Understanding Consumer Requirements for Hygienic Chai in Offices

Understanding consumer requirement of hygienic chai during office time
UNDERSTANDING CONSUMER REQUIREMENT OF HYGIENIC CHAI
DURING OFFICE TIME (CHAI POINT)
A Project Report Submitted to
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, ANANTAPURAM
In Partial Fulfilment of the Requirements
For the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
BY
N.V.YAGNATHEJA
(Reg.No 18691E00K4)
Under the Guidance of
Dr. D.PRADEEP KUMAR, MBA, Ph.D.
Professor
MITS SCHOOL OF BUSINESS
MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE (MITS)
(UGC - AUTONOMOUS)
(Affiliated to Jawaharlal Nehru Technological University, Anantapuram)
MADANAPALLE – 517325
CHITTOOR DISTRICT, A.P.
2018 - 2020
MITS School of Business Page i

MITS School of Business
CERTIFICATE
Certificate that the project report entitled “UNDERSTANDING CONSUMER

REQUIREMENT OF HYGIENIC CHAI DURING OFFICE TIME (CHAI POINT)”,
submitted by N.V.YAGNATHEJA (Reg.no 18691E00K4) for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION of Jawaharlal Nehru Technological
University, Anantapuram, is a record of independent project work undertaken by him under
my supervision and guidance and the project has not been submitted either in par or whole for
the award of any other any degree or Diploma of any university.
Dr. D.PRADEEP KUMAR, MBA, Ph.D. Dr. K.T. VIGNESWARA RAO, FPM.,
Project Guide Associate Professor & Head
INTERNAL EXAMINAR EXTERNAL EXAMINAR
MITS School of Business Page ii

DECLARATION
I do hereby declare that the dissertation title “UNDERSTANDING CONSUMER

REQUIREMENT OF HYGIENIC CHAI DURING OFFICE TIME (CHAI POINT)”,
under the Guidance of Dr. D.PRADEEP KUMAR, MBA, Ph.D., Professor, MITS School
of Business, MADANAPALLE INSTITUTE OF TECHNOLOGY AND SCIENCE,
Madanapalle for the award of degree of MASTER OF BUSINESS ADMINISTRATION it
is a record of my knowledge and original work done by me and that the project has not
previously formed the basis for the award of any Degree.
DATE: N.V.YAGNATHEJA
PLACE: MADANAPALLE (ROLL.NO:18691E00K4)
MITS School of Business Page iii

ACKNOWLEDGEMENT
I would like to thank to all persons who have contributed towards the successful completion
of the project work, I am glad to say working on this project has been both illuminating and
enjoyed for me.
I have deep sense of gratitude to of Dr. D.PRADEEP KUMAR, MBA, Ph.D.,

Professor, Project Guide, MITS School of Business, for his encouragement, guidance, and
valuable suggestions throughout the project.
I take this opportunity to thank Sri. N. KRISHNA KUMAR, Chairman – MITS,

Dr. N. VIJAYA BHASKAR CHOUDARY, Ph.D., Secretary & Correspondent, MITS,
Dr. C. YUVARAJ, Principal, MITS and Dr. K. T. VIGNESWARA RAO, FPM,
Associate Professor& Head, MITS School of Business, for their continuous support and
encouragement.
My heartfelt Thanks to my parents & Friends for going out of their way to see that I
successfully implementing and completing this project. Their words of wisdom and patience
were much more than a blessing.
I would like to thank all the faculty members of MITS School of Business, MITS and friends
who directly and indirectly helped me to complete this project.
N.V.YAGNATHEJA
( Roll. No: 18691E00K4)
MITS School of Business Page iv

LIST OF CONTENTS
S No Title Page No
CHAPTER -I: Introduction 1-10
1 1.1 Executive synopsis 2-3
2 1.2 Introduction 4-10
CHAPTER -II: Industry Profile 11-30
3 2.1 Indian retail industry 12-13
4 2.2 Tea market overview 13-13
2.3 INDIAN TEA SCENARIO 13-15
2.4 GLOBAL TEA SCENARIO 15-18
5 2.5 Company Profile 19-30
2.6 About Chai point 20-29
2.7 SWOT Analysis 29-30
CHAPTER -III: Research Methodology 31-36
6 3.1 Literature Review 32-33
7 3.2 Need for the study 34-34
8 3.3 Statement of the problem 34-34
9 3.4 Objectives of the study 34-34
10 3.5 Hypothesis 34-34
11 3.6 Data collection and Sample design 35-35
12 3.7 Conceptual Framework 36-36
13 3.8 Limitations of the study 36-36
14 CHAPTER -IV: Data Analysis & Interpretation 37-64
CHAPTER -V: Findings, Suggestions & 65-69
Conclusions
15 5.1 Findings 66-67
16 5.2 Suggestions 68-68
17 5.3 Conclusions 68-69
18 References 69-71
19 Questionnaire 71-74
20 Chai point photos 75-77
MITS School of Business Page v

LIST OF TABLES
S No Title Page No
1 Reliability Analysis & Statistics 38-38
2 Frequency Tables for Descriptive Statistics 38-57
3 Regression Analysis 55-57
4 Correlations 57-59
5 KMO and Bartlett’s Test 59-59
6 Communalities 60-61
7 Factor loading 63-64
MITS School of Business Page vi

CHAPTER-1
INTRODUCTION
MITS School of Business Page 1

1.1 EXECUTIVE SYNOPSIS:
The purpose of this study is to evaluate the roles of customer satisfaction, opinion and
affective commitment as they mediate the effect of service, quality on customer experience at
chai point. Based on the analysis of data collected from 209 customers of this chai point. This
research investigates that how service, quality and satisfaction are impacting the sales of a
retail outlet in chai point. To know which factors has influenced the most in the sales and to
know which factor has loaded more. The factors we took in the study are service, quality,
customer satisfaction, opinion and experience. The techniques used were descriptive
statistics, regression analysis, correlations, reliability analysis, and factor analysis. We found
from the study service, quality is positively impact on customer experience.
Chai Point’s whole experience has been a mix of both training and project based as it
includes two aspects first one is for marketing and sales and second one is survey on
customers and target places which yet to be reached. Marketing and sales has been a field
experience where I was supposed to get new clients by targeting audience mainly from start-
ups and corporate hubs.
Focus of this project was to ensure the awareness as well as to gain some increase in
sales regards to the subscription plan. This plan was monthly plan where the customer can set
his frequency for tea flask with specific flavours of his choice. This plan is served by prepaid
card where the customer has to do a prior recharge that is prepaid recharge and use the
facility until the balance exhausted. Customer across the market were used to post-paid plan
so getting sales figure was a challenging task but with the use of Chai points image as a pure
and hygienic tea I was successful in positing the concept of branded authentic brewed tea in
the market.
Second important part of this project was customer survey for their experience about
Chai point and data mining for potential places such as railways, bus stops that are yet to be
covered. Customer survey for their overall experience is based on primary data collected
throughout the internship where only one city Bangalore. Survey is based on a direct
interview and questionnaire, which was done by interacting with customer face to face during
sales pitching. Even surrey was done for the demand of the coffee in Chai Point store. Apart
from the project, I was also a part of organizing team, which was handling the event
organisation at “THOMSON REUTERS”. Chai point also gave me hands on experience with

research and development where new products were developed and training for Chai point’s
staff was done. I helped the delivery boy in mapping process and bike rally.
Chai Point has provided a blend of skills and competencies, which are essential for a
marketer. As an intern the learning outcome at chai point have been emphasized on the
research actualisation and sales amplification. Chai Point is a budding Start-up and the
growth of the organisation is exemplified example of successful business. As a member of
Chai Point, It gives me pride and honour to carry forward the legacy and visions of Chai
Point to a higher level
Chai Point's primary competitors are Chaayos, Chaipatty Teafe, and Udyan
Tea. Its secondary competitors are local ubiquitous tea stalls across every street in
India which offers tea at relatively lower price than the primary competitors. The
competition of Chai Point has been heating up as coffee is taking a strong hold among
the younger audience and corporate employees. Entry of Global chain retailers like
Barista, The Coffee Bean, Starbucks etc. has attracted regular coffee goers, celebrities
and business people to visit coffee shops. In companies which have space constraints,
corporate employees use cafés as their meeting place. Chai Point has huge opportunity
to tap into the massive tea market and increase their presence all over India. However,
it is highly likely that it will face threats from the leading coffee retailers and existing
other tea competitors in the market.
Chai Point appears to be trying to differentiate itself with various features. Chai
Point has a Green Initiative: Chai Point joined the Green revolution by using electric
scooters for its chai delivery, partnering with Ampere vehicle Pvt. limited and Hero
Electric. The delivery fleet has approximately 60 scooters and this is called the Green-
T- Brigade, brought into effective action in Bangalore and likely to be deployed in
Chennai and Mumbai in the near future.
.
Key words: service, quality, satisfaction, opinion, consumers

1.2Introduction:
Tea is not simply tea in India but it is like a staple beverage here and a day without it is
impossible and incomplete. Indians prefer their steaming cup of tea because for them it acts
as an energy booster and is simply indispensable. This popular beverage has many health
benefits too as its antioxidants help to eliminate toxins and free radicals from the blood.
Originally, tea is indigenous to the Eastern and Northern parts of India, but the tea industry
has expanded and grown tremendously over the years, making India the largest grower and
producer of tea in the world. The tea production in India was 979,000 tonnes as of 2009. In
terms of consumption, export and production of tea, India is the world leader. It accounts for
31% of the global production of tea. India has retained its leadership over the tea industry for
the last 150 years. The total turnover of this industry is roughly Rs.10, 000 cores. Since 1947,
the tea production in India has increased by 250% and the land are used for production has
increased by 40%. Even the export sector of India has experienced an increase in the export
of this commodity. The total net foreign exchange in India is roughly Rs.1847 cores per
annum. The tea industry in India is labour intensive, meaning it depends heavily on human
labour instead of machines. This industry provides employment to more than 1.1 million
Indian workers and almost half the workforce constitutes of women. There is a wide variety
of tea offered by India; from Green Tea to CTC tea to the aromatic Darjeeling tea and the
strong Assamese tea, the range of tea available in India is unparalleled. Indians take a lot of
pride in their tea industry because of the pre-eminence of the industry as a significant earner
of foreign exchange and a significant contributor to India’s GNP. The three prominent tea-
growing regions in India are Darjeeling, Assam and Nilgiri. While Darjeeling and Assam are
located in the Northeast regions, Nilgiri is a part of the southern region of the country. A visit
to these regions made truly memorable by the endless rolling carpets of green, which are the
tea gardens, and one cannot but help feeling enthralled and captivated at the sight of the huge
tea estates. Majority of the tea factories are located within the premises of the tea estates and
this is what accounts for the freshness of the tea. The process of tea production has a series of
procedures and processes. The process starts with the plucking of tealeaves in the tea estates
by women employees carrying a basket over the head and ends with the production of the
ultimate tea. There are mainly two ways of producing tea in India namely the CTC
production and Orthodox production. CTC is an acronym for crush, tear and curl. The tea
produced by this method mostly used in tea bags. The orthodox production method consists
of five stages, namely withering, rolling, fermentation, drying and finally storing. It is not

