- Starbucks is entering into a 50-50 joint venture with Tata Global Beverages to open 50 outlets in India by the end of the year. - Starbucks' strategy is to focus on high visibility in urban metro areas to generate brand awareness and desire. They will differentiate their products and services through easily noticeable attributes and a multi-segment strategy. - Starbucks will differentiate by grinding fresh coffee beans for each pot and creating the signature Starbucks sensory experience identical to stores abroad. They will also introduce the Starbucks Card loyalty program.

1. CASE STUDY ANALYSIS…
BY:
NISHANT SINHA

2. • India is the 5th largest producer of coffee in the world.
• Accounting for over 4% of world coffee production.
• India is the only country that grows all of its coffee under shade.
• Market pegged at nearly Rs1,440crore.
• Expected to grow at a compound annual rate of 30% over five years.
Indian Coffee Industry

3. STARBUCKS… A TATA ALLIANCE
Area of Business
• Grows coffee on its own estates
• Processes the beans
• Exports green coffee
• Manufactures and exports Instant
Coffee
Introduction to Starbucks
 Company started in 1971 in
Seattle, Washington
 Grew from 55 stores in 1989 to
over 2,200 stores today
 Products sold include:
 Beverages
 Pastries
 whole coffee beans
 coffee-related retail items
TATA CoFFEE…..

4. • Starbucks, in a 50–50 joint venture with Tata Global Beverages
Ltd.
• It plans 50 outlets by the year end.
• Tata Group had an earlier partnership with Barista.
Starbucks’ foray in India!!!

5. Major Competitors
Operates 230 outlets in the Indian Sub–Continent.
Claims to be a pioneer of Indian Café Culture.
Its has outlets in almost all Tier 1 cities.
Opening another 100 stores over next 24
months
Brought in the concept of Café in India.
A market leader in Indian Sub–Continent.
Owns 11,500 acres of Coffee Estate.

6. STRATEGY…

7. Market Related Strategies
• OBJECTIVE:
– The firm seeks growth by targeting its existing product to a new market.
– Incorporating differentiate features that cause buyers to prefer firm’s
product and service over rivals.
• Starbucks’ Strategy:
– To focus on maximum visibility at the time of launch specially in Urban
Metros with an aim to generate ‘desire’ for the brand in the mind of
potential customers.
– An easily noticeable product and service differentiation.
– Using a multi–segment strategy to position the products .
• Segment A – Daily consumers
• Segment B – Occasional consumers
EXISTING
PRODUCT
NEW PRODUCT
EXISTING
MARKET
MARKET
PENNETRATION
PRODUCT
DEVELOPMENT
NEW
MARKET
MARKET
DEVELOPMENT
DIVERSIFICATION

8. Differentiating Strategy
• PRODUCT DIFFERENTIATION:
– Find ways to differentiate that creates value for buyers and are not easily
matched by rivals.
– Not spending more to achieve differentiation than the price premium can
be charged.
• SERVICE DIFFERENTIATION:
– Grinding coffee beans each time a new pot is brewed.
– Sensory Branding in terms of the consistent and distinct smell of freshly
ground coffee beans one enters the Starbuck outlet.
– Creating the signature Starbucks experience for Indian customerswhich is
identical to any of its store abroad.
– Introducing ‘Starbucks Card’ service in Indian market for customer loyalty.

9. Positioning Strategy
S.No
POSITIONING
STRATEGY
DEFINATION
ADVERTISING
CLAIM
1 Price Vs Quality
Product is highlighted
based service features.
Manufacturer charges
High Price.
Value for money
2 Product Class
Associating a product or a
service in a particular
product class.
World Class Product