Comprehensive Business Plan for Hi Tea at Sylvia Park Shopping Centre

This business plan outlines the strategy for Hi Tea, a beverage company, focusing on the Sylvia Park Shopping Centre in Auckland, New Zealand. It includes an executive summary, table of contents, and detailed sections on the company's mission, vision, product portfolio (juices, smoothies, teas), and ...Read More

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Business Plan for Hi Tea

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Executive Summary
The Business Plan for Hi Tea reflects that the venue, Sylvia Park Shopping Centre would stand
highly feasible for the drink and beverage firm. A budgetary analysis reveals that Hi Tea is taken
to gain profitability from the fifth year of its operation in the region based on functioning based
on the use of brick-and-mortar and digital app interfaces. The business plan is further subdivided
along the marketing, operational, human resources and financial plans.

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Table of Contents
Overview of Hi Tea.........................................................................................................................6
Mission of Hi Tea........................................................................................................................6
Vision of Hi Tea..........................................................................................................................6
Venue selection of Hi Tea...........................................................................................................6
Product Portfolio..........................................................................................................................6
Value Proposition to customers...................................................................................................7
Industry Analysis of Hi Tea.............................................................................................................7
Industry size and trend.................................................................................................................7
Environmental Analysis...............................................................................................................8
Political Influences..................................................................................................................8
Economic Influences...............................................................................................................9
Social Influences......................................................................................................................9
Technological Influences.......................................................................................................10
Environmental Influences......................................................................................................10
Legal Influences.....................................................................................................................10
Competition in the Industry.......................................................................................................10
Market Analysis of Hi Tea............................................................................................................12
Target market.............................................................................................................................12

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Need Analysis............................................................................................................................12
Market Opportunities.................................................................................................................14
Marketing Analysis........................................................................................................................14
Product Mix...............................................................................................................................14
Price Mix...................................................................................................................................14
Place Mix...................................................................................................................................14
Promotion Mix...........................................................................................................................15
People Mix.................................................................................................................................15
Process Mix...............................................................................................................................15
Physical Evidence Mix..............................................................................................................15
SWOT Analysis of Hi Tea.............................................................................................................16
Operational Analysis.....................................................................................................................17
Details of Premises....................................................................................................................17
Lease Management....................................................................................................................17
Details of Equipments................................................................................................................17
Permits gained...........................................................................................................................17
Design Standards.......................................................................................................................18
Supplier Terms...........................................................................................................................18
Human Resources Analysis...........................................................................................................18

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Proposed Organizational structure.............................................................................................18
Proposed Recruitment and Selection Policy..............................................................................18
Proposed Pattern of Training.....................................................................................................19
Proposed Motivational Process..................................................................................................19
Proposed Performance Appraisal Process.................................................................................19
Proposed Health and Safety Standards......................................................................................19
Financial Analysis.........................................................................................................................20
Budget Plan for Six Years.........................................................................................................20
References......................................................................................................................................22

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Overview of Hi Tea
Mission of Hi Tea
The mission of Hi Tea is to provide high quality juices, health foods and beverages to customers.
The company endeavors to offer natural and freshly brewed products to entice its customers. Hi
Tea focuses on earning profitability during the initial six year period of its operation.
Vision of Hi Tea
The vision of Hi Tea is to focus on becoming a highly demanding company of customers in the
category of beverage and health food segment.
Venue selection of Hi Tea
Hi Tea focuses on opening its counter at Sylvia Park Shopping Center based in Auckland, New
Zealand. The shopping center is chosen in that it hosts large number of retail stores, cafes and
restaurants and thereby tends to attract considerable numbers of consumers. Further, the
shopping centre is also easily accessible by customers traversing along diverse transportation
routes and also has playgrounds for attracting children (Be Accessible , 2019).
Product Portfolio
Hi Tea offers diverse set of drinks, beverages and health food supplements for entertaining its
customers. Sodas, Milk and Yoghurt drinks, Smoothies and other Tea drinks top its menu chart. \

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Value Proposition to customers
Hi Tea focuses on offering large array of different sets of high quality drinks and beverages at
highly competitive rates. Moreover, offers and discounts are also on cards for enhancing the
value rendered to customers.
Industry Analysis of Hi Tea
Industry size and trend
It is estimated that around 7.4 percent of the different types of beverages consumed by the
consumers in the New Zealand market tends to be juice drinks. Juices are highly favored by New
Zealanders in that they act as effective health drinks in providing them with mineral and vitamin
contents. New Zealand on an annual basis exports around $52 million juice products to
worldwide consumers. Fresh juices, traditional and also fruit smoothies are largely demanded by
the juice customers in New Zealand. The Consumers in New Zealand annually spend around
$700 million on soft drinks and juices (New Zealand Beverage Council, 2019). Category wise
drinks consumed by Consumers in New Zealand are provided as follows.

