P1 Explain new venture and identify specific target markets

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain new venture and identify specific target markets and undertake competitive
analysis...................................................................................................................................3
P2 Tangible and intangible resources which required by chosen company for launching new
venture....................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Produce a credible proposal to launch a new venture in chosen organisation..................6
P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it...............................................................................................................8
TASK 3............................................................................................................................................9
P5 Different promotional activities and channels that will support launch of the venture and
justify it ..................................................................................................................................9
P6 Develop an appropriate promotional activities plan for both launch and pre launch of new
venture..................................................................................................................................11
P7 Produce an itemised monthly cash budget for pre-launch phase of the venture and first 12-
18 months preceding launch of venture................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................17
.......................................................................................................................................................17

INTRODUCTION
In current time an individual wants to launch their own business in any industry for that
they do research and analysis of market and identify suitable sector in which their business
survive for a long time(Scarborough2016). By this a person also feel independent, confident and
also generate employment for others. A person launch their new venture at any place either in
domestic market or international market, their main purpose of establish new enterprise is to
satisfy and fulfil needs and wants of customers of their focus sector. New venture launch for this
assignment is Coffee Cafe Town which is going to launch in market of Italy. Mentioned topics in
this report are analysis of target market, competitive analysis and chosen resources of respective
cafe. Along-with this, it explain skills and capabilities which are required of work in respective
cafe and how it can be develop, it also contain explanation and justification of promotional
activities and budget of Coffee Cafe Town.
TASK 1
P1 Explain new venture and identify specific target markets and undertake competitive analysis
Coffee Cafe Town is a new venture of the food and beverage industry which is going to
launch their business in Italy, United Kingdom(Nagyet.al., 2012). It offer quality and variety of
products such as gourmet coffee,flavoured coffee, iced coffees,healthy and fresh baked
breakfast, Italian and continental dishes, espresso, hot chocolates and many more. Their are
several services which attractive customers towards Coffee Cafe Town such as they establish
little library for book lovers in that they kept multiple type of novels, they open play area of
indoor games for children and adults both etc. Along with this Coffee Cafe Town also plan to
organize some programmes related to singing, poetry and so on. It is a small business which have
less than 300 employees. In Italy there is large ratio of small business enterprise and it is around
98% of all business.
Business associate of respective cafe conduct evaluation and examination of market at
which they plan to launch their cafe, in this they identify their potential and desire customers.
After deciding potential customers managers of Coffee Cafe Town plan and develop strategies to
attract them in effective and efficient manner, for this they design their promotional and
advertising strategies according to cover their target audiences. Their are some powerful

components and elements which are evaluate and determine by respective cafe so that they
accomplish or achieve their objectives and targets in best way, these are explain below:-
Identify particular target market:- Target market refers to identifying group of
customers from focus market where company is going to offer its products(Kariv2013).
Identifying target market help an organisation to identify group of customers who display same
features such as age, location, gender, income, taste and preference, lifestyle etc. Before
launching their business in Italy respective conduct analysis of target market. By which the
Coffee Cafe Town able to identify their target audiences. Target market of respective cafe are
male and female coffee and books lover, middle and high income group peoples, children and up
to 45 age group peoples, peoples who love to spend time in cafes and read books. The respective
cafe also focus to business class peoples who want to conduct their meetings or discussion in
cafe. When respective company do analysis they able to know coffee culture of Italy and they
under peoples like to spend their time in cafe so Coffee Cafe Town plan their strategies
accordingly.
Analysis of competitors:- Competitive analysis is critical portions of making plans for
business. In this a company can identify its competitors and evaluate their strategies and plans to
identify its strength and weaknesses which is related to products and services offer by them.
Through this analysis both companies compare their strength and weakness and identify their
opportunities and threats, then plan strategies accordingly to be successful in target market. The
Coffee Cafe Town conduct competitive analysis before launching their business in Italy by
which they able to understand their customers and identify competitors strengths and
weaknesses. In Italy there are large number of coffee cafe, so competition in respective market is
high for Coffee Cafe Town. By evaluating this, respective cafe able to design and develop
appropriate strategies which help them to sustain and run their business in selected market in
effective and efficient manner.
P2 Tangible and intangible resources which required by chosen company for launching new
venture
There are various things which is essential for establishing and running a business some
of them are intangible which customers and providers can only feel whereas some are tangibles
which can be seen by customers or consumers(Chrismanet.al., 2012). But a company has to
maintain and develop both the resource because both of them is equally essential and important

