1. Bringing Starbucks to India
GROUP # 5
Karan Bhagatwala : Roll No. 09
Amol Kakde : Roll No. 54
Jyoti Khandre : Roll No. 66
Ashutosh Palande : Roll No. 102
Zeeshan Qureshi : Roll No. 125
Vijay Singh : Roll No. 158

2. The Indian ‘Coffee Shop’ industry
1. Market pegged at nearly Rs 1,440 crore.
2. Expected to grow at a compound annual rate of 30 per cent over five
years.
3. Indian market is underpenetrated.
4. A recent report by Technopak Advisors says:
– The market grew by 200 stores a year for the past five years,
– The market was worth $190 million by 2010/11.
– India has over 1,400 cafes and the country has space for up to 2,700
more in five years.
– This is tiny, compared to 200,000 cafes in Italy.

3. Starbucks’ foray into India
1. In the coffee house business, a larger footprint means more revenues.
2. Starbucks, in a 50:50 joint venture with Tata Global Beverages, called Tata
Starbucks Ltd.
3. It plans 50 outlets by the year-end - a drop in the ocean for the 17,000-
store global chain.
4. The group may target 3,000 outlets in India in a few years.
5. The Tata Group, of course, is no newcomer to the business, having been a
Barista partner earlier.

4. Competition Analysis
Barista
Lavazza
Café Coffee Gloria Jean’s
Day Coffee
McDonalds Costa Coffee
Dunkin’
Donuts Coffee Bean
& Tea Leaf
(New Entrant)

5. Competition Analysis
Barista Lavazza • Operates 230 outlets in the Indian sub-continent
(2000) • Claims to be the pioneer of Indian Café culture
Gloria Jean’s Coffee • It has outlets in New Delhi, Mumbai, Bangalore,
Hyderabad, Chennai, Pune.
(2008) • Aims to open 40 outlets by end of 2012
Costa Coffee • It has outlets in Bengaluru, Mumbai, Delhi, Pune,
Jaipur and Agra.
(2005) • Opening another 100 stores over next 24 months
Coffee Bean & Tea Leaf • It has outlets in Delhi, Mumbai, Kolkata and
Hyderabad
(2008) • Offers its signature ‘Ice Blended’ coffee.
Café Coffee Day • Brought in the concept of cafés in India.
• Plans to open 250 outlets over the next year.
(1996) • Owns 11,500 acres of coffee estates.

6. SWOT Analysis of Starbucks
Strengths Weaknesses Opportunities Threats
• Global Brand • High rental or • Favorable • Rise in cost of
• Product leasing cost government coffee and
Diversification • Intense policies dairy products
• Profitable competition • Growing • Rising real
organization • Known only consumer estate cost
• Sound for coffee product • Political
financial • Company market opposition
foundation owned stores • Rising affluent
• Customer not feasible class
loyalty
• Favorable
forex market

7. Value Chain Analysis of Starbucks

8. Proposed Strategies
A two pronged approach

9. Market Related Strategy
Objective:
The firm seeks growth by targeting its existing products to new
markets / market segments.
Starbucks Strategy:
To focus on maximum visibility at the time of launch especially in
urban metros with an aim to generate desire for the brand in the
mind of the potential customers.

10. Product Related Strategy
“DIFFERENTIATION STRATEGY”
Objective:
Incorporate differentiating features that cause buyers to prefer
firm’s product or service over brands of rivals
Key to Success:
1. Find ways to differentiate that creates value for buyers and are not
easily matched or cheaply copied by rivals.
2. Not spending more to achieve differentiation than the price
premium that can be charged.

11. Marketing Plan
S-T-P-D Analysis

12. Market Segmentation
Lifestyle Based
Typical Customer:
“An educated urban resident with the disposable income to spend
on fine coffee”
1. Segment A: Daily Consumers of Specialty Coffee.
2. Segment B: Occasional Consumers of Specialty Coffee.

13. Targeting Strategy
Positioning Strategy
Sr. No. Positioning Strategy Definition Advertising Claims
Product is highlighted based on
1 Price Vs Quality service features. Manufacturer Value for Money
charges high price.
Associating a product or service
2 Product Class World Class products
in a particular product class

14. Differentiation Strategy
“SERVICE DIFFERENTIATION”
1. Only coffee shop in the world where the coffee beans are ground
each time a new pot is brewed instead of grinding coffee only in
the morning.
2. Sensory Branding in terms of the consistent & distinct smell of
freshly ground coffee beans when one enters a Starbucks outlet.
3. Creating the signature Starbucks experience for Indian customers
which is identical to any of its stores abroad.
4. Introducing the ‘Starbucks Card’ service in Indian market for
customer loyalty & feedback.

15. References
The Starbucks Case Study
Google Images
Webliography:
1. http://timesofindia.indiatimes.com/business/india-business/Tata-
Starbucks-readies-for-India-entry-by-end-of-
October/articleshow/16585414.cms
2. www.starbucks.in
3. http://businesstoday.intoday.in/story/starbucks-in-india-how-
other-cafe-chains-would-react/1/22481.html
4. www.gloriajeanscoffees.com/in/
5. www.barista.co.in/
6. www.cafecoffeeday.com
7. www.blue-foods.com/brands/the-coffee-bean-tea-leaf
8. www.costacoffee.co.in/

16. THANK YOU