The herbal tea shop!!!!!!! Essay

The herbal tea shop!!!!!!!

Cover and Table of Contents Business name; Name of principals; Date; Major sections; Page numbers 0 1 2 3 4 Executive Summary A one-page clear overview of the business concept. It should highlight the key areas of your plan. Disha

Business Description Basic information (address, phone, website, email, etc.); Legal form (sole proprietor, partnership, corporation, etc.); Mission statement, goals & objectives; Management Team - Bhaskar

Product or Service Description Competitive Advantage; Markets competitors serve and marketing strategies, top competitors relative market share; Barriers to entry, strategies to overcome barriers 0 1 2 3 4 Market Analysis Applicable documented research; Demographics, geography, psychographics, behavior; Target Market; Product, Price, Promotion, Place - Niklaus

Operational Plan Production methods and control; Location; Permits and licensing; Risk management; Personnel; Inventory, supply chain; Accounting systems, credit policies - Vishwas

Financial Plan Sales forecast; Statements: Income, Cash flow, Balance sheet; Break-even analysis - Ruchika

Key to success.

1. Product Quality. We sell only the finest

2. Excellent Customer Service. Each customer will be treated as would an honored guest in our homes.

3. No direct competition. We are the only teashop in 20 miles.

4. Enough working capital to survive the first year as we build a customer base.

Business Description Basic information (address, phone, website, email, etc.)

The Company:

Address: 238, Yorkdale Mall, North York / 7785128705

The Herbal Tea Shop is a Partnership Firm that allows customers to have a healthy alternative compared to coffee, standard teas and other hot drinks. If you are looking for a quick way to create a lasting healthy habit, one thing you can do is start drinking herbal teas that are loaded with antioxidants and other healthy ingredients. Customers can choose from five different herbs like Jasmine, Ginger, Holy Basil, Black Pepper, and Cinnamon.

Through the use of social media, The Herbal Tea Shop will create a community of tea enthusiasts that will be held together by their passion for tea, where they can learn from each other and share their experiences and they can also contribute their new ideas with us and we will share the part of profit with them.

We will have a single retail location in Yorkdale strip mall, North York. We will use this location to experiment with new tea types and blends and get immediate feedback from our customers that we can use to boost our sales. In store, we will have touch screens for customers to use to place orders.

Mission statement:

Our mission is to provide our customers with the best tasting, all natural, Organic teas for their everyday lives. We want to foster health & wellness through Herbal tea, so we can live an inspired and healthy life. We’re motivated by medical research suggesting that whole leaf teas boast many health and nutritional benefits—from helping prevent cancer and heart disease, to stress management and weight loss.

Our Vision:

Our vision is to craft the most naturally delicious and ethically sourced herbal leaves. Our vision is to bring our customers quality, product safety, value, and service, with a focus on sourcing the best organic ingredients. We want to change the way people see and think about tea, one cup at a time.


The management team of The Herbal Tea Company has a proven record of entrepreneurial success and innovative business strategy.

Niklaus one of our partner already own a tea shop back in china and have extensive experience in the specialty foods and beverage industries.

Bhaskar & Vishwas our tea enthusiast are thrilled to combine their love of tea with love of analytics and digital marketing. This love affair has allowed them to build our marketing and sales strategy effective.

Disha as our Business Development mManager loves to tell the story of our shop, share her passion for holistic health, and help provide the perfect cup of tea to her customers.

Ruchika is looking after responsibility of Finance, as a commerce graduate and a tea enthusiast she was perfect match for this job.

Fixed assets $10",100

· Tea Racks: $2",000

· Hot Water and Steam machine: $1",100

· Dishwasher: $3",000

· Other Hardware & Appliances: $3",000

· Furniture : $4",000

Liquid Assets, $10",000

· Cash in hand: $10",000

Supply expense, $1",200

Napkins, Stirrers, cleaning supplies, tea-balls, tasting cups[image: ]


Start-up Expenses

Stationery etc.