to attract and retain customers. So it is the responsibilities of management to do regular analysis
and research by which they update and innovate their resources on continuous basis which attract
more audiences or customers. When a person want to launch a new venture it is necessary for
them to identify resources that they required to run a business in effective and efficient manner.
So the managements of Coffee Cafe Town do analysis of tangible and intangible resources which
are required to develop and run their business in effective manner, which description is given
below:-
Tangible resources:- Tangible assets or resources are those which are present in physical
form and it include both current assets such as inventory, patents, copyrights etc. and fixed assets
like machinery, land, buildings, chairs, table and many more(HmieleskiandLerner2013).
Tangible resource help an organisation to establish and it can be showcase in front of others. For
Coffee Cafe Town tangibles resources help them to attract and convince their customers to spend
money on their products and services. All tangible assets help Coffee Cafe Town to cook and
prepare their products in effective and appropriate manners which attract customers. If the
ambiance of respective cafe is attractive and it decoration is eyes catching it will attract more
customers. It include three aspects which are mentioned below:- Human Resource: It is a part of tangible resource which is important part of Coffee Cafe
Town. It help them in accomplish goal and objective of the respective company. Human
is consider as different peoples such as employees and customers. Financial Resource: It is most important part of the respective organisation because it
help them in conducting activities in effective and efficient manner. It help Coffee Cafe
Town expand their business in international market.
 Physical: Physical related to the building, staff, coffee makers, high quality espresso
machines, coffee grinders, books, different game, refrigeration system, chairs, tables,
luxury sofa, mugs, ovens, toasters, other elements use in cooking, security systems and
many more
Intangible resources:- Intangibles resources are those assets which are not exist in
physical form, it include resources like trademark, patents rights, copyrights, franchise rights,
leasehold interests, goodwills, pleasant environment and atmosphere, services offer by
companies, quality of products which they offer and many others(Burns2017). As it represent by
the term intangible, that it cannot be touch by a person or customers, it can only be see or feel by

an individual. It also help companies to attract their in effective manner customers such as by
providing services, best quality products, creating brand awareness, maintain effective
environment and so on. The intangible resources or assets of Coffee Cafe Town such as their
pleasant surrounding, effective services, better quality products, innovation in products etc. help
them to catch attention of customers and convince them to spend money on their services.
Both tangible and intangible assets help Coffee Cafe Town to crate and maintain positive
image of their brand and name in front of their target customers through which they achieve their
goal and objective in appropriate manner.
TASK 2
P3 Produce a credible proposal to launch a new venture in chosen organisation
When a person decide to start a business he/ she must have to conduct a appropriate
analysis and evaluation of market so that they can analysis their target audience and market, then
plan their products and services in appropriate and effective manner. If a company conduct
research in effective manner then it outcome will be positive and they various opportunities to
attract more new clients and investors. It is essential for Coffee Cafe Town to conduct analysis
and evaluation of market before they enter into it this will help them in achieving goal and
objective in effective and efficient manner(CurleyandFormica2013). To do analysis the
respective cafe develop and design proposal to launch their new venture, which is mentioned
below:-
Executive Summary Coffee Cafe Town is going to establish in Italy, United
Kingdom, which offer variety and quality of products and
services. Covered topics in this report are analysis and
evaluation of target market, competitive analysis and chosen
resources of respective cafe. Along-with this, it also evaluate
skills and capabilities which are required of work in respective
cafe and how it can be develop, it also contain explanation and
justification of promotional activities and budget of Coffee Cafe
Town. The respective use market analysis through which they
identify their target audience and market, then they develop
strategies according to it so that they attract more customers.

They also conduct marketing strategy that help them to evaluate
and design marketing strategies for effective promotions and
advertisements(ValdezandRichardson2013).
Company Description Coffee Cafe Town is a new venture which is going to launch in
Italy. It offer variety of products such as gourmet
coffee,flavoured coffee, iced coffees,healthy breakfast, Italian
and continental dishes, espresso, hot chocolates and many more.
Their are also numerous services which attractive their
customers like they establish little library for book lovers in that
they kept multiple type of novels, they open play area of indoor
games for children and adults both etc. Along with this they also
plan to conduct events like poetry and singing programmes.
Market Analysis Coffee Cafe Town conduct market analysis through which they
able to identify their target audience and market and then plan
strategies according to it which help them to enhance their
profitability and number of customers. The respective company
conduct SWOT analysis and PESTEL analysis to do market
analysis in effective and appropriate
ways(HantmanandGimmon2014). Through SWOT they able to
analysis their inner strength and weaknesses and identify its
opportunities in new market and threats from its competitors. By
PESTEL they analysis and evaluate macro environments or
external marketing environments of the respective company in
effective and efficient manner. The major principle of
conducting market analysis by respective company is to
understand the market and audiences and make strategies
according to it so they attract and communicate more customers
or audiences.
Marketing Strategy Coffee Cafe Town able to frame their overall business plan
through conducting marketing strategy. They able to know about

