INTRODUCTION

India is one of the largest tea producers in the world, though over 70% of the tea is consumed within India itself. A number of renowned teas, such as Darjeeling, also grow exclusivel in India. !he Indian tea industr has grown to own man global tea brands, and has evolved to one of the most technologicall e"uipped tea industries in the world. !ea is #nown as the "ueen of all beverages. Although India is one of the largest producers of tea in the world, we do not have an such tradition of !ea $ouses, !ea %ooms or !ea &ounges. In India !ea has been associated with dhaba culture. ou will see little 'hai shops on streets ever where.

Cozy Cup is intended to initiate a new culture of !ea drin#ing in India. (e will also organi)e special demo sessions showcasing tea ceremonies and rituals representing different cultural values. In modern times when wor# stress is high !ea is being recogni)ed as a health drin#. It helps to reduce mental stress, alleviate coronar problems, enhances s#in complexion, improves hair grow, digestive s stem, strengthens nervous s stem and recharges our adrenaline. .

Cozy Cup

*erves most of the world+s teas under of flavors.

one roof providing experience in variet

%eflecting multitude of cultures, !ea is prepared and served in the wa it is done in a given culture using the original methodolog , tools and implements.

A Place to elevate your Mind, Body and Soul !ea is the second most popular drin# of the human #ind next onl to water. In India, the tea is consumed throughout the length and breadth of the land b ever strata of the societ . ,ut the manner in which it is prepared, served and consumed represents the cultural diversit of our countr . In cultural sense, tea is the true representative of unit in diversit of India. Cozy Cup has been designed to capture this -.nitea in diversitea- i.e. .nit in diversit with a touch of interactive element to revive the customers from the monotonous and regular st le restaurant and cafeterias. Ob ective! /a#e Cozy Cup the number one destination for tea in Ahmedabad. 'reate a solid concept in the industr and trac# performance in order to begin expanding to other mar#ets in the near future. Mi!!ion 0ur goal is to provide the finest premium teas and complementar snac#s with interactive activities in a relaxed and interactive fun atmosphere.

"ey! to !ucce!! One o# it! $ind! in t%e city Cozy cup will be the first of its #ind tea house in the cit offering such a wide variet of tea along. Product &uality' (e sell onl various parts of the world. ()cellent Cu!to*er Service' 1ach customer will be treated as would an honored guest in our homes. No direct co*petition' (e are the onl teahouse the cit , thus there is no direct competition from an other tea house. Tappin+ Ne, A+e -ealt% concerned *ar$et 'onsidering the increase in the health consciousness of the people, we also offer organic medicinal and herbal tea to our customers along with the regular tea. Multiple revenue !trea*! we also offer gift items, gift bas#ets, assorted chocolates in addition to coffee, pastr , snac#s and coolers. the finest premium tea to give our customers the best for the premium the pa . Also we sell exotic teas from

OR.ANI/ATION SUMMAR0
Cozy Cup will be a start2up business on a well2traffic#ed street near commerce six roads, Ahmedabad. 0ur primar focus is in over 30 #inds of tea including blac# teas, green teas, herbal teas 4infusions5, white tea and flavored teas 4blac# currant, pineapple, jasmine plus other flavours5. (e will serve our teas hot and iced both. In addition, we will sell snac#s, and offer dail coffee to accompan tea orders. *ince we are not intending to compete with coffee giants such as 6escafe or ''D outlets, we brew onl three #inds of coffee dail , ,lac#, 1spresso and 'appuccino as a courtes to our customers.

O,ner!%ip As a partnership venture, ownership of Cozy Cup is identified as belonging to its partners. !he partners, /ruga, 'handani, /ansi and 6isarg, each control 73% of the business. !he partners are the management students who want to pursue their dream of being entrepreneurs and commence their own business. !he #nowledge of startup and management of the new business will ma#e the transition to owning and running a teahouse a natural step. 1undin+ !he project will be initiall funded b the partners in e"ual share. !he funding that the partners bring ma also consist of personal borrowings. $owever, later, in case of re"uirement of more funds, 4during the time of high investment expansion li#e opening new branch5 we ma approach an ban# or financial institutions.

