Store Concept India is 2nd largest producer of tea

Indians love tea.

More than 5m small tea stalls

Our shop is a 24*7 Tea shop which will serve the Indian middle class.

Provide Books , table games and on demand karaoke.

Retail StrategyThe Main aim of Infinitea is to serve the tea lovers with lots of different varieties of tea at a place which is safe and comfortable yet has the classic Indian ambience. A place where they can pass their free time, do there official work out of the office and at the same time enjoy their favourite songs. Where they can have real Darjeeling/Assam tea very near to them.

Growth in India

The key drivers for Tea shop can therefore be summarized as follows: • Increased spending ability and rising aspirations • Upward trends in Tea consumption • More % of young population among the total population • Changing taste preferences leading to restaurants • Ease of Availability/Reach

Location Planning We are located in Mumbai :-

Opera House, Charni Road

This prime location gives access to various groups of people and target different audiences both the youth as well as the working professionals

Store Design Layout

Store Design Layout On Ground floor

1. Entrance 2. Normal serving tables 3. Special tables dedicated to states. : These will be separate

compartments, with the interiors representing the culture of the particular state. It is so, that the customer can have an experience of the particular state.

4. There will be a book shelf besides counter. : This book shelf will contain all latest love, Fantasy, and related novels. NEWS papers and other books

5. Kitchen will be on the ground floor to prepare all the orders. 6. The stairs will be on the left side of the entrance, so the

customers willing to go on the first floor can co directly

On the first floor1. Tables for groups

2. Smoking zone

3. And most importantly a customer wall- where they can show their talent, views and anything what they want to share.

4. And a karaoke where people can enjoy their tea with guitar and music. This is an another activity for engaging customer.

How it worksCustomers enters

the shop & occupies their table

Order placed through on table i-Pads with inbuilt

menu

Order received at counter forwarded

to kitchen

While the order is processed, customer can read books, play

table games, etc.

Order Ready! Notification

received on Table.

Collect order and Pay bill

Operational PlanSourcing : Daily procurement of Milk and dairy products and vegetables

Twice a week procurement of spices and other general food items

Special Darjeeling tea will be sourced from Darjeeling via railways in the second phase

Stocking : Most the dairy products & needs to be stored in Refrigerator and Deep Freezer A wooden wardrobe will be required for proper Placement of Crockery items

Operational PlanOrder Preparation :

Orders received at counter will be forwarded to kitchen by Counter person

Orders are made by using IPads on all tables Modern cooking equipment for efficient cooking

Maintenance :

This includes all types of normal operations of Restaurant apart from specific operations mentioned above. Regular Crockery updating, IT systems, Library, Kitchen Maintenance

Human Resource Planning Human resources are the most expensive and most important of all the resources. Proper planning is to extract most out & make the business profitable. Below are the different departments and their responsibilities and the number of person required in each department.

Restaurant Manager

House Keeping

Tech. Department Logistics Kitchen

Human Resource PlanningResponsibilities & size of Departments Housekeeping:

Housekeeping personnel will be responsible for the cleanliness in all areas of the restaurant. Cleaning tables once the customer left the restaurant, cleaning of toilets, smoking area, cleaning of dishes, utensils etc. They will also assist logistics person for daily logistics. And other functions like serving & assisting customers.

Housekeeping Department will be led by Restaurant manager and will consist of 7 helpers.

Technical Department:

Technical department is further divided into two sub departments Marketing & IT department.

IT department will consist of only 1 IT person who will be responsible for the proper working of IPads on the tables, Computer systems, Karaoke, Wi-Fi and other IT systems in the store.

Marketing will consist of One marketing manager who will be responsible for designing different campaigns, publishing ads in the NEWS papers & on radio, Organizing time to time events for engaging audiences, Managing in store customer wall, and most importantly he will be responsible for Customer relationship Management.

IT and Marketing together will also be responsible for managing online presence of Infinitea. i.e. managing all the social media pages of Infinitea, writing blogs and managing Website of Infinitea!

Logistics: There will be 1 person in this department who will be responsible for bringing stock for all the departments.

