An Inside Look at Starbucks

1185 WordsJul 14, 20185 Pages
INTRODUCTION Starbucks was established in 1971 and it is an established, successful purveyor of Coffee. Starbucks is always known for its “rewarding coffeehouse” experience. In addition to coffee they offer selection of Tazo teas, pastries and other snack items like Panini to please the taste buds. For creating overall coffee house experience Starbucks stores have an appealing music and décor. Their focus in United States is to create a gathering place where people can chat, sit work much more just than a coffee place. Starbucks has a global presence over 17,000 stores all over the world. Starbucks entered India in 2012 as a joint 50:50 venture with Tata Group. This paper focuses on company’s strategy on entering the emerging market and…show more content…
And with the price structure they have it was very likely they would not have been able to connect with masses in India. It would have probably catered only the upper class in India. 3. Innovative Menu: Although Starbucks is a global chain and they have a standardized menu to enter the emerging market they have made some innovative changes in menu. To cater the needs of merging markets company has to modify its offering so it can successfully create the mindshare. Indian people are conditioned to very different taste than the western culture when it comes to food. Starbucks have introduces chicken tikka Panini, paneer roles and large variety of tea options which will fulfill the demands of Indian customers. The food is catered by Taj catering and Taj hotel chain ( Tata chain). They have made changes in the size of the glasses as well and food portions as well. This is due to the simple fact that Indian consumers due not consume large amount of beverages as Americans or Europians do. Food portions are suitable to price and consumer habits. 4. Innovative Hybrid Supply Chain: This combination becomes powerful to capture the market because they have implemented novel supply chain strategy. Starbucks is known to create the experience but supply chain is difficult in India. So most of the coffee comes from coffee estates in Sothern part of India especially Karnataka and Tamilnadu region. It is known as “Indian Espresso Roast”. This
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