45758870 Bubble Tea Cafe Business Plan

Executive Summary
Mission
Keys to Success
Company Summary
Company Ownership
Company History
Product/Service Description
Market Analysis
Market Segmentation
Target Market Segment Strategy
Market Needs
Service Business Analysis
Competition and Buying atterns
Strategy and Implementation
Competitive !dge
Management Team
Executive Summary
Capital Bu""le Tea Ca#e is a start$up "u""le tea ca#e that will also o##er a selection o#
"akery products% located in Capital City% Statesville& Capital Bu""le Tea Ca#e e'pects to
catch the interest o# a regular loyal customer "ase with its "road variety o# "u""le tea as
well as pastry products&
Bu""le tea is specialist drink increasingly "eing o##ered in ca#(s% co##ees shops and "ars&
)t originates #rom Asia and is made up o# hot or cold tea% milk% sugar and giant "lack
tapioca "alls& )ce is then added and the drink shaken to create the "u""le e##ect& Bu""le
tea is o#ten re#erred to as pearl shake% tapioca "all drink* "o"a ice tea and "u""le drink
among other things&
The term +"u""le+ re#ers to the tapioca "alls in the drink& These chewy tapioca "alls% or
+pearls%+ are consumed along with the "everage through a wide straw& Bu""le tea is
especially popular in many !ast Asian and Southeast Asian regions such as Taiwan%
Brunei% China ,including Hong Kong and Macau-% Malaysia% the hilippines% Singapore%
South Korea% Thailand% )ndonesia% .ietnam and Australia&
Capital Bu""le Tea Ca#e will "e Asian$themed in d(cor and we will also sell Asian
pastries% snacks and #ood&
Capital Bu""le Tea Ca#e will "e situated in a #ashiona"le area o# Capital City% populated
"y ur"an pro#essionals with high disposa"le incomes and an interest in alternative eating
and drinking venues&
Compared to opening a #ull si/e restaurant% the start up costs to open a "u""le tea ca#e are
low& The wide range o# our contacts 0 relationships mean we will open a "u""le tea ca#e
with minimal investment ensuring we get the "iggest "ang #or our "uck&
A "u""le tea ca#e is not la"or intensive% is simple to operate and does not necessitate that
the owner "e on site& The key is to get things set up correctly in the early stages and to
use e##ective operating systems to save valua"le time% e##ort% and money&
Mission
Capital Bu""le Tea Ca#e aims to o##er high 1uality "u""le tea% as well as pastry products%
at a competitive price to meet the demand o# the middle$ to higher$income local market
area residents and tourists&
O!ectives
 Beverages and entertainment are our products& They must "e o# the high 1uality
and value&
 Service2 Our patrons are paying to have a good time& Their e'perience will su##er
i# service is not o# the highest cali"er& !ach mem"er o# the sta## will "e courteous%
e##icient% and attentive&
 Marketing2 3e will need to target our audience early and o#ten& 3hile the
"usiness is located in a central and accessi"le location% many people will have to
"e reintroduced to the neigh"orhood&
 Management2 3e will need to have a #irm grasp on "everage% and la"or costs& The
"u""le tea ca#e e'perience must "e delivered in a #ashion that will not only inspire
repeat "usiness% "ut also encourage word$o#$mouth recommendations to others&
 roper inventory% employee management% and 1uality control are key&
"eys to Success
Keys to success #or Capital Bu""le Tea Ca#e will include2
 roviding the highest 1uality product with personal customer service&
 Competitive pricing&
Company Summary
Capital Bu""le Tea Ca#e is a "u""le tea ca#e managed "y two partners& These partners
represent sales4management and #inance4administration areas% respectively& The partners
will provide #unding #rom their own savings% which will cover start$up e'penses and
provide a #inancial cushion #or the #irst months o# operation&
A ten$year Small Business Administration ,SBA- loan will cover the rest o# the re1uired
#inancing& The company plans to "uild a strong market position in the town% due to the
partners5 industry e'perience and mild competitive climate in the area&
Company o#ners$ip
Capital Bu""le Tea Ca#e is incorporated in the state o# Capital City& )ts two partners
e1ually own it&
Company %istory
Su"stantial capital may "e re1uired to set up a "u""le tea ca#e* "ut it can "e possi"le to
set up 1uite cheaply& Suita"le premises will need to "e leased and some thought should "e
given to location% as passing trade will "e important&
A central location will "e e'pensive&
The appearance o# the shop will also "e vital% there#ore some consideration should "e
given to appropriate #i'tures and #ittings& )t may "e possi"le to lease some o# the
e1uipment needed and drinks companies such as Coca$Cola may o##er advantageous
rental terms #or drinks #ridges&
)t will "e necessary to register your "usiness with the environmental health department o#
