Principles of Marketing

Project Brief: Starbucks India Market Penetration Strategy

For our final presentation in MKT 340: Principles of Marketing, our team was tasked with developing a growth strategy for Starbucks in the Indian market. After conducting a full situational analysis using the 5Cs and STP frameworks, we identified market penetration as the most viable strategy to scale Starbucks’ presence in India.

Although Starbucks has a strong global brand, its premium positioning and Westernized “on-the-go” model have limited its reach in India, where tea dominates daily consumption and affordability is key. To address this, our team developed a locally rooted, scalable market penetration strategy that involved partnering with street tea vendors (Chaiwalas) to deliver Starbucks-branded tea in reusable "Picco Cups" to corporate offices.

This strategy allowed Starbucks to tap into the vast corporate customer base by offering high-quality, locally flavored tea at an accessible price point, while still leveraging its global brand equity. Through subscription-based corporate contracts and hyper-localized delivery, we proposed a business model that both broadened the customer base and strengthened cultural resonance.

By applying the principles of market penetration, we focused on increasing usage among current users, attracting new users in existing markets, and creating new occasions for consumption. We built a campaign that demonstrated strong revenue potential alongside meaningful social impact.