INDUSTRY LIFE CYCLE

Industry Life Cycle

It is the overall view of the entire industry of a particular category. In other words, ILC is the aggregate of the PLCs of all the brands under a particular product category. It has five stages:

1. Early Stage Phase- In 1960's there were hardly any coffee manufacturer in India. Under the brand 'Brook Bond' HUL launched coffee in 1968 as an instant coffee beverage. Since then it has created and distributed an array of unique high quality coffee blends.

2. Innovation Phase- 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. Earlier it was viewed as a product for the elite and upper middle class, but with time its acceptance is increased and now it has an astonishing 800 crore instant coffee segment in India. 

3. Growth Phase- The name Hindustan Unilever resonated with the consumers of coffee and Bru gained no. 1 status in India in 2011 with 51% of market share. Now also the sales volumes of Bru are sky rocketing, as industry is becoming successful in providing tough competition to the traditional beverage industry.

4. Maturity Phase- Currently coffee industry is in its growth phase only as it has reached to 12-13% market share in the beverage industry in India. So, it is yet to achieve the most consumable drink status and has a long way to go. 

5. Decline Phase- Coffee industry in India will not see decline any time soon.

MARKETING

According to American Marketing Association: Marketing is the activity, set of institutions, and process for creating, communicating, delivering and exchanging offering that have value for customers, clients, partners, and society at large.

CUSTOMER VALUE CONSTRUCT

Customer value is a customers' perceived preference for and evaluation of those attributes, attribute performances and consequences arising from use that facilitate achieving the customers goals and purpose in use situation.

F       For BRU, key attributes considered by customers are

•Packaging- It's new innovative packing which locks down the aroma of the dark and freshly brewed coffee

•Flavor - Availability in several flavors, allowing consumers to choose amongst many flavors

•Availability - It's presence in Jar, loose pouch and sachet, again customers can choose what they want.  

CONSUMERS DECISION PROCESS ELEMENTS

What makes you decide whether or not to buy certain product or even buy into certain services mainly depends on inside or outside influences. These influences are internal or external. 
The internal influences that guide through certain buying decisions can be attributed to direct marketing or influenced by a friend, a relative, a colleague, or even society. 
External or environmental influences can also be attributed to social class, family or friends.

Decision process for BRU coffee

1. Need Recognition- Since BRU is the top coffee brand in India, people will automatically think of it when it comes to satisfy the need. 

2. Information search- It takes place while purchasing for the product. Bru has an brilliant TVC with attractive jingle, which reminds people of it while choosing coffee. " Bru se hoti hai khushiyan shuru".

3. Alternate evaluation- In this part customers do not have much choices. They will either go for BRU or Nescafe. 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.

4. Purchasing- A customer buys coffee because of his/ her desire of drinking it. So the customer is already decided to purchase it before going to the shop/ cafe.

5. Post- purchasing- Mostly, BRU customers are retained. They already know what to expect from it after their previous experience. Satisfied customers will turn in again for a much better experience. 

LIFE CYCLE CONCEPT

PRODUCT LIFE CYCLE

Product Life Cycles is the stages which a product goes through during its lifetime. The PLC helps companies to identify the different stages in which its products stands accordingly design marketing strategies to make the product successful. It has four stages-

Introduction, Growth, Maturity and Decline. 

Introduction

The first stage begins with pioneering of the product. It is characterized by low level of competition, low sales volumes, relatively high costs and limited markets. Here marketers aims to increase awareness about the product through intensive advertising, through popular mass media, free trails etc. 

Bru coffee was introduced in India in 1967.

1. Instant premix powder provides coffee lovers with a healthier alternative

2. Ready to drink within 5 seconds, just by adding 200 ml of water anytime, anywhere

3. Categories- Hot and Cold Cappuccino

Growth

In this stage, product gains rapid acceptance in the market. It is characterized by high sales volumes, substantial profits, tough competition, greater visibility in market and distinguished advertising stressing on competitive difference. 

Bru coffee's growth in market was due to-

1. Its universal appeal

2. Instant coffee preparation

3. People's will to shift from regular beverage to new one (from tea to coffee)

4. Enticing flavors

5. Attractive ads

Maturity

This is the most stable stage of the PLC. Here product is stable in volumes, have high customer loyalty, introduction of more variants in product line, with greater efforts from company's side to retain market position. In this stage, any strategy implemented can either lead to further growth of the company or lead to its downfall. 

Bru Coffee is currently in its Maturity stage. It has 47% of market share, just behind Nescafe which have 51% share in the market.

Decline

This is the death stage of the product, where the product loses its customers to competitors. Sales and profits sees downfall, lack of production, lesser distribution, etc are the functions of this stage. 