PROPOS(D BUSIN(SS P2AN

3'4

Product! and Service!

Cozy Cup will speciali)e in premium teas. 0ur full -teahouse- experience is complemented b snac#s, assorted chocolates, pastries and few t pes of coffee along with the gift bas#et for our customers. 0ur goal is to be a destination store for visitors and a resource for locals see#ing gifts, new experiences, and #nowledge of tea. Tea 0ur tea2tenders will #now the best brewing temperature and time for each of the 30 #inds of teas we offer. !hese include straight blac# teas such as Assam, 'e lon, Darjeeling and 8eemun, blends li#e 'hai, a 'e lon9:anilla9;asmine blend. (e will also offer a range of green teas, which are becoming more popular with the proliferation of local restaurants. Cozy Cup+s no2caffeine herbal infusions range from flavored tea to fruit blends and medicinal brews 4chamomile, ginseng, etc.5. All of these teas are available hot or iced for customers. Snac$! Along with the tea, Cozy Cup also offers the customers snac#s that perfectl go with the tea.

Co##ee (e are a teahouse< we focus on tea. *ince we are not intending to compete with coffee giants such as 6escafe and ''D outlets, we brew onl three #ind of coffee dail , to satisf those accompan ing true tea lovers on their visits to our store.

.i#t Ba!$et! (e offer a selection of pre2made gift bas#ets, and will wor# with customers to create custom bas#ets for an occasion. 0ur tea tins come in a range of si)es and designs, and we will #eep at least five colors of bas#ets and liners in stoc# at all times.

()pan!ion5 Pa!trie! !o complement our beverages, we will offer a small selection of freshl 2ba#ed pastries from a local ba#er . 0ur alliance with this ba#er allows us to offer high2 "ualit ba#ed goods at a reasonable price, in exchange for co2advertising. !hese items are not intended as a staple of our overall profit structure, but help us to create the whole2service feeling of a real teahouse, without investing in coo#s, ba#ers, or #itchen e"uipment. ,ased on mar#et research, we believe that up to 79= of our sit2down clientele will order a coo#ie, piece of ca#e, #hari or biscuits with their tea. 6ot offering such treats could lose us customers. C%ocolate! In #eeping with our upscale, indulgent feeling, we will sell premium chocolates such as >errero %ocher, ?A!'$I and others as well as assorted flavoured chocolates as an expansion plan. (e will offer a limited selection of truffles and dipped chocolates 4li#e chocolate covered cherries, orange peel, and candied ginger5, and a wider arra of loose bars and chocolate gift bas#ets. 3'6 Pricin+

!he pricing pattern of our tea centre will be cost plus mar# up. Although we@re planning to offer the premium tea at our centre, we offer the same at lower prices than what is offered in the mar#et for the same #ind of product.

3'3

Pro*otion

0ur mar#eting strateg needs to accomplish two thingsA first, to ma#e potential customers aware of Cozy Cup7! opening and location< second, to educate potential customers as to what a teahouse is, and wh it is so wonderful. 'learl , with committed tea drin#ers, the first will suffice. $owever, for the rest of our target mar#et, we must strategicall define ourselves as the answer to the man different things each group is see#ing. 0ur highl visible location in the shopping area of the cit will encourage wal#2in traffic.

Advertisements in the local newspapers both in vernacular language as well as 1nglish dailies li#e Ahmedabad /irror, targeting outh. >l ers in multiplexes and malls where the number of target segment footfalls is higher. %eviews b the food writer in the newspapers. %adio ads at the major stations li#e %adio /irchi, %adio 'it and the li#e.

