Launching a New Venture: Cafe Kulture

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................1
P2. Specific tangible and intangible resources for new venture............................................3
TASK 2............................................................................................................................................3
P3. A credible proposal to launch a new venture...................................................................3
P4 Assessment of skills and capabilities for launching a new venture..................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities used for launching new Cafe.........................................6
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.......7
TASK 4............................................................................................................................................8
P7 Monthly cash budget for the pre-launch phase.................................................................8
P8 Applicable legal form for the venture.............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The launch of a new venture is considered as an economic activity carried out by an
entrepreneur with a view to meet a market demand or to solve an economic or social issue faced
by the society. An entrepreneur is an individual who is willing to undertake risks and assume
liability for a venture that is being started by them (Sekliuckiene and Kisielius, 2015). The
present report takes into account a new cafe venture that is being opened within the confines of
London, UK under the name of Cafe Kulture. The cafe will offer wide range of coffees, shakes,
bakery items, drinks and snacks in order to gain the attention of large number of individuals. The
below mentioned report explores the target market and competition for the new venture. Besides
this, it includes information about the requirement in terms of tangible as well as intangible
resources. Along with this, the report consists of information about the skills and capabilities of
entrepreneur starting the venture. Lastly, the promotional activities as well as the legal form for
the venture, is covered.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
Cafe Kulture is acknowledged to be a cafe which will be opened within London, the
capital city of United Kingdom in order to tap the behaviour of individuals who possess
likelihood towards the consumption of coffee on a regular basis. The venture would be offering
varieties of coffees, snacks, bakery items, flavoured shakes and many more food and beverage
items. Besides this, the cafe would also provide its customers with the facility of home delivery
in case of distance within 3 kilometres from the outlet. The cafe would also be providing catering
facilities along with digital payment method service. The main purpose of Cafe Kulture is the
provision of high quality offerings to customer base at reasonable prices. The facility of
customisation in terms of flavours as well as tastes would also be provided by the venture to the
people coming to the premises of the entity.
Target market: Cafe Kulture would offer its offerings in accordance with the needs as well as
requirements of people at market place. The entrepreneur of this venture has decided to target the
young individuals of London as they generally like to visit cafes with their friends, colleagues or
acquaintances for fun, entertainment and leisure purposes.
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Competitive analysis: It is important for a venture to take into account the key market players
existing in the market place with which it needs to compete for capturing large market share
across the globe in a short span of time (Kurowska-Pysz, 2016). Competitive analysis provides
entity with the information regarding intensity of rivalry within a concerned corporate sector and
the successful strategies of the leading companies functioning within its confines. In this relation,
Porter Five Force analysis has been carried out in the light of Cafe Kulture beneath:-
Porter’s Five Forces Analysis
This is a strategic management model which is applied by an organisation with an aim of
gaining knowledge of the competitive rivalry prevailing within the confines of a market place.
This model when applied in context of Cafe Kulture would reveal the real competitors for this
new venture in UK.
Competitive rivalry: The extent of this force in context of cafe industry is acknowledged
to be high as there are several top notch cafes within United Kingdom that offer wide array of
offerings. Thus, the entrepreneur of Cafe Kulture is required to come up with new products and
tastes at rapid intervals of time so as to capture a high market share. This will provide assistance
to the enterprise in tapping the attention of large number of customers of UK and retaining them
for a long period of time in future context by providing them with high quality offerings.
Bargaining power of buyers: The magnitude of this force within the confines of cafe
industry is acknowledged to be high. This is so because there are a large number of cafes
operating within the confines of London, UK that offer coffee of different tastes as per the needs
and demands of people (Khazaeli and et. al., 2018). Thus, it is important for the entrepreneur of
Cafe Kulture to devise effective promotional strategies through which loyalty can be instilled
within the customers towards the entity and the bargaining power of buyers can be consequently
diluted.
Bargaining power of supplier: The extent of this force in relation to the cafe sector within
the confines of UK is ascertained to be low. This is because the entrepreneur of Cafe Kulture has
strong networking with the vendors within this industry. Thus, the concerned venture has the
option of switching to another vendor or supplier in case one is not able to meet the requirements
of Cafe Kulture in terms of quality as well as pricing.
Threats of substitutes: The magnitude of this element of competitive analysis is moderate
to high. There is decent number of market players within the confines of cafe industry of United
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