your local authority at least 67 days prior to commencing trade&
Sourcing supplies will "e an important consideration% particularly due to the specialist
nature o# "u""le tea& Many suppliers are "ased in the 8S so you may need to think a"out
ordering goods #rom a"road&
See www&"u""leteasupply&com% www&"u""leteastore&com% www&cra/y"u""letea&com and
www&"u""letea&"i/ #or e'amples o# suppliers&
ossi"le initial and ongoing costs include2
 9rinks machines : ;6<<$;=<<&
 Chairs% ta"les% so#as&
 A display counter& A re#rigerated counter costs appro'imately ;7<<$;>%><<&
 A glass #ronted re#rigerator #or cold drinks : #rom ;?<<&
 A pastry display case : ;7=<$;>%?<<&
 A till $ #rom ;><<&
 A dishwasher : ;@<<$;>%><<&
 Crockery and cutlery& Aor e'ample cups ,;=<$;@< #or a "o' o# 6?-& However% the
shop may also want to use disposa"le cups and cutlery&
 )nsurance&
 Sta## costs&
 Sta## uni#orms&
 A honographic er#ormance license and er#orming Bight Society license is
re1uired i# playing "ackground music&
Capital Bu""le Tea Ca#e is a start$up company& Ainancing will come #rom the partners5
capital and a ten$year SBA loan&
Start$up !'penses
Cegal ;>%<<<
Advertising ;>%<<<
Stationery ;>%<<<
remise renovation ;6<%<<<
!'pensed e1uipment ;D<%<<<
Other ;>%<<<
Total Start$up !'pense ;=?%<<<
Cash Balance on Starting 9ate ;D=%<<<
Other Short$term Assets ;>>%<<<
Total Short$term Assets ;?@%<<<
Total Be1uirements ;><<%<<<
Aunding )nvestment
Smith ;=<%<<<
Eones ;=<%<<<
Total )nvestment ;><<%<<<
Product / Service Description
Ainally there5s a drink that5s #un to eatF Move over trendy co##ee drinks and make way #or
the new drink cra/e that is going on right now% especially in communities with large
Asian populations&

Over the last year or so% Bu""le Tea has moved "eyond their roots in the predominately
Asian su"ur"s and gained in popularity across the 3orld& !specially popular with young
adults in larger cities* others are now accepting this drink cra/e&
3hat is Bu""le TeaG
Bu""le Tea is the catch$all name #or endless unusual names o# this drink such as2 tapioca
pearl drink% tapioca "all drink% pearl shake% pearl tea% "lack pearl tea% "ig pearl% "o"a tea%
"o"a ice tea% "o"a nai cha% milk tea% "u""le drink% /hen /hu nai cha% momi% momi milk
tea% HH% BBT% T% and possi"ly many other names&
This drink is #ar #rom the plain$looking tea that you are generally #amiliar with and it is
hard to e'plain to the uninitiated& )t is non$alcoholic and non$car"onated& The tea is
sweet% though it has less sugar than a typical so#t drink& There are a huge variety o#
#lavors to try% depending on the tea house or stand you visit& The drink is usually a mi' o#
tea% milk% sugar% and giant "lack tapioca "alls& The +"u""le+ re#ers to the #oam created "y
shaking the #reshly "rewed tea with ice ,the drink must always "e shaken and not stirred-&
Aor the #irst$timers% ordering a Bu""le Tea can "e an event& The tea is likely to "e in
pastel colors o# pink% green or yellow& The uni1ue ingredient o# Bu""le Tea is the tapioca
pearl& A"out the si/e o# pearls or small mar"les% they have a consistency like gummy
candy ,so#t and chewy-& Being heavier than the drink they tend to always stay near the
"ottom o# the glass& These drinks are usually served in large see$through plastic
containers with an e'tra$wide straw to sip these Ium"o pearls& Eust sucking on the
translucent straw creates a show% with pearls #loating up in succession& Children like to
"low the "alls out #rom the straw to shoot at targets or at each other&
Some people #ind the tapioca "alls "i/arre and repelling& )# you try it and like it $ you5ll
crave the drink and never look at co##ee the same way againF
The Bu""le Tea cra/e has "een huge in Taiwan and other parts o# Southeast Asia #or the
last >= years& )n #act% Bu""le Tea has taken Taiwan "y storm over the past decade& The
drink originally started as a childhood treat in Taiwan in the late >J7<5s at small tea
stands in #ront o# the schoolhouses& Teenagers and elementary school children looked
#orward to their a#ter school tea& Tapioca pearls are made mostly #rom tapioca starch&
Tapioca starch is starch made #rom tapioca or "itter$cassava plant% sometimes called
manioca or yuca in some parts o# the world& The "itter$cassava plant is native to South
America and was introduced into Asia sometime during the >Jth century& Someone came
up with the idea o# adding tapioca pearls as a "it o# novelty% and the idea spread& This
created a new #ad o# adding tapioca pearls into the children5s #avorite tea drinks&
3hen ordering% customers may "e asked whether they want 5pearls5 or 5"o"a5 in their
drinks% and "oth terms re#er to the tapioca "alls& The tapioca pearls re1uire an hour #or
preparation% and they e'pand considera"ly when cooked& A#ter they are cooked through