possible to compare the two varieties because their quality depends on factors such as
rainfall, soil, wind and the method of plucking of tealeaves and both possess a unique charm
of their own.
Theoretical Concept on customer requirement:
Visitor administration
Visitor administration enterprises, for example, inns and cafés burn through a great
many dollars on troubled visitors every year without an assurance that this spending will
guarantee visitors are completely fulfilled. Sites, for example, Yelp, Trip Advisor, and Urban
spoon were created so individuals can share both their great and awful encounters with other
potential visitors. Studies of visitor fulfillment evaluations have been read and dissected for a
long time. It takes note of that lodging fulfillment reviews "are a pointer of what the visitors'
impression of the inn are alongside the administrations they get… The innate worth seen in
these overviews is straightforwardly identified with how the inn's administration reacted to
the fulfillment appraisals." But how accomplish foundations work to fuse these discoveries
into improving their business? Inside the cordiality business, and especially inside the setting
of value administration, it is significant for foundations to survey themselves and survey the
accomplishments of contenders all the time.
The cordiality business is special in the way that it sells an immaterial item as well as
administration. The client follows through on a particular cost for a jug of wine or an
overhauled lodging, at the end of the day what transforms a client into a visitor is the
experience they have while at a foundation and at last their longing to return. Recollections,
pictures in photograph collections, anecdotes about delectable food: these are what the
accommodation business prides itself in selling. Along these lines, all collaboration with the
visitor and any worker ought to be an advancing experience for the visitor and leave them
feeling acknowledged and invited. The flip side to selling an improving encounter is that if
something turns out badly, the visitor leaves unsatisfied.
The eatery business is the biggest bit of all the friendliness ventures. A lodging sells
rooms, however they can just book one gathering of visitors for every room every night. A
eatery sells suppers, however they can sell numerous dinners per gathering of visitors per
table and additionally host numerous gatherings of visitors sit at a particular table for each
night. Eateries serve a lot bigger volume of visitors; accordingly there are a lot more

connections and the plausibility of a negative encounter is expanded. At the point when these
negative visitor associations happen, the line level worker is accused of settling them. Line
level representatives are those that are the primary line of contact with a visitor, in the café
business these representatives are the wait staff, have/maître d', and table attendant. Line level
workers need to ensure that the visitor is totally happy with the administrations got so as to
secure the most ideal tips from the gathering. It is usually acknowledged that 15% tip is the
standard for tipping a server, at the end of the day leaving tip is discretionary. On the off
chance that the visitor is not fulfilled, they can show the server by essentially not leaving a
tip. It probably won't be the most attractive framework, since the base tipped compensation is
under $3 60 minutes; however it serves as a decent inspirational instrument for the servers to
guarantee the most ideal experience for the visitor.
Indeed, even with the server attempting to guarantee the most ideal feasting
experience for their visitors, there are numerous circumstances outside of their control for
which the server is as yet held responsible. The line level representative has next to no
influence over outer factors, for example, commotion level in the café, how brilliant the
lighting is, accessible stopping outside, however they still need to make up for the variables
that are upsetting the visitor's visit. Different elements that would affect the administration a
visitor gets incorporate hang tight time for a table, what number of tables the server is doled
out, how bustling the kitchen is, different servers going on break or lunch, the first server
getting a move on, assortment of food advertised, and so on. At last, however, it doesn't make
a difference what variables influence the visitor's visit at a feasting foundation as it is as yet
the obligation of the server to fulfill their requirements and make them need to return.
Atmosphere for administration alludes to worker view of the practices, methods, also,
practices that get compensated, upheld, and expected concerning client care what's more,
client care quality. For instance, to the degree those representatives see that they are
remunerated for conveying quality assistance; their association's administration atmosphere
will be more grounded. Also, observations that client support is critical to the board will
likewise add to a solid help atmosphere. A solid administration atmosphere is important for
any effective eating foundation. Not exclusively should the workers be constant with keeping
their own visitors glad, they additionally ought to be accessible to help with whatever other
needs that may emerge for their colleagues. To set up a help atmosphere, one should initially
build up the major help. An atmosphere for administration lays on a establishment of basic
help in the method of assets, preparing, administrative rehearses, and the help required to

perform adequately. As a strategy for portraying how specialist co-ops and visitors react to
the administration process, Hogan, Hogan, and Busch utilized the term administration
direction that first begun during the 1980s. They depicted assistance direction as "a lot of
perspectives and practices that influences the staff of any association and its visitors”. As per
Susskind et al., "In this examination, we explicitly limit our examinations to look at the
authoritative level connection between clients' reports of fulfillment with their administration
encounters and specialist organizations' impression of their administration related obligations,
interfacing client care workers' impression of administration experiences to clients'
assessments of administration encounters inside the equivalent association." I intend to
concentrate my exploration on the visitor administration involvement with eateries, by taking
a gander at factors from both the point of view of the line level worker and the visitor.
Toward the finish of my investigation, I might want to know how different factors in the
visitor administration experience influence the visitor fulfillment level and their aims to come
back to the foundation.
Administrative Support
On account of the serious market that the cordiality business is presently confronting,
numerous organizations are hoping to separate themselves from the opposition to guarantee
client unwaveringness. Numerous associations in the administration segment are searching
for approaches to improve visitor fulfillment with both unmistakable and immaterial items. In
their article composed for Personnel Psychology, Mark Schmidt et al. discovered that there
was a connection between the worker impression of administration quality and the visitor's
fulfillment level with the administration they got. They expressed that workers who report a
more significant level of fulfillment additionally accept that they convey fantastic support of
their visitors.
Susskind et al. built up the proposed Guest-Server Exchange (GSX) model to better
delineate the immediate connection between the impression of administration from the
worker's perspective and the client's degree of fulfillment with the administration they gotten.
They make the case "When specialist organizations are focused on their job in the
administration process, they are bound to reliably offer their visitors better assistance.
(2007)" According to the GSX model, there are four principle components that factor into
consumer loyalty: gauges for administration conveyance, associate help, administrative
backing and client direction. Every one of these elements is a predecessor of the following

one what's more; they all must expand on each other to make the most ideal result for client
fulfillment. The principal factor is Standards for Service Delivery. Sichtmann et al. directed
their inquire about on German trading firms to feature how significant quality control and
norms for administration are to giving their business a serious edge. They concentrated on the
job of value control activities in their examination, as it applied both to the item sold as well
as any association the client may have with the representatives or the board. The quality
control activities were intended to go about as a "particular, specialist co-op started orders
planned for impacting the two representatives and clients to perform administration
conveyance in manners that decidedly influence the nature of the administration result." They
finished up their investigation by saying that the quality control activities bought to be
comprehended by all representatives and that they ought to see how to utilize these principles
in their everyday associations with visitors. These principles are significant for completing an
organization's strategic laying out the obligations and desires for both the staff and the board.
In the cordiality business, line-level representatives regularly have substantially more
immediate contact with visitors than the executive’s staff. These norms give an establishment
to guarantee that the line-level representatives convey quality client assistance to every
visitor. As indicated by Litwin and Stringer authoritative measures for administration can be
characterized as the key impact on people's conduct in associations and characterized
guidelines as comprising of authoritative individuals' impression of
(a) Hierarchical objectives and targets,
(b) Administrative desires for work execution, and
(c) The understood significance put on those objectives, targets, and execution requests.
The subsequent standard is Coworker Support. Susskind et al. characterized colleague

support as the degree to which representatives accept their associates are willing to give them
business related help to help in the execution of their administration based obligations. In
many occurrences, colleagues' apparent help is imperative to the achievement of business
related undertakings yet impacts something beyond substantial issues, for example, spirit. All
together to have solid collaborator support inside a café, there must be unmistakably
characterized Guidelines for Service Delivery. These norms characterize the assignments that
must be achieved, permitting associates to comprehend when to help each other with an
undertaking. The Journal of Applied Psychology distributed an article by Eisen berger et al.
that overviewed line level workers from a wide range of regions of business to decide how

solid of an impact apparent association support has on the work condition. They needed to
check whether the social trade hypothesis and the possibility of correspondence assumed a
solid job in the everyday daily schedule of the workplace. The social trade hypothesis
clarifies "the commencement, fortifying, and preceded with upkeep of relational connections,
gives a potential theoretical premise to comprehension connections among people and their
association", and the perfect of correspondence maintains the idea that doing decent things
for other people will have an arrival of them doing pleasant things consequently. Their study
was intended to ask what amount apparent control an association has over specific factors and
how good these elements were to the laborer.
The discoveries demonstrated that preparation conditions are a factor that the entirety
of the organizations had authority over while the connection between collaborators was
appeared to have practically nothing control. Along these lines, the organizations need to
impart a standard of cooperation and colleague support into their preparation to help
supplement the requirement for colleague support.
Supervisory Support
Supervisory Support and administrative Support is characterized as people's

convictions that managers offer them business related help to help in the execution of their
activity. In the guessed GSX model they suggested that guidelines go about as a brief for help
from both collaborators and directors to help guarantee the conveyance of administration
related conduct to clients. Susskind, Kacmar, and Brochgrevink contend that measures inspire
specialist co-ops to perform steady practices in the execution of their obligations.
Administrative help is considerably less active than colleague support. The obligation of the
administrative staff when identified with the Guest-Server Exchange is to guarantee that the
measures for administration conveyance are being maintained.
Wayne et al. distributed an article in the Academy of Management Journal that took a
gander at the apparent hierarchical help and how it identified with the leader member trade.
"Seen hierarchical help alludes to the trades between colleagues, and pioneer part trade
alludes to the trades between a laborer and their pioneer/administrator." While the two appear
to be comparable ideas, they influence the workplace in incomprehensibly various manners.
Pioneer part trade is significant for keeping the laborers on errand and sticking to the gauges
that the organization has set up. The pioneer part trade has likewise been appeared to have an
incredible impact over the apparent authoritative help. The pioneer ought to guarantee that his

subordinates are filling in as a group to satisfy the statement of purpose of the organization.
By guaranteeing that the subordinates are filling in as a group, the pioneer causes apparent
hierarchical backing to increment boosting resolve around the work place. In the café
business the laborers need to rely upon one another and on their chief to guarantee that the
visitor is accepting the most ideal experience. The servers rely upon the host to situate the
visitors in an appropriate way, they rely upon one another to help convey food or meet any
incidental need that the visitor tells an alternate server, and everybody relies upon the waiting
assistants to clear and clean the tables in a convenient way so another gathering of visitors
can be situated as fast as could reasonably be expected. Administrative help centers more on
ensuring that the entirety of the line level workers are carrying out their responsibility to the
best of their capacities just as helping other colleagues any place it is required. The bosses are
likewise liable for ensuring that the workplace is ok for all laborers, that the entirety of the
laborers are exceptionally prepared and educated regarding their obligations, and for taking
care of any issue a visitor may have that the server can't unravel themselves. Administrative
help can be hands on cooperation with visitors in the front of the house, the general eating
region, or ensuring that activities are going easily in the rear of the house, the kitchen, office
territories, stockpiling storage rooms, essentially anyplace visitors are most certainly not
permitted. Colleague support and administrative help work inseparably to guarantee that the
eatery runs easily and can meet and surpass the visitor's desires.