Start-up Supplies


Dishes, Teacups, Teapots






Start-up Assets

Cash in hand


Other Current Assets


Long-term Assets




Total Requirements



Cash Requirements from Start-up


Additional Cash Raised


Cash Balance on Starting Date




Liabilities and Capital


Current Borrowing


Long-term Liabilities


Accounts Payable (Outstanding Bills)


Other Current Liabilities (interest-free)





Planned Investment





Additional Investment Requirement




The loss at Start-up (Start-up Expenses)






Total Funding

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Appendices As applicable: team resumes, legal agreements and supporting documents; Other necessary information - All of the segments, if they have anything to put in an appendix, they will add it here.



Production methods and control:

Freshly plucked Moringa oleifera leaves were prepared into green and black herbal teas, because of its healthful, pharmacological and restorative properties. The unit activities were culling, destalking and steaming for green tea or shriveling, crushing, aging for dark tea before drying, processing, evaluating, and pressing. The tea tests were exposed to chemical and microbial load analyses, utilizing standard techniques. The results revealed the following ranges: proximate Parameters; crude protein (7.25-26.62%), moisture content (10.37-70.48%), crude fat (1.82-2.74%)",crude fibre (1.09-19.37%), ash content (0.94-9.75%), carbohydrate (15.31-44.93%); phytochemicals; saponins (2.25-5.50%), flavonoid (6.0-16.50%), steroid (1.05-5.05%) and terpenoid (0.70-1.23%) and anti-nutritional factors; tannin (0.23-1.32%), phytate (5.5-18.75%), cyanide (2.55-12.00%) and alkaloid (0.65-2.20%). The ranges of vitamins detected were; vitamins A (7-35-20.37 mg), B1 (0.11-2.85 mg), B2 (0.07-21.46 mg) and C (8.25-213 mg), while minerals include calcium (465.5-2057.5 mg), phosphorus (74.80-225.00 mg) and iron (8.23-32.15 mg). The microbial profile of green tea revealed 8.34×102 CFU gG1 total viable count, whereas no mould growth was observed in both green and black Moringa tea leaves.

Practically any plant is a storage facility of the entire complex of nutrients. Insufficient quality control of raw materials and finished products in the assembling of dietary added substances prompts the way that countless of faulty quality shows up at the market. The quality control of our items is completed in the certified research center of LLC "Test plant "GNCLS". Development and production of products are carried out in conjunction with the pharmaceutical organization "XYZ". Teas created by our organization are a natural product herb or homegrown mix. Each phyto species has preventive introduction reflected in the title. We buy raw materials in Canada as well as in the far and close abroad.

All the raw materials obtained for the generation of tea have endorsements, test reports or other documents providing their quality. In the manufacturer’s declaration there ought to be determined the time and spot of a gathering of raw materials, plant vegetative stage, the description of external signs, quantitative pointers. To confirm the nature of approaching raw materials we do the information control of homegrown raw materials. The most essential indicator of authenticity and purity of raw materials are the outward signs. The raw material must adjust to its name if the producer's endorsement expresses that it is a leaf, blossoms or natural product, the percentage of the substance of different parts of plants ought not to surpass 3-5%. To distinguish the raw materials, we decide explicit organoleptic qualities of each plant. The most imperative strategy for deciding the genuineness of restorative plants is microscopy.

Therefore, we improve the control of manufactured items, utilizing existing techniques for the species incorporated into the SPU, the European Pharmacopoeia; we likewise grow new strategies for quality control for non-pharmacopoeial plants.


Our retail location will be at Yorkdale strip mall, North York. This store will serve shopping center customers keen on purchasing a new, energizing, and refreshing drink while they are shopping and the individuals who are hoping to buy tea and tea-based items to appreciate tea somewhere else or with others. The retail store will have contact screens that will enable buyers to plan and request tweaked teas and store formulas and remarks. Clients can make their buy by talking to an employee.

