Starbucks Coffee A Tata Alliance

Presented by: Ratnesh Singh, Rashmi Singh Rohil Kumar, Jaidev Purkayastha Neerav Mehta

Objective of Tata Coffee behind the deal

The agreement will allow Tata Coffee to provide roast coffee bean to Starbucks in India. Get opportunity to jointly invest in additional facility for expert to other market. Starbucks provide new technology to the promotion of responsible agronomy practices. A long term relationship will be formed with this MoU with Starbucks. After this deal Tata Coffee will become Asias biggest publicly traded coffee grower.

Objective of Starbucks Coffee behind the deal

Starbucks aiming to enter in Indian market through this MoU. Starbucks believe that India can be important source for coffee in the domestic as well as global market. The knowledge and understanding of the Indian market can be brought by Tata Global beverages, because it has been in this play for a while. The Tata also have an arm in retail so theres a synergy as well.

BCG Matrix

Ansoffs Matrix
Product
Existing Existing New

Market Penetration

Market

Product Development (Tata Coffee)

Market Development (Starbucks)

New

Diversification

SWOT Analysis
STRENGHTS
High Brand Visibility Superb Marketing and positioning skills of Starbucks Access to TATA's premium Robusta and Arabica coffees Tata as a cultural fit for Starbucks will help in building core competencies of each other

WEAKNESSES
High price of coffee is felt as a barrier in the South and the North The entry of Starbucks is aimed at the out-of-home coffee consumption market and this may affect the alliance of Tata Coffee with Barista Coffee dominant business Certain rigid standards and policies at outlets

OPPORTUNITIES
Huge Market English speaking populations Growing Middle Class and increasing spending power of Indian Population Young Population Rating for coffee outside home is better than tea outside home

THREATS
India is a tea-based culture Home grown brands dominate the retail coffee market Lower per capita income in India Increasing Health Consciousness among consumers Other fast food chains