Retail Management Report- by Heena Jain

m
U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t
Heena Jain MBA3/1325
Shiveen Jindal MBA3/13xx
Chayya Singh MBA3/13xx
Manpreet MBA3/1329
2014
Retail Management
New Low-Budget retail store
Group 9
T-PoG

Retail Management 2014
U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 1
Table of Contents
Sr No.
Content Page No.
1
Executive Summary 2
2
Store Concept 2
3
Retail strategy statement 4
4
Why this Business? 4
5
Industry Dynamics 5
6
Store Design & Layout 8
7
Operational Plan 10
7a
Sourcing 11
7b
Stocking 12
7c
Order Preparation 14
7d
Maintenance 15
8 Human Resource Planning 17
9 Business model Canvas 19
10
Marketing Strategy – (Segmentation, Targeting, Positioning) 21,22,23
11
Retail Mix 24
11a
Merchandise Mix 24
11b
Pricing & profitability 26
11c
Location planning, trading area 26-27
11d
Promotion Mix 29
12
Finances 30-33

Executive Summary
T-PoG is the first of its kind, innovative Tea shop which targets the youth & tea lovers
with over 100 kinds of tea, Classical Indian ambience, safe and cool place to hang out, a cool
book store & everything what Indian youth can think off. It will offer different kinds of teas
& various tea time snacks. It will provide a new kind of experience of having tea. Indian
youth love tea and leaving those road side small tea shops, there is no place to enjoy tea.
T-PoG will fill that gap & will provide an overall experience of having Tea with its
differentiated offerings. Karaoke, Books, games to name a few. Most importantly it will be a
24*7 open, low budget shop.
The report contains the business plan for starting and operating the shop. It’s Segmentation,
Target market, positioning, Marketing & retail mix.
The report also explains the store layout, Consumer journey, and various promotional
events for the retail shop. It finally concludes with an estimated 6 months Finances for the
operation of the store.
The store with an average order of Rs.50/person, is estimated to achieve its breakeven in ….
Years, after which it is profitable with a 50% Gross profit margin on a minimum of the above
order size.
Store Concept
India is the second largest producer of tea and one of the largest consumers too. Indians,
Particularly Indian youth love tea. Tea is one thing that refreshes them. There are more than
5 million small tea shops across India. There are high end coffee shops like café coffee day,
Star bucks on one hand and the local tea shops on the other. But no shops to serve the
middle class. Middle class form a majority of Indian population. Our T-PoG is a 24*7 Tea
shop which will serve the Indian middle class. College students don’t feel good to have tea
at local stalls, also they offer low variety. They even cannot afford to visit high end cafes. At
T-PoG menu ranges from Rs. 5 to Rs.50. Store will provide an Indian ambience, on demand
karaoke, book store and table games like snake & ladders, ludo etc. the core product of our
shop is the experience of having tea. It will have a self-service mode of serving. Each table
will be equipped with ordering kiosk from which customer can place the order. Order will be
received by the counter person who then forwards it to the kitchen. Before 5 minutes of the
completion of order, customer will receive notification on the table kiosk that their order is

Ready and they can collect the order from counter and pay the bill. Table games and books
to read will be available free of cost, while customers have to pay if they want to buy the
books. In case the book demanded by customer is unavailable, we will make it available
within 4 days. Some of the critical success factor for this kind of food tea store is the Inner
environment of store and behavior of staff with the customer. All the necessary training will
be given to staff time to time to take care of the same. To increase the pocket size of the
customer in this type of low budget tea shop, it is required that customer spend more and
more time at the shop, That is the reason to provide Books , table games and on demand
karaoke. Also there will be special state wise tables (more explained in store layout) to
enhance the experience of the customers and engage them more and more. Customer walls
etc. will add value too.
How it Works
Customers enters the
Shop & occupies their
Table
Order Placed through on
Table I-Pads with in built
Menu
Order Received at counter
Forwarded to kitchen
1 Order
Received
Order ready!!
Notification received
On table
While the order is processed,
Customers can read books
From the large library, enjoy
Free WiFi at iPads on table, &
Can also request songs to play
Collect Order
& Pay the Bill
Order ready!!
Notification received
On table

