A New Business in a New Town

A New Business In A New Town

Xu Xingpeng

Raffles Design Institute

Executive
This marketing report is about the feasibility of opening a Tea house in at Huali Road, Zhujiang Newtown, CBD, Tianhe, Guangzhou, Guangdong, China. This report includes the introduction of tea, location and Tea house. Following the marketing research problem and marketing research objectives, the researcher has researched this survey by questionnaire. After analyzing the results of questionnaire, the conclusion is that opening a Tea house in Huali Road is a good business.

Table of Content

Title of the Marketing Research Report 1 Executive Summary 2
Table of Contents 3
Marketing Research Problem 4
Marketing Research Objectives 4
Introduction 5
Research Methodology 9
Review of Literature 10
Survey Results Summary 15
Survey Results Analysis and Recommendations 18
Table of Annexes 19

Research Problem
The feasibility of opening a Tea house in Zhujiang Newtown, CBD, Tianhe, Guangzhou, Guangdong, China.

Research Objectives 1. To know what types of tea people like to drink. 2. Determine the location of opening a Tea house. 3. Determine the price range of tea. 4. To know how people are interesting in a Tea house.

INTRODUCTION
What is tea?
Tea is an aromatic beverage commonly prepared by pouring hot or boiling water over cured leaves of the tea plant, Camellia sinensis. After water, tea is the most widely consumed beverage in the world. It has a cooling, slightly bitter, astringentflavour that many people enjoy.

Source: http://www.mandarinoriental.com/lasvegas/fine-dining/tea-lounge/

What is a Tea house?
Tea house is establishment where people can gather to enjoy a cup of tea (Just like Starbucks without coffee, but tea). There will be a wide range of options with the type of tea drinks offered, starting with plain tea and moving through a selection of specialty tea drinks that are often difficult to find at restaurants and other locations. And there will offer a limited selection of food and other beverages, making them ideal for a quick snack or a light meal.

Kinds of Tea
Oolong
Oolong is a traditional Chinese tea (Camellia sinensis) produced through a unique process including withering under the strong sun and oxidation before curling and twisting. Most oolong teas, especially those of fine quality, involve unique tea plant cultivars that are exclusively used for particular varieties. The degree of oxidation can range from 8% to 85%,[citation needed] depending on the variety and production style. This tea category is especially popular with tea connoisseurs of south China and Chinese expatriates in Southeast Asia, as is the tea preparation process that originated from this area: gongfu tea-making, or the gongfu tea infusion approach.

Source: http://en.wikipedia.org/wiki/Oolong
Puer tea
Pu-erh tea, also spelled as Pu'er tea, is a variety of fermented dark tea produced in Yunnan province, China. Fermentation is a tea production style in which the tea leaves undergo microbial fermentation and oxidation after they are dried and rolled. This process is a Chinese specialty and produces tea known as Hei Cha, commonly translated to dark, or black tea (this type of tea is completely different from what in West is known as "black tea", which in China is called "red tea"). The most famous variety of this category of tea is Pu-erh from Yunnan Province, named after the trading post for dark tea during imperial China.

Source: http://en.wikipedia.org/wiki/Pu-erh_tea
Chrysanthemum tea
Chrysanthemum tea is a flower-based tisane made from chrysanthemum flowers of the species Chrysanthemum morifolium or Chrysanthemum indicum, which are most popular in East Asia. To prepare the tea, chrysanthemum flowers (usually dried) are steeped in hot water (usually 90 to 95 degrees Celsius after cooling from a boil) in either a teapot, cup, or glass; often rock sugar is also added, and occasionally also wolfberries. The resulting drink is transparent and ranges from pale to bright yellow in color, with a floral aroma. In Chinese tradition, once a pot of chrysanthemum tea has been drunk, hot water is typically added again to the flowers in the pot (producing a tea that is slightly less strong); this process is often repeated several times. Chrysanthemum tea was first drunk during the Song Dynasty (960–1279).

Source: http://en.wikipedia.org/wiki/Chrysanthemum_tea
Jasmine tea
Jasmine tea is a type of scented tea which absorbs aroma from jasmine blossoms. Scented tea was known during the time of the Song Dynasty (960–1279); however it was reserved for the Imperial Court. Typically, jasmine tea employs green tea as the tea base; however, white tea and even black tea are also now used. The resulting flavor of jasmine tea is subtly sweet and highly fragrant. It is the most famous scented tea in China.