"ut "e#ore they "ecome too so#t% the pearls are drained and poured into a sugar$water
solution% and are ready #or use&
Some ca#es use a non$dairy milk su"stitute% instead o# milk "ecause many !ast Asians are
lactose intolerant& This adds a distinct #lavor and consistency to the drink&
As time has moved on new generations o# "u""le drinks have come into "eing% such as%
the 5Snow Bu""le&5 This 5Snow Bu""le5 drink is a slushie$like drink where you choose one
o# many #ruit #lavors and it is mi'ed in with shaved ice to make a smooth re#reshing
drink% a#ter that the "o"a "alls can "e added #rom their assorted types% "lack "o"a which
are the original% colored% lychee "u""les% and rain"ow "o"a* some o# the many that are
o##ered today&
Bu""le tea can "e made at home% "ut preparing tapioca pearls can "e 1uite la"or intensive
as the tapioca pearls must "e consumed immediately to maintain #reshness and not lose
their so#t gummy te'ture& )t5s easier to skip making it yoursel# and head down to the
various Bu""le Tea shops which have sprung up&
Bu""le Teas
Authentic Asian tea drinks% created with the #inest ingredients chosen #rom around the
world&
Choice o# Black or Kreen Teas&
Try our new #ro/en Bu""le Teas& Have it in any #lavor you5d like&

Served with Milk
• Almond
• Banana
• Coconut
• Classic Bu""le Tea
• Co##ee
• Honeydew
• Mango
• apaya
• Straw"erry
• Taro
Served without Milk
• Blue"erry
• Kreen Apple
• Honey
• Kiwi
• Cemon
• Cychee
• Mango
• assion Aruit
• each
• ineapple
• Straw"erry
• 3atermelon
• Logurt
9esserts
• Bu"ur Cha Cha
• Coconut Milk Eelly
• 9urian Eelly
• Sago Cakes
• Sago udding
• Almond Cream Audge ,Badam Bar#i-
• Almond Cream Sweetmeat
• Banana Sweetmeat
• Carrot udding
• Carrot Sweetmeat
• Chick ea Alour Sweetmeat
• Condensed Milk 9essert
• Creamed Almonds
• Crisp Semolina Short"read
• Cumin and Tamarind 9rinks
• 9eep$Aried Semolina Savories
• Cassi ,Loghurt 9rink-
• Semolina udding
• Small Savory astries
• Sweet .ermicelli
• Thosai
Auture roducts
As seasons change% Capital Bu""le Tea Ca#e will "e o##ering products that will enhance
sales and satis#y its customers5 desires& 9uring summer months% Capital Bu""le Tea Ca#e
will su"sidi/e lower hot "everage sales with #ro/en co##ee drinks% as well as so#t drinks%
and other cold "everages& Capital Bu""le Tea Ca#e will also have special "everages
during holiday seasons% such as !gg Nog during the Christmas season and Hot Apple
Cider in the #all&
Capital Bu""le Tea Ca#e primary desire will "e to listen to its customers to ascertain what
they are looking #or most% and provide it&
Market Analysis
Bu""le tea is specialist drink increasingly "eing o##ered in ca#(s% co##ees shops and "ars&
)t originates #rom Asia and is made up o# hot or cold tea% milk% sugar and giant "lack
tapioca "alls& )ce is then added and the drink shaken to create the "u""le e##ect& Bu""le
tea is o#ten re#erred to as pearl shake% tapioca "all drink* "o"a ice tea and "u""le drink
among other things&
Owing to their in#luences% "u""le tea ca#(s are o#ten Asian$themed in d(cor and may also
sell Asian snacks and #ood& They are o#ten situated in #ashiona"le areas o# cities%
populated "y ur"an pro#essionals with high disposa"le incomes and an interest in
alternative eating and drinking venues&
Bu""le tea is a tea "everage that originated in Taiwan in the >J7<s& The term +"u""le+
re#ers to the tapioca "alls in the drink& These chewy tapioca "alls% or +pearls%+ are
consumed along with the "everage through a wide straw& Bu""le tea is especially popular
in many !ast Asian and Southeast Asian regions such as Taiwan% Brunei% China
,including Hong Kong and Macau-% Malaysia% the hilippines% Singapore% South Korea%
Thailand% )ndonesia% .ietnam and Australia&
Bu""le tea is a mi'ture o# iced or hot sweetened tea% milk% and o#ten other #lavorings& The
distinctive characteristics o# "u""le tea are the "lack gummy "alls made o# tapioca ,or%
more commonly in !ast Asia% yam starch-% called +pearls+ or +"o"a+ or "alls that sit at the
"ottom o# the cup& The pearls are larger than those #ound in tapioca pudding% with a
diameter o# at least @ millimeters% "ut smaller ones are occasionally used& They are
generally translucent "rown with a darker "rown center% although pearls o# other colors or
5Ielly cu"es5 have also recently "ecome availa"le&
The original "u""le tea consisted o# a hot Taiwanese "lack tea% tapioca pearls% condensed
milk% and honey& As this drink "ecame more popular% variations were created& )nitially
iced versions with a hint o# peach or plum #lavoring "egan to appear% and then more #ruit
#lavors were added until% in some variations% the tea was removed entirely in #avor o# real
#ruits& Today you can #ind shops entirely devoted to "u""le tea% similar to "u""le tea
ca#es o# the early >JJ<s& They usually contain colored pearls that are chosen to match
