Introduction :

Tata Starbucks Private Limited, formerly known as Tata Starbucks Limited,[5] is a

50:50 joint venture company, owned by Tata Consumer Products and Starbucks Corporation,
[6] that owns and operates Starbucks outlets in India.[7] The outlets are branded Starbucks "A
Tata Alliance".

Tata Starbucks Private Limited

Trade name Starbucks "A TATA Alliance"

Tata Starbucks Limited

Formerly

Type Joint venture

Industry Coffee shop

Founded Mumbai, Maharashtra, India (19 October 2012)

Headquarters Tower 2, Indiabulls Finance Center, Senapati Bapat Marg, Elphinstone

Road, 

Mumbai, Maharashtra

, 

India.[1]
 Number of locations 224 stores (August 2021)[2]

Area served India

Key people Sushant Dash

(CEO)

Products Coffee  • Tea  • Pastries • Frappuccino beverages  • Smoothies

Revenue  ₹3.45 billion (US$46 million) (FY18)

Operating income  ₹12.6 million (US$170,000) (FY18)

Net income  ₹−305 million (US$−4.1 million)[3]

Owner  Starbucks Corporation (50%) 

 Tata Consumer Products (50%)

Number of employees 1200+ (May 2016)[4]

Website www.starbucks.in

 About TATA Starbucks :

In January 2011, Starbucks Corporation and Tata Coffee announced plans
to begin opening Starbucks locations in India.[8] Despite a false start in 2007,[9] in January
2012 Starbucks finally announced a 50:50 joint venture with Tata Global Beverages, called
Tata Starbucks Ltd., which would own and operate outlets branded "Starbucks, A Tata
Alliance".[10] Starbucks had previously attempted to enter the Indian market in 2007.
Starbucks did not cite any reason for the withdrawal. [11]
On 19 October 2012, Starbucks opened its first store in India, measuring 4,500 sq ft in
Elphinstone Building, Horniman Circle, Mumbai.[12][13] Starbucks opened its first roasting
and packaging plant to supply its Indian outlets in Kodagu, Karnataka in 2013. [14]
Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets at
Terminal III of the Indira Gandhi International Airport,[15] and later one in Connaught Place.
[16] Tata Global Beverages announced in 2013 that they would have 50 locations by the
end of the year,[17] with an investment of ₹4 billion (US$53 million).[18] However, the
company would open its 50th store in India only on 8 July 2014 in chennai. [19][20][21]
The third city of India to get a Starbucks outlet was Pune, where the company opened an
outlet at Koregaon Park, on 8 September 2013.[22][23] Starbucks opened a 3,000-square-
foot flagship store at Koramangala, Bangalore on 22 November 2013, making it the fourth
city to have an outlet.[24][25][26][27]

 Purpose :
As of November 2021, the company had 33,833 stores in 80
countries, 15,444 of which were located in the United States. Out of Starbucks' U.S.-
based stores, over 8,900 are company-operated, while the remainder are licensed. [3]j
The rise of the second wave of coffee culture is generally attributed to Starbucks, which
introduced a wider variety of coffee experiences. Starbucks serves hot and cold drinks,
whole-bean coffee, micro-ground instant coffee, espresso, caffe latte, full and loose-
leaf teas, juices, Frappuccino beverages, pastries, and snacks. Some offerings are seasonal,
or specific to the locality of the store. Depending on the country, most locations offer
free Wi-Fi

