BUSN 427 GLOBAL ISSUES IN BUSINESS 9
Global Business Opportunities Project:Starbuck’s in India
Prepared by: Team B
Table of Contents
Global Business Opportunities Project: 1
Starbuck’s in India 1
EXECUTIVE SUMMARY 3
Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES 3
Module 2: ANALYZING INTERNATIONAL COMPETITORS 7
Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT 9
Module 4: ASSESSING THE SOCIAL – CULTURAL ENVIRONMENT 9
Module 5: ASSESSING THE POLITICAL-LEGAL ENVIRONMENT 9
Module 6: SELECTING A GLOBAL COMPANY STRUCTURE 11
Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS 13
Module 8: A GLOBAL MANAGEMENT INFORMATION SYSTEM 14
Module 9: HUMAN RESOURCES for GLOBAL BUSINESS ACTIVITIES 15
Staffing 15
Module 10: MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS 18
Module 11: PRODUCT AND TARGET MARKET PLANNING 20
Module 13: PLANNING A GLOBAL PROMOTION STRATEGY 22
Module 14: SELECTING AN INTERNATIONAL PRICING STRATEGY 24
Module 15: DETERMINING ORGANIZATIONAL FINANCIAL RESULTS 24
Module 16: MEASURING INTERNATIONAL BUSINESS SUCCESS 24
References 25
25
EXECUTIVE SUMMARY
Starbucks’s was established in 1971. From the first inception in Seattle’s famous Pike’s Place Market to its expansion across the United States Starbuck’s has looked to the global market to share the Starbuck’s way of experiencing coffee. Starbuck’s offers a variety of coffees and teas. In addition to drinks Starbuck’s offers pastries, salads, and sandwiches. Currently Starbuck’s has over 19,000 retail stores in over 60 countries. Starbucks is looking to expand is global business presence in the Southern Asia region. In this plan we will explore business opportunities, discuss potential competition, and risks involved in expanding the Starbuck’s franchises to India.
Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES
Global Business Opportunities
Starbuck’s seeks the opportunity to expand its franchises to India. India is a demographic with a population of just over 1 billion. India is an emerging market with high economic growth. Investment in India’s food and drink industry has the opportunity for high returns. The population is predominately a tea drinking nation. A small coffee consuming culture already exists in the southern hemisphere of the country. With a virtually untapped coffee market from foreign direct investment, Starbucks has the opportunity to be the first corporate company to develop the market. With a population of over 1 billion people there are opportunities to bring coffee diversity and new coffee experiences shared by the Starbuck’s culture enthusiasts.
Market Potential
India is part of the small list of economies that are growing year after year. With a growth rate of 8% annually and a middle class of over 350 million people India represents a market with increasing purchasing power (Pathak, 2013). India’s market is driven by its large consumer base. India’s main culture base is still inf ...
BUSN 427 GLOBAL ISSUES IN BUSINESS9Global Business.docx
1. BUSN 427 GLOBAL ISSUES IN BUSINESS
9
Global Business Opportunities Project:Starbuck’s in India
Prepared by: Team B
2. Table of Contents
Global Business Opportunities Project: 1
Starbuck’s in India 1
EXECUTIVE SUMMARY 3
Module 1: IDENTIFYING GLOBAL BUSINESS
OPPORTUNITIES 3
Module 2: ANALYZING INTERNATIONAL COMPETITORS
7
Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC
ENVIRONMENT 9
Module 4: ASSESSING THE SOCIAL – CULTURAL
ENVIRONMENT 9
Module 5: ASSESSING THE POLITICAL-LEGAL
ENVIRONMENT 9
Module 6: SELECTING A GLOBAL COMPANY STRUCTURE
11
Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS
OPERATIONS 13
Module 8: A GLOBAL MANAGEMENT INFORMATION
SYSTEM 14
Module 9: HUMAN RESOURCES for GLOBAL BUSINESS
ACTIVITIES 15
Staffing 15
Module 10: MANAGING INTERNATIONAL FINANCIAL AND
BUSINESS RISKS 18
Module 11: PRODUCT AND TARGET MARKET PLANNING
20
Module 13: PLANNING A GLOBAL PROMOTION STRATEGY
22
Module 14: SELECTING AN INTERNATIONAL PRICING
STRATEGY 24
Module 15: DETERMINING ORGANIZATIONAL FINANCIAL
3. RESULTS 24
Module 16: MEASURING INTERNATIONAL BUSINESS
SUCCESS 24
References 25
25
EXECUTIVE SUMMARY
Starbucks’s was established in 1971. From the first
inception in Seattle’s famous Pike’s Place Market to its
expansion across the United States Starbuck’s has looked to the
global market to share the Starbuck’s way of experiencing
coffee. Starbuck’s offers a variety of coffees and teas. In
addition to drinks Starbuck’s offers pastries, salads, and
sandwiches. Currently Starbuck’s has over 19,000 retail stores
in over 60 countries. Starbucks is looking to expand is global
business presence in the Southern Asia region. In this plan we
will explore business opportunities, discuss potential
competition, and risks involved in expanding the Starbuck’s
franchises to India.
