Market Research & Planning Final Paper

A021 – B R Kavya Maheshwari

3. Existing Marketing Plan
Existing Business Scenario
Being currently in growth stage, they have incorporated technology and innovation and
believe that it is the key for expanding business. They have developed the first automatic tea-
dispenser in India, with IOT and claim to be not using any artificial ingredients enriching
consumers with freshly brewed, authentic tea. Along with tea they sell its own curated chain
of snacks.
They have adopted the Omnichannel business strategy with their main mode of sales being
 Retail Stores

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Mobile Application (IOS and Android)

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
 Doorstep- Delivery Service

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SHARK – Cloud based platform, enabling seamless tracking & billing across outlets

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 Kiosk based solution, boxC.in (IOT dispenser - machine)

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 Heat retaining Flask
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Strategies
 Limited Varieties – Four core varieties (Ginger, Classic, Masala and Elaichi)
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 Location – Anchor points (College, Corporate Parks or School Joints)

Standing Table – Allowing their majority customers (Corporates) to have a quick chat
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
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over a cup of chai

 Good Understanding of Demand – Shark and Boxc.in enables transactions to be cloud
based which perform analysis helping determine future demand, trend analysis across
outlets.
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 ChaiPoint @Work – Main source of income and is located near corporate offices serving
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via delivery as well.

“Chai Point has penetration in 8 cities and along with their own delivery fleet of 60 electric
scooters, they have collaboration with food ordering apps like Swiggy & Zomato “
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Segmentation
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 Chai point has stores at Delhi, Bangalore, Mumbai, Noida, Gurgaon, Pune, Chennai and
Hyderabad
 Based on age group, mostly 20-40 aged people prefer to buy tea from Chai point.
 Most of the people coming to Chai point are single time users. Repeat customers are
mostly working professionals.

Targeting
 Focus on working professionals, students and households
 Students – Ice tea, Shakes, Food packs etc

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  Working Professionals – Dispensers in Office, Tea in retail stores etc
 Households – Tea Delivery, Tea leaves brewed @ home
POP – Points of Parity
 Fast Service – Competitors like Chaayos etc also do provide quickly on call service
POD – Points of Difference
 Delivery of tea in Disposable tea flasks
 Provides Indian Specific snacks – Masala Peanuts, Rusk, Multi Grain biscuits etc
 One of the few brands which specializes in tea – commonly consumed beverage in India
Their prices are little premium but because of all the above factors, and their strategies as
mentioned above, people do turn up at chai point and spend about Rs 150 – 200 per person.
They are promoting actively on internet and social media as well.
2. Packaged food purchase and consumption has drastically increase due to the pandemic

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along with the decline in people visiting to the outlets with the new social distancing norms.

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Adopting a digital strategy to enter the packaged food section along with focusing on delivery

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service, selling tea brews at retail stores & e-commerce, redesign outlets and selling of the

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dispensers’ machine, include healthier options should be of primary focus post the lockdown.

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Keeping in mind the revenue, post pandemic consumer behaviour and existing market plan I
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suggest the above segments to be focused on.
The reasons for the above suggestion are:
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 Although lockdown has ended, people are not willing to dine outside and are preferring to
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stay at homes and order. So, to be able to cater to the demand, delivery is going to be
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crucial. As they have an app and have already partnered with Swiggy and Zomato, they
should also leverage dunzo which is very popular and onboard shadowfax delivery
partner as well.
The outlets should be redesigned to reassure consumers of hygiene and safety by having
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
doors which can be operated by feet, temperature screening, sensor driven sanitisers to be
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replaced with existing ones and so on.

 Incorporate new healthier options in addition to existing 4 core varieties offered along
with new healthy Indian traditional snacks.
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 As the new norms have increased the focus shift to WFH, and most working professionals
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are at home who are the major consumers its important to change accordingly. Also, the
households are at home with extra work as all the people stay at home.
 Having Tea delivery everyday like milk delivery with coupons and discounts in place
for the busy working husband and wife, so that they don’t miss out on chai.
 Delivery of snacks, and chai combos.
 Tea brewery made available on big basket, ecommerce websites and retail stores
 With the skyrocketing demand for processed food, entering the direct to consumer
packaged segment for food via amazon, flipkart and so on will be the key to boost sales
and at the same time still provide and enhance the chai experience at home without
having to visit the store for the authentic chai that chai point offers.
 Incorporating orders via WhatsApp along with call delivery as well should be on priority.

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 POP – Points of Parity
 Fast Service – Competitors like Chaayos etc also do provide quickly on call service
POD – Points of Difference
 Delivery of tea in Disposable tea flasks
 Provides Indian Specific snacks – Masala Peanuts, Rusk, Multi Grain biscuits etc
 One of the few brands which specializes in tea – commonly consumed beverage in India
Along with this, the brand has to position itself as a brand part of every household by entering
the retail stores, direct to consumer segment with being available. Chai is very often
consumed in India and now since the COVID-19 has started to raise focus on immunity. New
healthier options need to be included. So, now it needs to position itself as a day-to-day
indulgence brand with heavier focus on technology and innovation. They should be able to
deliver a perfect cup of Chai that inspires perfection and fuels progress in every Indian
Position by providing better - Customer Sales, Quality of Chai, Cleanliness, Customer

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Service, Ethics and Environment

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 Market Research Plan

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Assumption – Lockdown ended and cases are decreasing

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We are conducting research
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Step 1 - Identify the Research Objective
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To identify the changes in consumer behaviour due to pandemic

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 The willingness to buy outside

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 The kind of products they are willing to pay and buy for
 Will they visit store if all precautions are taken?
 Do we need to change the mode and tweak the products sold?
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Step 2 – Conduct Secondary Research