Retail Strategy
Why T-PoG?
India is one of the largest consumers of tea. Annual consumption of tea in 2013 in India was
close to 900 million Kgs. On an average every Indian has tea 2 cups a day. When we talk of
population between 15 to 40 years, average consumption is 4 cups a day. India has 190.7
million households which fall under Medium Income group. 46% of Indian population falls
between 15 to 45 years.
There are high end coffee bars like Café coffee day, Starbucks etc. on one hand, while low
end local Tea stalls on the other hand. There are no Tea/Coffee stores which are targeted to
especially to middle class, which in fact is the biggest by population. Indians love tea.
Professionals during office breaks, Students while doing the college works, late night works
often search for this kind of places. Girls don’t feel good having Tea on local tea stalls. They
cannot afford to go to high end coffee shops daily. So there is a huge gap which T-PoG has
aimed to fill.
Anand Nagar, Khandwa, The place where T-PoG is expect open has more than 30 colleges
(with hostels) and offices with an average population of 200. There are no Good Tea/coffee
shops or restaurants in the 10 km radius except some local tea stalls. People have high
disposable income and consumption capability in the area. So T-PoG will be the ideal shop
for the people of that area.
T-PoG aims to provide all the facilities provided by high end coffee shops, at low prices to
serve the masses. Below is the explanation of how T-PoG will provide value to its target
Market.
The Main aim of T-PoGis to serve the tea lovers with lots of different varieties of tea
at a place which is safe and comfortable yet has the classic Indian ambience. A place
where they can pass their free time, do there official work out of the office and at the
same time enjoy their favorite songs. Where they can have real Darjeeling/Assam tea
very near to them

Industry Dynamics
With the increasing disposable income and growing middle class across India, People now
are more outgoing when compare to anytime in the history. Indians love to eat and drink
out. With the largest demographic in the world, among the total population of 1.25 billion in
Indian, 46% falls in the age group 18-44. And the result of this, the restaurant industry in
India, which is mainly driven by the young population aged 15 to 44 years has registered
revenues of INR 75,000 crores in FY'2013. The industry has witnessed a sound growth which
has been fueled by the advent of large number of national as well as international chains in
the organized market. Many international chains such as the Mc Donald's, KFC, Dominos
and Pizza Hut largely have dominated the organized restaurant market in the country over
the years.
Free
WiFi
Books
Table
Games
KaraokeRich
Menu
IPads
Value
Proposition

The overall restaurant market has grown at a CAGR of 6.6% from FY'2008 to FY'2013 and
has witnessed an increase in revenues to INR 75,000 crores in FY'2013 from INR 50,000
crores in FY'2007.
The changing lifestyles with the increasing nuclear families and a rise in the urbanization in
India over the past years have also supported the growth of the restaurant market in India.
Additionally, the change in customer taste has also played a major role. Due to the growing
exposure to the international cultures and lifestyles, the Indian population has started
developing their tastes and is reaching out to restaurants trying new dishes. This change in
the taste preference of the people in India has motivated many international and Indian
players to expand their reach in the Indian restaurant market.
The Indian organized restaurant chain market has witnessed an upward trend and has
grown at a CAGR of 19.1% from FY'2008 to FY'2013 where it has witnessed revenues of INR
20,000 crores in FY'2013 growing from INR 7,000 crores in FY'2007. The organized chain
market in India includes a large number of players in the QSR, full service, PBCL and the food
court segments. The market has significantly expanded primarily owing to the high demand
among the large Indian population over the years.
The Quick Service Restaurants (QSR) and the casual dining restaurants account for a major
share of the revenues of the organized chain market in India. The QSR's and the casual
dining restaurants together contributed a market share of 80.6% in FY'2013 to the organized
restaurant chain market.
20
55
Restaurant Industry
Organised
Unorganised
Amounts in '000 Crores
81%
19%
Organised Restaurants
QSR & CD
Others
Trends Of the year 2013

