This document presents a business plan for a proposed tea lounge called Black Sea We Serve Art. It includes an introduction to the concept of a tea bar that serves homemade tea and small eats. It then outlines several models to analyze the business strategy, including the Pentagon model covering the 5 Ps of marketing, the Triangle model for supply chain management, and a Store EBITDA model for financial projections. It also discusses differentiation strategies, a cost leadership approach, and applies a Strategic Resource Management model to analyze key metrics.

1. Black Sea We serve Art
Presented by :
Abhijit Dey
Anirban Ghosh
Aswini Sahu
Gaurav Bhattacherjee
Mohd. Umair Athar
Shayan Alam

2. Agenda
 Introduction
 Pentagon model
 Triangle model
 Store EBITDA model
 Differentiation
 Cost leadership strategy
 Strategic resource management model

3. Introduction
 Retail format - Tea bar/lounge
 Serve short eats along with tea
 Hand-made tea
 Serve tea from all over the world
 Competition in India

4. Pentagon model
 Place
 Size of store – 1500 sq.ft.
 Location – High street
 Design –
• Ceiling and floor
• Crockery
• Tables and chairs
• Vintage car with dining

5.  Layout
Pentagon model (continued…)

6.  Product
 Menu
• Variants of tea beverages
• Single item snacks
• Combo meals
• Customized tea
 Miscellaneous offerings
• Best-selling books section
• Games – scrabble, chess etc.
Pentagon model (continued…)

7.  People
 Touch screen enabled digital menu system
 Training – Waiter cum store manager
 Hospitality
 Payback loyalty card
Pentagon model (continued…)

8.  Value
 Strict quality standards
 Price range of products
 Black Sea Premium card system
Pentagon model (continued…)

9. Pentagon model (continued…)
 Communication
 Positioning – Classy joint
 Target group – 27 years to 60 years
 Social networking promotions
 Sampling our product in our catchment area
 Screening of sports events
 Publicizing - Saturday edition of T2
 Word of mouth promotion

10. Triangle Model
Logistics
 Limited requirement
 In-store warehouse
 Ask vendor to deliver at store

11. Supply
Procurement
 Tea
• Collect from dealers & brand owners quarterly basis
 Milk & other fast perishable ingredients
• Collect 2-3 times a week as per demand from multiple vendors
• Procure in limited quantity as per demand
 Long lasting food items
• Collect once in a month/fortnight as per demand
 Storage
• Invest heavily to make it highly efficient
• Daily stock checking will be done to avoid shrinkage & predict better forecast
Triangle Model (continued…..)

12. System
 Timing
• 7 days a week. 10 AM to 10 PM. Make it flexible in peak days
 Efficient software
• Provide Rapid& detailed data
• Keep fully digitalized ordering system with details
 Equipment
• Required for making tea & other items in store
• Also to keep the storage at optimum level
Triangle Model (continued…..)

13. Store EBITDA
Calculation Black Sea (Rs Lacs / mth) Cha Bar (Rs Lacs / mth)
Café Coffee Day (Rs Lacs
/ mth)
Coffee Bean & Tea Leaf
(Rs Lacs / mth)
Trading Area Given 750sq ft 650sq ft 600sq ft 1000sq ft
Net Sales Measured = A 15,00,000 10,50,000 3,60,000 31,50,000
Retained Margin Measured = B 7,50,000 5,25,000 1,62,000 15,75,000
Retained Margin % Calculated C = B/A % 50% 50% 45% 50%
Store Opex : Measured = D
Rent 2,50,000 1,40,000 80,000 3,30,000
Salary & Wages 85,000 1,20,000 90,000 1,50,000
Power 30,000 25,000 25,000 40,000
Other Opex 50,000 45,000 30,000 60,000
Total Opex 4,15,000 3,30,000 2,25,000 5,80,000
Store ebitda Calculated E= B – D 3,35,000 1,95,000 -63,000 9,95,000
Store ebitda % Calculated F = E/A % 22.33% 18.57% -17.50% 31.59%

