1.

Collect company details such as market share, growth trend,

product mix(L,W,D,SKUs) and other details

COFFEE INDUSTRY - INDIA

Coffee Production

Others
8%
Tamil Nadu
11%

Karnataka
53%
Kerela
28%

 Production in India: Most of it comes from Southern India

1
 Coffee segment amounts to $808m and is expected to grow annually by 8.9% CAGR in 2020-
2025
 Retail market is dominated by 2 brands:
1) Nestle’s Nescafe
2) HUL’s Bru
 Target market:
1) Nescafe – Youth Oriented
2) Bru – Family Oriented

Geographical Consumption Pattern

Urban
27%
Rural

73%

 Consumption pattern: Consumption of Instant coffee is dominant in North, East and West zone
of India in while consumption of Filter coffee is dominant in South zone of India
 Innovations in Industry: Ready to drink coffee, which can be consumed on the go

OVERVIEW

NESCAFE – BRAND OVERVIEW

 Nescafe entered India in the year 1963

 World’s first commercial instant coffee
 Sold in more than 182 countries across the globe
 More than 5000 cups of Nescafe coffee are being consumed every second around the world
 Company trains coffee farmers to develop their agricultural practices in terms of quality,
productivity and sustainability while supporting them in obtaining 4C (Common Code for the
Coffee Community) certification for better coffee prices. The NESCAFE Plan sets out to exert
a positive and sustained change in:

1) The livelihood of coffee farmers, their families and farm workers.

2) The resilience and prosperity of farming communities and the stakeholders across our

2
 value chain.
3) The sustainable management of landscapes linked to our value chain.

BRU – BRAND OVERVIEW

 Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company
with a heritage of over 80 years in India and touches the lives of two out of three Indians.
 Bru is the Hindustan Unilever’s only coffee brand
 Brooke Bond Green Label was introduced in India in the year if 1962 as India’s first branded
filter coffee
 The brand is known for offering authentic coffee from the south plantation of the India
 The launch of cappuccino by Bru in 2007, brought a evolutionary change targeting the
younger generation.
 Bru Instant, which was launched in 1968 is India’s first coffee-chicory mix instant coffee.
 Bru world coffee outlet was launched in Mumbai was launched in 2011.
 Following can be said to as main reason for wuccess of Bru

o Innovation in new products

o Innovation in packaging

o Aggressive campaigns

o Available in various sizes in form of 1 gm ,2 gm sachets' etc.

o Coffee Vending Machines available at various places.

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 5-Year Analysis

NESCAFE – Past 5-Year Analysis

Year Moves
2016  NESCAFÉ SUNRISE INSTA-FILTER was introduced as part of your Company's focus into differentiated
products. This revolutionary new coffee offers the authentic South Indian Filter Coffee Taste in an instant
 Brand NESCAFÉ continued building its connect with the. NESCAFÉ Labs created impact with its mega
challenge events and with ground events at various colleges all over India.
 NESCAFÉ SUNRISE was also renovated with a superior taste.
 Launched NESCAFÉ Ready-to-Drink range.
 The New NESCAFÉ Solution machine continued to perform well in the business and industry channels.
 The entire range of coffees pre-mixes for hot and cold machines, were renovated by your Company and
NESTEA Masala Gold tea premix was successfully launched.
 anti-counterfeit packaging on bigger NESCAFÉ soft packs, to address issues related to packaging.

2017  NESCAFÉ Classic further leveraged it’s connect with the youth and launched a number of initiatives and
activations. Digital media was extensively used when engaging with the target audience.

2018  Company ventured into personal coffee machines with the launch of NESCAFÉ É, a smart app enabled coffee
machine.
 Company launched Ready-To-Drink Coffee in can format, under iconic youth brand of NESCAFÉ.
 NESCAFÉ Classic leveraged its connect with the youth and launched a number of initiatives and activations.
The brand also reached out to the youth by experiential coffee sampling at colleges and consumer touch
points across several cities
 NESCAFÉ SUNRISE continued its journey of driving brand differentiation in South India.
 The premiumisation journey was accelerated with the relaunch of NESCAFÉ Gold.

2019  To provide a delightful café-like coffee experience, Company renovated NESCAFÉ Cappuccino range with an
indulgent frothy recipe and a premium look.
 NESCAFÉ also launched several packs to leverage the e-commerce channel. These packs included trendy
merchandise like NESCAFÉ branded portable travel flask, foamer, the iconic red mug, a special cold coffee
mason jar to elevate the coffee experience of the consumers and build relevance for coffee.
 On-ground, activations such as sampling and college festivals enabled the brand to connect with youth in a
relevant and experiential manner.
 The launch of new NESCAFÉ Office corner, with premium hot and cold beverages at affordable prices, was
recognized as a unique proposition in the industry.

