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BRU World Café: Brand Extension Analysis
BRU World Café: Brand Extension Analysis
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources
Market Share Data
Exhibit 2: Hindustan Lever, with its BRU brand, has maintained a steady market share
of c. 31% over the last 5 years.
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources
Category Growth from 2009-14
Exhibit 3: Coffee sales have shown an impressive growth of 6.3% CAGR between 2009-14
in volume terms and 17.5% CAGR in value terms.
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2009-2014
% volume growth 2013/14 2009-14 CAGR 2009/14 Total
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources
BRU World Café – 4 Ps
Product
Promotion
4 P’s Price
Place
Product
• BRU World Cafe outlets offer the true tastes of coffee from around the
world, in an atmosphere that is so refreshing that it gives a feel of their
origins.
• BRU World Cafe is purely about premium coffee and the experience of
having it in the most authentic way possible.
• Ranging from cakes to exotic coffees, BRU World Café's detailed coffee
menu exhibits that BRU World Café is a means to an original and exotic
selection of coffee brews from around the world.
• Bru World Café outlets are currently operating only in Mumbai as a pilot;
however the company plans to soon expand nationwide to tap the
growing trend of outside-home coffee consumption by the growing urban
population.
• The menu at BWC offers a range of coffees sourced from around the world
and brewed in styles ranging from Turkish to South Indian Filter coffee –
complete with matching traditional crockery.
Price
• HUL has adopted competitive pricing for its café offering. While the prices
are not the highest in the premium coffee segment, the pricing has also
not aimed to undercut the competitors. The company wishes to
communicate the BWC range as a premium offering and hence is not
targeting penetrative pricing, instead relying on product differentiation to
justify the premium price.
• HUL aims to penetrate the high end coffee market and out-of-home coffee
consumption segment through its Bru World Café outlets.
• BWC was launched to compete with giants such as Starbucks and Café
Coffee Day, thus the price of the beverages and savories at BWC are priced
in the premium range with prices comparable Starbucks coffee.
• Prices start at Rs. 79 for a filter coffee and go up to Rs. 139 for its Hot
beverage
Place
• Bru World Café outlets are currently operating in the city of
Mumbai as a pilot run.
Low High
price
Starbucks
Costa Coffee
Café Coffee Day
Barista
Low
Bru World Café
References
• http://www.brucoffee.in/World_Cafe.aspx
• http://www.moneycontrol.com/news/business/hul-brews-plan-to-open-
coffee-shop_527545.html
• http://www.moneycontrol.com/news/special-videos/whats-brewing-
hindustan-unilever-opens-three-cafes_529105.html
• http://www.thehindubusinessline.com/catalyst/bruing-a-premium-
market/article2473379.ece
• http://fcbulkacomstrat.in/pastcases/case_study_2011.docx
• http://www.hul.co.in/brands-in-action/detail/Bru/303748/
• Further, information has been researched from past HUL Annual Reports,
Investor Presentations and Earnings Call Transcripts
Prof. Sameer Mathur
Indian Institute of Management, Lucknow
Marketing Professor: August 2013 – Present
McGill University
Marketing Professor: July 2009 – July 2013