Kadak day 5

Adeem Fenster

Shashi Shrimali

Stella Chan

Sanjay Bharadwaj

Richard JamesNeeraj Lal

Total Customer Interviews: 242 to date(21 in person + 42 online + 3 mall visits + 2 store manager interviews yesterday +

BUILT A WEBSITE!)

Authentic Asia Tea T4U

Entry

Exit

Cups Indian Tea Chinese Tea English Tea Herbs & Spices Sweeteners

Pick a cup Pick a teaPick a herb Pick a

sweetener

Boil your tea

Pay money

Enjoy your tea and come back

Store your TeaId

MVP

Takeaways

Tea café

• High-end tea café in NY city => set for failure

•Key costs: Rent, Utility, Salary, and ingredients…

•Market for both hot and cold tea

• Flagship store => for branding

• Way to make money => go outside New York City

• Sell your products via partners

• No brand => no partnering with restaurant

Kiosks

•Low fixed costs/rent

• High foot traffic

•Customized Kiosks available at $20K- $40K

• High visibility => low marketing costs

Tested the concept: Kiosk at a mall

Click the step that’s most important to your tea experience

Like the idea 86%

Hate the idea 1%

I wish the idea were...

13%

Testing the Kiosk Concept

Coffee 19%

Cold tea drinks 22%

Food 28%

Pastries 24%

Other 7%

What are we missing?

10%

10%

24%

41%

41%

59%

Setting how long I want my tea to boil

Something else...

Having someone make the tea for me

A lounge to hang out and enjoy my tea

Remebering the way I made my tea so I don't have to do it again

Choosing the tea leaves that I want

What's most important?

Absolutely 49%

Maybe 33%

No way 10%

Only if... 8%

Would you buy?

Validation but still needs improvement…

How will we Get, Keep and Grow Customers?

• Consistent quality

• Increase product variety

• loyalty program tea card

• word-of-mouth from students

(campuses)

• Tea cart promotion via

Facebook or Tweeter

• Tea tasting event to collect

customer feedback (via iPad)

Kadak – 04/16/2012

Who are our most important customers?

• repeat customers, Asian-

immigrants consumers

• health conscious customers

What are their archetypes?

• The Indian

• The rising teen

• Healthy parents

• Undergrads

• Baby-boomers

What Job do they want us to get done for them?• make the tea (incl. picking

the best ingredients)

• education of tea

What Key Activities do we require?

• Purchasing raw material

• Brewing tea

• Setting up retail outlets

• Advertising, & marketing

• Setting up customer feedback

channel and analysis

• Business development with

campuses

• Product mix creation

• FP&A management

• Hiring

Which of our customer’s problems are we helping

to solve?• consumer have limited access

to authentic Asian tea in a

retail format

Which customer needs are we satisfying?

• Desire to consume authentic

Asian tea outside home

What are the Key Features of our product that match customers

problem/need?• taste of our tea (quality)

• the availability of tailored

flavor

• speed of delivery

• convenience

Who are our Key Partners?

• Indian stores and Asian

stores

• Eventually tea makers

• Indirect distribution

through -- subway, panda

express

Who are our key suppliers?

• Indian store from NJ

• Chinese stores from

Chinatown

• Grocery stores such as

Wal-mart

• Restaurant

utensils/hardware

suppliers

What are we getting from them? Giving

them?• Milk, sugar, Splenda, tea

leaves, cups, spices, pots/p

ans

• MONEY, more revenue

What are the most important costs inherent in our business model?

Fixed

• Rent

• Equipment, furniture and fixtures

Variable

• Raw materials & supplies

• Employee salaries

How do we make money? What’s the revenue model? Pricing tactics?

• Low Intro promotion price to attract customers($1.99)

• Keep the price close to Starbucks thereafter

• Never price below breakeven even during promotion period

• Find ways to give them discounts (survey --- buzz discounts)

Through which Channels do our Customer

Segments want to be reached?

• direct retail

• direct-to-home

delivery

What Key Resources we require?

• Money

• Retail outlets

• POS system to track sales

• SAP system for accounting

• License from NY / Campus

approval

• HR for hiring & training

• Tea brewing equipment


• Consistent quality• Increase product variety

• loyalty program tea card

• word-of-mouth from students

(campuses)

• Tea cart promotion via

Facebook or Tweeter


customer feedback (via iPad)

Kadak – 04/17/2012 (morning)


repeat

customers, Asian-

immigrants consumers

• health conscious

customers


• The Indian

• The rising teen

• Healthy parents

• Undergrads

• Baby-boomers

What Job do they want us to get done for them?• make the tea (incl.

picking the best

ingredients)




• Brewing tea






campuses


• FP&A management

• Hiring


to solve?

