2 Retail Sector2
3 Retail Format3
4 Retail Location4
5 Competitive Environment and Positioning5
5.1 External Environment6
5.1.1 Social-culture Factor6
5.1.2 Current Economics and China’s Tea Industry7 5.2 Internal Environment7
5.2.1 Potential Competitors7
5.2.2 Competitors and Barriers to Entry8
6 Retail Marketing Management9
6.1 Product Strategy9
6.2 Pricing Strategy10
6.3 Promotion Strategy11
7 Retail Operation Management12
7.1 Store Design12
7.1.1 External Design13
7.1.2 Internal Design13
7.2 Store Information and Staff Management16
7.4 Inventory Management17
7.4.1 Inventory Reordering and Recording17
7.4.2 Inventory Process and Inventory Checking18
8 Supply Chain Management19
9 Links and Cohesion22
Appendix 1: Logo of Tea Time25
Appendix 2: The Proportion of Drinks in UK26
Appendix 3: Age Structure (Source: ONS)26
Appendix 4: Products27
Appendix 5: Recommend External Store Design28
Appendix 6: Layout of Tea Time28
As a university town, Lougborough benefits from its strong road and rail transport links and also benefits from a growing number of residents and student population which ultimately became the dominance of the Brough. In town center, Loughborough has a relatively good parking provision. There are over 2,000 spaces in several surface and multi-storey car parks across the town centre and the Rushes development will also provide a further 40 spaces. The tiny town therefore begins to present business opportunities by the development of Rush Square.
Tea, as a regular drink before the coffee boom, is still popular among the British people. Nevertheless, this report focuses on how to launch business plan for a tea shop. Based on the theories of retail and analysis of market data, we developed a series of marketing strategies to open a tea shop in Loughborough, and promote Chinese specialty tea. The shop name is designed as Tea Time, which indicates high quality of tea and leisure of life.
2 Retail Sector
The Tea Shop is chosen as retail sector we are going to launch in Loughborough. The reasons are listed as follows.
Firstly, UK is famous for its tea culture, 85% families have the habits of drinking tea. According to the chart below, tea contributes the largest proportion of drinks consumption in UK (2009 http://www.cnfood.gov.cn/) (See Appendix 2). A survey by the consumer research group Mintel shows that almost 80% of British people drink tea. In the over-65 age group that figure is 85%. Of those aged 15 to 24, just 72% drink tea. Loughborough is a university town, and there are approximately 17,500 students studying and living here, 61% of whom are undergraduates and 32% are pursuing postgraduate courses and/or research. Most students’ ages are between 18 and 26. Most of these young people are not interested in tea as well as older citizen and prefer cola and energy drink.
Secondly, there are only a few competitors in loughborough. Loughborough is a living town with many kinds of small retail stores and several supermarkets. The business trade here is not very large, but prosperous. In this mini mature market, there are not the same shops with our idea which indicates that could be commercioganic and can add new vitality to this market.
3 Retail Format
Retail format is an important issue for retailer. Many natures of retail proposition should be considered when facing the target consumers. The natures of Tea Time format have been identified by evaluating all aspects of the business: [pic]
Tea Time is an independent retailer which is owned by individuals. The merchandise range of Tea Time is medium and high grade Chinese tea. It only sets tea product area. The small scale is suitable for the store...