Starbucks' Indian Entry Strategy - The Success Story of Starbucks with Ratan Tata

Starbucks Corporation is an American multinational coffeehouse company based in Seattle, Washington. After achieving tremendous success, Starbucks Corporation expanded coffeehouses in India. Will the tea drinkers of India accept coffee as their beverage?

Starbucks Corporation, after achieving tremendous success, innovated the idea of expanding coffeehouses in India. India, known as a country of Tea drinkers, will they accept coffee as their beverage? This question put Starbucks into a dilemma about expanding its venture in India. Starbucks, with high risk, expanded its venture in 2003, but the success rate fell high. 

Starbucks came across the decision to start a joint venture with Ratan Tata’s brand— TATA Coffee; with this, they announced the opening of stores at various locations in India. Let's see the success story of Starbucks and how they move forward with different strategies in the Indian market. 

In October 2012, Starbucks Corporation with TATA Global Beverages entered into India, starting their first store in Mumbai, India as 50:50 joint partners. Alas!!, the world’s largest Coffee house company got an aspirational position due to its brand, and it got the title “Tata Starbucks”. 

What’s next, the excellent growth rate across India filled up the Starbucks brand with success. According to the president of Starbucks corporation, John Culver in one of his interviews, “The reason behind the success in India is Indian customers, with support of Tata coffee. ” Starbucks’s number of stores is around 28000 across 75 markets, where India stands as one of them. 

In an email reply, Tata Starbucks said, “The aim of coffee houses is not just selling coffees across India, either it’s a place where people from corners are welcomed and invited to connect themselves with the taste of coffee. ”

Secret of Success of Starbucks in India

Time to discuss “Starbucks Success Secret” in India, a Tea-drinking country. Why would they accept coffee as their beverage?

This embraced the coffeehouse with a blast of success. Also, the infrastructure adds beauty, for example, the Starbucks store located at Connaught Place in New Delhi has art painted on the walls, and the entire store is made up of mats and ropes. Another example is the store located in Pune, which has a designed infrastructure with localized railings and a prosperous display of treasure and copper.

This was the first hidden secret success behind Starbucks. The other strategies used by Starbucks were premium prices, store infrastructure, and designing proper menus according to customer’s tastes. This strategy has taken the lead and is working in India very well.

With this, In 2017, Starbucks celebrated the #Starbucks100 campaign, at the time when it completed 5 years in India. In the Starbucks 100 campaign, Starbucks launched a Frappuccino worth 100 INR, and people used to stand for hours in line for its taste.

To make the campaign more successful, Starbucks followed social media strategies, boosted social media with their posts, and followed newsletters, and blogs like LBB, Buzzfeed India etc. This was another secret of their success.

How has Starbucks successfully entered new markets in India?

This can also be considered a success secret behind Starbucks. You May Like: The Story of CCD: Revolutionary Cafe Coffee Day Chain Started By VG Siddhartha In A Tea-Loving Country.

Their main strategy was focused on sharing posts on Facebook, Instagram, Pinterest, and Twitter, also they keep promoting their brand with visibility. It’s a unique thought of a joint venture with Tata Global beverages, supported by Starbucks corporation a lot.

The success of Starbucks involved quality improvement in taste and infrastructure. The customers are welcomed, and the store ambiance includes fast and free WiFi. The customer, with a slip of coffee, spends ample time in the cafe with their phone.

Just come up with new strategies and blast with confidence. Target the correct audience, gain the trust of customers, and promote the brand with visibility. Strictly following, Social Media Strategies, keep posting and updating about offers, and events are mandatory.

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