Starbucks is expanding its operations in India through a joint venture with Tata Global Beverages. Starbucks opened its first store in India in 2012 in Mumbai. It has since opened additional stores and a coffee roasting facility. While India is traditionally a tea-drinking country, the coffee shop market is growing. Starbucks aims to establish itself as a leading coffee brand in India and accelerate its expansion beyond the United States, as India represents an opportunity for future growth. Local sourcing and production of coffee is a key part of Starbucks' strategy in India.

1. Marketing Strategic of Starbucks Coffee for Expansion in INDIA
"Starbucks Double Shot. Bring on the day."
Presented By:
Kartik Bansal
MBA
A Case Study

2. Coffee House
1971 to 2018STARBUCKS
HISTORY
First Coffee
House 1971
First Coffee
House in India
• 1971 Starbucks opens first store in Seattle’s
Washington in the heart of Pike Place Market.
• Three friends, Jerry Baldwin, Zev Siegl, and Gordon
Bowker, who all had a passion for fresh coffee.
• The name was inspired by Herman Melville’s classic
novel Moby Dick’s first mate.
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After Coffee

3. • 2007 Starbucks attempts to enter the Indian market but it false
• 2011, Starbucks Corporation and Tata Coffee announced plans to begin
opening Starbucks locations in India.
• 2012 Starbucks finally announced a 50:50 joint venture with Tata Global
Beverages, called Tata Starbucks Ltd .
• 19 October 2012, Starbucks opened its first store in India, measuring 4500
sq ft in Elphinstone Building,
•2013 Starbucks opened its first roasting and packaging plant to supply its
Indian outlets in Coorg, Karnataka
• January 2013 Starbucks expanded its presence to Delhi by opening 2
outlets at Terminal III of the Indira Gandhi International Airport,
Total stores*: 28000 in the world
Total stores*: 100 in the India
Starbucks in India
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After Coffee

