SLarbucks-1A1A Alllance MarkeLlng SLraLegy

8y MarLlna kancheva
unlverslLy of 8aLh










"
Accordlng Lo Lhe Parvard 8uslness School, afLer 5totbocks flrsL enLered one of Lhe mosL Lea
lovlng counLrles (Lngland) ln 1998, Lea sales fell even as coffee sales rose rapldly. 8y 2008,
annual sales of coffee ln 8rlLaln had exceeded sales of Lea. lndla, where SLarbucks plans Lo
peneLraLe Lhls year, ls also noL a hablLual coffee drlnklng naLlon. 1he currenL paper alms Lo
propose a sLraLegy for enLerlng Lhe lndlan markeL whlle Lhe Laklng lnLo accounL local LasLes
and llfesLyle.

1he analysls begln wlLh an overvlew of Lhe lndlan Coffee 8eLall MarkeL, conLlnues wlLh
examlnlng Lhe sLrengLhs of Lhe 5totbocks brand and Lhe beneflLs of a [olnL venLure wlLh Lhe
lndla's largesL coffee producer and exporLer. 1he reporL wlll flnally propose Lhe mosL
effecLlve markeLlng sLraLegy for SLarbucks Lo enLer Lhe lndlan coffee lndusLry and geL a plece
of Lhe 'markeL ple'.

1. S|tuat|on Ana|ys|s of the Ind|an Coffee keta|| Market

As coffee shops may be nearlng saLuraLlon polnL ln Lhe uS and Lurope, 5totbocks has
ldenLlfled Lhe poLenLlal Lo expand ln emerglng markeLs llke Chlna and lndla. 1he coffee
lndusLry ls expecLed Lo conLlnue growlng Lhrough aL leasL Lhe year 2013 and even longer ln
emerglng markeLs (Llngle 2007).

As Lhere no framework LhaL provldes a full
plcLure of Lhe dynamlcs wlLhln a parLlcular
markeL, a more hollsLlc approach wlll be
adopLed. Lconomlc, Legal and Soclo-culLural
facLors wlll be examlned from a LS1LL analysls
and Lhe ower of Suppllers, Lhe 1hreaL of
CompeLlLors and Lhe 1hreaL of SubsLlLuLes from
Lhe orLer llve Model.
llctote 1. lottets llve lotces MoJel
1.1. Lconom|c Iactors

#
1he lndlan economy wlll expand an esLlmaLed 6.3 percenL Lhls year, Lhe fasLesL pace among
developlng Aslan economles excludlng Chlna, accordlng Lo !anuary esLlmaLes from Lhe World
8ank (Agrawal and Sharma, 8loomberg 2012). 1he 8eserve 8ank of lndla pro[ecLs seven
percenL growLh for Lhe Lwelve monLhs endlng March. As sales conLrlbuLlon ln Lhe uS has
decllned ln Lhe pasL decade Lo less Lhan 70 ln Lhe lasL flscal year, 5totbocks ls expandlng ln
fasL developlng markeLs llke Chlna and lndla.

lndla ls one of Lhe emerglng markeLs LhroughouL Lhe world LhaL ls becomlng a spendlng
orlenLed counLry. 1he personal dlsposable lncome per caplLa ln lndla has doubled beLween
2000-01 and 2009-10 resulLlng ln lmproved purchaslng power (uelolLLe 2011). 1hus, lLs
upper and mlddle classes are more able Lo spend money on coffee, beverages and food ln
coffee houses LhaL mlghL noL have been Lhough of as a necesslLy ln Lhe pasL.

1.2. Lega| Iactors

lndla's governmenL on !anuary Lhe 10
Lh
ralsed Lhe ownershlp llmlL Lo 100 for forelgn
reLallers selllng a slngle brand, a declslon beneflLlng companles lncludlng 5totbocks
(assporL, LuromonlLor 2011). Powever, 5totbocks and 1A1A wlll possess equal shares ln Lhe
venLure as boLh companles wlll boLh beneflL from such an alllance.

