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INTRODUCTION
ndia is one of the largest tea producers in the world, though over 70% of the tea
is consumed within ndia itself. A number of renowned teas, such as Darjeeling,
also grow exclusively in ndia. The ndian tea industry has grown to own many
global tea brands, and has evolved to one of the most technologically equipped
tea industries in the world.
Tea is known as the queen of all
beverages. Although ndia is one of
the largest producers of tea in the
world, we do not have any such
tradition of Tea Houses, Tea Rooms
or Tea Lounges. n ndia Tea has
been associated with dhaba culture.
you will see little Chai shops on
streets everywhere.
Cozy Cup is intended to initiate a new culture of Tea drinking in ndia. We will
also organize special demo sessions showcasing tea ceremonies and rituals
representing different cultural values.
n modern times when work stress is high Tea is being recognized as a health
drink. t helps to reduce mental stress, alleviate coronary problems, enhances
skin complexion, improves hair grow, digestive system, strengthens nervous
system and recharges your adrenaline.
.
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Cozy Cup Serves most of the world's teas under
one roof providing experience in variety of flavors.
Reflecting multitude of cultures, Tea is prepared and
served in the way it is done in a given culture using
the original methodology, tools and implements.
A PIace to eIevate your Mind, Body and SouI
Tea is the second most popular drink of the human kind next only to water. n
ndia, the tea is consumed throughout the length and breadth of the land by
every strata of the society. But the manner in which it is prepared, served and
consumed represents the cultural diversity of our country. n cultural sense, tea is
the true representative of unity in diversity of ndia.
Cozy Cup has been designed to capture this "Unitea in diversitea" i.e. Unity in
diversity with a touch of interactive element to revive the customers from the
monotonous and regular style restaurant and cafeterias.
Objectives
Make Cozy Cup the number one destination for tea in Ahmedabad.
Create a solid concept in the industry and track performance in order to begin
expanding to other markets in the near future.
Mission
Our goal is to provide the finest premium teas and complementary snacks with
interactive activities in a relaxed and interactive fun atmosphere.
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Keys to success
One of its kinds in the city Cozy cup will be the first of its kind tea house
in the city offering such a wide variety of tea along.
Product QuaIity. We sell only the finest premium tea to give our
customers the best for the premium they pay. Also we sell exotic teas from
various parts of the world.
ExceIIent Customer Service. Each customer will be treated as would an
honored guest in our homes.
No direct competition. We are the only teahouse the city, thus there is
no direct competition from any other tea house.
Tapping New Age HeaIth concerned market Considering the increase
in the health consciousness of the people, we also offer organic medicinal
and herbal tea to our customers along with the regular tea.
MuItipIe revenue streams we also offer gift items, gift baskets, assorted
chocolates in addition to coffee, pastry, snacks and coolers.
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ORGANIZATION SUMMARY
Cozy Cup will be a start-up business on a well-trafficked street near commerce
six roads, Ahmedabad. Our primary focus is in over 50 kinds of tea including
black teas, green teas, herbal teas (infusions), white tea and flavored teas (black
currant, pineapple, jasmine plus other flavours). We will serve our teas hot and
iced both.
n addition, we will sell snacks, and offer daily coffee to accompany tea orders.
Since we are not intending to compete with coffee giants such as Nescafe or
CCD outlets, we brew only three kinds of coffee daily, Black, Espresso and
Cappuccino as a courtesy to our customers.
Ownership
As a partnership venture, ownership of Cozy Cup is identified as belonging to its
partners. The partners, Chandani, Maitri, Mansi and Nisarg, each control 25% of
the business.
The partners are the management students who want to pursue their dream of
being entrepreneurs and commence their own business. The knowledge of
startup and management of the new business will make the transition to owning
and running a teahouse a natural step.
Funding
The project will be initially funded by the partners in equal share. The funding that
the partners bring may also consist of personal borrowings. However, later, in
case of requirement of more funds, (during the time of high investment expansion
like opening new branch) we may approach any bank or financial institutions.
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PROPOSED BUSINESS PLAN
3.1 Products and Services
Cozy Cup will specialize in premium teas. Our full "teahouse" experience is
complemented by snacks, assorted chocolates, pastries and few types of coffee
along with the gift basket for our customers. Our goal is to be a destination store
for visitors and a resource for locals seeking gifts, new experiences, and
knowledge of tea.
Tea
Our tea-tenders will know the best brewing
temperature and time for each of the 50 kinds of
teas we offer. These include straight black teas
such as Assam, Ceylon, Darjeeling and Keemun,
blends like Chai, a Ceylon/Vanilla/Jasmine blend.
