Starbucks in India Identification of Term Paper

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This is the largest chain of specialist coffee shops in India. Other brands, such as Cafe Coffee Day Xpress Kiosks offer takeaway coffee and other hot drinks and are found at busy locations, such as airports and railway stations. Additional competitors, neither of which are as dominant as Cafe Coffee Day include Cafe Mocha and Qwiky's. Cafe Mocha operates 50 upscale locations in major metro areas and caters to the upscale younger workers who have higher-than-country average per capita incomes. Qwiky's operates a smaller chain of outlets called coffee pubs, with the goal of creating ambience and a sense of relaxed atmosphere while selling higher-end coffees and specialty drinks.

The rise in coffee drinking is part of the transition to more branded consumption in India, and is led by the growth of branded coffee cafe chains such as Barista, Cafe Coffee Day and Qwiky's (KPMG 18).

3e. Context (Environmental) Analysis (1 page)

Summarize trends in the Macro Environment. What changes are occurring or are expected to occur? Consider, for example, the demographic, economic, ecological, political, legal, informational, social, technological environments. (Note: Not all environmental factors are important in every company's situation. Choose the factors which are most relevant to marketing decision-making).

India is for the most part a tea-drinking society, reflecting widespread availability, perceived health benefits, and cultural mores regarding this beverage, with the majority of Indians drinking tea at least twice a day. Starbucks is beginning to realize that like China, food services companies and providers in India are gradually changing the image of coffee. Creating a pleasing environment, training staff to be cooperative and helpful, appealing to the influx of business process outsourcing, call center, customer service employees in major metro areas all are fueling greater demand for coffee.

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The Indian market however is not nearly as advanced as China from a structural standpoint. The stringent Indian foreign ownership restrictions in this nation still apply, and the real estate prices in urban areas are significantly higher than in comparable Chinese urban areas. Due to the high cost of real estate in major urban areas, it makes sense for Starbucks to consider a Joint Venture with another coffee retailer with an established series of stores in the major urban areas of the nation. The most obvious choice for this Joint Venture would be Amalgamated Bean Coffee Trading Ltd., which has a competitive strength of innovative drink and food development as Starbuck's does.

Affordability, while on the rise, is still somewhat constrained, primarily by geography. Hot drinks, and to a greater extent, coffee, are consumed in urban areas in India.. Similar to China, new concepts are catching on in major cities, spreading to mid-tier cities, with very low penetration of rural areas, which aligns with the growth of jobs throughout India.

5. Target Market and Positioning (1-2 pages)

Which specific market segment do you recommend your company should target? How is this target market defined? State the bases of segmentation that define this target market including demographic, psychographic, behavioral, benefit, for example (you'll probably have a combination).

The following are the key demographic segments that Starbucks' needs to concentrate on the most affluent segments (KPMG 17) of Rich, Consumers, and Climbers. As each of these segments have disposal income and have a high level of westernized values, the targeting of seasonal and specialty.....

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