BeauTea

~Rediscover the Goodness in Life~

Ong Wei Ling Selina Tong Kan Yi Ling Michelle Ting Yew Xiao Qian Grace Teo

Content
History of tea Interesting facts about tea Business idea Business name Nature of business venture Product, market and financial evaluation Business registration and licences Macro environmental factors and trends Target audience Survey results and findings Conclusion

Tea History
In 2700 B.C. Emperor Shen Nung, scholar and herbalist, discovered the magic of tea while sipping hot water under a wild tea tree. As he sat, a drift of leaves floated into his cup from above. He sipped, he thought and he discovered, much like the tea drinkers of today.

Did you know that tea

Reduces chances of heart disease Promotes fertility Cures puffy eyes Helps remove food odours Prevents tooth decay and bad breath Soothe burns and sunburns

Business Idea
Tea caf - Floral, fruit and herbal teas - With side orders Primary target audience - female 20 to 35 Secondary target audience - male 25 to 35 Homely atmosphere - Cosy ambience and friendly service - Mat and cushions instead of all chairs - Magazine corner for leisure reading - Free card games

Tea Gift corner Variety of teas packaged as gift in an exquisite tea box

Business name
BeauTea Rediscover the Goodness in Life Play on the word beauty To associate our target audience with beauty (BeauTea)

Nature of business venture

Partnership Profits will be shared equally

Product evaluation (1)

The need for our product/service Singaporeans lead a stressful lifestyle BeauTea provides soothing atmosphere Increasing demand Herbal and fruit teas are gaining popularity Values that our product offers Wide variety Health benefits Our Unique Selling Point Position BeauTea as a place like home Quiet and comfortable ambience etc

Product evaluation (2)

Is it the right time to launch our product?
No dominant tea place Positive response based on surveys Increasing trend - people becoming more health-conscious

Market evaluation
Tea market:
Teas containing fruit juices have been gaining popularity Floral flavourings in tea become increasingly popular Herbal and fruit teas predicted to have most growth Trends People more health conscious

Conclusion :
High possibility of a growing market for tea Confident that market that we are venturing into will be big

Our competitors
The Tea Party Essential Brew Tea Caf & Restaurant Tea Bone Zen Mind Wacha The Coffee Bean & Tea Leaf Story of Floral Tea (SOFT)

Our competitive advantage

Deliver superior service to our customers Send all employees and all the partners for training Service crew will be trained on how to provide the best customer service

Customers response
Attracted to the cosy ambience and the high quality of the tea that we offer Attracted to the wide variety of tea, the health benefits and the service provided Word-of-mouth is likely to take place o A place where they can sit down to relax o Bond and catch up with each other through playing games o Like to gather in groups and chit-chat More knowledgeable about drinking tea and the health benefits

Inform their friends about the health benefits of drinking tea o Persuade / Influence people around them to start drinking tea

Alternatives / Substitutes

The Coffee Bean & Tea Leaf

Coffee Bubble Tea Soft drinks Tea Bags Instant tea available in Supermarkets

Competitors Response
Create new unique selling points
Retain and attract customers Have promotions Combo set and/or Lower the price Advertisements (Brochures / Pamphlets) Remind customers Create awareness

Financial Evaluation
Start-up cost:
Estimated to be about S$350,000

Include expenditure on:

Importing tea leaves Marketing costs Tea sets and cutleries from supplier Shop decoration Furniture, kitchen equipment, etc. Shop rental Employees Utilities

Financial Evaluation
Risks involved:
Market conditions Needs and/or wants might change

Unable to adapt quick enough

Making losses Little awareness of our tea place

Business registration and licences

Partners must consent to the online transaction and pay a registration fee of $65

Licences
Food shop licence Halal eating establishment scheme CPF employer registration Advertisement licence

Macro environmental factors & trends

Social:
Increasing wealth Increase in the demand for recreational, education and health services. More health conscious Demand better quality of products and services Female consumers segment is a potential market

Macro environmental factors & trends

Cultural:
Singapore has a mixed population Singapore Malay Muslims have more spending power - Halal food in BeauTea Tea is important in Chinese culture - Meet the needs of Chinese

Macro environmental factors & trends

Economical:
Receiving more income Opportunity to break into the market Singaporeans will have greater spending power BeauTea does not receive any outsiders funding Must be aware of consumers behaviour to the cost

Macro environmental factors & trends

Technological:
Many technological aspects are incorporated Tea processing has become more efficient today - Withering, rolling, roll-breaking, oxidation, drying or firing Special tea processing with technology Most important is to ensure the tea quality

