Mumbai: When one says coffee, the first name that strikes your mind is Starbucks. A strong brand globally and in India too, Starbucks has carved a name for itself with top-of-the-mind recall.
Starbucks entered the Indian market in October 2012 through a 50/50 joint venture with Tata Consumer Products Ltd. It currently operates 350 stores in India across 45 cities, Mumbai, Delhi, Hyderabad, Chennai, Bengaluru, Pune, Kolkata, Chandigarh, Ahmedabad, Surat, Vadodara, Vapi, Lucknow, Amritsar, Kochi, Ludhiana, Bhopal, Indore, Kanpur, Jaipur, Siliguri, Thiruvananthapuram, Nashik, Guwahati, Bhubaneshwar, Goa, Nagpur, Jalandhar, Anand, Calicut, Patiala, Raipur, Kolhapur, Bhatinda, Dehradun, Udaipur , Vijayawada, Lonavala, Mysore, Ghaziabad, Faridabad, Meerut, Agra ,Aurangabad and Visakhapatnam through a network of over 2,000 passionate partners (employees). Starbucks stores are operated by the joint venture, TATA Starbucks Private Limited, and branded as Starbucks Coffee - A Tata Alliance.
In an exclusive email interaction with Indiantelevision.com, Tata Starbucks director – chief marketing officer Deepa Krishnan spoke about the brand journey, balancing global and local innovations, winning tier II & tier III cities, and more.
As part of her role, Krishnan oversees all aspects of the brand related to digital, social media and other media communication, manages the My Starbucks RewardsTM loyalty programme and is responsible for all the digital initiatives undertaken by the brand.
Krishnan holds a PGDM degree from IMDR (Institute of Management Development and Research). She is a passionate marketer and is constantly studying consumer trends and innovation across categories and is focused on delivering consumer insight with a business impact
Edited excerpts:
On the evolution of the brand TATA Starbucks since it set foot in India
Since the beginning, Tata Starbucks has been rooted in a mission to nurture the human spirit. We have always gone beyond the cup to create positive experiences that makes our customers return to our stores time and again. Over these years, we have led the Indian coffee industry in pioneering a premium coffeehouse experience while setting new benchmarks in being socially responsible, strengthening communities and being one of the most loved coffee brands in India.
Key milestones:
2012 - Starbucks Fort, Mumbai
India’s first store opening by Howard Schultz and Ratan Tata at Fort, Mumbai
2013 - Launch of India Estates Blend
Celebrated first year anniversary in the country with the launch of India Estates Blend
2014 - Roll out of Coffee Master programme
Started upgrading partner’s coffee knowledge with Coffee Master Programme
2016 - 5-day work week for our store partners
2017 - First ever Neighbourhood coffee forward store
Took the next step in serving the best with India’s First Coffee Forward & NCF Stores in Mumbai followed by other cities
2018 - Barista Pride launch
Encouraged partners to brew their own beverage recipes and gave a fresh perspective to our menus with Barista Pride
2020 - All Women store launch
Empowered female partners by opening the First Global All Women’s Store and made transport arrangements for them
2020 - Launch of Diwali Blend
Added a festive flavour to our beans with the first ever season coffee - Diwali Blend
2022 - Roll out of Education benefit
Helping partners fulfill their academic goals with the roll out of Higher Education Benefits
2022 - Conquered Newer Markets
Spreading our finest coffee across the India market with the opening of our 300th store
2022 - Starbucks Reserve store, Fort, Mumbai
Adding a star on our galaxy with the first Reserve store of India
2023- Introduction of Picco and bite sized menu
Catered to first-time coffee drinkers by introducing Picco, a comfortable size option, and a bite-sized menu for a delightful experience
On Starbucks cracking the code - the perfect balance of global and local (innovations)
By blending global excellence with local adaptations, Tata Starbucks aims to create an inclusive and enjoyable experience for all its customers. Our focus on incorporating local elements and offering a diverse menu enables us to cater to the unique tastes and preferences of the Indian market, while still maintaining the essence of the global Starbucks brand.