Growth of Restaurant industry in India
The key drivers for Tea shop can therefore be summarized as follows:
 Increased spending ability and rising aspirations
 Upward trends in Tea consumption
 More % of young population among the total population
 Changing taste preferences leading to restaurants
 Ease of Availability/Reach
0 10 20 30 40
50
60
70
80
2007
2010
2013
43
48.75
55
7
11.81
20
Overall
Organised
Cagr 6.6%
CAGR 19.1%

The key challenges for the Tea shop are:
 Constantly changing laws
 Bringing fresh tea leaves from Darjeeling on regular intervals
 Threat of the entrance of competitor in the same area
 Availability of labor
As many of the challenges can be controlled, Tea Shop in the particular area provides a
great opportunity. There is a huge untapped market and most importantly people are in
immediate need of such kind of shop. Also our business provides an opportunity to develop
a private label tea to be introduced in the later phase once the brand is established. The
availability of farm in Darjeeling presents great backend support for the forward integration.
T-pog is a two floor Tea shop. Ground floor will be with air conditioner and First floor will be
open to air, so that customer can enjoy sunrise and sunset while having their tea.
Store Design Layout

On Ground floor
A. Entrance
B. Normal serving tables
C. Special tables dedicated to states.
I. These will be separate compartments, with the interiors representing
the culture of the particular state. It is so, that the customer can have
an experience of the particular state.
D. There will be a book shelf besides counter.
I. This book shelf will contain all latest love, Fantasy, and related novels.
NEWS papers and other books
II. From the counter customer can either issue a book or can purchase it.
III. If the customer issues the book he is allowed to read the book in
store only.
IV. This activity is for engaging customer for long time.
E. Kitchen will be on the ground floor to prepare all the orders.
F. The stairs will be on the left side of the entrance, so the customers willing to
go on the first floor can co directly
On the first floor-
A. First floor is with the view of sunrise , sunset and with the moonlight as it is open
floor. (Open to air , will still have a shade, but no side walls)
B. Tables for groups
C. Smoking zone
D. And a karaoke where people can enjoy their tea with guitar and music. This is an
another activity for engaging customer.
E. And most importantly a customer wall- where they can show their talent, views and
anything what they want to share.

Operational Plan
Our Operations Primarily is divided in 4 major Parts
 Daily procurement of Milk and dairy products
and vegetables
 Twice a week procurement of spices and
other general food items
 Special Darjeeling tea will be sourced from
Darjeeling via railways in the second phase
Sourcing
 Most the dairy products & needs to be stored in
Refrigerator and Deep Freezer
 A wooden wardrobe will be required for proper
Placement of Crockery items
Stocking
Order Preparation
 Orders received at counter will be forwarded to
kitchen by Counter person
 Orders are made by using IPads on all tables
 Modern cooking equipment for efficient
cooking
Maintenance
 This includes all types of normal operations of
Restaurant apart from specific operations mentioned
above. Regular Crockery updating, IT systems, Library,
Kitchen Maintenance

Sourcing
Sourcing of Milk
Milk will be delivered directly to the restaurant twice a day by
the milkman of the local area. Usually Sanchi milk is the best
quality of milk available in the region. It is supplied by Sanchi
distributors having their outlets at all the major areas. Milk will
be available a wholesale rates through these Sanchi distributors
which will deliver milk directly to the restaurant.
Sourcing of Bakery products & Vegetables
All the bakery products like cheese, butter, eggs etc. which
have low shelf life and needs to be served fresh will be
procured daily from the local wholesale vendor. Fresh
green vegetables too need to be procured daily in the
morning from the local vendors. So the an estimated
quantity of these things will be procured every morning on
daily basis
Sourcing of Kirana items
Sugar, salt, Spices etc. kirana items have a long
shelf life. So these things will be bought weekly
or fort nightly from the local wholesalers in
bulk quantity. So as to facilitate the operations
of next 7-15 days. Also for Gas cylinders, we
initially will buy 3 cylinders although we need
only two for daily operations. 3rd
cylinder will
act as a backup in case of any emergency. Cylinders are delivered directly to restaurants by
the local gas agencies, within 7 days of the order. We will procure it in the same manner. As
gas pipeline connection is not available presently in the area, we have to buy cylinders.

