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Tata starbuck ltd


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Tata starbuck ltd

  2. 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. 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. 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. 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. 6. STRATEGY…
  7. 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. 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. 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