whatever #ruit Iuice is used% in addition to "rightly colored oversi/e straws #or sucking up
the pearls&
Bu""le tea is generally split into two types2 #ruit$#lavored teas% and milk teas& Milk teas
may use dairy or non$dairy creamers&
The mi'tures that make up "u""le tea vary& Several e'amples o# #lavors are straw"erry%
passion #ruit% mango% chocolate% and coconut% and may "e added in the #orm o# powder%
#ruit Iuice% pulp% or syrup to hot "lack or green tea% which is shaken in a cocktail shaker or
mi'ed in a "lender with ice until chilled& The mi'ture is usually com"ined with milk and
cooked tapioca pearls&
Bu""le tea "ars o#ten serve "u""le tea using a machine to seal the top o# the cup with
plastic cellophane& This allows the tea to "e shaken in the serving cup& The cellophane is
then pierced with a straw& Other ca#(s use plastic dome$shaped lids& !ven #ruit slushies
and smoothies can have "o"a added to the drinks&
These tapioca pearls are made mostly o# tapioca starch% which comes #rom the tapioca% or
"itter$cassava plant& )n other parts o# the world% the "itter$cassava plant may "e called
manioca or yuca& Cassava is native to South America% and was introduced to Asia in the
>7<<s& The "alls are prepared "y "oiling #or 6= minutes% until they are cooked thoroughly
"ut have not lost pliancy% and then cooled #or 6= minutes& A#ter cooking they last a"out M
hours& The pearls have little taste% and are usually soaked in sugar or honey solutions&
There are two shops that claim to "e the #irst creator o# Bu""le Tea& One is Ciu Han Chie
who worked in Chun Shui Tang teahouse Taichung City% Taiwan in the early >J7<s% and
e'perimented with cold milk tea "y adding #ruit% syrup% candied yams% and tapioca "alls&
Although the drink was not popular at #irst% a Eapanese television show generated interest
among "usinessmen& The drink "ecame well$known in most parts o# !ast and Southeast
Asia during the >JJ<s&
An alternative origin is the Hanlin Teahouse in Tainan City% Taiwan% owned "y Tu Tsong
He Hanlin Bu""le tea is made "y adding traditional white #enyuan which have an
appearance o# pearls% supposedly resulting in the so$called +pearl tea&+ Shortly a#ter%
Hanlin changed the white #enyuan to the "lack% as it is today&
)n the late >JJ<s% "u""le tea "egan to gain popularity in the maIor North American cities
with large Asian populations% especially those on the 3est Coast and !ast Coast and in
Te'as& The trend in the 8nited States started "y Collicup in the city o# San Ka"riel%
Cali#ornia and 1uickly spread throughout Southern Cali#ornia& The "everage has received
much attention #rom mainstream American media% including covers on National u"lic
Badio show Morning !dition and the Cos Angeles Times& Bu""le tea has spread
internationally through Chinatowns and other overseas Asian communities&
)n the 8&S&% maIor chains such as Bo"a Bee in Chicago are e'panding into su"ur"an
areas% particularly those with large Asian populations& Bu""le tea can also "e #ound in
maIor !uropean cities such as Condon and aris& Bu""le tea is also gaining in popularity
in Canada% particularly in and around the cities o# .ancouver% British Colum"ia* Toronto%
Ontario* and Montreal% Hue"ec where there are large Asian$Canadian communities& )t is
also gaining popularity in Australia% especially in Sydney% Bris"ane and Mel"ourne
where there are also high concentrations o# Asian immigrants and descendants&
Capital Bu""le Tea Ca#e5s #ocus is on meeting the demand o# a regular local resident
customer "ase% as well as a signi#icant level o# tourist tra##ic #rom near"y highways&
Market Segmentation
Customers are likely to "e2
 Loung pro#essionals may consider "u""le tea a novelty and lu'ury alternative to
the commuter% lunchtime or a#ter$work co##ee&
 Although it contains sugar% "u""le tea is a much healthier alternative to
car"onated #i//y drinks and may there#ore appeal to health conscious consumers&
 )t is popular #or people to hold meetings such as cra#t circles and "ook groups in
local ca#(s and co##ee shops and a "u""le tea ca#( could appeal as an unusual
alternative&
 9ue to its #airly new status% "u""le tea has a certain novelty value that might
appeal to people looking to try di##erent tastes and #lavors&
 O##ice workers looking #or a 1uick snack and drink or a rela'ing meeting place&
 Travelers will "e attracted to "u""le tea ca#es situated at transport locations such
as railway stations or airports* these can provide a use#ul way o# rela'ing "e#ore
or during Iourneys& )ncreasingly "u""le tea ca#es or outlets are "eing located at
transport terminals servicing clients throughout Iourneys% even short distance
commutes&
Capital Bu""le Tea Ca#e will #ocus on two di##erent market segments2 Commuters and
Captive Consumers&
