Marketing II Assignment on STP

• Batch - 2014

• Course Code - 50121308

• Course Name – Marketing II

• Roll No. – 720

• Assignment No. – A 307

Understanding STP• (Market) Segmentation - Segmentation of markets into

homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix.

• Target (Market) - Market segment to which a particular good or service is marketed.

• Positioning - Positioning is a platform for the brand. It facilitates the brand to get through to the mind of the target consumer.

Choice of FMCG

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

• Bru has created and distributed an array of unique high-quality coffee blends since 1968.

• 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%

• Bru has established its own coffee-shop chain in Mumbai

• Bru’s growth rate is 25.6%

• In 2011, BRU Lite, a light-tasting coffee with classic Mocha flavour, was launched for people who avoid coffee because of its bitter taste.

• In the same year BRU Exotica was launched which is premium freeze dried coffee sourced from some of the world’s best coffee-producing regions like Colombia, Brazil and Kilimanjaro. Later, in the same year, BRU Gold - a 100% pure granulated coffee with an uplifting aroma and superior taste - was launched.

Segmentation• 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.

Inference

• The instant coffee industry is relatively new to India. Traditionally, coffee beans were ground, roasted and then prepared into coffee drink.

• An analysis of this segment can help us understand that this segment has been reached by bifurcating the population on Psychographic and Behavioural basis.

• Psychographic – Consumers opting for instant drinks believe in quick preparation of their coffee. They are independent people who prefer to prepare coffee at their own time and convenience without assistance.

- They are ready to digress from their traditional practices and are willing to have an open-minded attitude and approach towards packaged instant coffee.

Film Actor ‘Amrita Rao’ in one of the earliest Bru TV Commercials

• Behavioural – Segmentation on these lines holds true for Bru because it faces immense competition from Nescafe.

- Because Nescafe is also entrenched deep into the beverages market, Bru will have to target to Brand ‘switchers’ who are willing to try a substitute to Nescafe.

Target Market• The Target Market for Bru coffee is decided on the basis of

income levels.

• Hence, the target market of Bru is – People in the Upper and Middle class

• For people to switch from traditional coffee to instant coffee, it’s important to ensure that the consumers are able to afford the extra price. Moreover, these are the people who are willing to shell a few more Rupees to save time and effort.

The 3 new flavours in the form of Bru Exotica

• More interestingly, with the introduction of Bru Exotica, it has further entered the market of premium range of coffee.

• This premium range is for well-travelled Indian who appreciate International flavours.

• Flavours from Brazil, Colombia and Kilimanjaro are provided for prices ranging from Rs.150 for 50 grams for the flavour of Brazil and upto Rs. 300 from Kilimanjaro.

• The Target Market for Bru coffee can further be narrowed down to –

- Independent students wanting to make coffee without assistance

- Working women who can make coffee instantly for their husbands before leaving for work

- Late night workers who need an external stimulant in the form of coffee to help them stay awake

Bru increased its foothold in the market with the introduction of beneficial and innovative packaging. Such packaging locked aroma and flavour, thus preserving the

instant coffee for longer.

Positioning• Bru coffee has positioned itself as a beverage that invokes a sense

of warmth, love, happiness and good spirits between people, especially loved ones.

• Its famous taglines are – ‘Bru se hothi hai khushiya shuru’ (Happiness begins with Bru) and

-‘Ek cup Bru, aur mood bann jaye’ (Just a single cup of Bru for a good mood)

• Bru’s philosophy is – “Livening-up every moment by stimulating conversations.”

• Its famous advertisements lay emphasis on romantic relationships.

• They suggest that a single cup of invigorating Bru coffee can lead to a heightened sense of care, consideration and love for the special person in your life.

• Hence the emotions invoked to capture the minds of consumers are – Love, Happiness, Rejuvenated mood, Care and provides a sensory simulation.

Celebrities Priyanka Chopra and Shahid Kapur in a recent Bru Ad. The use of the then off-screen couples clearly romanticized the concept of drinking Bru coffee,

positioning it as catalyst of romance and love.

Pack

age

Ben

efits

Price

Economic

Mass Market

Premium Market

VEL

Nescafe

Bru

Perceptual Mapping of Bru (against Nescafe)

Inference• The Perceptual Mapping of Bru has been graphed using two

relevant parameters – Package Benefits and the Price

• Bru certainly has a clear advantage over Nescafe because of its recent innovative packaging like zipper pouches, aroma-lock package, Mini-packs and so on.

• The price of Bru however remains lower than that of Nescafe. (For instance, 50 gm. of Bru Instant Coffee is priced at Rs. 70 against Nescafe’ at Rs. 90)

• With greater aroma, taste and preservation, Bru is above the Value Equivalence Line (VEL) in the Mass Market Segment providing better package for lower price.

Recap

• Segmentation – Coffee drinkers seeking for instant preparation

• Targeting – Upper and Middle Class

• Positioning – Sharing warmth, love and care through coffee