3. Executive Summary
Tea Tastewill offer a full range of teas (hot and iced), as well as pastries, tea
accessories, and loose teas for taking home or giving as gifts.We will train all of
our teatenders in the proper storage, brewing, and serving of each kind of tea.
We expect to easily generate sales to existing committed tea drinkers, who will
immediately recognize the quality of our products and services. Marketing to
the much larger local groups who are not yet familiar with premium teas will
emphasize our atmosphere (cosy, intimate, luxurious), our prestige-value (high
prices, the sophistication of having a favourite "exotic" tea type), and tea
accessories.
Mission
Our goal is to provide the finest premium teas and tea accessories to residents
of the Whitefield, Bangalore in a relaxed and fun atmosphere.
Objectives
To operate a successful tea and tea accessories café in Whitefield,
employing two to five employees the first year.
To obtain a minimum of 200 regular customers in the Whitefield market
the first year of operation
Maintain an average gross margin of 60 per cent.
Product Quality. We sell only the finest whole-leaf loose teas, and tea
accessories.
Excellent Customer Service. Each customer will be treated as would an
honored guest in our homes.
Company Summary
Our primary focus is in the over 50 kinds of loose tea we offer, including black
teas, green teas, herbal teas (infusions), and flavored teas (black or green tea
plus other flavors). We serve our teas hot and iced.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
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4. Keemun, blends like Chai.Tea Taste’s no-caffeine herbal infusions range from
flavored rooibus to fruit blends and medicinal brews (chamomile, ginseng, etc.)
Start-up Summary
Equipment and Inventory will make up 75% of start-up requirements.
Leasehold improvements and general expenses comprise the remaining 25% .
Market Segmentation
While we anticipate a split between locals and IT professionals, all members of
our target market are between the ages of 25 and 60, and have a moderate to
sizable disposable income.
Target Market Segment Strategy
Tea Taste cafe will provide the local upper-middle-class community with a
place to socialize, indulge themselves with fine teas and pastries.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. In fact,
higher prices for some items (Assam golden tippy versus regular Assam) 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.
Tea Facts
Tea is growing in popularity and more people are drinking tea in the
mornings as a substitute for coffee.
Tea is being consumed throughout the day; its milder caffeine effect
allows for multiple cups without the "jitters."
Today's tea drinkers do not limit their purchases to one season, but
drink tea all year long.
Tea has become the drink of choice for today's baby boomer, and tea's
health effects are giving tea a more active, youthful, and healthy image.
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5. Competition and Buying Patterns
In Tea industry, competition depends on quality of teas, knowledgeable
teatenders, and cultivation and education of a loyal customer base. Consumers
used to Lipton teabags and other low-quality, tea-dust offerings in grocery
stores are amazed at the range of tastes, textures, and fragrances from real,
high quality tea. Offer them a good cup, and they will usually return for the
rest of their lives. However, getting them to enter your store in the first place
can be a major challenge.
Our potential customers vary in knowledge of tea, and are seeking a wide
range of experiences and products.Tea drinkers are looking for a pleasant,
relaxing place in which to indulge their love of tea, share it with friends, and
learn more about tea varieties, cultivation, and health properties. Committed
tea drinkers will always choose quality over price or convenience, seeking out
the freshest whole-leaf and tippy varietals in the area.
Marketing Strategy
Our marketing strategy needs to accomplish two things: first, to make
potential customers aware of Tea Taste Cafe opening and location; second, to
educate potential customers as to what a Tea Taste 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.
MARKETING STRATEGY QUESTIONNAIRE
1: BACKGROUND
What business we are in?
What services and / or product do we provide?
What compelled us to start this business
2: MARKET
What is the market opportunity? What is the market size?
How can the market be segmented into logical customers group?
Is our market or business is affected by business cycle or system?
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6. 3: MARKET AUDIENCE
What market segment are we targeting?
What is our customer’s primary reason for buying or wanting to use our
product or services?
Why would someone prefer our offering versus that
offered by the competition?
4: OFFERING
What features and associated benefits does our offering provide?
Identify features and association benefits for each target audience?
What improvements can we make to our offering to better meet
customer needs?
5: SALES AND BUYING PROCESS
What is the process for selling our service or products?
Whatbuying criteria does our target audience use to select an offering?
6:PRICING
How important is price in the decision process?
Which of our competitors are considered the price leader? What does
the price leader charge for its offering?
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