Commuters are de#ined as any one or more individuals in a motori/ed vehicle traveling
#rom point +A+ to point +B&+ Capital Bu""le Tea Ca#e greatest concentration will "e on
commuters heading to or #rom work% or those out on their lunch "reak&
Captive Consumers would include those who are tethered to a campus environment% or in
a restricted entry environment that does not allow #ree movement to and #rom&
!'amples would include high school and college campuses% where there is limited time
"etween classes% and corporate campuses where the same time constraints are involved%
"ut regarding meetings and proIect deadlines% and special events* such as carnivals% #airs
or #estivals$$where there is an admission price to enter the gate% "ut e'iting would mean
another admission #ee% or where re#reshments are an integral part o# the #estivities&
Capital Bu""le Tea Ca#e #ocuses on the middle and upper$income markets& These market
segments consume the maIority o# "u""le tea&
&ocal 'esidents
Capital Bu""le Tea Ca#e wants to esta"lish a large regular customer "ase& This will
esta"lish a healthy% consistent revenue "ase to ensure sta"ility o# the "usiness&
Tourists
Tourist tra##ic comprises appro'imately D=N o# the revenues& High visi"ility and
competitive products and service are critical to capture this segment o# the market&
Target Market Segment Strategy
The dominant target market #or Capital Bu""le Tea Ca#e is a regular stream o# local
residents& ersonal and e'pedient customer service at a competitive price is key to
maintaining the local market share o# this target market&
Market (eeds
Because Capital City has a warm climate #or eight months out o# the year% "u""le tea
products are very much in demand& 9uring the remaining #our months o# the year% warm
drinks are in signi#icantly higher demand% along with a slower "ut consistent demand #or
"akery products& Much o# the day5s activity occurs at lunchtime% with a relatively steady
#low #or the remainder o# the day&
Service )usiness Analysis
The retail "u""le tea industry in the 8&S& has recently e'perienced rapid growth& The
climate in Capital City stimulates consumption o# cold "everages throughout the year&
Bu""le tea drinkers in the 8&S& are #inicky a"out the 1uality o# "everages o##ered at the
numerous ca#es across the region&
9espite low competition in the immediate area% Capital Bu""le Tea Ca#e will position
itsel# as a place where customers can enIoy a cup o# delicious "u""le tea with a #resh
pastry in a rela'ing environment&
Competition and )uying Patterns
Competition in the local area is somewhat sparse and does not provide nearly the level o#
product 1uality and customer service as Capital Bu""le Tea Ca#e& Cocal customers are
looking #or a high 1uality product in a rela'ing atmosphere& They desire a uni1ue% classy
e'perience&
)n addition to sales through company operated retail stores% leading competitors sell
drinks through other channels o# distri"ution ,specialty operations-& Carger chains vary
their product mi' depending upon the si/e o# each store and its location&
Carger stores carry a "road selection o# drinks in various si/es and types o# packaging% as
well as accessories such as storage containers% travel tum"lers and mugs& Smaller stores
and kiosks typically sell a limited line o# drinks and% may"e% a #ew accessories such as
travel tum"lers and logo mugs&
Technologically savvy competitors make #resh "u""le tea and "u""le tea$related products
conveniently availa"le via mail order and online& Additionally% a #ew larger competitors
have made mail order catalogs o##ering "u""le tea% certain #ood items% and select "u""le
tea$making e1uipment and accessories% availa"le&
3e"sites o##ering online stores that allow customers to "rowse #or and purchase "u""le
tea% gi#ts% and other items via the )nternet have "ecome more commonplace as well&
Strategy and Implementation
Bu""le tea ca#es shops are heavily reliant on impulse "uying and passing trade& There#ore
they will "ene#it #rom a strong image that is attractive to clearly identi#ia"le types o#
customer&
They are at the #ore#ront o# Oli#estyleP "randing and as such re#lect the changes in the
8SPs demographic make$up&
)ssues to consider when developing a "u""le tea ca#es client "ase include2
 .isi"ility $ location will "e vital& However% high street sites may "e di##icult to
o"tain due to high rent and intense competition% particularly #rom maIor chains&
 !ase o# access $ other locations to consider includes those close to transport% e&g&
near railway and "us stations&
 Shop design : "u""le tea ca#es usually cater #or "oth the leisure and takeaway
market "y having separate areas% e&g& a lounge area and a walk$in area& Many
chains have "een modeled on speci#ic themes such as Asian style& However% an
independent "u""le tea ca#e may need to di##erentiate itsel# #rom the large chains&
