Post on 07-Oct-2015
description
STARBUCKS India
SWOT Analysis Prepared By : Bhavik Makwana (37155)
Symbiosis institute of Business Management ,Pune
26th November ,2014 Advance Service
Operations Management
STARBUCKS HISTORY Starbucks is the largest coffee house company in the world, with stores in 64 countries. It was founded by a trio Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971. Today
Starbucks not only has become a global brand but also has reached revenues of $ 14.89 billion, reported for the year 2013.
STARBUCKS STRATEGY Starbucks echoes Premium Price for Premium Product. Starbucks employs value based pricing to maximize profits. Value based pricing is all about customers. To consumers,
price is a numerical evaluation of how much they value what you are selling. Starbucks also uses research and customer analysis to formulate targeted price increases that
capture the greatest amount consumers are willing to pay, without driving them off. Profit maximization is the process by which a company determines the price and product
output level that generates the most profit. With help of Lean Operating Strategy, Starbucks was able to achieve minimum wastage and maximum profit. Also, Starbucks
marketing mix consists of 4P's and 4C's viz., 4P's - Product, Price, Place, Promotion; and 4C's - Customer Solution, Customer cost, Convenience, Communication.
Tata Starbucks Ltd is a 50:50 joint venture company, owned by Starbucks Corporation and Tata Global Beverages that owns and operates Starbucks outlets in India. The outlets
are branded Starbucks "A Tata Alliance". Starbucks, through an agreement with Tata Coffee, serves coffee that is 100% locally sourced and roasted.
LOCATIONS
As of July 2014, Starbucks operates 59 outlets in 7 cities of India.
State/Region City No. of Outlets
Delhi New Delhi 14
Delhi NCR Gurgaon 4
Maharashtra Mumbai 23
Pune 6
Karnataka Bengaluru 10
Tamil Nadu Chennai 1
Telangana Hyderabad 2
SWOT:
SWOT analysis for
Starbucks India
Competitors
Strengths
Strong Brand Equity World wide
Largest coffeehouse chain in the
world
Brand image with The Starbucks
Experience
Opportunity for growth in Mini-
metros
Backing of TATA beverages
infrastructure
Loyal customer base
Has a lot of new flavour variation
Limited no of strong competitor
Employee management
Weaknesses
Higher price
New market for Starbucks
Negative corporate image
world-wide
Indian coffee culture is different
form American European
culture
Self-cannibalization through
more penetration
Absence of Salted items in
menu ( Which might matter to
Indian consumers)
Opportunities
Growing consumerism in India
Very less players in India with
focus on Experience
Product innovation and new
growth platforms
Extended supply range
New distribution channels
Changing customer base across
country
Threats
Growing competition within the
coffee industry (Eg Caf Coffee
Day, Coffee Culture, Barista
Lavazza etc.)
Strong presence of Local Brands
in target cities
Supply and price of coffee is
subjected to volatility
Changes in government policies
Change in population age (Long
term)
COMPETITION:
CONCLUSION:
Although Starbuck is well known all over the world for its premium service , customer in India wants coffee at relatively low price which has been a concern for company in India
.But as Indian youth is experiencing the model they are becoming more and more accustomed with Starbucks. With opening of two new Outlets in Bengaluru this year, Starbucks
has made its position strong which will continue to grow as long as there are less number of players in this premium segment.
REFERENCES:
http://seattletimes.com/html/specialreportspages/2020216020_starbucks-coffee-in-india-part-one.html
http://www.starbucks.in/about-us/company-information
http://blogs.ubc.ca/nadirsurani/2012/11/13/starbucks-is-in-india/
http://www.iluvstarbucks.com/
http://en.wikipedia.org/wiki/Tata_Starbucks