This is a case study of Chai Point

1. Chai PointINDIA RUNS ON CHAI…
A CASE STUDY PRESENTATION BY :-
Mr. Sagar Chavan
MBA 1st Year, PUMBA, Pune University.

2. Overview of Chai Point Business Model
• Why Chai Point ?
• Introduction
• 7 P’s of Chai Point (Marketing Mix)
• Business Model
• How Chai Point is different ?
• Analysis & Solution
• Ground Research

3. Why Chai Point ?
• India runs and lives on tea and it is second in terms of production
and the consumption.
• India consumes 15 times more tea than coffee.
• “India is the place where in offices , college , meetings etc. have
tea break and not a coffee break.”
• Unlike coffee bars like CCD there are very few tea bars that are
devoted to the culture of the tea.
• ‘Chai Point’ turned the way how chai is consumed in India.
• Other than tea there are numerous product manufactured and
sold at Chai Point
• Online Chai Delivery is innovation & value addition to the brand.

4. Introduction
• The ‘Chai Point’ is tea company and a café chain which focuses on
the tea based beverages.
• It was founded in the year 2010 by Mr. Amuleek Singh Bijral at
Bangaluru , who graduated from Harvard Business School.
• It targeted the working professional around the country , basically
the white collar working Indian.
• USP is the Cup of Chai is made with fresh , natural ingredients
and served to offices and working professional across the country.
• It sells over 6,00,000 cups of Chai everyday as per economic times
survey.
• They have 104 outlets at 8 cities and employee more than 1200
employees.

5. 1.Product Mix
• Chai Point offers variety of Chai so becoming a one point shop for different tea lovers.
• The product are first research with respect to ingredients before launching it into the
market.
• Traditional Snacks like samosa , cakes are also served.
• Customized ‘Chai’ helps in satisfying distinct needs of customer.
Sr. No. Product Mix Sub Categories
1 Hot Chai ( With Milk ) Ginger , Masala , Elaichi , Lemongrass , Jaggery , Sugarless , Classic
2 Hot Chai ( Without Milk ) Green , Sulaimani , Ginger Lemon , Lemon
3 Herbal Chai Tulsi , Tulsi Lemon , Tulsi Ginger , Green , Black
4 Ice Tea Lemon tea , Cranberry Ice tea , Peach Ice tea
5 Coffee Filter Coffee , European Hot Chocolate
6 Cold Beverages , Shakes Cold Coffee , Oreo Twist , Hunger Break ( Peanut Butter ) , Shakes
7 Fresh Juices Water melon ,Papaya , Sweet and salt lassi
8 Sandwitches Mix veg delight , chilli panner , bread omlette

6. 2. Price Mix
 Price Mix focuses on hybrid strategy for pricing.
1. Premium Pricing
• Encourages product perception in target consumer group.
• It helps to maintain high profit and consistent business growth.
2. Psychological Pricing
• Based on the theory that certain prices has a psychological
impacts.
3. Bundle Pricing
• Able to control cost by lowering marketing and distribution
expenses.

7. 3. Place Mix
Chai Point gives high importance on the placement of its products
because it directly relates to accessibility for consumers.
• Company-operated stored - Chai Point is present in eight cities -
Bangalore, Delhi, Gurgaon, Noida, Mumbai, Pune, Hyderabad,
and Chennai
• E-commerce - An online order through the company website,
Zomato, Swiggy, etc
• Supermarkets and hypermarkets -Chai point Caffe is located at
Malls, super markets & HiTech parks
• Licensed stores Box.c - Chai point sells 6lakh cup daily of which 4
lakh cup contributed by Box.c dispenser alone
• Partner agents/Franchises

8. 4. Promotion Mix
• Mainly consistent Quality, cleanliness & on-time-delivery
• Beautiful packaging - Bagasse packaging & heat retaining disposal flask
• Raw Material -Tea powder use directly from the Farms, sulphur-free sugar
• Focused Areas - Hi-tech parks, Airport & Malls
• Chai-On-Call (3-10-20 TO YOUR DOORSTEP)
1. Digital marketing –
• Through social media (Facebook, Twitter, YouTube, Website, Blogs) & also
maintains the corporate website which highlights company information,
ongoing campaigns and sales.
• They have Reward programs - loyalty card, Credits and discounts.
• Reviews, Rating, customer service, and feedback.
2. Community Influencer
3. Conventional marketing - Magazine Ads, Hoardings, TV advertisement.