He will be assisted by one of the helpers of housekeeping dept. he will be responsible for the shopping of fruits, vegetables, bakery, grocery and other needs of the restaurant. He will be responsible for all the work outside the restaurant & report directly to the Restaurant Manager.

Kitchen Staff : Kitchen will consist of a Head chef, two assistant chefs & 2 assistant helpers specific to kitchen only. Head chef, One assistant chef & One assistant helper will work in day shift & the other assistant chef & Helper will work at night sift.

Assistant chefs will be responsible for preparing all the dishes and assisting the head chef. They will be responsible for maintaining the inventory of raw materials in the kitchen and store room. They will report to Head chef.

Assistant helpers as the name suggests will assist chefs in their work. Cutting vegetables, preparing dishes etc.

In all there will be 16 employees including the manager in the restaurant.

Marketing Strategy Infinitea is a youthful brand, and so all marketing should be focused on our target markets. Below is the explanation of all the marketing tactics & strategies to be followed. We should have clearly defined segments and the targeted audiences

ALL TEA LOVERSStudents Working Professional

Teens Youth Cools MaturesAge 15-18 18-24 24-40 40+Sex M/F M/F M/F M/F

Income Low Low/Med Med/High Med/HighLifestyle Study Oriented/

Highly OutgoingStudy Oriented/ Highly Outgoing

Work load/ Med. Outgoing

Work load/ Less Outgoing

Avg. No. of Tea cups / day

2-3 3-4 3-4 4+

Segment Attractiveness

Med High High Low

Price Sensitivity High High Low Med

Marketing Strategy

A. Students :

Teens : These are young school going students. There lifestyle is oriented highly towards studies, have low income and they like to go out and enjoy with friends. Highly price sensitive. They actually look for the places which costs them less and can serve most to them.

Youth : These are young college going students. A major part of this segment stays in hostels. Highly studies oriented. Like to party & hangout as couples and groups. Have low to medium income. They are active 24*7. So they are ideal targets for XXXX. Their sensitivity towards price is Not very high But also not very low.

B. Working Professionals :

Cools : They are heavily work oriented individuals. Have a high disposable income. Like to enjoy most and are readily outgoing. Very less sensitive towards price. As Infimitea is located in area with more than 20 offices in a 3 K.M. radius,

Highly accessible to them. They can come before the office hours, During breaks and after office hours. They are one of the major target market for usMatures: They are working professionals of more than 40 years of age. Mostly married and have many responsibilities. Are less out going.

Retail Mix Merchandise mix

XXXX will have more than 50 different varieties of Tea divided broadly into two categories.

Tea

Desi Tea Videsi Tea• Plain tea • Clove Tea • Cardamom Tea • Ginger tea • Masala tea • Tulsi tea • Pepper tea • Customized tea • Coal special tea • Strong/Light tea • Etc

• Chinese tea • American tea • British tea • Malaysian tea • Scientific tea • Green Tea • Black tea • Lemon tea • Ice tea • Tea Latte • Etc.

Retail Mix Besides tea, we will also have Sandwiches, toasts, Rolls and the traditional indian dry snacks like Mathri, Pinni, Laddus, Biscuits, Sev, Chakli, Naan khatai, khakra, thepla & other regional tea time snacks.

Toasts, S/Ws

• Butter Toasts • Cheese Toasts • Veg cheese Sandwich •Oregano sandwich

Rolls

• Masala rolls •Paneer tadka roll • Chinese roll • Malai Roll

Desi Snacks

• Kachori/Samosa • Mathri/Pinni • Khakra/thepla • Nan khattai • Bhel/ Garlic buns

Total Product ConceptAugmented Product : Safety, Comfort, Karaoke &

free reading novels

Expected product: On time service, Quality, ambience & Trust

Actual Product: Tea & Snacks

Core Service : Experience

Pricing & Profitability Pricing the merchandise is a very critical factor. It cannot be priced

high as we are a low budget segment player. We cannot price it low as we are providing so many facilities which bears high cost.

When we see our competitors, their price ranges From INR 10/cup (200ml) at local gumtees to INR 150 in nearby 3 star hotels. Similar price range for other categories, ranging for INR 25 to INR 500.

