Market Research on Hot Tea Shops- Outlet profiling, Business, SOP, Operation and Service model of Hot Tea Shops

1. HOT TEA SELLING OUTLETS - HTS
PRAGATI
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2. INTRODUCTION
PRAGATI- A name given to a project where in our core objective is
to reach outlets who actually make hot tea and sell it to the n
consumers.
Why Pragati ?
As the name Pragati itself suggest that moving ahead positively is
nothing but just doing better. In context of our project – HTS is a set
of outlets which sell hot tea. We are in GT- Retail & Wholesale, MT,
Institutions and now trying to register a remarkable footprint in HTS
channel and hence named it PRAGATI.
PRAGATI
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3. 3
Tea Co.
GT
MT
INST.
HTS
Preferred channels by
Tea Companies
PRAGATI
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4. HTS- Hot Tea Selling Outlets
HTS are those outlets which make hot tea and sell it to n
consumers. HTS has been recognized as a significant channel to be
catered by various tea companies be it a national players such as
HUL, TATA or regional players such as WAGH BAKRI, MOHINI or be it
a local players.
Why HTS- HTS is an important channel which needs to be catered
directly and hence every Tea Company wants to be there be it a
National players or Regional players. So why should we miss ?
PRAGATI
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5. HTS- How it works ?
HTS buys tea as per their own convenience in terms of Delivery
time, payment, collection, frequency etc .
HTS make hot tea and sell it to n consumers.
HTS uses a different blend than normal CTC tea.
HTS buys tea in Cash, Credit or by making partial payment.
HTS differs from other HTS outlets in way of doing business.
PRAGATI
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6. HTS- SWOT
Strengths Weakness Opportunities Threats
Hot Tea is Sold
Tea.
Reach to n
consumers
Decent Volume
Require unique
blend.
Timing of delivery
And collection
Highly Switchable
Highly
Competitive.
Delivering
prescribed blend.
Timely Collection
& Retention.
Can get decent
business
Can increase
consumer base
Can create Strong
brand awareness
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7. ROAD TO HTS >>>
PRAGATI
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8. Modus Operandi
Selection of Markets for doing Pilot.
Census of HTS in selected markets .
Validation of Census done.
Designing of RCP .
Hiring of Winter Interns.
Hiring of HTS-Hot Tea Salesman.
Finding suitable blend to Cater HTS.
Final Rollout of the plan on ground.
Measuring & Controlling.
PRAGATI
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9. Markets for Pilot
HTS Project would be piloted in 2 different markets in MP where in 1
would be a market having good Goodricke business while the 2nd
market would be a market where in Goodricke presence is not so
good as of now.
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10. Why in Indore & Gwalior ?
Indore being a good market in terms of
Retail Volume, Brand Equity or
awareness , Strong infrastructure ,SO
H.Q, large no. of HTS outlets led to go
for Indore to pilot.
Gwalior being a weak market having
less brand awareness want to
understand the challenges we would
have in HTS led business model. Also
having Good infrastructure, SO H.Q and
bigger markets than other weak markets
in MP led to opt for Gwalior.
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11. Hiring of Winter Intern
We will hire 2 graduate students as winter intern for Indore and Gwalior markets. For
Gwalior, intern would be hired from collages in Gwalior and for Indore, intern would be
from a collage based in Indore.
Interns would be given a internship certificate along with reasonable stipend.
Research Period- 1st Feb to 10th Mar’18.
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PRAGATI
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12. HTS- Research Questionnaire
Market Research on Hot Tea Selling Outlets
Outlet Type- EHTS MHTS
Outlet Name- Owner Name-
Address- Contact No:-
1. How would you specify your outlet location?
A) Commercial b) Transactional c) Residential d.) Others.
2. What is the Timing you open your outlet?
A) 6 am to 8 pm b) 6 am to 9 pm c) 6 am to 10 pm d) 6 am to 12 pm
3. Which is the pick time of your business?
A) 6 am to 12 pm b) 12 pm to 3 pm c) 5 pm to 8 pm d) 8 pm to 12 am
4. How many cups you serve every day?
A) 300 Cups b) 500 Cups c) 700 Cups d) 1000 Cups or More
5. How much tea you need every day?
a) 500 gm b) 750 gm c) 1kg d.)More than 1 kg
6. You buy tea from
a) Wholesale b) Hawker c) Company SM D.)MT outlets.
7. What is your frequency of Tea buying?
a) Daily b) Alternate day c) Weekly d) Fortnightly e) Monthly
8. You buy tea in
a) Cash b) Credit------------------
9.) What are the main reasons you buy tea from where you are buying?
a) Tea quality b) Correct Rate c) Service d) Credit e) Others………………….
10. Can you buy tea as per your requirement from Company who can deliver at your shop?
a.) Yes b) No……………………………………….
11. Can Tea Company do Branding at your Shop?
a.) Yes b.)No………………………..
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13. 13
Research Cost
Particulars Cost (Rs.) Expected No. of Outlets
Intern Stipend 20000 1170*
Misc. 3000 Stationary
Total Exp. 23000
Research Cost & Expected HTS
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Servicing to HTS cost would be shared later on post RCP Finalization.