• consumer have limited

access to authentic Asian

tea in a retail format


• X Desire to consume

authentic Asian tea

outside home


problem/need?

• taste of our tea

(quality)

• the availability of

tailored flavor • speed of delivery

• convenience



stores




express




Chinatown


Wal-mart

• Restaurant

utensils/hardware

suppliers




ans



Fixed

• Rent


Variable




• Low Intro promotion price to attract customers($1.99)






direct retail/franchise

model

• direct-to-home

delivery


• Money

• Retail outlets




approval




• Unique, customized tea, their

way



• loyalty program TEA I.D.

Tea Lab – 04/18/2012


• repeat customers

• health conscious customers

• Customers looking for a fun

new experience


• The Indian

• The rising teen

• Healthy parents

• Undergrads

• Baby-boomers

What Job do they want us to get done for them?• Custom tea their way!

• Fun/unique ingredients

• make the tea (incl. picking the

best ingredients)


• cool place to hang out



• Brewing tea






campuses


• FP&A management

• Hiring


to solve?

• consumer don’t have

access to quality tea outside

the home

• Formula/proportions are

off


• Tea the “way I like it”

outside the home

• Cool experience / social

setting for tea

• Tea w/out tea bags

What are the Key Features of our product that match customers problem/need?

• taste of our tea (quality)

• Experience• the availability of tailored flavor

• speed of delivery

• Convenience



stores




express




Chinatown


Wal-mart

• Restaurant

utensils/hardware

suppliers




ans



Fixed

• Rent


Variable




• Online sales for home consumption

• Data – based on the TEA ID card!






• Teal lab stores

• direct-to-home

delivery

• Online


• Money

• Retail outlets




approval




• Unique, customized

tea, their way



• TEA I.D.

• word-of-mouth from

students (campuses)


customer feedback (via

iPad)

Tea Lab – 04/19/2012


repeat customers

health conscious

customers

Customers looking for a

fun new experience


The rising teen

Healthy parents

Undergrads

What Job do they want us to get done for them?

Custom tea their way!

Fun/unique ingredients

make the tea (incl. picking

the best ingredients)

education of tea

cool place to hang out


Purchasing raw material

BRAND – Tea Lab

Brewing tea

Setting up retail outlets

Advertising, & marketing

Setting up customer feedback



campuses


• FP&A management

• Hiring


to solve?

consumer don’t have access

to quality tea outside the

home

Formula/proportions are off


Tea the “way I like it” outside

the home

Tea w/out tea bags

Cool experience / social

setting for tea


problem/need?

Taste of our tea (quality)

The availability of tailored

flavor

Speed of delivery

Convenience

Experience



stores



through – franchises in

airports, hotels?subway,

panda express




Chinatown


Wal-mart Tea merchants

Kiosk manufacturers

Restaurant

utensils/hardware

suppliers


them? Milk, sugar, Splenda, tea

leaves, cups, spices

MONEY, more revenue


Fixed

Rent

Equipment, furniture and fixtures

Variable

Raw materials & supplies

Employee salaries









• Tea lab stores

• direct-to-home delivery

• Online


• Money

• Retail outlets




approval



Tea lab kiosks

• Unique, customized

tea, their way


• Increase product

variety

• TEA I.D.

• Tea Pots

Tea Lab – 04/20/2012

Mall shoppers

repeat customers

health conscious

customers

Customers looking

for a fun new

experience

The rising teen

Healthy parents

Undergrads

Custom tea their way!

Fun/unique ingredients

Have us make your tea

education of tea

cool place to hang out

Purchasing raw material

BRAND – Tea Lab

Brewing tea

Setting up kiosks

Advertising, & marketing

Setting up customer

feedback channel and

analysis


• Hiring + training

consumer don’t have

access to quality tea

outside the home

Formula/proportions

are off

Tea the “way I like it”

outside the home

Taste of our tea

(quality)

The availability of

tailored flavor

Remember me

Experience

Cool experience /

social setting for tea

• Tea

manufactures

• Mall

managers

• Other raw

material

suppliers

Kioskåmanufactu

rers

Restaurant

utensils/hardwar

e suppliers

Milk, sugar, Sple

nda, tea

leaves, cups, spi

ces

Equipment

Fixed

Rent

Equipment, furniture and fixtures

Variable

Raw materials & supplies

Employee salaries

• Mall kiosks


• Flagship store


• Tea lab kiosks

• Flagship store

• Money

• Custom kiosks

• POS system to track

I.D

• HR for hiring &

training

• Tea brewing

equipment

Walk

in with

an idea

End of

day 2

End of

day 1

End of

day 3End of

day 4

Our Journey in this class ……

Beginning

Day 1

Education

Kadak day 5