Strategic alliance of starbucks and tata coffee


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  • Starbucks requires a local partner to open retail stores in Asia’s third-largest economy as Indian laws currently limit overseas investment in single-brand retail to 51 percent.
  • Like-Tata coffee will provide best coffee beans to Starbucks and Starbucks will provide best quality of coffee to the Indian customer.
  • Strategic alliance of starbucks and tata coffee

    1. 1. Strategic Alliance of Starbucks and Tata Coffee….. By – Anuj Singh Swati Sharma
    2. 2. Indian Coffee Industry <ul><li>The coffee industry of India is the fifth largest producer of coffee in the world, accounting for over four percent of world coffee production, with the bulk of all production taking place in its Southern states. </li></ul><ul><li>Avg. Coffee consumption in India is 10 cups per day. </li></ul><ul><li>India is the only country that grows all of its coffee under shade.  </li></ul><ul><li>Indian coffee has a unique historic flavor. </li></ul>
    3. 3. Tata Coffee….. <ul><li>Area of business- </li></ul><ul><ul><li>Grows coffee on its own estates, </li></ul></ul><ul><ul><li>Processes the beans, </li></ul></ul><ul><ul><li>Exports green coffee, </li></ul></ul><ul><ul><li>Manufactures and exports Instant Coffee </li></ul></ul>
    4. 4. Pillars Of Tata Coffee’s Business Strategy
    5. 5. Competitive Advantage of Tata Coffee <ul><li>The largest integrated coffee plantation company in the world . </li></ul><ul><li>It's uniqueness lies in its ability to produce large quantities of estate specific, strain specific, special and premium coffee, while maintaining a strict consistency in quality. </li></ul><ul><li>It has a hand in every aspect of the coffee making process </li></ul><ul><li>With the major coffee consumption markets being Arabica-centric, this lobby has been prevailing in international markets by Tata coffee. </li></ul>
    6. 6. Starbucks <ul><li>It is an international coffee and coffeehouse chain based in Seattle, Washington. </li></ul><ul><li>Starbucks stresses quality above price and other features it could emphasize. </li></ul><ul><li>Starbucks specializes in coffee and related beverages. </li></ul><ul><li>The company sells coffee, Italian-style espresso beverages, cold blended beverages, as well as a selection of premium teas and coffee-related accessories and equipment. </li></ul>
    7. 7. Competitive advantage of Starbucks <ul><li>Strong brand image </li></ul><ul><li>Starbucks specializes in coffee and related beverages. </li></ul><ul><li>Starbucks is the largest coffeehouse company in the world. </li></ul><ul><li>They have loyal customer worldwide. </li></ul>
    8. 8. Marketing Strategy of Starbucks <ul><li>Starbucks started a community website, My Starbucks Idea </li></ul><ul><li>It’s rare to find a Starbucks ad in a billboard, ad space, newspaper or poster in places. </li></ul><ul><li>The company has went to great lengths to create a “community atmosphere” among premium coffee lovers. </li></ul><ul><li>Starbucks operates primarily through joint ventures and licensing arrangements with consumer products business partners. </li></ul>
    9. 9. About the deal… <ul><li>Starbucks is coming India with joining hand to Tata Coffee. </li></ul><ul><li>Starbucks will explore setting up stores in the Tata group's retail outlets and hotels, besides sourcing and roasting coffee beans at Tata Coffee's Kodagu facility. </li></ul><ul><li>This Agreement includes opening cafes, bean sourcing and roasting. </li></ul><ul><li>One of the hurdles that the two companies have to sort out is Starbucks’ franchisee-led business model </li></ul>
    10. 10. Objective of Tata Coffee behind this deal <ul><li>The agreement will allow Tata coffee to provide roast coffee bean to Starbucks in India. </li></ul><ul><li>Get opportunity to jointly invest in additional facility for export to other market. </li></ul><ul><li>Starbucks provide new technology to the promotion of responsible agronomy practices. </li></ul><ul><li>A long term relationship will be formed with this MoU with Starbucks. </li></ul><ul><li>After this deal, Tata Coffee is become Asia’s biggest publicly traded coffee grower </li></ul>
    11. 11. Objective of Starbucks behind this deal <ul><li>Starbucks aiming to enter in Indian market through this MoU. </li></ul><ul><li>Starbucks believe that India can be an important source for coffee in the domestic market, that’s why they enter in India. </li></ul><ul><li>The knowledge and understanding of the Indian market can be brought by Tata Global Beverages, because it has been in this play for a while </li></ul><ul><li>The Tata also have an arm in retail so there’s a synergy there as well. </li></ul>
    12. 12. Marketing Strategy Analysis Of the Deal
    13. 13. Marketing Strategy Analysis Of the Deal
    14. 14. Marketing Strategy Analysis Of the Deal
    15. 15. Marketing Strategy Analysis Of the Deal Competitive Timing/Direction Matrix
    16. 16. Marketing Strategy Analysis Of the Deal Service decoupling Approach
    17. 17. Marketing Strategy Analysis Of the Deal Porter five force Model
    18. 18. Relationship Marketing….. <ul><li>Starbucks and Tata Coffee developed a long term and intimate </li></ul><ul><li>relation-ships. </li></ul><ul><li>Through this deal they developed open communication </li></ul><ul><li>With this MOU Tata Coffee able to know the requirement and </li></ul><ul><li>preference of Starbucks more closely </li></ul><ul><li>Type of Strategic Decision Making.. </li></ul><ul><li>Formal Decision Making </li></ul>
    19. 19. Strategic Implementation of Decision…..
    20. 20. Product Life Cycle…..
    21. 21. Branding Architecture..... <ul><li>Sub Brand </li></ul><ul><li>they can opt this strategy for the branding purpose, as Starbucks uses </li></ul><ul><li>this strategy for the branding purpose and may be it will continue it in </li></ul><ul><li>India. </li></ul><ul><li>Endorsed brands </li></ul><ul><li>According to us they can also opt this strategy because Tata coffee </li></ul><ul><li>uses this strategy </li></ul><ul><li>Co-Branding </li></ul>
    22. 22. SWOT
    23. 23. Conclusion….. <ul><li>This deal will be beneficial for both the side, because this deal has given a new phase to both the company. </li></ul><ul><li>As Starbucks prospect After having MoU with Tata Coffee ,Starbucks is able to enter in Indian emerging market. </li></ul><ul><li>From Tata Coffee prospect, after this deals they are entering in coffee retail outlet business, which is also giving a new phase to TATA Coffee. </li></ul><ul><li>They may be revolutionized the Indian coffee retail outlet industry. </li></ul>
    24. 24. <ul><li>Thank You </li></ul>