...Evolution of Tata Global Beverages Limited - Background in a nutshell TATA group made foray into the beverages segment by an alliance with James Finlay way back in 1964 followed by taking control of production and marketing in 1976. The brand name "Tata Tea" was announced on 1983, by 100% buyout of James Finlay. A family of brands under Tata tea was introduced : Kannan Devan, Agni, Gemini and Chakra Gold. Interestingly the same route taken to enter into the domestic market was followed for Tata Tea's entry to the global market as well. In 1993, Tata signs a joint venture with Allied-Lyons PLC to establish Tata Tetley and by 2000, Tata group acquired Tetley Group Limited, having a legacy of 163 years at the time of acquisition for USD 432 million. After the renowned acquisition, which was once the largest takeover of a foreign company by an Indian company, they acquired and added globally renowned brands to their kitty which includes, Good Earth (Tea brand in USA), Eight O' clock (Coffee brand in USA), Jemča (the leading tea brand in Czech Republic), Vitax (Polish tea brand), Himalayan Water (Mineral water), Grand (coffee brand in Russia), MAP Coffee ( Australia's famous coffee brand). By 2010, Tata Tea integrated beverage brand and announced the Corporate Brand - Tata Global Beverages Limited. Recent developments are the JV with Starbucks and acquisition of MAP Coffee, the coffee brand from Australia. The company operates in three segments: tea, which involves cultivation...
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...com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 2 sur 4 Print Close http://www.foxbusiness.com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 3 sur 4 Starbucks, Tata Coffee Closing in on Retail Deal Published January 19, 2012 | Reuters Starbucks Corp (SBUX), the world's largest coffee company, is finalizing its retail partnership with India's Tata Coffee Ltd and hopes to announce the deal by the end of this month, a senior official of the Indian company said on Thursday. In early 2011, the Seattle-based company signed a pact with the Tata group firm to buy coffee from India and explore opening retail stores in the country. "We are close to finalizing it and are working on the final details. We hope to make an announcement very soon," MD Kumar, chief financial officer of Tata Coffee told Reuters. Tata Coffee plans to open a Starbucks coffee shop by the end of this year, Managing Director Hameed Huq told reporters on the sidelines of the International Coffee Festival in Delhi earlier in the day. In India, where tea has long been the beverage of choice, an increasingly affluent and urban population with westernized tastes is embracing cafes, paying much more for a cup of coffee than at traditional restaurants. The two companies had planned to open the first Starbucks outlet in India by mid-2011, but the plan was delayed on account of difficulties in acquiring real estate, Tata Coffee Chairman R.K. Krishnakumar...
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...com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 2 sur 4 Print Close http://www.foxbusiness.com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 3 sur 4 Starbucks, Tata Coffee Closing in on Retail Deal Published January 19, 2012 | Reuters Starbucks Corp (SBUX), the world's largest coffee company, is finalizing its retail partnership with India's Tata Coffee Ltd and hopes to announce the deal by the end of this month, a senior official of the Indian company said on Thursday. In early 2011, the Seattle-based company signed a pact with the Tata group firm to buy coffee from India and explore opening retail stores in the country. "We are close to finalizing it and are working on the final details. We hope to make an announcement very soon," MD Kumar, chief financial officer of Tata Coffee told Reuters. Tata Coffee plans to open a Starbucks coffee shop by the end of this year, Managing Director Hameed Huq told reporters on the sidelines of the International Coffee Festival in Delhi earlier in the day. In India, where tea has long been the beverage of choice, an increasingly affluent and urban population with westernized tastes is embracing cafes, paying much more for a cup of coffee than at traditional restaurants. The two companies had planned to open the first Starbucks outlet in India by mid-2011, but the plan was delayed on account of difficulties in acquiring real estate, Tata Coffee Chairman R.K. Krishnakumar...
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...1st June: The Sensex closed below psychological mark of 16000 at 15965.16 down 253.37 points or 1.53%. The Nifty ends at 4841.60 down 82.65 points or 1.68%. The breadth of the market was negative with Advance Decline ratio at 1:2. About 836 shares advanced, 1820 shares declined, and 768 shares remain unchanged. A slew of bad economic cues from across the globe didn't help Indian equities either. Reports of monsoon rains over India's mainland will be delayed by about four days also weighed on sentiment. A whole host of disappointing macro economic data including weak PMI data from many countries across the globe dragged the bourses down. BSE FMCG was almost flat with a gain of 0.13%. TATA Coffee closed at 839.85 losing 1.53% along with market sentiments. Volume of TATA Coffee was just 7978 as compared to the average volume of 61877. 8th June: Today, the BSE benchmark recovered 234 points from intraday low of 16,485.02, before closed up 69.82 points at 16,668.87. Meanwhile, the NSE benchmark rebounded from intraday low of 4,994.80, which ended up 18.70 points at 5,068.35. The BSE Sensex and NSE Nifty rebounded quite smartly in late trade on Friday that helped them to close higher in all sessions of the week. The market saw highest ever weekly absolute gains in 2012, with the Nifty rising 4.7% and the Sensex 5%. Recovery in European markets and Indian rupee, and short covering helped the market to bounce back today. Looking at the sharp recovery, it seems that the market...
