Tata Star Bucks

Limitations:

As per our analysis so far, Starbucks has the following limitations:

• High price - Starbucks as a brand traditionally catered to middle-class Americans, whose income levels are typically higher than those of the middle-class youth in India. Even upper-middle class would hesitate to shell out high amounts of money merely to drink coffee and eat snacks, especially when there are less expensive options easily available.
• Limited scope for physical expansion - Starbucks outlets are generally quite large, with lavish display counters and luxurious seating arrangements. Setting up outlets will require a great deal of space, which is possible only in malls and large shopping complexes. Here cafes like CCD and Barista have an advantage - their outlets being relatively smaller, they can open up cafes on regular streets and in office buildings.

Future Recommendations:

• Increase TV and Online Presence: Starbucks should increase its presence in TV commercials and also engage in online marketing with main focus on leveraging its brand image. They can engage people by conducting various contests and also sending personalised cards/offers on social media
• Introduce Packaged Coffee Products/Drinks: They can launch their range of packaged coffee products (ready to drink coffee) in big retail stores and online channels, as they do in the US. Additionally, since instant coffee is more commonly used here than coffee beans, a range of instant coffee products can be introduced.
• Include tea variants: India is primarily a nation of tea-drinkers. To appeal to the more traditional and middle-aged consumers, therefore, Starbucks can introduce tea-based beverages incorporating various kinds of tea and spices. These beverages will quickly gain popularity and will also be cheaper than coffee drinks.
• Partner with corporates:  Many MNCs and other big companies have coffee vending machines and packaged coffee drinks in their offices. Starbucks can partner with these major firms to increase both sales and consumer reach. This move can be initiated by providing the coffee in the offices of Tata’s major business units such as Taj Hotels, Westside, Air Asia and Tata Docomo
• Regional Flavors: India features a multitude of cuisines across its states. Starbucks can cater to all these regions by introducing food products prepared along the lines of the local cuisine - for example, by using typical spices. Vegetarian products using paneer or potatoes can also be offered.
• Twist on Popular Food Items: Starbucks can introduce its own versions of popular Indian snacks and food items, such as samosas, chicken rolls, aloo tikki or curries. These will be relatively inexpensive to make and will sell quickly.

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