Whats BRUing?

Presentation on developing a marketing strategy for BRU world caf

By: Nitin Gaur Pradyumna Namjoshi Sanjeev Singh MBA I year Students of SIBM, Pune.

Contents
Analysis of successful competitive strategies adopted by competitors. Understanding our target customers. What we want our customers to think of Bru world caf. Marketing and promotion strategies. Break-up of marketing spend limiting to Rs 20 lakhs annually. Conclusion

Analysis of successful competitive strategies adopted by competitors

Caf Coffee Day: Serves as book cafe and provides internet access, differential costing. Offers loyalty card: cafe citizen card. Serves Indian food such as samosa, tikka sandwich etc. Tied up with youth brands such as Levis, Scooty etc, latest one with Airtel for the tv show F.r.i.e.n.d.s contest. Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na.

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Barista: A uniform ambience across India, with facilities like wi-fi and blu-fi for its customers with ample reading material at their disposal. Provides a cool ambience, an all- new menu and creates a buzz around its new USP, provides the barista (a person who makes and serves coffee in a bar) training. Barista Lavazza continuously evolved its food and beverages menu across all its over 200 outlets but maintained similar menus across the country. Its breakfast product poha was a hit in western India. Applying the best international practices and food items that sell here like hot cakes only if it is customised, keeping the local taste buds in mind. For instance, they dont just serve cappuccinos, but masala tea as well.

Parameters
Location

CCD
Outlets in main markets and malls

Barista
By following a Top-Down approach they have outlets in high streets and family entertainment centers People at Barista are characteristically trained to be pleasant, polite and positive Uses a Re-order level system i.e. it outsources its transportation needs from external organization Carries out Mass promotion campaigns in the press, TV and radio medias. Rely more on sponsorships and strategic alliances Pricing at par with competitors

Ambience

Perfectly set up for Dating and Romantic meet-ups as its tagline indicates Inventory checked on daily basis and it uses its own stores small van for transportation needs Do not believe in Mass media promotions but are involved in all areas of serious consumer passion

Distribution of Stock

Promotional Initiatives

Pricing Strategies

Value for money Proposition

customers:
Affluent,

well read and well travelled men and women in the age range of 25-35.They are: Business executives, young IT techies and consultants with high disposable incomes, young group of friends or couples hailing from affluent families, NRIs, foreign tourists who come to visit India and foreign expatriates working in offices in India.
Our

target market for brand promotion(places our target customers visit frequently): 1. High end shopping malls , eg. Phoenix mall, Mumbai. 2. Gyms with high standards, eg. Gold Gym, Talwalkars, Air etc. 3. Airports, domestic and international. 4. Social events and gatherings. 5. Almost all of them have a strong online presence, they spend considerable amount of time surfing the internet and have profiles on Facebook and other social networking sites. 6. Bookstores such as landmark and crossword, movie plexes etc.

What we want our customers to think

BRU world cafe is worth every penny and its not just the coffee and the exotic menu, I can feel the intellectuality and liveliness when I step inside BRU world cafe. There are so many interesting and informative stuffs around, the paintings, the books, people sharing cultural experiences. I get to learn so much and enjoy these experiences with my friends or my companion. I feel like a true world citizen

Marketing and Brand promotion strategies

Online strategy:

Firstly we propose a revamp of interior design of the caf to include pictures of exotic places around the world and of photo framed stories and pictures shared by actual travelers, hanging on the walls of the cafe.
We believe the idea of giving customers the experience of the world is an excellent idea and this could be the factor that would differentiate Bru world caf from the crowd of other coffee houses. Make an alluring website! Website for Bru world cafe still doesnt exist and it only has a facebook page that is not very active. Online access to information is through food review websites, which often dont present the best picture of the caf. We should make a website with pictures of delightful ambience of the caf, website should provide information on the services offered, promotions, and about the exotic dishes offered by the caf and should have interesting facts about different countries.

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Also

website should have a forum where people would discuss coffee and their travel experiences and get a platform to make friends with common interests online.
Similarly

outsource web media promotion job to social media professionals to promote the website, the page of Bru caf world on Facebook and other social network sites.

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Put up promotional advertisements on travel advisory and food and travel websites in India. Use facebook ads to reach out to specific targeted customers.

Tie up with www.snapdeal.com, www.dealsandyou.com etc to increase web presence and to increase customer awareness about the caf.