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(New Zealand Beverage Council, 2019)
Environmental Analysis
The environmental analysis of the juice and beverage industry of New Zealand is carried out
based on the application of PESTLE Analysis.
Political Influences
The New Zealand government focuses on the use of stringent labeling standards to reduce the
consumption level of customers related to sugar enabled drinks. It however restrains from
generation of sugar taxes (Nyika, 2018).

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Economic Influences
The household expenditures of the New Zealand householders along the period 2013-2016
increased by around $190 or 17.1 percent. The weekly expenditures on food products increased
by around 14 percent from 2013-16 while expenditure on restaurant meals gained an increase by
around 50 percent during 2015-16 (Stats NZ, 2016).
(Stats NZ, 2016)
Social Influences
The New Zealand consumers are more interested in the consumption of natural drinks and
beverages that tend to be fresher and also lighter with no addition of preservatives. They oppose
the consumption of concentrated and carbonated drinks and are patrons of innovative drinks
(Agostino, 2017).

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Technological Influences
Innovation rules the juice and beverage market in New Zealand. The producers are required to
continually innovate on product offerings and packages for enticing the customers (New Zealand
Beverage Council, 2019).
Environmental Influences
Recycled plastic bottles and other recycled packages are favored by the juice and beverage
manufacturers and marketers in New Zealand for packaging the juice, drinks and beverage
products (Scully, 2018).
Legal Influences
Legal restrictions in terms of banning the consumption of sugary drinks and also charging of
higher GST and Excise Tax are being undertaken for reducing the intake of sugar drinks and
beverages in the region (Tan & Liu, 2017).
Competition in the Industry
Market shares of the different soft drink categories in the New Zealand juice and beverage
market as of 2016 is reflected as follows.

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(Statista , 2016)
The juice, health drinks and beverage producers and marketers in New Zealand continually carry
out price wars with each other for sustaining their presence in the market (Statista , 2016).

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Market Analysis of Hi Tea
Target market
The target markets for juice, beverages and health drinks in New Zealand essentially comprises
around 45 percent of consumers that are interested in consuming products made by local brands.
For bottled water the local brands are favored by around 35 percent of consumers. The
Consumers in New Zealand are interested on procuring of local brands for supporting of local
businesses (Dobson, 2016).
Need Analysis
The needs and expectations of Consumers in New Zealand from juice and beverage producers
are reflected in the following illustration.

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(Dobson, 2016)

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Market Opportunities
Hi Tea focuses on gaining of effective marketing opportunities in terms of innovating new types
of juices and beverages that are cost-effective in nature. Moreover, the business also targets the
market based on the generation of offers and sales promotions from time to time.
Marketing Analysis
Product Mix
Hi Tea focuses on offering an effective product mix to its customers that would be constituted by
quality health drinks, milk and yoghurt recipes, smoothies and fruit drinks and also different
types of innovative tea drinks (Cleare, 2016).
Price Mix
Hi Tea aims in employing of the penetration pricing strategy that would thereby help the
beverage and drink firm in potentially penetrating the New Zealand beverage and juice market.
In addition to using of low prices for the products the firm also aims in offering discounts,
promotional coupons and other offers from time-to-time to render needed value to the customers
(Khan, 2014).
Place Mix
In addition to opening up of a counter in Sylvia Park Shopping Center, Hi Tea also focuses on
reaching its customers through the designing of an effective app meant for Smartphones and

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Tablets that would help customers in procuring the same in a convenient fashion. Home delivery
is to be arranged for purchases in terms of partnering with Zomato (Weltman, 2015).
Promotion Mix
Different types of media like print (full and half page advertisements for magazines and
newspapers), broadcasting (television and radio), social networking (Facebook, Twitter,
Instagram and Pinterest) and also the outdoor media is required to be employed for generating
considerable awareness about the Hi Tea brand and its diverse juice, beverage and drink
products. The promotional team is thereby required to focus on the designing of different types
of contents for suiting the information needs of the target audiences for the different types of
media platforms (Chen, 2017).
People Mix
Highly groomed and trained people dealing with samples are required to be incorporated at the
sales counter based in Sylvia Park Shopping Center. Further, other internet savvy people are
required to be employed for promoting the brand along the digital and social networking
platform and management of the shopping app (Nyika, 2018).
Process Mix
Different types of innovative processes are to be employed for generating creative drinks and
beverage menus. The sales processes are required to be carried out both through the use of online
and physical interfaces (Khan, 2014).