CHAPTER – 2
INDUSTRY PROFILE
2.1 The Indian Retail Industry:

Introduction:
The Indian Tea industry has been growing ever since 200 years long. It was Robert
Bruce, a British national who first discovered tea plants budding at the upper most
Brahmaputra valley in Assam and in the neighbouring areas. For a better public sale, tea
grown in India particularly Assam was sent to UK in the year 1838. The major producers of
Tea in India are Assam, West Bengal, Tamil Nadu and Kerala. Apart from this, tea
production and processes of plantation also happens in Karnataka, HP, Tripura, Uttaranchal,
Arunachal Pradesh, Manipur, Sikkim and Meghalaya. India seems to have a dual tea base,
unlike most of the other countries that exercise export. Both revenue-generating entities, like,
CTC and Orthodox tea produced in India. The Indian tea industry is both agro –based and
labour intensive. It provides employment opportunity to around 1 million persons. Through
its forward and backward linkages, it found that another 10 million people derive their
earning from tea. This growing industry employs to around 900,000 people on permanents
basis from the parts of North East India alone. In addition, is accounted as the best industry
that demonstrates to provide employment opportunity to females as well. Women constitute
nearly of about 51% of the total workforce of the tea industry catering business. The tea
estates of the North Eastern part of India are primarily located in industrially backward areas.
Teas being the only organized industry in the private sector, serving to better market share in
the economy emphasize to extract large number of workforce with high expectations in
return. The three most distinct known varieties of tea in India are:
a) Assam tea (grown in Assam and other parts of NE India)
b) Darjeeling tea (grown in Darjeeling and other parts of West Bengal)
c) Nilgiri tea (grown in the Nilgiri hills of Tamil Nadu)
Size of the Industry:

Today Indian Tea Industry is having 1692 registered tea manufacturers, 2200
registered tea exporters 5548 number of registered tea buyers and nine tea auction centers
Geographical distribution:
Assam, West Bengal, Tamilnadu , Kerala Karnataka, Tripura, Himachal Pradesh,
Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram and
Bihar
Percentage in World Market:

India is an important tea exporter, accounting for around 12-13% of world tea exports.
Market Capitalization:
Indian Tea Industry is one of the largest in the world with over 13,000 gardens, and a
total workforce of over two million people
2.2Tea market overview

The Tea industry accounts to gain its implication and importance due to foreign
exchange, which helps in providing and maximizing employment generation of the country,
since this industry is majorly labour intensive. India contributing to 30 % of the global tea
production ranked second in terms of largest producers in the world. It is therefore estimated
that the market size of tea industry is catered to be approx. around 10,000 crore with 90% of
the diffusion from the domestic market. China being the first largest exporter of tea in the
world, India marks its position to second by earning from exporting of about 210 million kgs
of tea globally. The tea sector in the country largely structured since 72% of the total area
under tea cultivation and other 74% of the total production comes from the organized sector.
Tea in India is grown and therefore covers an area of 600000 hectare (ha) which accounts for
about 16% of the total area under tea cultivation in the world. There spread around thousands
of tea gardens across various states of India. There are about 85000 tea estates in West
Bengal and Assam and about 5,500 in the southern states of Kerala, Karnataka and Tamil
Nadu. In West Bengal and Assam there are around 8,500 tea estates, while in the southern
states of Kerala, Karnataka and Tamil Nadu. According to ASSOCHAM, it found that Assam
produces over half of India’s tea and therefore accounts for over 12% of the annual global tea
yield.
2.3Indian tea scenario

It was in 1839, that cultivation of tea on commercial scale started first in India, and
then later it was extended to the other parts of the country between 50’s and 60’s of the 19 th
century. However, emphasizing due to certain specific soil and climatic necessities
cultivation confined to only certain parts of the country. Major tea contributing and producing
states in the country are Assam, West Bengal, Tamil Nadu and Kerala where about 75% of
the total tea produced in India was generated by Assam and West Bengal together. India was
being remarked for producing the world’s finest teas. Where Assam teas is well known for

their strong, brisk and full-bodied fluid; Nilgiri teas are well known for their fragile flavour,
strength and brightness; and then the low temperature in the hills of Darjeeling are primarily
aided for better production. With their own diverse agro-climatic conditions, other areas
produce medley of tea which suits many different tastes. The distinct characteristics of
quality, taste, fragrance from region to region set them apart from one another in many
different ways. More than a million people are employed in this sector with primary focus on
the women employees. A large number of temporary workers are also engaged during the
plucking season. The labour cost is the largest cost overhead accounting for about 60-65% of
the total cost of production of Indian tea . Since the tea plantation is accounted not only to the
economic productions but also to the social institutions thereby controls the lives of their
resident work force to a large extent. Apart from just providing employment opportunity, the
plantations are also responsible for providing house, water, welfare and many other facilities
that affect the daily lives of the workers. The livelihood of the workers in this industry is
directly linked with the prosperity of the tea industry. Therefore, the tea industry must grow,
not only to fulfil its primary function for domestic reasons of enhancing growth but also
fulfilling social obligation in improving in standards of the well being. India has been a
leading player in the global tea market. Despite its unpredictable situation in the share of
exports done globally, still India is a key source for tea as well as the largest market. The
industry faced steep decline in prices during 1999 to 2006, which therefore affected the
global competiveness and livelihood of workers in this industry. Around 136 gardens then
were blocked, abandoned or suspended their operations due to this recession. Which then
later from 2008 onwards opened with improvement in prices of tea and tea products? The
decline in the prices catered has been due to strong supply with less and sluggish demand.
The tea industry sees fluctuating trends due to agricultural nature of the operation, long
development periods and frequent prices of tea, which are not enhancing to make any
changes in the future. In the past, tea prices have shown brief periods of boom followed by
longer periods of depression. During recession, the basic causes for the closure of tea gardens
in several parts of the country, as reported by the experts, are that these gardens were
inherently weak and suffered from low productivity and lack of investment on developmental
activities. Therefore, it becomes very important that suitable packages for raising the
productivity with cost effectiveness suiting to the conditions of under/less developed sectors
devised and put into place quickly. The problem of ageing and senile bushes is a major
problem for the Indian Tea Industry. More than 21.2 Million hectares constituting a
substantial chunk of Indian Tea gardens are in the end of economic life age category at

present, because of which the industry is running down gradually in vitality and productivity
and faces a high cost of production. This situation can endanger the method of keeping the
plantations in a state of maximum vigour if not countered effectively now. Renovation of the
field assets and R&D on a sound footing- financially, organizationally and managerially
would help succeed in meeting the challenges of the future. The research institutes expected
to continuously develop appropriate technology suiting to the demands of the industry and
disseminate the same. Therefore, research requires backing from well-spread, fine-tuned,
efficient extension services, covering different regions and all segments of the industry.
Adequate technical support is not available to the small and medium size producers. Thus, it
becomes necessary for the research institutes to set up a dedicated extension service exclusive
for the benefit of small and medium producers. Over the past 10-15 years, the emergence of
small sector had assumed a form of a socio-economic movement and served as a vehicle for
social transformation in the N.E. region as well as in North Bengal and Bihar state which has
also opened up avenues for setting up of new tea factories in the small scale industry sector
leading to generation of employment in the tea industry. 26% of the total production of India
is accounted for by this tiny sector. This sector comprising of better clonal composition, low
cost of production and young entrepreneurs coming with agro-techniques and technology
fetches to grow in long as compared to other industries. Smallholder sector is contributing to
revenues in Kenya and Sri Lanka. Thereby also with technical guidance the volume of tea
produced in these countries are interestingly at urge. Despite economic decline, the facts that
demand for tea has always been relatively strong and thereby have strengthened that the
prices will remain same even when production returns to being at standard and normal level.
Even though the stock has depleted in the major importing countries and consumption growth
in India and China, it optimistically expected that the prices will not sink back to the
previously depressed levels. Therefore, there always occurs a factor, which invariably
influences the demand and supply and also fluctuations in the price among competitor that
modify their strategies and also adapt to the varying environment for better management and
labour productivity.
2.4 Global tea scenario

Tea is between the world's mainly broadly consumed beverages. One of the major
markets for tea is the United States where Americans drink 3.6 billion gallons on annual basis
and supermarket sales top $2 billion, as per the information from tea association of the USA.
Black tea is primarily produced and exported by Kenya and Sri Lanka. Green tea is mostly

grown and consumed in China. Even though black tea is by far the majority produced and
exported tea, production and exports of green tea are quickly growing. Asia-Pacific
dominates the international market and account for 40% of the total requirement of the tea
market. The highest production of tea and the major areas under tea agricultural estate belong
to India and China respectively. Primary tea-producing countries are China, India, Kenya and
Srilanka. At the same time as production of black tea is growing 3.9% on annual basis,
production of green tea is growing 11% on annual basis and herbal tea production is growing
more than 15% every year. The development towards health awareness, attached with this
competitive force, will more compel new product expansion in the subsequently five years,
which will in revolve drive industry toward to new requirement. The global market is highly
sophisticated. On the other side, the existence of large unorganized market in Asia Pacific
expecting to contact the profitability of Western producers. Tea Exports from India fall by 14
million kgs in 2012 mostly due to the price hike with teas from other origins looking more
attractive price. Import of tea into India in 2012 was only marginally lower than the previous
year. Indian tea exports average 200 million kg with the unit realisation averaging at about
`175.30 per kg. India is the world’s second largest producer after China and second largest
consumer of tea, accounting for nearly 25-27% of total world tea production. India produce
around 10- 12% of world tea exports. Further, certain varieties of tea (for example,
Darjeeling) grown only in India and are in great demand across the world. India is losing its
share of the global tea exports in the face of the threat coming from countries such as China,
Sri Lanka and Kenya is one of the most popular and consumed hot beverages all over the
world. Today cultivation of tea spread over all the continents more than 30 countries are into
tea production. The estimated global production is 3800 million kg, out of which 43% is
exported and the world consumption being 3700 million kg approx., the global production
and consumption are finely balanced with production little ahead of demand. Tea, being an
agricultural commodity, its production is bound to fluctuate due to vagaries of nature; the
prevailing difference between production and demand is well below any reasonable limits.
Amongst all tea producing countries, the major producers are India, China, Sri Lanka, Kenya
and Indonesia. These five countries contribute 77% of the total world production and 80% of
global exports. In the past few decades, many new entrants have joined the tea family;
notable among them are African countries like Kenya, Malawi and Turkey etc. In the
international market, the Vietnam and China have emerged as the prominent forces to reckon
with, during the last decade. Across various countries, the average per head consumption of
tea varies widely, from more than 2 kg in Ireland and the U.K. and around 1 kg in Sri Lanka