 Advertising in a variety o# local pu"lications will increase knowledge o# your
"u""le tea ca#e and a #avora"le review in the local media will increase interest&
 Consideration should "e given to additional activities that may attract custom& Aor
e'ample displaying art works o# local artists or students may "ring in customers&
Cive music could increase interest or hosting Oreading groupP meetings ,an
increasingly popular leisure activity- could "ring in additional and regular custom&
 romotional o##ers $ most "u""le tea ca#es attract younger customers% there#ore
promoting the "usiness to older age groups may "e worthwhile or o##ering deals
such as O"u""le tea and&&&P deals&
 Kood 1uality #ood and drink will "e an essential element as the market is highly
competitive&
 )# other drinks are served this could "e promoted along with any other unusual
elements o# the "usiness&
 3ord o# mouth recommendation will also "e important there#ore it is important
that you o##er good customer service and sta## are aware o# this re1uirement&
Capital Bu""le Tea Ca#e will succeed "y o##ering consumerPs high 1uality "u""le tea% as
well as "akery products with personal service at a competitive price&
Competitive Edge
Capital Bu""le Tea Ca#e5s competitive edge is the relatively low level o# competition in
the local area in this particular niche&
Capital Bu""le Tea Ca#e will involve the customers in community support e##orts "y
e'plaining that a portion o# their purchase price will "e donated to a charity o# their
choosing&
)n so doing% Capital Bu""le Tea Ca#e has2
 rovided a customer with a 1uality product at a competitive price&
 rovided the customer with a more convenient method #or o"taining their desired
product&
 9emonstrated how Capital Bu""le Tea Ca#e appreciates their loyalty and
patronage "y donating money to their personal cause&
Marketing Strategy
Capital Bu""le Tea Ca#e will "e implementing a low cost advertising4promotion
campaign which could involve drive$time radio% "ut not much more&
Capital Bu""le Tea Ca#e will rely on "uilding relationships with schools% charities and
corporations to provide signi#icant #ree pu"licity "ecause o# its community support
program& By giving charita"le contri"utions to these institutions% they will get the word
out to their students4#aculty4employees4partners a"out Capital Bu""le Tea Ca#e&
3ord o# mouth has always proven to "e the greatest advertising program a company can
instill& )n addition% the media will "e more than willing to promote the charita"le aspects
o# Capital Bu""le Tea Ca#e and provide the opportunity #or more e'posure every time
Capital Bu""le Tea Ca#e writes a check to another organi/ation&
ricing Strategy
Capital Bu""le Tea Ca#e pricing will "e compara"le to the competition% "ut with the
value$added #eature o# immediate convenience&
romotion Strategy
The long$range goal is to gain enough visi"ility to leverage the product line into other
regions and generate in1uiries #rom potential inventors& To do that% Capital Bu""le Tea
Ca#e needs2
 u"lic relations services at ;>%<<< per month #or the ne't year intended to
generate awareness o# editors and product in#ormation insertions% reviews% etc& )t
is anticipated that the school #undraising program will generate a #air amount o#
pu"licity on its own and will% perhaps% minimi/e$$or even eliminate$$the need #or
a pu"licist&
 Advertising at ;>%<<< per month concentrating on drive time radio& Capital
Bu""le Tea Ca#e will e'periment with di##erent stations% keeping care#ul track o#
results& As with the school #undraising program% Capital Bu""le Tea Ca#e e'pects
the #acilities and signage to "e a su"stantial portion o# our advertising& However%
in the start$up phase% Capital Bu""le Tea Ca#e needs to let people know where to
look #or the #acilities&
Marketing rograms
9istinctive Cogo2
Capital Bu""le Tea Ca#e wants to touch every customer every day& That is why the use o#
the term QCome AgainR with a smiling logo lends itsel# to "eing the corporate identi#ier&
9istinctive Buildings2
Capital Bu""le Tea Ca#e has worked closely with the manu#acturer to make the "uilding
distinctive% so that it is easy to recogni/e% and #unctional&
Advertising and romotion2
)n the #irst year% Capital Bu""le Tea Ca#e plans to spend ;6<%<<< on advertising and
promotion% with the program "eginning in SS& This would not "e considered a serious
advertising "udget #or any "usiness% "ut Capital Bu""le Tea Ca#e #eels the e'posure will
come #rom pu"licity and promotion% so most o# the #unds will "e spent on a good
pu"licist who will get the word out a"out the charita"le contri"ution program and how it
works in conIunction with the we"site&
Capital Bu""le Tea Ca#e also "elieves that word$o#$mouth advertising and #ree "everage
coupons will "e "etter ways to drive people to the #irst and second locations&