Module 1: IDENTIFYING GLOBAL BUSINESS
OPPORTUNITIES
Global Business Opportunities
Starbuck’s seeks the opportunity to expand its franchises
to India. India is a demographic with a population of just over 1
billion. India is an emerging market with high economic growth.
Investment in India’s food and drink industry has the
opportunity for high returns. The population is predominately a
tea drinking nation. A small coffee consuming culture already
exists in the southern hemisphere of the country. With a
virtually untapped coffee market from foreign direct
4. investment, Starbucks has the opportunity to be the first
corporate company to develop the market. With a population of
over 1 billion people there are opportunities to bring coffee
diversity and new coffee experiences shared by the Starbuck’s
culture enthusiasts.
Market Potential
India is part of the small list of economies that are
growing year after year. With a growth rate of 8% annually and
a middle class of over 350 million people India represents a
market with increasing purchasing power (Pathak, 2013).
India’s market is driven by its large consumer base. India’s
main culture base is still influenced by its ancient values but,
today the younger generations are opening up to western culture
ways. Western ways are becoming more acceptable. The internet
has allowed for people all over the world to be exposed to many
different cultures. The opportunity exists for Starbucks to
penetrate this market. India’s population will continue to
growth with more people migrating from the rural areas to the
more urban surrounding. Starbucks will focus to allocate coffee
houses in all of the major cities like Mumbai.
Absolute and Comparative Advantages
One of India’s agriculture products includes the cultivation of
teas and coffee beans. Coffee beans are grown in the Karnataka,
Kerala, and Tamilnadu regions. Currently India is the 6th
largest producer of coffee beans. Their main coffee bean crop is
Arabica beans. With the local production of coffee Starbucks
will be able to utilize these resources to their advantage. This
will allow Starbucks to develop a local market for the coffee
production. Currently the overall production of coffee is 300
tons where domestic consumption of coffee is only at 100 tons.
Coffee is not the main staple drink in India. Due to the lack of
domestic coffee houses Starbucks holds the absolute advantage
5. in creating and broadening the coffee consumption market.
Business Opportunity Analysis
India represents an opportunity for Starbucks to streamline and
enable ease of access for coffee to the Indian population. As
being the first international coffee franchise to enter the Indian
market Starbucks can establish a more efficient system of
conducting coffee transactions. From grower to end user
Starbucks will have the comparative advantage of establishing a
large end user market for the local coffee business.
Collaboration with the domestic economy will enable Starbucks
to prevent any hostility towards being a foreign company.
Introducing new concepts and ideas will allow Starbucks to
build on a communal relationship. Local coffee will be offered
with the introduction of different coffee flavors from around the
world. Job opportunities will be created for local people and
franchise opportunities will exist for local entrepreneurs.
Market Strategy Risks Analysis
The table 1 below represents a standardize risk assessment
strategy tool. Based on this market strategy risk assessment
entering a new market generally possess a medium risk. A new
market can have its risks due to the inability to connect with the
end users. With Starbucks already having established franchises
in over 60 countries we can rely on our existing strategy plans.
Diversification in a new market is considered a high risk.
Starbucks strategy in developing a new market will need to
develop a relationship with an established domestic company.
Starbucks looks to establish a partnership with Tata Global
Beverage of India. This partnership will allow for ease of
product integration.
Table 1
6. (http://afsbloggen.blogspot.com/2012/03/ansoff_01.html)
SWOT ANALYSIS
Starbucks core strength is their success at being able to
penetrate different markets and bring to the local people the
Starbucks experience to life for every customer through every
cup (www.starbucks.com). Starbucks has been able to expand to
all parts of the world thru commitment of excellence and
integration to the local community. Currently Starbucks is the
largest coffeehouse franchise in the world.
The fluctuation in coffee bean prices could contribute to loss in
profits. Public perception and acceptance in India could lead to
a weakness. Negative publicity would need to be avoided at all
costs.
