You can’t find a family where at-least one member of the family doesn’t drink tea. The history of tea extends so far into the past that Its very origins are shrouded by legend. It Is said that Emperor Sheen Nuns, who ruled China in 2700 BC, used to enjoy relaxing In his garden with a cup of hot water. It was during one of these respites that a tea leaf happened to float down from a nearby bush, and land directly In the Emperor’s cup.
The new drink quickly became the Emperor’s favorite, and a taste for tea quickly spread throughout the aristocracy, ND It wasn’t long before tea was the favored drink throughout all of China. History of Bangladesh tea Industry dates back to around 1823 when tea started to be grown for commercial purposes in the Assam forests. Tea plantation In Bengal developed concurrently with that in the northeastern part of India during the early nineteenth century. In 1 855, the Assam indigenous tea plant was established in Changing Hills of Sleet.
Near about the same time, wild tea was found among Kinshasa Juanita Hills. Around 1840, tea plantation started in Chitchatting. The first commercial tea plantation as established in 1857 in Multiracial in Sleet. At present, the total number of tea estates are 163 and the total number of tea factories are 114. The total garden area is 115,629. 76 ha. The tea is a huge source of revenue for the government of Bangladesh. Tea business is also a common business. But, Tea bars are not common. People can’t find a lot of variety of tea at the same place.
So, we are taking an initiative to do so. We hope this Tea business will introduce people to a lot of new, traditional and local brand & flavor. To complete this project we have used various Data Sources. . Management (1 12th Edition) – Heinz Heroic, Mark V Cannier, Harold Kenton. 2. Contemporary Business (1 lath Edition) – Boone & Kurt. 3. Internet 4. Becoming very popular and most consumed beverage after the water. It is the right time for doing business on tea or tea related products. Tea business is booming and it will be increase next couple of years.
As for demand of time it will be truly new and innovative to open a tea bar Just like a Coffee World. The new business that we want to start is “To serve the people different flavor of tea both foreign and local with a soft ouch of tech”. So to implement the new idea, nothing can be more interesting than setting up a tea bar. There is not any exclusive tea bar in Dacha city or in this country. Some restaurants, fast-food shops, bakeries, and confectioneries do serve tea, but only as an option to their existing menus.
Besides the tea served in these places doesn’t have much variety in taste and serving approach. Customers also don’t have many options to select from. Our plan is to set up a fashionable tea bar, which will provide the customers so many options that the customers will find it difficult to elect only a single option. The customers will get to taste from an unexplored array of foreign options as well as the opportunity to discover new tastes and flavors of the local tea. We will offer a full range of teas (hot and iced), as well as pastries for taking home or giving as gifts.
We will serve imported foreign tea as well as Bangladesh tea. We collect our principal raw materials through foreign tea suppliers and tea importers. We will train all of our personnel in the proper storage, brewing, and serving of each kind of tea. We plan to create a brand and extend our market all over Bangladesh and place franchise in Southeast Asia. We will start our operations from June 1st 2009. During this short span of time the Tea Cloud aims to be successful to position itself as a progressive tea shop in the country. Health benefits of tea will help our marketing and sales efforts.
We use a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. Tea Cloud provides its customers the ability to drive up and order from trained personnel. “Tea Cloud will provide only the highest quality, healthy products and services to goose leaf tea drinkers in an environment that is safe, comfortable and attractive and will encourage customers to make repeat visits. ” “To create a brand and attain leadership in the industry of tea in South Asian region by serving the people different flavor of tea with a soft touch of tech. -rear Green tea White tea Blend tea Herbal tea Iced tea Red tea Special tea To operate a successful tea bar in Dacha, To obtain a minimum of 200 regular customers in the first year of operation. Maintain an average gross margin of 35 percent. To produce a reasonable net profit by the end of the third year of operation. Develop a market by providing our target segment the unexplored tastes of different tea. Provide quality service to our valued customers. Obtain certain amount of market share of the total tea industry of Dacha City within the first three years.
Increase the market of tea by turning potential customers into actual customers. Create a brand and extend the market to Chitchatting, Sleet, Bogart and some selected cities by selling franchise within the first seven years. Introduce the brand to India, Pakistan, Nepal, Sir Lankan, and Maldives by 2020 through franchise. Introduce the band to Europe by 2025. Competitive advantage happens for a firm if the firm’s profitability is greater than the average profitability for all firms in its industry. To achieve a sustained competitive advantage, a firm has to maintain competitive advantage for a number of years.
In simple words, to be successful, firms have to do something well. We will have to serve the market for quite some years before we actually have the profit to expand our operations countrywide. This will be possible due to the competitive advantage we Competence: Quality Competitive pricing Specialization Environmental friendly image Customer service Product differentiation We are capitalizing on the quality of our product. There is no tea bar in the country which has the superior quality of imported tea products. We will also introduce the competitive pricing.
