Nov 2019 [THE LITTLE TEA SHOP]

The Little Tea

Shop
Business Plan

Subject Name: project report

Instructor: Dr.Tarika Singh

Students: Bhoopendra Singh Chauhan

MBA (int) 3nd

The Little Tea Shop

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The Little Tea Shop is a small tea shop which service gwalior snack food and MP tea in an
alley of a street in gwalior. The Little Tea Shop is a locally owned gwalior snack food and tea outlet
that will be positioned as a famous restaurant through our creative approach to the company's image
and detail presentation. The Little Tea Shop will provide a combination of excellent food and drink
at value pricing, with fun packaging and atmosphere. The Little Tea Shop is the answer to a nice
and good place of demand for snack-type fast food and tea. The Little Tea Shop is a place to dream
of as you try to escape the daily stresses of life and just a comfortable place to meet your friends,
chatting, or want to share your feeling to others, all in one. With the growing demand for high-
quality snack food, tea and great service, The Little Tea Shop will capitalize on its proximity to the
middle class including White-color labor, younger and student in gwalior first and other big city
after to build a core group of repeat customers. The Little Tea Shop will offer its customers the best
snack food and other drinks in the area, as well as music about gwalior that its patrons can heard to
enjoy their visit.

It’s a nice place for ones who come to talk with friends, family; or just to enjoy hours of quiet and
peace. And especially if you indulge in tea and gwalior snack food, The Little Tea Shop is really an
idea place with many famous kinds of tea such as: Pink tea, Dragon eye, Palace tea, Queen tea,
Honey tea, Jasmine tea, Pomelo tea, Chrysanthemum tea... all from high quality tea and some
gwalior snack food such as: “bánh gối”, “bánh rán” (salty and sweet), “nem chua” (fried and grill),
“bánh bao” (steam and fried)… Customer will be satisfied with its fresh air, antique style and
courteous service.

Besides The Little Tea Shop also has a kiosk of fast tea and food. It’s for ones who are busy and
don’t have much time. And you don’t have to wait too long for your order.

The company will operate a 50 m2 with 3 floor restaurant in Gwalior district. The shop is expected
to grow sales revenue from 1.2 lakhs VND in first year and growing to about 2.6 lakhs in the
second year and continuing to more than 7.5 lakhs in the year after that. As The Little Tea Shop
will strive to maintain a more than a half gross profit margin and reasonable operating
expenses, investing return on the shop to expand market share.

EXECUTIVE SUMMARY

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THE LITTLE TEA SHOP’S OBJECTIVE

 The Little Tea Shop wants to establish a large regular customer base, and will therefore
concentrate its business and marketing on local
residents, which will be the dominant target market.
 To establish a presence as a successful local snack
food and tea outlets and gain a market share in
Hanoi's food industry
 To expand into a number of outlets by year three,
and sell the franchise to neighboring metropolitan
cities, such as Gwalior, Bhopal, Indore
 The Little Tea Shop might become one of the best chain
snack food and tea shop in with highest quality and services.

MISSION
 Product mission: Provide customers finest quality drinks and food, make suit all customer,
down to smallest details.
 Community mission: Provide customers really relax and happy time beside friends and
family… also give customers knowledge of culinary culture.
 Economic mission: Operate and grow at a profitable rate.

KEYS TO SUCCESS
 Location: in center of culture and tourist, convenient accessing.
 Products: variety of quality drinks and food suit everyone, clean equipment.
 Servers: cheerful, skilled, professional, articulate.

GROWTH PROGRAM AND RISK ANALYSIS

 Expansion

With the mission to provide for customer a new way to drink tea and eat snack food, The Little Tea
Shop want to become one of the best snack food and tea restaurant chain in gwalior
After one to two years, The Little Tea Shop shop might expand its business with other shop in
.
After 7 years, The Little Tea Shop hope that we will become one of the most favorite restaurant
brand name in MP having more than 10 campuses in MP

 Risk analysis

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Because we open food and tea restaurant in GWALIOR, where is surrounded by many tea and
snack food kiosk. Thus, we must give many policies to competitive with other. However, with the
better management process and policies, we believe that we can gain the customers form market.

In this part we will focus on analyzing on macro elements that can affect to our business.

Firstly, The Little Tea Shop can be influence by the economic crisis in india. Because our segment
will be middle class including white color worker, younger, with the job related to office, so they
can be affected by crisis, declining their income, and they do not have enough financial to buy food
and drinks in our restaurant. In our perspective, economic system has business cycle rage from 1.5
to two years; it is easy for a recession period appear again. Because of that reason, the board of
manager always predicts what happen in the future and giving the best policy.

