Launching a New Venture Assignment - "Hardcorp Gym"
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Added on 2020-11-12
Launching a New Venture Assignment - "Hardcorp Gym"
Added on 2020-11-12
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Launching a New Venture
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Identification of specific target market and competitive analysis....................................1P2: Specific tangible and intangible resources that required for a new venture....................4TASK 2............................................................................................................................................5P3 Formulation of credible proposal to launch a new venture...............................................5P4: Skills and capabilities required to launch a new venture.................................................6TASK 3............................................................................................................................................7P5: Determination of promotional activities and channels for launching a new venture.......7P6: Formulation of appropriate promotional activities plan for both launch and pre-launch8TASK 4..........................................................................................................................................10P7: Monthly cash budget for the pre and after launch phase...............................................10CONCLUSION....................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONEvery entrepreneur tried to be a successful at global level which builds an idea in their mind to start a new venture in particular nationwhere their business achieve huge sustainability within shorter period of time and generate huge profitability. For this, it is essential to invest inanalysing the market needs and demands where an entrepreneur decide to launch their business. Due to having lots of competitors andfluctuations in needs and preferences of people, it is necessary to first conduct market research so that an effective decisions and plans can bemade in advance to deal with such influencing factors. The present assignment is based on "Hardcorp Gym" which is new start-up going tolaunch in Germany by an entrepreneur after getting huge successful in UK market. This newly venture is Gym providing various fitnessactivities such as aerobics exercises such as swimming, Flexibility exercises such as yoga and muscle strengthening training such as liftingweights etc. The project discusses the tangible and intangible resources, specific target market along with competitive analysis, credible proposaland skills as well as capabilities required to launch a new venture more successfully.TASK 1P1: Identification of specific target market and competitive analysisVenture idea:"Hardcorp Gym" is newly launched venture which is going to establish in Germany with a hope of achieving huge market share andprofitability. The business is engaged in providing various fitness activities such as such as fileaerobics exercises such as dancing, Flexibilityexercises such as yoga and muscle strengthening training such as lifting weights etc. As due to having huge demands of gym in Germany afterUK, an entrepreneur decide to launch its newly gym in such nation with an objective of maintaining healthy lifestyle of every individuals(Fitness industry in Europe, 2018). For this, Berlin city has been targeted to launch its new venture where the people are more looking towardsgetting membership of Gym. Berlin is the highest populated city in Germany which increases the possibilities of achieving huge success andprofits within shorter period of time. Through analysing Germany market, it has been identified that maximum number of people especiallyyouths are more preferred to join gym in order to maintain their fitness level and avoid any harmful diseases (Bijker and et. al., 2012). This will m fileotivate an entrepreneur to select Germany as most preferable nation to launch its new venture. Entering into new market requires support from various members in order to market their products and services so that hugesustainability can easily be achieved within limited time period. Therefore, an entrepreneur decide to take support from their colleagues who arehaving good knowledge about using marketing techniques and launch its new venture in partnership form. It makes easy for an entrepreneur todivide its roles and responsibilities with their partners due to which the desired activities can be implemented in more effective and efficientmanner. To establish "Hardcorp Gym", an entrepreneur purchases 1200 square feet in Berlin with a lease of 9 years with an expectation ofcontinuing its new business without facing any difficulties. The estimated cost that to be incurred in setting up a new venture is around 2200,000to 5,00,000 dollar. Here is the area where an entrepreneur required to incurred cost.Investment Tables:Estimated Initial InvestmentName of FeeLowHighInitial Franchise Fee£32,000£40,000Travel and Living Expenses During Training£4,000£7,0003 Months' Rent£26,250£367,500Security Deposit for Lease£9,000£225,000Leasehold Improvements and Construction Costs (assuming no pool)£1,750,000£2,800,000Selectorized Equipment and Free Weights£125,000£500,000Cardiovascular Equipment£150,000£500,000Signage£35,000£85,000Initial Inventory, Other Equipment and Supplies£12,000£56,000Computer System and Gym Management System£20,000£35,000Advertising and Marketing£25,000£170,000Miscellaneous Opening Costs£10,000£65,000Additional Funds - 3 Months£20,000£150,000TOTAL ESTIMATED INITIAL INVESTMENT*£2,218,250£5,000,500Objectives: Launching a new venture has some objective to achieve which is decided by the partners with mutual consent. It is effective ifprepared in SMART way which are given as under:Specific: Achieving huge market share of Berlin to generate huge profits.Measurable: Approx. 70% market share has been targeted to achieve.Achievable: Through providing various kinds of fitness exercises for all age groups.1