The opportunity to expand into the Indian market could lead to
an extended growth into Southern Asia. India alone represents
over 1 billion potential customers. Starbucks will have the
opportunity to cooperate with local coffee growers. This will
enhance the ability to expand the supplier coffee chain and
introduce Indian coffee with it global businesses.
Threats will always exist with a food and beverage distribution
company. The potential for the partnership with TATA Global
Beverage could go sour. Delays in construction and poorly
managed stores could lead to loss in profits. The ability to
expand further into India could be delayed. Local competition
could pose a small threat if the locals look to support domestic
businesses versus a foreign business.
Action Plan
Starbucks will look to deploy its integration team to help
support the startup franchises. Store penetration will be kept to
a minimal until the market can be tested. Once Starbucks is able
to establish is brand it will look to expand to other major urban
7. communities.
Module 2: ANALYZING INTERNATIONAL COMPETITORS
Potential Competitors
Currently McDonald franchises are a direct competitor in
the coffee business worldwide. Currently McDonalds has
established restaurants in the major urban areas of India.
McDonalds has been a major competitive threat by providing
coffee alternatives on their menu selection. With India favoring
to drink tea Starbucks collaboration with TATA Global
Beverage Company will help introduce the Starbuck brand to
the current tea drinking enthusiast. It will be apparent that
McDonalds will look to establish their own coffee products to
compete with Starbucks.
Local coffee houses will pose as a potential competitor.
The Indian Coffee House is an established business that has
locations in the southern India region. It offers its customers
both tea and coffee. With the southern region known to be a
coffee enthusiast region the Indian Coffee House only supplies
to a small population. Starbucks has the opportunity to directly
compete with this company. With corporate backing Starbucks
will be able to expand to all regions of India. This will help
increase company exposure and reduce Indian Coffee House
footprint the coffee business.
International Strategies
Starbucks will look to utilize is current international
strategy of establishing businesses worldwide. A team of
experts will be dispatched to support the integration of
Starbucks into the Indian market.
The Action Plan
Collaboration with TATA Global Beverage Company will
8. help Starbucks gain quick exposure of its brand. Distribution
routes and transportation will already be established. Moving
forward this partnership will support market penetration and fall
in line with Starbucks expansion strategy.
Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC
ENVIRONMENT Module 4: ASSESSING THE SOCIAL –
CULTURAL ENVIRONMENT Module 5:
ASSESSING THE POLITICAL-LEGAL ENVIRONMENT
Government and Politics
India is a Union of 28 states and 7 union territories. It is a
Sovereign Socialist Secular Democratic Republic with a
parliamentary system of government. India is governed in terms
of the Constitution of India. The Constitution provides a
parliamentary form of government which is federal in structure
with unitary features. Head Executive of the Union is the
President. The President and the House of States and the House
of the People make up the council of the Parliament of the
Union. The Parliament is the supreme legislative body of India.
A council of ministers with the prime minister as the head will
aid and advise the President. Most of the executive power is
with the Council of Ministers with the Prime Minister as its
head. India has two recognized political parties. One is the
National party and the other is the State Party. If a political
party is recognized in four or more states it’s considered a
National Party if it’s less it’s considered a state party.
Formal Trade Barriers
India has a few formal trade barriers. One of the trade barriers
is import licensing. Although import licensing has been
eliminated from most consumer goods some items remained
taxed. Import Licenses are only given to those who permanently
9. reside in India, working in India for foreign firms that hold
greater than 30 percent equity or to foreign nations working at
embassies and foreign missions. Standards, testing, labeling &
certifications must be done on our product due to the Bureau of
Indian Standards (BIS). This BIS is to ensure quality of goods
seeking access into the market and for protectionist measures.
The Tariff rate on Coffee is also extremely high with it being
100%. Many companies also face difficulties when passing
through customs due to excessive search and seizures. Extensive
documentation is required or lengthy processing delays will
ensue.
Promoting Global Business
India is a popular place for joint ventures and is the most
preferred form of corporate entities for doing business in India.
When joint ventures start in India they have no separate laws in
India. Meaning even with up to 100% foreign equity that
company will be treated the same as domestic companies.
Opening office branches though will attract a higher rate of tax
than a subsidiary or a joint venture company. The average
approval time is two weeks.