2020  Company delivered strong performance in the e-commerce channel, due to rise in in-home consumption.
 NESCAFÉ SUNRISE moved ahead in its journey of driving a differentiated brand in the core coffee market in
the southern part of India. Along with brand building initiatives, it activated sampling coffee to frontline
warriors to extend support in the difficult times.
 NESCAFÉ accelerated its premiumization journey, building on the promise of delivering coffee at its best with
NESCAFÉ Gold. As more and more people stayed indoors, there was a need for in-home indulgences. With
exciting coffee recipes and product solutions, NESCAFÉ Gold helped consumers create a café like experience

4
 at home, resulting in strong growth.

BRU – Past 5-Year Analysis

Years Moves

2017

 Coffee continued on its premiumisation agenda with BRU.

 Strong growth was seen in BRU led by the instant coffee franchise.

 The pure coffee franchise of BRU Gold continued to lead category premiumisation.

 Development of overseas markets by driving distribution of Bru to effectively provide cross-b

sourcing.

2018

 Coffee continued its premiumisation initiatives with BRU.

 Bru delivered strong and volume-led growth.

 New variant of Bru Coffee was launched in selected geographies.

 Company launched Beaten coffee in Out of Home vending channel.

 Company continued the development of overseas markets by driving distribution of Bru to effe
provide cross-border sourcing.

2019

 New variant of BRU coffee was launched in selected geographies

 It continues to leverage state-of the-art roasting and extraction technologies to deliver superior i
coffee products.

 Company continued the beaten coffee in Out of Home vending channel.

 Company continued the development of overseas markets by driving distribution of Bru to effe
provide cross-border sourcing.

2020

 BRU Green Label Nice was launched in South Karnataka which was specifically tailored to the ne

5
 conventional coffee consumers in the region.

 BRU was recognised as the top Beverage brand in India at the Marquees 2019.

 Company continued the development of overseas markets by driving distribution of Bru to effe
provide cross-border sourcing.

2021

 New natural variant of Bru coffee called “Bru Veda” was launched.

 Company continued the development of overseas markets by driving distribution of Bru to effe
provide cross-border sourcing.

PRODUCT MIX

Nestle Product Mix

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 NESTLE

Chocolates
Breakfast Vending and
Beverages and Diary Nutrition Food
Cereals Food Service
Confectionary

Maggie 2
Nestle Nestle Nestle
Nescafe Koko Crunch Bar One Minutes
Milkmaid Nangrow Professional
Noodles

NesPlus Nestle
Nescafe Classic Kitkat Nestle A+ Maggie Sauces
Crunchy flakes Lactogrow

NesPlus
Nescafe Nestle
Crunchy Munch Maggie Fusion
Sunrise Ceregrow
Granola

Maggie
NEscafe Latte Milkybar Masala-e-
magic

NesTea Maggie Cuppa

Nescafe Gold Maggie Pazzta

Nescafe Product Mix

7
 NESCAFE

Coffee Beans Coffee Mix Ready to Drink Coffee Machine

NESCAFÉ Gold NESCAFÉ Intense

NESCAFÉ Classic É by Nescafe
Cappuccino Can

NESCAFÉ Gold NESCAFÉ Chilled

NESCAFÉ Gold
Choco Mocha Latte

NESCAFÉ Gold NESCAFÉ Gold NESCAFÉ Intense

Decaf Caramel Latte Café

NESCAFÉ Sunrise NESCAFÉ Hazelnut

NESCAFÉ Sunrise
Premium Liquid NESCAFÉ Hazelnut
Decoction

PRODUCT HIREARCHY

Product Logo

Nescafe Gold
Product Family Beverages
Product Class Coffee
Product Type Jar, Packet
Product Brand Nescafe
Product Item 50gm, 85gm, 100 gm, 190 gm, 200gm, 136gm

HUL Product Mix

8
 HUL

Food and
Beauty and Home
Refreshme
Personal Care Care
nt

Soaps Shampoos Beauty Tea Coffee Icecream Food Soups Surf Excel

HellMan's
Dove Sunsilk Lakme Lipton Bru Breyers Knorr Vim
Mayo

Glow &
Lux Clinic Plus Pure Leaf Cornetto Cup A Soup Rin
Lovely

Lifeboy Ponds TajMahal Heartbrand Wheel

Peers Vaseline BrookeBond Magnum Domex

BRU PRODUCT MIX

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 BRU

Instant Coffee Filter Coffee Coffee Beans Out of Home

Bru Green Vending

Bru Instant Bru Beans
Label Solutions

Bru Roasted
Bru Gold Bru Select
Coffee Beans

Bru Instant Bru Roast and

Super Strong Ground

Bru Pure

Bru Original

Bru Instant
Coffee Premix

Bru Low sugar

Coffee Premix

PRODUCT HIRERARCHY

Product Logo

Bru Instant
Product Family Refreshments
Product Class Coffee
Product Type Sachets, Jar, Packet
Product Brand Bru
Product Item 10gm, 50gm, 100 gm, 200gm, 500gm, 1kg