One example, we achieve this through incorporating local design elements and cultural references in all our store aesthetics, ensuring that each outlet feels unique and relevant to the local community. Another way we bring this is through our diverse F&B offerings. We have always embraced local food culture by providing a wide range of Indian-inspired items marinated with international standards including our recent additions such as filter coffee, masala chai, cardamom chai, milkshakes, and a delectable assortment of freshly assembled sandwiches, bite-sized treats, and shareable food items. These offerings reflect the flavours and preferences of Indian customers, allowing them to enjoy familiar tastes while experiencing the global Starbucks experience.
We also have our global favourites like Pumpkin Spice Latte, Java Chip Frappuccino, croissants, muffins and cheese cakes that are loved by consumers across India.
On thriving in a hyper-connected ecosystem- transition of Tata Starbucks into the “fourth place” or the digital
In today's world, people have recognized and appreciated the significance of human connections, leading to a growing desire for community-driven interactions in the digital realm. The future lies in combining this technology with a sense of purpose, creating meaningful experiences, and delivering unparalleled value. At Tata Starbucks, we are dedicated to humanizing the digital landscape and ensuring that our customers truly enjoy an enriching brand experience.
For example, we introduced the Starbucks Mobile App, with an exciting interface offering customers barista recommendations, fantastic product discovery journeys and personalisation.
We launch Mobile Order and Pay enabling the convenience of pre-ordering and contactless transactions. We have also deployed a WhatsApp-based "Scan-Order-Pay" solution, allowing customers to make orders and payments through their phones. Furthermore, our customers can place orders for their favourite Starbucks beverages on delivery platforms such as Swiggy and Zomato, enjoying Starbucks from the comfort of their homes.
To expand accessibility, we have also established partnerships with Tata CLiQ Luxury (June 2021), Flipkart (October 2020), and Tata Cliq (June 2022) allowing customers to order their favourite Starbucks merchandise.
On Starbucks building loyalty via emotional connect with the customers
1. Personalized Customer Experience: One of the biggest differentiators of Starbucks is that it strives to create a warm and welcoming environment in its stores, where customers feel valued and appreciated. Our partners (baristas) are trained to engage with customers on a personal level, remembering their names, preferences, and creating a friendly atmosphere. This personalized approach helps customers feel a sense of belonging and builds an emotional connection with the brand.
2. Local Relevance: Tata Starbucks understands the importance of connecting with customers on a cultural level. By incorporating local design elements, artwork, and cultural references into our store aesthetics helps create a sense of familiarity and resonance with customers, making them feel understood and appreciated.
3. Community Engagement: As a brand Starbucks actively engages with the local communities in which they operate. We participate in various community initiatives, supporting local causes, and promoting sustainability
4. Reward Programs and Loyalty Benefits: Starbucks offers a comprehensive loyalty program called Starbucks Rewards which provides exclusive benefits, personalized offers, and rewards to our loyal customers. By recognizing and rewarding our customer’s loyalty, we aim to strengthen the emotional bond and encourage customers to continue choosing Starbucks as their preferred coffee destination. The Starbucks Rewards program currently has more than 2.3 million customers.
On the significant markets for Starbucks in India and Starbucks’ commitment to India
India is one of the fastest growing markets for Starbucks globally and we have seen phenomenal growth in India over the years. Every year, our goal is to carefully grow into neighborhoods where we believe our customers want to see us. We have consistently been providing our customers with a variety of roast profiles, handcrafted beverages, and a global coffee culture experience and with over 340+ stores across 40+ cities we continue to grow stronger day by day. We have recently launched into tier 2 markets like Vijayawada, Aurangabad and Agra. We have also introduced our first two 24/7 stores in Chennai and Calicut.
