Venture Proposal and Marketing Strategies

This assignment provides a detailed report on the process of creating a new business venture, from naming the company to developing contingency plans. The report includes market segmentation strategies, analysis of competitors, and importance of tangible and intangible assets in the venture. It also presents data on the cost of solar vehicles and profit projections for 2019-2021.

Business Proposal and New
Venture Pitch Presentation

Table of Contents
INTRODUCTION ..........................................................................................................................1
PART A...........................................................................................................................................1
1.About venture .....................................................................................................................1
2.Owners Experience/ Background........................................................................................1
3.Market Research in order to assess the viability of the New Venture.................................2
4.Operational Requirements ..................................................................................................4
A.INTENGIBLE REQUIREMENTS...........................................................................4
B.TANGIBLE REQUIREMENTS ..............................................................................4
5.Cost and pricing strategy.....................................................................................................5
6.Contingency Plan/ Exit Strategy.........................................................................................5
7.Financial Forecasting...........................................................................................................6
PART B..........................................................................................................................................10
Covered in PPT.....................................................................................................................10
CONCLUSION..............................................................................................................................11
............................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12
INTRODUCTION
Entrepreneurship is the ability of a person to organise and develop a new venture. It is a
process which include designing, launching and running business. This is also termed as

willingness of an individual to start a new and creative business and to manage the risk for
earning higher profits. Further in this report a new business venture will be launched to
determine the requirements and strategies for launching a new business. This report include
market research, operational requirements, cost and prising strategy, financial forecasting and
contingency plan or exit strategy (Cooper and Folta, 2017).
PART A
1.About venture
Aleona Ankrah is an inventor and design engineer who is planning to open a business of
solar cars and name of the company that is decided by the Aleona is COSMIC car company.
Entrepreneur is having good experience in this field so their plan is to make solar cars because
petrol and diesel is scare resources and soon will get diminish. To deal with this problem and for
future demand of customers, Ankrah is planning to launch such machine in the world. Other
reason for choosing this plan is because there are limited provider of such products in the market.
Company's plan is to focus on future generation as well as to the lower income group of people
who does not afford petrol expenses. This car will have some good features in it like it will have
both the facilities in it i.e. customers can use it with petrol as well with solar power charge. This
car will be having stylish solar panel an the top of the car, which get charged by sun rays within
4 to 5 hours and will become ready to use. This Cosmic cars will have petrol/diesel options also
in it for the emergency purpose (Hitt and Duane Ireland, 2017).
2.Owners Experience/ Background
Owner's name is Aleona Ankrah an investor and design engineer, who was working
science 20 years in Rolls Royce. Owner was working their as a components specialists, reason
for leaving the job was that Aleona always wanted to run her own business but for that she
needed some experience to analyse how business practices take place and what major thing has
to be focused. Twenty years experience has added so much of confidence in her to start own
business. Her dream was to open her own car company and satisfy the demand of customers in
market. But on the other hand she also wanted to work on something which does not harm the
environment by exploiting scare resources. To meet make he dream reality she is planning to
launch solar cars in the market and open her new company called Cosmic cars. For starting a
venture she needs some advice to make her plan successful

3.Market Research in order to assess the viability of the New Venture.
PRIMARY DATA
Questionnaire
Q1. Are you aware about the new venture called Cosmic cars?
a) Yes
b) No
Q2 What age group do you belong?
a) 20-40 years
b) 40-60 years
c) 60-80 years
Q3 Which factor influence you to buy cars?
a) price
b) features
d) advancement
Q 4 which auto mobile brand do you like the most?
a) rolls Royce
b) Aston martin
c)Bentley motors limited
d) Tesla
Q5 which feature you find best and different in it?
a) body of the car
b) average
c) comfort
A questionnaire was prepared to conduct the survey from the general people. This was done for
finding out the market environment, what market segment should company focus on, what
market strategies they need to adopt for competing in the existing auto mobile market and to find
out their top competitors and what what strategies they are applying.
With the help of primary and secondary data it is find out some of the major required
information that will help the organisation to become successful in future-:

 Market segmentation: It is a form of marketing trick which Cosmic cars will opt for
becoming wider competitor in the market and to attract customers. Segmentation is done
on the basis of 4 categories like demographic segmentation, behavioural segmentation,
psychographic segmentation and geographic segmentation. As per the company's plan
their segmentation will be based on demographically on three variables which are age,
gender and income group. Age plays important role in this segmentation because age
group of 40-80 are very tensed about the future because of the scarcity of resources .
They will be more attracted toward the new invention of solar cars. Next variable under
this group is income, i.e. people who are not in the position to afford petrol expenses will
love this type of cars because it get charged through sun rays and does not require petrol
to run it. Another segment that Cosmic will follow is psychographic segmentation
because it is dependents on the lifestyle, opinion and activities of the people. For example
there are many customers who prefer to buy new or innovative things, will love this
product and get attracted toward it (Burns and Dewhurst, 2016).
 Marketing strategy- Marketing strategy is the grand plan made the organisation for
smooth running of their business activities. After analysing primary as well as secondary
data it has been found out that being the new venture it has to follow a complete strategy
process for making its place in the market and in the heart of customers. This is because
there are may other competitors present in the market who try to pull down Cosmic Cars
to reach at higher level. First step which require to form a venture is know the target
market first so that products can be launched as per the needs or demand of the market.
Next step is to reach to the competitors which include understanding or analysing the
competitor's strategy to beat them by opting better one. Distribution channel will also
play an important role in the success of the Cosmic venture because it will help the
company to easily reach to their customers. Last but no the least, for making Cosmic a
successful venture, owner has to create a smart marketing goal which provide them a path
or direction in their operation (.Lipset, 2018)(Aldrich, 2017).
 Competitors- With the help of primary and secondary data, it has been find out that
Tesla will be the top competition for the Cosmic. This is because it former is also dealing
in almost same product and is very famous company in the market. People already know
about it, which will make it difficult for the Cosmic to survive in the market.

4.Operational Requirements
A.INTENGIBLE REQUIREMENTS
Intangible requirements include assets which can not be seen or touched but it plays a
very important role in the company as they will add value in the Cosmic cars. Some of the
important intangible requirement for this new venture will be-:
 Goodwill- Goodwill represent the brand image of the company, it can not be seen or
touched. Goodwill also shows values of tangible assets
 Licence- This is the another intangible requirement for any venture, because without
licence it will not be able to run their activities as it is not legal. Licence is a type of
permission from the government to run the business successfully (Davidsson, 2015).
 Trademarks- Trade mark is intangible asset of the company which is the visual symbols
of the brand, that make it different from other brands.
 Patents- Patent is also required for the company because it will help to inventive designs
and solutions.
 Copyrights- Copyright of the company means reserved right on the creative work of
venture which others are not allowed to follow.
B.TANGIBLE REQUIREMENTS
Tangible requirements are the assets of the company which can be seen through the
naked eyes and also possible to touch it. These requirements play important role in the company
for running their operations which is not possible without it (Zahra and George, 2017).
 Land- This is the basic requirement for the Cosmic cars, because they will be needing
lands for opening their factories as well as their showrooms in every part of the world.
Entrepreneur has to plan a proper location for its factor so that they can easily mobilise
their products in the main market to the customers.
 Building- Building is another tangible requirement for the venture because they will be
needed to have their offices and headquarters in different countries as well as cities.
Building is tangible asset for the company because it can be seen and touched easily.