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...Q 1.What is your assessment of Tata Tea’s situation at the end date of the case? Tata tea ,set up in 1964 as a joint venture with a UK based James Finlay and Company .The company has definitely come a long way from a meager share of just 3% in 70’s to now becoming India’s 2nd largest tea producing company. It has noteworthy plantations in India and Sri Lanka. The brand leads market share in terms of volume and value in India and has been accorded ‘super brand’ recognition in India. It also has a100% export oriented manufacturing unit of instant tea in the Indian state of Kerala which happens to be the largest such facility outside the US. Here is a brief history of the company: Tata Tea acquired Tetley in the first ever-leveraged buyout (LBO). This largest cross border acquisition by an Indian company made it the world’s 2nd biggest tea company with the combined turnover worth INR2800 – 2900 cr leading to its aggressive growth and worldwide expansion. The merger proved beneficial for Tata Tea as it slowed its main competitor (in India) HLL’s share (Hindustan Lever limited, a Unilever subsidiary), which was gaining a major market share. Tata Tea Before merger: Post merger Scenario: The right moves at the times Though Tata Tea ranks among the smaller of the Tata companies, yet it has been the most internationally active one. It made the world stand up and notice it when it acquired Tetley, a company nearly twice its size, in a risky leveraged buyout in 2000...
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...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...
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...the key demand characteristics of Tata Tea’s target customers – what influences these customers to purchase their product? Tata Tea’s target market: * Indian middle class and upper middle class that accounts for nearly 300 million people. * Targets the youth by embracing them with social awakening messages * Targets women in a view to empower them socially * Calls out to housewives since they are influencers and deciders in the buying process Factors influencing purchase of tea & coffee In selecting tea & coffee, the consumers may be considering some factors. These factors were price, quality, taste, flavor, environmental concerns, social concerns, impact on health, family preferences, peer acceptability, familiarity with the supplier, reputation of the supplier, certification mark and promotions and discounts… 2. How have Economies of Scale helped/hindered Tata tea in their overall global operations – in what areas are there advantages and disadvantages for Tata tea? In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. The purpose of mergers and acquisitions of Tata Tea is reaching the operational efficiency in the worldwide The restructuring combined with business strategy will bring many benefits for Tata tea brand in the international tea...
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...TABLE OF CONTENT a) Introduction b) Corporate diversification c) Reasons for Diversification d) Types of diversification strategies e) GOAL of diversification f) RISK of diversification g) Corporate diversification of TATA group h) List of diversification of TATA group i)CONCLUSION Introduction Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1] [pic] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued...
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...strategy for India. Does it have the right vision? The main Starbuck’s vision in the Indian market is to educate customers about its brand and the experience by building flagship stores in the locations where customers demand. Moreover, the ultimate goal of Starbuck is to generate repeat, loyal customers by creating emotional attachment. From my perspective, I am convinced that the Starbuck’s vision is right for two obvious reasons. To begin with, according to beverage consumption in India in 2011, Indians consumed 10 times more tea than coffee. However, coffee has been increasingly consumed; therefore, there was scope for coffee market growth in India. In order to change from the tea-consuming culture to the coffee-consuming culture in India, Starbuck started educating its customers about coffee as it had been successful doing so in the China market. In parallel, with Indians’ curiosity, people tended to experience a new brand entering the country. As a result, Starbuck was able to attract customers and changed the way people drank, creating emotional attachment with customers. These examples aptly support my point that Starbuck’s vision to educate customers about its brand and its experience is correct. In addition, building brand awareness, Starbuck attempted to construct flagship stores where customers’ demands were high. Through joint venture with Tata Group, India’s largest business conglomerate, Starbuck had access to premium real estate where demands were high. Consequently...
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...N’kengie Best Dr. Karen Mountain Consumer Behavior-MKT 510 October 16th, 2011 1. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. China is well known for its love of tea, therefore, it is amazing how excited Starbucks is about entering the Chinese market. One executive of Starbucks stated “China is clearly a tea-drinking society-unlike Japan, which we think of as a tea-drinking society but they also drink a lot of coffee. In China, that really isn’t true (Hawkins,Del I & Mothersbaugh,David L, 2010).” There is reason for the excitement about adding Starbucks to the Chinese market. China is known for its consumer market with a population of approximately 1.3 billion, rising incomes, and increase in the outlook of global attitudes; many companies are looking to tap into the China gold mine. However, in actuality China’s coffee market is still far behind other countries in regards to coffee consumption. There was a 90 percent growth in coffee sales in China in recent years; however, the per capita consumption is still less than one kilogram per person. In the United States the per capita consumption rate of coffee is four kilograms. Tea is clearly still the number one beverage in China (Hawkins,Del I & Mothersbaugh,David L, 2010). Tea is part of China’s national heritage and is strongly rooted in their culture. It is very hard to change the routine of someone’s...
