Starting with the basics……………

 Founded in 1971
 Founders: Jerry Baldwin,Zev
Siegi,Gordon Bowker
 Headquatered at Washington,
USA
 Number of Locations: 28,218
 Products: Tea, Coffee,
Smoothies,Baked Goods,
Sandwiches
 Employees: 2,38,000
ENTRY METHOD
INDIA
• In 2012,50:50 Joint Venture
• Owned by TATA Global Beverages & Starbucks Corporation
• First store in India in Elphinstone Building

JAPAN
• In 1995 entered into 50:50 Joint venture with Japanese
company Sazaby
• 1996 – opening of the first Starbuck’s store in Ginza, Tokyo.
• Japan = 2nd largest international market
PORTERS FIVE FORCE MODEL – JAPAN
Threat Of New Entrants
Entrance Barriers High

Threat of Buyers
Industry Rivalries Average consumption of
• Doutor Coffee coffee 10.73 cups
• Moriva Coffee 48% love coffee on the go
• Tully’s Coffee Medium

Threat Of Substitutes
Average per Capita 0.8kg
High
PORTER’S 5 FORCE MODEL
(INDIA)
 INDUSTRY RIVALRY: HIGH

• Major competition: CCD in India is what Starbucks is to US

Other competition: Costa coffee, McCafe, etc

Indirect competition: Tata tea, Society, McDonald’s, KFC, etc

THREAT OF NEW ENTRANTS: LOW

49% FDI is allowed in India in retail sector

Any large or well-funded company having the thorough

understanding of the market can enter into retail sector in India

As Starbucks being the international brand will definitely help in

attracting the educated Indian crowd.
 THREAT OF SUBSTITUTE:SUBSTANTIAL

Product substitutes

The lower end local coffee houses or other snack shops

Since Starbucks also sells fast foods, other fast food beverages like burgers,
etc.
 BARGAINING POWER OF SUPPLIERS:LOW

In the case of coffee retail, not having much of the bargaining power.

Coffee retailers like Starbucks is a very big buyers

Suppliers of other resources like that of paper products etc. will not be
having much of the bargaining power

Suppliers supplying the technological machinery and equipment as there

are not many suppliers here
 BARGAINING POWER OF BUYERS:HIGH

In the past, did not enjoy much of the bargaining power.

With the advent of multinational food retail giants in India, consumer is faced
with lots of choices.

It will be difficult for Starbucks to influence the Indian

buyers to pay premium for their products.
International Marketing
of Starbucks (4P’s)
• India (Joint Venture 50:50 with TATA Group)
• Japan (Joint Venture 50:50 with Japanese company
Sazaby)
1. India: Product
• Brand Localization
• Seasonal Products
• Third Place Experience
• Partner Owned Roasting
Facility
• Standardised Products
- Coffee
- Tea
- Pastries
- Frappuccinos
- Merchandise (Mugs,
Tumblers, Munchies)
2. India: Price
• Premium Pricing
- Pricing Based On:
• Quality
• Differentiation
• The Value of
Authority
• Relative Value
3. India: Place
• Direct Supply Chains
(Stores, Flagship Stores)
• Strategic Placement of
Stores (Prime areas,
Malls, Airports)
• Online Stores
• Starbucks App
• Retailers
4. India: Promotion
• Word of Mouth (Starbucks
Experience)
• Loyalty Cards
• Website
• Social Media Pages
• Smart Partnerships (Truly
Madly)
• Innovative LED Displays
1. Japan: Product
• Beverage
⁻Brewed coffee
⁻Tea
⁻Cocoa
⁻White Hot Chocolate
⁻Espresso based beverages
⁻Frappuccino
•Fresh Food Menu
•Coffee beans & Tea
•Merchandises (Coffee & Tea
making equipments, mugs and
accessorise, books and gifts)
•Starbucks Entertainment (music,
books)
2. Japan: Price
3. Japan: Place
•First Starbucks location
outside North America was
opened in Tokyo, Japan in 1996
• 1363 stores
•Prime Locations
•Concept Stores
 Concept Stores

19th century Western Style A Starbucks store with a Terrace Traditional Japanese Craft
Starbucks in Kobe (2009) that overlooks the Kamogawa Starbucks Store in Meguro(2013)
river in Kyoto (2011)

Wooden Japanese Style Home in Kengo Kuma designed Starbucks Starbucks 1st Outlet Built in a
Kamakura (2009) Store in Fukuoka (2011) park , Toyama Kansui Park (2015)
4. Japan: Promotion
•Offers on Starbucks app
•Frappuccino Happy Hours
•Seasonal Special Drinks
‫ ־‬Green Tea Frappuccino(2011)
‫־‬Strawberry Cheesecake(2013)
‫־‬Christmas season menu
•Sakura products collection
•Eco-Friendly Store
⁻Non Smoking Environment
⁻LED Stores
•Website and Social Media
 SCM of Starbucks in India
• Starbucks Coffee
Company and Tata Coffee
opened a new coffee
roasting and packaging
plant in Kushalnagar,
Karnataka.
• Tata has been a coffee
supplier to Starbucks
since 2004.
• The partnership will
procure, roast and
distribute Arabica coffee
beans grown in India to
markets across the world.
 Green Supply Chain

• First store out of USA was in Japan in

1996
• Disciplined innovator
• Core range
• Seasonal Japan specific items
 Spring
Sakura Blossom Cream American Cherry
Frappuccino Pie Frappuccino
15th Feb – 15th March 13th April – 16th May
 Summer

Chocolate Cake Topped Shaken Watermelon &

Frappuccino with Matcha
Shot Passion Tea
1st June – 13th July 28th July – 31th August
 Summer

Hojicha Cream Frappuccino Grapy Grape & Tea Jelly

With Caramel Sauce Frappuccino
15th Sept – 1st Oct 1st Sept – 1st Oct
 Sustainable Supply Chain

• Hosted a Cup Summit,

where representatives of
the plastic & paper cup
value chain come together
to find criteria for a good
recycle solution for cups
• Single use recyclable cups in
2012
• Offering farmers incentives
to prevent deforestation
• 10% off on bill for those
who get their own reusable
cup
SCM of Starbucks in India
• Starbucks Coffee Company and Tata
Coffee opened a new coffee roasting
and packaging plant in Kushalnagar,
Karnataka.
• Tata has been a coffee supplier to
Starbucks since 2004.
• The partnership will procure, roast and
distribute Arabica coffee beans grown
in India to markets across the world.
Supply Chain
Distribution Flow Chart