Tea House Marketing Plan Essay
I.
Executive summary1. Business OpportunityIn order to build our own Tea House business, named C?m, which means Felling in English. Our company have entered into negotiations to purchase a café business, called Date Coffee, because of its great location in Duong Quang Ham Street, Cau Giay District with the highest number of workers and students which is supported by a large and growing local population. There are a limited number of tea shop within the market and with both Anh Quang and Mai Anh’s experience in catering services with having successfully operated and managed we will be able to build our name in the market.The competitive advantages of the business are:•Location•Quality and service•Knowledge and experience of the industry2. Product/Service OfferingThe operation of company is the C?m Tea House (CTH), which focus on drink from tea and deli foods. Business activities include purchasing, storing, preparing, selling and serving our products to our valued customers.
We expect to serve over 6,000 customers (‘dine in’ and ‘take away’) per month. CTH is open from 8:00am to 22:00pm Monday to Friday and from 8:00am until 23:00 on Saturday and Sunday. The shop comfortably seats 60 persons. The mission of the business is to create a trend in using tea among younger generation. And satisfy customers’ needs and wants for high quality drink, delicious nutritious meals, high fashion environment and excellent service. Moreover, being a place for seeking gifts, new experiences, and knowledge of tea.Our main point of differentiation from other tea shops and coffee shops in the areas is that we offer high-end quality of tea from England, with an England trained bartender who will be a quality adviser.
The high quality tea will target staffs and students who enjoy good drink that simply offers good value for money.3. Marketing PlanThe objectives of the company are to:Maintain market share through the change of ownership then grow market share up. Generate a before tax net margin of 20%.The business will achieve these objectives by:Retaining two key staff members of Date Coffee to maintain continuity of customer relationships during the changeover Upgrading signage and shop to be more visually appealingMaintaining the existing price levels and controlling costsUndertaking more aggressive marketing and promotion.4.
Management TeamMs. Mai Anh, who was the founder and manager of HAT Snack Food which has provided her knowledge and skills in management and solving problems in restaurant and Tea/Café Store, also other suppliers as well. Mr. Anh Quang who has much experience in promotion and marketing through his real projects and part-time jobs. Especially, he had had 5 months to work and promote for the Lens Café on QuanThanh street, thus he can know exactly what to do and what to differentiate this Tea’s house to other Competitors in customer’s mindset Ms. Bao Ngoc who now studying Human resources Major outside the University besides Marketing .
Her mother works as HR Executive in ThangLoi Stock Company so she can ask for adviser about HR from her mother. Ms. Quynh Ngoc and Ms. Thanh Thuy, who have highest score in Finance subject, they are very careful and detail-oriented person, so they can manage the flow of cash and revenue of the store effectively. 5. Financial PlanOur projected performance is summarised below:Turnover: Year 1 9.480.
000.000VN? Year 2 10428000000VN? Year 311470800000VN? Gross margin 8352000000VN? (88%)Net profit (before tax) of 5555100000VN? in the first year, growing to 6196710000VN?in the second year of operation, then growing up to 6902481000VN? in the third year. The business is cash flow positive from the first month of operation Break-Even is estimated at a monthly sales level of 62,631,530 ?II.
The company1. Company description1.1 Vision statementNew style in tea. Create new trend in using tea among younger generation. 1.
2 Mission statementProvide the finest teas and foods in a relaxed and fun atmosphere. Create a visually store which attractive to customers, being a destination store for younger. A place for seeking gifts, new experiences, and knowledge of tea. 1.3 ObjectivesAchieve minimum of 100 regular customer in the first 6-month of operation Achieve VND 60 million/ monthMaintain an average gross margin of 50%Achieve about 100 customer/ day1.4 Company backgroundCTH is a start-up business on D??ng Qu?ng Hàm street, C?u Gi?y, Hà N?i. Our primary focus is the England tea style, which 20 kinds of tea will be offered, including black teas, green teas, herbal teas, and flavored teas (black or green tea plus other flavors). We serve our teas hot and iced, and sell loose teas by the box.
In addition, we sell deli and gift baskets, and offer daily pastries to accompany tea orders. Since we are not intending to compete with coffee giants such as Twitter Bean, Highland Coffee we brew only two kind of coffee daily, as a courtesy to our customers.2. Business opportunityPurchase of an established coffee within the Cau Giay district that is part of a large, well developed place community which is still growing,incorporating a regional shopping centre, residential, and commercial development. The business is ideally located for a Tea House, being situated on the main street with a high passing trade due to its close proximity to various building offices and a number of well known university. There are a limited number of Tea Shop within the lace and CTH has the best location, with the highest number of passing customers. CTH primary customers are student and staff within the district who needed a place for working, studing or business meeting as well as dating. Or take a break from their work and enjoy drink as well as for people wanting a quick and healthy meal that provide a good alternative to the fast food options.