)n the second year% Capital Bu""le Tea Ca#e is increasing the "udget to ;?<%<<<% since it
will need to promote several locations% with particular emphasis on announcing these
openings and all the other locations& Capital Bu""le Tea Ca#e will continue to use
pu"licity as a key component o# the marketing program&
)n the third year% Capital Bu""le Tea Ca#e will increase its advertising and promotion
"udget to ;7<%<<<% with the maIority o# the advertising "udget "eing spent on drive time
radio&
Sales Strategy
There will "e several sales strategies put into place% including posting specials on high$
pro#it items at the window& The sta## will also hand out #ree drink coupons to those who
have purchased a certain num"er o# cups or something similar&
Capital Bu""le Tea Ca#e will also develop window sales techni1ues such as the sta##
asking i# the customer would like a #resh$"aked item with their "u""le tea&
Sales rograms
 Corporate Tasting !vents $ Capital Bu""le Tea Ca#e plans to host tasting events
#or customers on a 1uarterly "asis& !ach 1uarter% at the introduction o# each
season% Capital Bu""le Tea Ca#e will "e adIusting its menu to re#lect the changes
in the #lavors served&
 9rink Coupons $ At #undraising events #or schools and corporate events% we will
"e giving away drink coupons as door pri/es or awards& This encourages the
person to come in #or their #ree "everage and "ring a #riend or "uy a "aked item or
a package o# our "u""le teas&
 Cham"er o# Commerce and ro#essional Mem"erships $ Because o# the need to
sell our services% Capital Bu""le Tea Ca#e will "e an active participant in the
Begional Cham"er% local Cham"ers o# Commerce% Aoodservice Associations% and
Specialty Beverage Associations& The e'posure and education that these
organi/ations provide is outstanding% "ut e1ually important are the contacts and
opportunities made availa"le&
Management Team
A "u""le tea ca#e is not la"or intensive% is simple to operate and does not necessitate that
the owner "e on site& The key is to get things set up correctly in the early stages and to
use e##ective operating systems to save valua"le time% e##ort% and money&
Eohn Smith has e'tensive e'perience in sales% marketing% and management% and was vice
president o# marketing with "oth Eansonne 0 Eansonne and Burper Aoods&
TLour detailsU
Alan Eones "rings e'perience in the area o# #inance and administration% including a stint
as chie# #inancial o##icer with "oth Ala'#ield Euices and the national "u""le tea store
chain% Bu//Cups&
T9etailsU
Strategic Direction
S*OT Analysis
This is a summary o# the "usiness5s most important strengths% weaknesses% opportunities
and threats&
Strengt$s o+ t$e )usiness
!'cellent 1uality product
,*$ic$ means t$at, Adds to reputation&
Kood management skills&
,*$ic$ means t$at, 3ell run "usiness
Kood a"ility to e'tract in#ormation&
,*$ic$ means t$at, Can control the "usiness&-
*eaknesses o+ t$e )usiness
New layer&
,*$ic$ means t$at, Credi"ility pro"lem may a##ect initial sales
Cack o# systems
,*$ic$ means t$at, The company needs to develop systemised operational 0
sales techni1ues or sacri#ice pro#its
Opportunities in t$e Marketplace
Add$on products such as SS
,*$ic$ means t$at, A potentially enormous market #or TLO8B COMANL NAM!U
to tap into&
Krowing market segments&
,*$ic$ means t$at, TLO8B COMANL NAM!U should target these segments&
T$reats in t$e Marketplace
)ncreasing supplier prices&
,*$ic$ means t$at, Besulting in reduced pro#ita"ility&
9eclining si/e o# the SS segment&
,*$ic$ means t$at, Need to #ocus on growing segments to spread the company5s
port#olio
T$e Actual Plan
)usiness O!ectives
Corporate O"Iectives ,Koals-
Short Term Corporate
To achieve a sales level o# ;'''''
To achieve pro#it level o# ''N
Cong Term Corporate
To achieve sales in 6<>B o# ;'''''
To achieve sales in 6<>C o# ;'''''
To achieve sales in 6<>9 o# ;'''''
Marketing O"Iectives ,Koals-
Tyour productU
V> Segment2 To achieve sales to ;''''''
V6 Segment2 To achieve sales to ;''''''
VD Segment2 To achieve sales to ;''''''
Other2 To achieve sales to ;''''''
New roducts
To evaluate and launch new products or services which will turn over ;'''''' in the #irst
year&
roduction O"Iectives ,Koals-
To achieve production level o# ''''' ,your product-&
To increase production capacity to ''N o# plant capacity&
To reduce production costs "y 'N
Other O"Iectives ,Koals-
To not e'ceed a production "udget o# ;>''''''
To not e'ceed a marketing "udget o# ;''''''
To not e'ceed a payroll "udget o# ;'''''
To not e'ceed a general overhead "udget o# ;''''''
The maIor task o"Iectives #or each area o# the organisation% together with responsi"ilities
and timings are detailed in the Boll$Out lan&

Marketing Plan
MABK!T)NK OBE!CT).!S
Sales O"Iective To achieve sales "y WWN to ;WWW