4. "To inspire and nurture the
human spirit –
One person, One cup, and
One Neighborhood at a
time."
Starbucks Mission
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5. “Establish Starbucks as
the most recognized and
respected brand in the
world."
Starbucks Vision
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6. Focuses on consistency in delivering positive consumer experience stresses the point about
consumer visits to its cafes being an experience
Four store designs—one for each of the four stages of coffee making: growing,
roasting, brewing, and aroma—each with its own color combinations, lighting
scheme, and component materials
They create a consistent, inviting, stimulating environment that evokes the
passion for coffee.
Quality and keeping all aspects consist is of main concern Customers who order
one pound of beans must be given exactly that—not .995 pounds or 1.1 pounds;
never let coffee sit in the pot more than 20 minutes; always compensate dissatisfied
customers with a Starbucks coupon that entitles them to a free drink.
Brand Image
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7. MARKETING STRATEGY
Perfect Cup of Coffee- Emphasis on product quality. Their coffee, even though
priced slightly more expensive than expected, is notorious for satisfying customers with
its rich, delicious taste and aroma.
Third Place- Creating this unique and relaxing “experience” and “atmosphere” for
people to go to between home and work has been very important for the company as
they realized that this is one of the strongest concepts attached to the company, to
which customers have been strongly attracted.
Customer Satisfaction –From the entrance to the store to the very last drop of their
coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks
coffee experience.
Creating a Starbucks Community- The Starbucks marketing strategy has even
expanded to create a community around their brand. On their website, individuals are
encouraged to express their experiences with Starbucks history, and the company
strives to “personally” join in the discussions.
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8. MARKETING STRATEGY
Creating a Starbucks Community- The Starbucks marketing strategy has even
expanded to create a community around their brand. On their website, individuals are
encouraged to express their experiences with Starbucks history, and the company
strives to “personally” join in the discussions.
 Smart Partnerships-Starbucks Coffee Company has been known to create strategic
partnerships that demonstrate the fact that another way to grow your business is to
partner smart.
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9. Expansion STRATEGY
Establish hubs in large major cities
Ensure city is able to support 20 or more locations in the hub
within the first two years
Once hub is blanketed, open more stores in smaller city areas
around the region
Implement zone managers to oversee the development process
of each hub
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10. SWOTANALYSIS
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11. Life Begins
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12. C0mpetitors
 CCD
Barista
Costa Coffee
Dunkin Donuts
Mc Cafe
Coffee Bean and Tea Leaf
7-Eleven
Caribou Coffee
Second Cup
Nestlé
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13. STARBUCKS’S Today
•$84.6 billion chain coffee business
•Total net revenues increased 7% from previous
year
•EPS increased 21% in Q2 FY17 compared to
16% in Q216‘s Starbucks stores in the world
located in more than 75 countries Number of
Starbucks’ stores world wide Starbucks around
the Globe
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14. Porter’s5 Forces
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15. STARBUCKS’S FORAY IN TEA-LOVING
INDIA
On September 28, 2012, Starbucks announced its long-awaited plans to expand its coffee
retailing empire in tea-loving India. A few weeks later, on October 19, 2012, the global coffee
chain opened its first store in Mumbai’s Horniman Circle, the heart of the city’s commercial
district. The area is home to luxury shops, including a Hermès store, and numerous offices
and bank headquarters. The 4,500 square feet store (418 sq. meters) is far larger than most
Starbucks stores elsewhere around the world.
To enter India, Starbucks set up an $80 million 50-50 joint venture with Tata Global
Beverages, a division of the very diversified Tata Group conglomerate. The joint venture was
already set up before the Indian government decided to allow so-called single-brand
retailers to setup- shop in the market on their own. The Indian partner describes itself as
“Asia’s largest coffee plantation company.” In fact, the Mumbai-first shop is located in a
restored heritage building that is owned by Tata Sons, another division of the Tata Group.
The coffee chain had initially planned to open its first stores in India in mid-2011, but
needed to postpone its debut when it had difficulty finding suitable real estate.

16. In a first for the firm, all the coffee sold in Starbucks stores across India would be locally sourced
and roasted in India. Tata Coffee, a unit of Starbucks joint venture partner, had built the roasting
facility in the southern Indian state of Karnataka. The new facility would have a capacity of 375
metric tons of coffee beans annually. Even though India is a nation of tea lovers, the country has
seen a rise in the coffee shop culture over the past few years. According to one consultancy, the
total coffee shop market was expected to grow from $230 million in 2012 to $410 million by
2017. At the time of Starbucks’s entry, Bangalore-based Café Coffee Day dominated the market
with more than 1,300 stores across the country. Other notable coffee chains included The Coffee
Bean and Tea Leaf, a privately held U.S. firm, and U.K.-based Costa Coffee. Costa Coffee set up
business in India in 2005. By mid-2012, the chain had stores in six cities across India; it opened its
one hundredth outlet in Mumbai in August 2012. Costa Coffee planned to open another 100
stores over the coming two years. Costa Coffee also recognized the need to go beyond serving
coffee alone.
Starbucks’s expansion into India is part of its strategy to reduce the dominance of the United
States in its operations. Of its more than 17,000 outlets, about 6,000 were in more than 50
countries outside the U.S. In Europe, Starbucks had struggled in some countries, particularly
France. China, on the other hand, has been a crown jewel of the company’s international empire.
The China business, however, did meet a few obstacles. A Starbucks outlet set up in 2000 in
Beijing’s Forbidden City was closed seven years later after protesters claimed that the store
tarnished the historical site. By 2012, Starbucks had over 500 outlets in China. It expected that
China would become its second-largest market by 2014 and planned to have 1,500 stores across
the country by 2015. Starbucks also had high aspirations for India. In an
interview with the New York Times, John Culver, president of Starbucks China and Asia Pacific,
said: “We’re going to be very thoughtful on how we grow, but at the same time we’re going
to look at accelerating growth and capturing the opportunity that exists for us here in India.”

