Hindustan Unilever Ltd (HUL) is India's largest FMCG company with over 35 brands. BRU is HUL's coffee brand, holding 18% of the market. To tap growing out-of-home coffee consumption, HUL launched BRU World Cafe in 2011 offering authentic global coffee styles. Currently operating in Mumbai premium suburbs, BRU World Cafe competes with Starbucks and Cafe Coffee Day with premium pricing and differentiation through its association with the trusted BRU brand and range of exotic Indian coffees.

2. Hindustan Uniliver Ltd. – Manufacturer
• HUL is India's largest FMCG
Company with a history of over
80 years
• The company owns over 35
brands spanning 20 distinct
categories such as soaps,
detergents, shampoos, skin care,
toothpastes, deodorants,
cosmetics, tea, coffee, packaged
foods, ice cream, and water
purifiers.
• The HUL vision states “We meet
everyday needs for nutrition,
hygiene and personal care with
brands that help people feel
good, look good and get more out
of life…”

3. BRU – Parent Brand
• Number 1 Coffee brand in India
• Unilever's only Coffee brand
• Enjoys a rich heritage, came into
existence in 1962 under the
brand name Deluxe Green Label
• Consistently offering better and
newer products to the consumer
through improved packaging
solutions and innovative product
formats

4. BRU World Café – Brand Extention
• Launched in 2011, BRU World
Cafe outlets in Mumbai offer the
true tastes of coffee from around
the world
• BRU World Cafe is purely about
premium coffee and the
experience of having it in the
most authentic way possible.
• From delicious cakes to exotic
coffees, BRU World Café's
detailed coffee menu exhibits
that BRU World Café is not just
any coffee shop.

5. Current Market Scenario
• Coffee has retail value growth of
16% to reach Rs32.9 billion in
2014
• Foodservice volume sales grow by
9% which is faster than retail
volume sales of 8% in 2014
• Nestlé India Ltd continues to lead
with a retail value share of 37% in
2014
• Hindustan Unilever’s brand Bru
continued to hold on to its
second place with 18% increase
in values sales in 2014.

6. • Cafés and specialist coffee shops continue to drive coffee
consumption
• Growing penetration of international and domestic chained
coffee outlets such as Café Coffee Day and Starbucks coupled
with the increasing inclination of consumers for coffee
contributed to further popularity of coffee across India.
• The company continued to promote the brand by using new
brand ambassadors and opening coffee shop chain under the
brand name Bru World Café.
• Retail coffee consumption will continue to benefit from the
growing popularity of coffee specialist retailers/cafés. Therefore,
there are no potential threats to growth of coffee. However,
consumers in tier II cities especially might continue to consume
tea which has strong traditional popularity.

7. • Over the forecast period, coffee is
likely to gain further popularity in
at home consumption in the
North and West where tea was
previously dominant due to
dominance of coffee specialist
retailers/cafés in these regions.
Furthermore, consumers would
also experiment making various
type of coffee at home.

8. Retail Coffee Sales
INR million 2009 2010 2011 2012 2013 2014
Fresh Coffee 6,688.30 8,074.10 8,873.10 9,859.20 10,939.00 12,071.00
- Fresh Coffee Beans - - - - - -
- Fresh Ground Coffee 6,688.3 8,074.10 8,873.10 9,859.20 10,939.00 12,071.00
-- Fresh Ground Coffee Pods - - - - - -
-- Standard Fresh Ground Coffee 6,688.3 8,074.10 8,873.10 9,859.20 10,939.00 12,071.00
Instant Coffee 7,978.70 10,008.00 11,928.90 14,352.00 17,348.80 20,803.40
- Instant Standard Coffee 7,978.7 10,007.70 11,928.50 14,351.50 17,348.20 20,802.80
- Instant Decaffeinated Coffee - 0.3 0.3 0.4 0.5 0.6
Coffee 14,667.00 18,082.20 20,802.00 24,211.10 28,287.70 32,874.40
Table 2 Retail Sales of Coffee by Category: Value 2009-2014
Exhibit 1: Coffee sales currently stand at INR 32,874 million and have shown a steady
increase over the years
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources

9. Market Share Data
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources
Exhibit 2: Hindustan Lever, with its BRU brand, has maintained a steady market share
of c. 31% over the last 5 years.
% retail value rsp 2010 2011 2012 2013 2014
Nestlé India Ltd 33.1 34.5 35.9 36.8 36.8
Hindustan Unilever Ltd 30.7 31.3 31 30.7 31.2
Narasu's Coffee Co 5 5.2 5.4 5.2 5.1
Amalgamated Bean Coffee Trading Co Ltd 2.1 2.1 1.9 1.7 1.2
Tata Coffee Ltd 1.3 1.3 1.3 1.1 1
Cothas Coffee Co 0.7 0.7 0.8 0.8 0.8
Hindustan Lever Ltd - - - - -
Others 27.2 25 23.9 23.6 23.9
Total 100 100 100 100 100
NBO Company Shares of Coffee: % Retail Value 2010-2014

10. Category Growth from 2009-14
% volume growth 2013/14 2009-14 CAGR 2009/14 Total
Fresh Coffee 3.7 3.9 20.9
- Fresh Coffee Beans - - -
- Fresh Ground Coffee 3.7 3.9 20.9
-- Fresh Ground Coffee Pods - - -
-- Standard Fresh Ground Coffee 3.7 3.9 20.9
Instant Coffee 12.8 12.6 80.8
- Instant Standard Coffee 12.8 12.6 80.8
- Instant Decaffeinated Coffee 15.2 - -
Coffee 6.5 6.3 35.5
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2009-2014
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade
sources
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.

11. BRU World Café – 4 Ps
4 P’s
Product
Price
Place
Promotion

12. 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.

13. 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

14. Place
• Bru World Café outlets are currently operating in the city of
Mumbai as a pilot run.
• Being a premium offering, the outlets – 7 so far – are located
in the up market suburbs of Mumbai.
• Bru World Café currently operated its outlets in the prime
suburbs of Andheri, Bandra, Juhu and Versova.

15. Promotion
• HUL does not undertake promotion activity for Bru World
Café exclusively. Instead it relies on the brand recognition of
its premium Bru Exotica range which is in sync with the
offerings at BWC.
• This strategy is similar to Starbucks – the premium coffee is
sold at retail outlets as well as its own chain

16. BRU World Café – STP
• Segmentation:
The market for BWC is segmented on the basis of Geography and
demographics
• Target Segment:
The target segment is young, affluent class in the Tier I cities – who are
looking for a unique experience while enjoying their cup of coffee.
• Competition:
The main competing brands for BRU World café are Starbucks, Costa
Coffee and Café Coffee Day. All of these offer a premium out of home
coffee experience to urban consumers with a pleasant ambience and
décor. The focus is on the experience and not the beverage alone.

17. Frame of Reference
• Premium world coffee
• Pleasant and comforting ambience and décor
• Leisure and Spending time with friends

18. Points of Parity
• Premium worldwide coffee
• Wide range of beverages and savories
• Prepared using authentic traditional methods
• Pleasant and relaxed ambience and decor

19. Points of Differentiation
• Mediterranean style ambience and décor
• Range of exotic south Indian coffee
• Associated with a trusted and long established Indian
coffee brand
– This is the most important PoD for BRU World Café. Many
new coffee cafés that have spread in the urban landscape
are brands that are not traditionally strong in India.
However, BRU is long recognized as an authentic coffee
brand and enjoys strong brand recognition and brand
equity. Further, with BRU projecting itself in the premium
category with the Exotica range, the BRU World café are a
perfect complement to penetrate the high end coffee
market.

20. 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