Key takeaways
- In 2012 there were more than 1800 coffee cafes in India, even though chai was by far the more popular choice of beverage.
- Two IIT graduates who are tea lovers launched their tea brand “Chaayos”, after viewing the opportunity for the tea business in India.
- Different varieties of tea were incorporated by Chaayos naming it “Meri Wali Chai”, keeping different tea tastes of different places and according to the customer preference.
- Chaayos’s Business model is the reason behind its success.
About Chaayos
Daily routine or social life is incomplete without Tea (Chai) in India. Be it bedtime tea, high tea, tea during outings, tea outings, or tea after functions or events. Street vendors are found almost everywhere and it is one of the famous get-together spots for office workers and casual gossip for other people. By now you all must have understood the importance of tea in the Indian lifestyle, homemade tea is best in quality but even after being one of the most preferred refreshments, finding a hygienic, good quality and customized tea is quite difficult. It is quite clear that the tea business has a huge potential in India, two IIT graduates who are tea lovers launched their tea brand “Chaayos”, after viewing the opportunity for the tea business in India. Different flavors and varieties of tea were incorporated by Chaayos keeping different tea tastes of different places and according to customer preference.
Nitin Saluja, co-founder of Chaayos wanted their outlet to have Indian touch and not look or give a vibe of global coffee outlets, so keeping this in mind they came up with ideas that make their outlets resemble India, for example, you can see a rustic vibe, tea kettles, tea glass holders, chai jute packaging and many other tea elements which made their outlets look different and gave the vibe of the clean place where people can go for their tea break. A successful business idea comes from a dedicated team that understands their customer preference, need, and delivers it according to their customer preference. Chaayos did this by relying heavily on their customer preference, it also comes from the ability to do things differently as Chaayos did by keeping the element of ‘Chai’ in everything from their art details, servings, presentation, etc.
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To make sure that their business plan gets successful both the founders Nitin and Raghav physically managed one store each at the start, they made sure to give it all and not restrict themselves, and hence they created a diverse menu, both from their experience and customer preference as well as with the help of their customer feedback about how would they love their tea i.e., ‘Meri Wali Chai’. Chaayos has been progressing at a good speed from its very first store, it started with one store in 2012 and now has more than 80 stores across Mumbai, Delhi NCR, Chandigarh, and Banglore. In 2012 there were more than 1800 coffee cafes in India, even though chai was by far the more popular choice of beverage, here’s how Chaayos changed that, Coffee cafes very soon became a place to work out of and have clients’ meetings in. But that’s not what chai is about. Chai is about relaxing, feeling rejuvenated, and just taking a break from the daily stresses of life. It is with this thought that Chaayos now has 140 tea rooms across India and they are serving more than one million cups of chai each month spreading the feeling of ‘Meri Wali Chai’. With a new brand identity, Chaayos has now set on a mission to increase their footprint to 500 stores, with one single objective that is making chai and snacks easily available according to the customer preference and helping the consumer to relax.
And this is how their new branding was born:
Ask anyone what an evening break means to them, and a majority will say it’s their favorite cup of chai with a snack on the side. The brand is also pitching this positioning in a set of very relatable ads, like the one where Varun has just endured a stressful meeting and turns to the only thing that could make him relax which is chai + snacks.
Business Model
- The Value proposition of Chaayos
The Value proposition of a plan of action comprises of the items or administrations any business offers, worth to its clients, and furthermore one-of-a-kind elements that give an upper hand on the lookout. The offer of Chaayos reflects in its elite result of ‘Meri wali Chai’ or ‘My choice tea’ which is a combo of value, taste, newness, and various assortments. Chaayos offers an assorted scope of tea flavors for example 25 tea assortments alongside more than 1,000 different ways for modifying something similar. Some of them incorporate Kadak (extra strong) desi chai, Irani tea (greater nature of milk and less of water), Sulemani tea (lemon dark tea). Additionally, clients have the choice to choose add-on flavors from Adrak, Masala, Saunf, Elaichi, Tulsi, Mint, Kashmiri Kehwa, and some more. So Chaayos has altered tea arrangements as indicated and preferred by the individual’s taste and choice. Other than tea, Chaayos offers bites and tea mixes in bundled structure.
- Target Customer Base
The objective client base of Chaayos is both Gen-Z and Gen-Y as tea is enjoyed by both generation clients. The brand has clients from upper-working class society, middle class, and higher-class society.
- Marketing, Advertising, or Promotion Strategy
Current advertising procedure: The plan of action of Chaayos comprises of solid showcasing or advanced marketing and promotional techniques that cover its USP (Unique selling proposition). The Brand is utilizing different viable promoting devices for example advanced or online marketing, social media, apps, branding, and so on.