We are going to impose 3 price levels for our product. The pricing are as follows, Price of 25 take for local tea Price of 55 take for imported tea Price of 85 take for premium tea We are also specialized in the tea products in the industry. We will import various kinds of tea from the famous tea producing companies around the world to provide the best quality of teas to the customers. We are also going to deliver the environmental friendly image to our customers. The name and the physical establishment of our business will generate a calm and comfortable feeling to the customers.
Our products are environment friendly and we do not have any kind of equipments which will violate the environmental tranquility. Customer service is another big strength for our business. Our world class customer service is another thing that is making us different from our competitors. Also the differentiated products made us competitive in the market. Our tea products are different than the EAI products are available in the market. We are offering, Black tea These kinds of teas are currently not available in the market in Just one place. We are offering all these teas in our tea bar.
These differentiated products are one of the core competencies we have. Distinctive Competencies: These are our company’s specific strengths which will allow us to gain competitive advantage by differentiating our products and achieving lower costs than our rivals. It generally arises from resources and capabilities. Our company utilizes its resources and capabilities efficiently maintain distinctive competency over the existing competitors. Some of the distinctive competencies we have are: Cost advantages: We will invest initially in our equipment and marketing campaigns.
Since we are not products from abroad. Buying at a bulk from the international suppliers will reduce the importing cost a lot. So we are having cost advantage than our competitors. Social or Human factors: We will have a strong background and attachment to the society of Bangladesh. We will project our products as a result of the rich cultural heritage of Bangladesh. Cultural assimilation with the people is very important for any business. We have ultra support for our product as tea is very popular drink among the people.
About the internal organization, we will have employees who are skilled at a professional level. These staffs will also enhance our corporate image by promoting our safe and hygienic working environment. Hygienic products: Most of the people of our country fail to trust the food products readily due to the unhygienic manufacturing environments. Production process is very important factor when it comes to the beverage products. We will promote our hygienic production facilities for which people will trust our products. Brand image: With quality beverage products, we will gain trust among the people of the country.
This will create a brand image for the company, which will have positive image on the customers about our products. This type of resource will eventually leads to distinctive competency. This brand works as a valuable resource that creates strong demand for our products. Capabilities: We have the capability of coordinating our skills and also using our resources effectively and efficiently. We will establish a strong organizational structure, quality processes and solid control systems. These will enhance our capabilities Rutherford.
Competitive Advantage of a Business: These are the sources of competitive advantage of a Business: Efficiency: It is a measure of the quantity of inputs taken to produce a given output. Productivity leads to greater efficiency and lower costs. It can be of 2 types: Employee productivity and Capital productivity. We will reach full capacity of production as soon as we can create a strong supplier base. Gradually, we will extend our production line and introduce new beverage products. These activities will help us achieve higher efficiency through both employee and capital productivity.
Customer Responsiveness: To respond to customers means doing a better Job than competitors in identifying and satisfying customers’ need. Superior quality and innovation are integral to responsiveness could be customer response time, design, service, after-sales service and support. It differentiates a company and its products leading to brand loyalty and premium pricing. We will also respond to our customers’ needs. We will implement their suggestion in our business practices if we see that it may help us serve our customers better. If customers feel that their responses matter to us, they ill perceive our brand as their own.
This would enable us to create stronger brand loyalty and in future; we may be able to charge additional premium for our differentiated products. Quality: Superior quality is customer perception of greater value in a specific product’s attributes, for example form, features, performance, durability, reliability, style, design etc. Customers perceive higher value in quality products that are reliable and differentiated by attributes. The impact of quality on competitive advantage is that greater efficiency and lower unit costs are associated with reliable products.
We will enter the refreshment industry with a promise to serve the customers with higher quality at a competitive price. We will ensure that consumers feel comfortable and prefer our products to others due to our higher quality. People always look for differentiated products; with attributed value. If quality is our offer to them, we will provide it at any cost. Innovation: The act of creating new products or processes is innovation. Product innovation creates products that customers perceive as more valuable, increasing the company’s pricing options. Process innovation creates value by lowering production costs.
We also will come up with new ideas for consumption of our refreshment products, like the new ways to attract people with some new food items related to our differentiated tea products. Strengths: Have strong customer demand for our product: Tea is a very favorite drink now a day. All types of people now like tea and they drink tea everyday couple of time. So our products have strong customer demand all over the country. Different types of tea also attract our customer. Our offered products are differentiated: We said it before that we will provide customization availability. So, our customers get exactly what they want.