4P ANALYSIS

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 NESCAFE GOLD

1) PRODUCT
 Nescafe Gold has huge set of products
 Nescafe gold is manufactured by considering the demographic and psychological
need
 Nescafe Gold has augmented features differentiating it with other products

2) PLACE
 Nescafe uses the intensive distribution strategy to make it products available in all
distribution channel.
 They place their low-price packs in the rural area.
 Coffee Shops at different places targeting different age group and income level.
 Nescafe is more popular in northern and southern part of the country and in the
northern mostly for its product Nescafe Classic
 They also place various vending machines at different places like college, office and
departmental stores so they can provide their consumer with location convenience.

3) PROMOTION
 Nescafe uses several channels for promoting its product, their strategy is to make
consumers feel the desire for ownership and to spur action
 Its advertisement always tries to create an intimate relationship with the audience
and are tailored in such a way that the target audience that is millennials always
could relate to it.
 In print, Nescafe goes for publishing in the national newspapers like times of India
and the Hindu but usually backs out of regional newspapers.
 In stores, while promoting products Nescafe uses giveaways and free samples, when
purchasing its premium products and usually has a separate sales executive assigned
to help customers.
 In social media, the brand has a huge fan following on Facebook it has about 35M
followers, it engages with its users via web videos campaign like “Really Friends”
always insisting their brand gets people together.

4) PRICE

 Nescafe follows premium pricing strategy for its ‘GOLD’ brand differentiating it from
its regular ‘CLASSIC’ brand
 Nescafe aims to create a perceived value in the minds of the consumer of Nescafe
GOLD being a premium product
 Higher quality ingredients and premium packaging makes its cost price more than
the regular Nescafe Classic
 Product line pricing if followed with price set in proportion to the size of the serving
offered

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BRU INSTANT

1. PRODUCT
 Bru is the leading coffee brand in India and offers wide range of coffee product.
 Countless coffee trials are done to select best beans and roasted to serve rich fresh
cup of coffee.

2. PLACE
 Bru Instant coffee is the strong player in Indian Market
 It has very good distribution channel which includes intensive distribution which
makes sure that it reaches to every customer.
 Bru Instant Coffees can be easily found at department stores, convenience stores,
supermarkets and has tie-ups with few cafes too.

3. PROMOTION
 Bru Instant has set the high standards of advertising.
 The company has brought several innovative products along with packaging focused
around the aroma-lock, mini packs, jars which increased the shelf life and has locked
the flavour and aroma.
 Some of the famous taglines of Bru are “Bru se hoti hain khushiyaan shuru”, “Ek cup
Bru, aur mood bann jaye”
 The below advertisement picture shows the advertising strategy of bru by

connecting loved one’s

 Promotions were made with celebrities like Priyanka Chopra, Shahid Kapoor , Kajal
Aggarwal

4. PRICE
 The Pricing is always reasonable for all bru products making it affordable for all class
of people.

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  Bru Instant has introduced product with different volumes like single serve packs,
medium packs, economic packs.
 The company has followed competitive pricing policy resulting in high customer base
and hence high sales and higher profit margins.
SWOT ANALYSIS
NESCAFE GOLD - SWOT
STRENGTHS
 Strong parent company - Nestle
(Strong player in FMCG)
 Strong brand equity – Largest
coffee brand in the world
 Economies of Scale – Enormous
resources at disposal
 Excellent advertising and visibility
OPPORTUNITIES
 Coffee consumption in India is in
High growth phase
 Increasing adoption of coffee
among youth and in urban areas
 Increased acceptability of higher
priced premium coffee
 Increased adoption of coffee in
Corporates
BRU INSTANT– SWOT
STRENGTH
 Strong Parent Company –
Hindustan Unilever Limited
 Bru instant has strong brand name
in the market
 Competitive Pricing Strategy – Price
is lower than its major competitor
Nescafe
 Packaging that locks Aroma of the
WEAKNESS
 Growing awareness about ill-effects
of consumption of caffeine
 Indirect competition – Tea, Soft
Drink, aerated drinks
THREATS
 Competition with HUL’s Bru which
has almost similar market share
 New entrants in TATA Coffee, ITC
Sun bean
 Health-conscious people avoid
consumption of coffee
WEAKNESS
 Growing awareness about ill-
effects of consumption of caffeine
 Indirect competition – Tea, Soft
Drink, aerated drinks
 The number of coffee outlets and
the vending machines are less
than its major competitor Nescafe
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 coffee for longer duration
 Wide range of product Line and
product mix
 Efficient distribution Channel and
easy availability

