(market penetration strategy )star bucks
Post on 27-Oct-2014
806 Views
Preview:
DESCRIPTION
TRANSCRIPT
NAME- SUBHRABARAN SANYAL Reg.no-1006247049 MBA(2010-12)* Sec A REGIONAL COLLEGE OF MANAGEMENT(A) ,
Starbucks World leader in Coffee Shops, but still potential for more
Starbucks Market Penetration Strategy
INTRODUCTION Almost 8200 tones of coffee produced in India each
year. Indian coffee is the finest in the world India produces only 4.5% of the total production in
the world. Almost 80% of the countrys coffee production is
exported
Coffee consumption in INDIA
Coffee market in INDIA
Potential for new coffee outlets in India
Coffee consumption in India on the rise. More than 3500 outlets in the organized sector
today. Retail brands say that more 3000 to 5000 outlets
needed. Huge demand in India needing higher
penetration.
Porters Five ForcesNew Entrants
The competition on the coffee market is quite high A unique strategy is important to attract customer
Threaths of New Entry + High economies of scale (coffee import) + Brand awareness - No special knowledge needed (using coffee machine) - Low capital requirement
Established Rivals - Mature market - Many competitors with little differentiation (CCD, Barista etc.)
SuppliersSupplier power + Low bargaining power cause many coffee bean producer (Indonesia, Brasil ,India etc.) Threat of Substitution - Tea, Hot Chocolate
Intensity of rivalry
BuyersBuyer power + Buying power of a single person is low, buy only little quantity - Low switching cost
Substitutes
Industry leader perspectives50% believe that branded chains will gain over independent operators.
62% of industry players observe decreasing spend per visit as consumers cut back on spending.
How can Starbucks profit from this growing market and the perspectives? In which direction does Starbucks have to go to Expand in India?
STARBUCKS
The Perfect Blend
Starbucks The brandCompany started in 1971 in Seattle in Washington, U.S. Leading retailer, roaster and brand of specialty coffee in the world Sells drip brewed coffee, expresso-based hot drinks, snacks, mugs and coffee beans. Made alliance with TATA to start operation in India in 2011.
SWOT-StarbucksStrength Famous brand which is associated with high quality People like Starbucks atmosphere Starbucks has many outlets and often is in high class locations Well trained and treated employees Weakness: High price products Coffee quality is not as good as reputation Aggressive expansion Unhealthy products
Opportunities: Launching new products/product extension (e.g. tea, healthy, premium, co-branding) Capturing new markets (retailing) and new consumer groups Selling more whole coffee beans and equipment Develop in non high street areas
Threats: Growing competition within the Coffee Outlet industry and new competition from Fast Food restaurants Lack of ownership of coffee farms Global crisis/financial resources
SegmentingSegments in Coffee Market India Age Coffee Starters Young Adults Middle Age Higher Age Gender Male Female (sweet, low calorine) Income Low Income Medium Income Higher Income Psychographic (coffee) Coffee as lifestyle product Coffee Lovers Coffee as drink Coffee as caffeine donor Psychographic (place) Coffee Outlet as a good place to be Atmosphere lovers Coffee outlet as a place to buy a a coffee and consume it
TargetingTargeted segmentsAge: Young adults
Customer NeedsNice place to relax, chat, chill music Trendy coffees which present their lifestyle
Age: Middle age
Place to calm down, relax, chat, read a book Possibility for a small (healthy) snack with a great coffee
Psychographic: Coffee lovers
Trendy, fresh, high quality, new developed coffee (some: fairtrade) A great third place
Psychographic: Atmosphere lovers
PositioningTargeted segment Young adults Customer Needs Nice place to relax, chat, chilly music Marketing Strategy
Trendy coffees which present their lifestyleMiddle age Place to calm down, relax, chat, read a book Possibility for a small (healthy) snack with a great coffee Coffee lovers Trendy, fresh, high quality, new developed coffee (some: fairtrade) A great third place
Starbucks The Perfect Blend
Atmosphere lovers
Possible strategic choicesReduce priceBut: Conflict with high quality standard that people expect when they buy a Starbucks coffee.
Market Development and Diversification Starbucks is already a global player and active in 44 countries worldwide9Produce more Indian flavours.
Starbucks is famous for its overall quality. The Perfect Blend is the right answer!
Goals and how to measure themShort termGoals Introduce in Indian market How to measure? Comparison with other brands
Goals
How to measure? Revenue/profit per product
Medium term
Launching new products
People stay longer at StarbucksPurchase by customer raise Reduced waiting time and better service
Average in store timeAverage purchase by customer Average waiting time at counter + survey
Long term
Goals Keep & dominate position in India Quality leader in all points
How to measure? Number 1 in market share Through Survey
RisksStarbucks as a Franchiser Can all shops serve the high standards? Will the development of coffee as a lifestyle product go on?
Will people accept to pay an adequte price for high quality products?Will actual users like the new concept or stay away?
CONCLUSIONStarbucks, its brand and products are at the Introduction stage of the PLC Change in a more and more competive market is essential. The Perfect Blend will give Starbucks a new, unique and future orientated brand image
Thank You
top related