TATA Starbucks

I am sure most of you have seen pics of the first starbucks outlet in Mumbai(Elphinstone building in Horniman circle area) on facebook, but just in case you haven't (courtesy Vogue India).

They have opened another outlet at Taj mahal outlet and a third at the Oberoi Mall in Mumbai's western suburbs. A Cappuccino Cafe Latte, at any of these outlets, will cost between Rs 95 and Rs 135, depending on the size while iced coffee and blended beverages will cost you Rs. 115-200. The stores will offer free wi-fi and will remain open until 11p.m. on weekdays and 1 a.m. on weekends. I feel that the late closing time is going to be a major pull factor for customers, especially the large percentage of young professionals in metros, who often work will late and return home around that time or stay out till late night during the weekends. 

Many people feel that Starbucks's entry into India has been long overdue, perhaps the last major untapped market in the world for the company. Nonethless, the good news is that Starbucks plans to open 50 stores across the country by the end of the year. The interesting part is that Starbucks has chosen to enter India through a 50:50 joint venture with TATA Global Beverages even when there is no restriction on FDI in single brand retail.

Starbucks has always projected its stores as the third place for customers to go between work and home. It will be interesting to see what strategy they will follow in India especially when CEO Howard Schultz has himself accepted that "India's coffee market competition is ferocious".

In India Starbucks will face stiff competition from the hugely popular Cafe Coffee Day and slightly suave Barista, both of whom have established an extensive presence across the country.

BREGUET!

The pint ads for this brand were part of one of a question in the recently concluded Lattice business quiz held at the IIM Calcutta campus. Its been at the back of my mind for the entire week.

Breguet is a french brand of expensive luuxury watches. The cheapest watches available online are priced at $11,000and go upto $235,060 (on sale -$51,000 off).  Each Berguet watch has a "secret signature" and an individual number to guard against forgery. Ofcourse, it is also a way to create intangible value by associating exclusivity with each timepiece.

Breguet is credited with some of the major inventions in watches. They produced the first wrist watch in 1810. The brand is now owned by The Swatch Group. Their long list of customers includes names such as George Washington, Napoleon Bonaparte, Leo Tolstoy and Nicolas Sarkozy, a fact they have exploited adequately in their print ads. 

 Here we see Berguett trying to establish a connection between wealth and an appreciation for history or liking for a certain kind of literature. I feel that this is an amazing example of STP where the company is targeting affluent people by massaging their need for being recognised as being learned and well read with a good taste.