We will also offer a range of green teas, which are
becoming more popular with the proliferation of local restaurants. Cozy
Cup's no-caffeine herbal infusions range from flavored tea to fruit
blends and medicinal brews (chamomile, ginseng, etc.).
All of these teas are available hot or iced for customers.
Snacks
Along with the tea, Cozy Cup also offers the customers snacks that
perfectly go with the tea.
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Coffee
We are a teahouse; we focus on tea. Since we are
not intending to compete with coffee giants such as
Nescafe and CCD outlets, we brew only three kind of
coffee daily, to satisfy those accompanying true tea
lovers on their visits to our store.
Gift Baskets
We offer a selection of pre-made gift baskets, and will work with customers to
create custom baskets for any occasion. Our tea tins come in a range of sizes
and designs, and we will keep at least five colors of baskets and liners in stock at
all times.
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Expansion:
Pastries
To complement our beverages, we will offer a small
selection of freshly-baked pastries from a local bakery.
Our alliance with this bakery allows us to offer high-
quality baked goods at a reasonable price, in exchange
for co-advertising. These items are not intended as a
staple of our overall profit structure, but help us to create
the whole-service feeling of a real teahouse, without investing in cooks, bakers,
or kitchen equipment. Based on market research, we believe that up to 2/3 of our
sit-down clientele will order a cookie, piece of cake, khari or biscuits with their
tea. Not offering such treats could lose us customers.
ChocoIates
n keeping with our upscale, indulgent feeling, we will sell premium chocolates
such as Ferrero Rocher, PATCH and others as well as assorted flavoured
chocolates as an expansion plan. We will offer a limited selection of truffles and
dipped chocolates (like chocolate covered cherries, orange peel, and candied
ginger), and a wider array of loose bars and chocolate gift baskets.
3.2 Pricing
The pricing pattern of our tea centre will be cost plus mark up. Although we're
planning to offer the premium tea at our centre, we offer the same at lower prices
than what is offered in the market for the same kind of product.
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3.3 Promotion
Our marketing strategy needs to accomplish two things: first, to make potential
customers aware of Cozy Cup's opening and location; second, to educate
potential customers as to what a teahouse is, and why it is so wonderful. Clearly,
with committed tea drinkers, the first will suffice. However, for the rest of our
target market, we must strategically define ourselves as the answer to the many
different things each group is seeking. Our highly visible location in the shopping
area of the city will encourage walk-in traffic.
Advertisements in the local newspapers both in vernacular language as
well as English dailies like Ahmedabad Mirror, targeting youth.
Flyers in multiplexes and malls where the number of target segment
footfalls is higher.
Reviews by the food writer in the newspapers.
Radio ads at the major stations like Radio Mirchi, Radio City and the like.
3.4 Location and distribution channeI
The location of our tea centre would be off C.G. Road near H.L. College of
commerce. Our supplier would be Teamoods located at Memnagar, Ahmedabad
offering more than 50 types of tea including flavoured. The distribution channel is
one-level and the suppliers for pastries and chocolate would be cadbury's and
other local assorted chocolate makers.
3.5 Management structure
The organization structure is simple since we don't need many people to handle
the operations. The four partners have equal contribution and profit sharing ratio.
We'll be responsible for the strategic decisions and a cashier cum supervisor will
be the one to handle day to day operations. There will be five waiters and two
cooks. Human resource would also include two sweepers one cleaner, and one
security guard.
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3.6 Interiors
Cozy Cup will be divided mainly into three
sections to suit the mood and requirement of
different customers. One section will be so
arranged as would capture the ethnic style
where family people would love to go, other
portion will suit the mood of professionals who
would like to discuss over certain issues
related to their business outside the office
whereas the other part will be specially for
students and youngsters who visit cafeterias
mainly to hang out, relax and have pure fun.
Also, we have enough space outside where
tables are kept for the people who wants to
have tea in the fine evening atmosphere.
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MARKET ANALYSIS SUMMARY
Summary
We plan to launch an exciting new tea house concept in a receptive and steadily
growing market segment - the specialty tea retail business.
Despite economic downturns in recently, the specialty tea business can be a
bright spot. t's clear that ndia's love for good tea continues during good and bad
times and also the sales of the same does not need too much of marketing.
WHY AHMEDABAD
The city is known for its cultural heritage and hospitality for years. Along with
being famous for food and traditional cuisines, the city also has a tinge of modern
culture with the varying taste of food. Thus this combination of modern and
traditional cultural heritage would be the best place to start a premium quality tea
house where the traditional concept of offering tea to guests could meet with the
concept of socializing and meeting over tea than coffee.