As we are a low budget restaurant, procuring the entire items at least possible price will be
the key for long term Profitability. But at the same time we have to ensure that the best
quality of all these things are bought. For the examination of this, regular quality checks
needs to be run (explained in detail, in the maintenance part)
Sourcing of crockery and Utensils
As the main aim of T-PoG is to provide an overall
experience of having tea, crockery plays an important
role. Crockery needs to be updated every 6 to 8 months.
Similarly Kitchen utensils too will be updated as & when
needed. There is no fix place for the procurement of these
things, as they are impulse buying items.
Books & Games
Books, A very important part of T-PoG, will be
updated when required. Books will be sourced
mainly from amazon.com , Also some of the will
be procured from local book dealers.
Stocking
Stocking the inventory in a efficient manner is one of the most important part for any type
of business. It directly affects the overall profitability of the business. We have a special
attention for the storage of our inventory.
Deep Freezer & Refrigerator All the Dairy products like
butter, milk, Paneer, Cheese etc. and the fresh green
vegetables will be stored in deep freezer for continued
freshness. A full size refrigerator too will be available the
store for the same purpose. As the dairy products and
vegetables get spoiled quickly, deep freezer is essential to
avoid the spoilage probabilities. Both the refrigerator & the
deep freezer are to be kept inside the kitchen only so as to
have quick access an reduce the overall delivery time.

Storeroom
Besides the kitchen, there will be a 225sq ft storeroom which
will act as a warehouse for all the other items. As we are not
keeping large stock, so this room will be enough to house our
entire inventory safely and also will give us a quick access for
the same. It will have shelves for storage of Kirana items, two
wardrobes for crockeries. So that entire inventory is kept safely
and is quickly accessible.
The entire storage place needs to have proper ventilation. All the stocks need to be
updated constantly. For this our IT team has developed software which will keep us
updated about the quantity of each item present in the store room. All the incoming stock
needs to feed in the software. It will calculate the consumption on the basis of orders
received.

Order preparation
One of the key factors behind the success of any restaurant is the time between point of
receiving order and the point of delivering the food. This time needs to be minimized. Chunk
of this time depend on your ability to prepare the ordered food.
Cooking the food
Our kitchen will be equipped with one Microwave oven,
2 No.s Toasters, 1 No. 4-Burner Gas stoves, 1 No. Mixer
grinder and 2 No.s Induction plates.
All the basic ingredients will present in kitchen in limited
quantity required for daily operations. Also the
ingredients stored, are very near to the kitchen. Basic
Sauces, Chutneys etc. ingredients which are required for
most of the dishes will be prepared at the start of the
day. Now, once the order is received at the counter, it
will be transferred to the chef. Chef then will prepare
the order. Just when the food is cooked (not served), chef will inform the counter person,
who will transmit the signal to the IPad on the table of the respective customer.
Serving the Food
Just when the food is cooked completely, customer
will receive notification on the IPad screen of their
table (Image showing the notification). So while the
food is being served, customer can go to the
counter. While he reaches the counter, his order will
be served to him by then. Customer then, can pay
for the order and collect his order.