3'8 2ocation and di!tribution c%annel !he location of our tea centre would be off '.B. %oad near $.&. 'ollege of commerce. 0ur supplier would be !eamoods located at /emnagar, Ahmedabad offering more than 30 t pes of tea including flavoured. !he distribution channel is one2level and the suppliers for pastries and chocolate would be cadbur @s and other local assorted chocolate ma#ers. 3'9 Mana+e*ent !tructure !he organi)ation structure is simple since we don@t need man people to handle the operations. !he four partners have e"ual contribution and profit sharing ratio. (e@ll be responsible for the strategic decisions and a cashier cum supervisor will be the one to handle da to da operations. !here will be five waiters and two coo#s. $uman resource would also include two sweepers one cleaner, and one securit guard.

3': Interior! Cozy Cup will be divided mainl into three

sections to suit the mood and re"uirement of different customers. 0ne section will be so arranged as would capture the ethnic st le where famil people would love to go, other portion will suit the mood of professionals who would li#e to discuss over certain issues related to their business outside the office whereas the other part will be speciall for students and oungsters who visit cafeterias mainl to hang out, relax and have pure fun. Also, we have enough space outside where tables are #ept for the people who wants to have tea in the fine evening atmosphere.

MAR"(T ANA20SIS SUMMAR0

Su**ary (e plan to launch an exciting new tea house concept in a receptive and steadil growing mar#et segment 2 the specialt tea retail business. Despite economic downturns in recentl , the specialt tea business can be a bright spot. It+s clear that India@s love for good tea continues during good and bad times and also the sales of the same does not need too much of mar#eting. ;-0 A-M(DABAD !he cit is #nown for its cultural heritage and hospitalit for ears. Along with being famous for food and traditional cuisines, the cit also has a tinge of modern culture with the var ing taste of food. !hus this combination of modern and traditional cultural heritage would be the best place to start a premium "ualit tea house where the traditional concept of offering tea to guests could meet with the concept of sociali)ing and meeting over tea than coffee. A-M(DABAD5 T%e #ood %ub o# .u arat , launching Cozy Cup in Ahmedabad we maximi)e our potential for

success due to the following factors. 6o competition so far as premium tea house is concerned !he highl affluent local population 1ver2changing upscale student population 1xcellent vehicle traffic b our location &ow media costs $igh number of local special events ?rime site location /ore tourist than other cities in Bujarat

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Cozy Cup is located at what is arguabl

one of the best locations for a

coffeehouse in Ahmedabad, '.B. %oad 2 in the heart of the tourist and business district, adjacent to fine dining and shopping and just steps awa from the busiest commercial area in town. Cozy Cup tea house has all the ingredients necessar for immediate success.

8'4 MAR"(T S(.M(NTATION Mar$et Se+*entation (hile we anticipate a split between locals and tourists, all members of our target mar#et are between the ages of 70 and 30, and have a moderate to si)able disposable income. Tar+et Mar$et Se+*ent Strate+y Cozy Cup will provide the local upper2middle2class communit with a place to sociali)e, indulge themselves with fine teas and snac#s, and find uni"ue chocolates and gifts. Cozy Cup will be a destination stop in their tour of the town, whether as a brea# from shopping, a warm2up visit, business meet, or casual meet or a place to bu uni"ue gifts for friends and relatives. !hese customers will be glad to pa the price premium for our products in

exchange for the high "ualit , great taste, and sense of prestige the receive. In fact, higher prices for some items ma encourage higher sales 2 these #inds of customers eagerl accept the idea that higher prices e"ual higher "ualit , and want to bu -onl the best,- regardless of whether their palate is educated enough to appreciate the subtle differences.