The success of the business is based on its excellent location, quality of management and staff, different style of drink and meals and superior service. 3. Product, service description3.1 ProductOur full teahouse experience is complemented by an assortment of teas, tea accessories and foods.20 kinds of teasOur tea-tenders will know the best brewing temperature and time for each of the 20 kinds of teas we offer.
All will come from Twinning Tea, the 300-year-old tea company from England. These include straight black teas, and our own creations, like “Alice in Wonderland,” a Rose/Vanilla/Jasmine blend. All of these teas are available hot, iced, or loose for customers to take home and brew at their leisure. CoffeeAs a teahouse, we focus on tea. Since we are not intending to compete with coffee giants such as Highland Coffee, The coffee bean and tealeaf, and other take away coffee such as Passio, Ink Coffee we brew only two kind of coffee daily ( black and brown coffee), to satisfy those accompanying true tea lovers on their visits to our store.
PastriesTo complement our beverages, we will offer a small selection of freshly-baked pastries from HAT Snack Food. Our alliance with this restaurant allows us to offer high-quality baked goods at a reasonable price, in exchange for co-advertising. These items are not intended as a staple of our overallprofit structure, but help us to create the whole-service feeling of a real teahouse, without investing in cooks, bakers, or kitchen equipment. FoodsC?m Teahouse also offers a breakfast and lunch menu. Breakfast will include such items as omelettes, eggs Benedict, toast, plus coffee and tea.
The lunch menu will consist of various cold cut sandwiches (turkey, ham, roast beef, etc.), beef steak plus prepared Caesar salad.Tea paraphernaliaTea paraphernalia includes specialty teapots, tea balls, decorative tea tins, “art of tea” books, and various small, seasonal, non-food, tea-related items.Gift BasketsWe offer a selection of pre-made gift baskets, and will work with customers to create custom baskets for any occasion specialy in Tet holiday3.2 ServiceCTH provide shipping service for tea box ordering, beside that we have Tarot fortune teller service on Tuesday and Thursday, and live music on weekend.AtmosphereC?m Teahouse, a taste of vintage will be in the D??ng Qu?ng Hàm parked out front.
The entire inside decor will be that of the Vintage mixture Minimize style. The main style of music are Jazz and Chill out music. Everything one looks at or touches evokes feelings of the classic and fashion. Style of ServiceService is smart and quick with friendly and kindness performance. The management and servers will handle every detail to make the customer’s special evening even more special! All this and our great atmosphere will make customers want to come back again and again!III. The market1. Market and customerTo define the target customer, we have decided to follow 3 criteria below: Geographic criteria:We are going to consider customers who living, studying and working in Hanoi, especially customers living, studying and working in which nearby Duong Quang Ham Street.
Demographic criteriaFirstly, we focus on the income of customer and payments level that they are willing to pay. After investigating our business, we decided to target our customer’s income and payments level at middle level and higher. At this level, our customers can experience our service with the best satisfaction. Secondly, we also consider customer with their awareness. They has to aware at certain level to “feel” the value what our service bring to them.
Because our space and drink are all fresh but frugal and “ethereal”, people has to feel it to love it.Psychology and life-style criteria:We target at customers whom like the peace and relaxation. These customers will like our space with gentle light and melodious music. Customers who need a private space are also completely suitable to our target: students with hobbit study while “coffee-ing”; friends and chatting time;etc.2.
Competition and competitive advantage2.1 Our competitors:It is evidently that all refreshments store in Hanoi area are our competitors. Besides, we have three main competitors:The refreshments stores which have same style with C?m! such as C?ng coffee store, Zone 9 coffee store,etc. These stores have also chosen style same as Vintage of us, and two coffee stores I referring above attract many people. The refreshments stores in Duong Quang Ham Street includes “Cafe Sinht?Gi?iKhát”, “Cafe Billiards”, “S?achuad?o” and “ChèSàiGòn”.
The tea stores which with same kind of products with us are strong competitors of “C?m!”. There are many asia tea in Hanoi, especially Nguyen Hong Street with somes stores like “Trà ??o quán”, “T?nh Tâm Quán”,etc. These stores often crowded in the evening.2.2 Our competitive advantages:Our first and main competitive advantage that we possess is our location.
