Below, is aPESTEL analysis for the firm, with a detailed explanation for all 5 factors:SOCIALIt was found upon analysis that social factors impact Brugreatly.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 somethingthat connects the world together.Most often, the social implications are visible inmarketingcampaigns. 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.TECHNOLOGICALAs the technology is advancing with passing time, big and small companies feel the pressure to completely integrate themselves with the recent changes.Social Mediais a very recent yetviral 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

ECONOMICAs 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 10-12% in 2011-2012 as the prices of raw coffee surged globally amid supply hiccups.

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

POLITICALBru 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.

LEGALFSSAIs 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.