Cleaning of the dishes
Once the customer leaves the table, serviceman of the particular table will collect all the
dishes from the table, clean the table and take the dishes to the washing area near the
kitchen and handover the dishes to the serviceman of the washing area. Cleaned dishes
then will be transferred again to the kitchen.
Maintenance
This part basically talks about our backend processes. Besides the normal operations
mentioned above, all other miscellaneous operational activities forms the part of
maintenance. Periodical maintenance of each and every thing is very important to make the
business more efficient & thus more profitable. This is the only reason to include
maintenance part as a separate head. Further, maintenance is subdivided into following
heads:
Software Connectivity

IT Systems & Accounts
This will insure the proper working of Computer systems, Our software for ordering from
the table directly, Wifi system, Karaoke which is one of our differentiated offerings.
Maintenance of the books of accounts and other financials is one of the very important
aspects for any business to work efficiently. Proper reporting of revenue, Profitability,
Developing strategies based on the financials.
Kitchen Maintenance
For restaurant business, proper maintenance of kitchen is must. The quality of food you
serve to the customer directly depends on the degree of hygiene you maintain in the
kitchen. Head chef will be trained to achieve the best hygiene standard in and around the
kitchen.
Training
For any business to run efficiently it is very important that all the employees are expert in
their respective domains. For T-Pog, as we want provide an overall experience to our
customers, it is necessary that not only the waiters but all the members of the staff present
in the restaurant thrive to do this. Regular training sessions will be conducted for all, initially
with the help of training institutes & then staff to staff training in the future.

Human Resource Planning
Human resources are the most expensive and most important of all the resources. Proper
planning is to extract most out & make the business profitable. Below are the different
departments and their responsibilities and the number of person required in each
department.
Responsibilities & size of Departments
Housekeeping:
Housekeeping personnel will be responsible for the cleanliness in all areas of the restaurant.
Cleaning tables once the customer left the restaurant, cleaning of toilets, smoking area,
cleaning of dishes, utensils etc. They will also assist logistics person for daily logistics. And
other functions like serving & assisting customers.
Housekeeping Department will be led by Restaurant manager and will consist of 7 helpers. 2
helpers for each floor 1 for kitchen for the Day shift and 1 helper on ground floor and 1 in
the kitchen for the Night shift.
Most (3) of the helpers of housekeeping department will serve also assist other
departments as all of them will be required only during peak hours & for the rest of the time
they can assist other departments.
Restaurant Manager
Tech.
Dept.
KitchenLogisticsHouse keeping

Technical Department:
Technical department is further divided into two sub departments Marketing & IT
department.
IT department will consist of only 1 IT person who will be responsible for the proper working
of IPads on the tables, Computer systems, Karaoke, Wi-Fi and other IT systems in the store.
Marketing will consist of One marketing manager who will be responsible for designing
different campaigns, publishing ads in the NEWS papers & on radio, Organizing time to time
events for engaging audiences, Managing instore customer wall, and most importantly he
will be responsible for Customer relationship Management.
IT and Marketing together will also be responsible for managing online presence of T-PoG.
i.e. managing all the social media pages of T-PoG, writing blogs and managing Website of
T-PoG!
Logistics
There will be 1 person in this department who will be responsible for bringing stock for all
the departments. He will be assisted by one of the helpers of housekeeping dept. he will be
responsible for the shopping of fruits, vegetables, bakery, grocery and other needs of the
restaurant. He will be responsible for all the work outside the restaurant & report directly to
the Restaurant Manager.
Kitchen
Kitchen will consist of a Head chef, two assistant chefs & 2 assistant helpers specific to
kitchen only. Head chef, One assistant chef & One assistant helper will work in day shift &
the other assistant chef & Helper will work at night sift.
Head Chefs will be responsible for training of all helpers and assistant chefs. Processing
orders, preparing dishes, keeping the manager updated above the requirements of all the
raw materials (bakery, Milk, Vegetables, spices etc.)
Assistant chefs will be responsible for preparing all the dishes and assisting the head chef.
They will be responsible for maintaining the inventory of raw materials in the kitchen and
store room. They will report to Head chef.
Assistant helpers as the name suggests will assist chefs in their work. Cutting vegetables,
preparing dishes etc.
In all there will be 15 employees including the manager in the restaurant.

