Business Model

Table 3: Valerine’s Herbal Tea House Business Model Canvas Key Partners v Increase tourism

product offering

Customer Relationships v Manage Customer

service

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media pages v Promotion and marketing cost

v Operational cost

v Appliance and equipment cost v Lease Fees

v Acquisition of museum items cost

Revenue Streams v Entrance fee

v Gift shop sales commission

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5.1. Business Model

As illustrated in the business model canvas above:

Key Partners

Our key partners will include all the establishments and individuals we collaborate with to get this project up and running, such as our marketing and promotion partners, tourism stakeholders, local producers and the local community and the Government. It is crucial to get the support of the local community members, as it will encourage their acceptance of the operation.

Partnership services will be solicited and contracted to ensure the smooth flow of the operations.

Key Activities

The key activities are the most critical process in the business model as it includes all the physical aspects, which will make the plan a reality. These activities will consist of design and construction of the Tea House and Tea Farm, securing funding, marketing and promotion, design and layout of the tour etc. These activities are the main characteristics of the operation for it to function and be successful.

Key Resources

Fortunately, our key resources are readily available to us. Our employees will be specifically employed due to their wealth of knowledge, experience and skills. Old Road Village is very rural, and many of the residents have experienced the practices and traditions that will be displayed at the Tea House. Therefore, we will employee preferably able-bodied retired elders to work as the demonstrators and gardeners as these people will have firsthand experience to this tradition, which they will be able to share with our guest. Our location is one of the most

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fertile areas on the island. Therefore, we will have no issues with our garden and vegetation at the property, and also it is a very historical area which will set the scene and the ambience for our operation.

Customer Segment

The Tea House will target tourist, mainly the cruise passengers as cruise ships visit the island every day with an average of two cruise ships bringing over six thousand guests to our shores daily. We welcome every type of guest; however, we would mostly target guest that are interested in learning and embracing local cultures of different destinations as they are the ones who will most enjoy and appreciate the experience. Also, we will target the schoolchildren and local people, as it is our social responsibility to ensure that the local adults are reminded of the local culture and practices, which could stimulate their interest. More importantly, the schoolchildren will be introduced and educated about our traditions, as this will assist in the revival and sustainability of our local heritage and culture.

Value Proposition

One of our primary objective of creating this tour is to assist in diversifying the tourism industry in St. Kitts by introducing a product that promotes and educate our guest about the heritage and culture of the destination. Our value proposition is to utilise our heritage and culture to differentiate the island from other islands making the destination more attractive and improving the destination brand recognition through our efforts at the Tea House. The guest will not leave with just an experience but also will valuable knowledge that they can use to improve their health through natural remedies. We also propose to collaborate with locals to source and purchase artefacts for the museum and create an outlet through our gift shop for local suppliers to feature and sell their products in exchange for a small commission towards the gift shop. In

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addition, employment preference will be given to persons from the local community, who is qualified and trainable to improve their lives through income generation. Also, Taxi operators will be contracted to transport guest to and from our location and will be compensated for their services. All of these aspects can position Valerine’s Tea House as a social enterprise.

Cost Structure

Due to this being a startup, the company will incur some expenses to get the ball rolling. These expenses will include material and construction cost, recruitment and training fees, marketing fees, legal fees, landscaping and gardening fees, purchasing of equipment and furniture, acquisition of artefacts fees, marketing, promotion etc. All of this is necessary to get the business up and running. The startup capital will be solicited by the manager acquiring a concessionary government loan from the local Development Bank at 7.5% interest instead of the usual 11%interest charge on regular business loans. The company will be given a period to repay this loan.

Revenue Stream

Revenue will be generated, from daily entrance fees and gift shop sales commission. For pre-booked tours, cruise line, hoteliers and tour operators on behalf of the company will collect all monies then transfer to the company daily. In the case of the Gift Shop sales, the company will receive a 20% commission on all items sold at the gift shop. This commission will cover maintenance and assist in providing a salary for the gift shop attendant.

Channels

The Tea House will be promoted via attractive brochures, which will be available at every

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hotel's tour desk, air and sea arrival halls, cruise ships and cruise ships that visit the destination.

It will also be featured in the local magazine and map, destination website and the company's website, and at every significant tradeshow and cruise, shows attended by the St. Kitts Tourism Authority in the source market. Also, as the Tea House becomes more popular and starts attracting more visitors, the company will also encourage guest to rate the tour on the Trip Advisor website. This website is the most visited websites by travellers who seek information about tours before visiting any destination.

Customer relationship

The design of our tour will allow our customer to be immersed in our culture through the experience provided. We are allowing them to embrace and relate to the locals, resulting in a connection to the people and the destination. They will also receive information and knowledge about the plants and how they could improve their health and well-being. In the case of the residents, some will be newly introduced while others will be reintroduced to their local culture, the part that is not being taught in school or being taught by modern parents. Our aim will ensure that our visitors not only receive value for their money but also to ensure that they leave our establishment more educated about holistic and natural remedies giving them a more natural alternative to traditional medicines and leaving a positive and fulfilling lasting impression on every guest who walks through our doors.

In addition, there will be a section on our website, which will allow our guest to make comments and leave feedback about their experience, for other potential visitors. This information will assist with the transparency of our operation and promote the Tea House through word of mouth and experiences.

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