OPPORTUNITY THREAT

 Increasing in the Coffee  The reduced price by bru in the name

consumption in India has paved for of competitive pricing might reduce
highest growth potential. the profit.
 Being the cheaper packets bru can  Belief that increase coffee
penetrate to rural areas and start consumption is not good for health
targeting the below poverty line  Strong Competition from brands like
people. Tata, Nescafe
 Tie-ups with corporates
 The Market research analysts at
Technavio predict that the global
roast and ground coffee market will
grow at a CAGR of around 6% by
2021, bru can do a lot with this
market

STP ANALYSIS

Nescafe Gold– STP

Segment The market is segmented on the basis of

 Geographic - Nescafe segment the cities according to the size of
population, urban and sub urban
 Demographic- Nescafe has tried to cover all the variables of the
demographics but they mainly focus on age group and income
 Psychographic – This segmentation is done on the basis of social
class, lifestyle and personality
 Behavioural – This is done on the basis of benefits of product, user
status, user rate and purchase occasion.

Target Group  Target premium segment

 Young adult who are outgoing and likes to drink coffee
 People who want to have instant and qualified coffee that
stimulates body within a day
 Targets Southern and Northern regions
Positioning  Nescafe from a long time advertised and placed the coffee as a
winter product

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  User product differentiation based on image differentiation to gain
competitive advantage

BRU Instant– STP

Segment  Geographic Segmentation: Preferred

mostly in Southern India

 Demographic Segmentation: Middle and

Upper Middle Class

 Behavioural Segmentation: People looking

to make coffee instantly and are brand
loyal
Target Group  All people in the upper and middle class

 The middle aged people

Positioning  Bru Instant has positioned itself as the

symbol of love, happiness, warmth.

 The famous tagline like “Bru se hoti hain

khushiyaan shuru” gives the mirror on its
positioning

MARKET SHARE AND GROWTH TREND

Nescafe Growth Over the Years

 Nescafe started in Switzerland in1938 as a Soluble Coffee Powder to Solve the problem of
excess coffee production in Brazil.
 Nescafe entered in India in 1963 with the promise of hot cup of coffee in 5 second
 In 2007 Nescafe had strong competition from bru where it lost 7 percent of market share to
bru.
 In 2010 a mega campaign was launched ‘Know Your Neighbour’ to regain market share.
 To match south Indian filter coffee Nescafe launched ‘Nescafe Sunrise Rich Mountain Blend’
in 2010.
 In 2011 the digital page ‘Know Your Neighbours’ became popular with 3.5 lakhs fans.
 In 2012 Nescafe Facebook Fan page have 2.2 million fans became the most popular page.
 In 2012 foaming mixes of Cappuccino, Vanilla Latte and Choco mocha is introduced to attract
youth as a part of mega campaign.
 Sunrise Strong was launched especially targeting people of Andhra Pradesh in 2012.
 In 2014 Nescafe started came up with new tagline ‘It All Starts with Nescafe’ as a part of
global repositioning exercise ‘Redvolution’.

15
  Nescafe Red Cup became popular after ‘Redvolution’.
 In 2016 Nescafe launched ‘Sunrise Insta Filter’ with authentic south Indian Filter coffee taste.
 In 2017 a new campaign started with tagline ‘Badal Life Ki Raftar’.
 In 2017 Nescafe Gold was relaunched to serve customers of evolved taste.
 In 2020 post covid a new campaign with tagline ‘karne se hi hona h’ started trending.

Please find below market share of Nescafe till 2016

Source-Euromonitor

Current Market share of leading coffee brand

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 Source-Euromonitor

Bru’s Growth

 Introduced in the year 1969.

 In 2008 even it managed to push Nescafe to second position.
 Bru has dominant share of 65 % in southern market.
 In 2011 Bru’s promotion team has reached over to 15 million south Indian rural households
Increasing sales by 33%.
 In 2011 HUL emerged as a market leader in the overall coffee segment but is struggling to
enter premium brands.
 At Present it fights neck to neck with Nescafe in India.

Overall Coffee Market Growth

Global Coffee market is valued

at 102.02 billion in 2020 and is projected to reach a CAGR of 4.28% by 2026.Covid-19 boosted instant
coffee market and demand. Also, Levista a coffee brand from Karnataka grew during this period.
Instant Coffee has seen 13 % growth while fresh coffee only 7 % in 2020.Premiumization of Instant
Coffee is new trend to follow with increased focus on authentic flavor. Asia pacific is set for robust
market growth over the period of next 5 year. ‘In home Consumption’ is the future of coffee rather
than café and outside stall after work from home culture is introduced.