Secondly, it is the financial problem. The mission of The Little Tea Shop will be a chain of snack
food and tea restaurant in the 5 years; therefore, we must collect the financial from other sources,
financial intermediaries like banks, investor, and funds. As a result, if something happened to our
sources, the restaurant will not have enough money to increase business activities and open new
shops.

COMPANY SUMMARY

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THE LITTLE TEA SHOP SUMMARY

The Little Tea Shop, a small business, sells snack food and tea, other beverages, in 50 square metre
in Gwalior district. The Little Tea Shop’s major investors are who cumulatively over 80% share of
the shop. The start-up loss of shop is assumed in the amount of 14 LAKHS astimeted VND.

COMPANY OWNERSHIP

The Little Tea Shop is registered as business of household in MP and will be Limited Liability
Corporation after two years. rohit owns 33%, his friends, srishti and nandni hold approximately
22% each as well as sumit, aman account for nearly 10% in The Little Tea Shop.

START-UP SUMMARY

Start-up Requirements
Start-up Expenses
Kitchen and Fixtures 10,00,000
Furniture and Interior 15,00,000
Legal 3,00,000
Rent 6,00,000
Marketing expenses 10,00,000
Contingencies 5,00,000
Total Start-up Expense 49,00,000
Start-up Assets
Cash Required 35,00,000
Start-up Inventory 10,00,000
Other Current Assets -
Long-term Assets -
Total Assets 45,00,000
Total Requirement 94,00,000

Start – up expense is 10 lakhs which includes:

- Legal expenses for obtaining licenses: 3 lakhs
- Rent expense: 6 lakhs per months
- Decoration expense: 2.5 lakhs
- Marketing expense: 10 lakhs
- Contingencies fees: 5 lakhs
The required start – up assets:
- Operating capital in the total amount of 3.5 lakhs which includes employee’s and manager’s
salaries (wages in 2 first months).
- Start – up inventory 10 lakhs for the first month including: Tea, sugar, flour, tea filters, oil,
meat, vegetable, vinegar, beverages, etc: 7 lakhs
- Retail supplies (napkins, tea bags, cleaning, etc.) 1lakhs
- Office supplies: 2 lakhs

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Funding for the restaurant comes from two major sources – Owner’s investment and banks loans.
Three major owners, Dinh Quoc Bao, Nguyen Van Ha and Nguyen Minh Tuan have contributed 49
lakhs, 35 lakhs and 10 lakhs respectively. All others
contribute 13 lakhs, which brings the total investments to
94 lakhs million. The remaining 20 lakhs needed to
cover the start –up expenses and assets came from
bank loan: one-year loan in the amount of 20 lakhs.
Loan was secured through State Bank.

COMPANY LOCATION AND FACILITIES

The Little Tea Shop locations will range in size from 50

meter square and will seat from 15 – 25 guests each
floor. Our first location will be on the larger end of
this range. The location will feature its own originality in
merchandise display and other brand building
attributes. We will equip the outlet with modern
furniture and aim for cleanliness and an open feeling.
The space selection be chosen based upon the following criteria:
- Community size: minimum of 800,000 people within a
radius of 8 kilometers.
- Tourist destination.
- Easy access.
- Large percentage of teenagers in the community.
All of these qualities are consistent with The Little Tea Shops' goal of providing a top quality fast
food experience. We want "word-of-mouth" to be our best form of marketing, where our customers
value our brand as something exciting and cannot wait to tell their friends and neighbors.

PRODUCTS

The Little Tea Shop will offer its customer the best tasting tea and snack food in the area. This will
be achieved by using high – quality ingredients and strictly following preparation guidelines. The
store layout, menu listings and marketing activities will be focused on maximizing the sales of the
higher margin food and drinks.
 PRODUCT DESCRIPTION
- Pink tea
- Dragon eye
- Palace tea
- Queen tea
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- Honey tea
- Jasmine tea
- Pomelo tea
- Chrysanthemum tea
- “bánh gối”
- “bánh rán” (salty and sweet)
- “nem chua” (fried and grill)
- “bánh bao” (steam and fried)
- …

 COMPETITIVE COMPARISON

The Little Tea Shop has several advantages over its leading competitors:
- Unique "fusion" concept of dipping sauce.
- We expect a high degree of enthusiasm and offer a fun store with friendly staff, that reflects
the company's youthful and energetic culture.
- Supporting merchandise items that support the company's brand building.
- Food is made 100% fresh, compared to most food outlets that use frozen.
- Our dipping sauce is also made fresh without preservatives.
- Our innovative packaging will be more entertaining than our competitors; a single cone with
a cup reserved for dipping sauce.