Business Model Canvas

Marketing Strategy
T-PoG is a youthful brand, and so all marketing should be focused on our target markets.
Below is the explanation of all the marketing tactics & strategies to be followed for T-PoG!
We should have clearly defined segments and the targeted audiences
Segmentation
ALL TEA LOVERS
Students Working professionals
Teens Youth Cools Matures
Age 15-18 18-24 24-40 40+
Sex M/F M/F M/F M/F
Income Low Low/Med Med/High High
Education Low Low/Med Low/Med/high Low/Med/high
Lifestyle
Study
Oriented/
Highly
outgoing
Study
Oriented/
Highly
outgoing
Heavy Work
loaded,
Medium
outgoing
Medium
workload, Less
Outgoing
Urban Tier ii Tier ii Tier ii Tier ii
Avg no. of TEA
cups/DAY
2-3
3-4 3-4 4+
Segment
Attractiveness
Med High High Low
Segment
Awareness
High High Med Med
Price sensitivity High High Low Med
TARGET MARKET

Students
a. Teens : These are young school going students. There lifestyle is oriented highly
towards studies, have low income and they like to go out and enjoy with friends.
Highly price sensitive. They actually look for the places which costs them less and can
serve most to them.
b. Youth : These are young college going students. A major part of this segment stays
in hostels. Higlhly studies oriented. Like to party & hangout as couples and groups.
Have low to medium income. They are active 24*7. So they are ideal targes for T-
PoG. Their sensitivity towards price is Not very high But also not very low.
Working Professionals
a. Cools : They are heavily work oriented individuals. Have a high disposable income.
Like to enjoy most and are readily outgoing. Very less sensitive towards price. As T-
Pog is located in area with more than 20 offices in a 3 K.M. radius, T-PoG is highly
accessible to them. They can come to T-PoG before the office hours, During breaks
and after office hours. They are one of the major target market for t-Pog.
b. Matures: They are working professionals of more than 40yrs of age. Mostly
married and have many responsibilities. Are less out going and like to enjoy time
with family.
Targeting:
As clearly indicated in our segmentation table, Working professionals cools & Young college
students will be our major target segments. Also young students will be targeted.
Positioning:
T-PoG is a low budget highly involving, restaurant. It is positioned as a cool and safe place to
hangout which have a lots of varieties. We provide not just Tea but an overall experience for
enjoying tea.

Positioning on Map
High price
Low price
Low
Indulgence
3 star
Hotels
Local Tea
Gumthis
Restaurants
Sweet
Shops
High
Indulgence

Retail Mix
Merchandise mix
T-PoG will have more than 50 different varieties of Tea divided broadly into two catagories.
Besides tea, we will also have Sandwiches, toasts, Rolls and the traditional indian dry snacks
like Mathri, Pinni, Laddus, Biscuits, Sev, Chakli, Naan khatai, khakra, thepla & other regional
tea time snacks.
Tea
Desi Tea Videsi tea
 Plain tea
 Clove Tea
 Cardomom Tea
 Ginger tea
 Masala tea
 Tulsi tea
 Pepper tea
 Customized tea
 Coal special tea
 Strong/Light tea
 Etc
 Chinese tea
 American tea
 British tea
 Malaysian tea
 Scientific tea
 Green Tea
 Black tea
 Lemon tea
 Ice tea
 Tea Latte
 Etc.
Toasts, S/Ws
 Butter Toasts
 Cheese Toasts
 Veg cheese Sandwich
 Egg sandwich
 Oregano sandwich
 Masala rolls
 Egg rolls
 Paneer tadka roll
 Chinese roll
 Malai Roll
 Kachori/Samosa
 Mathri/Pinni
 Khakra/thepla
 Nan khattai
 Bhel/ Garlic buns
Rolls Desi snacks