1.3. Soc|o-Cu|tura| Iactors

lndla ls a LradlLlonal Lea drlnklng naLlon" (vasudha 2011, pp. 2) whlch ls proven by Lhe facL
LhaL 69.9 of Lhe hoL drlnks markeL ls domlnaLed by Lhe Lea lndusLry (llqote 1).


$

llqote 1. loJlo not utloks Motket 5eqmeototloo


Lven Lhough ln lndla Lea was Lhe common beverage for Lhe upper and mlddle classes, now
coffee ls becomlng a sLaLemenL of wealLh and prosperlLy among Lhe LradlLlonal secLor of Lhe
lndlan populaLlon, l.e. people more reslsLanL Lo changes (aged above 30) (8ose, 8euLers
2012). 1hls phenomenon mlghL be explalned by Lhe facL LhaL as more and more economles
head Lowards lndusLrlallzaLlon, Lhose economles also begln Lo be lnfluenced by
wesLernlzaLlon.

WesLernlzaLlon ls also easlly adopLed by Lhe younger generaLlon ln lndla (18-23 years).
8esearch shows LhaL 72 of coffee shops cusLomers are sLudenLs and young professlonals
(LuromonlLor 2011). 1he popularlLy of speclallsL coffee shops among youLhs as a place Lo
soclallse reglsLered 18 growLh ln 2010, wlLh average Llme spenL on a Lable hlgher LhaL ln
oLher counLrles. Spendlng capaclLy of youLh of lndla ls lncreaslng, as well as Lhelr brand
consclousness. 60 of lndla's populaLlon ls below Lhe age of 30 leadlng Lo popularlzaLlon of
brands and producLs (uelolLLe 2011).

As lllusLraLed above, Lhere ls a markeL poLenLlal sub[ecL Lo 'dual economles', l.e. LargeLlng
boLh Lhe modern secLor (youLhs) and Lhe LradlLlonal secLor (naLlonallsLlc lndlvlduals reslsLanL
Lo changes) (nuLLall 2011).

%
ln Lhe process assesslng Lhe growLh opporLunlLles ln Lhe speclalLy coffee lndusLry, one musL
also examlne Lhe compeLlLlve landscape.

1.4. 8arga|n|ng ower of Supp||ers

1he ma[or LhreaL ln Lhe speclalLy coffee lndusLry ls Lhe power LhaL suppllers have over Lhe
prlce of coffee. Arablca coffee prlces soared 77 ln 2010 whlch caused concerns Lo coffee
reLallers (Murphy 2011). Arablca coffee ls one of Lhe mosL sold brands of coffee ln Lhe
speclalLy coffee lndusLry. WlLh prlces for LhaL Lype of coffee sky rockeLlng, lL hurL Lhe boLLom
llne of compeLlLors, especlally Lhose LhaL Lhrlve on a low cosL sLraLegy. Powever, 5totbocks
sLraLegy can be regarded as 'charglng premlum prlce for premlum producL', and lL ls
supplylng coffee form Lhelr parLner, so Lhe power of suppllers can be regarded as weak.

1.S. Compet|t|ve k|va|ry w|th|n the Industry

1he second LhreaL ls from speclalLy coffee compeLlLors LhaL SLarbucks wlll face when lL
enLers Lhe lndlan markeL. Well-esLabllshed coffee shops chalns, such as Cafe Coffee uay
(CCu) and 8arlsLa, enhanced Lhelr pan-lndla presence ln 2011. ln 2010, CCu and 8arlsLa had
970 and 200 sLores, respecLlvely, and Lhey alm Lo conLlnue expandlng ln Lhe nexL few years
(uaLamonlLor 2010). Meanwhlle, several relaLlvely new players, such as CosLa Coffee, Coffee
8ean, Clorla !ean's and !ava Coffee, are Lrylng Lo 'geL a plece of Lhe ple' ln lndlan coffee
reLalllng. 8oLh Lhese facLors drove on-Lrade consumpLlon of fresh coffee beans ln 2010, wlLh
volumes growlng by 12 (uaLamonlLor 2010). Cn-Lrade sales have emerged as Lhe prlmary
sales channel for fresh coffee beans, ln Lhe absence of any subsLanLlal off-Lrade
consumpLlon. Powever, Lhe popular oplnlon was LhaL wlLh only abouL 1 300 cafes Lhe ln8
20 bllllon markeL provlded enough room for growLh and could accommodaLe more players."
(vasudha 2011) Lven LhaL ma[or players sLarLed expandlng, Lhere ls poLenLlal for furLher
growLh ln Lhe lndlan Coffee 8eLall MarkeL.