Sales O"Iectives "y Market Segment&
V> Segment2 To achieve sales to ;''''''
V6 Segment2 To achieve sales to ;''''''
VD Segment2 To achieve sales to ;''''''
Other To achieve sales to ;'''
BOMOT)ONAC STBAT!K)!S
rint Advertising
9evelop a corporate "rochure&
Eune 6<>A
Advertise in local pu"lications
Ean 6<>A
Advertise monthly in maga/ines that are speci#ically targeted to the SS and SS segments&
Ean 6<>A
Advertise monthly in maga/ines that are aimed at the general industry&
Ean 6<>A
Cead Keneration rogram
Conduct monthly on$going lead generation program& Send out monthly direct mail lea#lets
with response coupons& Huali#y leads and make appointments "y using telemarketing sta##&
Oct 6<>A
+Centres O# )n#luence+ rogram
ersonally contact at least ten potential partners each week&
roduce a monthly newsletter that shows e'amples o# ,your products- and how customers
have "ene#ited #rom using them&
Oct 6<>A
B rogram
B release to "e initiated each month to various trade Iournals and maga/ines&
Eul 6<>A
Sales Aorce
!mploy telemarketing sta##&
Sep 6<>A
!mploy sales specialist #or SS segment&
Mar 6<>A
)mplement a new structural program #or the sales #orce% allocating sales reps to accounts and
segments rather than area&
Ean 6<>A
Organise training program to "e implemented&
Ean 6<>A
Cost Customers
Contact monthly all past customers that have not re$ordered to ask why not and see whether
we can win "ack their "usiness&
9ec 6<>A
Aollow up !n1uiries
Contact all en1uirers monthly and determine i# they have purchased #rom a competitor and%
i# so% why&
9ec 6<>A
!'isting Customers
Aollow up all new customers two weeks a#ter they purchase to ensure they are satis#ied with
the product&
Eul 6<>A
Send 1uarterly newsletter to e'isting customers to keep them in#ormed o# our other
products&
Ean 6<>A
Try and up$sell all en1uiries #or our standard range to our premium range&
Ae" 6<>A
Sales romotion
9evelop an ongoing sales promotion to target e'isting customers&
Aug 6<>A
B)C)NK STBAT!K)!S
rice Cevel
Maintain price level in all segments at ''N higher than competitors to rein#orce the 1uality
image&
Eul 6<>A
9)STB)B8T)ON STBAT!K)!S
Channel
9istri"ute direct to the client where possi"le& 8se manu#acturer5s agents in outer regions&
Apr 6<>A
K!N!BAC MABK!T)NK STBAT!K)!S
Competitor ro#ile
Keep updated competitor pro#ile&
Eun 6<>A
Marketing in#ormation system
9ocument on every en1uiry +How did you hear a"out usG+
Eul 6<>A
9ocument on every order +How did you hear a"out usG+&
Eul 6<>A
roduce monthly sales reports "y product% "y market segment% "y territory and "y sales
representative&
Mar 6<>B

-inancial Plan
A)NANC)AC Ne't Lear5s O"Iectives
Net ro#it To achieve #orecast net pro#it o# ;'''''&
Kross ro#it To increase the average gross margin #or
all products #rom ''N to ''N&
Budget To not e'ceed the #ollowing e'pense "udgets&
Marketing Budget ; '''''''
ayroll Budget ; '''''''
Management Overheads ; '''''''
A)NANC)AC STBAT!K)!S
Cash Alow
!liminate cash shortage in the traditional tight periods o# 9ecem"er to Eanuary
Eun 6<>A
Collection 9ays
Beduce the average collection days #rom '' days to '' days&
Eun 6<>A
ayment 9ays
Maintain payment o# "ills% on average% to '' days&
Eun 6<>A
!'penses
9evelop and implement new policies on approval and signatories on e'penses&
Mar 6<>C
Ceases
ay o## the e'isting lease on capital e1uipment% thus reducing the monthly #inancial
"urden&
Eun 6<>A
Overdra#t
Beduce the overdra#t #rom ;'''''' to ;'''''''
Eun 6<>A
3ages
ay all wages on a monthly "asis instead o# weekly&
Ean 6<>A
New !1uipment
Organise #unding #or the ;''''''' e'penditure on new e1uipment&
Ean 6<>A
ay"ack
!nsure a pay"ack on new e1uipment through sales o# one year&
Eun 6<>B
)nventory
)mprove the num"er o# stock turns to ''''' a year&
Eun 6<>A
Bent
Negotiate new terms on the premises and reduce e'isting payments "y ''N
Aug 6<>B
Bank Charges
Benegotiate with the "ank and consolidate some outstanding loans with lower interest
rates&
Aug 6<>B

Organisational Plan
OBKAN)SAT)ONAC AN9 MANAK!M!NT
Ne't Lear5s O"Iectives
Budget To not e'ceed the payroll "udget o# ;'''''''
Sta## To employ or re$deploy a total o# ''''' #ull$time
and part$time sta## over the ne't year&
H8MAN B!SO8BC! STBAT!K)!S
Organisational
9raw organisational chart&
Aug 6<>A
9evelop incentive scheme related to Io" re1uirements&
Aug 6<>A
olicies and procedures
9evelop policies and procedures manual&
Euly 6<>A
!mploy or re$deploy sta##
!mploy two machine operators&
Mar 6<>A
!mploy one 1uality control sorter&
May 6<>A
!mploy telemarketers&
Sep 6<>A
!mploy one specialist SS salesperson&
Mar 6<>A
!mploy one marketing assistant&
Ae" 6<>A
!mploy one accounts receiva"le person&
Eul 6<>A
Training
Carry out training needs analysis&
Ean 6<>A
Morale
)nstall suggestion "o'&
Ean 6<>A
Organise monthly meetings to #ollow up tasks
Ean 6<>A