Total Product Concept
Potential Product:
Female drivers
and Speed
Control Alerts
Augmented Product:
Safety, Comfort, karaoke and
free reading novels
Expected product:
On Time Service, Quality ,ambience
and Trust
Actual Product:
Tea and snacks
Core Service:
Experience

Pricing & Profitability
Pricing the merchandise is a very critical factor. It cannot be priced high as we are a low
budget segment player. We cannot price it low as we are providing so many facilities which
bears high cost.
When we see our competitors, their price ranges From INR 10/cup (200ml) at local gumtees
to INR 150 in nearby 3 star hotels. Similar price range for other categories, ranging for INR
25 to INR 500.
We will provide a mix of both, but slightly towards the lower side. Our tea prices will range
from INR 10/ Cup to INR 50/ Cup (220ml) . Below is the broad pricing for different categories
& also the gross profit from each category (Gross Profit = Selling price – Cost of sales, this
includes all raw materials but no other expenses)
Category Price range Gross profit Margin
Tea 10 to 50 50-70%
Toasts & Sandwiches 15 to 50 40-65%
Rolls 15 to 40 30-50%
Dry Indian Snacks 10 to 30 50%
Other Snacks Upto 50 Variable
Wi-Fi Free upto 1hr, 5/mb beyond. 100%
Books Demand Based 15-20%
Location Planning
Location planned for Our first Restaurant is Anand Nagar Khandwa, Madhya Pradesh. It is a
big commercial area with almost 35 colleges & offices with an average strength of 200
persons, within the radius of 3 K.M. Apart from local tea shops (gumtees) there are hardly
any good shop for having snacks. In the area. Though there are some bakeries but no
restaurants around.
T-PoG is planned to be located on the main street with two main roads passing near by.
Prices in INR/serving

Traffic
Signal
Parking
Parking
Entrance
To St. Pius
To Alliance College
ToG.D.C
ToRajUniv.
3 K.M.
5.5 K.M.
8 K.M.
Trading Area

Primary Trading Area
Our primary trading area extends from Alliance college in the west to St. Pius school in the
east, and from G.D.C. in the north to Raj Univ. in the south. The area surrounds almost 30
colleges, Offices & schools with an average of 200 individuals working or studying. Primary
trading area has a population of more than 10,000. From any location in our primary trading
area, T-PoG can be reached within 25 Mins.
Geographic Boundaries St.pius (E), Alliance college(W), G.D.C (N),
Raj Univ. (S)
Population 10000(Residential) +
5000(Daily Commuters)
Radius 3 K.M.
Max time to reach T-PoG from any point 25 Mins
Trading Areas on Map

Secondary Trading Area
Geographic Boundaries Kishore nagar (E), Clock Tower(W), Padam
Nagar(N), Civil Lines(S)
Population 1,50,000(Residential) +
Radius 5.5 K.M.
Max time to reach T-PoG from any point 45-60 Mins
Tertiary Trading Area
Geographic Boundaries Hotel Aangan(E), Doodh talai(W), Hotel
Zayka(N), Indira Square (S)
Population 4,50,000(Residential) +
Radius 8 K.M.
Max time to reach T-PoG from any point 70-80 Mins
Promotion Mix
As we have a specific target audiences, all our promotional activities should be targed to
them.
Sales promotion: During the initial few days a lot of sales promotion would be done to
attract the customers. Combo offers, 50% off , Buy 1 get 1 free etc. offers will be given for
initial few days.
Direct Marketing: Direct marketing by going in different colleges and offices in the near
by area. Sponsoring events of colleges & schools etc would be done. As colleges and offices
are our specific TG, direct marketing in the colleges would be done on a large scale.
Media Advertising: Advertisements in the local News Papers & radio channels would
give a reach to huge number of audiences as these are two most common channels among
the youth