Intellectual Property
India complies with the intellectual property right (IPR)
protection laws as demanded by developed countries. India is
required to implement WTO-standard IPR protection laws. The
IPR protection laws encourage innovation and creative output
by ensuring their innovations are protected. This can take the
form of patents, trade secrets, copyrights, trademarks, or
geographical indications.Module 6: SELECTING A GLOBAL
COMPANY STRUCTUREStrategic Planning
Starbucks coffee houses are known to be welcoming, and
placing a coffee house in a tea drinking nation will not be a
challenge as lost as we use our stores to reflect the unique
character of the neighborhoods they serve. Starbucks will be
placing unique stores with a touch of individuality in each of
them. We will be applying Starbucks a theme with a touch of
10. Indian Culture. Starbucks will be familiarizing the tea drinking
nation of India with the Starbucks coffee brand.
Entry modes
Starbucks will be using a Joint Venture entry mode which will
cause Starbucks to have a benefit from local partners and share
the cost and risk. With Starbucks entering a new country
markets having a partner will help with any apprehensions and
tensions the country might have of the foreign business. The
new market will also be more familiar when finding finance,
distribution channels, or technology due to the joint venture of
a domestic insight.Organizational structure
The organizational structure that will be followed will be a
three regional organizational structure. The Joint Venture in
India will be falling under that China and Asia Pacific Market.
Every region will have a president who will oversee company
related business and will work closely with licensed and join
venture business partners in the market.
Strategic Alliance:
Action Plan:
Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS
OPERATIONS
Global Information Needs
Start – up costs will include the following items:
· Land and Facility for store front coffee house locations
· Coffee bean plantations
· Transportation/delivery from the coffee bean plants to the
11. packaging factory
· Packaging of the coffee beans and other products
· Establish a coffee drinking population
· Collaboration with India’s well known tea company, Tata
Global Beverage Company
· Relocation of core management personnel
· Hiring and training new happy employees
· Promotions and advertising of new business opening
· Overcome coffee bean tariffs
· Licensing Fees
· Administrative Costs
· Insurance
· Unforeseen Costs
Global Information Sources
All contract payments will be negotiated in US dollars, and paid
out in US dollars. Local personnel wages and supplier
payments will be paid at a fixed negotiated rate in local
currency per contracted forward exchange rates. The current
exchange rate for the Indian Rupee to US dollars is 1 to 0.017.
The issuance of this currency is controlled by the Reserve Bank
of India. In 1966, the Rupee was devalued and pegged to the
U.S. Dollar because of deficits in trade.
Financing Sources
Starbucks in India will finance its own global expansion
through capital reinvestment funding. Starbucks is such a
prominent corporation, it has enough of its own funds to finance
12. this expansion to include shareholders. Should additional
financing be required, domestic US sources will be tapped from
partners such as Oprah Winfrey and her tea line, India’s Tata
Global Beverage and America’s Teavana. Module 8: A
GLOBAL MANAGEMENT INFORMATION SYSTEM
Communications in India are very good and easily accessible to
everyone. India’s telecommunication network is the second
largest in the world based on the total number of telephone
users to include both land lines and mobile phones. India also
has the third largest internet user base. India’s current
population is 1.2 billion people. These are very helpful things
for Starbucks to start their expansion in India.
The current Starbucks company logo, products, design,
planning, and accounting software will be transferred with the
core management staff to each of the individual coffeehouses.
There will be a lot of advertising on the internet, since it is a
big part of India’s communication. Also, the Starbucks rewards
program with the bar codes usage from the smart phones will
help increase popularity of coffee since most Indians drink tea.
This is because most people have mobile phones there anyways
and it is a sure trend. We will have managers and executives
from America relocate to India to hire and train new and happy
employees. This is to ensure the famous “Starbucks Experience”
will remain the same, even in India. The same company policies
and procedures will also remain the same. If we do this, the
addiction of the Starbucks coffee will infect the entire country
of India and soon everyone there will start to drink their coffee
instead of tea. Module 9: HUMAN RESOURCES for GLOBAL
BUSINESS ACTIVITIES Staffing
The methods for recruitment are different for each
position, the applicants can apply using many different methods
for example, the applicants can use the internet via the
Starbucks webpage, or by walking in and filling out a paper
application. The hiring process includes the following steps,
13. face-to-face interviews with the applicant, a background check
once the applicant gets through the interview, and personality
tests for the final process of the hiring of employees. Starbucks
needs the managers, assistant managers, and store clerks to
operate their business on a day to day basis. The following are
requirements for these positions, "Manager position: He or she
must have 2 years managing retail stores operations, at least 1
year of retail or restaurant experience, supervise and direct the
work of others, is able to speak multiple languages,
communicate effectively, have team management skills, work
well in fast paced setting, and has excellent customer services
skills." (www.Starbucks.com May 29, 2014) Assistant Manager
position "Assist the store manager in everyday operations,
create superior experiences for partners and current and future
customers, follow Starbucks guidelines and policies."