and Pakistan to only 800 grams in India. Still despite having one of the lowest per head
consumption in the world, the total consumption in India is the largest due to its population
size. This distinct position is in sharp contrast with other producing countries, which hardly
have any domestic demand. In the last decade, there has been a relative decline in the
production of black teas and an increase in the production of green tea, which has more than
doubled 692-m.kg in1998 to 1490 m.kg in 2007; this is mainly due to a huge expansion in
China. Over the past ten years, the entire increase in global production is accounted by the
Green Tea since the black tea production remained static around 2300 million which could be
attributed to the scientific studies linking green tea drinking with reduced cancer risk whilst
the latest studies have proved that black teas too have the same healthy properties as that of
green tea. From the time when 2001 China’s production has grown-up by 464 m.kgs i.e. 8.8%
cumulative annual growth and because of this stable growth, India’s place has been pushed to
2nd place since 2006 when China’s production exceed India’s for the first time in 110 years
and has continued to be higher since then.
CHART 1
INDIA- SECOND LARGEST TEA PRODUCER IN THE WORLD

Global Tea Market Production
Others;
14%; 14%
Vietnam; China;
4%; 4% 31%; 31%
Indonesia
; 4%; 4%
Turkey;
4%; 4%
Srilanka;
8%; 8%
Kenya;
9%; 9% India;
26%; 26%
China India Kenya Srilanka

Turkey Indonesia Vietnam Others
Source: http://www.tea.in/industry
CHART 2
Describing Top tea companies in India with their Market Share
Top Tea Companies Of India with Market Shares Percentage
Others; 30%; 29% HUL; 33%; 32%
Golden Tea; 1%; 1%

Goodricke Group;
2%; 2%
Tata Tea; 24%;
Private Label; 2%; 24%
2%
Wagh Bakri; 3%;
3%
Duncans Industries;
7%; 7%
Source: http://www.tea.in/industry

2.5
COMPANY PROFILE

2.6 About chaipoint
Chai point recognized the need and then solved the problem of hygienic tea that is the
basic requirement for every people living across all major cities in India. They created the
authentic and clean glass of chai that is the basic need for every busy and working individual.
Chai is the largest consumed beverage across different cities in India and yet resigned to
roadside make-shift eateries. Inside large corporate and offices the substitute is either
machine or tea bags that is basically killing the authenticity of brewing hot chai. Chai point
began by setting up a simple and clean store that gave an authentic glass of chai.
This simple setup brought in lot of attraction people started loving the whole hygienic
and authentic brewed chai. Chai point started to evolve cautiously with an aim of making chai
as a brand for specific segment of society especially the working section. In Chai point
brewing tea for a glass of chai is a ritual that they follow with proper hygienic and pure
ingredients. Chai point focused on creating a demand for simple and no frill beverage that is
actually need for mostly every second person in India. Chai on whole is connected with
emotions of almost every Indian that Chai point is trying to bring up on international
platforms as first global beverage of tea. They are now successful in recognizing that this
feeling for chai transcends many more countries especially in Asia.
Chai point started its operation from South end circle Bangalore where they started
their first outlet; this was started in experimental basis which had its root from Harvard
University. This all started when Mr. Amuleek Singh Bijral (C.E.O) returned from Harvard
for working on a project that came up as a case study lead by Prof.Tarun Khanna who
formulated it as to be the most profitable business in upcoming time. Mountain Trail
Academy has been the backbone for Chai point for sourcing, training, testing and
certification of all employees at Chai point. MTA (Mountain Trail Academy) aims to be the
most prestigious and knowledgeable database for tea as a beverage. They help out Chai point
in every possible way of training and are showing them the way inside tea industry. MTA
main target is to develop and create strong and dedicated workforce so that they maintain the
unique selling point of delivering the authentic taste to their target segment.
Financial part of the company is outsourced by Chai point from Mind soul financial
firm. Mind soul takes care of all the accounting, taxing and financial needs which cover out
their daily transactions as well as monthly expenditure and salary distribution for their
employees and retail outlet staff. Intense training on chai as a ritual which basically signifies

the quality and hygiene for the cup of tea that is served with authenticity. Chai point also
takes care of the environment that they are working their philosophy is “What goes around
that comes in”, this signifies about the waste that is taken care with proper recycle process.
The recycle process is clean and hygienic for the environment that maintains the balance of
the ecosystem. They are also taking care of the sustainability factor that is planting more and
more crops like ginger, lemon tea etc.
Chai point on whole is balancing out the ecosystem for better and sustaining
environment they completely segment out their waste in two broad categories that is dry and
wet waste that is completely discarded in government authorized norms. They are successful
in converting some part of their waste in manure and green fertilizer that is highly productive
in results. Chai point believes in the mantra of garden to glass they outsource their tea from
Assam, Darjeeling and Nilgiri.
Assam tea which is cherished all over the globe for its bright colour, malty flavour
and distinctive flavour. Darjeeling tea which is known for its musky spiciness and floral
aroma this version of tea is very popular in Asian countries. Nilgiri tea is the strongest
flavoured and intense in aroma in all the three.
MISSION:-
Chai Point’s mission is to serve or target Indian white collar corporate that include
information technology hubs, tech parks, start-ups, branded showrooms, small and house
offices. They mainly aim for building Chai as a brand that is served with pure ingredients,
hygienic method and authentic brewing taste.
VISION:-
Chai point aims to be globally known as first tea serving brand with their mantra of
authentic, hygienic and pure factors maintained in each cup they serve. They have been
already successful in capturing the Indian market as the first chai brand.
Organization Structure of the Company:-
Organization structure of the company is simple yet very effective in delivering

excellence to the customers. Chai point is basically divided into three major segments of
service.

Retail Outlets
Chai at work
CHAI POINT Chai on call
Figure 1: Break up of segments
Above figure describes about the basic segments that are broadly classified into three
categories chai on call, chai at work and retail outlets.
Head of delivery
and Channels.
Chief Operating Head of supply

officer Chain.
Research and Operations

CEO
development team manager.
Audit and
CFO and HR
recuriting team
Figure 2: Basic Organization structure
The above figure describes about the organizational structure for Chai point. This
organizational is simple yet quite tedious in it.
C.E.O: Mr. Amuleek Singh Bijral is the founder and owner of Chai point. It is
because of his charismatic character and unchallengeable methods that we can see now Chai
as a brand.
C.O.O: Mr Sandesh C, from IIM Bangalore after completing his MBA took a
different path which was tough. Instead of joining some high profile company he found it

more interesting to go for Chai point as it was in its growing stage. He not only handles the
operations but also works parallel with C.E.O.
Head of delivery and Channels: Yangchen Lachungpa, graduated from IIM Lucknow
she is responsible for chai on call and subscription network. It is due to her untiring spirit and
leadership all the basic operations are going well as well as Chai on call is leading in terms of
profit chase.
Head of Supply Chain: Yaduvir Singh, former costa coffee employee he is best
known for his market knowledge of vendors and warehouses that deliver the best quality of
raw materials required for daily operations.
Indian Operations of the company
With the tagline “India Runs on Chai”, Chai Point, which has about 110 outlets spread
across Bangalore and NCR region pune, aims to provide variety of flavours in every cup of
chai. Tea Retail Chain Chai Point received its first investment of about 10 crore from the firm
Saama Capital which also backed up online market leader Snap deal and Vintner Sula
Vineyards. The managing director at Saama Capital expects the Company to make 100 stores
by 2016 and then raise the second round of funding.
Currently of about around 36% of Chai Point’s Business comes from 30 companies
where it either has outlets to serve hot beverage or supplies tea with a service called Chai-On-
Call available in a flask that costs about Rs120-180 rs/-. Of different flavours
Chai Point offers seven tea options with few coming on to be launched having
different flavours and tastes – Dum Chai, Ginger Chai, Lemon Chai, Masala Chai , Green
Chai , Ice Lemon Chai , Ice Green chai and 2 among milk shakes . Snacks including Samosa,
Veg puff, Egg puff, Banana cake. The tea priced at a range of between Rs 15-35 and
therefore the delivery of Chai at doorsteps with flasks accounts for 25% of the sales.
The Company is planning to increase the number of outlets in both the locations and
entering into states of Maharashtra, Gujarat, Punjab and Andhra Pradesh.
Type 1: Chai prepared in this category is in the Clients Office. Here the customer is ISB
(Institutional Sales Business) and payment done here on litters count not cup count like in
retail outlets. ISB’s are required to make payment earliest by fortnightly or monthly when
after the invoices raised.

Type 2: Chai from retail outlets and Type1 can be supplied to Type2 category. It involves
COC (Chai on Call) where transaction can happen as credit sales.
Data are fetched from the categorized sales generating entities and helps to forecast
business scenario. Chai point recently came out with a mobile app to make it quick and easier
therefore to place orders, check out the outlets nearby and discounts through the programs.
The app provides user with all the information regarding the products available, the various
offer he or she can redeem. User thereby can place money into the app at any of the outlets
and then pay out for the purchase made by letting the bar code read from your phone. This
app is powered and maintained by Urban Piper which is a start up again of San Francisco
with aim to empower retailers to connect and communicate therefore with the customers.
These application, cards accounts for the sales made on daily basis.
How the App works:
1. Initially the user can check and reload their prepaid card balance of Chai Point and
make payment using their Android phones at ay Chai Point locations.
2. Users here can view their transaction history, collect purchase details and also
rewards and offers.
3. They get immediate notifications once when any new offer or rewards has come.
4. User can provide their feedback directly to Chai point.
Products and Services offered by the company:-
Chai point as an organization has a well-organized and segmented departments each

followed by their head delivering excellence in achieving their individual targets that helps
the organization as a whole in achieving their targets. Mainly there are five departments’
delivery and supply chain, sales and marketing, human resource department, finance
department outsourced and last is research and development for new products. Chai point has
three operational area of service.
1. Chai on call.
2. Subscription chai.
3. Chai at work.