&
1.6. 1hreat of Subst|tute roducts

A Lhlrd relevanL LhreaL ln Lhe case of SLarbucks enLerlng lndla ls Lhe LhreaL of subsLlLuLe
goods. lor lnsLance, consumers may opL Lo reduce Lhelr caffelne lnLake due Lo healLh
concerns, whlch wlll lnfluence coffee consumpLlon somewhaL. ln such case, herbal Lea and
funcLlonal drlnks can be poLenLlal subsLlLuLes. Powever, conslderlng Lhe lncreased
consumpLlon of coffee ln recenL years, lL ls unllkely LhaL such subsLlLuLlon would
subsLanLlally lmpacL upon sales. Cverall, Lhe LhreaL of subsLlLuLes ln Lhe lndlan coffee markeL
mlghL be consldered as moderaLe.

2. Starbucks

1hls secLlon alms Lo examlne Lhe sLrengLhs of Lhe 5totbocks brand and crlLlcally evaluaLe Lhe
raLlonale behlnd Lhelr alllance wlLh 1A1A.

2.1. SWC1 Ana|ys|s

SWC1 analysls wlll be used Lo evaluaLe 5totbockss SLrengLhs, Weaknesses, CpporLunlLles
and 1hreaLs.

Strengths

' Leadlng reLaller and roasLer for brand
speclalLy coffee ln Lhe world,
' 8rand lmage wlLh Lhe moLLo '1he
SLarbucks Lxperlence',
' 17 000 sLores across 37 counLrles, 1 300
ln Chlna alone,
' SLrong balance sheeL,
' Cne of Lhe sLrongesL franchlses ln Lhe
world wlLh more Lhan 6 300 llcenses
Weaknesses

' Plgh prlclng whlch noL everyone can
afford,
' SLarbucks refuses Lo guaranLee LhaL mllk,
beverages, chocolaLe, lce cream, and
baked goods sold ln Lhe company's sLores
are free of geneLlcally-modlfled
lngredlenLs,
' locused more on uS domesLlc markeL,
' SLarbucks Workers unlon was made
(
shops ln Lhe world,
' SLarbucks ls known for provldlng superlor
producLs and servlces,
' Pave loyal cusLomers ln every counLry
LhaL has enLered,
' SophlsLlcaLed aLmosphere, muslc,
lnLerlor deslgn and arLwork,
' Pave a loL of flavours varlaLlon,
' LlmlLed number of sLrong compeLlLors,
' Plgh markeL share and markeL growLh.
because some employees complaln
abouL Lhe managemenL sLyle wlLhln Lhe
company,
' no experlence ln counLrles llke lndla.
Cpportun|t|es

' Plgh consumerlsm ln emerglng markeLs,
' Lasler Lo peneLraLe markeL because
SLarbucks ls selllng as experlence, noL
[usL a slmple producL,
' Many of SLarbucks coffee are uslng
organlc beans,
' Some of SLarbucks's beans are harvesLed
ln lndonesla lsland of SumaLra and
Sulawesl. SLarbucks are purchaslng aL
premlum prlces Lo supporL local
communlLy and susLalnable producLlon.
SLarbucks pays an average prlce of $1.20
per pound agalnsL Lhe commodlLy
average prlce of $0.40 - 0.30 per pound,
' lalr 1rade roducLs can be offered.

