New retail store Concept, tea store chain By Manpreet singh Digital

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Retail and most importantly food retail is the future of india. Are you planning to open a retail chain of tea shops? this documents contain all the concepts of retail management which are applicable in food retailling. this is a complete business plan for opening mordern tea store chain By manpreet singh digital for PP Visit

Transcript of New retail store Concept, tea store chain By Manpreet singh Digital

  • m U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Heena Jain MBA3/1325 Shiveen Jindal MBA3/13xx Chayya Singh MBA3/13xx Manpreet MBA3/1329 2014 Retail Management New Low-Budget retail store Group 9 T-PoG
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 1 Table of Contents Sr No. Content Page No. 1 Executive Summary 2 2 Store Concept 2 3 Retail strategy statement 4 4 Why this Business? 4 5 Industry Dynamics 5 6 Store Design & Layout 8 7 Operational Plan 10 7a Sourcing 11 7b Stocking 12 7c Order Preparation 14 7d Maintenance 15 8 Human Resource Planning 17 9 Business model Canvas 19 10 Marketing Strategy (Segmentation, Targeting, Positioning) 21,22,23 11 Retail Mix 24 11a Merchandise Mix 24 11b Pricing & profitability 26 11c Location planning, trading area 26-27 11d Promotion Mix 29 12 Finances 30-33
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 2 Executive Summary T-PoG is the first of its kind, innovative Tea shop which targets the youth & tea lovers with over 100 kinds of tea, Classical Indian ambience, safe and cool place to hang out, a cool book store & everything what Indian youth can think off. It will offer different kinds of teas & various tea time snacks. It will provide a new kind of experience of having tea. Indian youth love tea and leaving those road side small tea shops, there is no place to enjoy tea. T-PoG will fill that gap & will provide an overall experience of having Tea with its differentiated offerings. Karaoke, Books, games to name a few. Most importantly it will be a 24*7 open, low budget shop. The report contains the business plan for starting and operating the shop. Its Segmentation, Target market, positioning, Marketing & retail mix. The report also explains the store layout, Consumer journey, and various promotional events for the retail shop. It finally concludes with an estimated 6 months Finances for the operation of the store. The store with an average order of Rs.50/person, is estimated to achieve its breakeven in . Years, after which it is profitable with a 50% Gross profit margin on a minimum of the above order size. Store Concept India is the second largest producer of tea and one of the largest consumers too. Indians, Particularly Indian youth love tea. Tea is one thing that refreshes them. There are more than 5 million small tea shops across India. There are high end coffee shops like caf coffee day, Star bucks on one hand and the local tea shops on the other. But no shops to serve the middle class. Middle class form a majority of Indian population. Our T-PoG is a 24*7 Tea shop which will serve the Indian middle class. College students dont feel good to have tea at local stalls, also they offer low variety. They even cannot afford to visit high end cafes. At T-PoG menu ranges from Rs. 5 to Rs.50. Store will provide an Indian ambience, on demand karaoke, book store and table games like snake & ladders, ludo etc. the core product of our shop is the experience of having tea. It will have a self-service mode of serving. Each table will be equipped with ordering kiosk from which customer can place the order. Order will be received by the counter person who then forwards it to the kitchen. Before 5 minutes of the completion of order, customer will receive notification on the table kiosk that their order is
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 3 Ready and they can collect the order from counter and pay the bill. Table games and books to read will be available free of cost, while customers have to pay if they want to buy the books. In case the book demanded by customer is unavailable, we will make it available within 4 days. Some of the critical success factor for this kind of food tea store is the Inner environment of store and behavior of staff with the customer. All the necessary training will be given to staff time to time to take care of the same. To increase the pocket size of the customer in this type of low budget tea shop, it is required that customer spend more and more time at the shop, That is the reason to provide Books , table games and on demand karaoke. Also there will be special state wise tables (more explained in store layout) to enhance the experience of the customers and engage them more and more. Customer walls etc. will add value too. How it Works Customers enters the Shop & occupies their Table Order Placed through on Table I-Pads with in built Menu Order Received at counter Forwarded to kitchen 1 Order Received Order ready!! Notification received On table While the order is processed, Customers can read books From the large library, enjoy Free WiFi at iPads on table, & Can also request songs to play Collect Order & Pay the Bill Order ready!! Notification received On table