Permits and licensing:

Permits and license will be registered on the official website of Canada government after making an agreement with our partners.


Increase in the Price

While determining appropriate costs for purchasing Tea at the wholesale level, our team discovered that the price of tea could increase dramatically in the near future. There is a very real possibility that tea prices could increase higher than normal in the short-term. Similar to other commodities, the price of tea is sensitive to the price of oil and has the industry spooked. In order to minimize this risk, we intends to build a strong geographically diverse supplier base. Additionally, each tea flavor will be priced to market conditions in order to limit the effect of price change for eroding profit margins.

Unpredictable Sales Growth

We have to be able to fulfill a sudden surge in sales orders. Several companies, like our Holy Basil Tea reached high sales numbers in very short amount of time. If we are not ready our customers might experience huge delays in getting their tea blends. This might have devastating effects to the future of our business.


Human resources : Disha

Sales and marketing: Vishwas, Bhaskar Shukla, Tianrui Zhao

Accounting: Ruchika

In the first year, we have committed 18 hours of labor per day at the retail location.


There are a few entrenched discount tea providers that are spread in Canada, for example, Maya tea, Teaguys, Rishi, Empire Tea Services, and Starwest Botanical. Tea retailers keep up associations with a few providers, since tea costs and quality may change frequently. They buy from a few providers to all the more likely oversee hazard.

At first, we will begin with three unique providers of tea and tea items. Following two months we will include two extra providers. Amid the initial half-year of tasks, we will proceed to look for the five most dependable providers.

Coming to contents of a store we plan to buy stainless steel types of equipment that will not leach harmful properties into the tea. we get some tables and chairs to have in the store and later we will plan to expand it. We take a house for rent to store the tea products in bulk.

Product and Service Description

The SWOT Analysis


Previous Business Experience

Products Supply Channels/Chains

Marketing & Advertising Skills

Healthy Products

Quality of Products


New Drinking Styles & habits

Potential Markets

Chasing Healthy Lives

Multicultural Environment


Lack of Credibility

The Limitation of Locations

Time Consuming



Tea Competitors

Coffee Competitors

Traditional habits

Buyer Tastes

Competitive Advantages

Nowadays, people are increasingly dependent on healthy lifestyles. Drinking is one of the best ways to improve the qualities of the lives of people. Due to existing plenty of antioxidants, herbal teas could offer a better healthy lifestyle. One advantage of the Herbal Tea Shop is that all types of herbal teas have higher qualities than most competitors in markets. The Herbal Tea Shop will directly import special herbal teas from their origins. Another advantage is that the Herbal Tea Shop has previous successful experience of selling teas. It will pay more attention to relationships with consumers.

Markets Competitors Analysis

Coffee Competitors: Coffee is the most popular drink in Canada. According to Statista (n.d.), “In 2017, 71 percent of consumers reported consuming coffee in the past day, with Tim Hortons being the leading coffee brand for home use” (Coffee Market, pa. 4).

Tim Hortons Marketing Strategies: various products, the lowest price (compared with top competitors), branches, physical evidence, etc.

Starbucks Marketing Strategies: premium quality products, unique positioning, excellent brand merchandise, customer orientation, etc.

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These two companies use different ways to achieve the same goal: building enterprise value. Tim Hortons use lower prices and its corporate image to attract more consumers. Starbucks set a high level of products to let people know the high qualities of products.


There are three most important barriers to the Herbal Tea Shop: import, prices and cultural differences. Due to importing from different countries to Canada, taxes are important, which will directly increase prices of herbal teas. Also, owing to lower prices, most people would consider the qualities of products might not good. Finally, although Canada has a multicultural environment, most Canadian people like coffee rather than tea. It takes time to let more Canadian people drink herbal teas.