1hreats

' Clobal flnanclal crlsls made people spend
less on good LhaL are noL regarded as
necesslLles,
' lncreaslng healLh concern of Lhe negaLlve
effecL of coffee,
' SLarbucks domlnaLlon ls drlvlng small
cafes ouL of Lhe buslness,
' 1hreaL of subsLlLuLe producLs ln culLures
where Lhere ls a sLrong preference for
Lea, llke Chlna, lndla and uk.

1oble 1. 5totbocks 5wO1 Aoolysls

AfLer examlnlng Lhe sLrengLh of Lhe 5totbocks company, one should examlne Lhe sLrengLhs
of Lhe [olnL venLure LhaL 5totbocks wlll enLer wlLh 1A1A Clobol 8evetoqes Ctoop.
)
2.2. 1he Io|nt Venture w|th !"#"

SLarbucks enLerlng lnLo Lhe lndlan markeL wlll be ln Lhe form of 30/30 [olnL venLure wlLh Lhe
1A1A Clobol 8evetoqes Ctoop. Share prlces of boLh companles soared followlng Lhe
announcemenL of Lhe pacL." (vasudha 2011, pp. 10) 1hls ls Lhe flrsL Llme 5totbocks ls
enLerlng Lhe markeL wlLh a local parLner and wlll be co-brandlng Lhelr sLores and producLs
wlLh Lhelr counLerparL. 1he lndlan ouLleLs wlll be called 5totbocks 1A1A Alllooce. 1he
parLnershlp wlll enable an expanded range of beverage offerlngs for lndlan consumers. Cne
of Lhese belng Lhe SLarbucks's premlum Lea producL 1ozo LhaL wlll be avallable ln lndlan
ouLleLs renamed as 1A1A 1ozo 1eo.

1he ma[or advanLage of Lhe alllance wlll be LhaL Lhe knowledge and undersLandlng of Lhe
lndlan markeL can be broughL by 1A1A Clobol 8evetoqes." (vasudha 2011, pp.10) LnLerlng
lnLo a sLraLeglc pacL wlLh Lhe world's largesL lnLegraLed coffee planLaLlon company" should
enable SLarbucks Lo ensure susLalnable proflL growLh ln lndla. Also, 1A1A 1eo ls Lhe Lea
markeL leader wlLh 18.4 share. 5totbocks wlll also beneflL from 1A1As experlence ln Lhe
lndlan markeL regardlng dlfferenL LasLes ln dlfferenL reglons, Lhus maklng sure lL offers Lhe
mosL preferable blend of boLh Lea and coffee Lo cusLomers.

AparL from producL and local preferences knowledge, 5totbocks wlll beneflL from 1A1A
Clobols lnfrasLrucLure. ln lndla, Lhere ls Lhe challenge of balanclng hlgher renLals and
proflLablllLy glven Lhe lack of lnfrasLrucLure ln lndla along wlLh lnflaLlng real esLaLe prlces.
5totbocks ls a sLep ahead of compeLlLors due Lo Lhelr alllance wlLh 1A1A Clobol Ctoop. 1A1A
has a local knowledge on Lhe real esLaLe markeL and Lhey have opporLunlLles Lo leverage
Lhelr capablllLles ln Lhls area. 5totbocks wlll be able Lo use 1A1As currenL lnfrasLrucLure Lo
effecLlvely grow Lhe buslness.

1A1A Ctoop wlll also beneflL from Lhe pacL. 1A1As experlence ln reLalllng ls noL sufflclenL Lo
open a coffee reLall shop on Lhelr own, so, by enLerlng ln such alllance Lhey wlll galn a vasL
amounL of knowledge. Also, 1A1A Clobol 8evetoqes produces boLLled Plmalayan waLer
whlch mlghL be offered ln 5totbocks sLores around Lhe world.

