Starbucks Marketing Strategy

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Coffee through outlets in India is a restaurant concept where consumers generally hang around here for hours as compared to the global phenomenon of grabbing coffee on the go from generally outlets and bars. Coffee retail chains in India have to maintain contemporary and plush outlets - and not bars - to give Indian consumers what they expect from a coffee chain even if this concept turns out to be very expensive, which is unviable for many companies to stay in the business and difficult to expand. But Starbucks is doing just that. The world's largest coffee chain is positioning itself as an aspirational brand in India where people consume tea more than coffee, and is going over the top with its stores, some of the expensive it's opened anywhere…show more content…
However it gives Starbucks’ a relatively fair positioning with regard an emerging cultural trend shift because of the growing disposable income amongst the young masses, thereby presenting a profitable target audience. According to census figures the the country’s major population consists of more than 60% of the people between the age of 15-59. Also with the advent of westernization in the social trends, & entry of global players young people in particular, trust premium global western brands and rely on their services. They look for the same trends and try to imitate the status quo of the exclusivity young people in the US and Europe exhibit. This places Starbucks at a very dynamic position, where it has a good opportunity and greater possibility to capture quick customers. The only problem is that they will not be the first movers in the market in the specialty tea-coffee offering. Their leadership position could upheld and sustained by their brand image…show more content…
In 2006 the middle class in India were around 250 million and is now growing in urban areas. All, these factors show that Starbucks has a even more larger target group which is aspirational, willing and able to pay premium price for a high quality western brand. Starbucks has the potential to skim through the Indian market, because of its positioning and brand image. On the other hand, in order to gain market share, Starbucks can go with minimal price reduction strategy, but not below the competition’s levels and by maintaining healthy profit margins. This can be possible since Starbucks has coffee at its disposal from a local supplier. Primary Target Market: The Primary target market for Starbucks Coffee Co. in India is the youth population both male and female in the age group of 16-38. This market is well educated, Fun loving & can afford the brand offerings. And there is the aspirational middle class climbing the up ladder to upper middle class population. Since our locations are close to the newly opened call centers where all working & well affordable consumers work, special marketing strategies will be used to gain their brand loyalty for Starbucks. The geographies of the target market are mainly consumers who live or work in the vicinity of the two proposed locations for the Starbucks Coffee
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