 Strategic Intent
1. Tata Global Beverages Limited and Starbucks Coffee Company
launched a joint venture between the iconic international coffee brand and the 2nd largest
branded tea company in the world. The 50/50 joint venture, named TATA Starbucks Limited,
owns and operates Starbucks cafés, branded as Starbucks Coffee “A Tata Alliance.” The
first store has already opened and subsequent stores are in line to be opened at Mumbai in
India at the end of October, 2012. The alliance is expected to be very fruitful to both the
companies in the long run. The report seeks to strategically assess the viability of this
strategic alliance by peeping into its myriads of dimensions. SITUATIONAL ANALYSIS India
and China are the world‘s two fastest growing economies. Starbucks had already ventured
 into the Chinese market and not surprisingly, their Chinese venture turned out to be much
profitable than that of their US business. Thus, they want to replicate their success in
Chinese mainland in India. Also, the Indian market is heavily driven by the upcoming youth
culture which is totally driven by the western trends. With the growing disposable income of
Indians, people tend to spend more towards apparels and fast foods. With the success of
Indian owned Café Coffee Day and Barista Coffee, it is a widely proven fact that there is lot
of scope for the development of coffee café culture in India. Thus, Starbucks want to
capitalize on this particular opportunity. They are planning to start with targeting the niche
upper class segment by opening their outlets in TAJ Hotels and Resorts. Their primary target
market is the younger generation of age 16-40years. They will also target the tourists who
will be visiting India. Since, most of the tourists coming to India are from the countries of
U.S., England, Germany, and Japan who are well aware of Starbucks brand name. Thus,
there will not be the problem of brand name recognition among them. 4
2. 5. STRATEGIC INTENT Starbucks Corp. is aiming India as its next major hub for
development. Starbucks want to replicate the success they had in USA and more recently, in
china. Surprisingly, their venture in China proved to be more profitable than that of US. Here
in India, Starbucks entered into a deal with TATA Coffee Ltd, Asia's largest publicly traded
coffee grower. This is, in particular, a non- binding agreement between two giants. There are
plans to combine the trust and legacy of TATA coffee with the iconic brand image of
Starbucks which can move on to development of Starbucks retail coffee chains in other parts
of Asia. In addition to sourcing coffee beans from TATA‘s Indian facilities, the companies will
also work towards developing Starbucks stores in retail outlets and hotels. Starbucks Mission
Statement “To inspire and nurture

2 : levels of strategic mission & vision

1.  mission by a commitment to:
2. 6.  Understanding of environmental issues and sharing information with their partners 
Developing innovative and flexible solutions to bring about change  Striving to buy, sell and
use environmentally friendly products.  Recognizing that financial responsibility is essential
to their environmental future  Instilling environmental responsibility as a corporate value 
Measuring and monitoring their progress for each project.  Encouraging all partners to
share in their mission Objective of Tata Coffee behind this Alliance:  The agreement will
allow Tata coffee to provide roast coffee bean to Starbucks in India.  Get opportunity to
jointly invest in additional facility for export to other markets.  Starbucks will help by
providing new technologies for the promotion of responsible agronomy practices.  A long
term relationship will be formed with this Memorandum of Understanding with Starbucks. 
After this deal, Tata Coffee is poised to become Asia’s biggest publicly traded coffee grower.
Objective of Starbucks Corporation:  To tap huge emerging market of India.  Help
increase its profitability due to its declining market and over dependence on US market.  To
have access to the high quality Arabica coffee. John Culver, president, Starbucks China and
Asia Pacific on opening up of the first store in India at Mumbai states, “This is the first step
Starbucks and Tata Coffee Limited are taking toward developing and improving the profile of
Indian-grown Arabica coffees around the world by elevating the stature of Indian coffee, as
well as improving the quality of coffee through 6 sustainable practices.” “Tata Global
Beverages is a company known for bringing memorable tea consumption moments to
consumers in India," stated Harish Bhatt, CEO, Tata Global Beverages. “The joint
  Mission & vision
Starbucks highlights its mission as “to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.” And its vision is to “treat people like family,
and they will be loyal and give their all.”
 Organization structure

3. External enrolmen analysis

  SWOT analysis :
SWOT analysis for TATA Starbucks, This is going to be interested. Okay, so let’s start the
SWOT(Strengths, Weaknesses, Opportunities and Threats) analysis.

After acquiring the japan and China market. Starbucks started their business in India after
strategic alliance with TATA.