 SALE LITERATURE

The Little Tea Shop will use advertising and sales programs to get the word out to customers.
- 2,000 color brochures to be distributed throughout destination shopping mall and facilities:
in-store, cinemas, area eateries, information during the grand opening in January 2012.
- Half page magazine reviews in m.p lifestyle magazines that advertise the presence of the
outlet.

 SOURCING

The Little Tea Shop has a legal contract with the best supplies. That will be warranted the quality
and quantity of goods which will be used to serve customers. We use the tea from a company in
delhi, which was exported in many countries in the world with the excellent quality. We also use
the foods, fruits which are provide by Metro Cash and Carry , and beverages as well. Thus, with
many big suppliers, the customer can believe that they will be served with the best product and

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services. That also ensure the stable for the shop, we will not pay more attention about the quality
and the stable of supply.

 SALE PROGRAMS

Each opening of The Little Tea Shop will have, more or less, the same marketing mix as the others.
Below are the programs that we will develop to open each location.
Grand Opening
Each new outlet will have outdoor signage as soon as possible. We want the signage to be
supported by banners before the opening.
Point of Purchase
We will sell gift certificates, announce future job openings, and possibly mention franchise
opportunities.
Direct Mail Piece
A stand-alone piece, folded, will be produced in full color on heavy weight paper. Inside will be all
the important details of The Little Tea Shop, explanation of our menu, prices, house of operation
and a locator map.

MARKET ANALYSIS SUMMARY

MARKET SEGMENTS
With our products and services, we will focus our marketing activities on reaching people in middle
class or who working in offices located close to the restaurant and on busy man who have not
enough time to go out and have a meal by delivery. Our market research shows that these are the
customer groups that are most likely to buy restaurant products which can be easily take on the
way. We will cater to people who want to get their daily cup of great-tasting tea in a relaxing
atmosphere. It shows that these are discerning customers that gravitate towards better tasting tea
and food. Furthermore, a lot of officer considers tea shop to be a convenient meeting location,

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where they can have conversation or meet with peers and partners without the necessity to pay
cover charges. For us, this will provide a unique possibility for building a loyal client base.

General trend toward quality among Gwalior consumers definitely plays an important role in the
recent growth in gourmet food and tea. Additionally, such factors as desire for small indulgencies,
for something more exotic and unique, provide a good selling opportunity for restaurant.

Sales
Young
Officer
Tourist
Other

TARGET MARKET SEGMENT STRATEGY

The Little Tea Shop intends to cater to the bulk of teenagers and youngsters in Gwalior. We have
chosen this group for several important reasons. It is our goal to be "the extraordinary snack food
place" and we believe that the age group from 15 to 25 is the primary age where brand building
efforts could take place. They are on limited or fixed incomes and seek a value/price relationship
that will not stretch their budgets.

Our secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user
group. They are more flexible in budgets and seek more than a value/price relationship.

MARKET NEEDS

General trend toward quality among MP consumers definitely plays an important role in the recent
growth in gourmet tea and snack food. Additionally, such factors as desire for small indulgencies,
for something more exotic and unique, provide a good selling opportunity for restaurant.
A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our
target markets. Our core group:
- Wants variety and flavor in its food, preferably something fried
- Looks for speed of service
- Wants an entertaining and fun experience

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- Insists upon a clean, friendly, and attractive environment

- Adopts a global lifestyle
- Is computer literate
- Enjoys eating out
- Has an active lifestyle
- Comes from various ethnic backgrounds

INDUSTRY ANALYSIS

In the World, gwalior tend to be one of the biggest exporter

tea and which the special taste of gwalior’s tea, we are going
to account for a high segment in the market’s tea share. In
MP, tea is the most popular of drinks of consumers and this
tendency continues to develop more significantly. Hot drinks in gwalior saw strong growth in total
volume terms in 2009. Of all the hot drinks products, tea continues to be the most popular in
gwalior in terms of total volume sales. Tea is a traditional drink among northern residents in
gwalior. Other hot drinks enjoy the strongest total volume growth in 2009 due to increasingly
health conscious consumers in mp. According to some survey, there are 37 percent of adults in the
age from 18 to 24 drink tea, up from 31 percent the prior
year. In the future tea continues grow with high speed in tea
market. gwalior tea consumption has shown steady growth,
with gourmet tea and snack food having the strongest growth.
Tea drinkers in the MP are among the most demanding ones.
They favor well-brewed gourmet tea drinks and demand great
service. We will strive to build a loyal customer base by
offering a great tasting tea in a relaxing environment of its
restaurant.

