Have you ever bought the ₹1 instant coffee pack. Well that pack has its size and content overtime. Earlier it was for 50 paise and the weight was 1.2 gm. Over the period the price and the weights changed. The power pack of instant coffee has been for ₹1 for years now. The latest ₹1 sachet contained 0.7 gm of instant coffee mix. Yes I am talking about the #Bru. The #bruinstant coffee has been in the market for more than 5 decades. The latest marketing change has led to almost doubling up the sales.
The brand is owned and marketed by famous marketing company which markets other brands like Boost, Horlicks, Hellmann's, Cornetto etc. in the food and drink section. Apart from this the company is owning many brands in 44 categories. The company is , yes you guessed it right - Hindustan Unilever Ltd (#HUL).
Coming back to the case study.
The ₹1 sachet is now replaced with a ₹2 sachet. Initially it looks like the inflation led to change in price. But when you compare the weights the narrative changes. The old sachet had a coffee mix of 0.7 gm and the new pack weighs 2.2 gm. Here you can see the price has increased by 100% but the weight has increased by more than 200%.
Well this looks like a lucrative deal now. But, this is not the only good thing happening. The previous sachet’s mixture content was 57% : Blends of coffee and chicory coffee. & 43% : Chicory. For those who don't know what chicory is I have posted a Wikipedia link at the end. The mixture has now changed to 70% : Blends of coffee and chicory coffee & 30% : Chicory. Some of you might think what exactly is this. Basically Chicory is a cheaper alternative to coffee and now the chicory content has reduced. In simpler words you get more of original coffee compared to previous sachet.
Now the next question comes "How is the company profiting?" If it has actually increased the quantity and quality but is cheaper in what way are they making profits?
The answer is in two things
1.They have made the packet for ₹2 which we were earlier buying at ₹1. Direct increase in sales and eventually into profit.
2.Making the contains greater in weight they are actually saving on the packaging cost.
Before I explain the above points in details please hit the like button so that I get to know you like such case studies and inspire me to write more.
Explanation of 1 :
They have made the packet for ₹2 which we were earlier buying at ₹1. Which means they are mandating to buy more than what we need and also pay for it. Say I am used to having only 1 sachet everyday which made me 1 cup of coffee. Now the contents are thrice as much compelling you to have more and at the same time spend more as the ₹1 sachet is available no more.
Explanation of 2 :
Earlier they needed say x amount of money for packaging the 0.7 gm coffee. Now they need the same amount of money i.e. x, to package three times more coffee. They are saving double by increasing the weight contained in a single sachet.
Although the 1st points seems a bit heavy on pocket the 2nd point is a win win situation for both the brand and the customers.
I personally prefer a strong coffee and usually end up having 2 sachets for one cup. Now that the content has increased more than triple. I share the coffee with my sister. This is actually good as I am benefiting from it. You can also avail the benefits just that you have to find a coffee partner now.
What are your thoughts on this? Tell me in the comments below and don't forget to share the case study with your friends and acquaintances.
Too much of caffeine might not be good for your health, so drinking a lot of coffee might lead to health problems. This article is made out of curiosity and for the study purpose. It is not linked or intended for any promotion or demotion of the brands/companies mentioned.
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