9. 5.Physical Evidence Mix
• It’s all about branding of Chai Point
• Chai Point attract people on Consistent quality, Delivery, Packaging
and Outlet atmosphere.
• Website is build beautifully and has easy steps for ordering tea and
much more.
• Attractive Packaging.
• Slogan – India runs on Chai – Attract people.
• Disposable packaging.

10. 6.Process Mix
• Chai point optimized processing tea raw material directly from
farm (Garden to Glass).
• Chai point introduce online web portal to order chai (Electronically)
• They also have adopted technology like BOXC.in (Automatic
dispenser)
• SHARK – Cloud base platform- Integration of Billing and Tracking
across all chai point through mobile payment and wifi based setup.
• Every day they offer combos of products for promoting new
products or complimentary
• Introduce loyalty point on subscription of tea online.
• Keeping customer engaging and maintain surrounding atmosphere
pleasant.

11. 7. People Mix
• Very important factor in service industry
• Without People all others like product, promotion , price and place
will not complete ; successful marketing.
• In Chai Point the team at front desks have very polite behaviour,
always smiling face which customer satisfied with happy moments.
• Offers combos and promote new products.
• Attend customer quickly without stopping them in Que.
• We found collaborative working throughout the outlet, follow
customer centricity.
• Chai point focus on developing people with marketing tool by
developing Online site, delivery by there own team for quick
delivery.

12. Business Model
• ChaiPoint is a Omni Channel business model.
• ChaiPoint has a doorstep delivery service branded as “Chai On
Call”.
• The chai also runs a vending kiosk based solution, ‘boxC.in’
which is India’s first IoT enabled automatic dispenser of
beverages mostly used in corporate companies.
• ChaiPoint serves nearly 6 lakhs cup of tea every day.
• They have 104 outlets at 8 cities and employee more than 1200
employees.
• Chaayos, TeaBox, Chaipatty are competitors.

13. Pillars of Chai Point
• Customer Sales(S)
• Quality of Chai(Q)
• Customer Services(C)
• Cleanliness(C)
• Ethics & Environment(E)

14. How Chai Point is different ?
• Technology & Innovation
• A cloud-based platform, SHARK allows for fast and seamless integration between outlets and
warehouse, monitor performance.
• Internet of Things (IoT)
• The country’s first IoT enables freshly brewed Chai dispenser (boxC.in). Capable of payment
integration.
• Heat Retaining Disposable Flask
• The first company in India to deliver a hot beverage to your doorstep, retains heat for 45-50
minutes.
• Mountain Trail Academy (MTA)
• Training center is responsible for sourcing, training, testing and certification of all employees
at Chai Point. Information about culture and experience about the tea around the world.
• Clean Earth
• 100% biodegradable packaging, the heat retaining disposable flask, recyclable, Delivery fleet
consist of electric scooters.

15. Analysis & Solution?
• Analysis - As of today, there are over 1870 cafes in the country.
In comparison, there are just 41 tea lounges cha bars in India,
pointing out the likes of Barista, Café Coffee Day and Starbucks
have done a great job of popularizing coffee consumption in
India.
• Solution - Nobody in office takes a cappuccino break. They take a
chai break. Office-goers are not looking for a lounge. So the
outlets should be near to the areas with lot of offices.
• Introduction of more new flavours required.

16. Conclusion & Recommendations?
• Conclusion - Its ironic that a good cup of coffee is easier to find
than a good cup of chai in tea-drinking nation like India.
• Tea chains attract a miniscule crowd compared to coffee chains.
• Recommendation - The chai Point innovation is what drives
them forward. The decision to new plans should be taken
carefully which should not affect negative growth to the current
growth.
• Depends on the area the tea rates must be different. Example:
Near college, rates must be less.
• More quality snacks or wraps should be introduced.

17. Ground Research at Phoenix Market – Nagar road
Crowd Pack - Chai Point Store in the mall Having a Cup of Chai

18. Ground Research
Having a good response even it is in mall A Swiggy Person ready to deliver Chain in 30 min
Along with Sustainable Packaging & good branding

19. Thanks from Chai Point
Thank You…