their all aspects from identifying clients and customers to
conducting business and marketing in effective way. By
developing marketing strategy the respective company able to
design effective plans and strategies to attract customers, do
promotions and advertisements and effectively achieving goal
and objective.
Financial Status Analysing financial status of a company is very important before
launching a new venture in any country. Coffee Cafe Town do
financial analysis of their company before launching in Italy for
it they evaluate different factors such as financial position,
viability so that they able to know their economical conditions.
If their financial status if not sound they borrow money from
different sources such as bank loan, borrowing from financial
institutions and so on. Coffee Cafe Town required £100,000
fund for launching a new venture in Italy
P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it
When a person plan to launch a new business they required various type of skills and
capabilities to establish and run business in effective and efficient manner. Some of essential
skills and capabilities can be develop through class room teaching but some of them are by birth.
So when the owner of Coffee Cafe Town wants to start their business he/ she required various
essential skills and capabilities, some major skills and capabilities and how it can develop are
describe below:-
Skills:
Marketing Skills:- When a person launch a new venture they must required basic and
core skills which is marketing so they attract their target audience and market in effective and
efficient manner(Faemset.al., 2012). It is essential for owner of Coffee Cafe Town to have
marketing skills because by it all business ideas are being formulate such as segmentation of
market, targeting customers, positioning products and services, brand managements, evaluate

consumer behaviour and so on. To develop marketing skills founder first do effective analysis of
market and audience and then design plans, to develop it they can also attend classes related to
marketing and digital marketing, take suggestions from marketing experts and many more.
Public speaking skills:- If an individual want to succeed in business they should have
public speaking skills, outgoing skills, positive attitude, interest in interaction with peoples and
so on. It is essential for person who want to run new venture must have skills of speak in public
and feel comfortable while speaking in front of group because they play major role in attracting
audience and customers. So it is necessary for founder of Coffee Cafe Town to acquire public
speaking quality so that they attract and convince their audience in effective and efficient
manner. They can develop it by conducting certain practices such as connect more to audience,
tell stories to persons, avoid sameness in interaction with peoples, make specific and simple
messages, understand topic and then speak and so on.
Capability:
Capability to identify strength and weaknesses:- As an owner of a business he/ she
must have capabilities to identify strength and weaknesses of its self and company so that
according to it they can design strategies and plan in effective and efficient manner. In other
word when owner of business able to identify its strength and weaknesses it will help them in
taking decision in effective way which leads to profitability and growth of
company(Barberoet.al., 2012). Owner of Coffee Cafe Town must have ability and capabilities of
identifying and evaluating their strength and weakness in appropriate manner, which help them
in conducting decision making process in effective and efficient manner which enhance cafe's
profitability and growth. To develop respective strength founder can take suggestions from
expertises and conduct researcher for identifying strength and weakness under proper and
professional guidance.
TASK 3
P5 Different promotional activities and channels that will support launch of the venture and
justify it
When a business owner plan to establish a new venture they must required to focus on
selection of promotional activities and channel because it play major role in attracting and
reaching to customers and audiences. There are endless options of promotional channels for

