Although it was extended to India, the success rate was very low. With this, Starbucks Enterprise started to plan their strategies for expansion. Starbucks has decided to enter into a joint venture with Ratan Tata’s brand Tata Coffee. With this, Starbucks has announced that it will open stores in various locations in India.
In October 2012, Starbucks Corporation started operations in India in association with Tata Global Beverages. Opened their first store in Mumbai as 50:50 joint partners. The world’s largest coffee house company has got a coveted location in Mumbai because of its brand name. The company was renamed Tata Starbucks in India.
The reason behind the success in India is the Indian consumers who support Tata Coffee. Starbucks has around 28000 stores in 75 markets. One of them is India. The objective of Starbucks coffee houses is not only to sell coffees across India, but Starbucks outlets are a place where people from all corners are welcomed and invited to connect themselves with the taste of coffee. All the outlets of Starbucks in India are designed to satisfy the diverse tastes of Indians. Another strategy used by Starbucks is premium pricing, store infrastructure, and better menu design to suit customer tastes.
In 2017, on completing 5 years in India, Starbucks celebrated the #Starbucks100 campaign. In the Starbucks 100 campaign, Starbucks launched a Frappuccino priced at Rs. People queued for hours for this. To make the campaign more successful, Starbucks followed social media strategies. Boosting social media with posts, following newsletters, blogs like LBB and Buzzfeed India and innovative advertising, Starbucks has established a strong presence in the Indian market. Since the target is the youth of India, the offers and packages have been introduced to attract them. Instead of focusing on building relationships with new customers, Starbucks focused on existing relationships with customers. An example of that is the Starbucks customer card. Along with coffee, Starbucks expanded the menu with desserts, sandwiches and other types of beverages. The store also provides fast and free Wi-Fi to its customers.
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Starbucks India has crossed Rs 1,000 crore in sales for the first time in 2022-23 financial year. Also, Tata Starbucks added 71 new stores and entered 15 new cities in FY 2022-23. With this, the total number of stores in 41 cities is 333. Last year, Starbucks decided to add ‘Masala Chai’ and ‘Filter Coffee’ to its menu to attract Indian customers. Also, ‘Chole Paneer Kulcha’ and ‘Turmeric Latte’ are also on the menu.
Now Starbucks is caught in new controversies in the advertisement presented as part of the brand campaign ‘It starts with your name’. An ad supporting the rights of transpersons is now trending on social media platforms.
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