A presentation on the Segmentation, Targeting and Positioning (STP) strategy of BRU Coffee in comparison to Nescafe' in India

1. Marketing II Assignment on STP
• Batch - 2014
• Course Code - 50121308
• Course Name – Marketing II
• Roll No. – 720
• Assignment No. – A 307

2. 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.

3. Choice of FMCG

4. 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

5. • 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

6. • 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.

7. 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.

9. 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.

10. • 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.

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

12. • 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.

13. 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.

14. The 3 new flavours in the form of Bru Exotica

15. • 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.

16. • 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

17. 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.

18. 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.”

19. • 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.

20. 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.

21. PackageBenefits
Price
Economic
Mass
Market
Premium
Market
VEL
Nescafe
Bru
Perceptual Mapping of Bru (against Nescafe)

22. 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.

23. Recap
• Segmentation – Coffee drinkers seeking for instant
preparation
• Targeting – Upper and Middle Class
• Positioning – Sharing warmth, love and care through
coffee