USP of Chaayos:
Exceptionally inventive and different seasoned clean, rejuvenating, modified, and customized tea is the USP of Chaayos. Likewise, the brand has different parts of USP too including:
- A Premium environment of outlets
The air inside Chaayos outlets is extraordinary rejuvenating and unwinding. With appropriate and right sort of ambient sound, loosening up furniture plan, and so forth, the brand gives an ideal climate to loosen up the brain. - Higher result quicker than expected
Chaayos chips away at a system to esteem and fulfill each client of outlet that functioned as USP for the brand in delivering higher results. Various snacks and side dishes to accompany the tea is presented by the brand like Maggie Sandwich, Wada with pav, and so on have additionally added to making loyal clients of Chaayos. The brand has acquired achievement in a short span of time, thanks to its procedure of joining innovativeness, consistent developments, and trying different things with tea that was past assumptions. - Progressed input component
Chaayos has carried out a clear-cut interaction control framework in which criticism by customers, negative feedback, etc is something they pay attention to, these are essential and help them in working on their flaws and do better. Chaayos staff is accomplished and prepared. Likewise, processes are client-driven. - Differentiated Menu
Chaayos has a differentiated reach on its menu. In the beginning, from serving a different variety of tea, the brand additionally extended to serve various snacks and dishes for both Indian and International clients. They are likewise utilizing Kulhads to serve tea which is an eco-accommodating framework. - Advancement methodology and instruments
Chaayos’ showcasing or advancement methodology incorporates both on the web and disconnected advancement apparatuses. The brand is well-utilizing internet advertising apparatuses like online media for digital promoting purposes and email marketing. Its offline marking procedure rotates around clients close to outlets or walk-ins. The loyalty program of Chaayos is for most faithful clients and this mission is for all outlets.
Online/Digital marketing and promotional strategy: Chaayos is involving advanced digital media for its advertising or marketing, for example for making brand mindfulness and expanding client base with an emphasis on further developing client care. To draw in their crowd over computerized media as they handle inquiries of clients adequately and instantly is also their primary strength. Some of the platforms used by Chaayos are:
- Facebook-based advertising: The Facebook page of Chaayos has turned into an extreme stage for its special exercises with more than 32,000 fans and viewers. Through this stage, Chaayos permits its fans to reach out to the brand by sharing various thoughts, ideas, stories, and so forth in an open conversation gathering. Through this media stage, the brand publicizes its occasions and other promotional offers and activities as well.
- Instagram as a marketing tool: Chaayos utilizes Instagram’s photograph-sharing apparatus to associate with its clients and fans. With more than 22k Instagram supporters, the brand is involving this advanced media stage for various missions. It routinely posts photographs of various renowned visitors or famous people who visit their outlets and furthermore plans and show e-cards for celebration and festival purposes.
- Twitter as a promotional tool: Chaayos has a fan base over Twitter too. The brand consistently reacts to inquiries of clients there. It additionally offers e-coupons to its clients for another tea verity and furthermore, the clients can make their own modified tea with Chaayos tea pack and can share their encounters on Twitter. The brand has started a mission on Twitter -Try different types of chai and experiment with it, which expands its client base by 25% in Chayoos outlets.
- You-tube-based advertising: Chaayos is utilizing YouTube viably for promoting exercises. The brand business visionaries share their thoughts and example of overcoming adversity consistently by various short video clips to draw in individuals and make them intrigued and engage them. After all the online and digital presence and promotion, Chaayos is additionally doing advertising and marketing offline also with neighborhood markets and workplace cafeterias, etc.
- Extension plans: With the coordinated effort of Chief Advisor Ajay Koul, Chaayos is focused on 300 outlets from the current 53 outlets in 8 distinct urban communities in the approaching 5 years. Through its extension plan, Chaayos is targeting expanding its income by Rs. 100 crores in the approaching 2 years. The brand is additionally intending to grow in the worldwide market later on.
- Competitor Review
Chai Point, Infinitea, and Chaipatty are major competitors to Chaayos. The brand’s strategic advantage over its rivals lies in its top-notch environment of outlets, good service pace, higher results in a more limited period, exceptionally modified and customized items, and a different menu range for both National and International preferences.
- Income or Revenue Generation
from its outlet. Every outlet of the brand begins creating gains within 3-4 months after its opening. There was a 30% increase in the brand’s business development in 2018, which includes month-to-month deals of tea and snacks which is around 4-4.5 lacs cups of tea and snacks of approx. 2 lacs units. Chaayos appreciated Rs. 52 crore income in the financial year 2018.
The brand creates income from serving tea on request or demand, which has a portion of 20% of the total revenue. They sell approximately 300 boxes of bundled tea mixes of 100 grams each, per box cost is Rs. 200.
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Conclusion
In spite of having different choices and increasing number of coffee cafés, tea is the record-breaking top pick of most the individuals in India. The accomplishment behind Chaayos lies in its creative methodology in both the taste of it’d product and its marketing strategies, proving that it’s equally important to focus on both product and its marketing. Without a good product, all the marketing is useless and without marketing your product which might be the best in town but is of no use if you can’t reach to your prospect customers if people don’t know about your product they can’t reach you. So, it’s very important to work on both good product and marketing strategy.
Chaayos has proved one of the most important things for any business to become successful is understanding its customers. Chaayos not only understood what the majority of the people wanted but also worked according to everybody’s needs and came up with several flavors and customized tea. Chaayos is one such example of overcoming adversity among many other examples of overcoming adversity of how individuals began with a thought, worked on it, and made an effective endeavor out of it. Your story can also be the one like Chaayos. Simply continue to search for valuable open doors, it very well maybe just be there in front of you while tasting and sipping upon a tea.
Astha Kumari
Content writer
Oshi Jain
Graphic designer
Vidhi Das
Editor