AHMEDABAD: The food hub of Gujarat
By launching Cozy Cup in Ahmedabad we maximize our potential for
success due to the following factors.
No competition so far as premium tea house is concerned
The highly affluent local population
Ever-changing upscale student population
Excellent vehicle traffic by our location
Low media costs
High number of local special events
Prime site location
More tourist than other cities in Gujarat
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Cozy Cup is located at what is arguably one of the best locations for a
coffeehouse in Ahmedabad, C.G. Road - in the heart of the tourist and business
district, adjacent to fine dining and shopping and just steps away from the busiest
commercial area in town. Cozy Cup tea house has all the ingredients necessary
for immediate success.
4.1 MARKET SEGMENTATION
Market Segmentation
While we anticipate a split between locals and tourists, all members of our target
market are between the ages of 20 and 50, and have a moderate to sizable
disposable income.
Target Market Segment Strategy
Cozy Cup will provide the local upper-middle-class community with a place to
socialize, indulge themselves with fine teas and snacks, and find unique
chocolates and gifts. Cozy Cup will be a destination stop in their tour of the town,
whether as a break from shopping, a warm-up visit, business meet, or casual
meet or a place to buy unique gifts for friends and relatives.
These customers will be glad to pay the price premium for our products in
exchange for the high quality, great taste, and sense of prestige they receive. n
fact, higher prices for some items may encourage higher sales - these kinds of
customers eagerly accept the idea that higher prices equal higher quality, and
want to buy "only the best," regardless of whether their palate is educated
enough to appreciate the subtle differences.
Also, by appealing to several market segments, we do not become overly
dependent on any single consumer group. For example, several local coffee
houses with primarily student customers do poorly during the non-school months.
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AffIuent IocaIs: Around Cozy Cup reside many affluent people in Ahmedabad.
Homes in adjacent area are high priced. Thus the location gets the advantage of
wealthy locality.
Tourists: Thousands of tourists/NRs visit Ahmedabad every year. Tourist visit
C.G. Road for shopping, dining and visiting nearby malls. Thus the location is apt
to grab majority of the tourists.
LocaI business peopIe: Cozy Cup is located on C.G. Road where now-a-days
a number of commercial business centre are being built. Thus it will also grab a
chunk of business people who work in the nearby area.
Students: Ahmedabad has a major branch of the State University as well as
dozens of other schools, including many prestigious private schools and
academic institutions in the commerce college area most of which are located
near our tea house. A number of students from many other cities and state come
to Ahmedabad for their further education who will serve as potential customers
of our business.
4.2 Industry AnaIysis
Tea is indigenous to ndia and is an area where the country can take a lot of
pride. This is mainly because of its pre-eminence as a foreign exchange earner
and its contributions to the country's GNP.
n all aspects of tea production, consumption and export, ndia has emerged to
be the world leader, mainly because it accounts for 31% of global production. t is
perhaps the only industry where ndia has retained its leadership over the last
150 years.
However, even after so well developed tea market, we can barely see
development in tea retail stall by any major company. However, in the other
cities, like Pune, Mumbai and Bangaluru there are well established tea house.
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Also earlier this year, TATA has come up with its own branded tea shops called
'Chai Unchai'. Also other company's later are expected to join the bandwagon.
LocaI competition
Looking at the present scenario as far as locale is concerned for tea retail
business, there is no premium tea shop in Ahmedabad and at present no
business is up for the same in near future. Thus Cozy Cup will face no direct
competition. However, due to well establish and intense proliferation of the local
tea stalls, there can be little competition from their side but no threats.
However as our business will grow, there are chances of opening new tea house
to give us competition. Also TATA as mentioned above, with their 'Chai Unchai'
is planning to expand their business across the country in the following 5-7 years.
Considering this, we are expecting an early set up in Ahmedabad from their side
than other city. Thus an expected fall in our sales is considered in 3 years of our
set up.
Also there will be indirect competition from coffee outlets like Barista, Nescafe or
CCD outlets. Thus our concentration is not only on attracting tea drinkers but
also to convert coffee drinkers into. Thus, the focus on the happening around is
immensely essentials.
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STRATEGIC ANALYSIS
Product Positioning
We will combine print advertising with special events and targeted promotions to
introduce residents and tourists to our Teahouse, and to premium teas in
general. Repeat sales depend on consistently high quality products and service.
We will thus train every part-time teatender in the proper storage, brewing, and
serving of our 50 kinds of tea.
Our teas and chocolates are offered at a price premium that discourages
customers seeking cheap, low-quality goods. This not only enhances the feeling
of prestige customers get when patronizing our teahouse, but also ensures that
customers will have similar expectations of service and quality, based on their
socio-economic class. The status and sophistication indicated by suggesting an
outing to our teahouse, or a gift basket with our logo on it, will soon become
valuable in themselves.