(www.Starbuck.com May 29, 2014) Store Clerk position: "he or
she must have customer service skills, this person will also be
responsible for taking the customer orders, making coffees, is
able to operate coffee and tea machines, is able operate cash
registers, clean and sanitize utensils and equipment used for
making beverages and food preparation" (www.Starbucks.com
May 29, 2014)
Training & Development
When employees are hired they will need two weeks of
training; training should be completed five weeks prior to the
grand opening of the store. All employees will have the two
weeks of training which will break up into many different parts.
This will include the following: History of Starbucks, lists of
coffees, the menus, customer services, retail operations, how to
operate a cash register, the end of day reports, opening and
closing the store, and hands on training on how to make items
on the menu. The training process will involve a combination
of lectures and on the job training. The people that are
conducting the training will include the following people, the
14. human resources department, the Manager, and the Assistant
Manager. There will be guidance and people to go to with any
questions that an employee may have. (www.Strabucks.com
May 29, 2014)
Performance Appraisal
The method that will be used for this is the self-assessment
evaluation. These will be conducting with a manager in the
following increments: 90 days after hiring, and 1 year after the
hire date and every year thereafter. The self-evaluations allows
the employee to rate themselves on their performance, managers
will provide feedback during this time as well. Employees will
be able to point out their strengths and weaknesses during this
evaluation as well as their career goals. (www.Starbucks.com
May 29, 2010)
Compensation
The company will make sure that the wages paid to the
employees will be competitive with the pay compared to the
other businesses of the same type. The company will provide
benefits such as health insurance, offer bonuses, and vacation
pay. The employees will be eligible for raises based on their
performance. (www.Stabucks.com May 29, 2014)
Action Plan
Starbuck's will stay competitive within the market
pay scales, and offer the employees many different benefits to
its employees and become one of the best employers when it is
compared to other employers in the same field. The company
plan will be to expand Starbucks into outlet stores, into airports,
malls, train stations, and grocery stores. As the business grows
the Indian economy will grow with it and this will bring more
jobs to the people of India.Module 10: MANAGING
15. INTERNATIONAL FINANCIAL AND BUSINESS RISKS
Economical and Financial Risks
Most of the supplies for Starbuck's such as coffee beans,
sugar, and milk will be affected because they are imported
goods, thus incurring a higher cost due to a weaker dollar. This
will raise the following question as to will the company pass the
extra costs on to the customer which will make the coffee even
more expensive or will the company just find another way
around this.
Social and Cultural Risks
In America a poll recently held that people are consuming
more of the specialty coffees which Starbucks specializes in.
(www.Starbucks.com) this influences Starbucks because it will
provide the opportunity to exploit thus gain a higher market
share in America. However in countries like India or China tea
is still the main staple and widely preferred over coffee so
Starbucks will have to change the strategy in these countries.
This won't be too difficult when you take into account that
Americanization is growing in these countries. Health
conciseness is at an all-time high with governments around the
world, especially in the western countries where obesity is at an
all-time high, Starbuck's is altering their menu to reflect this
changing marketplace. Starbuck's has introduced new lines of
healthy alternatives which will be sold with their coffee lines.
This is and of itself is a huge opportunity for Starbuck's
capitalize upon.
Political and Legal Risks
India's red tape is the worst in all of Asia,
(http://www.doingbusiness.org/data/exploreeconomies/india/star
ting-a-business) this website describes in detail what kind of
16. information you need to start a business in India. Civil Service
has frustrated Indians and foreign business alike. Starbuck's
will need to be prepared to face a lengthy process when
applying for a business license. However Starbuck's is a
member of the UN Global Compact in which members have to
abide by 10 universal principles, including working against
corruption in all of its forms, corruption, and bribery.
Action Plan
There is no entry mode that is perfect and they all have
their own downfalls, but perhaps the most likely would be the
joint venture this seems like the most suitable for Starbuck's. A
final precaution for Starbuck's would be that all controversial
details during negotiation in the contract with its partner, to
avoid any petty or unnecessary conflicts in the future. In
conclusion having assessed the evidence concerning Starbucks
plans to internationalize, the external and internal environment
and its impact on the company, it is fair to conclude that
Starbuck's is in a strong position to expand especially after
successfully scaling through the effects of the financial crisis
while learning to be lean and efficient in the process. As such I
feel that India should be the logical choice for the expansion in
which to take place. India provides a very high potential for
better than average profits, increased market share, and
strategic placement. Module 11: PRODUCT AND TARGET
MARKET PLANNING Product Concept
The product concept is to primarily provide specialized café
beverages such as tea and coffee to the Indian market where tea
drinking is more popular in culture in the country India.
