilever

• It was launched in the year 1968 under the brand of ‘Brook Bond’

• Since its introduction as an instant coffee, it has been launched with different varieties such as Bru Cappuccino, Bru Lite, Bru Cold Coffee, Bru Gold, Bru Roast and Ground etc.

• One of the highly consumed coffee brand in India

• It is an astonishing 800 - crore instant coffee segment in India

• From instant and conventional coffees to a variety of premixes, the rich aroma and exotic flavours of Bru coffees have made it India’s number one coffee brand.

• Bru’s market share as up to end of 2011 – 50.2% against Nescafe’s 49.2%. Growth rate is projected to be 25.6% p.a.

• Bru has established its own coffee-shop chain in Mumbai (Bru World Café’)

Understanding the Target Market

• One of the best advantages of marketing Coffee is its universal appeal. This fact has also been utilized and acknowledged by Starbucks coffee chain.

• However, segmentation of geography can play an important role in a traditional context wherein Coffee is extensively consumed in the South India as opposed to the North irrespective of the favorable weather condition.

• The segment for Bru Coffee is people looking to make coffee instantly.

Understanding the Target Market

Geographic Profile : Urban expanses and Metropolitan cities. (Insight – Bru is preferred and consumed more in South India)

Demographic Profile

• Economic Status – Middle and Upper-Middle Class• Income Level – 2 lacs to 5 lacs p.a. (or the range that falls in

above mentioned economic status category)• Gender – Equally consumed by both (Insight : Coffee is the

most universally preferred beverage)• Age – 18 to 35

Understanding the Target Market

• Occupation – Ranging from independent students wanting to prepare coffee on their own to working women who can make coffee instantly for their husbands before leaving for work.

• (Insight – Introduction of ‘Instant Coffee’ concept was to save time in the emerging workforce environment)

• Family Life Cycle Stage – Highest penetration for Bru is in Stage 6 of life cycle – Family with Adolescents

Psychographic Profile – Image projection of being proactive, while at the same time spending some happy and quality time with (special) people over coffee.

Understanding the Target Market

Techno-Savyness – Limited knowledge of the conventional technique behind brewing and preparing coffee (‘Instant’ is the order of the day)

Purchase Behaviour

• Loyalty - Most coffee lovers don’t like to experiment and switch once they’ve found their perfect flavour. Hence, consumer loyalty for Bru is on the higher side. However, introduction of small sachets (even new variants) by competing brands could give rise to more frequent switch to Nescafe’

Understanding the Target Market

Purchase Behaviour (cont.)

• Scale of Purchase – Availability of BRU in smaller sachets has decreased the scale of purchase. Unless a heavy and regular drinker, purchase are made in sachet forms than glass jars (Light purchase)

• Frequency – Bru instant coffee is purchased frequently to satisfy the compulsion of consumption amongst coffee lover.

The Market Shares

Data available as of September Quarter of Financial Year 2011

51.1% 48%

The Market Shares

Financial Express, 2011

BRU – Satisfying Wants Functional Wants – An invigorating beverage prepared instantly.

Special and innovative ‘clip-lock’ packaging to prevent coffee powder from hardening. (Refer image)

Value – Economic consumption through 1 Re. for one cup sachet

Self Image – Happiness, Celebrating moments with BRU, “Bru se hoti hai khushiya shuru”

Availability – Kirana Shops to Departmental stores in Malls. Adequately stocked too. Bru World Café in Mumbai – Developing a BRU coffee culture through branded coffee chain.

BRU – Satisfying Wants

Risk Avoidance – Availability of economic sachets avoids the risk of having to discard the product on a larger scale if expectation is not met. Hence there is no risk of high loss of value.

Satisfying Functional Want – The innovate ‘clip-lock’ packaging for BRU’s instant

coffee powder.

BRU & Nescafe’ – Points of Differences

Packaging – BRU has innovated in the packaging of its instant coffee by introducing the powder in ‘clip-lock’ packets. It also introduced an air-tight plastic container which carried a packet of instant coffee powder. Nescafe’ on the other hand has by and large has stuck to its glass jar for packaging purposes.

USP – Nestle – 100% pure instant coffee BRU - No.1 coffee brand in India

Flavours – One of BRU’s more recent variant in instant coffee is ‘BRU Lite’ – specially introduced with a classic Mocha flavour for those who dislike coffee because of its bitter taste. This gives BRU an advantage over Nescafe’ which has largely stuck to its traditional flavour.

Influence of Pricing

Though Nescafe’ is priced a tad bit higher than BRU, it does not necessarily provide BRU a differential advantage. This is because coffee enjoys inelastic demand in the market. Slight change in price does not affect the consumption patterns.

Moreoever, because the TG is the middle and upper middle class, a slightly lower price does little to change the brand preference of the Target Market.

Advertising and IMC – Who is BRU?

Projected Brand Personality – Messenger of a Happy News

Projected Brand Personality – Mood enhancer and catalyst for stimulating conversations

Meanwhile…

Nescafe’ Projected Brand Personality – Dependable – Always a part of the better plan

Branding Through Online Conversations

Being a ‘Coffee Educator’

Revitalizing Brand Personality

Rising stars of Bollywood have been roped in as endorsers. BRU is infusing some youth in its own personality.

BRU’s Takiyakalam

• Its famous taglines are – “Bru se hothi hai khushiya shuru” (Happiness begins with BRU)

- “Ek cup BRU, aur mood bann jaye” (Just a single cup of BRU for a good mood)

Thank You

and Happy Coffeeing!