Project3ThegrowthstrategyofthecompanyStarbucksinIndia“Wearen’tinthecoffeebusiness,servingpeople,Weareinthepeoplebusiness,servingcoffee"-------------HowardSchultzCEOMC1y2,2ndSemesterAPDegreeMarketingManagement2010Counsellor:GitteOvesenBeierholmGroupmembers:CristinaAlexandraGrindei,AlishaKhatri,YunjingLu,ListofContents1.Introduction……………………………………………………………………………………………………..….32.Problemformulation………………………………………………………………………………………..….33.MethodologyandLimitation………………………………………………………………………………..34.MacroandmicroAnalysis………………………………………………………………………………..…..4-4.1Countryprofile……………………………..………………………………………………………………....4-4.2Companyprofile…………………………………………………………………………………………….....5-4.3FinalDecision…………………………………………………………………………………………………..75.Recommendation……………………………………………………………………………………………………….….7-5.1Entrymode………………………………….…………………………………………………………..……….7-5.2Segmentationandtargetmarket……………………………………………………………….……….9-5.3Suggestedpositionandlocation………………………………………………………………………..10-5.4SuggestedValuechain…………………………………………………………………………………..…..116.Conclusion………………………………………………………………………………………………………..….127.Reference……………………………………………………………………………………………………….…….138.Appendix………………………………………………………………………………………………….…….……141.Introduction:StarbucksCorporationhasbeenthemostsuccessfulcoffeechaininthepastyears.ThecompanyhasfocusedoncreatinganetworkofstoresinUSwhileopeningnewlocationsaroundtheworld.Nowadays,therecessioniseffectingtheeconomyoftheentireworldbadly,noexceptionforthecoffeemarket.Starbucks,asthecoffeechaingiant,isseekingforanewmarketinordertokeeptheleaderpositionintheindustry.Meanwhile,attheothersideoftheworld,inIndia,acountryknownfortheteaconsumption,coffeeisbecomingmoreandmorepopular.AccordingtoEuromonitorInternational,in2009,thetotalvolumeofcoffeeintheIndianmarketwas44,209.8tones,thefifthlargestcoffeeconsumptioncountryintheworld.SoisIndiaapossiblefuturemarketforStarbucks?2.Problemformulation:StarbucksisconsideringgoingtoIndia.HowcanStarbucksentertheIndianmarket?IsIndiaanattractivemarketforStarbucks?WhatcouldbethebestentrymodeforStarbucksinIndia?3.LimitationandMethodology:Thelimitationsoftheprojectarethepagelimitandtherestrictionincontactingthecompany.Regardingthecompanydata,thelimitationisinfocusingontheentireproductrangeofStarbucks,soasaconsequencewehavechoosetofocusonlyonthetwomainproducts:coffeeandtea.Wehaveappliedsecondarydatasources/quantitativedatasources.Theresearchmethodwasthedeskresearch.Thetheoriesusedintheprojectare:themicroandmacroanalysis,theSWOTanalysis,theentrymodeanalysis,segmentationandpositioning,targetmarketandvaluechain.Wehaveusedthetheoriestocreateanoverviewofthesubjectfieldandapplyitforsolvingtheprojectproblemformulation.4.Macroandmicroanalysis4.1CountryprofileEconomyIn1991,theIndianeconomyexperiencedadramaticallygrowthafterthegovernmentliberalizednumberofindustri...