14. Census of HTS & Validation
Intern would be briefed about the project in detail and will be
given a proper training on how to go ahead along with a pre
designed questionnaire.
Intern would be asked to list down the no. of HTS outlets in given
markets along with necessary information required.
Post Census Local Team along with newly hired Tea Salesman will
validate the outlets given by intern.
PRAGATI
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15. Designing RCP & Rollout Plan
Post Validation of HTS outlets Final RCP would be designed to cater
these HTS effectively and economically.
Post RCP completion final Rollout plan would be designed
consulting shareholders and keeping in mind the research done by
interns which will be further executed on ground post approval.
PRAGATI
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16. 16
Comprehensive Study on HTS Business
and Its Behavior

17. 17
INTRODUCTION
Market - INDORE
Method of Study- Questionnaire & F2F Interview.
Sample Size- 195 Hot Tea Shops.
Duration of Study- 2nd Feb’18 to 9th Feb’18.
No. of Interviewer (Interns) – 2
Target No. of HTS to Study by 10th Mar’18 – 1000
No. of HTS Visiting per day – 30 ( by 2 interns)

18. 18
Key Findings

19. 19
Exclusive
33%
Mix
67%
Type of HTS – Exclusive Vs Mix
Source: On the basis of 195 HTS’s visited.

20. 20
HTS Located at
32%
8%
7%
22%
15%
16%
Commercial
Transactional
Residential
Com. & Tran.
Com. & Residn.
Tran & Res.
Source: On the basis of 195 HTS’s visited.

21. 21
25%
20%
32%
23%
6am to 8 pm 6 am to 9 pm 6 am to 10 pm 6 am to 12 am
HTS Operates during
Source: On the basis of 195 HTS’s visited.

22. 22
57%
43%
You Others Both
Outlet run by
Source: On the basis of 195 HTS’s visited.

23. 23
How Old your shop is
11%
14%
6%
4%65%
6 Months 1 Year 2 Years 3 Years More tham 3 Years
Source: On the basis of 195 HTS’s visited.

24. 24
Outlet is Owned by
34%
65%
1%
You Rented Lease
Source: On the basis of 195 HTS’s visited.

25. 25
Pick time of Business
6 am to 12 pm
3%
5 pm to 8 pm
10%
1 & 3
48%
1, 2&3
4%
1,3&4
15%
All time
20%
Source: On the basis of 195 HTS’s visited.

26. 26
52%
11%
17%
20%
500 gm 750 gm 1 kg More than 1 kg
Tea Consumption per day
Source: On the basis of 195 HTS’s visited.

27. 27
Wholesale
76%
Hawker
23%
Co. SM
1%
HTS’s buy Tea from
Source: On the basis of 195 HTS’s visited.

28. 28
Daily
45%
Alternate day
11%
Weekly
15%
Biweekly
11%
Fortnightly
2%
Monthly
16%
Frequency of Tea buying
Source: On the basis of 195 HTS’s visited.

29. 29
You buy Tea in the form of
Loose
86%
Packaged
14%
Both
0%
Source: On the basis of 195 HTS’s visited.
1 HTS found to use both Packaged & Loose.

30. 30
Packaged Tea Brands in HTS
Red label
3% Wagh Bakri
4%
Apsara
14%
Goodricke
4%
Others
75%
Source: On the basis of 195 HTS’s visited.

31. 31
250 gm
7%
500 gm
67%
1 kg
19%
5 kg
1%
Bags
6%
Pack Size Available in HTS
Source: On the basis of 195 HTS’s visited.

