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The agreement of Tata coffee and Starbucks in India allow them to provide roast coffee
bean.
Starbucks believe that India can be an important source for coffee in the domestic market,
The knowledge and understanding of the Indian market can be brought by the Tata Global
The Tata also have an arm in retail so there’s a synergy there as well.
This study aims to determine how can Starbucks, a company that is known for selling
coffee, to compete and promote its brand to a country, like India, that prefers
1. How can global brand like Starbucks do maximize their chances of success in
India?
2. How will Starbucks going to advertise their coffee in India, which is a tea-drinking
country?
Objectives of the Problem
2. To help increase its profitability due to declining market and over dependence on
US market.
One problematic challenge, in expanding Starbucks’ coffee chain into India could
present for the company, was expected strong competition to its coffee from its
traditional Indian beverage it’s the tea. There are number of alternative approaches
Option 1: : Starbucks can avoid the question of competition between tea and coffee
altogether and follow the recommendation of Christine Day (president of Starbucks Asia
Pacific Group) by simply advertising its coffeehouses as places for hanging out, eating and
drinking, and seeing and being seen (Mankad and Thadamalla, 2012).
Advantages: The uniqueness of Starbucks’ outlets may temporary attract people who like
variety when it comes to the places they frequent for eating, drinking and socializing
Disadvantages: Starbucks will face strong competition from almost every other Indian
eatery, bar, tea shop, and rival coffee chains; which may prove overwhelming.
Option 2: Starbucks can add a large selection of various types of teas, that are popular in
Advantages: Even those Indians who only drink tea will come to Starbucks’ outlets.
competitive advantage as its outlets will face stiff competition from countless tea stalls that
are found on every street corner in India (Indian tea culture, n. d.).
Option 3: Starbucks can attempt to greatly increase the popularity of coffee consumption in
India, so as to make the volume of coffee consumption equal to that of tea, through various
possible methods.
Advantages: Given that around a half of all non-free beverages consumed in India is tea,
while coffee forms no more than 2% of the total consumption of non-free beverages in
India (Mankad and Thadamalla, 2012), successfully carrying out this approach, will
enormously expand India’s coffee market while allowing Starbucks to dominate it.
Disadvantages: This option is more time consuming and will require a much larger
investment of resources.