Duong Quang Ham belonged to populous area in Cau Giay District. Our second competitive advantage is follwing the style of England tea. It is quite different from other tea in Vietnam, and it is still strange to Vietnamese people. Taste of this tea is “easy” for everyone. Customers will curious about it and after the first time they try, they will love it.
Our third competitive advantage is the industry experience and expertise of owners running successful café and restaurant businesses in the past Our fourth competitive advantage is special service called Tarot Reader Show, where customer could enjoy tea then find out their fortune through tarot card or even their tea residue.3.Marketing strategy3.1 Overall strategyThere are 2 main objectivesTo achieve sales Year 1 9.480.000.000VN? Year 2 10428000000VN? To position the C?mTea House as the one who like vintage style come and feel the peaceful space.
To be reviewed in 6 months.Our marketing strategy will first create customer awareness regarding our services offered, develop that customer base, and work toward building customer loyalty and referrals. The marketing strategy will be based on communicating C?m Tea House’s value to the targeted segments. The message C?mTea House will seek to communicate is that C?m Tea House is the place the classic and fashion felling.
This message will be communicated through a variety of methods:3.2 Marketing Mix3.2.1 Product and PriceThe teahouse will provide high quality drink, delicious nutritious meals, high fashion environment and excellent service. Moreover, being a place for seeking gifts, new experiences, and knowledge of tea and entertain with fortune teller. Pricing will reflect the value of our products and services.
Its unique as shown in table below:Value PropositionsFeaturesBenefitsImportance (1-10)Unique (Y/N)EnvinronmentRelax, Meeting8NTeaEnjoyment, Social connect8YBeveragesRefresh, Relax5NFresh mealsHealth, Well being8YCakes ; dessertsComplement drink/meal5NFortune tellerRefresh, relax7YGift6Y3.2.2 PromotionWord – of – mouthWord of mouth advertising is very important and the best advertising we will be providing is the quality of our products and service. Web Press Releases (PR)One place that will be used for advertisements is the online media.
The channel we will book topic to promote is that: online newspaper (kenh14.vn, ione.express.net, etc); blogger – influencer who has large followers (hot girls: Chi Pu, QuynhAnhShyn, Ha Kin, etc). These will be the main source of advertisements because the demographics of their readership are fairly similar to C?mTea House’s demographics.Social NetworksWe will build a fan page in Facebook then improve it to gain positive image and expand our image into community.
This fan page need to be placed in front of potential visitors by clarifying target audiences when creating advert and sponsored stories of Facebook. Besides focus on building good content for fanpage to express C?m Tea House value, we also brings out many events, contests, etc to attract potential customer’s attention and viral our image to community.3.2.3 Sales planIn conjunction with HAT SNACK FOOD we will be undertaking a range of promotions when we take over the cafe promoting the new ownership of the café. These promotions will include offers of discounted meals and tea, but they will only run for two weeks. We estimate that this will be sufficient time to allow a smooth transition to ourselves as new owners.
Our teas vary widely in taste, aroma, smokiness, and pungency. Every week we will offer a different selection of our teas as a “tasting:” 4 to 5 small cups of different teas, labeled and described, with appropriate pastry accompaniments. These plates will allow customers to try new kinds of tea without committing to a full pot. These tastings will be priced at 1 1/2 times the price of a regular pot.All customer come to C?m TeaHouse will have a most peaceful and comfortable space to work, to learn, to converse together.
They also will be treated graciously and with respect.In addition, We will develop and offer a loyalty card scheme to increase repeat business.3.2.
4 Research and development or growth planC?m TeaHouse has numerous opportunities for growth and expansion. The products of C?m TeaHouse are differentiated and quite newfangled compare with products of other tea or coffee shop. C?m Tea House expects to create a new trend in community. Nowadays, when people face on many social problems and stress, C?m Tea House will be the best choice for them to refresh themselves and avoid stressful.IV. The organization1. Legal and organizational structuresWhen starting a business, we have to choose a Legal and Organization Structure. However, when starting a value-added business such as our Tea’s house, there is usually more than one owner and we have exact 6 owners in this Tea’s house.
Thus, we decided to run this Tea’s house under Partnership Structure.2. Key personnel5 owners of Tea’s house are members of Management Team and work part-time for this Store3. Related device providersTwinnings Tea, the 300-year-old tea company from England – the supplier for us in teas (that mentioned in the 2nd part). In 1706 Twinings started selling fine teas in England. Today they sell more than 200 teas in more than 100 countries throughout the world.
Now they celebrate over 300 years of passion and commitment to assuring the customers the world’s finest tea experience. Harpo Mart to provide us enough safe materials and fresh ingredients in making foods and drinks. HAT SNACK FOOD , very well-knownrecently because of there tasty and foreign style foood will provide foods and cakes.V. The financials1. Start-up budgetThe start-up budget is estimated at184.
