Launching a New Venture

Launching a New Venture
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.....................................................................................................................3
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture...........................................................................................................................5
P3 Produce a credible proposal to launch a new venture............................................................5
TASK 2............................................................................................................................................7
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed..................................................................................................................7
TASK 3............................................................................................................................................8
P5 Explain different activities and promotional channels that will support the launch and
justify their choice.......................................................................................................................8
P6 Develop an appropriate promotional activity plan for both launch and pre-launch...............9
TASK 4..........................................................................................................................................10
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch.........................................................................................10
P8 Suggest an appropriate legal form for the venture stating why it has been chosen..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business ventures can be defined as an establishment made by an entrepreneur to perform
business operations of manufacturing, producing, procuring and offering a product or a service
with an objective of earning profit (Eisenmann, 2013). In this project report, an attempt has been
made to determine the business plan for Tasty Foods, a business venture for offering a wide
range of food products from different countries worldwide in the markets of United Kingdom.
The report deals with evaluation of target market and competitive analysis for the venture and
identifies the various resources which are required for launching the venture. The report also
aims to prepare a business proposal for investors and also identifies the skills required for
launching a business venture. In this project report, an attempt has been made to determine a
marketing and promotional strategy and plan for Tasty Foods and prepare a cash budget for pre-
launch and post-launch period of the business adventure. At last, the report aims to evaluate the
appropriate legal form or business structure with justification for the proposed business venture.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
Tasty Food is a new venture which is proposed to be established in the markets of UK with
an objective of providing a wide range of food items and products from different parts of the
country to the people in UK. There has been a recent trend which has encouraged people to
consume famous and popular food products from different parts of the world. As per the
interpretation of the research and survey conducted by the proposers of this business venture for
determining customer demands and needs when it comes to food items, there exists a gap
between the expectations and changing desires of the consumer and what the market is currently
offering. The mission of the venture is “to provide a rich and diverse experience to the
consumers by bringing the best quality food products from different parts of the world”.
Target Market:
Target Market refers to the potential customers or consumers of a business product or
service. It is important for every business venture to determine and identify the target market for
its products or services which helps the business to devise the correct tools and strategy for
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marketing and attracting customers (Lynn, 2013). The target market for Tasty Food can be
understood with the help of two main dimensions of customer segmentation:
Geography: Geographic segmentation is based on the place and location of the established
business venture. The venture is proposed to be established in London, United Kingdom which is
one of the most popular tourist destination in the world. It makes all the tourists from different
countries the target or potential customers of the venture and also presents a huge opportunity for
growth and high revenue.
Demographics: It refers to features or characteristics of the population such as age, income,
gender, cultural background etcetera. People from all income groups are the potential customers
of the venture and usually teenagers and youth who are more likely to spend a lot of money and
visit such restaurants that offers food products from different nations and countries forms the
target market of the business venture.
Competitive Analysis:
London is one of the most developed market for food products and restaurants in the world
and there exists an immense competition in the industry which needs to be analysed before
establishing the venture (Fleisher and Bensoussan, 2015). There is a high number of business
firms and companies operating in the industry. Bargaining power of customers is also high due to
a number of alternatives and low cost of substitution. It puts the business in no position to obtain
charge high price from customers to increase its profitability. Companies such as The Ledbury
and Liman Restaurant have an established base of customers and enjoy a high revenue which can
be a threat for the proposed business venture. For minimisation of risk and ensuring the survival
and growth of the business, it is important for the business to have a contingency plan. To
counter the competition from the existing players in the industry, the venture will have to focus
on its strengths and minimise the weakness which could potentially hinder the growth of the
business. Tasty Foods has the objective of providing a wide range of food items from different
countries and nations all over the world which is the Unique Selling Proposition (USP) for the
business and is one of the biggest strength for the company. Mitigation of weakness such as low
budget during the initial period and intense competition can be effectively countered and dealt
with focusing on the strength and uniqueness of the venture and trying to create a market for the
same. Use of sales promotional tools and offers is also another strategy which will be adopted by
the business for minimisation of risk of competition in the industry.
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