*
5totbocks should also conslder Lhe posslble dlsadvanLages of such [olnL venLure. AfLer
galnlng enough knowledge ln reLalllng lndusLry and knowlng Lhe lndlan markeL beLLer, 1A1A
mlghL declde Lo compeLe wlLh 5totbocks lnsLead of worklng wlLh Lhem. ln addlLlon, poLenLlal
confllcL mlghL occur regardlng Lhe sLraLegy of Lhe alllance and how lL should be managed.
Such [olnL venLures mlghL also accrue slgnlflcanL cosLs of conLrol and coordlnaLlon, and on
Lop of LhaL, proflL ls shared wlLh a parLner.

3. Market|ng Strategy

1he Parvard 8uslness School lramework (llqote 2) (Comrle 2012) wlll be used as a model Lo
explaln Lhe markeLlng sLraLegy ln Lhe currenL proposal.

llqote 2. notvotJ 8osloess 5cbool ltomewotk

1he markeLlng analysls was conducLed ln Sectloo 1.


+,
3.1. Capture Va|ue

ln Lhls secLlon, Lools and Lechnlques wlll be used Lo explaln how 5totbocks can creaLe and
capLure value for Lhelr producLs.

3.1.1. Market Segmentat|on

AparL from Lhe demographlc characLerlsLlcs presenLed ln parL one of Lhe analysls, markeLers
should also conslder psychographlc varlables such as lnLeresLs and llfesLyles. ln general,
lndla's coffee culLure has changed Lhe way young lndlans soclallse. ln a counLry where Lhere
ls a llmlLed bar culLure, and where drlnklng alcohol ls sLlll noL allowed ln many clrcles, lL has
provlded an accepLable and safe ouLleL for people, parLlcularly young lndlans, Lo share a
drlnk (valdyananLhan, 88C 2012).

As menLloned earller, coffee ls becomlng a sLaLemenL of wealLh and prosperlLy among
people wlLh hlgh dlsposal lncome, l.e. lndlvlduals ln employmenL.

3.1.2. 1arget Market Se|ect|on

1he markeLlng sLraLegy wlll focus on LargeLlng boLh groups - college and unlverslLy sLudenLs
(aged 18-23) ln Lhe shorL Lerm and worklng professlonals (23-40) ln Lhe medlum Lo long run.
Also, LourlsL and frequenL flyers wlll be a LargeL audlence ln Lhe long-run.

3.1.3. roduct and Serv|ce os|t|on|ng

lL ls essenLlal Lo have a unlque selllng polnL Lo poslLlon 5totbocks above compeLlLors
(lckLon 2003). ln 1A1A-5totbocks cusLomers wlll be able Lo rely on genulne servlce, an
lnvlLlng aLmosphere and a superb cup of premlum coffee or Lea every Llme.



++
3.2. Set Market|ng Cb[ect|ves

ln order Lo make Lhe markeLlng communlcaLlons ob[ecLlves as comprehenslve as posslble,
Lhe SMA81 approach has been used, Lo ensure Lhe ob[ecLlves are speclflc, measurable,
achlevable, reallsLlc, Llmed and LargeLed:

1be ptoposeJ sttoteqy ptovlJes o ploo fot 1A1A-5totbocks to opeo 50 stotes by tbe eoJ of
2012 lo mojot metto cltles ooJ secooJ-tlet towos offetloq ptemlom coffee expetleoce to tbe
ptlmoty totqet qtoop of stoJeots (oqeJ 18-25) ooJ wotkloq ptofessloools (oqeJ 25-40).

3.3. Market|ng M|x (4 s)

1he markeLlng mlx wlll be examlned Lo deLermlne 5totbocks-1A1A unlque selllng polnLs, l.e.
Lhe unlque quallLles LhaL wlll dlfferenLlaLe Lhelr producLs and servlces from Lhose of
compeLlLors.