4. Retail outlets.
These are the medium through which Chai point reaches the customer of different target
segment delivering the quality service with uniqueness in every medium.
CHAI ON CALL:
This service is backed up by efficient team of customer service executive, operational

head and head of delivery and sales. This is the second most profitable medium of service
through Chai point has achieved new aspects of growth. This on call service is mostly
successful because of their innovative flask and efficient delivery team backed by electric
bikes. On call service basically follows the mantra of three-ten-twenty where the order is
taken in three minutes, in ten minutes order is processed and lastly delivered with a buffer
time.
Figure 3: Innovative flask
The above figure describes the flask which is used for on call delivery that is chai on call.
Order is usually taken from sources like:
1. Chai point App
2. Toll free number
3. Through online form on website
4. Through Facebook

Mostly used in these all is toll free and online service which has the most number of customer
in their pouch. Next that is catching up is Chai point app that is making the whole process
much easier and faster for the customer. Chai on call segment has tied up with websites like
food panda; just eat etc for improving their all over the market. These services help on call
service for improving their numbers and also help them to reach wide network of customers
which could have been missed. Chai on call is major factor that has spread the product on
huge scale in markets of Bangalore, Delhi and now Pune also, it is because of this service
now customer from Bangalore especially knows about Chai point without even visiting the
outlet.
SUBSCRIPTION CHAI
This basically deals with the fixed delivery service where the routine chart is fixed
according to the customer. Customers are handled directly by relationship manager who takes
care about their plan and grievances. This is basically operated with the help of prepaid card
specially designed for handling these customers each prepaid card is marked with special
sixteen digit number that is unique for the customer. Each customer detail is then entered in
the database with their Google chart predefined by them. Benefit of this service is basically in
price where the customers are taken different slabs based on their recharge they do for
example for a customer doing a recharge for five thousand is eligible for twelve per cent
discount that is levied in the form of top up.
Five step process for Subscription Chai:
1. Set your Chai frequency and flavor.
2. Chai point offers discounted rates basis on your Chai needs.
3. Prepaid card issued- Recharge through NEFT/Cheque.
4. Discount given as top up on your recharge card for eg 10% discount given as 10%
top up.
5. Chai is delivered as per the scheduled timings.

FigureUnderstanding
4: Work model forconsumer
subscriptionrequirement
Chai of hygienic chai during office time
The above figure describes about the model for subscription chai as follows:
1. Freshly prepared tea with pure ingredients.
2. Fresh prepared tea is poured in specialized heat retaining flasks.
3. Delivery of the Flask is done through eco-friendly vehicles.
4. Customer can set their own calendar for delivery frequency and their order.
5. Transactions are hustle free as every customer is provided with prepaid card.
CHAI AT WORK:
This is a specialty driven concept for corporate hubs and IT hubs, where depending
upon the requirement a setup is placed which is specialized in serving large customer size.
Giants like Infosys, TCS, and Salarpuria IT hub etc. are big players that have been already
served.
These setups are basically hot water machines especially designed for delivering
quality experience on every cup served. Chai point takes care for controlling the hygiene and
quality of the specialized containers that are daily analysed and tested before being

Chai @ Work
Setup @ corporate pantry
Counter @ cafeteria
We cater to all corporate beverage needs!

Branded pantry setup | Groomed manpower | 100% compliance | Tech-based invoicing
dispatched. Some outlets are also specially designed to serve a particular crowd as in Infosys,
Narayana healthcare and TESCO where they only serve particular customers with special
care.
Figure 5: Working Model for Chai @ Work
RETAIL OUTLETS:

Retail outlets of Chai point works on the principle of quick service restaurant, they
take care of tea the utmost where most of the profit comes from. Chai point is not only
specialized in serving tea but also in specialties that mostly goes with tea.
Retail outlets are very particular about their hygiene and pure product strategy that
has actually developed tea as a brand in chai point. Retail outlets are very well designed with
common theme of bench perfectly placed for customers; food display units are taken special
Figure 6: Chai Options
care for proper distribution of veg and non-veg products. Every retail outlet specially takes
care about the shell life or in other terms about the product expiry time. Each outlet stores
freshly prepared tea in specialized container where it is labelled with time stickers for
keeping the perfect count of shell life, for every time duration of containers freshness and
quality is checked and once the time lapses out product is discarded and freshly prepared tea
is poured back for sale counters. Retail outlets are open kitchen where any customer can
survey out any point of time for checking the quality and authenticity of chai point is branded
Chai. Chai point is very specific about the environment it specifically follows the clean and
green philosophy of disposing the wastage into dry and wet waste. Each outlet is equipped
with two disposable dustbins one for dry and the other for wet; on whole, the waste is
hygienically disposed by taking care with the government norms.
2.7 SWOT Analysis:

Strengths Weakness
Opportunities Threats
This section of the report will describe about the strength, weakness, opportunity and threat
of Chai point.
STRENGTH:
Chai point is the only company that enforced Chai as a brand.

Chai point has remodelled delivery of tea with disposable heat retaining flask.
Chai point is the only company to have its reach in corporate sector as a
trusted brand.
Chai point has properly focused on the channels of their approach i.e. online,
app, prepaid card and retail card.
Chai point has unique discount patterns for subscribed customer.
Chai point most importantly has focused on their product authenticity, hygiene
and their responsibility towards for proper disposable.

WEAKNESS:
Chai point needs to focus on their marketing and promotion activities.

Chai point needs develop proper coordination with middle level staff.
Chai point must focus on their new product development.
OPPORTUNITY:
Chai point has wide network that is still to be covered with the same pattern of
approach, cities like Chennai, Mumbai, Pune etc. are in pipeline.
Chai point has wide area yet to be covered in the form of railway station,
airports, and bus stops.
Chai point has huge market in the form of hospitals that can be taken in the
form of bed counts.
Aggregators is one of the best part to increase the sales of the company
THREAT
Internal staff management must be improved that may hamper their quality
and rate of progress.
Players like Chai nosh, Tapri, and even café express are an open challenge
which might come up as substitute.
Vendors and coffee machine is one of the biggest threat for chai point

CHAPTER - 3
RESEARCH METHODOLOGY
Research Methodology
3.1 Review of literature:
For this study – Understanding consumer requirement of hygienic chai during office time
taking the help of some information in articles on tea restaurants that are as follows:
Ivan K. W. Lai1 (2014)

Has done with the title the Roles of value, satisfaction, and commitment in the effect
of Service quality on customer Loyalty in Hong Kong–Style Tea Restaurants. The purpose of
this study is to evaluate the roles of perceived value, customer satisfaction, and affective
commitment as they mediate the effect of service quality on customer loyalty. A set of
intervening variables reflecting service quality, perceived value, customer loyalty, customer
satisfaction. This study used the analysis has been Factor Analysis.

Christopher Kanali2 Elizabeth Nambuswa Makokha1(2014)

Has done with the title Reward and Compensation as a Determinant of Employee
Commitment: A Survey of Ktda Tea Factories in Kenya. The purpose of this study is to
investigate the determinants of employee commitment in tea organizations in Kenya. Strong
commitment is correlated with high productivity, while low commitment lowers productivity.
A set of intervening variables are Rewards and compensation. The study has implications for
management of tea factories since, all aspects of reward and compensation showed
significant relationship to commitment; this means part of the disparity observed in payment
of tea bonus (high and low) in various KTDA tea factories in Kenya. This study used the
analysis has been Chi-square tests, Correlation .
Milgo, Alice Chepkorir, et al (2014)
Has done with the title reward and compensation as a determinant of employee commitment:
A survey of KTDA tea factories in Kenya. This research objective are to provide value
proposition and development model of the influence factors for customer loyalty of instant
tea drink product based on consumer value through customer satisfaction. A set of
intervening variables are Rewards and compensation. This study used the analysis has been
Correlation, chi-square tests, One way Anova.
Hesty N. Utami & Agriani H. Sadeli (2016)
Has done with the title the impact of customer value towards customer loyalty of
ready to drink tea bottled. This research objective are to provide value proposition and
development model of the influence factors for customer loyalty of instant tea drink product
based on consumer value through customer satisfaction. A set of intervening variables are
Customer value Loyalty satisfaction Maintaining customer value can improve customer
loyalty, whilst require customer satisfaction as one of supply chain performance indicator.
Other marketing program and attributes need to integrate in order to gain customer loyalty
and be more competitive in the marketplace. This study used the analysis has been
Correlation Regression.
Hyun (2016)

Has done with the title Predictors of Relationship Quality and Loyalty in the Chain
Restaurant Industry. This study investigated the elects of price, location, and influence
customer satisfaction directly and indirectly via trust. A set of intervening variables are
Purchase Intention.
This study used the analysis has been Correlation Regression.
Berhaupt-Glickstein, Neal H. Hooker and William K. Hallman (2019)
Has done with the title qualified health claim Language aspects Purchase Intentions
for Green Tea Products in the United States Amanda. This study investigated the elects of
QHCson purchase intentions among adults 55 years and older living in the US. A set of
intervening variables are Purchase Intention, evidence, confidence, risk perception, dose.
People who follow diet have impact. A person who has greater confidence and evidence has
an intention to purchase for Tea. This study used the analysis has been Correlation, chi-
square tests, One way Anova.
Gao, Ying-Ying, et al (2007)
Has done with the Clinical treatment of ocular demodecosis by lid scrub with tea tree
oil. The purpose of this study is to evaluate the roles of perceived value, customer
satisfaction, and affective commitment as they mediate the effect of service quality. Other
marketing program and attributes need to integrate in order to gain customer loyalty. This
study used the analysis has been Correlation Regression.
3.2 Need for the study:
To identify the factors that influence customers to buy tea from particular point.
To identify why customers visit only a particular tea point.
3.3 Statement of the problem:
To know how these factors has influenced the customer in driving towards chaipoint
services, i.e, how it affects the consumer buying behaviour towards chai in chaipoint.

3.4 Objectives of the study:
To evaluate customer satisfaction level across Bangalore, for Chai point’s retail and delivery
channels.
To handle out promotional activities for brand promotions, new product development and
events for the organizations.
To access mediating roles

To analyze the moderating effects
To analyse tea consumption across sectors like start-ups retail and BFSI for future targets
3.5 Hypothesis
 H1 : Service has a positive impact on customer experience in the chaipoint.

 H2 :Quality has a positive impact on customer experience in the chaipoint
 H3 : Customer satisfaction has a positive impact on customer experience in the chai
point.
 H4 : Customer opinion has a positive impact on customer experience in the

chaipoint.
3.6 Data collection and Sample design:
1. Data collection method : Survey based method
2. Data collection tool : Structured questionnaire with five-point Likert scale
3. Sample size : 209 Respondents.
4. Data collection period : 2020

5. Data collection area : Bangalore
6. Sampling technique : Purposive sampling technique
7. Measurement Techniques used:

a. Descriptive statistics
b. Multiple Regression Analysis
c. Correlations
d. Factor Analysis
e. Reliability Analysis
8. Software used for data analysis : SPSS
3.6 Conceptual Framework:
Service

Quality
Customer satisfaction Customer experience
Customer opinion
3.7 Limitations of the study:
 The research is confined to limited geographical area

 This research is having limited time to collect data.
 The study is confined just to different stores, chai point Bangalore.
 The data which provided by the respondents may be subjected to personal bias

CHAPTER – 4
DATA ANALYSIS & INTERPRETATION
4.1 Reliability Statistics:
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.877 .877 15
Interpretation:
The reliability should be above 0.6 hence the Cronbach’s alpha with 15 items is
0.877, so it is reliable.