owner of business but it is duty of owner to select right one for their business, so it will help in
increasing numbers of audience and customers(BridgeandHegarty2013). There are numerous of
channels and activities of promotions, some major of them are selected by Coffee Cafe Town
which are describe below:-
Social Media Contests:- Now a day more then half of the population are on social
media such as face-book, Instagram, twitter, snap-chat and many more. Social media marketing
help a company in attracting and reaching more portion of audiences in effective manner. So
business owner of Coffee Cafe Town use social media for the promotional activities which help
them in reaching huge portions of audience and then attract them. It is cost effective and time
effective promotional channel for respective cafe. Through social media Coffee Cafe Town can
advertise anything and connect to their customers or audiences in effective manner.
Websites promotions:- Before purchasing a product customers visit to company website
to analysis the profile of company. A effective website contain all necessary information
regarding company's profile or information, products and services offer by them, company's
address, number and customer care number, blogs and articles related to company and its
products and many more. So the owner of Coffee Cafe Town develop and design effective
company website which contain all necessary information about cafe, products and services.
They must update and innovate their websites time to time such as update products which they
launch recently, so that it will contain all updated information and catch eyes of customers when
they visit the Coffee Cafe Town website and they desire to visit cafe.
Print material promotion:- When a person launch a new venture they can do its
promotion through print media such as brochures, posters, fliers, giveaways, newspaper etc. It is
little bit expensive medium and sometime it come up as waste of money(Mullins2017). So it is
responsibility of owner to print small numbers of posters and use attractive image and content.
Through print material company can reach to large number of populations and of every age
group and income group. So founder of Coffee Cafe Town use select and effective print material
which help them in increasing profit and growth and through it they will attract large sections of
populations.
Pricing Strategy:-
Coffee Cafe Town conduct evaluation and decide their pricing strategies for launching
business in Italy. After analysing they select Premium pricing strategy in which is most effective

for new venture with unique products and services. In this they set price of products and services
higher then their customers.
P6 Develop an appropriate promotional activities plan for both launch and pre launch of new
venture
When an individual plan to launch their new venture they must have to plan strategies
and process according to both situation that is pre launching time and launching time which help
them to conduct and run their business in smooth and effective manner(Readet.al., 2016). In this
plan an owner design strategies starting from market and product analysis to implement
respective strategy. So the administration of Coffee Cafe Town design appropriate launch and
pre launch plan which enhance their business profitability, which are describe below:-
Pre-launch process:-
 Market Analysis:- In this step an owner of a new venture do market analysis in which
they identify the market and audiences according to the product and services offer by
them. The market analysis is quantitative and qualitative research and evaluation of
market. The administration of Coffee Cafe Town conduct market analysis by which they
able to know their target audience and market and by it they plan strategies respectively
that help them to enhance profitability and number of customers of respective cafe.
 Product design and positioning:- After deciding the target audiences administration of
a company design and develop products and services which they are going to offer to
their customers or audiences. In this they also decide how they will do positioning of
products so that it catch the eyes of customers and convince them to spend money on it.
The owner of Coffee Cafe Town design plans and strategy for development of products
in which they decide products and services which is going to offer to audiences such as
variety of coffee, healthy breakfast, library, playing zone and many more. They also
decide place to display their products and services which convince peoples.
 Design promotional activities/ Brand development:- According to this step the
administration of a company design plan and make strategy regarding to promotional
activities and brand development. In this the owner of a company select appropriate
promotional activity or channel from different media which directly help them to
enhance their brand awareness and goodwill. The administration of Coffee Cafe Town
select appropriate promotional media which help them to enhance their business and

awarenesses. Through this respective company owner do brand promotion and create
brand awareness in market and between audience by using several promotional media
such as social media, print media etc. Implementation:- After conducting all above step an individual implement their
strategies and plans in effective manner. In this owner of Coffee Cafe Town implement
their strategies regarding market analysis, promotions, product deciding and so on which
they design regarding to achieve their goal and objectives in effective manner.
Launch process:-
 Product analysis:- After conducting all pre launching process business owner do product
analysis, in which they evaluate that their products and services are like by customers or
audience or not. They also identify that their products and services satisfy and fulfil the
need of their targeted audience. The administration of Coffee Cafe Town do product
analysis to analysis that their products and services fulfil and satisfy need of their target
audiences in effective manner.
 Evaluate responses:- In this step respond of target audiences are being analysis and
evaluate by venture so that they can plan and develop new strategy according to the
requirements(Wells2013). The owner of Coffee Cafe Town conduct feedback analysis in
which they evaluate the responds of audience and then design new innovative or update
strategy according to the responds.
 Conduct modification:- In this step after evaluating respond the administration of a
company plan or develop strategies according to all modification and innovations which
help a venture to full fill need and demand of their customers in effective
manner(ColemanandKariv2014). The owner of Coffee Cafe Town modify their strategies
and plans according to the feedback or respond of their customers or audiences.
 Execution:- In this step the administration of Coffee Cafe Town implement strategies
which they design or develop from responses and feedbacks of audiences. It help
respective cafe to satisfy their customers needs and demands in effective and efficient
manner.
P7 Produce an itemised monthly cash budget for pre-launch phase of the venture and first 12-18
months preceding launch of venture
Pre launch cash budget

Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 10000
Credit sales 3000 3000 3000 4500 1500 3500 4200
Total inflows 13000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 500 300 400 300 150 500 300
Total outflows 2500 2800 1900 2300 1350 2000 1100
Net cash flow 10500 200 1100 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9000 11400 11550 13000 16100
August
Septembe
r October
Novembe
r December Jan Feb
1000 2000 800 1200 1500 2600 3000
1000 2000 800 1200 1500 2600 3000
200 300 100 600 300 2000 2500
400 500 100 100 400 300 300
600 800 200 700 700 2300 2800
400 1200 600 500 800 300 200
16100 16500 17700 18300 18800 19600 20900
16500 17700 18300 18800 19600 19900 21100

Mar Apr May June July
3000 4500 1500 4500 7200
5000 4500 1500 3500 4200
1500 2000 1200 1500 800
200 300 150 500 300
1700 2300 1350 2000 1100
3300 2200 150 1500 3100
21100 22400 24600 24750 16250
24400 24600 24750 26250 19350
Post launch cash budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 11000
Credit sales 1200 2000 8500 3000 5000 6500 1200
Total inflows 12200 2000 8500 3000 5000 6500 1200
Cash outflows
Fixed : Equipment’s 2500 1000 1500 2000 2100 1600 1300
Variable : Direct material 3500 300 250 100 100 500 100
Total outflows 6000 1300 1750 2100 2200 2100 1400
Net cash flow 6200 700 6750 900 2800 4400 -200
Opening balance 0 6350 5850 11600 11950 15750 20250
closing balance 6350 5650 12600 12500 14750 20150 20050

August
Septem
ber
Octobe
r
Novemb
er
Decemb
er Jan Feb Mar
3200 2500 8200 1250 3210 1200 5000 2500
3200 2500 8200 1250 3210 1200 5000 2500
600 600 500 3000 500 6000 2500 1500
150 450 450 1500 500 3000 300 200
750 1050 950 4500 1000 9000 2800 1700
2450 1450 7250 -3250 2210 -7800 2200 800
19750 22100 22650 30100 28850 30860 32160 32360
22200 23550 29900 26850 31060 23060 34360 33160
Apr May June July
4500 3500 3500 4200
4500 1500 3500 4200
2000 2500 3000 400
250 360 250 700
2250 2860 3250 1100
2250 -1360 250 3100
33660 35860 36010 37510

35910 34500 36260 40610
From the above cash budget it can be say that the now establishing a new venture is a
appropriate decision. Because the cash outlay and inflow describe the situation of organizations
liquidity very well. Cash budget of both the situation such as pre launch and post launch is
compared then decision seems to be appropriate.
Legal Structure:-
When a person decide to launch a new venture the most important decision is what type
of legal structure he/ she is selecting. It is also known as ownership structure or form of business.
Legal structure can be of various type such as partnership, sole proprietorship, non-profit, co-
operatives and corporations. Explanation of some major of them are given below:
 Partnership: It is a form of agreement in which two or more then two parties come
together in legal manner to operate and manage business. In partnership partners share
profit and liabilities equally but sometime some partners have limited liabilities.
 Sole Proprietorship: It is also know as sole trade and individual entrepreneurship. It is a
business or enterprise which is run or operate by only one person and there is no legal
difference between owner of company and business entity.
Legal structure which is selected or chosen by Coffee Cafe Town is Sole Proprietorship.
In it owner of respective company is solely responsible for company's profit and liberalities.
CONCLUSION
Form the above mention it can be concluded that launching a new venture is not so easy
or simple, an owner has to conduct market research and analysis through which they get to know
about their target audiences and market. Their are various resources in the form of tangible and
intangible which is essential for conducting or launching a business in effective and efficient
manner. For launching a new venture owners required various skills and ability to run business in
efficient manner, there is also need to develop effective business plan to attract customers. As the
new venture also requires the various promotional and support activities. Because without the
proper support a venture can't be launched. And for the successive promotional activities a plan
must be prepared by the managers. Cash budget shows the liquidity position of the business
which is essential for attracting more stakeholders. Without the stakeholder a venture have no
existence.

REFERENCES
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
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Practice. 36(5). pp.941-965.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Chrisman, J.J.,et.al., 2012. Counseling assistance, entrepreneurship education, and new venture
performance. Journal of Entrepreneurship and Public Policy. 1(1). pp.63-83.
Burns, P., 2017. New venture creation: A framework for entrepreneurial start-ups. Palgrave.
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Machiavellianism as predictors of entrepreneurial entry (summary). Frontiers of
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