Objective :

Purpose is to evaluate the market for Tea chain in North and

South India. Objective is to drive financial model based on
research for tea market and competition. This will enable us to
find the viable solution to decide “go or no go” decision.

Vision:
To enrich the taste for consumer by providing organic and exotic flavors of Tea
in peaceful environment as a supplement of mental stimulus

Mission:
Our mission is to provide cost effective tea in peaceful ambience and nourish
amity atmosphere
• Survey method (Quantitative) was adopted to evaluate the consumer response
for the concept.
• Qualitative Analysis ( Interview process) to evaluate the viability of people visiting
tea store
• Research method was adopted for Competition Analysis
• Demographic Analysis based on survey

The questionnaire sought responses from individuals to

determine their
• Existing consumption and purchase behavior for tea &
coffee,
• The factors influencing their purchase.

Sample Size for Survey : 148

Sample Size for Interview : 50
 Wagh Bakri Tea Group is a Premium Tea Company, having
presence in tea business since 1892. Today it is the 3rd largest
packaged tea company in India with a turnover of over Rs. 700
Cr. and over 30 million Kgs of tea distribution

Tetley is the most popular tea brand in and out of the

home in the UK. Recently lost their supplying to
McDonalds to PG Tips.

Competition
Café Coffee Day is the leading brand in the hot beverages
market. Brand image and recognition is high amongst
consumers.

Costa is a UK brand which operates under Whitbread PLC, this

gives them lots of outlets as a subsidiary.
Recurring Monthly Cost:
Electricity : INR 10,000
Internet : INR 2,500
Tea Items : INR 20,000
Misc Expense : INR 5,000
Resources : 34,000
Total Monthly operations cost: INR 71,500

Other Fixed Asset Cost:

Cooking Utensils: INR 70,000
License : INR 50,000
Lease Amount: INR 6,00,000
Furniture : INR 1,00,000
Marketing : INR 60,000
Investment Amount : INR 8,80,000
 YEAR 1 YEAR 2 YEAR 3
Operating Activities Monthly Annual Monthly Annual Monthly Annual
Inflow
Sales revenue (per month) 100000 1200000 115000 1380000 132250 1587000
Outflow (per month)
Tea items 20,000 240000 23000 276000 26450 317400
Electricity 10,000 120000 10,000 120000 10,000 120000
Internet 2,500 30000 2,500 30000 2,500 30000
Magazines 1,000 12000 1,000 12000 1,000 12000
Total operating costs 402000 438000 479400
Operating Profit 798000 942000 1107600
**Assuming 15% yoy sales growth

Investing
Activities YEAR1 YEAR 2 YEAR 3
Machines cost
Furniture Cost
50000 0
100000 40000 40000
0 YEAR1 YEAR 2 YEAR 3
Net profit before taxes -12000 242000 407600
Creating a menu 10000 10000 10000
Required licenses 50000 50000 50000
Lease 600000 600000 600000
Total 810000 700000 700000
Findings
 If we observe our family
patters of drinking tea and
coffee, it looks like in most of
the families frequency of
drinking tea is far ahead then
that of drinking coffee.
 Almost everyone in India has
developed the real coffee
taste by drinking coffee at
CCD, Barista and at many
such cafés. So when we
compare the quality of coffee,
we do it between the
different cafés available in
the market.
Suggestion
 Somehow with the use of
some technology or some
great idea allow customers to
prepare tea on their own on
their table in the Tea store.
 Give too many options of Tea
to the customers so that
every customer should land
up with at least one kind of a
tea, which suits to his/her
taste.