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Physical Evidence Mix
Hi Tea would focus on using of well designed, attractive and adequately labeled packages for
offering customers’ beverage, juice and other health drinks. Further, along with use of recycled
bottles like Pet Bottles catalogues and brochures would be handled to customers for making
effective choices (Weltman, 2015).
SWOT Analysis of Hi Tea
Strength
-Venue selection in Sylvia Park Shopping
Center would help in gaining access to
considerable number of customers.
-Hi Tea focuses on offering of creative and
innovative juice and beverage offerings in a
cost-effective fashion.
Weakness
-Hi Tea does not have large number of brick-
and-mortar outlets and has low level of brand
awareness in the consumer market.
Opportunity
-The New Zealand customers in the juice and
beverage market are more interested in buying
of products rendered by local producers.
-The customers are interested more in
consuming of natural drinks.
Threat
-New Zealand being an open economy
encourages the entry of foreign firms in the
juice and beverage market. The same is taken
to enhance the level of competition for Hi Tea
in New Zealand.

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Operational Analysis
Details of Premises
The premises chosen for Hi Tea in Sylvia Park Shopping Center would range along 35 square
meters and would be highlighted as SFD07. The rent per annum for the premises is estimated to
be $118,000 on an annual basis. The premise would have effective connection to water and
electricity points and also would help in disposing of waste products.
Lease Management
The lease for the premises would be for six years. The lease would commence from 8th June
2020. Hi Tea in terms of acquiring the new lease is required to gain the approval of the
Government Property Group (GPG) before commencing its business. Further, a valuation of the
market rent is required to carry out by a registered valuer experienced in valuation of commercial
properties. In case of disputes with Kiwi Property Group Limited associated to rent reviews, Hi
Tea is required to immediately notify the GPG regarding the same. Hi Tea is also required to
potentially oblige with the points in the lease agreement and meet them within specific deadlines
(New Zealand Government Procurement , 2019).
Details of Equipments
Different types of equipments like juice mixers, espresso machines and other juice dispensing
machines are focused on being incorporated by Hi Tea. Further, the use of recycled plastic
bottles and other packaged products are also to be used by Hi Tea for servicing its customers.

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Permits gained
Permits are rendered for the display and also the retail sales of fresh juices and health foods and
also other types of health associated drinks.
Design Standards
The premises would be designed based along the latest design standards as would be approved
by the Retail Design Manager of Kiwi Property. The design standards are approved such that
they effectively match the retail brand, Hi Tea.
Supplier Terms
Hi Tea focuses on engaging local suppliers of fruits, mineral water, milk products, tea and other
beverage products for carrying out its services. It focuses on working on a credit term of around
1 month in terms of dealing with suppliers for sourcing of raw materials.
Human Resources Analysis
Proposed Organizational structure
A matrix or functional organizational structure is proposed for Hi Tea. The different departments
like production, marketing, sales, advertising and communication, finance, sourcing and logistics
and human resources are required to be empowered for meeting the departmental and
institutional objectives and taking of decisions in a decentralized fashion (Metcalfe, 2014).

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Proposed Recruitment and Selection Policy
Local employment platforms are to be partnered with for gaining access to quality candidates in
the Auckland region and other regions based in New Zealand. Scores of different types of
psychometric tests, product and sales knowledge tests coupled with needed experiences are
required to be used in a combination for selection of the needed candidates (O'Meara & Petzall,
2013).
Proposed Pattern of Training
Both on-the-job and also the off-the-job training programs are required to be designed for
enhancing the expertise levels of the internal people. Off-the-Job training would include
induction training, grooming techniques and also communication and information technology
based training. On-the-Job training would deal with development of customer relations, sales and
retail training and the like (O'Meara & Petzall, 2013).
Proposed Motivational Process
Financial incentives like sales based incentives would be designed based on matching with the
sales performances of the personnel. Non-financial incentives like recognition of salesperson of
the week or month and even generation of promotional opportunities would help in enhancing
the motivation of the staffs (Sale, 2017).
Proposed Performance Appraisal Process
A 360 Degree Performance Appraisal Program is required to be designed for appraising the sales
performances of the counter and retail staffs. Feedbacks from customers, colleagues and also

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supervisors and managers are required to be employed for appraising the performances of the
staffs (Sale, 2017).
Proposed Health and Safety Standards
Hi Tea is required to focus on abiding by the rules and regulations associated to the health and
safety standards as set by the employment regulatory and government authorities based in New
Zealand.
Financial Analysis
Budget Plan for Six Years
The six year budget plan for Hi Tea is presented as follows.
Six Year Budget Plan ($)
Items
1st
Year
2nd
Year
3rd
Year
4th
Year
5th
Year
6th
Year
Costs
Rent
1,18,00
0
1,23,90
0
1,29,80
0
1,35,70
0
1,41,60
0
1,47,50
0
Marketing Levy 7080 7434 7788 8142 8496 8850
Center Marketing
Launch 3000
Improvement Rent 11800 12390 12980 13570 14160 14750
Operating Expenses 40940 41825 42710 43595 44480 45365
Total Costs
1,80,82
0
1,85,54
9
1,93,27
8
2,01,00
7
2,08,73
6
2,16,46
5
Revenues
Juices 43200 44928
48072.9
6
52880.2
6
59225.8
9
67517.5
1
Health Products 44000 45760 48963.2
53859.5
2
60322.6
6
68767.8
4
Beverages 75000 78000 83460 91806 102822. 117217.