32. 32
Cash
87%
Credit
13%
Cash Vs Credit Tea buying by HTS
Source: On the basis of 195 HTS’s visited.

33. 33
Tea Quality
47%
Coorect Rate
11%
Service
4%
Qlty. Rate.Service
36%
Others
2%
Reasons to buy Tea from current source
Source: On the basis of 195 HTS’s visited.

34. 34
150- 200
8%
200-250
80%
250-300
10%
300 & above
2%
Price points operating in HTS
Source: On the basis of 195 HTS’s visited.

35. 35
Consumer profile at HTS’s
Source: On the basis of 195 HTS’s visited.
Working Prof.
2%
Students
4% Workers
5%
Working Prof.&
Students
16%
Students
&Workers
35%
All type
38%

36. 36
37%
31%
10%
10%
12%
10 Ltr- 15 Ltr
15 Ltr. - 25 Ltr.
25 Ltr. - 35 Ltr.
35 Ltr.-45 Ltr.
More than 45Ltr.
Milk Consumption per day
Source: On the basis of 195 HTS’s visited.

37. 37
Regular
47%
Packaged
50%
Both
3%
HTS Uses Milk of
Source: On the basis of 195 HTS’s visited.

38. 38
Regular
28%
Sanchi Gold
42%
Amul
12%
Saboro
6%
Sourabh
8%
Others
4%
Milk brands available in HTS’s
Source: On the basis of 195 HTS’s visited.

39. 39
Yes
3%
No.
97%
Do you make blend by your Own
Source: On the basis of 195 HTS’s visited.

40. 40
Yes
61%
No
39%
Can you buy Tea if Company delivers at your shop
Source: On the basis of 195 HTS’s visited.

41. 41
Yes
53%
No.
47%
Can company do branding at your shop
Source: On the basis of 195 HTS’s visited.

42. 42
Inferences of Study

43. 43
Inferences of Study
HTS are scattered in terms of they are situated in Indore markets.
Pick time of business for HTS is morning & evening.
Around 60 % HTS are more than 3 years old in business.
Around 75 % HTS are buying tea from wholesale & around 23 %
buying from Hawker.
Close to 45 % HTS are buying tea on daily basis.
Around 85% HTS are buying tea of local players in packaged form.
500 gm pack & 1kg pack are dominating in pack size with 66 % and
19 5 respectively.
50 % HTS are buying tea because of Quality while 36 % are buying
because they are getting Quality, Rate & Service together.

44. 44
Qualitative Insights
HTS having sale of more than 1 kg per day are buying
from someone for long time & they have strong
relationship.
Most of the credit is for 1 bill.
HTS having sale of 1 kg plus per day can’t compromise
with quality of tea.
HTS can think of other source of getting tea only and only
if someone can supply desired Quality, Rate & Service all
three same time.

45. 45
Suggested Way Forward

46. 46
Target HTS- 40
Since we are piloting, no. of HTS in first phase would be
40 so that span of control would be more and scale of
mistakes would be minimal.
These 40 HTS’s would be HTS’s having tea consumption
of 1 kg or more per day.

47. 47
Suggested Distribution Model
Goodricke Depot-
Dewas
DB
Tea Sales
man
HTS HTSHTS HTSHTS
Exclusive for 20 HTS.
Common DB as of now
Frequency Daily with ready stock
Cash & Credit both but
credit of 1 bill & for HTS
who are in same business
for at least a year and at
same place.

48. 48
Suggested 4 P’s for Indore Market
Product
Price
Place
Promotion
oGoodricke 500 gm & 1 kg Pack. (HTS Pack)
o1 bag of 5 packs & 10 packs respectively.
oBetween 210 to 230 per kg.
oIndore.
o Same can be replicated with key learning's in other
markets too .
o Branded 5 Kg bag having 5 & 10 units of 1 kg & 500
gm respectively.
o Paper cups & T shirts
o Outlet branding

49. 49
Trade Engagement
HTS Meet:
Objective-To brief about Goodricke and its brand.
To understand them & their business & need.
To connect them emotionally with gratification.
Cost: 25000
Proposed date- 1st week of March’18.

50. 50
Trade Inputs
1 kg sugar on 1 kg HTS pack.
1 Branded T- shirt or 100 branded paper cup on 5 kg.
1 scratch card ( Rs. 10 to Rs 50 ) On second & onward
purchase for first 3 months.
Volume lock in program or loyalty program would be shared
later on.