The marketing plan includes market strategies, target markets, current and future trends, marketing tactics, and advertising. The market strategies section of the marketing plan describe market positioning and business location. Target markets detail customer profiles, demographics, trade area description, and market size and market trends. It is important to include in your marketing strategies the current and future trends of the tea market in all four areas where tea is sold and know how tea is advertised. Market tactics are important in the marketing plan to show how you plan to package, price, promote, and advertise your tea business. Knowing your direct and indirect competition will help you decide on a good location to give you a competitive advantage. Your marketing plan is an important part of your business plan because you will outline your advertising strategies.

Section 5. The Marketing Plan

A. Industry Description

Background of the Tea Industry Market

Describe the tea industry in the United States and its projected growth, which of course, translates into big business for you.

US Tea Market is made up of:

Describe the make up of the tea market along with projected revenue of supermarket teas, R-T-D market, foodservice segment, and the specialty segment.

Current and Future Trends of the Marketing Plan

Discuss the current and future trends of the tea industry. For instance tea is predicted to be the next beverage boom and that is proving to be the case. What is the trend for the long term?What is the demand for tea--as it is expected to be storng over the next decade. What are some positive health research that is coming forth?

Simply put, tea is one of life’s pleasures. It makes people feel better and provides a quick relaxing escape from life’s hectic pace. This 5,000-year-old drink is here to stay, and its future looks very exciting. Specialty tea will represent the fastest growing segment of the tea industry over the next decade. This segment has the capability of doubling its volume over the next five years and may grow at an even faster pace with the right support from industry. The future of the tea industry in the US appears to be very promising.

Business “Fit” in the Tea Market Industry

How does you business fit into the tea market industry? What makes it special?

B. The Market

Customer Profile/Target Market

Specialty Tea Consumer: Demographics

What is the description of your customers that will be visiting your tea business--income level, education level, age level?

People want a better lifestyle. Your customers want a healthier lifestyle. Tea has been identified by the Research Laboratory at Tufts University as one of the top healthy foods of the new millennium. Buyers expect a variety of teas and good food to go with it. Tea drinkers want to buy hardware, so the variety and availability of steeping accessories and accouterments keeps growing. What is your target market?

Trade Area Description

What is your geographic area? Where is your specific area? (Just the area around your tea business or wider?) What percentage of the population in that area do you believe will frequent your tea business?

Market Size and Trends

How many households are in your area and what percentage purchase tea and/or consume it away from home? For example:

Using the Geodemographic Analysis-Cities of Reno & Sparks there are124,013 households in the Reno-Sparks Greater area. The statistics from theUSA Tea Council are 76% of US households purchase tea and 40% consumetea away from home. This gives me a market of 37,700 people. (124,013 x76% - 94,250 x 40% = 37,700 people)

How does this translate into revenue for your business?

Market Potential

What is your market of tea drinkers and how many do you think will visit your tea room during the year? For example:

Given the market of 37,700 plus tea drinkers, if each one were to visit my tea room only once during the year and spent an average of $8, this would give me gross revenues of $301,600.

How many other tea rooms are in your area that might take some of the profit from you?

C. Competition

Direct and Indirect Competition

Describe direct and indirect competition. Indirect competition would be Starbucks or other coffee shops nearby.

Evaluation of Competition and Competitive Advantage

What competitive advantages do you have?

D. Marketing Strategies/Marketing Plan

Market Positioning

This will probably relate back to your mission statement. What are you going to offer--relaxing atmoshpere, high quality tea at a reasonable price, etc.?

Business Location

Where are you going to open and why is this a good location?

Marketing Tactics


What is your decor going to be?


What pricing strategy will you use?


How are you going to promote your business--fliers, newspapers, radio, TV, etc?

Are you going to be doing anything special, such as holding various tea tastings, tea etiquette classes, and having an expert come in to demonstrate the Japanese Tea Ceremony. Maybe trade fliers with boutiques, antique shops, beauty salons, senior centers, and day spas.

Customer Service

What type of customer service will you give? What makes you so special?

Your Marketing Plan will be one of the most important sections in your business plan. You need to know your market strategies, what and who your target markets are, the current and future trends of the tea market, and what market tactics you will use to secure your place in the tea industry.

Section 2 Background information The background information should include your Mission Statement, your business goals and objectives, and a general description of your business.

Section 3 Description of Products The description of products and services will include the features, benefits, and future of your proposed products and services.

Section 4 Management Structure and Organization The Management Structure and Organization section includes the form of ownership, personnel, organizational chart, and outside services and advisors.

Section 6 Financial Plan The financial plan section includes startup costs, cash flow projections, Sales and expenses estimates, and financial needs.

Section 7 Conclusion The conclusion will include a feasibility statement and and action plan.

Business Plan A business plan is critical when opening a tea room and will help you to begin maximizing your profits. Keeping expenses down, especially startup costs, will give you extra cash later.

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