On Starbucks winning over tier II and tier III markets in India, and the advertising and marketing strategy for these markets
With regard to expansion in tier II cities our goal is to reach more consumers and be that neighbourhood store for them where they feel welcomed, comfortable, and safe through a personalized experience. We offer a unique value proposition in which we become a ‘third place’ for customers after their home and workplace. It’s familiar, it’s comfortable, it’s warm and accessible. Starbucks is more than just coffee - When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where they can meet with friends, family or just enjoy me time.
We leverage digital and social media platforms to engage with customers in these markets. This includes targeted advertising, social media campaigns, and collaborations with local influencers to increase brand awareness and drive customer engagement. We design specifically tailored marketing campaigns to highlight the localized offerings and the unique store experience designed for these regions. The messaging is crafted to resonate with the aspirations, lifestyles, and values of the target audience in these markets.
Our food also has regional options like Pohe Kebab, Malabari Egg Croissant, Chatpata Paratha wrap, Kosha Mangsho Wrap that caters to local tastes and preferences.
On the store count and expansion, you are targeting this year
As we always say, we will be present wherever our customers want to see us. While I can’t give you an exact number, the key to our growth will be our stores, the Third Place, and the backdrop for the partner and customer connections. We have expanded the concept of the third place, and we're reaching people in new ways where they need us to meet them in places like drive-thru, pickup stores, delivery, mobile order, and in digital channels. So we will continue to focus on thoughtful growth, strengthening our brand and extending the unique Starbucks Experience to more and more customers in India.
On Tata Starbucks leveraging AI to digitize the in-store experience
1. Mobile Ordering and Payment: The Starbucks India mobile app incorporates AI algorithms to enable customers to place orders and make payments seamlessly. The app utilizes AI to personalize the ordering experience, recommending menu items based on individual preferences and past orders. This streamlines the ordering process, reduces wait times, and enhances overall convenience for customers.
2. AI-Powered Recommendations: We also leverages AI algorithms to provide personalized recommendations to customers. By analysing customer data, such as past purchases, preferences, and demographics, we can suggest relevant and appealing menu items. These recommendations are displayed on digital interfaces, both in-store and on the mobile app, enhancing the customer's decision-making process.
3. Starbucks Reserve: which opened in October last year, features a captivating portrait of a mermaid. By scanning a QR code or accessing the Starbucks Instagram filter, customers can interact with the mermaid artwork and share their experience on social media. This innovative use of technology adds a touch of magic and engagement to the in-store ambiance, creating a unique and shareable experience for Starbucks Reserve customers.
On the media mix
Looking at our target consumers which are mostly millennials and GenZ, a substantial portion of our media budget goes into digital advertising across various platforms. This includes display ads, social media ads, and video ads on platforms like YouTube, Facebook, Instagram, and Twitter. Digital advertising allows us with precise targeting, customization, and measurable results, enabling Starbucks to reach specific audience segments and engage them with tailored messaging.
Collaborating with social media influencers and content creators is another important aspect of our marketing mix. Influencers who align our values and target demographic showcase the brand's products, in-store experiences, and promotions to their followers, fostering brand advocacy and engagement.
We also leverage OOH advertising to create visibility and reinforce our brand presence in key locations. This is particularly effective in reaching consumers on the move and driving foot traffic to nearby Starbucks stores.
On your vision and way forward for the brand
Since our inception in the Indian market, Tata Starbucks has embarked on an extraordinary journey. We take immense pride in the numerous milestones we have achieved, thanks to the unwavering support of our dedicated partners. Our thoughtful expansion into Tier 2 markets underscores our ongoing commitment to bringing the unparalleled Starbucks Experience to customers across India, while setting the stage for our future growth aspirations.
As we move forward, our growth strategy is based on expansion, innovation, driving brand affinity, and a focus on digital.
We will continue to give back to the planet and community with our sustainability and community-focused initiatives.
