• 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
STARBUCKS… A TATA ALLIANCE
Area of Business
• Grows coffee on its own estates
• Processes the beans
• Exports green coffee
• Manufactures and exports Instant
Introduction to Starbucks
Company started in 1971 in
Grew from 55 stores in 1989 to
over 2,200 stores today
Products sold include:
whole coffee beans
coffee-related retail items
• Starbucks, in a 50–50 joint venture with Tata Global Beverages
• It plans 50 outlets by the year end.
• Tata Group had an earlier partnership with Barista.
Starbucks’ foray in India!!!
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
Brought in the concept of Café in India.
A market leader in Indian Sub–Continent.
Owns 11,500 acres of Coffee Estate.
Market Related Strategies
– 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
– An easily noticeable product and service differentiation.
– Using a multi–segment strategy to position the products .
• Segment A – Daily consumers
• Segment B – Occasional consumers
• 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
• 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.
1 Price Vs Quality
Product is highlighted
based service features.
Value for money
2 Product Class
Associating a product or a
service in a particular
World Class Product