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 4 Retail Strategy Why T-PoG? India is one of the largest consumers of tea. Annual consumption of tea in 2013 in India was close to 900 million Kgs. On an average every Indian has tea 2 cups a day. When we talk of population between 15 to 40 years, average consumption is 4 cups a day. India has 190.7 million households which fall under Medium Income group. 46% of Indian population falls between 15 to 45 years. There are high end coffee bars like Caf coffee day, Starbucks etc. on one hand, while low end local Tea stalls on the other hand. There are no Tea/Coffee stores which are targeted to especially to middle class, which in fact is the biggest by population. Indians love tea. Professionals during office breaks, Students while doing the college works, late night works often search for this kind of places. Girls dont feel good having Tea on local tea stalls. They cannot afford to go to high end coffee shops daily. So there is a huge gap which T-PoG has aimed to fill. Anand Nagar, Khandwa, The place where T-PoG is expect open has more than 30 colleges (with hostels) and offices with an average population of 200. There are no Good Tea/coffee shops or restaurants in the 10 km radius except some local tea stalls. People have high disposable income and consumption capability in the area. So T-PoG will be the ideal shop for the people of that area. T-PoG aims to provide all the facilities provided by high end coffee shops, at low prices to serve the masses. Below is the explanation of how T-PoG will provide value to its target Market. The Main aim of T-PoGis 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 favorite songs. Where they can have real Darjeeling/Assam tea very near to them
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 5 Industry Dynamics With the increasing disposable income and growing middle class across India, People now are more outgoing when compare to anytime in the history. Indians love to eat and drink out. With the largest demographic in the world, among the total population of 1.25 billion in Indian, 46% falls in the age group 18-44. And the result of this, the restaurant industry in India, which is mainly driven by the young population aged 15 to 44 years has registered revenues of INR 75,000 crores in FY'2013. The industry has witnessed a sound growth which has been fueled by the advent of large number of national as well as international chains in the organized market. Many international chains such as the Mc Donald's, KFC, Dominos and Pizza Hut largely have dominated the organized restaurant market in the country over the years. Free WiFi Books Table Games KaraokeRich Menu IPads Value Proposition
  • Retail Management 2014 U n i v e r s a l B u s i n e s s S c h o o l , K a r j a t Page 6 The overall restaurant market has grown at a CAGR of 6.6% from FY'2008 to FY'2013 and has witnessed an increase in revenues to INR 75,000 crores in FY'2013 from INR 50,000 crores in FY'2007. The changing lifestyles with the increasing nuclear families and a rise in the urbanization in India over the past years have also supported the growth of the restaurant market in India. Additionally, the change in customer taste has also played a major role. Due to the growing exposure to the international cultures and lifestyles, the Indian population has started developing their tastes and is reaching out to restaurants trying new dishes. This change in the taste preference of the people in India has motivated many international and Indian players to expand their reach in the Indian restaurant market. The Indian organized restaurant chain market has witnessed an upward trend and has grown at a CAGR of 19.1% from FY'2008 to FY'2013 where it has witnessed revenues of INR 20,000 crores in FY'2013 growing from INR 7,000 crores in FY'2007. The organized chain market in India includes a large number of players in the QSR, full service, PBCL and the food court segments. The market has significantly expanded primarily owing to the high demand among the large Indian population over the years. The Quick Service Restaurants (QSR) and the casual dining restaurants account for a major share of the revenues of the organized chain market in India. The QSR's and the casual dining restaurants together contributed a market share of 80.6% in FY'2013 to the organiz