Question

1. Why is India an attractive market for Starbucks? 2. What is Starbucks’s international strategy? Is it more of adaptation or standardization? 3. Why did Starbucks enter India with a joint venture?

Answer 1

1. The ethical approach to internal and external shareholders is almost a hallmark for Starbucks as one of the company's main characteristics. For the Indian market and its many socio-cultural aspects, this role as a sustainable business player is an important facet. This gives Starbucks a place on an important cultural phenomenon that also raises their disposable income with the increasing employment rate of young people and becomes a highly profitable target audience.

The rising size of Starbucks ' target group is another boost on the Indian market. The middle class in India was estimated at around 250 million in 2006, and in urban areas it is rising. All these factors demonstrate that Starbucks has a sufficiently large target group that is willing and able to pay a premium price for a Western product of high quality. Thanks to its positioning and brand identity, Starbucks has the opportunity to skim the Indian market.

2. The retail strategy of Starbucks is specifically designed to maintain loyalty and repeat business among its target market (upscale coffee drinkers) involves the hiring and training of experienced counter staff, called baristas, to inform consumers about specialty coffee drinks and related products from Starbucks, and to provide customers with an opportunity to break from their busy lives.

Marketing system standardization needs to have a positive impact on the organization's success. Because the budget for implementing the marketing program is significantly lower, being able to maintain a continuity across the marketing strategy and tactics in operations that span the globe can have a positive impact on the financial performance of a company. The cultural differences between different geographic markets, however, make it difficult to discern the effectiveness and effect of structured marketing plans on results. In addition to using secondary sources to analyze Starbucks ' global expansion, this paper also outlines how the company's global marketing strategy compromises the preferences of local target audiences with standardization and adaptation. From product-price-place-promotion marketing combination strategies to the use of loyalty cards that reward loyal customers and the incentive to share Starbucks moments through social media, the company actively seeks the view of its consumers through crowd-sourcing and the development of a sense of community.

3. In India we have foreign policies in which foreign brands can not enter directly, they must be related to any Indian company and the share of the Indian brand should be more than 50 percent. Tata group one of the world's renowned group is the first choice to be the joint venture partner Starbucks and tata group, both sponsors of many marathon events and tata s have a huge market of te