Starbucks has launched cheaper beverages in India to win new customers and ward off competition from domestic rivals.
2
Changing perception
Starbucks wants to change the perception that its drinks are expensive. It also plans to expand to smaller towns in the country.
3
Chai
The company has introduced more 'Indian-inspired' tea offerings to attract customers. Previously, there was a single Chai Tea Latte on the Starbucks menu.
4
Competition
Starbucks is being challenged by domestic rivals like Third Wave Coffee and Blue Tokai. The rivals have been very aggressive over the past 3 years.
5
Capturing hearts
Starbucks believes smaller, cheaper drinks are the way to the heart of value-conscious Indians. Larger, expensive drinks are an American phenomenon.