COMPETITON

We direct competitors will be other tea shop located in MP. These include "Tanduri" tea shop and
other tea shop. "Taste of dargling" will definitely be one of the major competitors because of its
strong financial position and established marketing and operational practices. However, despite of "
entrenched market position, many customers favor smaller, independent establishments that offer
cozy atmosphere and good tea at affordable prices. We estimate that " approximately fifty-five
percent market share in that neighborhood with the remaining market share split among other

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establishments. Let know more about them: " is all about great tea. Whether that's in their tea shops
throughout gwalior, a pack you've bought at the supermarket or a cup you've had in a leading hotel
or restaurant. They strive to serve the perfect cup, every cup. Their difference is a lifestyle brand
they believe in serving people rich experiences, based around tea. Those rich experiences come
from doing everything really well. As a proudly consumer brand, the philosophy is about
combining the best of the fast paced international world with the traditional charm and traditions of
mp.

How I plan to take advantages of competitor weak points?

We can serve snack food include tea for customers who not have enough time to enjoy in our shop.
More than that, we are sure that the price of our products will always lower than other with high
quality and best service. Beside that we will offer its customers the best prepared tea in the area that
will be complimented with snack food, as well as free books that its patrons can read to enjoy their
visit. We will make its best effort to create a unique place where customers can socialize with each
other in a comfortable and relaxing environment while enjoying the best brewed tea and snack food
in town. We will be in the business of helping our customers to relieve their daily stresses by
providing piece of mind through great ambience, convenient location, friendly customer service,
and products of consistently high quality.

Our marketing strategy will be focused at getting new customers, retaining the existing customers,
getting customers to spend more and come back more often. Establishing a loyal customer base is
of a paramount importance since such customer core will not only generate most of the sales but
also will provide favorable referrals.

We will cater to customers' bodies and minds, which will help us grow our market share in this
competitive market.

STRATEGY SUMMARY

COMPETITIVE EDGE

- Store design that will connect nature with customers, and designed for fast and efficient
operations.
- Employee training to insure the best tea preparation techniques.

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- Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing
the sales of products.
- Same price with competitor but higher quality.
- Profession services.
- Friendly space
- Many different and special way to make a fantastic taste for the foot and drink
- Fresh food daily
We will position itself as unique tea shop where its patrons can not only enjoy a cup of perfectly
brewed tea but also spend their time in an ambient environment. Comfortable sofas and chairs,
dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and
will differentiate our bar from incumbent competitors. The major reason for the customers to return
to a specific tea shop is a great tasting tea and food, quick service and pleasant atmosphere.
Although, as stated before, tea consumption is uniform across different income segments, we will
price its product offerings competitively. We strongly believe that selling tea with a great service in
a nice setting will help us build a strong base of loyal clientele.

We will handle the sales transactions. To speed up the customer service, at least two employees will
be servicing clients while one employee will be preparing the customer's order, the other one will
be taking care of the sales transaction. All sales data logged on the computerized point-of-sale
terminal will be later analyzed for marketing purposes.

In order to build up its client base, we will use banners and fliers; utilize customer referrals and
cross-promotions with other businesses in the
community. At the same time, customer
retention programs will be used to make sure
the customers are coming back and spending
more at the tea shop

MARKETING STRATEGY

We will have professional marketing

strategy to account for the customer share in
the market. In our marketing, we will focus on
three marketing campaigns together.

I. Online Marketing
II. Viral Marketing
III. Traditional Marketing

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 Online Marketing
- Websites and Forum

We will create and support for our websites and forum, ensuring that they often provide useful
information for our customers. The content of web covers the information of tea, the tea market,
specially tea and food, steps to have a cup of excellent food and tea. That also will be a channel for
everyone to update news about daily life: work and entertainments… And specially, our websites
can communicate with customer as social networks. In that, other people can update their view,
events in your daily life. It’s is called “My tea diary” function.

- http://littleteashop.com.vn
- http://littleteashop.com.vn/forum

Moreover, marketing department attacks on social network as a channel to promotion The Little
Tea Shop. Which are Facebook, Yahoo Plus!, Twittler!, Year1! Youtube! …. We want to create
communications customers of our shop on the internet.