 Machinery- This is the another Tangible asset for the venture which it will be needed in
future. Machineries are the heart for the company because without it, functions id not
possible in the automotive industry (Meyer, Neck and Meeks,, 2017).
 Cash- Enough Finance also act as the tangible asset of the company as it provide major
support in the operations of the company. In new ventures, requirement of capital is very
important because entrepreneur does not have strong bank balance.
5.Cost and pricing strategy
After analysing the market requirements and conducting a survey, some of the cost as
well as pricing strategy is find out for the Cosmic cars which they will for achieving success in
the market.
 Cost strategy- Coming for the first time in the market require lot of courage and money.
This is because there is no help in the market, price of every thing is very high for the
fresh company. Cosmic car will also face high costs problem in starting years if they does
not build a good strategy to minimise their costs. Strategy that has made for the Cosmic
to compete in the market is their capacity utilisation has to be high, high productivity,
lean production methods, effective production process and effective distribution channel.
This will help the venture very much to compete in the cost race of the market and to
provide lower priced products to the customers (Kirzner, 2015)(Dees, 2017).
 Pricing strategy- it is advisable to the Cosmic cars to use penetration pricing strategy in
which they are require to enter in the market with lower price and increase it later once it
reach to competitiveness.
6.Contingency Plan/ Exit Strategy
This is the advanced strategy made for the Cosmic cars in case their operation gets fail in
future. Always a B Plan should be ready for the companies to face the contingency situations.
One of the strategy that company can follow in future is merger and acquisitions, in which
company can merge with its top competitor called Tesla to get the win win situation other
strategy for the Cosmic is to liquidate or close their business and sell their cars on lower prices to
the customers or to the competitors.
7.Financial Forecasting
overall business running costs

Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Net cash from
operating activities (A)
20.00 40.00 160.00
Net cash used in
investing activities (B)
(47.00) (49.35) (51.82)
Net cash used in
financing activities (C)
34.10 37.51 41.26
Net increase in cash
and cash equivalents
(A+B+C)
11.17 28.16 13.60
Cash and cash
equivalents at
beginning of period
18.27 56.32 163.04
Cash and cash
equivalents at end of
period
29.44 84.48 176.64
Net cash from
operating activities (A)
BY 10% every year
Net cash used in
investing activities (B)
by 5% every year
Net cash used in
financing activities ©
by 10% every year
Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)

Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Cash and cash
equivalents at end of
period
29.44 84.48 176.64
Cash flow forecast
2019 (£ million) 2020 (£ million) 2021 (£ million)
0
20
40
60
80
100
120
140
160
180
200
29.44
84.48
176.64
Forecsated cash flow
Series1
Cash and cash equivalents at end of period
Series3
Year
C a s h a n d cas h eq u iv a len ts
Interpretation:
From the above data It can be seen that future cash flow will increase from 29.454 £
million to 176.64 £ million in two to three years.
the sales and costs forecast for the Products/ Services
Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Sales of solar vehicles 130 143 157.3
Cost of solar vehicles -90 -99 -108.9
Profit 40 44 48.4

 It is expeted that sales will be increased by 10% per year
 It is expeted that cost will be increased by 8% per year
Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Sales of solar vehicles 130 143 157.3
2019 (£ million) 2020 (£ million) 2021 (£ million)
0
20
40
60
80
100
120
140
160
130
143
157.3
Sales of solar vehicles
Interpretation:
from the above data it can be observed that current demand of solar vehical in market
is 130 £ million. After that it is increasing from 143 £ million to 157.3 £ million.
Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Cost of solar vehicles -90 -99 -108.9

-90
-99
-108.9
2019 (£ million)
2020 (£ million)
2021 (£ million)
Interpretation:
Above data is showing cost of solar vehicles which is again increasing from year to
year. i.e. in 2019 it is showing 90 £ million and will increase in future to 108.9 £ million but
will gradually declining by 9£ million.
Particulars 2019 (£ million) 2020 (£ million) 2021 (£ million)
Profit 40 44 48.4

40
44
48.4
2019 (£ million)
2020 (£ million)
2021 (£ million)
Interpretation:
Above data is showing profit scenario of the company which is showing a continuous
rise in their future from 2019 with 40 £ million till 2021 with 48.4 £ million
PART B
Covered in PPT

CONCLUSION
From the above report it has been concluded that opening a new venture require a lot of
efforts starting from the name of the company till its contingency plans. While making this new
venture proposal some of the marketing segmentation strategies have been discussed as well as
its competitors is also observed to meet their level in the market. Other than this, importance of
tangible and intangible assets to the venture has been determined.

REFERENCES
Books and Journals
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Zahra, S. A. and George, G., 2017. International entrepreneurship: the current status of the field
and future research agenda. Strategic entrepreneurship: Creating a new mindset.
pp.253-288.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship. pp.348-367.
Lipset, S. M., 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Aldrich, H., 2017. Learning together: National differences in entrepreneurship research. The
Blackwell handbook of entrepreneurship. pp.5-25.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset. pp.17-44.