Source: http://en.wikipedia.org/wiki/Jasmine_tea
Black tea
Black tea is a type of tea that is more oxidized than oolong, green and white teas. All four types are made from leaves of the shrub (or small tree) Camellia sinensis. Black tea is generally stronger in flavor than the less oxidized teas. Two principal varieties of the species are used – the small-leaved Chinese variety plant (C. sinensis subsp. sinensis), used for most other types of teas, and the large-leaved Assamese plant (C. sinensis subsp. assamica), which was traditionally mainly used for black tea, although in recent years some green and white have been produced.

Source: http://en.wikipedia.org/wiki/Black_tea
LOCATION
This research is about opening a Tea house in Zhujiang New Town of Guangzhou. Zhujiang New Town is the new icon of Guangzhou. There are hundreds of commercial buildings with large number of office workers in Zhujiang New Town.

Research Methodology
Survey is the main method of this research. There are 7 questions about age, gender, occupation and how they think about tea in the survey. 50 people in Zhujiang Newtown have been asked to do the survey. The researcher has spent 1 week to do the research from February 24, 2013 to March 1,2013.

Review of Literature

(Map of China)
Source: http://culture.gmw.cn/2013-03/20/content_7065680.htm China, officially the People's Republic of China (PRC), is a sovereign state located in East Asia. It is the world's most populous country, with a population of over 1.3 billion. The PRC is a single-party state governed by the Communist Party, with its seat of government in the capital city of Beijing. It exercises jurisdiction over 22 provinces, five autonomous regions, four direct-controlled municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two mostly self-governing special administrative regions (Hong Kong and Macau). The PRC also claims Taiwan – which is controlled by the Republic of China (ROC), a separate political entity – as its 23rd province, a claim controversial due to the complex political status of Taiwan and the unresolved Chinese Civil War.
Covering approximately 9.6 million square kilometers, China is the world's second-largest country by land area, and the third or fourth-largest by total area, depending on the definition of total area. China's landscape is vast and diverse, with forest steppes and the Gobi and Taklamakan deserts occupying the arid north and northwest near Mongolia and Central Asia, and subtropical forests prevalent in the wetter south near Southeast Asia. The terrain of western China is rugged and elevated, with the Himalaya, Karakoram, Pamir and Tian Shan mountain ranges separating China from South and Central Asia. The Yangtze and Yellow Rivers, the third- and sixth-longest in the world, have their sources in the Tibetan Plateau and continue to the densely populated eastern seaboard. China's coastline along the Pacific Ocean is 14,500 kilometers (9,000 mi) long and is bounded by the Bohai, Yellow, East and South China Seas.

(Map of Guangdong)
Source: http://www.nipic.com/vector/zhuanti/38132.html
Guangdong is a province on the South China Sea coast of the People's Republic of China. Guangdong is also known as Canton in English. It surpassed Henan and Sichuan to become the most populous province in China in January 2005, registering 79 million permanent residents and 31 million migrants who lived in the province for at least six months of the year. The provincial capital Guangzhou and economic hub Shenzhen are among the most populous and important cities in China.
Since 1989 Guangdong has topped the total GDP rankings among all provincial-level divisions, with Jiangsu and Shandong second and third in rank. According to state statistics, Guangdong's GDP in 2011 reached CNY 5,267 billion, or USD 815.53 billion, making its economy roughly the same size as Netherlands. Furthermore, its 2011 nominal GDP is well over half of India's using 2012 exchange rates. Guangdong has the fourth highest GDP per capita among all provinces of mainland China, after Jiangsu, Zhejiang and Liaoning. The province contributes approximately 12% of the PRC's national economic output, and is home to the production facilities and offices of a wide-ranging set of multinational and Chinese corporations. Guangdong also hosts the largest Import and Export Fair in China called the Canton Fair in Guangdong's capital city Guangzhou. (Map of Guangzhou) (A view of Guangzhou)
Source: http://news.gz.soufun.com/2009-09-10/2777983_all.htmltarget=_blank
Guangzhou— known formerly as Canton and romanized as Kwangchow[4] — is the capital and largest city of the Guangdong province, People's Republic of China. Located on the Pearl River, about 120 km (75 mi) north-northwest of Hong Kong and north-northeast of Macau, Guangzhou is a key national transportation hub and trading port.[5] One of the five National Central Cities,[6] it holds sub-provincial administrative status.
Guangzhou is the third largest Chinese city and southern China's largest city. As of the 2010 census, the city had a population of 12.78 million.[7] Some estimates place the population of the entire Pearl River Delta Mega City built up area as high as 40 million including Shenzhen (10.36 million), Dongguan (8.22 million) and most parts of Foshan (7.19 million), Jiangmen (4.45 million), Zhongshan (3.12 million) and a small part of Huizhou adjoining Dongguan and Shenzhen, with an area of about 20,000 square kilometers (7,700 sq mi) (about the same size as Slovenia). In 2008 Guangzhou was identified as a Beta World City by the global city index produced by the GaWC, the Globalization and World Cities Research Network.

（Zhujiang Newtown)
Source: http://cache.baiducontent.com/
Zhujiang New Town is the area in Guangzhou, Guangdong, China, which is between Huangpu Avenue in the north and the Pearl River in the south, and between Guangzhou Avenue as the west and the South China Expressway the east. It includes business landmark buildings, namely Guangzhou Opera House, Guangzhou New Library, the new Guangdong Museum, the second Children's Palace, the Twin Towers and the new Canton Tower. It is planned to be the new central business district (CBD) of Guangzhou.
The Guangzhou customs office has moved to the area since 2006.

(Huali road)
Source:http://www.xinkaiyeyou.com/ps/
Huali road is the ideal place for opening Tea house.
Huali road is the central of Zhujiang Newtown. Thousands of white collar workers are working around this area. Many international brands like Starbucks, COSTA and Mcdonalds have opened shops at Huali road. People who working or living around Huali road are the target customer for Tea house.

Survey Results Summary

In this survey, 50 people have been asked, 16 are Female, 34 are Male.

This chart shows the age of interreges.

At Huali road, almost half of people are white collar workers. Students are also a important part at Huali road.

This chart shows most people like to drink tea than coffee.

This is multiple-choice question. Oolong, Jasmine and Black tea are very popular.

Most people can accept a cup of tea for about 20 yuan. Only few people can accept above 30.

Around 70% people are interesting in a Tea house.

Survey Results Analysis and Recommendations
The data above are collected by 50 people at Huali road. 34 are Male, 16 are Female. Most people who are living or working at Huali road are young workers or students. Most important thing is that people at there like to drink tea more than coffee. But there is about 10 coffee shop around Huali road, it is not any shop like Tea house yet. People like tea but cannot find a place to drink it. According to the chart, Oolong, Jasmine and Black tea are very popular, its should be the main products of Tea house. 48% of people want a cup of tea from 10~20 yuan, 46% of people can accept a cup of tea from 20~ 30 yuan. So the price could be about 15~25 yuan in Tea house. Finally, there is about 70% of people in Huali road want to know what is tea house and want to try a cup of tea at Tea house. To conclusion, opening a Tea house at Huali road is feasible.
Table of Annexes
Survey Form:

性别: 男性/女性 年龄:______ 职业: __________
Gender: Male/Female Age:______ Occupation: __________

1. 你喜欢茶还是咖啡？
Do you like tea or coffee?

A. 茶 B. 咖啡 Tea Coffee

2. 你喜欢那种茶？ What kind of tea you like?

A. 乌龙茶（Oolong） B. 普洱茶（Puer tea） C. 菊花茶（chrysanthemum tea） D. 茉莉茶（jasmine tea）E.红茶（black tea） F. 其他（Other）_______

3.你能接受的一杯茶（大约300毫升）的价格是多少？ How much can you afford for a cup of tea? ( about 300 ml)

A. 15-20 RMB B. 20-30 RMB C. 30-35 RMB

4. 你对茶厅感兴趣吗？
Are you interesting in a Tea house?

A. 不(NO) B. 感兴趣(YES) C.一般般(Just so so)

Reference: http://www.mandarinoriental.com/lasvegas/fine-dining/tea-lounge/ http://en.wikipedia.org/wiki/Oolong http://en.wikipedia.org/wiki/China http://en.wikipedia.org/wiki/Guangdong http://en.wikipedia.org/wiki/Guangzhou http://cache.baiducontent.com/ http://news.gz.soufun.com/2009-09-10/2777983_all.htmltarget=_blank http://culture.gmw.cn/2013-03/20/content_7065680.htm