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Also, b

appealing to several mar#et segments, we do not become overl single consumer group. >or example, several local coffee

dependent on an

houses with primaril student customers do poorl during the non2school months. A##luent local!A Around Cozy Cup reside man affluent people in Ahmedabad. $omes in adjacent area are high priced. !hus the location gets the advantage of wealth localit . Touri!t!A !housands of tourists96%Is visit Ahmedabad ever apt to grab majorit of the tourists. 2ocal bu!ine!! peopleA Cozy Cup is located on '.B. %oad where now2a2da s a number of commercial business centre are being built. !hus it will also grab a chun# of business people who wor# in the nearb area. Student!A Ahmedabad has a major branch of the *tate .niversit as well as do)ens of other schools, including man prestigious private schools and academic institutions in the commerce college area most of which are located near our tea house. A number of students from man other cities and state come to Ahmedabad for their further education who will serve as potential customers of our business. 8'6 Indu!try Analy!i! !ea is indigenous to India and is an area where the countr can ta#e a lot of pride. !his is mainl because of its pre2eminence as a foreign exchange earner and its contributions to the countr +s B6?. In all aspects of tea production, consumption and export, India has emerged to be the world leader, mainl because it accounts for =C% of global production. It is perhaps the onl industr where India has retained its leadership over the last C30 ears. ear. !ourist visit

'.B. %oad for shopping, dining and visiting nearb malls. !hus the location is

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$owever, even after so well developed tea mar#et, we can barel

see

development in tea retail stall b an major compan . $owever, in the other cities, li#e ?une, /umbai and ,angaluru there are well established tea house. Also earlier this ear, !A!A has come up with its own branded tea shops called D'hai .nchai@. Also other compan @s later are expected to join the bandwagon. 2ocal co*petition &oo#ing at the present scenario as far as locale is concerned for tea retail business, there is no premium tea shop in Ahmedabad and at present no business is up for the same in near future. !hus Cozy Cup will face no direct competition. $owever, due to well establish and intense proliferation of the local tea stalls, there can be little competition from their side but no threats. $owever as our business will grow, there are chances of opening new tea house to give us competition. Also !A!A as mentioned above, with their D'hai .nchai@ is planning to expand their business across the countr in the following 327 ears. 'onsidering this, we are expecting an earl set up in Ahmedabad from their side than other cit . !hus an expected fall in our sales is considered in = ears of our set up. Also there will be indirect competition from coffee outlets li#e ,arista, 6escafe or ''D outlets. !hus our concentration is not onl on attracting tea drin#ers but also to convert coffee drin#ers into. !hus, the focus on the happening around is immensel essentials.

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STRAT(.IC ANA20SIS
Product Po!itionin+ (e will combine print advertising with special events and targeted promotions to introduce residents and tourists to our !eahouse, and to premium teas in general. %epeat sales depend on consistentl high "ualit products and service. (e will thus train ever part2time teatender in the proper storage, brewing, and serving of our 30 #inds of tea. 0ur teas and chocolates are offered at a price premium that discourages customers see#ing cheap, low2"ualit goods. !his not onl enhances the feeling of prestige customers get when patroni)ing our teahouse, but also ensures that customers will have similar expectations of service and "ualit , based on their socio2economic class. !he status and sophistication indicated b suggesting an outing to our teahouse, or a gift bas#et with our logo on it, will soon become valuable in themselves. Co*petitive (d+e "ey Co*petitive Stren+t%!

!he partners have the professional #nowledge of starting up new business and are trained about the management aspect of the same. (e are the onl full2scale teahouse in the cit (e have arranged competitive distribution contracts with high2end tea growers and suppliers. (e are one of the few retailers offering such a wide arra of premium chocolates. 0ur interior design will give Cozy Cup an intimate, co) , comfortable, and chic feeling, without reminding customers of doilies and lace.

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(e are committed to providing onl high2"ualit products and services.

