How Starbucks Adapted Localization For The Indian Market?
TATA Starbucks Private Limited is a 50:50 Joint Venture company between TATA Consumer Products and Starbucks Corporation which brings unparalleled experience to Indian customers.
Starbucks made an alliance with TATA for the Indian Market.
The Starbucks outlets in India are known by “Starbucks: A TATA Alliance”.
Starbucks has a history of adapting localization for its expansion in the foreign markets. Eg.India, China, Japan, South Korea, Saudi Arabia, and much more.
Starbucks localization strategy is a mix of local products with innovative store designs, so they can fully adapt to the culture of the location. It maintains 18 design centers worldwide, which work to understand and conceptualize store designs to reflect the local market.
In this article, we gonna explore How Starbucks Adapted Localization For The Indian Market?
Starbucks in India is localizing its brand and adapting the Indian culture in the following ways.
Design Of Stores
Starbucks made the design of the stores very Indian. The main motive behind it was to make Indians comfortable and have a community feeling inside the outlets.
Mumbai stores have wooden tables with wooden carvings and Pune stores have copper artifacts that honor the copper culture of Pune.
Similarly in Delhi, the stores have the ropework design which was heavily influenced by the local culture.
Introduction Of Indian Flavour
We Indians have the habit of eating along with coffee/tea. So, Starbucks has introduced Indian dishes like Konkani Twist or a Reshmi Kebab Roll in their menu along with other tried and tested muffins and sandwiches
As we Indians prefer tea more than coffee. Hence, Starbucks have introduced Tata’s branded tea called Teavana and Himalayan water beverages to add to the products.
Due to the introduction of these food items in their menu, the revenue from food and beverages is more than 35% in India which is more than 20% higher as compared to the USA.
Keeping Competitive Price
Starbucks kept its price competitive in India as compared to its competitors like CCD, Barista, etc as India is a price-sensitive market. One of the major ways with which Starbucks minimizes its cost is by the help of TATA.
All the Starbucks coffee available in the Indian market is supplied by TATA Coffee. As a result, Starbucks saves a lot of money by not importing coffee.
Conclusion
In this article, we have discussed how Starbucks is adapting localization for the Indian Market. Starbucks is doing so by the design of its stores, the introduction of Indian flavors, and keeping a competitive price.
I have also written an article on “How Starbucks Made An Alliance With TATA For The Indian Market?” where we have discussed Starbucks’ entrance in India, partnership with TATA, its localization methods for the Indian market, mutual benefits of the companies, and their international ventures.
Kindly go and read that article too.
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