3.3.1. roduct

Anll uharker (2012), a Mumblan columnlsL and soclal commenLaLor ln lndla, polnLs ouL LhaL
when a forelgn player sees a commerclal opporLunlLy and enLers Lhe new markeL, and Lhen
lL adapLs glvlng McuooolJs as an example (valdyanaLhan, 88C 2012). Powever, Lhls should
noL be Lhe case and SLarbucks should have a clear sLraLegy abouL Lhelr producL range (boLh
drlnks and food) lL ls golng Lo offer prlor enLerlng Lhe lndlan markeL. costo coffee 5bops ln
lndla, for lnsLance, offers producLs llke Apple le LaLLe, LaLLe CaramellaLo, CoconuL PoL
ChocolaLe, eLc. sulLed for lndlan LasLe (CosLa Coffee lndla onllne 2012). 1herefore, 5totbocks
should adapL Lhelr drlnks ln order Lo caLer local preferences. lce coffees should also be
lncluded ln 5totbockss menu as lndlans have a sLrong preference for Lhem because of hlgh
LemperaLures durlng summer.

Powever, one should noL lgnore Lhe facL LhaL lndla ls a Lea lovlng counLry even Lhough
people prefer Lo consume Lea aL home because flndlng a perfecL cup of chal ouLslde ls
+"
really Lough," sald SmlLl Slngh, a 8angalore-based sofLware englneer, who drlnks aL leasL
four cups of Lea a day (Madhok, 8euLers 2012). 1A1A 1eo (a unlL of Lhe sofLware-Lo-sLeel
1A1A conglomeraLe) ls Lhe world's second-largesL branded Lea company, so Lhelr premlum
Lea producLs should be also offered Lo cusLomers aparL form Lhe 1ozo 1eo.

1he blggesL dlsLlncLlon ls norLh lndla's preference for bread, meaL, and chal (Lea), compared
Lo Lhe souLh's preference for rlce, pulses, and coffee. lood-wlse, panlnls, sandwlches and
wraps wlLh meaL buL noL wlLh beef. 1he cow ls consldered sacred by mosL Plndus and hence
beef ls consldered Laboo ln Lhe ma[orlLy of lndlan sLaLes. redomlnanL food opLlon ln Lhe
souLh should be Lhe blsLro boxes wlLh rlce and pulses.

3.3.2. |ace

1he flrsL 5totbocks locaLlons are scheduled Lo open ln AugusL ln new uelhl and Mumbal.
1A1A 5totbocks mlghL conslder Lhe opLlon of openlng on Lhe 13
Lh
of AugusL, lndla's
lndependence uay. 5totbocks-1A1A parLnershlp ls expecLed Lo open 30 sLores ln Lhe counLry
by Lhe end of 2012. 5totbocks also plan Lo explore Lhe reLall properLles of Croma, SLar
8azaar, 1renL and lndlan PoLels belonglng Lo Lhe 1A1A Ctoop Lo open sLores and also Lo
rope ln anoLher franchlsee for sLandalone cafes ln Lhe fuLure." (vasudha 2011) 1hls ls an
efflclenL way of LargeLlng lndlvlduals on buslness Lrlps ln new uelhl, for lnsLance, who prefer
Lo go Lo a place whlch ls famlllar for a cup of coffee, or LourlsLs, who do noL wanL Lo
experlence Lhe local culLure. As an lnLernaLlonal brand, 5totbocks should also open klosks aL
alrporLs, Lhus, noL dependlng solely on lndlan LasLes and preferences as alrporLs are
occupled wlLh people from all over Lhe world, who wlll recognlse Lhe 5totbocks logo.

ln Mumbal (mosL populous clLy ln lndla) 5totbocks should poslLlon Lhe sLores malnly ln
shopplng cenLres, clnemas, near unlverslLles or culLural venues as lL ls commerclal and
enLerLalnmenL caplLal of lndla.

Coffee shops normally close around eleven o'clock aL nlghL, so 5totbocks should conslder Lhe
opLlon of closlng aL mldnlghL or even one o'clock ln Lhe mornlng, Lhus, becomlng Lhe
+#
preferred venue for young people. Also, provldlng some gulLar for [am sesslons or karaoke
nlghLs on lrlday or SaLurday may aLLracL even more people.