2. Describe the Target group/s, Participants in Buying Decisions and Their

Roles in the purchase of the brands

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Target group for BRU INSTANT and NESCAFE GOLD

 On the broader scale the target market for the coffee is:
1. Drip filter coffee drinkers
2. Coffee shop lovers
3. Speciality coffee drinkers
4. Whole bean buyer
5. Mainstream coffee drinkers
 NESCAFE GOLD
o Nescafe has different target groups for the different products which it offers.
o Premium Segment: The price of the Nescafe Gold is on the higher end, being 850
Rupees per 100 grams, targeting the premium segment.
o Young Adults: The research has revealed that among the coffee drinkers 54% are
the young adults and are willing to pay the high price for better taste and
satisfaction. These young adults are good target group for Nescafe Gold. Among the
young adult’s coffee is becoming more of a social drink entertainment, quick energy
booster.
 BRU INSTANT
o Bru instant is mainly targeted for the consumers who are opting for instant coffee
and believe in the quick preparation
o People in middle class: The price of Bru instant is 160 rupees per 100 grams,
targeting the people in middle class who can afford to spend extra penny on instant
o Working Women: Bru Instant also is targeted to cater the needs of the working
women who would need the instant sip of coffee to save their preparation time yet
energize their day.
o Family Builder: The age group of 31-60 an be considered as the family builders for
whom coffee is part of their everyday life. Coffee serves as the key need to kick start
their day or as refreshment during the day
o Senior Citizens: The consumers who are above 60 years are targeted by Bru Instant
as they have relatively more time at home with family who prefer drinking
beverages very frequently making them the heavy users.
o Lower Middle Class and Students: The Bru sachets of worth Rs.2 were introduced
targeting the lower middle class and students which wouldn’t be heavy on their
pocket yet serve the purpose.

Participants in Buying Decisions and their roles for Bru Instant and Nescafe Gold

Consumer Behaviour:

 Degree of Buyer Involvement

Nescafe Gold: Nescafe Gold is the high involvement product as it is on the higher end as it is
the premium product and expensive when compared to others. Marketing Strategy was to
target the premium segment who are willing to pay extra price for the satisfaction.

Bru Instant: Bru Instant needs the low Consumer involvement as it is not an expensive
product. It also doesn’t need extra attention and involvement to buy. Marketing Strategy of

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 Bru Instant is to target the habitual coffee drinkers and to keep the shelves full along with
the reminder advertisements.

 Degree of differences among brands

It is seen that consumers do not make heavy decision about which brand to buy. Creating
the brand familiarity is important by reminder advertisements. Drinking coffee would turn to
habit easily hence making consumers habitual buyers.

Variety Seekers are the one’s who do brand switching often to experiment with different
available coffee.

Consumers may buy bru instant being habituated by the taste because of wide availability of
the products in various size it is available, available in one time use sachets creating the
brand difference. This also attracts the Variety seekers as trail packs are available and the
advertisements.

Nescafe Gold is known for its premium taste providing the satisfaction, hence loyal customer
base comes into picture who would go for repeated purchase of the product. They can also
be classified under the habitual buyers.

Consumer buying decision process

Steps Nescafe Gold Bru Instant

1. Need Recognition:
2. Information Search:
3. Option Evaluation:
4. Purchase Decision:
5. Post Purchase
Evaluation:
Need for the premium Need for instant drink/coffee
refreshing coffee with the for regular use
right pricing and easy
availability
Search about all available Being the low involvement
coffee based on the taste, product, the information
health benefits, quality, search is limited
packaging, aroma etc
Evaluate the different The option evaluation is done
premium coffee available like on basis of good coffee
Starbucks coffee, Continental available at the time of buying
Xtra Coffee, flavours available
on basis of the criteria set by
the consumer
The purchase is made on This is again made on the easy
various factors like the taste, availability and the price range
aroma lock packaging, worth
of the product in the segment
Taste and aroma along the Taste and aroma of the coffee
satisfaction of the coffee after after consumption
consumption

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Type of buying decision criteria of the target consumers

For habitual buying behaviour,

Purchase Decision => Post purchase behaviour

The habitual buyers don’t think much while purchasing while they evaluate during the consumption.

For variety-seeking buying behaviour,

Evaluation of alternatives => Purchase Decision = > Post purchase behaviour

The Variety seekers first evaluates all the alternatives and then purchase the product. So creating
the brand awareness plays important part in buying decision for variety seeking buyers.

