How Starbucks And TATA Merger gets Success In India

The Starbucks company and the business model of Starbucks

Starbucks is an American coffeehouse chain. It is a coffee company that serves products such as hot and cold drinks, fresh juices, VIA, whole bean coffee, full-leaf tea, loose-leaf tea, Latte, cappuccino beverages.

It also offers snacks such as cakes, Pastries, Yoghurt, etc.

On March 30, 1971, Starbucks was founded by Jerry Baldwin, Zev Siegl, Gordon Bowker. The headquarter is located at 2401 Utah Avenue South, Seattle, Washington. The CEO of the Company is Kevin Johnson. The total revenue of this Company in the US is $26.50 billion (2019).

The number of employees is 349,000.

● Starbuck as an Indian company

Tata Starbucks private limited, formally referred to as Tata Starbucks limited, may be a 50:50 joint venture company that is owned by Tata consumer products and Starbucks corporation.

Sushant Dash is the CEO of this industry in India. It was founded on October 19 2012. The headquarter is located in Maharashtra, India.

The owner is Starbucks Corporation (50%) and Tata Consumer products (50%).

The total employees are 1200+.

● Most popular drinks of Starbuck

1) Vanilla Latte

2) Ice white chocolate mocha

3) Pumpkin Spice Latte

4) Cinnamon roll cappuccino blended coffee

5) Java chip frappuccino

6) Hot chocolate

7) Green tea creme frappuccino blended creme

Darkly roasted coffee is the famous coffee of Starbucks. The coffee makers use an automated espresso machine to make coffee, and it does so for the safety of its employees.

That’s how Starbucks differentiates itself between Starbucks and other companies.

● The business model of Company

Starbuck’s business model revolves around channelizing this American coffee company and coffeehouse chain in additional than 30,000 locations around the world.

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Structure of Starbuck business model –

Firstly, Company has expanded its business with different items like iced coffee, coffee latte, etc. Then, the employee was trained to produce excellent customer service.

After this, the living-room-style spaces were introduced to make a singular customer experience.

● Business Segments

It has four major business segments

1) America – This segment accounts for 69% of the company’s sales.

This segment includes the U.S., Canada, and geographical regions.

2) Europe, Middle East, and Africa –

This segment covers around 6% of the overall sales of Starbucks.

3) China and the Asia Pacific (CAP)-

This segment brings 13% sales for the corporate.

4) Channel Development – This segment brings 9% of the total sales. It consists of Tazo branded single-serve products, roasted whole bean coffee, etc.

● Key Factors of Starbuck Business model

1) Premium products – Starbucks never compromises its quality and charges premium prices for its services.

2) Differentiated cultures – The culture of Starbucks is clearly defined that including its partners, coffee, and customers, for creating a welcome culture with plenty of love, warmth, and belonging.

3) Top-Notch supply chain – The availability chain of Starbucks is moral and adeptly managed. Starbucks features a target of achieving 100% ethically sourced coffee target, which was 99% last year.

4) Best suited customer service – Starbucks employees get unique customer service training so that they can provide classy service to their customers.

5) The proper use of owned and franchise stores – Starbucks is very good at ensuring the perfect mix of company-owned and franchise stores, which also plays a key role in ensuring profit-driven global expansion for the Company.

● The Essential elements of Starbucks’s business model

1) Starbucks’ customer segmentation makes and sells coffee to anyone who wants to possess a singular and high-quality coffee.

2) Value propositions of Starbuck business model-

It has four value propositions –

Innovation – It uses only high-quality beans and designs innovative products for its customers.
Convenience – an online facility is available to order Starbucks coffee through the Starbuck app.
Accessibility – Starbucks works on availability by making a good range of products readily available to its customers.
Status – It has won many awards, and its name is now used as a synonym for premium quality coffee.

Key activities – Starbucks’s business model covers two main activities.

First, it designs and develops innovative products.

Second, it serves them to the shoppers.

Starbuck is also involved in –

1. Marketing

2. Production

3. R and D

4. Cleaning

● Marketing Strategy

The marketing strategy of Starbucks is unique and creative.

Classic Logo – The classic siren logo helps to attract more new customers.
Brand consistency – The branding of Starbucks is almost perfect.

Including advertising, the atmosphere in their stores, digital content, clean and classy cups, and tumblers with modern designs give a Starbucks-like feel to the customers.

If we are talking about making cash, Starbuck has three different sources of revenue –

1. Coffee shops

2. Convenience stores

3. Grocery store

● Conclusion

Starbuck is a very successful business. It is an ideal marketing strategy, consistency, hard work, and top-notch consumer service. Its reviews also are fantastic, and it has everything perfect, so that’s why it is the largest coffeehouse chain in the world.

Its products are also available on its official site. Everyone should visit this and luxuriate in the delicious taste of coffee.