This is definitely one of our strengths. If we can give a better variety of product to our customers, we can get a much stronger market share products and services: Every company tries to produce good quality of product in order to gain market share, irrespective of their industry. But we try to give best quality of different which is imported foreign tea to our customer so that they can easily differentiate our product from rival’s product, as our company’s motto is customer satisfaction. Our service is also world class which is compared to any ranked restaurants. Weaknesses: Lack of brand awareness:
Since this is a new company so we have not any brand image yet. Our rivals have already brand image like Cofferdam, Cafe Mango etc. People will not interest to go a new tea shop instead of established brand. Big competitors like Cofferdam : Cofferdam is an established brand. It’s a world class brand. They have huge capital to invest. They have a good backup in financial sector. They are experienced in controlling this type of business. We have weakness in experiencing this business before. Cost of importing raw materials : Our most raw materials are imported. It will need heavy investment. We need to intact foreign supplier.
It takes more time and time is money. We also need to give tax for importing tea. Opportunities: Tea has a growing market demand : The most important opportunity for us is the growing demand. We are in an industry that has a growing demand. So from that perspective our opportunities are vast. These opportunities will earn us high recognition and profit if we can make use of them. Demand for tea is consistent and anticipated to grow – presently, locally there is no specialized tea shop. Attractive environment: Our interior design of the outlet will give the customers an intimate, cozy, enforceable feeling.
Customer will feel homely environment so that they will not irritated. It will increase the opportunity to increase our customer. Threats: Possible new entrants into the market: It’s a new and growing industry so there is a possibility to enter new company. Then our customers are scattered to those tea shops. Substitute of tea products like Coffee and Cold Drinks: When people are thirsty then they can take either cold drinks or coffee. So they are our competitors which can reduce our potential customers. Competition with the existing companies :
There are existing companies like Cofferdam, Cup coffee club which is a big threat for us. Company Lifestyle: We have Just started our business so we will be at embryonic stage. With passing time we are expecting to grow in terms of size as well as passing on to a growth stage. The local industry has some strong competitive firms. Though the competitors are not in the tea business, we are still considering them as our competitors because they are offering the close substitute products, such as Coffee. Recently the Cofferdam and the other coffee related bars are at the growth stage in the industry.
This is a very good position for us because we can overtake them very shortly if we can sustain our competitive advantage. There aren’t any exclusive tea bars in the city of Dacha. Some businesses like restaurants, fast-food shops, bakeries, and tea stalls do serve tea, but only as an alternative to their existing business. They do not have any expertise on the tea segment. In the menu they only include local tea. They do not serve imported tea nor do they serve custom made tea. They use only local brands found in the local market. They do also lack up-to-date serving techniques and approaches.
There is nothing unique or interesting in their service approach. The point we are trying to make here is that as a pioneer in the market seeking to capture the market share. Setting up an exclusive tea bar in Dacha city can disseminate the lacking currently availing the market. People will also have the chance to taste something different. An exclusive tea bar will surely have experts, so the service that a consumer will receive from an exclusive tea bar can’t be received from the places that currently sell tea. As a new company we can acquire market share if we can fulfill the consumers’ needs.
So we eave to differentiate and diversify our business. If there were competitors specializing only in tea business, then the competition would have been there. Without competition in the market, there’s more opportunity to lead the competition There is a huge market potential for the industry. We tried hard to identify the potential market. We differentiate personnel who will be working in the companies that serve tea. We think the market potential is quite good but at the first hour we have to work hard. We have to capture the potential market. And try to influence potential customer to ultimate customer.
We observe huge demand for fresh tea. The consumers demanding fresh tea later drink unhygienic tea which is found in a cheap tea stall. Higher income people do not think to go there and have some tea with their friends. At that time Cold drinks is the substitute of fresh tea. Many restaurants sell fresh local tea but not so good and tasty. We asked some potential consumers whether they would drink fresh tea and imported tea if it were priced high. They said that if we found imported and fresh tea then we can pay for the tea. Tea is the same everywhere, but the taste and smell is different and it varies country o country.
And it becomes distinguished by the good service. They said that they are willing to pay BIT 80-120 per cup if they receive their desired service. From all the findings we can see the market to be highly potential. This potential market can be captured only if we understand the consumers’ needs and demands. The consumers always demand quality, unique, distinguishable product and service at a reasonable price. In the service business, it is the service and quality of the product what matters to the consumers. The company that provides better service wins the consumers’ heart.
To win consumers’ heart it is very important to identify their needs. We tried to find what are the things that consumers looking for in a cup of tea. They look for many things of which one of the most important is unique taste and the serving approach. Then they also consider the environment, the behavior of the employees, the price of the service, and inexperienced taste. Many consumers said that they would like to taste new items. Again many said they would like to taste imported goods. When they were asked about the imported tea, they were quite surprised to learn that we are serving more than ten types of tea.
They were very much excited about it and wanted to try some. So the consumers’ needs are unique taste, different flavor, quality service, mild serving approach, and reasonable price. The placement is another important factor to the consumers. They won’t travel long distance to consume a glass of tea. They also demand availability of flavor. The environment of the place is also an important factor to the consumers. It is one of the most important parts of marketing research and analysis. We cannot Just go for the whole potential market. We have to select a target segment