Participants in Buying Decision

Participants Nescafe Gold Bru Instant

The Coffee Drinkers for whom
1. Initiator the taste and satisfaction post
coffee consumption are
important
2. Influencer Advertisements, Suggestion
from friends and family, social
media
3. Decider Friends and family, health
benefits, social status
4. Buyer The Coffee Drinkers for whom
the taste and satisfaction post
coffee consumption are
important
5. User The Coffee Drinkers for whom
the taste and satisfaction post
coffee consumption are
important
Habitual Coffee drinker who
are price sensitive
Advertisements, Easy
availability, Price Sensitiveness
The availability of the product
at the time of buying for the
initiator
Habitual Coffee drinker who
are price sensitive
Habitual Coffee drinker who
are price sensitive

3. What are the PODs and POP of chosen brands within this category
POD & POP

Point Of Difference Point Of Parity

Nescafe Gold 1.Rich and Smooth Coffee taste. 1.Basic Characteristics such as
2.Rich Aroma.  Mouthfeel
3.Crafted with Handpicked Arabica and  Caffeine content
Robusta Coffee beans.  Acidity and flavor
4.Finest coffee available compared to all  aroma
other range.

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 5.Roasted to bring its natural flavor. 2.Prepared using traditional and
6.Nescafe Gold Decaf provides Caffeine authentic method
free experience.
7.Nescafe Gold Crema to provide more 3.100 % pure coffee
refined and silkier taste.
8.Responsibly grown through sustainable 4.Comes majorly in 50 or 100 gm pack
farming practices. and usually not available in very small
9.Premium quality Coffee sashay
10.Packaged in Glass jar with attractive
packaging. 5.Authentic taste of Coffee is
11.Grown in Vietnam, Brazil and Central preserved.
America
Bru Instant 1.India’s first coffee chickory mix instant 1.Basic Characteristics such as
coffee.  Mouthfeel
 Caffeine content
2.Fresh Coffee taste and aroma is  Acidity and flavor
preserved.  Aroma
2.Prepared using traditional and
3.Best Coffee experience instantly. authentic method
3.Medium Strength Coffee
4.Makes both hot and cold coffee. 4.Available in very small sashay as well
as large packaging
5.Healthy Low-Calorie beverage 5.Grown in South India
6.Contains less caffeine than regular
6.Made with Freshly roasted Coffee coffee
beans 7.Long Shelf life
8.Finely powdered coffee

Few Points are quite evident from above table

1.Nescafe Gold like any other premium coffee gives authentic 100 % pure coffee prepared using
traditional and authentic method ensuring appropriate caffeine content, aroma flavor and
mouthfeel while adding many differentiating points such as:-

 Attractive Glass jar packaging

 Providing Nescafe Gold Decaf and Nescafe Gold Crema option to ensure less caffeine and
refined and silkier taste.
 10 times finer when compared to other
 Sustainability concept such as responsible management is well applied.
 Ensuring premium quality coffee bans from farms of Vietnam, Brazil and central America.

Thus, Nescafe Gold not only ensures its premium taste but also ensures its practices are sustainable
maintain superior quality of raw materials.

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2.Bru Instant Like any other medium strength coffee contains less caffeine and have longer shelf life
and is finely powdered for ready to prepare mix ensuring basic characteristics of mouthfeel flavor
and aroma available in very small sashay as well while differentiating from others in below
mentioned ways:

 Ensures Healthy Low-Calorie beverage.

 Fresh Coffee taste and aroma with best experience instantly
 Coffee chickory mix ensures less caffeine.

Thus, Bru Instant serve its purpose of providing refreshing coffee quickly ensuring good health.

4. Pricing strategy adopted for the chosen brands

Coffee Industry Pricing

 Instant coffee market in India is Oligopolistic with few market players without absolute
dominance
 In general, Product line pricing is followed in which price is set according to the product quality
and in proportion to the size of the serving offered

Nescafe Gold Pricing Structure: -

Nescafe gold blend instant 50g Rs290

coffee
Nescafe gold blend instant 100g Rs450
coffee
Nescafe gold blend instant 200g Rs850
coffee
Nescafe Gold Rich and Smooth 100g Rs450
Arabica Coffee Instant Coffee
Nescafe Gold Rich and Smooth 200g Rs700
Arabica Coffee Instant Coffee
Nescafe gold blend instant 100g Rs600
coffee Decaf
Nescafe gold blend instant 200g Rs1200
coffee Decaf
Nescafe Gold Decaf Rich and 100g Rs750
Smooth Arabica Coffee Instant
Coffee
Nescafe Gold Blend Ground 200g Rs750
Coffee Roast & Ground Coffee
Nescafe Gold Origins Indonesian 100g Rs800
Sumatra Instant Coffee Instant
Coffee
Nescafe Gold Origins Cap 100g Rs800
Colombia Coffee Instant Coffee
Nescafe Gold Origins Uganda 100g Rs800

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 Kenya Coffee Instant Coffee

As we can see, Nescafe Gold, priced at a premium over Classic, serves the discerning consumer with
a more prosperous and smoother experience.

