Tea Monarch-Rejuvenate with Every SIP

REJUVENATE WITH EVERY SIP

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Tea Monarch-Rejuvenate with Every SIP EXECUTIVE SUMMARY

Tea Monarch is determined to become a daily necessity for local tea addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality tea room and great service. Tea Monarch will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit. The company will operate a 700 square feet tea room within a walking distance from the National College, MMK College and Thadomal Sahani College. The owners have secured this location through a 5 yrs. contract with an option for extending. The partners have provided Rs. 21, 00,000. The company is expected to grow sales from Rs. 54,00,000 in 1 st year to Rs. 81,00,000 in three years. As Tea Monarch will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from Rs. 1,34,400 to Rs. 9,77,900 during the same period.

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Tea Monarch-Rejuvenate with Every SIP MANAGEMENT AND ORGANIZATION

We are a small company owned and operated by its partner, as a partnership venture. Our management style reflects the participation of the owners; we are not very hierarchical, and encourage all employees to learn as much as possible about all aspects of the business. The company respects its community of co-workers, and will treat all workers well. As a Partnership Venture, we understand that our teatenders, cleaners, and other help are not just workers; they are people with their own lives, personalities, and hopes. Itis likely that many customers will know our part-time teatenders (probably local students) personally, so it is important to us that they enjoy their jobs and feel well-rewarded for their work. Personnel Plan The Personnel Plan chronicles the growth of the organization to approximately 14 employees in the first 3 years. Future years may require a few additional people besides those indicated, depending on the growth of the company.

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Tea Monarch-Rejuvenate with Every SIP

Company Locations and Facilities
Tea Monarch will be located at theShop No. 1/2484, New Kamal Road, Opp. National College, Linking Road, Bandra. The contract has an option of renewal for three years at a fixed rate that Tea Monarch will execute depending on the financial strength of its business. The floor plan will include a back office and a tea room, which will include a seating area with 10 tables, a kitchen, storage area and one washroom. This property is located in a commercial area within a walking distance from the College and Shopping zone. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate kitchen and storage area. The tea room's open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment's positioning as an eclectic place where people can relax and enjoy their cup of tea. The clear window displays, through which passerby will be able to see customers enjoying their beverages, will be aimed to grab the attention of the customer traffic.

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Tea Monarch-Rejuvenate with Every SIP

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Tea Monarch-Rejuvenate with Every SIP

MARKETING PLAN
OBJECTIVES OF RESEARCH TO FIND THE SCOPE FOR A TEA LOUNGE AT BANDRA (LINKING ROAD)
The Indian branded tea market is highly vibrant and full of challenges. India is a vast country of 1.2 billion populations spread out in 5000 plus towns and 6 lakh villages. It not only has a wide geographical spread but also has complex demographics, which lead to varied regional taste preferences creating challenges for any tea marketer. Market Segmentation Tea Monarch will focus its marketing activities on reaching the students and faculty, people coming for shopping close to the tea room. The chart and table below outline the total market potential (in number of customers). Chart: Market Analysis (Pie)

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Tea Monarch-Rejuvenate with Every SIP

Sales
Students & Faculty Local Resident

People coming for Shopping

Target Market Segment Strategy Tea Monarch will cater to people who want to get their daily cup of great-tasting tea in a relaxing atmosphere. Such customers vary in age, although our location close to the college means that most of our clientele will be college students and faculty. Furthermore, a lot of college students consider tea rooms to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. Market Segmentation While we anticipate a split between locals and jay walkers, all members of our target market are between the ages of 18 - 60, and have a moderate to sizable disposable income. Students and faculty Jaywalkers
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Tea Monarch-Rejuvenate with Every SIP

Local Resident People coming for shopping.

Market Analysis The Tea Market The existing Indian tea market needs to be explored and exploited. Current trends of growing coffee rooms shows there is a wide scope for the tea rooms in Mumbai as well. Market size Average running crowd in Bandra for a day would be 8-10 lakhs(shoppers, jaywalkers ,approx fig.). Everyday college visiting students 15,000(approx.). Ever increasing number of students, jaywalkers and shoppers in the area, all of these bode for success of upscale tea house.

