Access Strategy – Tata Starbucks India

Develop an Innovative Marketing Initiative Using the Access Strategy

Company

Select a company or a business of a company. Why did you choose this company? What is the business challenge that you aim to solve with the Access strategy?

Tata – Starbucks India (Starbucks)

Company: The Company picked up is Tata-Starbucks India, A joint venture between Tata and Starbucks. Naturally the business is coffee business.

Why Starbucks? : Starbucks launched its first store in 2012 and over all they have only around 100 stores across India.  The targeted customer segment is youth, both male and female, age group between 16 -38 years. The Starbucks is very successful in US, Japan, UK and Germany. China has the highest population and Starbucks is more successful in China market than US in terms of revenue and profit. Starbucks strategy is to repeat the same China success in the second largest populated country India. However Starbucks has been posting losses right from year one and the company reportedly had posted a net loss of Rs 30.5 crore in FY18 in India.Business challenge: Being a very successfully brand in the world, Starbucks in very slow in expanding the market in India. They have shops only in 6 major cities in India. At the same time, Coffee Day and Barista coffee are very successful in India. The revenue growth through market expansion is the business challenge Group 37 is going to solve

Business Objective

What is your specific business objective? Is it changing the brand image, repositioning the brand, driving sales, generating leads, or something else? Explain why you chose this strategy.

Business objective: the business objective is to improve sales through repositioning the brand, expanding the market to tier two cities and  to gain market share.

Why this Strategy? : Starbucks India has been in existence for 6 years and has little over 100 stores across 6 metro cities.  If we look at other countries like Japan, US etc, star bucks coffee is a common man’s coffee, available in every nook and corners. In 2018, there were 14,606 Starbucks stores in the U.S. and the US population is under 327Mn. The Starbucks India market share is very negligible even after 6 years and they are consistently reporting losses. Starbucks India has to revisit their strategy to expand their business and to become profitable.

the assignment covers various access strategies to improve Starbucks India market share.

Target Audience

Who is your target customer? Think about the types or segments of customers that are most relevant to achieve the business objective. Break down your target segments and address their particular needs and characteristics.

Digital Innovation

What is your digital innovation using the Access Strategy? Some approaches to consider include on-demand services, location-based services or geo-fencing, mobile wallets and loyalty, solving a moment of need, omni-channel integration, and wearables. Provide details of your strategy.
Here are some recommended digital innovation strategies for expanding Starbucks in India
Solving a moment of need – Enable instant ordering thru app
Enable ordering from Starbucks app to the nearest  starbucks store (if they are in <1km range) and they can walk in and pick up
Tie up with food delivery partners (Swiggy, Uber eats, Zomato etc), integrate thru API to enable in app orders with delivery by one of these players.
Geo-Fencing – Send discounts and offers for people coming with a certain distance range of Starbucks. (Combined with earlier on demand ordering it will enable higher sales)
Use of ibeacons to engage the target audiences with real time marketing offers
Enhance loyalty program
Free coffee after ‘x’ number of coffee
Attractive rewards redemption options by tying up with more partners
Discounts for select corporate customer base 
Enhance and enable a customized customer experience thru starbucks phone app
Provide more information/background on their coffee
Coffee picking guide that helps customers choose the right coffee that suits their needs
Enable them to Customize and order the coffee from the app
Build your own custom coffee recipe and order it
Improve Customer Engagement
Enable customers to share new coffee recipes with the community and enable voting, likes, comments, share etc.
Enable customers to share their Starbucks moments, quotes, reviews etc thru the app
 
Support for Innovation Success
Internal
Mobile development team to enhance mobile app and add new features
Customer loyalty team to enhance loyalty redemption options by tying up with new partners
Marketing team to drive marketing campaigns, come up with promos/offers etc
Coffee tasting specialists/New flavors creators – To check out customer recipes and see if can be added to their coffee menu
External
Tie up with food delivery partners – Swiggy, Uber eats, Zomato etc
API integration between food delivery apps and starbucks app – where people can order in starbucks app and schedule delivery with a food delivery provider
 
 
Measurement of Success
How will you measure success against objectives? Think about what will validate your success in achieving the business objective. Use SMART metrics (Specific/Measureable/Attainable/Realistic/Time-bound).
Audience Metrics
No of Starbucks app downloads
No of active customers using the app regularly
Demographics of customers using the app
Channel Engagement metrics
Likes and reviews in app store
FB pages likes, Customer posts, shares etc
Web site hits
Average time spent on web site and app
Mentions in Social media like Twitter, FB, Instagram, Youtube etc
Universal Engagement Metrics
Brand Awareness score
Brand sentiment score
Brand Visibility score
Net promoter score
Financial Metrics
Monthly Revenue & revenue growth rate
Monthly Profit and Profit growth rate
Market share
No of net new customers added each month
Repeat customer rate
Average sale/customer/month