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Indians demand goods at reasonable prices and that's why when Starbucks entered in India, everyone thought they would fail.
However, despite being expensive they defied the odds and became highly successful.
Here’s how Starbucks' partnership with Tata proved everyone wrong!
Partnership with Tata
In October 2012, Starbucks Corporation with TATA Global Beverages entered into India, starting their first store in Mumbai, as 50:50 joint partners.India's diverse consumer base and market complexities make it difficult for global brands to enter successfully. Starbucks joined forces with Tata to overcome the challenges of accessing the unique Indian market.
How the partnership helped?
Tata's strategic networks and India-specific resources provided valuable support and also helped Starbucks gain insights into Indian consumer behavior. The joint venture allowed them to pool their resources, create innovative and high-value-for-money products, and expand their reach.
How it made Indians buy costly?
India is a price-sensitive market — which means people reduce their demand as the price of the product goes up. But on the other hand, people of our country love aspirational brands and products.
Starbucks realized this and portrayed itself as an aspirational brand. Starbucks is not just selling coffee. It's selling a Lifestyle, its a status symbol now.
They put forward exceptional marketing strategy, product positioning, and customer targeting.
Starbucks implements a targeted marketing strategy, focusing on urban areas and individuals aged 22-60 who are professionals, employees, and students.
They aim at middle to upper-class families with a preference for premium coffee and a desire for a relaxing ambiance. It only targets the premium customer segment.
Starbucks excels in delivering an exceptional in-store experience while effectively targeting the tech-savvy generation through social media. They have created a millennial-driven trend of sharing Starbucks coffee pictures online.
The company carries out community-based campaigns, festive marketing, and has introduced Indian dishes to its menu, boosting revenue and fostering brand loyalty.
Starbucks has embraced the Indian way of doing business with great success.
In October 2012, Starbucks Corporation with TATA Global Beverages entered into India, starting their first store in Mumbai, as 50:50 joint partners.India's diverse consumer base and market complexities make it difficult for global brands to enter successfully. Starbucks joined forces with Tata to overcome the challenges of accessing the unique Indian market.
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