Company background

The largest coffeehouse company in the world 16,635 stores in 49 countries, including 11,068 in the United States, nearly 1,000 in Canada and more than 800 in Japan. Sells various products from coffee to icecream Markets products from mugs and tumblers to music and films Expansion spree in the 1900s and the first half of 2000s Overseas stores constitute almost one third of Starbucks' stores

Starbucks has ambitious growth goals Planning their entry in nascent markets of Asia China and India are best suited The plan is to operate 15,000 stores at home and another 15,000 abroad, increasing revenue 20 per cent and profit at a 20-25 per cent clip annually over the next three to five years.

The retail food market in India is expected to grow by 9% Nearly a million daily coffee drinkers Coffee is becoming more and more popular especially among the youth India is one of the fastest growing coffee markets in the world Cafs are increasingly becoming more than places to sip coffee Coffee consumption is expected to double in the next 5-10 years. Tecknopak advisors, a global retail consultancy firm, pegs the organised coffee retail business in India at over Rs 8 billion with the potential space for nearly 3,000 coffee retail outlets in India.

1. PRIMARY MARKET
The Primary target market for Starbucks Coffee Co.in India is the youth both male and female from the ages of 16-38. This market is well educated and comes from middle class to upper middle class population.

2. SECONDARY MARKET
The secondary target markets are the tourists in the areas most tourists in India come from the countries of U.S., England, Germany, and Japan This market will also fall in the middle to upper middle class population and will find the Starbucks India prices relatively cheap Starbucks will target the market region wise as most of the South Indian Population prefers coffee over tea.

Adaptation of the global coffee culture Offering the products in a wide range of variants including hot coffee, cold coffee, coffee add ons, powder coffee, etc State-of-the-art store formats offering wi-fi access to customers Incorporating formats likemusic cafs, book cafs, highway cafs, lounge cafs, garden cafs and cyber cafs targeting a diversified customer profile

Age group of 15-29 Teen-agers form 25 per cent of the customer profile 38 per cent of them are between 20 and 24 years Another 23 per cent belong to the age group of 25-29 years. Opening small-sized coffee parlours to provide a neighbourhood coffee experience and lure more people.

CCD Barista Costa Coffee Coffee World CBTL Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi-products offering outlets like Reliance TimeOut and Desi Caf respectively

1. Political Joint partnership with TATA Coffee 2. Economic Booming economy Increase in employment Increased standard of living Increased disposable income

3. Social Indians shifting from tea to coffee Existence of other coffee joints in the country

PESTLE ANALYSIS
4. Technological Knowledge of IT Research and development Free Wifi services 5. Legal Complete legal support from TATA 6. Environmental Cutlery (for take away) is made of recycled paper Promote the use of paper bags

PRODUCT

PROMOTION

MARKETING MIX

PRICE

PLACE

 30 varieties of whole bean coffees Eco-friendly cappuccino, coffee makers, and other Starbuck paraphernalia Pastries and coffee to oatmeal, smoothies, and wraps The company has also been constantly introducing new products, such as "Instant via Ready" and "Full Leaf Tazo Tea Lattes" and "Tazo Tea Infusions"

Starbucks products are priced higher due to perceived upscale image attached to its brand implementing "value strategies" Price sensitive indian consumers The product needs to be of good quality and affordable.

 Appealing to a diverse customer base

Using philanthropy as a means for promotion

Starbucks locations are extremely conducive for individuals that are on the go and for those who enjoy reading or listening to music. First outlets in the 2 major metropolitan cities, Mumbai and Delhi If the new stores are highly profitable, Starbucks can expand to more than 200 stores in India

Employing trained chefs and food scientists to develop new products. Establish brand loyalty Differentiation approach. Internet inside Starbucks Leader in a new industry Fixed price without market fluctuation Web-site www.myStarbucksidea.force.com for feedback

Corporate Strategy Constantly innovate Emphasize on Pursuit of Quality To reach customers in locations close to where they work, travel, shop and dine. Starbucks experience Environmentally friendly

MARKET ENTRY MODES AND EXPANSION INITIATIVES

Starbucks uses 3 entry mode strategies: 1) Joint venture 2) Licensing 3) Company-operated modes. Extensive research Superior technology and product development Knowledge Partnerships and tie ups with giants like pepsico and unilever

Focus on the socio-cultural aspects of the Indian business Environment. Excellent marketing strategies Emerging Indian market Globally acclaimed brand name Alliance with TATA coffee

Adopting a multi-tier strategy Initially focus only on the metropolitan cities Customize their menu Customize their menu Reduce prices Avoid unnecessary expenditures Expand into countries such as Norway and Sweden Starbucks applications on the Apple Iphone