Bru Instant Pricing Structure: -

BRU Instant Coffee 100g Rs170

BRU Instant Coffee 200g Rs290
BRU Instant Coffee 10g Sachet Rs10

 They have followed a penetration strategy for most of its variants to give a tough competition to
Nescafe and gather more market share
 They have wisely kept the price of sachets low in order to entice the customers to try a new
variants

Pricing Strategy Comparison: -

Strategy Nescafe GOLD Bru Instant

Selecting Pricing objective
Determine the demand
Selecting pricing method
Selecting final price
Product quality Leadership
Youth and Upper middle class
Perceived Value (Companies
should deliver valued promise
by their value proposition and
the customer must perceive
this value)
Premium Pricing
Maximizing market share
Across all segments
Deliver Value (Companies win
loyal customer by charging a
low price for a high-quality
offering)
Penetrative pricing

5.What are the channels (place) used for selling these brands
Channels of Nescafe Gold and Bru Instant

Channels Partners of Nestle Nescafe:

Distribution Centres- These distribution centres are usually company owned warehouse with
specialized building, refrigerator and air condition where Nescafe and other Nestle owned products
are stored for further distribution

Types of distribution centres

1- Retail distribution Centres- who distribute products to retailer

2- Cross Dock Facility – They don’t stock the product but distribute it
3- Order fulfilment centres – They distribute products directly to consumer
4- Super Stockiest – There is separate super stockist in every district and they are provided so
that they can pass on the product to next channel
5- Wholesaler- They buy the product in bulk and store the product for longer period and sell
the products in small quantities later

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 6- Retailers- Retailer sell the products directly to the consumer they can be Kirana Stores,
Hypermarket, Big Bazar and Supermarkets

Nescafe Gold

Nestle uses intensive distribution strategy which means they put their products in as many outlets as
possible to provide the customer with location convenience. Nestle Nescafe use dual distribution
channels to reach its customer which means company uses two approaches simultaneously to reach
its customer depending on the areas of operations and available resources. The two types of product
channels for the distribution of the Nescafe Coffee are

Part A

Distribution Super
Wholesaler Retailer Consumer
Centres Stockist

In above diagram we can see the movement of products these retailers are traditional retailers or
Kirana Stores. This structure is more successful in unorganized markets

Part B

Distribution
Retailers Consumers
Channels

In the above diagram the movement of product is done from distribution from where retailers like
Hypermarket buys the product in bulk and they are provided with company’s discount and this
reduce the cost of distribution to company. This structure is more successful in modern trade.

Channels Partners of HUL Bru Instant

HUL has always benefitted for the wide network of distribution than any other company present in
India but they still never stop reinventing for having advantage in every sector they have the
competitive advantage but now they are working towards Point of Parity, through brand message
and experiencing their brand for consumers.

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 1. Manufacturing Units – Product was supplied through manufacturing units
2. Carry and Forwarding as Buffer stocks points- The C&F agents act as buffer points to ensure
that stock outs don’t happens and they also help in reduction of cost on direct
transportation and time lags in delivery.
3. Redistributors- They collect the stocks from the C&F agents which is later distributed among
Wholesalers, Urban retailers and rural retailers.
4. Wholesaler- Are those who buy the products in bulk and distribute the products to urban
retailers.
5. Urban Retailers- Urban retailers supplies their products from redistributors and wholesaler,
later they sell it to end consumers in urban area
6. Rural Retailers- Rural retailers supplies their products from redistributors and later on supply
to end consumers.

6. What are the communication medium (Promotion) for these brands

BRU INSTANT and NESCAFE GOLD

Nescafe Gold

Nescafe uses several channels for promoting its product, their strategy is to make consumers feel the
desire for ownership and to spur action, The advertisement of Nescafe is very innovative in nature and
their focus is always on customer loyalty, Quality assurance and fulfilling expectations.
Nescafe uses the youth appeal by having a youthful boy or girl having coffee using a ‘Nescafe branded
mug’. Their emphasis on the logo shows us their priority to become a part of identity they achieve, that is
why they never change the logo and always feature the famous red mug in their adverts. Let’s look at its
flagship product Nescafe Gold:

Advertisements:

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https://www.youtube.com/watch?v=04olB9MPGyk&ab_channel=NESCAF%C3%89India

‘For the movements that matter’

