Rupinder’s blog is with regards to the expansion of Starbucks into India through a joint-venture with Tata Global. Rupinder’s poses questions that refer to brand recognition and issues of consumer power.
The Starbucks brand is recognized world wide and is a successful. Starbucks is known to be a luxury brand coffee in comparison to some of it’s competitors. The Starbucks brand name allows the company to sell it’s products for a much higher price compared to competitors. The “fancy” drinks and seasonal specials are points of difference for the company that define the brand, this helps it’s profitability.
The strong Starbucks brand has been successful all over the globe but with the increasing decline of the European economy I strongly support the companies choice to expand. Rupinder questioned in his blog whether or not the it would be Starbucks or Tata Global that would be more recognized through this joint-venture. As I previously stated I believe that the global recognition of the Starbucks brand will allow it to shine through its cohorts. Brand recognition is one way of selling products and the Starbucks brand is too strong to not advertise or predominantly use.
Rupinder also proposed the question of buyer power and whether or not the current companies will retain a monopoly on the market. I believe that Starbucks has creatively approached this expansion using an already prominent company to create it’s joint-venture with, Tata Global. This will allow for an understanding, by both parties, of the target market and allow for Starbucks to become a force in the coffee market of India.