Below, is a PESTEL analysis for the firm, with a detailed explanation for all 5 factors:

SOCIAL
It was found upon analysis that social factors impact Bru greatly.
Brus market offering, an instant coffee, which is a non-alcoholic beverage, has to maintain the
strict and stark differences in cultures around the globe. The company expects consumers to be
able to think of the drink as something that connects the world together.
Most often, the social implications are visible in marketing campaigns. Bru had positioned its
brand with bringing happiness (Happiness begins with Bru), while it transitioned to a tagline
Discover something new later in 2011. Bru has advertisements in different regional languages,
which goes well in terms of connecting with the audience.

TECHNOLOGICAL
As the technology is advancing with passing time, big and small companies feel the pressure to
completely integrate themselves with the recent changes. Social Media is a very recent yet viral
trend that every business is turning toward. The social media blast has increased interactive
engagement with the customers and offers real time results too.
Bru Gold recently launched a social media contest in association with the movie Dil Dhadakne
Do in an attempt to increase brand visibility and brand recall. The movies facebook page
received around 168,000 likes, which was beneficial for Bru as well.

Anushka Sharma promoting her movie in a Bru Gold TVC

ECONOMIC
As you are aware, the economic downturn plagued the economy and companies had to
completely restructure their marketing and sales campaigns. The reduced profits led them to
downsize internally and reconsider about how they should penetrate the market.
Specific to Bru, a sustained rise in the cost of raw materials resulted in a rise in the prices by 1012% in 2011-2012 as the prices of raw coffee surged globally amid supply hiccups.

ECOLOGICAL
Ecological factors might affect Bru, but it will not have any immense toll on its trade and profit
generation. Ecological factors usually affect agricultural businesses more directly.

POLITICAL
Bru is supposed to maintain a firm standard of the laws set out by the FSSAI with consistency.
Also, many different markets across the world have different set of regulations that are either
relaxed or are either stringent. There is competitive pricing by Brus competitors (Nestle) and
that is one factor that Bru has to keep in mind at all times. The political scenario also matters
greatly as there can be some civil unrest in certain markets or due to inflation the sales of the
product can fall. Most importantly, cross border situations are starkly different therefore Bru has
to stay in line with all those policies and changes so that they can adapt to all those changes
accordingly.

LEGAL
FSSAIs recent order for the withdrawal of all the nine Maggi instant noodle varieties comes as a
warning sign for all the FMCG players, including HUL, as it calls for a high level of monitoring
at the quality assurance level before it goes to the retail market. The Maggi case makes it evident
how devastating an issue such as this can act in tarnishing the brand and even market leaders get
toppled over in no time.