Starbuck in India

MC1y2, 2nd Semester AP Degree Marketing Management 2010

Counsellor: Gitte Ovesen Beierholm

Group members: Cristina Alexandra Grindei, Alisha Khatri, Yunjing Lu

List of Contents

1. Introduction……………………………………………………………………………………………………..…. 3

2. Problem formulation………………………………………………………………………………………..….3

3. Methodology and Limitation………………………………………………………………………………..3

4. Macro and micro Analysis………………………………………………………………………………..…..4

- 4.1 Country profile……………………………..………………………………………………………………....4

- 4.2Company profile…………………………………………………………………………………………….....5

- 4.3 Final Decision…………………………………………………………………………………………………..7

5. Recommendation……………………………………………………………………………………………………….….7

- 5.1 Entry mode………………………………….…………………………………………………………..……….7

- 5.2 Segmentation and target market……………………………………………………………….……….9

- 5.3 Suggested position and location………………………………………………………………………..10

- 5.4Suggested Value chain…………………………………………………………………………………..…..11

6. Conclusion………………………………………………………………………………………………………..….12

7. Reference……………………………………………………………………………………………………….…….13

8. Appendix ………………………………………………………………………………………………….…….……14

1. Introduction:

Starbucks Corporation has been the most successful coffee chain in the past years. The company has focused on creating a network of stores in US while opening new locations around the world.

Nowadays, the recession is effecting the economy of the entire world badly, no exception for the coffee market. Starbucks, as the coffee chain giant, is seeking for a new market in order to keep the leader position in the industry. Meanwhile, at the other side of the world, in India, a country known for the tea consumption, coffee is becoming more and more popular. According to Euromonitor International, in 2009, the total volume of coffee in the Indian market was 44,209.8 tones, the fifth largest coffee consumption country in the world. So is India a possible future market for Starbucks?

2. Problem formulation:

Starbucks is considering going to India. How can Starbucks enter the Indian market?

• Is India an attractive market for Starbucks?

• What could be the best entry mode for Starbucks in India?

3. Limitation and Methodology:

The limitations of the project are the page limit and the restriction in contacting the company. Regarding the company data, the limitation is in focusing on the entire product range of Starbucks, so as a consequence we have choose to focus only on the two main products: coffee and tea.

We have applied secondary data sources/quantitative data sources. The research method was the desk research. The theories used in the project are: the micro and macro analysis, the SWOT analysis, the entry mode analysis, segmentation and positioning, target market and value chain. We have used the theories to create an overview of the subject field