Eric Cabral, Danielle Gauvin, Mohit Khuntia

PRESENTATION AGENDA
Company

Overview

Performance

Strategy Marketing & Service Operations Accounting

External

Analysis

Conclusions

COMPANY OVERVIEW

Chai Wala

Defined as: Seller of Coffee/tea.

Mission: To provide Collegetown with an organic option of coffee, while also providing an ethnic atmosphere. Vision: To become the premier seller in Collegetown by providing superior coffee, while maintaining the best ambiance.

PERFORMANCE

Has been broken into Four segments

Strategy Marketing & Service Operations Accounting

STRATEGY

Differentiation is important

Organic coffee option Ethnic feel

Low prices, but great atmosphere

Give students a relaxed environment for after class activities

MARKETING & SERVICE

Logo

image of a traditional Indian woman drinking tea/coffee Gives ethnicity to caf

MARKETING & SERVICE CONTD

Advertising

Weekly advertising campaigns in Newspaper

349 coupons redeemed $944.66 Saved

Customer Satisfaction

Low satisfaction in shop

Low staff motivation

Used Furnature

PRICING

Market demand at the beginning

1000 cups would sold at price of $3.50 Our initial price: $3.40 Raised prices to their final price of $3.65

New Opportunity
More Size options was positive From first week to last, sales increased 110 percent

OPERATIONS

Start-up Decisions

Used Furniture AutoFour Machine

Shop hours: 7AM 6PM

Workers come before work Students come before/ after class

Orders
10,000 Medium Cups- 1 time cost of $800 215Lbs Coffee Ordered/ 26lbs Used

ACCOUNTING

Bank Account Balance:

Loss of $14,530.29 Equiptment and Furniture: $10,500

Purchasing Errors:
Week 1: purchase $1290 Coffee Sold: $156 coffee Wasted: $1134

Advertising

Cost: $7000

INCOME STATEMENT
Amount Revenue COGS Gross Margin Management Advertising/Promotion Rent Utilities Depreciation Expense Interest on Loan Total Expenses $19,858.88 $3,394.90 $16,463.98 $6,643.50 $7,000.00 $2,000.00 $0.00 $133.33 $208.33 $18,767.49 % of Income 100% 17% 83% 33% 35% 10% 0% 1% 1% 95%

Net Income

$-2,303.51

-12%

EXTERNAL ENVIRONMENT

Focus:

Revenues Against Competitors

Cups Sold Customer Satisfaction

REVENUES

Competitor Comparison:

Compared to competitors our company had much lower revenues Lower revenues made us less competitive with other companies

Revenues Compared to Competitors

$12,000.00 $10,000.00
iCafe Daily Grind

$8,000.00

Downtown Espresso
Brewed Awakenings Moka Collegetown Organic Chai Wala

$6,000.00

$4,000.00

Relaxation Station High Octane Cafe Cafe Cupaliscious

$2,000.00

$0.00 Week 1 Week 2 Week 3 Week 4 Week 5

CUPS SOLD

Low Numbers

With respect to competitors, always in the bottom half.

Daily Grind: 1311 in first period Chai Wala: 817 in first period

Stayed in lower half throughout 5 periods

Could not increase sales through advertising

CUSTOMER SATISFACTION

Low Satisfaction compared to competitors

Much lower than average

Affected our public image

Sales low because of this

Factors that affected Customer Satisfaction

Furniture type Employee service Time taken to serve

Average Satisfaction Vs. Chai Wala

60

55

50

45

Averagae Satisfaction Chai Wala Satisfaction

40

35

30 Week 1 Week 2 Week 3 Week 4 Week 5

REFLECTIONS & CONCLUSIONS

Our two main issues:

Staff concerns should be better met Expenses need to be watched closer.

Our losses could have been turned into positives.

Unneeded Expenses approx.: $2500

If we were to repeat, or continue:

Take two issues into account when making decisions