Frequency Table
4.2 Gender of respondents
gender
Cumulative
Frequency Percent Valid Percent Percent
Valid male 124 59.3 59.3 59.3
female 85 40.7 40.7 100.0
Total 209 100.0 100.0
Interpretation:
From the above data we observed that 59.3% of respondents are of male and the
remaining 40.7% are of female respondents.
4.3 Age of Respondents
age
Cumulative
Valid 18-24 43 20.6 20.6 20.6
25-34 109 52.2 52.2 72.7
35-49 50 23.9 23.9 96.7
more than49 7 3.3 3.3 100.0

Total 209 100.0 100.0
Interpretation:
From the above table we observed that the majority of the people are at the age of 18-
24 years with 20.6% and after that with 52.2% of respondents are between the age of 25-34
years and next 23.9% of respondents are between age of 35-49years and next 3.3% of
respondents are between age of more than49 years.
4.4 Income of Respondents
income
Cumulative
Valid 5000-9999 2 1.0 1.0 1.0
10000-14999 2 1.0 1.0 1.9
15000-19999 17 8.1 8.1 10.0
20000-29999 48 23.0 23.0 33.0
30000-39999 50 23.9 23.9 56.9
more than 40000 90 43.1 43.1 100.0
Total 209 100.0 100.0

Interpretation:
In above table it show that more number of users are from less than 5000-9999
and10000-14999 income group with the percentage of 1.0% and next highest above 15000-
19999 is with 8.1% .The income group of 20000-29999 has a percentage of 23.0% and
30000-39999 income group has a percentage of 23.9%. Finally, the income level of more
than 40000 has 43.1%.
4.5 Education of Respondents
education
Cumulative
Valid Secondary level (or lower) 1 .5 .5 .5
Secondary school 5 2.4 2.4 2.9
graduate
College graduate 35 16.7 16.7 19.6
Bachelor-level graduate 126 60.3 60.3 79.9
Master-level graduate (or 42 20.1 20.1 100.0
higher)
Total 209 100.0 100.0

Interpretation:
From the above bar graph it is analyzed that high number of respondents are having
the education of bachelor level graduate with 60.3% and next following are doing master
level graduate with the percentage of 20.1%. Then the remaining are college graduate,
secondary school graduate, secondary level.
4.6 Career of Respondents
carrer
Cumulative
Valid Full-time student 2 1.0 1.0 1.0
Housewife 12 5.7 5.7 6.7
Government 25 12.0 12.0 18.7
Manufacturing 24 11.5 11.5 30.1
Service sector 138 66.0 66.0 96.2
Unemployed/retired 2 1.0 1.0 97.1
Other 6 2.9 2.9 100.0
Total 209 100.0 100.0

Interpretation:
From the above bar graph it is analyzed that high number of respondents are doing at
service sector with 66.0% and next following are doing government with the percentage of
12.0%,and next are doing manufacturing with11.5% and the remaining are doing full time
student, housewife, unemployed and others.
4.7 How many times did you have a chai in chai point last month of respondents
HOW MANY TIMES DID YOU HAVE A CHAI IN CHAIPOINT LAST MONTH
Cumulative
Valid 1-5 17 8.1 8.1 8.1
6-10 38 18.2 18.2 26.3
11-15 74 35.4 35.4 61.7
16-20 71 34.0 34.0 95.7
more than 20 9 4.3 4.3 100.0
Total 209 100.0 100.0

Interpretation:
From the above bar graph it is analyzed that respondents had chai in chaipoint of 11-
15 times with 35.4% and next following of 16-20 times with the percentage of 34.0%,and
next 6-10times with18.2% and the remaining of 1-5 and more than 20 are with 8.1% and
4.3%.
4.8 When did you begin chai in chai point of respondents
WHEN DID YOU BEGIN CHAI IN CHAIPOINT

Cumulative
Valid When I began working 10 4.8 4.8 4.8
Few years ago 60 28.7 28.7 33.5
One year ago 77 36.8 36.8 70.3
Few months ago 61 29.2 29.2 99.5
Only last time 1 .5 .5 100.0
Total 209 100.0 100.0

Interpretation:
From the above bar graph it is analyzed that high number of respondents had began
chain in chai point one year ago with 36.8% and next following few months ago with the
percentage of 29.2%. Then the remaining few years ago with 28.7% and when I began
working and only last time of beginners are with 4.8% and 0.5%.
4.9 This chai point delivered excellent overall service of respondents
THIS CHAIPOINT DELIVERED EXCELLENT OVERALL SERVICE

Cumulative
Valid Strongly agree 106 50.7 50.7 50.7
agree 79 37.8 37.8 88.5
Neutral 14 6.7 6.7 95.2
disagree 4 1.9 1.9 97.1
Strongly disagree 6 2.9 2.9 100.0
Total 209 100.0 100.0
Interpretation:
From the above table and graph, we can analyze that many respondents with 50.7%
are strongly agree and the next is followed with 9.7% agree and the next is followed with
6.7% and the least of them with percentage of 1.9% are disagree with this chai point
delivered excellent overall service
.
4.10 This chai point maintained superior service in every way of respondents
THIS CHAIPOINT MAINTAINED SUPERIOR SERVICE IN EVERY WAY

Cumulative


agree 117 56.0 56.0 83.7
Neutral 24 11.5 11.5 95.2
disagree 7 3.3 3.3 98.6
Total 209 100.0 100.0
Interpretation:
are agree and the next is followed with 27.8% are strongly agree and the next is followed
with 11.5% are neutral and the least of them with percentage of 1.4% are strongly disagree
with this chai point maintained superior service in every way.
4.11 The offerings of this chai point were of high quality of respondents
THE OFFERINGS OF THIS CHAIPOINT WERE OF HIGH QUALITY

Cumulative
agree 91 43.5 43.5 72.7
Neutral 45 21.5 21.5 94.3
disagree 6 2.9 2.9 97.1
Total 209 100.0 100.0

Interpretation:
and disagree with the offerings of this chai point were of high quality.
4.12 This chai point offered good value for the price of respondents
THIS CHAIPOINT OFFERED GOOD VALUE FOR THE PRICE

Cumulative
agree 75 35.9 35.9 76.6
Neutral 36 17.2 17.2 93.8
disagree 7 3.3 3.3 97.1
Total 209 100.0 100.0

Interpretation:
are strongly agree and the next is followed with 35.9% are agree and the next is followed
with this chai point offered good value for the price.
4.13 I feel a strong sense of identification with this chai point of respondents
I FEEL A STRONG SENSE OF IDENTIFICATION WITH THIS CHAIPOINT

Cumulative
agree 94 45.0 45.0 79.4
Neutral 28 13.4 13.4 92.8
disagree 9 4.3 4.3 97.1
Total 209 100.0 100.0
Interpretation:

with feel a strong sense of identification with this chai point.
4.14 The overall value of drinking at this chai point was high of respondents
THE OVERALL VALUE OF DRINKING AT THIS CHAIPOINT WAS HIGH

Cumulative
agree 74 35.4 35.4 82.3
Neutral 27 12.9 12.9 95.2
disagree 5 2.4 2.4 97.6
Total 209 100.0 100.0
Interpretation:
with the overall value of drinking at this chai point was high.
4.15 The drinking experience on this chai point was worth the money of respondents
THE DRINKING EXPERIENCE ON THIS CHAIPOINT WAS WORTH THE

MONEY
Cumulative


agree 92 44.0 44.0 78.5
Neutral 35 16.7 16.7 95.2
disagree 7 3.3 3.3 98.6
Total 209 100.0 100.0
Interpretation:
with the drinking experience on this chai point was worth the money.
4.16 I was fully satisfied with the service in this chai point of respondents
I WAS FULLY SATISFIED WITH THE SERVICE IN THIS CHAIPOINT

Cumulative
agree 90 43.1 43.1 78.5
Neutral 35 16.7 16.7 95.2
disagree 8 3.8 3.8 99.0
Total 209 100.0 100.0

Interpretation:
with fully satisfied with this service in this chai point.
4.17 My expectations of service in this chai point had been met of respondents
MY EXPECTATIONS OF SERVICE IN THIS CHAIPOINT HAD BEEN MET

Cumulative
agree 89 42.6 42.6 75.6
Neutral 32 15.3 15.3 90.9
disagree 12 5.7 5.7 96.7
Total 209 100.0 100.0
Interpretation:

with expectations of service in this chai point had been met.
4.18 Compared with other chai point, the level of satisfaction had been high of
respondents
COMPARED WITH OTHER CHAIPOINT,THE LEVEL OF SATISFACTION

HAD BEEN HIGH
Cumulative
agree 81 38.8 38.8 67.5
Neutral 51 24.4 24.4 91.9
disagree 7 3.3 3.3 95.2
Total 209 100.0 100.0
Interpretation:
with 24.4% are neutral and the least of them with percentage of 3.3% are disagree with other
chai point the level of satisfaction had been high.
4.19 I feel emotionally attached to this chai point of respondents
I FEEL EMOTIONALLY ATTACHED TO THIS CHAIPOINT

Cumulative
agree 90 43.1 43.1 75.6
Neutral 34 16.3 16.3 91.9
disagree 12 5.7 5.7 97.6
Total 209 100.0 100.0

Interpretation:
with 16.3% are neutral and the least of them with percentage of 2.4% are disagree with feel
emotionally attached to this chai point.
4.20 This chai point has a great deal of personal meaning for me of respondents
THIS CHAIPOINT HAS A GRAT DEAL OF PERSONAL MEANING FOR ME

Cumulative
agree 89 42.6 42.8 73.1
Neutral 43 20.6 20.7 93.8
disagree 10 4.8 4.8 98.6
Total 209 100.0 100.0
Interpretation:

with 20.6% are neutral and the least of them with percentage of 1.4% are disagree with this
chai point has a great deal of personal meaning for me.
4.21 In the future i will speak favourably about this chai point to others of respondents
IN THE FUTURE I WILL SPEAK FAVOURABLY ABOUT THIS

CHAIPOINT TO OTHERS
Cumulative
agree 101 48.3 48.3 74.2
Neutral 36 17.2 17.2 91.4
disagree 14 6.7 6.7 98.1
Total 209 100.0 100.0
Interpretation:
with 17.2% are neutral and the least of them with percentage of 1.9% are disagree in the
future I will speak favourably about this chai point to others.
4.22 In the future i will recommend this chai point to my relatives and friends of
respondents.
IN THE FUTURE, I WILL RECOMMEND THIS CHAIPOINT TO MY

