What kind of the market strategy do you have for Starbucks to expand in the developed countries such as Myanmar and India?
I would think that a good market strategy for such countries would have to involve a number of things.
First, it would likely be necessary to reduce prices. It seems unlikely that the kinds of prices that can be charged in the richest nations would be affordable for the masses, especially in Myanmar.
Second, I would think that different blends would be needed in order to cater to local tastes. This would need market research and testing.
Finally, I would think Starbucks might need to give itself a more local identity so as not to seem like an invader from the United States. It would need to find a way to keep its name recognition but also seem like a local company.
The strategy for expansion of Starbucks in India will need to address areas such as product, pricing, number and size of outlets, and ownership of outlets.
Starbucks is a brand known internationally and therefor has to maintain some uniformity in the type of products it serves. However it may be necessary to select, at least, some of the products from the complete range to be introduced in India. Also the company can consider adding some additional products specific to India. If found suitable such products may be considered for introduction outlets outside India. However it may not be wise to make any changes in the basic quality of the existing product range.
Pricing is definitely an important issue, which is influenced by the consideration of cost structure as well as market competition.
Number of outlet, their size, location, and the rate at which their number is to be increased is an important aspect of the strategy. It determines the overall share of India business in the total company turnover. Also it determines the investment requirements. Many other business decisions such as the extent and nature of advertising, promotion and organization structure also depends to a great extent on these decisions.
Finally the ownership structure of the total business and the individual outlets is is very important considerations, and which has to take into consideration, the FDI (Foreign Direct Investment) related laws and regulations in the country.