As coffee chalns are seen as places Lo soclallse and people aged 23-40 wlll be also a LargeL
group of Lhe lndlan populaLlon, 5totbocks may conslder openlng a new Lype of 5totbocks
coffee called 5totbocks loooqe, for example. 1he aLmosphere ln Lhe lounges wlll be more
relaxed and Lhe lnLerlor more expenslve, Lhus wealLhy lndlvlduals wlll be able Lo show Lhelr
class.

ln general, experLs felL LhaL largesL cafe chalns ln lndla llke ccu, 8otlsto coffee and Owlkys
are LargeLlng Lhe same locaLlons, malnly Lhe large clLles. Ceographlcal expanslon has huge
posslblllLles as clLles are noL saLuraLed and Lhe markeL ls noL llmlLlng aL all. 1herefore,
5totbocks-1A1A should alm Lo galn compeLlLlve advanLage ln smaller clLles as well ln Lhe
medlum Lo long rum as people Lhere are more llkely Lo be brand-loyal as opposed Lo
cusLomers ln cosmopollLan clLles.

3.3.3. romot|on

romoLlonal acLlvlLles wlll noL be analysed ln deLalls as Lhey should be ln llne wlLh 5totbocks
promoLlons worldwlde. 8esldes, reLallers ln lndla rely heavlly on word-of-mouLh (personal
communlcaLlon). 1he 5totbocks Card wlll be lnLroduced - a convenlenL way Lo pay for your
drlnks and earn rewards for your purchase. lurLhermore, ln-sLore promoLlons accompanled
by new producLs such as drlnks and accessorles sourced from Lhe reglons" should be presenL
ln lndla as well (vasudha 2011).

Lven Lhough lL ls hlghly unllkely for a coffee chaln ln lndla Lo adverLlse on 1v, 5totbocks
mlghL conslder LhaL ldea. ln Lhe uS, Lhere are Lhree places LhaL Lhe average Amerlcan spend
hls Llme durlng weekdays - aL home, ln Lhe work place and ln 5totbocks. So, Lhey should
somehow show Lhe wesLern llfesLyle Lo Lhe lndlan and a 1v adverLlsemenL aL Lhe day of Lhe
launch should do Lhe [ob.

+$
lurLhermore, lL ls Lhe flrsL 30/30 [olnL venLure for 5totbocks, so, boLh 5totbocks and 1A1A
Ctoop wlll beneflL from co-markeLlng acLlvlLles.

3.3.4. r|ce

PlsLorlcally 5totbocks has reLalned lL uS prlclng model ln almosL every markeL Lhey have
enLered, buL should Lhey follow Lhe same paLLern ln lndla? 5totbocks should adopL Lhelr
prlclng based on Lhe demand form Lhe lndlan consumer. AfLer analyslng analysed Lhe lndlan
markeL for hoL drlnks and Lhe prlce elasLlclLy of producLs, probably Lhe prlces of producLs
should be aL leasL 30 lower Lhan ln Lhe uS.

Conc|us|on

lf 5totbocks can adapL Lo Lhe pecullarlLles of Lhe lndlan markeL, coffee may soon become
many lndlans' cup of Lea.

8ased on Lhe analysls presenLed above, Lhe currenL proposal conLradlcLs LevlLL's
globallsaLlon Lheory suggesLlng LhaL companles musL learn Lo operaLe as lf Lhe world were
one large markeL - lgnorlng superflclal reglonal and naLlonal dlfferences." (LevlLL 1983, pp.
92) ln lndla l&8 and reLall Lyplcally ls very close Lo local culLure and LasLe" (vasudha 2011),
Lhus, Lhe so adapLaLlon or 'glocallsaLlon' sLraLegy should be adopLed (8oberLson 1994).
ClocallsaLlon wlll serve as a mean of comblnlng Lhe successful 5totbocks sLraLegy ln
provldlng Lhe emoLlonal needs around Lhe world" (vasudha 2011) whlle Laklng lnLo accounL
local LasLes.








+%
8|b||ography

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