14. Differentiation
Electronically enabled digital menu system
 Option of customizing tea
 Vintage car dining
 Bridging the gap between Café Coffee Day and Starbucks
 Option to play chess over a cup of coffee

15. Cost Leadership
 High Asset Turnover
 One of the area of focus
 Operational costs
 Giving maximum importance
 Value chain
 Not focusing over here at now
Aiming to be cost focus company

16. SRM Model
Black Sea
GMROI
(in Rs./month)
GMROF
(in Rs./month)
GMROL
(in Rs./month)
Merchandise Intensity
(in Rs./month)
Selling Intensity
(in sq. ft./emp.)
(GM/Sales) * (Sales/Inv.)
(GM/Sales) *
(Sales/Selling Ft.)
(GM/Sales) * (Sales/FTE
Emp.)
(Inv./Selling Ft.) (Selling Ft./FTE Emp.)
Gross Margin
(in Rs.)
750000.00
5.00 1000.00 83333.33 200.00 83.33
Net sales (in Rs.) 1500000.00
Inventory (in Rs.) 150000.00
Selling Feet
(in Sq. Ft.)
750.00
FTE Employees 9
COGS (in Rs.) 750000.00
Inventory turnover ratio
(assumed)
5.00

17. SRM Model
Cha Bar
GMROI
(in Rs./month)
GMROF
(in Rs./month)
GMROL
(in Rs./month)
Merchandise Intensity
(in Rs./month)
Selling Intensity
(in sq. ft./emp.)
(GM/Sales) * (Sales/Inv.)
(GM/Sales) *
(Sales/Selling Ft.)
(GM/Sales) * (Sales/FTE
Emp.)
(Inv./Selling Ft.)
(Selling Ft./FTE
Emp.)
Gross Margin (in Rs.) 525000.00
5.00 807.69 65625.00 161.54 81.25
Net sales (in Rs.) 1050000.00
Inventory (in Rs.) 105000.00
Selling Feet (in Sq. Ft.) 650.00
FTE Employees 8
COGS (in Rs.) 525000.00
Inventory turnover
ratio (assumed)
5.00

18. SRM Model
Café Coffee Day
GMROI
(in Rs./month)
GMROF
(in Rs./month)
GMROL
(in Rs./month)
Merchandise Intensity
(in Rs./month)
Selling Intensity
(in sq. ft./emp.)
(GM/Sales) * (Sales/Inv.)
(GM/Sales) * (Sales/Selling
Ft.)
(GM/Sales) * (Sales/FTE
Emp.)
(Inv./Selling Ft.)
(Selling Ft./FTE
Emp.)
Gross Margin (in Rs.) 162000.00
4.09 270.00 20250.00 66.00 75.00
Net sales (in Rs.) 360000.00
Inventory (in Rs.) 39600.00
Selling Feet (in Sq. Ft.) 600.00
FTE Employees 8
COGS (in Rs.) 198000.00
Inventory turnover
ratio (assumed)
5.00

19. SRM Model
Coffee Bean & Tea Leaf
GMROI
(in Rs./month)
GMROF
(in Rs./month)
GMROL
(in Rs./month)
Merchandise Intensity
(in Rs./month)
Selling Intensity
(in sq. ft./emp.)
(GM/Sales) *
(Sales/Inv.)
(GM/Sales) *
(Sales/Selling Ft.)
(GM/Sales) * (Sales/FTE
Emp.)
(Inv./Selling Ft.) (Selling Ft./FTE Emp.)
Gross Margin (in Rs.) 1575000.00
5.00 1575.00 131250.00 315.00 83.33
Net sales (in Rs.) 3150000.00
Inventory (in Rs.) 315000.00
Selling Feet (in Sq. Ft.) 1000.00
FTE Employees 12
COGS (in Rs.) 1575000.00
Inventory turnover ratio
(assumed)
5.00

20. THANK YOU…