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Starbucks Corporation, an American multinational coffeehouse company located in Seattle, Washington. 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 their venture in India. Starbucks, with high risk, expanded its venture in 2003, but the success rate fell down highly. With this, Starbucks enterprise started planning and plotting strategies for their expansion. 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. Lets see the success story of Starbucks and how they move forward with different strategies in Indian market.
History of Starbucks India
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 as “Tata Starbucks”. What’s next, the excellent growth rate across India filled up the Starbucks brand with success.
Ratan Tata with Starbucks Coffee Company Chairman Howard Schultz. Photo by Bhaskar Paul | India Today
According to the president of Starbucks corporation, John Culver said in one of his interviews that, “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 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? In a survey, it was found that most of the Indians spend around 45 minutes in a café with their friends and relatives. This embraced the coffeehouse with a blast of success. Also, the infrastructure adds on 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.
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Another example, the store located in Pune, has a designed infrastructure with localised railings and a prosperous display of treasure and copper. This was the first hidden secret success behind Starbucks. The other strategy used by Starbucks was 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 #Starbucks100 campaign, at the time when it completed 5 years in India. In Starbucks 100 campaign, Starbucks launched Frappuccino worth 100 INR, people used to stand hours in line for its taste. This campaign aimed to bring on the same taste and excitement from people as it was experienced in 2012.
To make the campaign more successful, Starbucks followed social media strategies, boosted social media with their posts, followed newsletters, blogs like LBB, Buzzfeed India etc. Their target audience was youth; hence they asked famous social influencers to promote and affiliate their offers on each and every page. These helped to publicise their campaign a lot, and so with flying colours, they succeed in the #Starbucks100 campaign. This was another secret of their success.
How Starbucks successfully entered new markets in India?
Experimentation & Innovation:
Starbucks always seeks innovative ideas for presenting, roasting and preservation. The company took the initiative solely depends upon to keep on experimenting with making Starbucks a great store. This can also be considered a success secret behind Starbucks.
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Customer Relationships:
Instead of focusing on building up relations with new customers, Starbucks focused on existing relationships with customers, ensuring more fan following. The brand advocates more impact on customers.
Building a Solid Social Media Network:
Their main strategy was focused on sharing posts on Facebook, Instagram, Pinterest, Twitter, also they keep promoting their brand with visibility. Starbucks stores engage online, and their spotlight was the importance of customer service.
Economic Resources:
Starbucks expects India as its top 5 market; due to its immense financial support, Starbucks has an advantage of investments, market opportunities and expansion activities. 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. Along with coffee, Starbucks served desserts, sandwiches and other sorts of beverages too. The customers are welcomed, the store ambience includes fast and free WiFi. The customer, with a slip of coffee, spends ample time in the cafe with their phone.
Conclusion
To be successful, planning is very important, along with planning patience is also equally important. If you face failure many times, do not feel let down and low. Just come up with new strategies and blast with confidence. Target correct audience, gain the trust of customers, promote the brand with visibility. Strictly follow, Social Media Strategies, keep posting and updating about offers, events are mandatory.
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