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Tea Monarch-Rejuvenate with Every SIP

Sampling Sample size (n) = 100 Sample consisted of : 50 college students 25 local residents 25 shoppers near linking road

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Tea Monarch-Rejuvenate with Every SIP

Market research Do you drink TEA. Yes. No On average, how many cups of TEA do you consume? One or less cups per day 2 to 3 cups per day 4 to 5 cups per day 6 to 7 cups per day More than 7 cups per day Would you prefer drinking TEA in a TEA lounge ? Yes No How much are you willing to pay for an exotic TEA?
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Tea Monarch-Rejuvenate with Every SIP

Below Rs. 30 Rs. 30- Rs. 50 Rs. 50-Rs. 70 above Rs. 70. Other than TEA, which hot/cold beverages do you regularly buy? Coffee Soft drinks Juice

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Tea Monarch-Rejuvenate with Every SIP

Trend analysis

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Tea Monarch-Rejuvenate with Every SIP

On average, how many cups of TEA do you consume

1% 4% 6%
One or less cups per day

34%

2 to 3 cups per week 4 to 5 cups

55%

6 to 7 cups
More than 7 cups

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Tea Monarch-Rejuvenate with Every SIP

Would you prefer drinking TEA in a TEA lounge

0% 0% 37% 63%

people willing to go in Tea lounge people commited to Coffee outlet

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Tea Monarch-Rejuvenate with Every SIP

People willing to pay for exotic Tea

2% 17%

Below Rs. 30
47%

Rs.30 - Rs.50 Rs.50 - Rs. 70

34%

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Tea Monarch-Rejuvenate with Every SIP

Test of Hypothesis :-

We as an Business entity feel that , if the proportion of people preferring Tea is more than even 50% of the proportion of people preferring coffee, then Tea Lounge business has scope in bandra. To check the claim we drew a sample of 100 people, Sample size (n) = 100 Sample consisted of : 50 college students 25 local residents 25 shoppers near linking road and it was found that 62 people drink tea and rest drink coffee and other beverages.

N: Bandra population and overall running crowd(large) A: No. of people drinking Tea in Bandra(unknown) P=A/N . Proportion of people drinking Tea in Bandra(unknown). Therefore, Sampling
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Tea Monarch-Rejuvenate with Every SIP

n = 100sample size. a = 62..No. of people drinking tea in the sample. p = a/n = 0.62proportion of people drinking tea in the Sample

Test for single population proportion. H0: P0= 0.50 H1: P1 > 0.50

The test statistic is Z= p-P0/underroot(P0.Q0/n) Z= 2.4 Therefore, z = 2.4 > z (0.05) =1.64 Hence, Rejecting H0 Conclusion: Proportion of people preferring Tea over coffee can be taken as more than 50 percent.

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Tea Monarch-Rejuvenate with Every SIP

Chi- Square to determine independence of attributes. Ho: Segments of population and preference of drink are independent. H1: Segments of population and preference of drink are not independent. Observed Freq: TEA STUDENT 35 COFFEE 15 TOTAL 50

LOCAL RESIDENTS

15

10

25

SHOPPERS

12

13

25

TOTAL

62

38

100

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Tea Monarch-Rejuvenate with Every SIP

Expected Freq: TEA STUDENT 31 COFFEE 19 TOTAL 50

LOCAL RESIDENTS

15.5

9.5

25

SHOPPERS

15.5

9.5

25

TOTAL

62

38

100

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Tea Monarch-Rejuvenate with Every SIP

Chi- Square to determine independence of attributes. The test statistic is: Chi-square = (o-e) the whole square/e = 3.49 Degrees of Freedom = 2 Chi-square = 3.49 > chi-square [2] = 5.991 Therefore, Do not reject Ho Hence, Segments of Market and preferred drinks are independent of each other.

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Tea Monarch-Rejuvenate with Every SIP

Strategy and Implementation Summary Tea Monarch marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal customer base is of a paramount importance Competitive Edge Tea Monarch will position itself as unique tea room where its patrons can not only enjoy a cup of perfectly brewed tea but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Tea Monarch from incumbent competitors. Sales Strategy In order to build up its client base, Tea Monarch will use banners and fliers, utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the tea room.

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