Question

Perfect Blend-Starbucks Enters India

Q.2 For Starbucks to succeed in India, what are some of the key elements that it must incorporate into its marketing strategy? Do you expect that they will need to adapt parts of their business model to the Indian market?

Q.3 Starbucks have entered India alone, or was a partner necessary? What type of partnership should the company have considered? Give Pros and Cons of various partnership models- such as joint ventures, franchises, and strategic alliances.

Q.4 Is the Tata group a culturally good fit for Starbucks?

Q.5 Outline the benefits and risks of the joint venture for both Starbucks and Tata, and discuss whether the Tata group is the right partner for Starbucks? What do you think has the upper hand in the relationship?

Answer 1

Q.2 For Starbucks to succeed in India, what are some of the key elements that it must incorporate into its marketing strategy? Do you expect that they will need to adapt parts of their business model to the Indian market?

Answer: India being a country where tea is given priority over coffee in major parts of India. Therefore this will be a great opportunity of Starbucks to introduce its US brand Teavana in India in the Tea products. This will help Starbucks to enter in a whole new market and will also increase the market base with many folds.

Q.3 Starbucks have entered India alone, or was a partner necessary? What type of partnership should the company have considered? Give Pros and Cons of various partnership models- such as joint ventures, franchises, and strategic alliances.

Answer: Starbucks needed a partner in India as Starbucks was a completely new concept in India and to teach India to drink coffee is to make a huge behavioural change in the lifestyle of the people. With TATA a trust a factor came with the TATA starbucks alliance and Starbucks wouldn't have achieved the scale it had achieved in India.

Q.4 Is the Tata group a culturally good fit for Starbucks?

Answer: TATA being the brand which is their in India from past 150 years and played an eminent role in the development journey of India. TATA as a brand has brought luxury as a concept in the perception of Indians and Starbucks being a coffee brand which generally cater to the audience of upper class has aligned with the target group of TATA. TATA bring a trust and reliability factor with itself that's make TATA group a culturally good fir for starbucks.

Q.5 Outline the benefits and risks of the joint venture for both Starbucks and Tata, and discuss whether the Tata group is the right partner for Starbucks? What do you think has the upper hand in the relationship?

Answer: