Black SeaWe serve Art

Presented by :

Abhijit Dey

Anirban Ghosh

Aswini Sahu

Gaurav Bhattacherjee

Mohd. Umair Athar

Shayan Alam

Agenda

Introduction

Pentagon model

Triangle model

Store EBITDA model

Differentiation

Cost leadership strategy

Strategic resource management model

Introduction

Retail format - Tea bar/lounge

Serve short eats along with tea

Hand-made tea

Serve tea from all over the world

Competition in India

Pentagon model

Place

Size of store – 1500 sq.ft.

Location – High street

Design –

• Ceiling and floor

• Crockery

• Tables and chairs

• Vintage car with dining

Layout

Pentagon model (continued…)

Product

Menu

• Variants of tea beverages

• Single item snacks

• Combo meals

• Customized tea

Miscellaneous offerings

• Best-selling books section

• Games – scrabble, chess etc.

Pentagon model (continued…)

People

Touch screen enabled digital menu system

Training – Waiter cum store manager

Hospitality

Payback loyalty card

Pentagon model (continued…)

Value

Strict quality standards

Price range of products

Black Sea Premium card system

Pentagon model (continued…)

Pentagon model (continued…)

Communication

Positioning – Classy joint

Target group – 27 years to 60 years

Social networking promotions

Sampling our product in our catchment area

Screening of sports events

Publicizing - Saturday edition of T2

Word of mouth promotion

Triangle Model

Logistics

Limited requirement

In-store warehouse

Ask vendor to deliver at store

Supply

Procurement

Tea • Collect from dealers & brand owners quarterly basis

Milk & other fast perishable ingredients• Collect 2-3 times a week as per demand from multiple vendors• Procure in limited quantity as per demand

Long lasting food items• Collect once in a month/fortnight as per demand

Storage• Invest heavily to make it highly efficient• Daily stock checking will be done to avoid shrinkage & predict better forecast

Triangle Model (continued…..)

System

Timing

• 7 days a week. 10 AM to 10 PM. Make it flexible in peak days

Efficient software

• Provide Rapid& detailed data

• Keep fully digitalized ordering system with details

Equipment

• Required for making tea & other items in store

• Also to keep the storage at optimum level

Triangle Model (continued…..)

Store EBITDA

Calculation Black Sea (Rs Lacs / mth) Cha Bar (Rs Lacs / mth) Café Coffee Day (Rs Lacs / mth)

Coffee Bean & Tea Leaf (Rs Lacs / mth)

Trading Area Given 750sq ft 650sq ft 600sq ft 1000sq ft

Net Sales Measured = A 15,00,000 10,50,000 3,60,000 31,50,000

Retained Margin Measured = B 7,50,000 5,25,000 1,62,000 15,75,000

Retained Margin % Calculated C = B/A % 50% 50% 45% 50%

Store Opex : Measured = D

Rent 2,50,000 1,40,000 80,000 3,30,000

Salary & Wages 85,000 1,20,000 90,000 1,50,000

Power 30,000 25,000 25,000 40,000

Other Opex 50,000 45,000 30,000 60,000

Total Opex 4,15,000 3,30,000 2,25,000 5,80,000

Store ebitda Calculated E= B – D 3,35,000 1,95,000 -63,000 9,95,000

Store ebitda % Calculated F = E/A % 22.33% 18.57% -17.50% 31.59%

Differentiation

Electronically enabled digital menu system

Option of customizing tea

Vintage car dining

Bridging the gap between Café Coffee Day and Starbucks

Option to play chess over a cup of coffee

Cost Leadership

High Asset Turnover

One of the area of focus

Operational costs

Giving maximum importance

Value chain

Not focusing over here at now

Aiming to be cost focus company

SRM Model

Black Sea

GMROI(in Rs./month)

GMROF(in Rs./month)

GMROL(in Rs./month)

Merchandise Intensity(in Rs./month)

Selling Intensity(in sq. ft./emp.)

(GM/Sales) * (Sales/Inv.) (GM/Sales) * (Sales/Selling Ft.)

(GM/Sales) * (Sales/FTE Emp.) (Inv./Selling Ft.) (Selling Ft./FTE Emp.)

Gross Margin (in Rs.) 750000.00

5.00 1000.00 83333.33 200.00 83.33

Net sales (in Rs.) 1500000.00

Inventory (in Rs.) 150000.00

Selling Feet (in Sq. Ft.) 750.00

FTE Employees 9

COGS (in Rs.) 750000.00

Inventory turnover ratio (assumed) 5.00

SRM Model

Cha Bar

GMROI(in Rs./month)

GMROF(in Rs./month)

GMROL(in Rs./month)

Merchandise Intensity(in Rs./month)

Selling Intensity(in sq. ft./emp.)

(GM/Sales) * (Sales/Inv.) (GM/Sales) * (Sales/Selling Ft.)

(GM/Sales) * (Sales/FTE Emp.) (Inv./Selling Ft.) (Selling Ft./FTE

Emp.)

Gross Margin (in Rs.) 525000.00

5.00 807.69 65625.00 161.54 81.25

Net sales (in Rs.) 1050000.00

Inventory (in Rs.) 105000.00

Selling Feet (in Sq. Ft.) 650.00

FTE Employees 8

COGS (in Rs.) 525000.00

Inventory turnover ratio (assumed) 5.00

SRM Model

Café Coffee Day

GMROI(in Rs./month)

GMROF(in Rs./month)

GMROL(in Rs./month)

Merchandise Intensity(in Rs./month)

Selling Intensity(in sq. ft./emp.)

(GM/Sales) * (Sales/Inv.) (GM/Sales) * (Sales/Selling Ft.)

(GM/Sales) * (Sales/FTE Emp.) (Inv./Selling Ft.) (Selling Ft./FTE

Emp.)

Gross Margin (in Rs.) 162000.00

4.09 270.00 20250.00 66.00 75.00

Net sales (in Rs.) 360000.00

Inventory (in Rs.) 39600.00

Selling Feet (in Sq. Ft.) 600.00

FTE Employees 8

COGS (in Rs.) 198000.00

Inventory turnover ratio (assumed) 5.00

SRM Model

Coffee Bean & Tea Leaf

GMROI(in Rs./month)

GMROF(in Rs./month)

GMROL(in Rs./month)

Merchandise Intensity(in Rs./month)

Selling Intensity(in sq. ft./emp.)

(GM/Sales) * (Sales/Inv.)

(GM/Sales) * (Sales/Selling Ft.)

(GM/Sales) * (Sales/FTE Emp.) (Inv./Selling Ft.) (Selling Ft./FTE Emp.)

Gross Margin (in Rs.) 1575000.00

5.00 1575.00 131250.00 315.00 83.33

Net sales (in Rs.) 3150000.00

Inventory (in Rs.) 315000.00

Selling Feet (in Sq. Ft.) 1000.00

FTE Employees 12

COGS (in Rs.) 1575000.00

Inventory turnover ratio (assumed) 5.00

THANK YOU…