Internet Advertising: This is an era of internet. Each and every individual have
smartphone now a days. Advertising through is fast and extremely targetable. A lot of SEO
would be done for our restaurant. We will offer free discount coupons through websites like
freecharge, Mobikwik etc. Publish ads on all the websites our target audiences visit through
Google Adwords.
Social media marketing: Social media is expanding at a very high rate; specially young
population is attracted towards it. We will have our company’s page on all the major
websites like Facebook, twitter etc. We have a dedicated marketing manager to manage
social media. We will organize contests for best new style tea on Facebook & twitter. Where
people will submit their styles of making & having tea. Best idea would be awarded with a
free meal at T-PoG.
InStore Promotions: Our store will be decorated regularly on different festivals and
occasions. Theme of all the promotion activities goingon on different channels will be in
contrast of the decorations in the store. Time to time we will organize different events to
engage audiences.
Loyalty program: Customers can signup for special T-PoG Chai card. They will get extra
benefits through these cards. Extra 10% off for card holders. Also they will get express
service where they will be preferred over customers for processing of orders. They will get
free tickets for events organized by T-PoG.
Finances
Private label Tea
Revenue Streams
Food sales
Advertising income
Cost Centers
Salaries
Maintenance
Promotions
Fixed
Variable Raw Materials
Logistics

Fix Costs
a. Salaries
b. S,G and A expenses
S.G and A expenses
Particulars Monthly Cost Yearly Cost
Electricity, Water , Petrol 15000 180000
Internet 2000 24000
Housekeeping 1500 18000
Miscellaneous 5000 60000
Marketing 5000 60000
Total 28500 342000
S,G & A Salaries Total Fixed monthly Expense
28500 148000 176500
Payroll
Department Role
No. of personnel
required
Salary per
person
Total/ year Total / month
Kitchen
Head chef 1 300000 300000 25000
Assistant chef 2 180000 360000 30000
Helper 2 60000 120000 10000
Housekeeping Helper 7 48000 336000 28000
Marketing Jnr. Manager 1 120000 120000 10000
IT Manager 1 120000 120000 10000
Logistics Jnr. Manager 1 120000 120000 10000
Admin Manager 1 300000 300000 25000
Total 16 1776000 148000
All amounts in INR

c. Setup cost
Setup Cost (one time) Fixed
Category Particulars Units Cost/unit Total
Furniture
Table set 20 8000 160000
Decoration Various Various 500000
Kitchen Equips
Gas burners 2 8000 16000
Microwave 1 15000 15000
Deep freezer 1 90000 90000
Refrigerator 1 50000 50000
Induction cooker 2 3000 6000
Utensils Various Various 10000
Crockery Various Various 20000
It system
IPADs 20 10000 200000
Computer 1 15000 15000
Software Various Various 15000
Miscellaneous 200000
Total 1297000
Market Sizing & Opportunity
Market sizing and Contribution margin Calculation
Population of Khandwa 1390000
Population in the age group 15-40 yrs 667200
Target segment size in Primary trade area 6000
Estimated Numbers of orders per day 100
Estimated avg. Order size 185
Revenue / month 555000
Gross profit / Month (40%) 277500
Operating cost (In the above table) Fixed/ Month 176500
Contribution Margin/ month 101000

Breakeven Analysis
Breakeven analysis
Breakeven period(Months) is (Total Fixed cost)/Contribution towards
Fixed cost each month
(1297000)/45500
13
Total months for Breakeven is 13 Months
Profit & Loss Statement
Profit & Loss Statement For next 3 Years
Assumption: Annual growth rate= 10% Tax 30%
Particulars Year 1 Year 2 Year 3
Revenue 6660000 7326000 8058600
COGS 3330000 3663000 4029300
S,G & A Expenses 2118000 2329800 2562780
Operating Profit 1212000 1333200 1466520
Tax @ 30% 363600 399960 439956
PAT 848400 933240 1026564
The End!

Retail Management Report- by Heena Jain

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