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7 9
Total Revenue 162200 168688
180496.
2
198545.
8
222371.
3
253503.
2
Profit/Loss
-
18,620
-
16,861 -12,782 -2,461 13,635 37,038
The budget plan for the six year period is presented above. It reflects a GST charged of 15
percent on the rental property used for commercial purposes. The budget plan reflects
profitability from the fifth year thereby reflecting a break-even. The juice products are priced at
$12, health products at $10 and beverage products at $15 each. The growth of sales revenue from
second year to sixth year is projected at 4 percent, 7 percent, 10 percent, 12 and 14 percent
respectively for the different product categories.

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References
Agostino, S. (2017). Natural Ingredients becoming Increasingly Important in the New Zealand
Drinks Market. Retrieved February 28, 2019, from https://blog.euromonitor.com/natural-
ingredients-new-zealand-drinks-market/
Be Accessible . (2019). Sylvia Park Shopping Centre. Retrieved February 28, 2019, from
http://www.beaccessible.org.nz/find/retail/department-stores/sylvia-park-business-centre-
limited
Chen, J. S. (2017). Advances in Hospitality and Leisure. United Kingdom : Emerald Group
Publishing.
Cleare, A. B. (2016). Business of Travel and Tourism in the 21st Century: A Caribbean
Approach. United States : Lulu.com.
Dobson, L. (2016). MADE IN...NZ? PREFERENCES FOR LOCAL AND GLOBAL BRANDS.
Retrieved February 28, 2019, from
https://www.nielsen.com/nz/en/insights/news/2016/made-in-nz-preferences-for-global-
and-local-brands.html
Khan, M. A. (2014). Restaurant Franchising: Concepts, Regulations and Practices, Third
Edition. United Kingdom : CRC Press.
Metcalfe, D. (2014). Managing the Matrix: The Secret to Surviving and Thriving in Your
Organization. United Kingdom : John Wiley & Sons.

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New Zealand Beverage Council. (2019). About the Industry. Retrieved February 28, 2019, from
https://www.nzbeveragecouncil.org.nz/consumer-information/about-the-industry/
New Zealand Government Procurement . (2019). Lease management standards and guidelines.
Retrieved February 28, 2019, from https://www.procurement.govt.nz/property/lease-and-
facilities-management/principles-standards-and-guidelines-for-lease-and-facilities-
management/lease-management-standards-and-guidelines/
Nyika, R. (2018). Sugary drinks - NZ worse than Canada, UK and Australia, study finds.
Retrieved February 28, 2019, from
https://www.stuff.co.nz/national/health/100581810/sugary-drinks--nz-worse-than-usa-uk-
and-australia-study-finds
O'Meara, B., & Petzall, S. (2013). Handbook of Strategic Recruitment and Selection: A Systems
Approach. United Kingdom : Emerald Group Publishing.
Sale, J. (2017). Mapping Motivation: Unlocking the Key to Employee Energy and Engagement.
New York : Routleddge .
Scully, J. (2018). NZ Drinks opens recycled PET bottled water line in New Zealand. Retrieved
February 28, 2019, from https://www.foodbev.com/news/nz-drinks-opens-new-recycled-
pet-bottled-water-line-in-new-zealand/
Statista . (2016). Market share of soft drinks in New Zealand as of 2016, by category. Retrieved
February 28, 2019, from https://www.statista.com/statistics/422491/new-zealand-market-
share-of-soft-drinks-by-category/

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Stats NZ. (2016). Household Expenditure Statistics: Year ended June 2016. Retrieved February
28, 2019, from http://archive.stats.govt.nz/browse_for_stats/people_and_communities/
Households/HouseholdExpenditureStatistics_HOTPYeJun16/Commentary.aspx
Tan, L. M., & Liu, J. X. (2017). Curbing the Consumption of Soft Drinks in New Zealand: Is Tax
the Solution? Retrieved February 28, 2019, from
http://insight.thomsonreuters.co.nz/sugar-tax-soft-drinks/
Weltman, B. (2015). J.K. Lasser's Small Business Taxes 2016: Your Complete Guide to a Better
Bottom Line. United Kingdom : John Wiley & Sons.