100.000VN? broken up into ‘one off’ costs of 107.000.
000VN?and monthly expenses in advance of 77.100.000VN?. Included in the ‘one off’ costs is equipment and fitout of 60.
000.000VN?. The start-up budget is shown in Figure 3 below.START UP BUDGETMonthly expenseProjected Monthy expenseCash needed to start% of TotalAdministrative/Wages30000320008.7%Rent/lease16000160004.3%Advertising & Promotuon400050001.
4%Delivery expense150015000.4%Supplies (stock-in-trade)10000100002.7%Telephone6006000.
2%Other utilities (gas, electric,etc)12000150004.1%Insurance000.0%Consumables200020000.5%Interests000.0%Legal and Professional cost100010000.
3%Miscellaneous000.0%Subtotal771008310022.5%One Off’ CostAcquisition17000046.1%Fixtures and Equipment5000013.5%Fitout100002.
7%Installation charges00.0%Starting Inventory150004.1%Deposits for utilities15000.4%Legal and Professional fee20000.5%Registrations, licences and permits15000.4%Advertising and Promotion for opening20000.
5%Cash300008.1%Other100002.7%Subtotal29200079.
1%Other include goodwill, rent in advance ; insurance00.0%0.0%TOTAL ESTIMATED START-UP CAPITAL369100100.
0%2. Annual Profit BudgetMonthly Profit BudgetGross Margin is calculated at 70.2% for Month 1 and 68.12% for Month 6. The business is quite profitable and margins are sustainable over the medium to longer term.3. Cash Flow ForecastYear 0Year 1Year 2Year 3Net sale94800000001042800000011470800000Cost of Goods Sold112800000011280000001128000000Gross Profit8352000000930000000010342800000Gross Margin88.10%89.
18%90.17%Operating Exprense92520000010177200001119492000Depreciation200000002000000020000000OtherTotal Op.Expenses94520000010377200001139492000EBIT740680000082622800009203308000Interest Expense000EBT000Taxes185170000020655700002300827000Net Income555510000061967100006902481000Net profit margin59%59%60%Start-up Budget-369100000Net cash flow557510000062167100006922481000NPV10748844015NPV = 10748844015; 0 =; Accepted project4. Break-Even AnalysisBreak even AnalysisFixed costVariable costsProduct costsAverage Cost of Product15,667 ?Monthly Selling ExpenseSales salaries ; commission24500000Advertising ; Promotion4000000Miscellaneous selling expenseMonthly General ExpenseOffice salaries5500000Supplies10000000Miscellaneous general expenseTotals44,000,000 ?15,667 ?Average Selling price per unit52,666 ?ResultsContribution margin per unit36,999 ?Monthly unit sales at break-even point1189Monthly sales dollars at break-even point62,631,530 ?5. Financial AnalysisOur projected performance is summarised below:Turnover: Year 1 9.480.
000.000VN? Year 2 10428000000VN? Year 3 11470800000VN? Gross margin 8352000000VN? (88%)Net profit (before tax) of 5555100000VN? in the first year, growing to6196710000VN?in the second year of operation, then growing up to 6902481000VN? in the third year. The business is cash flow positive from the first month of operation Break-Even is estimated at a monthly sales level of 62,631,530 ? V. Apendix: Date Coffee InformationAddress: Number 44, Duong Quang Ham Street, CauGiay District, Hanoi. Mobile Number: 0965 126 369 or 0906 656 567Facebook: https://www.facebook.
com/datingcafe.vnWebsite: http://datingcafe.vn/Dating Café published information of cession on muaban.net on June 8th, 2013. Cession clause includes: brand copyright, website, fanpage, youtube, logo, business area 200m2 ( front area: 100m2, 2 floors), all interior equipment: Television, furniture, refrigerator, all kitchen equipment, etc. Cession price: 170 million VND.Rent Price: 16 million VND per month.
( time of rent: 4 years remain )VI. Reference.1. Website: http://www.bplans.com/tea_room_business_plan/products_and_services_fc.php#.UlbazFA5kap 2.
Website: http://www.bplans.com/italian_renaissance_theme_restaurant_business_plan/market_analysis_summary_fc.php#.
Ulbaw1A5kap 3. Website: http://careerbuilder.vn/en/cam-nang/phan-nhom-khach-hang.35A4F01F.
html 4. Book: “Entrepreneurial Small Business- Third edition”, published by Mc Graw-Hill/Irwin.