RELATIVES AND FRIENDS

Cumulative
agree 86 41.1 41.1 75.6
Neutral 36 17.2 17.2 92.8
disagree 10 4.8 4.8 97.6
Total 209 100.0 100.0
Interpretation:
future I will recommend this chai point to my relatives and friends.
4.23 I will come back to this chai point in a short period of time, say a week of
respondents
I WILL COME BACK TO THIS CHAIPOINT IN A SHORT PERIOD OF

TIME,SAY A WEEK
Cumulative
agree 78 37.3 37.3 78.5
Neutral 34 16.3 16.3 94.7
disagree 6 2.9 2.9 97.6
Total 209 100.0 100.0

Interpretation:
future I will come back to this chai point in a short period of time say a week.
4.24 Regression analysis
Model Summary of Regression:

Model Summaryb
Std. Error of Change Statistics
Mode R Adjusted R the R Square F Sig. F
l R Square Square Estimate Change Change df1 df2 Change
1 .731a .534 .525 .43901 .534 58.465 4 204 .000
a. Predictors: (Constant), customer opinion, service, quality, customer satisfaction
b. Dependent Variable: customer experience
Interpretation:
Coefficient of determination R-Square (R2) explains the variance in dependent
variable (i.e. customer experience). The dependent variable explains 53.4% of variance. If the
value of R2 is above 50% means its good here in this study the value of R 2 is 53.4% so it very
good.

4.25 ANOVA of Regression
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 45.072 4 11.268 58.465 .000b
Residual 39.317 204 .193
Total 84.389 208
a. Dependent Variable: customer experience
b. Predictors: (Constant), customer opinion, service, quality, customer satisfaction
Interpretation:
ANOVA explains there is significant variance exists in all the variance. There is a significant
variance in the regression model that is the variables used in the regression model have
significant variance. The variable used in regression model has huge variance.
4.26 Coefficients of Regression:
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .370 .107 3.455 .001
service .072 .053 .081 1.363 .175
quality .236 .055 .266 4.305 .000
customer satisfaction .209 .057 .245 3.690 .000
customer opinion .259 .067 .283 3.845 .000
a. Dependent Variable: customer experience
Interpretation:
 The significant value of Service is 0.175 which is less than 0.05 therefore it is
significant, the beta value 0.081. Service has positive impact on customer experience
and hence, the hypothesis (H1) is accepted.
 The significant value of quality is 0.000 which is less than 0.05 therefore it is
significant, the beta value 0.266. Quality has positive impact on customer experience
and hence, the hypothesis (H2) is accepted.

 The significant value of customer satisfaction is 0.000 which is less than 0.05
therefore it is significant, the beta value 0.245. Customer satisfaction has positive
impact on customer experience and hence, the hypothesis (H3) is accepted.
 The significant value of customer loyalty is 0.000 which is less than 0.05 therefore it
is significant, the beta value 0.283. Customer opinion has positive impact on customer
experience and hence, the hypothesis (H4) is accepted.
Y = 0.81S + 0.266Q + 0.245CS + 0.283CO + C
Where,
S – Service
Q – Quality
CS – Customer satisfaction
CO – Customer opinion
Y – Customer experience
C - Constant.
Correlation:
The relation between two or variables is said to be known as correlation it is a
statistical measure that indicates the extent to which two or more variables fluctuate together.
A positive correlation indicates the extent to which those variables increase or decrease in
parallel; a negative correlation indicates the extent to which one variable increases as the
other decreases.
4.27 Correlations

correlations
customer customer customer
service quality experience satisfaction opinion
** ** **
service Pearson Correlation 1 .445 .470 .439 .575**
Sig. (2-tailed) .000 .000 .000 .000
N 209 209 209 209 209
** ** **
quality Pearson Correlation .445 1 .604 .548 .589**
Sig. (2-tailed) .000 .000 .000 .000
N 209 209 209 209 209
customer experience Pearson Correlation .470** .604** 1 .616** .650**
Sig. (2-tailed) .000 .000 .000 .000
N 209 209 209 209 209
customer satisfaction Pearson Correlation .439** .548** .616** 1 .667**
Sig. (2-tailed) .000 .000 .000 .000
N 209 209 209 209 209
** ** ** **
customer opinion Pearson Correlation .575 .589 .650 .667 1
Sig. (2-tailed) .000 .000 .000 .000
N 209 209 209 209 209
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation:
The correlation always lies between -1 to +1. Here we have the variables like Service,
Quality, Customer Experience, Customer Satisfaction and Customer Opinion that two
variables meet or intersect, that’s here all diagonals are 1 then it is perfectly correlated. The
correlation of a variable with itself , Service with Service that’s always going to be 1.0. The
correlation value is more than 0.5 then they are strongly correlate. These are highly correlated
that are shown as follows:
Service & Customer opinion, Quality & Customer experience, Quality & Customer
satisfaction, Quality & Customer opinion, Customer experience & quality, Customer
experience & Customer satisfaction, Customer experience & Customer opinion, Customer
satisfaction & quality, Customer satisfaction & Customer experience, Customer satisfaction
& Customer opinion, Customer opinion & service, Customer opinion & quality, Customer
opinion & Customer experience, Customer opinion & Customer satisfaction.

The correlation between the values is less than 0.5 then they are weekly correlated i.e..,
Service & quality, Service & Customer experience, Service & Customer satisfaction, Quality
& Service, Customer experience & Service, Customer satisfaction & Services.
Factor Analysis
4.28 KMO and Bartlett's Test:
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .873
Bartlett's Test of Sphericity Approx. Chi-Square 1033.877
df 105
Sig. .000
The Kaiser-Meyer-Olkin Measure of is a statistic that measures the proportion of variance in

the variables that might be caused by underlying factors. High factors generally equal to one
indicate that the factor analysis may be useful with your data. If the value is less than 0.5 then
the factor analysis probably won’t be useful.
Bartlett's Test of Sphericity tests the hypothesis that your correlation matrix is an identity
matrix, which would indicate that your variables are un-related and therefore un-suitable for
structure detection. Small values (of less than 0.05) significance level indicates that a factor
analysis may be useful with the data.
Interpretation:
From the above table we observed that significance value is .000 which is considered, and the
Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.873 which is acceptable, and the
approximate Chi-Square value is 1033.877.
4.29 Communalities:

Communalities
Initial Extraction
THIS CHAIPOINT 1.000 .806
DELIVERED EXCELLENT
OVERALL SERVICE
MAINTAINED SUPERIOR
SERVICE IN EVERY WAY
THE OFFERINGS OF THIS 1.000 .451
CHAIPOINT WERE OF
HIGH QUALITY
OFFERED GOOD VALUE
FOR THE PRICE
I FEEL A STRONG SENSE 1.000 .736
OF IDENTIFICATION WITH
THIS CHAIPOINT
THE OVERALL VALUE OF 1.000 .551
DRINKING AT THIS
CHAIPOINT WAS HIGH
THE DRINKING 1.000 .465
EXPERIENCE ON THIS
CHAIPOINT WAS WORTH
THE MONEY
I WAS FULLY SATISFIED 1.000 .353
WITH THE SERIVICE IN
THIS CHAIPOINT
MY EXPECTATIONS OF 1.000 .636
SERVICE IN THIS
CHAIPOINT HAD BEEN
MET
COMPARED WITH OTHER 1.000 .486
CHAIPOINT,THE LEVEL OF
SATISFACTION HAD BEEN
HIGH
I FEEL EMOTIONALLY 1.000 .580
ATTACHED TO THIS
CHAIPOINT

THIS CHAIPOINT HAS A 1.000 .518

GRAT DEAL OF
PERSONAL MEANING FOR
ME
IN THE FUTURE I WILL 1.000 .530
SPEAK FAVOURABLY
ABOUT THIS CHAIPOINT
TO OTHERS
IN THE FUTURE, I WILL 1.000 .701
RECOMMEND THIS
CHAIPOINT TO MY
I WILL COME BACK TO 1.000 .681
THIS CHAIPOINT IN A
SHORT PERIOD OF
TIME,SAY A WEEK
Extraction Method: Principal Component Analysis.
Initial communalities are, for correlation analyses, the proportion of variance accounted for in
each variable by the rest of the variables.
Extraction communalities are estimates of the variance in each variable accounted for by the
factors in the factor solution. Small values indicate variables that do not fit well with the
factor solution, and should possibly be dropped from the analysis.
Interpretation:
The above table explains how much each factor is extracting and we can see that all values
are above 0.4 which is considered.
4.30 Rotated Component Coefficient Matrix of factor analysis:
Rotated Component Matrixa

Component
1 2 3
THIS CHAIPOINT .152 .082 .881
DELIVERED EXCELLENT
OVERALL SERVICE
MAINTAINED SUPERIOR
SERVICE IN EVERY WAY

THE OFFERINGS OF THIS .327 .149 .349

CHAIPOINT WERE OF
HIGH QUALITY
OFFERED GOOD VALUE
FOR THE PRICE
I FEEL A STRONG SENSE .836 .187 .050
OF IDENTIFICATION WITH
THIS CHAIPOINT
THE OVERALL VALUE OF .663 .199 .267
DRINKING AT THIS
CHAIPOINT WAS HIGH
THE DRINKING .463 .226 .316
EXPERIENCE ON THIS
CHAIPOINT WAS WORTH
THE MONEY
I WAS FULLY SATISFIED .532 .150 .218
WITH THE SERIVICE IN
THIS CHAIPOINT
MY EXPECTATIONS OF .079 .789 .089
SERVICE IN THIS
CHAIPOINT HAD BEEN
MET
COMPARED WITH OTHER .449 .353 .245
CHAIPOINT,THE LEVEL OF
SATISFACTION HAD BEEN
HIGH
I FEEL EMOTIONALLY .352 .662 .132
ATTACHED TO THIS
CHAIPOINT
THIS CHAIPOINT HAS A .269 .638 .195
GRAT DEAL OF
PERSONAL MEANING FOR
ME
IN THE FUTURE I WILL .226 .627 .293
SPEAK FAVOURABLY
ABOUT THIS CHAIPOINT
TO OTHERS
IN THE FUTURE, I WILL .816 .178 .054
RECOMMEND THIS
CHAIPOINT TO MY

I WILL COME BACK TO .170 .172 .789

THIS CHAIPOINT IN A
SHORT PERIOD OF
TIME,SAY A WEEK
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
Interpretation:
From the above table all 5 factors are loading above .50 with 3 components.
4.31 Factor Loading:
S.No Constituent Variables Factor Loading Factor Extracted

Value
This chai point delivered excellent overall

service. 0.881
1. This chai point maintained superior service Service
in every way 0.531
The offerings of this chai point were of high

quality. 0.349
This chai point offered good value for the
2. price 0.393 Quality
I feel a strong sense of identification with

this chai point 0.836
The overall value of drinking at this chai

point was high.

