I came across this blog on CNN.com on Starbucks entering the Indian market last month. The world famous coffee company has established a very strong brand position in people’s mind, including myself. I personally love Starbucks coffee, even though I know that I can just get the same thing at Tim Hortons or any another coffeeshop, likely for cheaper.
India does not even have a coffee culture, but “cafes are particularly popular with India’s youth.” as the author states. Moreover, “Cafes are actually a place where people go to meet,”. And I think that is a really big part of the reason why Starbucks is so popular. It’s not only their product but more of the atmosphere and the way tables and couches are arranged that just really make you want to go there; it simply feels nice. Starbucks has made their company become more than a coffe shop. The environment is highly differentiated from other places.
However, many people want to expand their markets into the growing Indian economy with a “market of a billion people.”Companies such as Costa and Dunkin Donuts can count as rivals of Starbucks. But thanks to the strenght of their brand and consumer loyalty it has established, Starbucks is more than able to compete with them.