 Viral marketing

Another marketing campaign that will be used is the viral marketing and viral advertising. At the
previous part, we has said about a communication of the Tea shop, so with the viral marketing our
manager apply marketing techniques that use shop’s pre-existing social networks customer on the
internet to produce increases in brand awareness or to achieve other marketing objectives through
self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can
be word-of-mouth delivered or enhanced by the network effects of the Internet. With this campaign
maketers may take the form of video clips, interactive Flash games,
advergames, eBooks, brandable software, images to update to shop’s
websites, blog, forum and even text messenger though email.


 Traditional marketing

We continue advertise on other channel to increase our share in the

market. Those are newspaper and magazines. That marketing campaign
cannot gain success without promotion strategy. With promotion strategy, promotion girl team in
buildings in the city, creating events for clubs in MP Fan club

1. Discount and presents to customers on special days (Valentine’s Day, Women’s Day,
Birthday)

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2. Loyalty Customer Card

3. Golden hour discount
4. Dish of the Day
5. Free delivery
With the Loyalty Customer Card, the customer will be serve with higher value, and they will
received discount daily with 5% for each bills and 50% for his or her birthday.

Moreover, we also bring for customer better services by having golden hour discount. Because
the mission of Little Tea shop is the best product for all customers, so the cakes and food will be
only used in just one day. In the end of the day, although the quality of cakes and food still are very
good, but we will not buy in tomorrow, so they will be sales off from 15 – 17 o’clock and after
21o’clock. This action will release the inventory in one day.

Dish of the Day- Although Little Tea Shop has many dishes, cakes … But each day, we will serve
customer with one special dish, it will be making better, selling with lower price any easy to take
away. With one dish for one day, one moths we serve 30 dish each day, the customer Little Tea
shop focusing is students, pupils, they are the potential customer in the future for Little Tea shop.

MANAGEMENT SUMMARY

Customer Relationship Management

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In order to having winning marketing strategy, Little Tea Shop has a Customer relationship
management system (CRMs) and Information System to support for CRMs. With CRMs, manager
can manage the information of customer, we will collect the information about email, telephone,
age, sex, birthday, hobby … Using that system, Director can interact with customer, serve more
additional value. We can present my love with loyal customer by sending a postcard for those in
their birthday. Besides, we can also plan events which base on the hobby of customers … Our
CRMs will be provided by corporation having reputation in the market.

Management

Little Tea Shop is majority- owned by board of management, who are studying Business
Administration from State University. Priyanka is worked for several years as a sales manager.
Nguyen has many experiences in running a restaurant, previously, she opened and manage a small
restaurant with high profit in several years. Nguyen has work for two years as an independent
consultant, after that, she has done a job for her
family corporation. Tushar is working for his
corporation as a manager and he has experience in
tourist and hotel area. Tushar, for the last three years
he has worked as a manager of restaurant, a
successful restaurant in Gwalior district. Under the
management of Priyanka, the restaurant has
consistently increased sales while maintaining a lower than average level of operating expense.

However, because of investor’s other commitments they will not be involved into daily
management decisions at Little Tea Shop. Thus, a professional manager will be hired who will
oversee all the tea operating. One full time baristas will be in charge on tea preparation and one
chef as well. Five peoples will be hired to fulfill the staffing needs. In the second and third when
the shop begins to open more spaces, more employee will be hired to handle the increased sales
volume.

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Management Director

A full-time manager will be hired to oversee the daily operations at Little Tea Shop. The candidate
has had at least one year in managerial in management. This management director’s responsibilities
will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing
strategy and perform other daily managerial duties. We believe that our candidate has the right
experience for this role. A profit-sharing arrangement for the manager may be considered based on
the first-year operational results.

 Management Consultant

Despite the owner’s and management’s experience in the restaurant and tea industry, the Little Tea
Shop will retain the consulting services from a company in this field. The consultants will help
developing the business idea, business development and handle problem. Consultants will be
primarily used for market research, customer satisfaction survey and to provide additional input the
evaluation of the business opportunities.

 Management System After 3 years

After 3 years, with about 4 shops, we divided management system into local management
departments.

conclusion
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Little Tea Shop will be provided fulfill financial start up in the first year with an small ad from
Bank. In the year after that, the board of manger hopes that it will increase significantly in revenues
and opening other shop in places in Vietnam. At that time, the owner would continue to invest more
money in the Shop, and making more loans on others banks to capture the developing of the shop.
After 3 years, Little Tea Shop will be registered as a corporation with stronger financial power. The
following tables show the financial situation from the first year when shop was opened to the third
year.

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