Relevancy: It strong the market presence in German market.Time bound: Within 1 year.Target market: The decision of selecting particular nation for starting a new venture is very much based on the number of people thebusiness received for its products and services. It can be easily identified through analysing market needs which are fluctuated on frequent basis.Therefore, before launching "Hardcorp Gym" an entrepreneur should segment population of Berlin on the basis of demographic, geographic andpsycho-graphic (Duggal and Sassoon, 2015). Geographic: The newly venture always targeting those geographical locations where the demand of their products and services are moredue to achieving its desired goals and objectives. In Germany, As "Hardcorp Gym" is fitness centre which are more in demanded by people ofBerlin due to having huge amount of population as compared to other cities of Germany, an entrepreneur targeting Geographic segmentation.Demographic: The population of Berlin is segmented on the basis of gender, age, religion etc. Fitness programs are mainly attractsyouths due to having their huge preferences in order to maintain their lifestyle more healthy. Therefore, an entrepreneur targets youth with theirnewly business "Hardcorp Gym".Psychographic: Nowadays the people includes fitness activities in their daily routine so as to remain fit. Increasing awareness regardingmaintaining their health by engaging in various gymming activities, it brings favourable result to "Hardcorp Gym". Therefore, both middle andhigher income level group are the targeted people to whom "Hardcorp Gym" rely on.Competitive analysis: The main difficulty to achieve huge sustainability in new market within shorter period of time is level of competition. "Hardcorp Gym" isfitness centre which provides various gymming services due to which it may difficult for them to survive in Berlin market where lots of rivalsare already existed with good market image and standard amenities. McFit, Superfit, Rent-a trainer Berlin etc. are such businesses which areengaged in providing similar services and attained strong brand image in market. Therefore, it is important to understand their competitivestrategies and marketing plans and accordingly make decisions in order to achieve competitive advantage in Berlin market (Fernhaber and Li,2013).P2: Specific tangible and intangible resources that required for a new ventureVarious resources are needed by any organisation for using them in an effective manner while establishing a new venture. Theseresources are segmented in tangible and intangible resources. "Hardcorp Gym" is a new venture which also needs such resources for performingbetter in the market.Tangible resources: These resources can be sensed and touched as these are present physically and contributes in the proper functioningof firm in the market. The most essential resource is funds which are important for starting the new business of "Hardcorp Gym". Without properfunds, "Hardcorp Gym" cannot buy the required machinery and inventory required for the production and other important processes. The humanresources are must for any organisation for contributing their efforts for the betterment of the organisation. "Hardcorp Gym" needs to hire skilledand knowledgeable candidates for their various processes for getting effective and efficient results. Human resources are another importantresources which are necessary for utilising the physical resources such as funds, machines, etc. These resources are explained as under:Human Resources: These resources are needed in the company as they will help in keeping the proper equipments at proper place and forkeeping the working place neat and clean. Skilled and capable human resources will be able to perform housekeeping activates in a propermanner, due to which individuals which will be working out at gym will feel more satisfied because of hygiene and cleanliness. Funds: Another resource is the funds. To manage a business in an profitable manner, sufficient amount of fund is required. With the help ofcapital, new equipments can be purchased for gym that will helps in gaining wide attention of customers towards the facilities offered by gym.Beside this, other required assets will also be purchased with the help of sufficient amount of funds. Machines: These are another important resource for the business as these are the main source of income this business.Intangible resources: These are defined as the assets which are not physically present in the company but are necessary for the properfunctioning of the firm. It includes producing quality products for building better relationship with the end users. It is very difficult to calculatedintangible resources on the basis of cash. Hardcorp Gym need work on their goodwill which is one of the most important factor in intangibleresources. They need to register their companies name at first in Companies house. Intangible resources will help them to take competitiveadvantage in market.Through these, "Hardcorp Gym" can achieve competitive edge over the competitors. The explanation of intangible assetssuch as goodwill technology are provided as under:Goodwill: It is also an important resource for the company as this will create a good image of the business in the market. Good will in marketwill benefits the organisation in enhancing their brand reputation. Due to this, customer base of gym will expand in a considerable manner thatwill results in generation of high revenues. This will help in the long term sustainability and growth of the business.Technology: Another important intangible resource for the business is the technology such as the use of software for maintaining proper recordsof customers, websites for providing information about the facilities of the business. If investment in technology will not carried out, then2
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