Competitive Edge
Key Competitive Strengths
The partners have the professional knowledge of starting up new business
and are trained about the management aspect of the same.
We are the only full-scale teahouse in the city
We have arranged competitive distribution contracts with high-end tea
growers and suppliers.
We are one of the few retailers offering such a wide array of premium
chocolates.
Our interior design will give Cozy Cup an intimate, cozy, comfortable, and
chic feeling, without reminding customers of doilies and lace.
We are committed to providing only high-quality products and services.
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Competitive Weaknesses
Our primary weakness is that we are a new business competing against
established chains, for customers who may not know how great our products are.
Also there is not strong competition from tea centre as much as it would be
indirectly from other well established cafeterias. To significantly build sales, we
must not just find new customers - we must take customers away from existing
stores and from their coffee-drinking habits. We can accomplish this only by
offering a superior selection of teas and chocolates, and focusing on high-quality
service and full service delivery.
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MARKETING STRATEGY
Any service unit is almost entirely on word-of-mouth marketing to generate
business. We will engage in an ongoing aggressive marketing program that will
help us establish profitability quickly and set the stage for continual growth.
6.1 Marketing Strategy
Launch marketing
Most of the tea centres chains do little or no marketing and advertising. And
same with the other beverages retail outlets like CCD and Barista. On the
international front also, the coffee giant starbucks spend less than 1% of gross
revenues on advertising, and when they do spend, it is usually to introduce a new
product.
An element of our differentiation will be our use of advertising and marketing to
gain awareness, build customer traffic and establish a strong brand image. We
intend to create immediate customer awareness and not wait for word-of-mouth.
We are also building customer traffic immediately with an aggressive Launch
Marketing Plan.
Launch marketing will promote awareness, build immediate traffic and establish
our brand image via several methods:
Public relations/publicity
Direct mail
Local print and broadcast media
Design and packaging
Sampling
Superior location
Desirable store ambience
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PubIic ReIations
A strong public relations/publicity program uses as its primary "hook"
these three main points:
1. our unique quality products
2. our distinctive start up
3. our one of its kind interactive tea house.
The goal of the PR/publicity is to achieve local market awareness and
establish the brand on a wider scale to set the stage for future expansion. Local
market awareness is vital because more than 50% of sales will come from
people living within a 10 km radius of the shop.
Local awareness will help drive the expansion by generating opportunities
created by the media buzz and familiarizing people with our brand name. t will
help set the stage for future brand identification.
Media
We'll advertise in the following media which includes Print, TV and Radio.
The Times of ndia
Gujarat Samachar
Divya Bhaskar
FM radio station
Local cable channel
Website
Our website would be fully e-commerce functional and could easily become a
significant revenue source.
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The website also markets Cozy Cup with:
A monthly newsletter
nformation about the tea industry and the like
A map to our store
Store hours
Special events
Special bookings
Health tips
Special offering
Promotional Schemes
Online interactive activities
Co-advertising
Others
Ahmedabad is the home to thousands of individuals who can be important to the
successful positioning of Cozy Cup. One mention on a TV talk program, youth
programs like MTV U or in a 'lifestyle' magazine can launch many successful
careers and businesses.
With literally hundreds of celebrities and wealthy business people as local
residents, the word-of-mouth recommendations from these people can drive
significant business to us as well as generate favourable publicity.
Many celebrities visit Ahmedabad. Celebrities are also actively involved in the
community, many supporting several local charities. Our involvement in the
community will enable us to garner exposure for Cozy Cup among an important
group of local residents.
Key individuals will be targeted with gift baskets from Cozy Cup containing
samples of our products to entice them to visit Cozy Cup and talk about us with
their friends.
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SampIing
We will engage in several sampling activities to introduce potential customers
(and current customers) to Cozy Cup range of drink options.
Samples will be distributed to key individuals
Samples will be given to by-passers on the street
Discount coupons will be distributed on the street, via direct mail and at
special events
Complementary tea will be served at charitable and civic events
6.2 SaIes Strategy
Our sales strategy includes:
Hiring for attitude so that we always have a friendly, enthusiastic staff
to make customers feel welcome and appreciated; constant staff
training to assure the best quality possible
State-of-the-art sales/inventory system to reduce customer waiting
time, and create efficient product ordering
Sell chocolates and gift baskets on our website
Establish tea service at local businesses
Create an ongoing sampling program
Conduct a consistent, aggressive marketing program
Be an active member of the community; be visible at charitable
functions
Solicit customer feedback to constantly improve and streamline our
operation