Starbucks In India Case Study

Starbucks is aiming to capitalize on India’s emerging middle class and its youth. They are transforming from the shackles of being tagged as a rural population to globally competitive world economic power. They had stumbled earlier in Chinese markets but now more or less Starbucks has established itself in China with more than 550 outlets in 13 years of journey. Starbucks will surely not like to replicate those mistakes which it committed in China in the beginning. Therefore Starbucks has planned to enter India marketing through a joint venture (JV) route with Tata Group. Secondly Starbucks is avoiding head-on with leading marketer in India i.e. CCD. It Starbucks has planned to provide a distinctive experience to its customers in India. Brand

He expressed that he had confidence in his company’s focus on India like many emerging markets including China. The company focus on employee & customer centricity, digital innovation which were non-negotiable. Schultz conveyed that they were investing in India for long term and his team envision a great potential for accelerated growth in this emerging market. According to Techno pack, a leading consulting firm, the café market in India which nearly INR 6.7 billion size in 2014 is growing annually at 13-14 %. In next five years the industry size is expected to be INR 15 billion. From global comparison, Indian café market may appear to be small but growing urbanisation and significant role of youth in economy is leading to demands of new hang out joints for

In view of these, Starbucks adopted the joint venture route by shaking hands with one of most respected and well known group TATA. Starbucks entered India market in October 2012 through a 50:50 joint venture (JV) with Tata Global Beverages, Tata Group Company. The company is focusing major cities like National Capital Region (NCR) in Delhi, Hyderabad, Chennai, Pune and Bengaluru besides Mumbai. They had launched their first outlet in Mumbai on October 19, 2012 at heritage location in Elphinston Building, Horniman Circle. The launch created a lot of stir amongst both young and olds. They would be going to expand the number retail outlets as fast as possible. Starbucks Cafés offered Indian consumers the “value in the offering”. Within next 12 months, Starbucks managed to offer the ‘third place’ at 40 locations in four cities in India. Apart from usual Starbucks coffee and associated beverages the menu of Starbucks-Tata outlets was an assortment of food items for local tastes. In fact in India Starbucks is registering around 25% of typical outlet revenue from food items as compared to 20% the global average. Thus food would be big part of Starbucks experience and the management was planning unique dishes in every city with fine blend of local and international