powerful brands for our diverse consumer base. Our goal is to provide the finest premium teas and chocolates to residents of the Chisinau, in a relaxed and fun atmosphere. To operate a successful tea and chocolate store in Chisinau, employing one to two employees the first year. To obtain a minimum of 200 regular customers in the Chisinau market the first year of operation. Achieve first year sales of $190,000. Maintain an average gross margin of 58 percent. To produce a reasonable net profit by the end of the third year of operation. Experienced Owners/Managers. John and Hellen have years of experience in this and related industries. Product Quality. We sell only the finest whole-leaf loose teas, pastries, and chocolates. Excellent Customer Service. Each customer will be treated as would an honored guest in our homes. No direct competition. We are the only teahouse in center city . Enough working capital to survive the first year as we build a customer base. Broad cross-seasonal offerings. In addition to hot teas, we offer iced teas, chocolates, and gift baskets to cover seasonal variations in customer demand. PRODUCT
PRICE
PLACE
PROMOTION Company Summary Company Ownership
Jasmine Selene Teahouse is a
start-up business on a well- trafficked street in Chisinau. Our primary focus is in the over 50 kinds of loose tea we offer, including black teas, green teas, herbal teas (infusions), and flavored teas (black or green tea plus other flavors). We serve our teas hot and iced, and sell loose teas by the ounce. In addition, we sell premium chocolates and gift baskets, and offer daily pastries to accompany tea orders. Since we are not intending to compete with coffee giants such as Tucano, we brew only one kind of coffee daily, as a courtesy to our customers. Equipment and Inventory will make up 75% of start-up requirements. Leasehold improvements and general expenses comprise the remaining 25%. The owners are contributing $10,330 of investment to the business. We need a total of $63,963, and are seeking a long-term loan of $53,633; we plan to pay this loan back in full within 6 years, at a 10% interest rate. Long-term Assets, $13,808 Refrigerated Chocolate Case: $3,500 Tea Racks: $2,300 Coffee Maker: $908 Hot Water and Steam machine: $1,100 Dishwasher: $3,000 Other Hardware & Appliances: $3,000 Short-term Assets, $6,605 Coffee Grinder: $564 Iced Tea Shakers: $541 Furniture: $5,500 Expensed Supplies, $1,200 Napkins, Stirrers, cleaning supplies, tea-balls, tasting cups Jasmine Teahouse will specialize in premium teas, fine chocolates, and gift baskets. 52 kinds of teas we offer. (Assam, Ceylon, Darjeeling and Keemun, blends like Chai,a Ceylon/Vanilla/Jasmine blend.) Pastries Premium chocolates such as Godiva, Scharffen Berger, Garrison,Lind and vegan chocolates Tea paraphernalia Gift Baskets While we anticipate a split between locals and tourists, all members of our target market are between the ages of 17 and 60, and have a moderate to sizable disposable income. Jasmin Selene TH follows high-medium price strategy in which it offers high quality tea at reasonable prices.
Jasmin SeleneTH also follows a Going
Rate Pricing strategy, in which it bases its price largely on competitors. Hot Tea: We offer two sizes of sit-down hot tea: small pots, at $3.50 each, and large pots, at $5.25 each (for two people). For customers wishing to take tea with them, we offer a flat rate of $2.50 for a 16oz. cup or a customer's own mug. Iced Tea: Iced Teas are served in 12oz. or 16oz. cups, at $2.00 and $3.00, respectively. Pastries: Our pastry prices range from $1.25 for a lavender- lemon sugar cookie to $4.00 for a slice of cake. Prices depend on our daily cost of such items from the local bakery, and should be only 25 to 30 cents higher than the price of that item sold in the bakery itself. Chocolates: Chocolate prices vary widely, from $85 cents for a chocolate covered piece of candied ginger, to $4.00 for large truffles. Gift Baskets: Gift baskets start at $15, and can range up to $150 for the largest chocolate and tea selection combinations at holidays. We expect the average gift basket sale will be about $25. END USERS /APPLICATIONS OF PRODUCTS Major Activities The following table shows our profit and loss projections for the next three years. We will become profitable early in the first year, with net profits continuing to rise as sales increase. Sales and Marketing expenses include the costs of all advertisements, plus promotions like the monthly tastings and 1/2 off coupons for tourists. Depreciation reflects a straight- line depreciation of our long-term assets over 10 years