Starbucks enters into Indian coffee market


Starbucks a global coffee  giant which has its operations in nearly 60 countries enters India which makes the count 61.India coffee segment is scattered with global players like barista,costa coffee,Gloria Jeans  and etc.All these coffee giants are struggling to get their act together and have very poor margin in India.They are struggling to get their act together in order to impress consumers.The only successful player in this premium coffee segment in India is Café Coffee day.There can be various reasons contributing to the success of its growth.First mover advantage,ambience and experience itself  made it popular and has got higher market share than any other coffee

Research shows that most of Indian consumers are youngsters and not the typical coffee consumers.So youngsters do not have the disposable income which means they cannot afford to spend a premium amount on coffee.India is mostly a tea drinking nation which makes the life of coffee giants more difficult.People prefer to have tea rather than coffee.Cafe Cofee day has almost market share of nearly 60% with its lot of rebranding exercise.Cafe coffee day has lot of variants in its retail outlets which makes it affordable and it has made it presence in corporate sector.
Starbucks has entered into Indian market and its joint venture with Tata Global beverage.India is a very price sensitive so looking into that it has to drastically reduce the pricing of coffee.Indians like to have a coffee as a seasonal drink rather than as a daily drink.Starbucks strength is ambience so it should concentrate it as Indians prefer spend more time in café than any other place.Starbucks Howard Schulz has strategized and in order to understand India consumer they have partnered with Taj which is plus point.Interstingly ,Howard Schulz also said that in order to make it more Indian it has adopted menu and also said that Starbucks in India would be more a food joint  rather than coffee joint.Starbucks has already customized with its product offerings and has done some interesting things which is unique and first time in starbucks history.Starbucks will try to cash on its ambience,taste of tazo and trust of TATA.It will be amazing to see a battle between home grown coffee giant and world leader in coffee.



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