Product Life Cycle
The product life cycle is of high importance especially because
they are new to the country and provide new product. While
introducing Starbucks to the market, it will be very important to
promote as much as possible.
Branding & Packaging
17. Branding and packaging are very important to ensure the best
quality of product; coffee beans are received as well as
packaging to help maintain product quality.
Target Market
The primary market would be tea drinkers in a dominating
tea drinking country. However, Starbucks will also offer free
Wi-Fi and a variety of menu items which are customary for
India to gain attention of the locals providing Western tastes,
and menu items like Elaichi Mawa croissants – that are made
with cardamom and milk solids as well as tandoori paneer
rolls.Action Plan
Module 12 - DESIGNING A GLOBAL DISTRIBUTION
STRATEGYInfrastructure Analysis
Distribution will not be difficult since the opening of a new
plant as of February 2013. The plant was opened to handle
roasting and packaging their coffee. This plant is located in
Kushalnagar in Karnataka, India. The plant will secure, roast
and package green coffee beans that will be distributed to
Starbucks' stores all across India.Distribution Barriers
Distribution barriers include sociocultural differences.
Business may not be well acknowledged in India as it is in other
countries.
International Intermediaries
International intermediaries such as the many competitors
locally who still contain the popularity of the consumers will be
something to consider when entering the country with a new
market.Distribution Channel
Distribution channels will not be disrupted as Starbucks has
been successful and are accountable for over 70,000 deliveries
going out per week to other Starbucks retail stores worldwide.
Product has continuous movement from merchants to
consumers.Action PlanModule 13: PLANNING A GLOBAL
PROMOTION STRATEGY
Promotional Goals
18. Based on Starbuck’s global name brand recognition, our
presence in this region would be more substantial to our growth
and expansion based on different marketing and advertising
tools and techniques. Additionally, our demographic analysis
will be based on age, income and education of its citizens. Thru
various social media and internet marketing plans, like
Facebook, e-mails, in-house promotions, mailers, and etc., our
initial presence will certainly grow and be able to provide its
own mark within the Indian community.
Business Environment
Although there are various coffee house franchises in India, this
may present a competitive market for Starbuck. However, with
Starbuck’s name recognition, it may prove to be an advantage
and the fact that some of the coffee cafes already set a foothold
in India, the average Indian consumer will be happy to
“upgrade” to a Starbucks environment. With India’s growing
economy such as the technology sector, it increases job growth
resulting in income surplus for Indians to choose the number
one coffee café, Starbucks.
Media Plan
Based on the presence of other coffee house cafes, there will be
plans to promote Starbucks thru various inexpensive media
exposure such as social network medias like Facebook,
Instagram, and Twitter, which is a good way to leverage brand
presence, especially in the young generation age groups.
can provide the lower to middle income to its elitists class
plenty of advantages and needs in Starbuck’s coffee houses
featuring
Promotional Strategy
19. The proposed strategy to promote and grow Starbucks is to open
more coffee houses in the major metro cities and middle to high
income tier towns offering premium coffee experience to the
primary targeted group of students and working white collar
type professionals. This will ensure success of the business
venture and will serve as test locations. If the new stores are
highly profitable, Starbucks can expand more store locations for
promotional growth as well as company profits.Module 14:
SELECTING AN INTERNATIONAL PRICING STRATEGY
Module 15: DETERMINING ORGANIZATIONAL
FINANCIAL RESULTS Module 16: MEASURING
INTERNATIONAL BUSINESS SUCCESS
REFERENCES
A
http://afsbloggen.blogspot.com/2012/03/ansoff_01.html
http://articles.economictimes.indiatimes.com/2013-09-
13/news/42041703_1_tata-starbucks-unique-starbucks-
experience-starbucks-plans
http://www.asianinfo.org/asianinfo/india/politics.htm
Bhttp://blog.euromonitor.com/2011/11/starbucks-to-enter-india-
product-line-up-provides-competitive-advantage-.html
C
https://www.cia.gov/library/publications/the-world-
factbook/geos/in.html
D