TATA STARBUCKS : A

BREW FOR INDIA

Nadiatul Qalbi Amalia Rizqi
2012 : Strabucks comes to India
with a 50-50 TATA alliance with
its first store in Mumbai

2013 : Expanded the stores in

Delhi-2 outlets

2014 : Expanded within India

and reached to Chennai,
Hyderabad, Bagalore, etc.

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• The company announced to open 200 cafes in the country in
2020
• India is the fastest growing new market in the history of Starbucks
• According to John Culver, group president, Starbucks China &
Asia Pacific, India being a strategic market will be among top 5
markets in near future worldwide
• Tata Starbucks has begun exporting locally sourced & roasted
Starbucks India States Blend to selected store in Asia & in US
• It is innovating om beverage & food menu to add localized tastes
in product offering

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 Starbucks – TATA Alliance
STARBUCKS – TATA ALLIANCE
• The brands is in a 50-50 Joint TYPE Joint Ventures
Venture with TATA and the TRADED AS Starbucks “TATA
ALLIANCE”
alliance is named Tata Starbucks
INDUSTRY Coffee Shop
• Coffee beans are sourced and HEADQUARTERS Mumbai
roasted locally from Tata fields in NUMBER OF STORES 200
Coorg, Karnataka KEY PEOPLE Navin Gurnaney

• It is spread over Delhi, PRODUCTS Coffee, Tea, Pastries,

Frappuccino beverages,
Maharashtra, Karnataka, Tamil etc.
Nadu, and Telangana OWNERS Starbuck Corp. (50%)
Tata Global Beverages
(50%)
EMPLOYEES >1000 (per Sept. 2014)
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 Starbucks Culture
As per Howard Schultz, CEO Starbucks, brand’s vision is based
on employee happiness and given their customers and
experience that will make them come again and again to
Starbucks.
• Fanatical standards about coffee and service
• Empowered employee culture through generous benefit
program
• Employee training to brew the perfect cup of coffee
• Employee happiness-key to competitiveness and growth
• Benefits package to both part-time and full-time employees
• The experience one gets from the stores is to be
overwhelming and different
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 Starbucks and Its Expansion

Success in China Japan

• Adapted to the local tastes and • Adapted to the local tastes and
preferences preferences
• Promoted the concept of dine-in • Targeting wealthy or westernized
services (different with grab and go customer
culture in US) • Open in premium locations; also
• Better ambience and comfortable frequented by international travelers
outlets to consider Starbucks the
right option for executive meetings
and gatherings
• Improved and highlighted customer
service

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 Starbucks Product
Price Mapping

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 Frame of Comparative Points of Parity Points of
Reference Brand Difference
International Costa Coffee High quality, Brand equity of
Status premium brand starbucks, larger
status outlets, CS,
product ranges
Local Market Café Coffee Daily Awareness, Better ambience,
Leaader Quality to some specialty coffee
extent, locally
harvested
Fast Food Chain Mcdonalds, Lower-priced Brand Image and
Dunkin Donuts options, quick Quality Standard
service
Others Chai Point Awareness, Ambience and
lower-priced, experience,
specialty specialty Chai

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 TATA Starbucks
SWOT Analysis

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 STRENGHTS WEAKNESSES
• Good relations with coffee • Occasional lack of workforces on
suppliers the floor
• Located in high traffic areas and • Lack of experience in India
big cities • High-pricing not affordable by all
• Strategic relationships with
suppliers
• Spread across >60 countries with
>21.000 stores
 OPPORTUNITIES
• Innovative products and services
• Increasing product ranges,
establish a thorough Indian coffee
market
• Selling the experience rather than
the product
• Fair trade products can be offered
THREATS
• Frequent change in market trends
• Better value offered by local cafes
• Non acceptability in international
markets
• Recurring global financial crisis
• Influence of substitutes like tea in
India
 TATA Starbucks
Situational Analysis

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Situational Analysis
• Starbucks launched in India in
2012 and its further growth is
stagnant whereas in other parts of
the world (might) has reached the
maturity stage
• The taste savors the India palette
is very different from the west and
other regions and hence many
Indians drinks tea
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• Starbucks have to prepare a menu
that suits Indian taste buds and
affordable
• The brand needs to balance out
the market positioning as
“Amazing experience” coffee
brand and economic aspect
17
 Thank you

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