 Strengths:
1. Brand equity: Brand equity of Starbucks is built on selling finest quality
coffee and related products. For those who don’t know what brand equity
is. Brand equity refers to the value of product of brand which has been
swayed in the minds of the consumers and their customers. For eg. smart
phone of Micromax is more technically advanced than that of Samsung
regardless referring or knowing the real services they are providing.
2. Innovating marketing by strong venture and strategic alliance: years after
years Starbucks have managed to do very strong positioning with the help
of strategic alliances with big giants, which they have to tried in India also.
They are collaborating with TATA, which is also a big big player in Indian
market. It has and will help them to create and develop a sustainable
supply chain of high quality.
3. Financial stability: Till now Starbucks has been very successful in achieving
financial stability. In 2019 Starbucks’ net revenue reached 26.51 USD. The
global coffeehouse chain has seen a year-over-year increase in revenue for
the past decade.
Weaknesses: One and only weakness which I see is higher price of their product.
India is a emerging country and per capita income of India is not higher as that
of developed countries. So their is higher possibility that TATA Starbucks will
face marketing challenge to middle class in India.
 Opportunities:
1. India is one of the fastest emerging nations. A report of IMF predicted India
economy to grow at the rate of 8.8% in post covid period. India is expected
to have one of the world’s largest economy. This will increase the per capita
income of middle class section. Hence this will provide a great opportunity
for TATA Starbucks.
2. Internet penetration: Jio revolution has made accessible of cheap internet
to everyone. This has changed the way consumers are doing shopping.
Online shopping is providing and continue to provide a great opportunities
to brands like Starbucks.
 Threats: Home grown brands like COFFEE CAFE DAY, followed by Qwiky’s
and Barista coffee. These home made brands have more experience, data
and trends as that of Starbucks. Also these companies provides similar
 products and services. These leaders provide products from very cheap to
very exclusive rates. Brands like CCD have not left any single platform from
where they can’t do marketing for their products such as television, movies,
social media, traditional marketing, TV shows etc. They have well
established infrastructure and connectivity. Also their are some
unregistered players as well who have good brand awareness at their
particular region.

 PEST(LE) Analysis
The PESTLE analysis is a tool which provides insight of the external environment in which
organizations operate or will operate and aids the strategy formulation of those
organizations. Considering the fact that Starbucks is planning to enter the market in
India, the PESTLE analysis is going to evaluate favorable and unfavorable conditions in
the country’s political, economic, social, technological, legal and environmental setting.

 5 forces analysis
1. Brand equity: Brand equity of Starbucks is built on selling finest
quality coffee and related products. For those who don’t know what brand
equity is. Brand equity refers to the value of product of brand which has
been swayed in the minds of the consumers and their customers. For eg.
smart phone of Micromax is more technically advanced than that of
Samsung regardless referring or knowing the real services they are
providing.
2. Innovating marketing by strong venture and strategic alliance: years after
years Starbucks have managed to do very strong positioning with the help
of strategic alliances with big giants, which they have to tried in India also.
They are collaborating with TATA, which is also a big big player in Indian
market. It has and will help them to create and develop a sustainable
supply chain of high quality.
3. Financial stability: Till now Starbucks has been very successful in achieving
financial stability. In 2019 Starbucks’ net revenue reached 26.51 USD. The
global coffeehouse chain has seen a year-over-year increase in revenue for
the past decade.
  Weaknesses: One and only weakness which I see is higher price of their
product. India is a emerging country and per capita income of India is not
higher as that of developed countries. So their is higher possibility that
TATA Starbucks will face marketing challenge to middle class in India.

Innovating marketing by strong venture and strategic alliance: years after years Starbucks
have managed to do very strong positioning with the help of strategic alliances with big
giants, which they have to tried in India also. They are collaborating with TATA, which is also
a big big player in Indian market. It has and will help them to create and develop a
sustainable supply chain of high quality.

1. Financial stability: Till now Starbucks has been very successful in achieving
financial stability. In 2019 Starbucks’ net revenue reached 26.51 USD. The
global coffeehouse chain has seen a year-over-year increase in revenue for
the past decade.
 Weaknesses: One and only weakness which I see is higher price of their
product. India is a emerging country and per capita income of India is not
higher as that of developed countries. So their is higher possibility that
TATA Starbucks will face marketing challenge to middle class in India.
 Opportunities:
1. India is one of the fastest emerging nations. A report of IMF predicted India
economy to grow at the rate of 8.8% in post covid period. India is expected
to have one of the world’s largest economy. This will increase the per capita
income of middle class section. Hence this will provide a great opportunity
for TATA Starbucks.
2. Internet penetration: Jio revolution has made accessible of cheap internet
to everyone. This has changed the way consumers are doing shopping.
Online shopping is providing and continue to provide a great opportunities
to brands like Starbucks.
 Threats: Home grown brands like COFFEE CAFE DAY, followed by Qwiky’s
and Barista coffee. These home made brands have more experience, data
and trends as that of Starbucks. Also these companies provides similar
products and services. These leaders provide products from very cheap to
very exclusive rates. Brands like CCD have not left any single platform from
where they can’t do marketing for their products such as television, movies,
social media, traditional marketing, TV shows etc. They have well
established infrastructure and connectivity. Also their are some
unregistered players as well who have good brand awareness at their
particular region.