0.663
The drinking experience on this chai point
3. was worth the money. 0.463
I was fully satisfied with the service in this
chai point Customer experience
My expectations of service in this chai point 0.532

had been met.
0.789
4.
Compared with other chai point, the level of
satisfaction had been high. 0.449
I feel emotionally attached to this chai point

0.662 Customer satisfaction
This chai point has a great deal of personal
meaning for me.
0.638
In the future, I will speak favourably about

5.
this chai point to others.
0.627
In the future, I will recommend this chai
point to my relatives and friends
0.816 Customer opinion
I will come back to this chai point in a short
period of time, say a week
0.789

CHAPTER – 5
FINDINGS, SUGGESTIONS &
CONCLUSION

5.1 Findings:
The following are some of the important findings that we had find from the above study.
These findings are clearly mentioned as follows:
This study is focused on who had chai in chaipoint between different age groups like
18-24 the frequency is 43, % is 20.6 and cumulative % is 20.6,25-34 the frequency is
109,% is 52.2 and cumulative is 72.7%, 35-49 the frequency is 50, % is 23.9 and
cumulative is 96.7, more than 49 frequency is 7, % is 3.3 and cumulative is 100.0.
In reliability analysis the cornbach’s alpha with 15 items is 0.877.
Correlation always lies between -1 to +1.Here we got perfectly correlated that means
there is significant difference between customer satisfaction and quality and services
has positive impact on customers to have a chai in chaipoint.
In descriptive statistics, clearly mentioned that customer requirement of hygienic chai
was significantly related to factors. These are clearly shown in the above frequency
tables.
50.7% of respondents are with strongly agree followed by 37.8% are agree and 6.7%
are neutral and 2.9% and 1.9% are strongly disagree and disagree with excellent
delivering service.
56.0% of respondents are with agree followed by 27.8% are strongly agree and 11.5%
are neutral and 3.3% and 1.4% are disagree and strongly disagree with maintained
superior service in every way.
43.5% of respondents are with agree followed by 29.2% are strongly agree and21.5%
are neutral and 2.9% are disagree and strongly disagree with offerings of the chaipoint
were high quality.
are neutral and 3.3% and 2.9% are disagree and strongly disagree with offered good
value for the price.
are neutral and 4.3% and 2.9% are disagree and strongly disagree with a strong sense
of identification with this chaipoint.
are neutral and 2.4% are disagree and strongly disagree with overall value of drinking
at this chaipoint was high.

are neutral and 4.3% and 3.3% and 1.4% are disagree and strongly disagree with
drinking experience on this chaipoint was worth the money.
are neutral and 3.8% and 1.0% are disagree and strongly disagree with fully satisfied
with the service in chaipoint.
are neutral and 5.7% and 3.3% are disagree and strongly disagree with expectations of
service in this chaipoint had been met.
are neutral and 4.8% and 3.3% are strongly disagree and disagree with other chaipoint
level of satisfaction has been high.
are neutral and 5.7% and 2.4% are disagree and strongly disagree with emotionally
attached to this chaipoint.
are neutral and 4.8% and 1.4% are disagree and strongly disagree with a great deal of
personal meaning.
are neutral and 6.7% and 1.1% are disagree and strongly disagree with speaking
favourably about this chaipoint to others.
are neutral and 4.8% and 2.4% are disagree and strongly disagree with recommending
this chaipoint to relatives and friends.
are neutral and 2.9% and 2.4% are disagree and strongly disagree with come back in a
short period of time.
In regression the study indicate that there is positive impact of service, quality,
customer experience, satisfaction and opinion.

5.2 Suggestions:
By observing the above findings, the following are some of the suggestions that are
mentioned as follows:
We know that maximum influencing factors for hygienic chai during office time are
gender, age, occupation, income and we can improve the customers by focusing on
these variables and making strategies towards the purchase of services.
Instead of focusing totally on items of hygienic chai , can focus on providing better
services and quality which can help in positive impact on the customers to have chai
in chaipoint.
Customers make their decisions based on a number of factors. A part from the price of
the item factors such as appearance and perceived quality determine the decision
made in market place.
In a different study carried out, it was found that when level of education is higher,
women leads larger ratio than men and they take notice of safety and health
information.
Regarding sales improvement for subscription plan delivery agents were properly trained for
promoting the subscription plan on their way to delivery and market places where they find it
feasible. Every delivery agent was tracked properly not only for their targets but also for their
promotional activities.
Promotional activities were increased with a suggestion of Counter stalls in IT hubs as wells
as tech parks for improving awareness.
The age of respondents, gender, education and income level are among the important
characteristics influencing the primary preference in purchases of chai.
5.3 Conclusion:
Chai point has been a wonderful experience in learning as well as developing market
knowledge for Bangalore. This on whole is a successful concept which is growing very fast and soon
will be competing with heavy tea brands. Every market visit was a challenge in itself as competition
was with the local vendors as well as previously placed hot beverage dispensers. It was very difficult
task to position as a branded tea among the mind-set of customers who were enjoying delights of low
quality tea.

Working with the concept of quick service restaurant was very fascinating as it opened doors
to many new aspects of business where above all customer is primary. Chai point is successful in
maintain their unique selling proposition as they have positioned themselves as India’s first branded
authentic brewing tea that already has a special place among the customers.
Chai point is drastically capturing the market with their vision 2018 plan which talks about a
whole lot of change with their external and internal environment. They are going at quick pace with
the development of new products like chocolate ice tea latte, minted lemon ice tea and many more.
Annexure:
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Drinking Water Served in Restaurants and Quality Characteristics of Drinking
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Safety 22.3 (2007): 159-164.
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different types of tea with chlorhexidine on Streptococcus mutans." Journal of
clinical and diagnostic research: JCDR 11.9 (2017): ZC05.
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Equipment for Cleansing Utensils, Crockery, Etc., in Hotels, Restaurants and
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25. www.chaipoint.com
26. www.teaboard.gov.in/
27. http://teaboard.org/
28. http://www.indiatea.org/
QUESTIONNAIRE
1. Gender
 Male
 Female
2. Age
 18-24
 25-34
 35-49
 More than 49
3. Income
 5000-9999
 10000-14999
 15000-19999
 20000-29999
 30000-39999
 More than 40000

4. Education
 Secondary level (or lower)
 Secondary school graduate
 College graduate
 Bachelor-level graduate
 Master-level graduate (or higher)
5. Career
Full-time student
Housewife
Government
Manufacturing
Service sector
Unemployed/retired
Other………………
6. How many times did you have a chai in chaipoint last month
 1-5
 6-10
 11-15
 16-20
 More than 20
7. When did you begin chai in chaipoint

 When I began working
 Few years ago
 One year ago
 Few months ago
 Only last time
8.This chaipoint delivered excellent overall service
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
9. This chaipoint maintained superior service in every way
 Strongly agree
 Agree
 Neutral
 Disagree

10. The offerings of this chaipoint were of high quality.

 Strongly agree
 Agree
 Neutral
 Disagree
11. This chaipoint offered good value for the price
 Strongly agree
 Agree
 Neutral
 Disagree
12. I feel a strong sense of identification with this chaipoint
 Strongly agree
 Agree
 Neutral
 Disagree
13. The overall value of drinking at this chaipoint was high.
 Strongly agree
 Agree
 Neutral
 Disagree
14 The drinking experience on this chaipoint was worth the money.
 Strongly agree
 Agree
 Neutral
 Disagree
15. I was fully satisfied with the service in this chaipoint
 Strongly agree
 Agree
 Neutral
 Disagree

16. My expectations of service in this chaipoint had been met
 Strongly agree
 Agree
 Neutral
 Disagree
17. Compared with other chaipoint, the level of satisfaction had been high.
 Strongly agree
 Agree
 Neutral
 Disagree
18. I feel emotionally attached to this chaipoint
 Strongly agree
 Agree
 Neutral
 Disagree
19. This chaipoint has a great deal of personal meaning for me.
 Strongly agree
 Agree
 Neutral
 Disagree
20. In the future, I will speak favorably about this chaipoint to others.
 Strongly agree
 Agree
 Neutral
 Disagree
21. In the future, I will recommend this chaipoint to my relatives and friends.
 Strongly agree
 Agree
 Neutral
 Disagree
22. I will come back to this chaipoint in a short period of time, say a week
 Strongly agree

 Agree
 Neutral
 Disagree
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Understanding consumer requirement of hygienic chai during office time

UNDERSTANDING CONSUMER REQUIREMENT OF HYGIENIC CHAI

DURING OFFICE TIME (CHAI POINT)

A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, ANANTAPURAM

In Partial Fulfilment of the Requirements

For the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Dr. D.PRADEEP KUMAR, MBA, Ph.D.

MITS SCHOOL OF BUSINESS

MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE (MITS)

(Affiliated to Jawaharlal Nehru Technological University, Anantapuram)

CHITTOOR DISTRICT, A.P.

MITS School of Business Page i

MITS School of Business

Certificate that the project report entitled “UNDERSTANDING CONSUMER

INTERNAL EXAMINAR EXTERNAL EXAMINAR

MITS School of Business Page ii

I do hereby declare that the dissertation title “UNDERSTANDING CONSUMER

PLACE: MADANAPALLE (ROLL.NO:18691E00K4)

MITS School of Business Page iii

I have deep sense of gratitude to of Dr. D.PRADEEP KUMAR, MBA, Ph.D.,

I take this opportunity to thank Sri. N. KRISHNA KUMAR, Chairman – MITS,

( Roll. No: 18691E00K4)

MITS School of Business Page iv

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MITS School of Business Page vi

MITS School of Business Page 1

1.1 EXECUTIVE SYNOPSIS:

MITS School of Business Page 2

Key words: service, quality, satisfaction, opinion, consumers

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Theoretical Concept on customer requirement:

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(a) Hierarchical objectives and targets,

(b) Administrative desires for work execution, and

The subsequent standard is Coworker Support. Susskind et al. characterized colleague

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Supervisory Support and administrative Support is characterized as people's

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2.1 The Indian Retail Industry:

a) Assam tea (grown in Assam and other parts of NE India)

b) Darjeeling tea (grown in Darjeeling and other parts of West Bengal)

c) Nilgiri tea (grown in the Nilgiri hills of Tamil Nadu)

Size of the Industry:

Percentage in World Market:

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2.2Tea market overview

2.3Indian tea scenario

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2.4 Global tea scenario

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INDIA- SECOND LARGEST TEA PRODUCER IN THE WORLD

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Global Tea Market Production

China India Kenya Srilanka