17. )
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18. Life Begins
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19. Singapore is a city that has been rushing fearlessly into the future. As a result, it
holds a significantly higher standard and cost of living than many of its Southeast
Asian neighbors. However, one aspect of the nation that has held onto old-time
tradition despite this rush forward is its kopitiam culture (where “kopi” translates
as the Malay word for “coffee” and “tiam” translates as the Hokkein word for
“shop”).
It begins in the late 18th century, the European love of coffee met Malaysian
taste buds and kopi was born. This brew didn’t only get a new name; it also re-
vamped the entire coffee production process.
Coffee Here, and Coffee There
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20. As India is a largely a tea drinking country (except for its delicious filter coffee of
course), and that is by and large true. People return from their holidays and gush
about the superb coffee they drank (again, all true) but If you take a look at the
exports statistics on the website of the India Coffee Board, you will see that more
than 21% of our export coffee is sent to Italy! In fact, India is apparently the fifth
largest exporter of coffee in the world.
After cafes like Cafe Coffee Day and Barista, Starbucks entered the arena. Indian
market is still very comfortable drinking instant coffee & customer base. India is
very experimental like freshly roasted coffee, Chennai coffee, Whisky, Old Rum
and Tequila barrel-aged coffees. (sale just in Goa),coffee drinkers have been quick
to eschew expensive, foreign coffee.
This is all because of the age group we have in India
Coffee Here, and Coffee There
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21. Adults
In India there is about 41% are youngsters. So as per my view Starbucks’ primary
target market should be men and women aged 25 to 40. They account for almost
half (49 percent) of its total business. Starbucks’ need to appeal to this consumer
age group through contemporary design that is consistent in its advertising and
décor.
Young Adults
After youngsters, Young adults, which is approx. 40% in India Having age group of
18 to 24, need’s to be of focused by Starbucks. Starbucks has to positions itself as
a place where college students can hang out, study, write term papers and meet
people. Starbucks appeals to this consumer directly through introducing
technology as soon as it comes available, focusing on social networking and
actively cultivating a “cool” image. This makes young audience to come Starbucks
SINCE Indai Is Word Largest Tea Drinking Nation
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22. Mono segment positioning.
The coffee chain giant targets premium customer segment only i.e. individuals who are
willing to pay extra for the quality of products and services
Adaptive positioning.
Due to the tendency of increasing consumer health awareness, Starbucks Coffee
developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe
Misto (63 calories) and Iced Americano (11 calories).
Stores positioning
for high-trafficked, high-visibility areas such as: Office buildings, suburban retail centers
Airport terminals, University campuses, Busy neighborhood shopping areas convenient to
pedestrian traffic, pyramid sits Roasteries .
Sustainable design
Heritage coffeehouses, Artisan stores ,Regional Modern, Concept stores
Positioning in Customer Mind
As Logo of Starbucks as most recognizable logo in the world. Company has to invested
significantly in creating a standardised look and feel of its stores, merchandise and food
and drinks also had to provide similar kind of experience in its stores

23. Starbucks 4p’s
Promo Product’s
PlacementPrice
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24. Promotions

25. Product
Tangible Product
Coffee, coffee bean, tea, food, cold drinks
(milk, water, juice), tea, bottle , mug , music
and seasonal products .
Core Product: services provided in store
Coffee, considerable service, relieved
atmosphere, decoration , Wi-Fi connection
Augmented Product: intangible service
Interaction with customers

26. Price
High Price =High Quality= Less Customers
Low Price = Lousy Quality =which Again Leeds
to Less Customers

27. Placement
Coffee Stores
Supermarket, Restaurants and Bakeries
Online Stores

28. Life Begins
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29. Questions/Com
ments’

30. Thank you…
Kartik BansalLife Begins
After Coffee