Promotion through OOH media

Put up hoardings at locations outside Airports, inside shopping malls and movie places, inside gyms, outside corporate offices, at locations near the cafes, to provide visibility of the brand. Use merchandise such as caps, t-shirts and mugs with intriguing captions such as I just explored the tomatino festival of Spain! Have you? Explore www.brucafeworld.com This would serve as pull strategy to attract the attention of potential customers.

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Apply push strategy by hiring a promotional vans that go outside corporate offices and have contests on coffees and countries and the winner gets to try delicacies and gets discount vouchers for the caf. Get a picture book published that would have information of cities around the world, rich history and picture of food associated with these cities, also picture of the delicacy from that city that BWC offers. Arrange for distribution of these books at majors bookstores.

In store promotions

On one specific day of the week, have a dais where people can go and share stories of their travel experiences and the caf offers discounts in return. Have an interactive corner in the cafe where people willing to meet and interact with others can challenge each other over a quiz. Have theme events on specific days of significance such as Tibet day or the Masquerade ball day of Venice.

Have a small counter that has unique merchandise from different parts of the world on sale, eg: vuvuzela from South Africa or mask from masque parade at Venice.
Hand out bookmarks to customers that has pictures and short notes on different countries, that customers get to take back. This would keep reminding them of the caf and when they show the bookmarks to their friends, it would work as a Wow factor facilitating word to mouth publicity. The above strategies would serve as excellent tools for word of mouth publicity of the caf.

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5.58 million tourists foreign tourists visited India in 2010, and a large number of them visited Mumbai. Clearly foreign tourists are a huge potential customer base for Bru world caf and the profiles of these foreign tourists fit the profiles of customers that BWC intends to target. We should attract foreign customers also because it is observed that a brand that foreign customers find attractive are more readily accepted by the Indian customers also. For this, we should advertise on travel advisory websites such as: www.couchsurfing.com. Experiences are all about sharing, a well read and well travelled individual would love an opportunity to share his/her experiences among other fellow enthusiasts. Providing them this platform would be a novel concept that would create the buzz. For example karaoke cafes are a success in the west. Bru world cafe should also provide a platform for travelers and intellects to share their experiences.

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Include Indian samosa, tikka sandwiches and Indian beverages such as masala tea in the food menu to attract foreign tourists as well as customers with a liking for Indian food. Some work can be done to increase genuineness and uniformity of flavors across stores of some of the food items. Some of the online reviews of the food and beverages served at the cafe indicate dissatisfaction among customers: Links: http://mumbai.burrp.com/listing/bru-worldcafe_juhu_mumbai_cafes/1536790356 and http://mumbai.burrp.com/listing/bru-world-cafe_linkroad-andheri-west_mumbai_cafes/13314942376

Break up of marketing spend limiting to Rs 20 lakhs annually

Revamping of interiors to include paintings, photo frames etc, per store = Rs 30,000 Provide wi-fi access to customers = Rs 20,000 annually Designing and maintaining stock of bookmarks to be distributed to customers per store = Rs 20,000 Maintenance of books and magazines per store = Rs 20,000 Cost of website production and promotion by social media companies annually = Rs1,20,000 Getting unique merchandise such as vuvuzela or masquerade masks etc from other countries per store = Rs 80,000

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Cost of online advertising and promotion on travel and food websites = Rs 30,000 Spending on hoardings and promotional banners outside airports, inside malls, movie places, gyms etc annually = Rs 11,00,000 Production of merchandise such as caps, t-shirts and mugs per store annually = Rs 20,000 Hiring promotional vans annually and promotion costs = Rs 4,00,000

Getting a picture book published doesnt cost anything if a publisher agrees to publish the book. Otherwise self publishing can be a good option using print o demand(POD) technology to print limited number of books on economical rates. Websites such as www.pothi.com provides this service. If we publish around 200 books and productions cost of a 150 page book stands at Rs 400, total production costs = Rs 80,000. Then the books should be distributed at airport book stores and other prominent book stores such as Landmark and crossword. Distribution costs(HUL can use its distribution network to reduce costs) = Rs 40,000.

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Thus the total spending stands at approximately Rs 20,00,000. Profit can be generated if the travel book or the merchandise such a tshirts or merchandise from different parts of world catches customers attention and gets sold in significant quantities.

Conclusion

Indian market is already teeming with players in the coffee chain business and although this market is going to grow in the years to come, the new entrant has to differentiate itself from other coffee chains in its appeal and USP. The concept of BRU world cafe is unique where BRU has tried to cater to the well read and well traveled customer segment, but the execution and market positioning as a unique offering part would define the success or failure of the brand.