We will provide a mix of both, but slightly towards the lower side. Our tea prices will range from INR 50/ Cup to INR 150/ Cup (220ml) . Below is the broad pricing for different categories & also the gross profit from each category (Gross Profit = Selling price – Cost of sales, this includes all raw materials but no other expenses)

Pricing & ProfitabilityCategories Price Range Gross profit margin

Tea 50 to 150 50 to 70%

Toasts & Sandwiches 70 to 200 40-65%

Rolls 50 to 150 30-50%

Dry Indian Snacks 45 to 100 50%

Other Snacks Upto 150 Variable

Wi-Fi Free upto 1hr.

Promotion MixAs we have a specific target audiences, all our promotional activities should be targeted to them.

1. Sales promotion

2. Direct Marketing

3. Media Advertising

4. Internet Advertising

5. Social media marketing

6. In Store Promotions

7. Loyalty program

FinancesRevenue Streams Cost Centres

Food Sales

Advertising Income

Fixed : Salaries

MaintenancePromotions

Variable : Raw Materials

Logistics

FinancesFixed Costs

a. SalariesPayroll

Department Role No. of personnel required

Total/year Total/month

Kitchen

Head Chef 1 3,60,000 30,000

Asst. Chef 2 5,28,000 44,000

Helper 2 2,40,000 20,000

Housekeep Helper 7 7,56,000 63,000

Marketing Jnr. Manager 1 1,80,000 15,000

IT Manager 1 2,16,000 18,000

Logistics Jnr. Manager 1 1,20,000 10,000

Rest. Manager Manager 1 3,84,000 32,000

Total 16 27,84,000 2,32,000

Financesb. Selling, general & admin expenses

S, G and A expenses (In INR)Particulars Monthly Cost Yearly Cost

Electricity, Water, etc 15,000 180,000

Internet 5,000 60,000

Housekeeping 1,500 18,000

Misc. 5,000 60,000

Marketing 5,000 60,000

Total 31,500 3,78,000

S, G & A Expenses Salaries Total fixed cost (monthly)

31,500 2,32,000 2,63,500

c. Setup cost (one time) FixedCategory Particulars Units Cost/unit Total

FurnitureTable set 20 8,000 1,60,000

Decoration Various Various 5,00,000

Kitchen Equips

Gas Burners 2 8,000 16,000Microwave 1 15,000 15,000

Deep Freezer 1 90,000 90,000Refrigerator 1 50,000 50,000

Induction cooker 2 3,000 6,000Utensils Various Various 10,000Crockery Various Various 20,000

IT SystemsiPads 20 20,000 4,00,000

Computer 1 15,000 15,000Software Various Various 15,000

Misc. 2,00,000

Total 14,97,000

Market Sizing & Opportunity

Population of Place 13,90,000

Population in the age group of 15-40 years 6,67,200

Target segment size in Primary trade area 6,000

Estimated number of order per day 175

Estimated average order size 200

Revenue per month (175x30x185) 10,50,000

Gross Profit / month (40%) 4,20,000

Operating Cost (In above table) Fixed/Month 2,63,500

Contribution Margin/month 1,56,500

Breakeven Analysis Breakeven period (month) is (Total fixed cost)/Contribution towards Fixed cost each month

= 1,497,000 / 100,000

= 14.97

= 15 months

Total months for breakeven is 15 months.

SWOC ANALYSIS STRENGTHS

Specializing in the most consumed beverage.

An all-round pleasant experience

Reasonable prices

Technology oriented system

OPPORTUNITIES

1. Financially not so sound

2. Lack of experienced personnel

WEAKNESSES

1. There is a huge untapped market and most importantly people are in immediate need of such kind of shop.

2. Franchising

3. Also our business provides an opportunity to develop a Private Label Tea to be introduced in the later phase once the brand is established. The availability of farm in Darjeeling presents great backend support for the forward integration.

The key challenges for the Tea shop are :

1. Constantly changing laws2. Licensing3. Bringing fresh tea leaves from Darjeeling on

regular intervals4. Availability of labour5. Logistical failures6. Coffee is the new trend , substituting to tea CCD, Starbucks

Challenges

THANK-YOU