Co*petitive ;ea$ne!!e! 0ur primar wea#ness is that we are a new business competing against

established chains, for customers who ma not #now how great our products are. Also there is not strong competition from tea centre as much as it would be indirectl from other well established cafeterias. !o significantl build sales, we must not just find new customers 2 we must ta#e customers awa from existing stores and from their coffee2drin#ing habits. (e can accomplish this onl service and full service deliver . b offering a superior selection of teas and chocolates, and focusing on high2"ualit

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MAR"(TIN. STRAT(.0
An service unit is almost entirel on word2of2mouth mar#eting to generate business. (e will engage in an ongoing aggressive mar#eting program that will help us establish profitabilit "uic#l and set the stage for continual growth. :'4 Mar$etin+ Strate+y

2aunc% *ar$etin+ /ost of the tea centres chains do little or no mar#eting and advertising. And same with the other beverages retail outlets li#e ''D and ,arista. 0n the international front also, the coffee giant starbuc#s spend less than C% of gross revenues on advertising, and when the do spend, it is usuall to introduce a new product. An element of our differentiation will be our use of advertising and mar#eting to gain awareness, build customer traffic and establish a strong brand image. (e intend to create immediate customer awareness and not wait for word2of2mouth. (e are also building customer traffic immediatel with an aggressive &aunch /ar#eting ?lan. &aunch mar#eting will promote awareness, build immediate traffic and establish our brand image via several methodsA

?ublic relations9publicit Direct mail &ocal print and broadcast media Design and pac#aging *ampling *uperior location

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 Desirable store ambience

Public Relation! A strong public relations9publicit these three main pointsA C. 7. =. our uni"ue "ualit products our distinctive start up our one of its #ind interactive tea house. !he goal of the ?%9publicit is to achieve local mar#et awareness and establish the brand on a wider scale to set the stage for future expansion. &ocal mar#et awareness is vital because more than 30% of sales will come from people living within a C0 #m radius of the shop. &ocal awareness will help drive the expansion b generating opportunities created b the media bu)) and familiari)ing people with our brand name. It will help set the stage for future brand identification. Media (e@ll advertise in t%e #ollo,in+ *edia ,%ic% include! Print, T< and Radio' !he !imes of India Bujarat *amachar Div a ,has#ar >/ radio station &ocal cable channel program uses as its primar -hoo#-

;eb!ite

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0ur website would be full e2commerce functional and could easil become a significant revenue source.

!he website also mar#ets Cozy Cup withA

A monthl newsletter Information about the tea industr and the li#e A map to our store *tore hours *pecial events *pecial boo#ings $ealth tips *pecial offering ?romotional *chemes 0nline interactive activities 'o2advertising

Ot%er! Ahmedabad is the home to thousands of individuals who can be important to the successful positioning of Cozy Cup. 0ne mention on a !: tal# program, outh programs li#e /!: . or in a +lifest le+ maga)ine can launch man successful careers and businesses. (ith literall hundreds of celebrities and wealth business people as local

residents, the word2of2mouth recommendations from these people can drive significant business to us as well as generate favourable publicit . /an celebrities visit Ahmedabad. 'elebrities are also activel involved in the communit , man supporting several local charities. 0ur involvement in the

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communit will enable us to garner exposure for Cozy Cup among an important group of local residents. 8e individuals will be targeted with gift bas#ets from Cozy Cup containing

samples of our products to entice them to visit Cozy Cup and tal# about us with their friends.

Sa*plin+ (e will engage in several sampling activities to introduce potential customers 4and current customers5 to Cozy Cup range of drin# options. :'6 *amples will be distributed to #e individuals *amples will be given to b 2passers on the street Discount coupons will be distributed on the street, via direct mail and at special events 'omplementar tea will be served at charitable and civic events Sale! Strate+y

0ur sales strateg includesA $iring for attitude so that we alwa s have a friendl , enthusiastic staff to ma#e customers feel welcome and appreciated< constant staff training to assure the best "ualit possible *tate2of2the2art sales9inventor s stem to reduce customer waiting time, and create efficient product ordering *ell chocolates and gift bas#ets on our website 1stablish tea service at local businesses 'reate an ongoing sampling program 'onduct a consistent, aggressive mar#eting program ,e an active member of the communit < be visible at charitable functions

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*olicit customer feedbac# to constantl improve and streamline our operation

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