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...India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks.com) with more than 150,000 employees in 2012(statisticbrain.com, 2012). Its turnover in 2012 was more than $13 billion, (statisticbrain.com,2012). Nowadays, Starbucks is considered as the biggest roaster and specialty coffee retailer. Starbucks shops are also a favourite choice among coffee-lovers. The menu of Starbucks offers anywhere mostly the same as in the States including: Coffee...
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...Global Business Opportunities Project: Starbucks Going to India Prepared by: Group A Contents Module 2: ANALYZING INTERNATIONAL COMPETITORS 6 Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT 7 Module 4: ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT 10 Module 5: ASSESSING THE POLITICAL LEGAL ENVIRONMENT 13 Module 6: SELECTING A GLOBAL COMPANY STRUCTURE 15 Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS 16 Module 8: CREATING A GLOBAL MIS (MANAGEMENT INFORMATION SYSTEMS) 18 Module 9- IDENTIFYING HUMAN RESOURCES FOR GLOBAL BUSINESS ACTIVITIES 19 Module 10 – MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS 21 Module 11 - PRODUCT AND TARGET MARKET PLANNING 22 Module 12: DESIGNING A GLOBAL DISTRIBUTION STRATEGY 24 MODULE 13: PLANNING A GLOBAL PROMOTION STRATEGY 25 MODULE 14—SELECTING AN INTERNATIONAL PRICING STRATEGY 27 MODULE 15— DETERMINING ORGANIZATIONAL FINANCIAL RESULTOVERVIEW 28 References: 31 Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES Global Business Opportunities We are the Starbucks Corporation; we purchase and roast whole bean coffees. Majority of our stores are in the United States, but we also have international stores. Starbucks Corporation has successfully been in business since 1971. India has the youngest population in the world and will stay young. Starbucks Co. has found the opportunity to expand internationally to India and believes that it can be a huge success. Potential Markets Starbucks would like to first start its operation...
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...satiate customers thirst for high quality coffee with the touch of friendliness in its environment. Starbucks mission statement “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go further and invest in Bangladesh. And tried to analyze consumers’ behavior of Bangladesh and show its macro and micro factors’ influences over Starbucks present marketing practices. Starbucks SWOT analysis “SWOT analysis pursues and integrated approach that includes key variables from company and environment. The objective is the confrontation of the company’s internal strengths and its weaknesses, as well as, company-external business opportunities and threats in order to generate possible strategic options.” (Bohm, 2009, p.1) The SWOT analysis of Starbucks can be illustrated in the following ways: [pic] Strengths: 1. Starbucks has always boasted of its high quality coffee beans. Though there are some controversies over its coffee sourcing, Starbucks has a good bunch of loyal...
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...footwear demography is an uncontrollable variable in the external environment such as age, People are directly or indirectly the basis of all markets, making population the most basic statistic in marketing. in 2012, there were approximately 75 million baby boomer,their ages range from the late-forties to the mid sixties. .Clearly, boomers and seniors are still a huge market with significant needs. Product : bally’s health clubs :since their getting old, they start care about physical problem, pay attion to work out program. as a fitness club, it could offer membership package such as fitness program , or yoga class to attract them. McDonald’s : decades ago, McDonal’s only offer unhealthy fast-food. However. nowadays, McDonal’s change their menu. they offer different menu . such as health salad , or low-fat meal. So the middle age who concern about their healthy, will consider get a meal from McDonald’s. Whirlpool Corporation: middle age control about 80 percent of personal wealth in the United States , which means , many of them had a family . they spend money on hight quality home improvement .and Whirlpool have many stuff to choose from. Nike athletic footwear: Nike is the company that offer hight quality work out stuff . and middle age clients prefer wear high quality clothes and...
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...to the ever growing population. QSRs face few challenges in terms of Health and hygiene, beating local competition, monitoring multiple outlets in various cities, holding on to the customers as QSR customers are easy to sell to but also easy to lose, maintaining quality service, localization of menu and building a cost effective supply chain. Foreign QSRs have more 63% of the market shares but there are many Indian chains such as Haldiram’s, Faasos, Goli Vada Pav etc. that are flourishing in the market that is growing at almost 25% per year. There are almost 45 foreign brands which have 1900 outlets all over India. Café Coffee Day Café Coffee Day is largest chain of coffee shops in India, a nation of tea drinkers. CCD opened its first outlet at Brigade Road, the heart of Bangalore city on 11 July 1994 with a tag line that read “A lot can happen over coffee” and has since then expanded enormously....
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