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 Read upon the consumer preferences from articles, news and internet to understand the
mindset of people currently
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 Do competitor analysis to figure out how they are adopting to the pandemic
 In general, note down the trends that picked up during pandemic which can be
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incorporated in the chai point business model

 See the feedback from the website, app as to include those changes as well as the
company is willing to change business model now anyways
Step 3 – Conduct FGD (5 FGD’s) and Personal Interviews (200)
 Identify the potential candidates from the target segment. In this case (Students, Working
professionals and households from the customers list)
 Prepare a set of questions to be asked during the FGD and interviews and observe if the
answers in FGD are getting influenced because of each other’s answers
 Similarly conduct Interviews to note down the responses

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 Step 4 - Analyse the Reponses from FGD and Interviews
 Form hypotheses from the responses after analysing it
 This is the null hypothesis which will be validated through surveys and polls
Step 5 – Conduct a Survey, poll on Social Media
 Have a short survey rolled out keeping in mind hypothesis
 Create short polls on few questions keeping in mind the hypothesis
Step 6 – Analyse survey results
 Analyse the Reponses using pivot table and decide the inclination of people by
generalising it. Form final insights for each research objective at the end.
Try to have a new business model planned keeping in mind the responses and test run it in
one major location (profitable) doing well before implementing everywhere.
“4. The new market plan to be incorporated post the lockdown should keep in mind the

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current trends, consumers behaviour which will determine the growth of company as well as
it is at a growing stage.

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4P Analysis

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Product
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Currently the product side of Chai Point consists of chai or tea that is authentic and made
keeping in mind hygiene along with some ready to eat goods like multi grain cookies that go
along with chai. To make the whole experience effective some additional steps are suggested
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 Today there are many flavours of tea available commonly. Ginger, Lime, Mint,
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Cinnamon and the list goes on. But these would either be ready made with flavoured
tea powder in most cases. But the experience would be holistic if the customer is
allowed some sort of freedom while deciding the flavour of his chai. Thus, in order to
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provide a personalised touch to it, customisation options can be provided on a normal

tea by means of cinnamon, ginger or similar items.
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 Although the idea of using healthy food to go along with chai is attractive, who would
not want to take a bite of Vada Pau at the same time or maybe even a chicken burger.
Thus, food menu can be expanded providing the customer with lots of options.
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Therefore, there is always a potential of converting a chai customer into one that will
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also buy these food items

 Other beverages - Even though the name has Chai in it, it does not mean that the
company should restrict itself to chai. In a circle of friends or in a family there will
definitely be coffee enthusiasts too. Therefore, Chai Point can expand to coffee to
cater wider audience
Price
The price had doubled from their initial days to 30Rs. This has been done keeping in mind
the aspiration to reach the level of Starbucks. Lowering the price at this stage would have a
negative effect as it may send out that the company is not earning much also will take out any
premium feel associate with it thus reducing the price is not a suggested option. On the other
hand, considering the price of Chaayos (35) and Wagh Bakri (27) as per Exhibit 9, an

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 increase would cause customers to rethink their choice. Additionally, Chai Point can state that
even though lockdown owing to the pandemic has affected business everywhere, the focus of
Chai Point is not profit but to provide authentic Chai thus it will still be available as it was
before lockdown. Therefore, a change in price at this juncture is not suggested.
Place
Currently there are 3 channels for the distribution of Chai Point’s chai.
 Retail Store - There were ideas to expand via more stores all over the country. But it
is not suggested citing two reasons. One due to the Covid-19 pandemic, customers are
a little apprehensive about visiting stores and additionally if the shop is found
everywhere, there is a chance that it may lose its exclusivity and sheen. There fore in
order to build upon the brands shops should be open strategically especially inside
MNC campuses and airports. Having a shop inside major airports instantly raises the
bar. Hygiene will also play part now to attract customers. Hand sanitizers should be
easily accessible, tables should be arranged keeping in mind social distancing, utensils

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should be sanitised at regular intervals, even if it is practiced it is up to the stores to

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declare that they re following all protocols

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 Chai@Work- B2C- BoxC - It has been a revolutionary product that has lots of

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advantages owing to superior technology. It is better to not fix something when it is
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not broken and in fact BoxC has been perfect in terms of execution. Thus, the only
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suggestion is expansion, to reach more businesses

 Chai on Call - Post pandemic, this will be the channel that can be most leveraged.
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Contactless delivery, displaying temperature and wellness of delivery personnel,

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customers should be given the option of having their flasks delivered outside their
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home preventing interaction to reduce risk of transmission. Quality face masks should
be provided to delivery partners with basic training about hygiene practices specific to
prevalent conditions.
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The most important aspect here is to attract customers to use channel and 1 and 3
above by proving that it is absolutely safe.

Promotion
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Post lockdown promotion should ideally be focused and employed using digital
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methods. Following are the promotional strategies that are suggested.

 Social Media - This is one outlet that should be utilised to the maximum. Options
should be provided to ask what makes the customer feel safe while visiting a Chai
Point shop during these testing times. What the safety measures they would expect.
Along with them social media can be used as the place for showing the exact steps
adopted to ensure safe operation.

 Sales Promotion - Repeated customers should be rewarded via consumer promotions.

Customers who continuously utilise either the shop or the Chai on Call facility can be
added to loyalty programs that enables them to goodies or discounts for future orders

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  Directing Marketing - As there is a requirement to target white collar workers, a
database can be used for the same. The customer is defined depending upon certain
attributes and similarities. Advertising agencies along with marketers can design
communication channels and monitor responses”

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