Bru is going strong in the market and has not seen this stage, despite tough competition from other players like Nescafe, Tata and Reliance. 

PRODUCT MIX AND PRODUCT HIERARCHY

Product Mix

According to the American Marketing Association, product mix refers to "the full set of products offered by the organization for sale. The product mix includes all the product lines and categories." In simple terms, it is the set of product varieties that a company has to offer to the consumers. It's four dimensions are:

1. Width- It refers to the number of product lines that a company sells. A small/ new company will have a lesser product width as it will have basic varieties to sell, build market share and then expand the width according to the market situations.
For BRU coffee the width is six as it has Bru Gold, Bru Exotica, Bru Instant, Bru Cappuccino, Bru Select and Bru Roast & Ground. These all have different characteristics differentiating themselves from each other.

2. Length- It is the total number of products in the mix. Companies that have multiple product lines generally keep tracks of their average length per product line.
Length of product mix of Bru coffee could be the 10 gm sachet and 500 gm packet.

3. Depth- It is the total number of variants of each product. It includes features like flavors and several distinguishing features. Just like length, depth also plays major role in formulating companies strategies.

4. Consistency- This tells us the relationship between different product lines in terms of their use, production and distribution. Product mix may be consistent in their usage but vary greatly in their distribution.
Like, Bru instant may be available in every retail store, but its exotic favorite range may only be available in supermarkets (such as Reliance Mart, Walmart, etc.).


PRODUCT HIERARCHY

The American Marketing Association describes product hierarchy as "an organizational chart type of array of the products offered in a given market, breaking first into product class, then product form, then variations on form, and then brand." Every product hierarchy dimensions have various options so that the array can be designed as per the needs of the analyst.

The product hierarchy for Bru coffee can be elaborated as:

Need Family	Thirst/ Desire
Product Family	Beverages
Product class	Hot/ Cold coffee
Product line	Instant, Gold, Exotica, Cappuccino etc
Product type	Sachets, Loose packets, Jar
Product brand	Bru
Product item	10 gm, 50 gm, 100 gm, 500 gm, 1 kg

MARKETING MIX

It is the mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market. These  "Four Ps" are -

1. Price
2. Product
3. Promotion
4. Place (or distribution)

1. Price: 

200 gm pouch- Rs. 264 

100 gm bottle- Rs. 167

50 gm pouch- Rs. 97

Bru tries to maintain the price of its offerings or to decrease it, so that it can have an edge over the competitors and can sustain its market leader status. 

2. Product

• BRU coffee, the most popular coffee brand in India.
• Available in different variants 
• Positioned on the theme of happiness, its tagline is "Happiness begins with BRU"
• Annual coffee consumption is 1 lakh tonne

3. Place

• Bru World Cafe
• Kirana shops to malls

4. Promotion 

PRODUCT LEVEL: THE CUSTOMER VALUE HIERARCHY

In planning its market offering, the marketer needs to address five product levels. Each level adds more customer value, and the five constitute a customer- value hierarchy.

• The fundamental level- Core benefit: The service or benefit customer is really buying. 

1. An invigorating beverage prepared instantly.
2. Happiness, celebrating moments with BRU- "BRU se hoti hai khushiyan shuru"
3. Mood enhancer and catalyst for stimulating conversations.

• Second level- Basic product: Marketer must turn core benefits into basic product. 

1. From instant and conventional coffees to a variety of premixes, providing the rich aroma and exotic flavors of Bru coffees.
2. Bru has established its own coffee-shop chain in Mumbai (Bru World Café’) 

• Third level- Expected product: Marketers prepares an expected product, which the buyer was expecting normally with certain attributes and conditions.

1. Instant coffee is offered to save time in the emerging workforce environment.
2. Economic consumption through Rs. 1 for one cup sachet.
3. Available from Kirana shops to Bru World Cafe.

• Fourth level- Augmented product: Offerings from marketers that exceeds customer expectation.

1. Innovative packaging in its 'clip lock' packets

• Fifth level- Potential product:Encompasses all the possible augmentations and transformations product might undergo in future.

Bru Coffee

Hindustan Unilever Limited is an Indian consumer goods company based in Mumbai, Maharashtra. HUL's products include foods, beverages, cleaning agents and personal care products. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. 

BRU COFFEE

Ever since its inception, Bru has been on a constant endeavor to bring better products and formats to the consumer with every passing year. Bru’s specially selected and freshly roasted coffee beans offer a great cup of aromatic coffee to the consumers, which makes their moments of genuine warmth and happiness even more special.

important facts-

• India's number 1 Coffee brand
• Only Coffee brand from Unilever
• 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
• Enjoys a strong presence at various out of home locations