In response to Rupinder’s blog post on the joint venture between Tata Global Beverages and Starbucks, I am convinced that Indian consumers will be split between associating this new venture with either one of the companies.
Starbucks, operating over 17,000 stores internationally, is famous for their unique customer experience, included with each cup. This point of difference has associated their brand name with words such as “exclusive”, “high-class”, and “elite”, making holding a Starbucks cup a privilege in itself.
In comparison, Tata Global Beverages is the world’s largest tea company – a company focused on a stable line of alimentary beverages that are made from locally sourced espresso.
As Rupinder mentioned, Starbucks plans to “try and tap into India’s emerging market”. In my mind, Starbucks is guaranteeing their success in a foreign market by introducing their brand name alongside with Tata’s name: this way, Starbucks is hopeful that their ties to Tata will gain them customer loyalty.
Tata on the other hand, will be represented alongside one of the world’s most iconic beverage brands. Perhaps this will benefit Tata in improving the profile of Indian-grown arabica coffees around the world, and fuel their expansion power to North America.
Further reading: http://news.starbucks.com/article_display.cfm?article_id=703
Image Reference: http://eater.com/uploads/starbucks-taj-mahal.jpg