Target audience
Primary target audience
Demographic segmentation: Women aged 20-35 Career women who earn more money, will have more disposable income Psychographic segmentation: Busy career lives Interested in the aesthetic part of life Being women, they value friendships More health conscious Behaviouristic segmentation: Experimental Make decisions based on emotions Loyal to our brand, and their user status will be regular

Target audience
Secondary target audience
Demographic segmentation: Men aged 25-35 Working adults who have disposable income Psychographic segmentation: More than 75% of this target audience like to drink tea Health conscious Value leisure time Behaviouristic segmentation: Generous in spending money on products based on its perceived values

Survey results and findings

Question: Do you like to drink tea?
98% of female and 80% of male surveyed drink tea
20 18 16 14 12 10 8 6 4 2 0 YES NO

18 16 14 12 10 8 6 4 2 0 YES NO

20 - 24 25 - 29 30 - 35

20 - 24 25 - 29 30 - 35

Females

Males

Survey results and findings

Question: Do you know the health benefits of drinking tea?
78% of females and 62% of males know the health benefits of tea
18 16 14 12 10 8 6 4 2 0 YES NO 20 - 24 25 - 29 30 - 35

14 12 10 8 6 4 2 0 YES NO 20 - 24 25 - 29 30 - 35

Females

Males

Survey results and findings

Question: How often do you patronise a tea caf?
57% of females and 42% of males patronise tea cafes most of the time and sometimes.
12 10 8 6 4 2 0 Most Some Rarely Never 20 - 24 25 - 29 30 - 35
10 9 8 7 6 5 4 3 2 1 0 Most Some Rarely Never

20 - 24 25 - 29 30 - 35

Females

Males

Survey results and findings

Question: I consider myself to be health conscious. 70% of females and 63% of males strongly agree or agree that they are health conscious.
14 12 10 8 6 4 2 0 SA A N D SD 20 - 24 25 - 29 30 - 35
12 10 8 6 4 2 0 SA A N D SD 20 - 24 25 - 29 30 - 35

Females

Males

Survey results and findings

Question: I drink tea because of its health benefits. 47% of females strongly agree or agree that they drink tea for health benefits while 35% of females are neutral. 25% of males strongly agree or agree that they drink tea for health benefits while 57% of males are neutral
9 8 7 6 5 4 3 2 1 0 SA A N D SD 20 - 24 25 - 29 30 - 35

14 12 10 8 6 4 2 0 SA A N D SD 20 - 24 25 - 29 30 - 35

Females

Males

Survey results and findings

Question: I would patronise a tea caf which sells floral, fruit and herbal tea.
70% of females and 55% of males strongly agree or agree that they would patronise our caf.
14 12 10 8 6 4 2 0 SA A N D SD 20 - 24 25 - 29 30 - 35
14 12 10 8 6 4 2 0 SA A N D SD 20 - 24 25 - 29 30 - 35

Females

Males

Conclusion
No key player in industry Use this advantage to penetrate into market Our personal service and homely ambience Provide an intangible experience More value and will enable customers to remember BeauTea better Concept of BeauTea can capture a substantial market share and be in customers evoked set

Sources
http://knowhow-now.com/FoodandDrink-article8673-10InterestingFactsAboutTea.html www.wikipedia.org http://www.about-tea.com/2005/11/shen_nung_and_the_origin_of_te.html http://www.acra.gov.sg/Services/Business/How_do_I_Register_a_Business http://www.muis.gov.sg/cms/services/hal.aspx?id=70 http://www.business.gov.sg/EN/Industries/FoodNBeverage/LicencesNPermits/Operati ngFNBOutlets/fnb_lp_FoodShop.htm http://www.brandrepublic.com/bulletins/design/article/480268/sector-insight-teatrouble-brewing/ http://www.euromonitor.com/Hot_Drinks_In_singapore http://www.guideposttimor.com/pages/current.pdf http://www.straitstimes.com/Free/Story/STIStory_226713.html?vgnmr=1 http://sg.acnielsen.com/news/20050913.shtml http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffeetea/279013-1.html http://www.whfoods.com/genpage.php?tname=foodspice&dbid=25 http://www.capecodprovisions.com/health_benefits.htm http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffeetea/279013-1.html http://www.tea.sg/Benefits_of_Tea.html http://health.asiaone.com/Health/Eat+Right/Story/A1Story20080415-59917.html http://my.cardiovalens.com/nutrition/nutrition_tea.asp