“For the people we meet only some will become special to us, stay close” this is the only phrase used by
the narrator in the whole advertisement which gives us a clear view of their messaging, they are equating
premium to special, their placing Nescafe gold as a personal choice giving audience a feel of intimacy,
evidently this video has got 58 million views with comments ranging from “the only ad I ever searched” to
“20 years of Nescafe gold”. Also, the ad features a young millennial trying to connect with the important
people in his life, this shows Nescafe’s intentions to be viewed as a young people’s brand

https://www.youtube.com/watch?v=u1whG-9BjsQ&ab_channel=NESCAF%C3%89India

#ItAllStarts

This advertisement is specially made for Indian audience where a millennial, who stutters is trying his shot
at stand-up comedy in Hindi, Nescafé’s mark doesn’t miss when the protagonist starts talking about how
his day starts and how old people look at his problem, his friends perception and strangers view, credit
should be given in the decision where the protagonists chooses his daily life and chores as the topic for his
stand-up, because he slowly nears the end with thanking (Nescafé-subtly by the use of the red mug) coffee
for getting him going and finally concludes with the line “Let’s get Started” by doing this the audience are
left with a good feeling (because of the joke) relatable(because of the age of protagonist also discussing
millennial problems) relationship with brand( because audience notice red mug and the jingle) gives an
urgency to buy with the line “Let’s get Started”.

In conclusion Nescafe’s adverts always are focused on relatability, being synonyms with quality and always
trying to be an intimate part of a person’s life, this works beautifully because of their target audience being
Millennials and Gen Z.

Print:

Nescafe goes for publishing in the national newspapers like times of India and the Hindu but usually backs

out of regional newspapers here is an example:

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By taking up a national newspaper Nescafe gets its target audiences attention but by adding a social
message it gets their business again reason being their ads being creative, relatable and socially conscious
we saw the same with the above ad about a stuttering stand-up comedian

Malls:

Nescafe opens small coffee places only in malls and theatres like INOX or PVR, because it can get visibility
for its target audience and placing itself as a premium brand.

In store display and promotion:

1. While promoting products Nescafe uses giveaways and free samples, when purchasing its
premium products. For example, they promote a self-liquidating promotion where consumers are
asked to buy a Nescafe gold and get the Nesquik sachet pack as a discount.
2. In major retail stores, Nescafe has its own corner where all its related products are displayed for
sale, with a sales executive to help customers placing it as a premium yet approachable.
3. The company offers the branded red Nescafé mugs as promotional items in its various in-store
giveaway campaigns.
4. Giveaways:

Nestle introduces new products as giveaways to communicate brand prominence and visibility for its
products.

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Digital Advertising:

The brand has a huge fan following on social media example on Facebook it has about 35M followers
it engages with its users via web videos campaigns let’s take an example of its project show called
“Really Friends” where the protagonist meets his social media friends offline and has a conversation
with them having a cup of coffee in their iconic red mug, this shows their emphasis on intimate
relationship between their coffee and connecting people.

On Instagram it runs its advertising with hashtags such as #itallstarts and also tagging words like
coffee in their posts and rate, time at which they post is very intricate in nature example they always
post in between 10:00-11:00 AM and 5:00-6:00 PM, they understood the millennial clocks!

Starting global campaigns for example such as “good morning world” it completely revolves around
making real connections with people and trying to identify itself as a Global character.

By making YouTube videos about the special recipes that can be made using Nescafé gold they are
tapping into Gen Z market and placing them as a premium product which caters to the coffee trends
of the world.

Bru instant:

Bru instant mainly focuses its activities in South India mainly Tamil Nādu because people are used to
drinking filter coffee here and bru instant resonates with them because of its intensity and compatibility
with milk, that is why it is right in driving their operations here. Whereas Bru gold is targeted for whole
India and focuses on upper middle class.

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https://www.youtube.com/watch?v=7ijFZUc7hlA&ab_channel=BRUIndia

In this particular ad we can see that their focus is on people and their relationships which resonates with
people from middle class and working class, it serves as an expected product so it caters beautifully for the
budget-oriented customers, and also this particular ad resonates with people in this segment.

Print:

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Bru instant advertises in the regional newspaper with a pretence that middle class and working class
read regional newspapers more there by targeting them and attracting them with the price and
extra discount, here we can see that the price is 10 rupees and 25% extra there by getting the
budget-oriented customers, relatability is also present in this case because it’s a filter coffee with
milk because this is usually how its target audience makes.
In store display and promotion:

The brick-and-mortar stores always have the 2 rupees sachets of bru instant at their entrance catering to
usually working class, this also creates an advantage for them to enter into villages and towns there by
increasing their sales.

Digital Advertising:

For product like bru instant there is actually zero digital advertising because that is not a place where they
find their target audience.

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