The Herbal Tea Shop decide to continue importing herbal teas from their origins even though this behavior might cause higher costs. Therefore, the prices (mentioned below) might be different depending on the import fees. Moreover, the Herbal Tea Shop could find an import agency to help it decrease costs. The Herbal Tea Shop will also use strategies to overcome the second barrier. Furthermore, the Herbal Tea shop will use different ways to sell tea bags. In current markets, several companies would use the residue of loose-leaf tea or with lower qualities of teas to make tea bags. However, every tea bag will be made when consumers purchase them. This action will improve the Herbal Tea Shop’s reputation, which will let people believe its quality. To overcome the last barrier, the Herbal Tea Shop will send small tea bags to people for free. If people try it and think the taste is good, after a period, people will change their habits.

Market Analysis

Market Share

According to Tea Association of Canada, “In 2015, the Canadian tea market in Grocery Stores was worth $426 million (Nielsen).”

Total Hot Tea Sales: $ 225",832",562.

Regular black/green tea: $80",447",086 (35.6 %)

Specialty tea: $145",385",476 (64.4 %)

Ice Tea Mixes: $32",239",390

Ready to Drink (cans and bottles): $167",838",501

Tea Drinker Profile: All Tea Drinkers in Canada

Who are they?

- 55% Female

- 39% Urban, 46% Suburban

- Mostly Ontario (51%) and Western Canada (26%)

- 35% in 3-4 person households; 33% in 2-person

- 41% Medium Drinkers

Tea Drinkers Segmented

35 % - Heavy Drinkers

- Individuals who drink 8 or more cups of tea per week

- Average number of cups per week: 14.1

- Older households with no kids - Tend to be female

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41% - Medium Drinkers

- Individuals who drink 3-7 cups of tea per week

- Average number of cups per week: 5.0

- Similar to average respondent in terms of age, income

and household size

23% - Light Drinkers

- Individuals who drink 1-2 cups of tea per week

- Average number of cups per week: 1.4 - Younger households

- Tend to be single member households

(Roberge, n.d., pp. 2, 4 & 5)

Most people would think others drink tea because of health benefits. However, Roberge illustrates that most Canadian people drink tea for the experience of the drinking process rather than health benefits. Moreover, they are more likely to purchase tea bags.

Target Markets

The Herbal Tea Shop will focus on two different groups based on data: the 35-50 age and the middle-income group. It chooses the first target market, the 35-50 age, because most people would consider their health conditions more when they are grown. Also, people in this group generally have more family members than others, which have higher possibilities to purchase herbal teas. The second target market is the middle-income group because although the Herbal Tea Shop’s herbal teas are cheaper, most consumers might not think the prices are low instinctively. Therefore, if the Herbal Tea Shop does not consider this situation, it might lose low-income and middle-income groups at the same time.

Products and Prices

The Types of Products (One Cup)




Jasmine Tea




Holy Basil Tea

Ginger Tea

Black Pepper Tea

Cinnamon Tea

The Types of Products (One Cup)

One Tea Bag

Jasmine Tea


Holy Basil Tea

Ginger Tea

Black Pepper Tea

Cinnamon Tea


The Herbal Tea Shop will use two different ways of promotion: the second cup with the half price for cups, 5 tea bags with one free tea bag and 10 tea bags with three free tea bags.


Coffee Association (n.d.). Coffee Association of Canada. Coffee Facts. Retrieved from

Coffee Market (n.d.). Statista. Coffee Market in Canada – Statistics & Facts. Retrieved from

Pratap, A. (2017, January 23). Cheshnotes. Marketing Strategy of Starbucks. Retrieved from

Roberge, L. (n.d.). Tea Association of Canada. Canadian Market Overview. Retrieved from

Tim Hortons Marketing (n.d.). MbasK. Tim Hortons Marketing Mix (4Ps) Strategy. Retrieved from

Types of Herbal Teas (n.d.). HABTIS. 30 Types of Herbal Teas (and Their Benefits). Retrieved from

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