Launching a New Venture: Target Markets, Resources, Proposal, Skills, Promotions, Budget, Legal Form

This report covers new business target market and competitive analysis, tangible and intangible resources required for launching new products, skills and capabilities required to launch new products, different promotional activities used by organisation, promotional activity plan, and organisational legal form.

Launching a new
venture

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.....................................................................................................................4
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture...........................................................................................................................6
P3 Produce a credible proposal to launch a new venture............................................................7
TASK 2............................................................................................................................................9
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed..................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Explain different promotional activities and channels that will support the launch and
justify their choice.....................................................................................................................10
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.............12
TASK 4..........................................................................................................................................13
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months following the launch...................................................................................13
P8 Suggest an appropriate legal form for the venture stating why it has been chosen..............13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business is defined as the organisation or legal entity which is engaged in various activities
such as commercial, industrial as well as professional activities in order to attaining determined
goals and objectives in specific period of time. Business put planned and coordinated efforts to
debut new product and service in market in order to gain competitive business environment.
Business idea is considered as the new concept of organisation that is totally unique to market. In
this report, ‘The Brand Choice’ organisation is taken into consideration that produces products
from sustainable material. Respective organisation provides its products at lower price than
original price because it produces products in bulk. This report covers new business target
market and competitive analysis and tangible as well as intangible products that are required for
launching new products. Apart from that, skills and capabilities required to launch new products
and different promotional activities that are used by organisation are explained. Furthermore,
promotional activity plan and organisational legal form in discussed in this report.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
New business idea: The Brand Choice is the organisation that provides products that are
produced from sustainable products through online delivery well as organisation provides choice
to its customers that they can purchase or rent their desirable products from organisation.
Respective organisation provides variety of clothing products for both man and woman
according to all seasons like summer, winter and other and accessories items. Organisational idea
is unique in market because all these products are produced from sustainable material that bio-
degradable that protect environment from harmful impact (Adomako, and et. al., 2018). This
business idea is quite attractive because customers can purchase clothing and accessories items
on rent or they can buy them totally which is cost effective for them. It provides competitive
advantages to The Brand Choice over other competitors.
Target market: It is very challenging for new venture to compete on competitive market so it
become important for organisation to use STP framework in order to identify market place in
which it wants to provide its products and services. It is defined as the strategic approach of

modern marketing because it concentrates on commercial effectiveness as well as selecting
appropriate segment for business to attain competitive advantages.
 Segmentation: In this stage, The Brand Choice organisation divide whole market into
various small segments according to their similarity and preferences. Respected
organisation segment market on the bases of demographic and behavioural segment. It is
important for organisation to analyse characteristics of each segment than target most
effective market segment to lead business in right direction.
 Target: The Brand Choice target both man and woman to provide its clothing and
accessories items. Organisation targets all age group customers and ensures that they
receive products and services according to their requirement.
 Positioning: The Brand Choice maintains unique and differentiated positioning in market
through provide quality products to customers through online medium at affordable
prices (Berry, and Shabana, 2020). As organisational clothing products are produced
from sustainable material that is good initiate to protect environment that makes
organisation effective image in targeted market.
Competitive analysis:
Porter’s five forces: It is determined as approach that is used by organisation to determine
competitiveness of market. It includes five forces that need to analysed by The Brand Choice to
assess feasibility of market. These forces are explained below:
 Bargaining power of buyers: It is determined as the buyer’s ability to decrease prices of
products. For new venture buyers has low bargaining power because there are large
number of customers and higher switching cost.
 Bargaining power of suppliers: It is considered as the ability or power of suppliers to
increase cost of products. The Brand Choice faces higher supplier power because
organisation has limited suppliers to whom organisation gets raw material to produce
products.
 Threat of new entrants: Now these days, customers are more conscious regarding
environment safety and sustainability. Idea of The Brand Choice venture is quite
profitable so it faces higher threats from new entrants.

 Threats of substitute products: The Brand Choice provides sustainable clothing and
accessory item that are totally new concept in market so organisation has low threat from
substitute products.
 Competitive rivalry among industry: In clothing industry high competition is exist that
impact organisational profitability and performance but idea of The Brand Choice is quite
unique so it faces moderate competition in market.
Thus competitive analysis helps business to develop effective policies, strategies and
planning that lead business in the direction of growth and development.
P2 Determine specific tangible and intangible resources that would be required for the launch of
a new venture
There is various type of resources are required by organisation to launch its new venture in
market. It is important for The Brand Choice to arrange all resources so business can lunch its
products and service in effective manner (Burns, 2018). Some tangible and intangible resources
that are required by organisation are explained below:
Tangible resources: Tangible resources are defined as the main types of assets that is used by
organisation to produce their products and services. The Brand Choice organisation has various
tangible resources that help business to perform its operations efficiently and launch new venture
in specific market place. Some tangible resources are explained below:
 Human capital: Labour or human capital is defined as the tangible resources that plays
important role in carry business operations such as operating machines, generating
outputs and developing policies for launching new venture ides in market place.
Employees of The Brand Choice make efforts and conduct marketing campaigns to
launch new products and business ides to attract larger number of customers.
 Capital: Capital is defined as the source of finance that are put in business to attain
determined goals and objectives. In launching business in market various advertisement
and promotional campaigns are launched that require finance (Del Bosco, Chierici, and
Mazzucchelli, 2019). The Brand Choice take finance from various sources such as
venture capitalist and other.
 Equipment and IT facilities: These are tangible resources that are required to launch
new business ides in specific market place. As The Brand Choice is online business that

requires various equipment and information technologies to run business operations in
appropriate manner. Respected organisation work through its official website.
Intangible resources: Intangible resources are defined as the non-physical assents that contains
monetary value and differentiate organisation from others.
 Skills and capabilities: Skills and capabilities are defined as the intangible resources that
is possessed by employees of The Brand Choice and enable them to perform specific task
or operations of organisation with efficiency and effectiveness. Skilled and capable
employees take effective decisions and help in gaining competitive advantages.
 Patent: Patent is intangible resource that helps organisation to protect its unique business
idea and design or process of products and services (Du, and Kim, 2021). It is defined as
most valuable assets of business. As The Brand Choice business ides is unique so it can
protect it through generating patent.
P3 Produce a credible proposal to launch a new venture
Objective: The Brand Choice organisation is started with unique idea of selling sustainable
clothing and other accessory items in market. Organisation is established with certain objective
that are fulfilled in certain period of time. Some objectives of The Brand Choice are explained
below:
 To attract larger number of customers through provide unique products.
 To maintain effective relationship with customers.
 To enhances organisational sales and profits.
Future scope: As The Brand Choice has unique and sustainable idea of producing stylish
clothing and accessories with the help of sustainable material that are bio-degradable and helps
in protecting environment from harmful impacts. In current business environment, people are
more conscious regarding environment safety so they are preferring sustainable products and
services. It helps business to enhance its sales and profitability ratio as well as attract larger
number of customers towards organisational and provide sustainable competitive advantages
(Fisher, 2020). So, this business idea is quite viable and having growth and development scopes
in future that helps it to attain higher market share and customer base.
Micro environment analysis:
It is important for The Brand Choice to analyse its micro environment which is closely related to
business but impact its operations and performance level (Géraudel, Gast, and Gundolf, 2017).

Organisation need to conduct SWOT analysis to identify its micro factors and develop effective
strategies for them.
 Strengths: The Brand Choice has skilled, dedicated and qualified employees who
perform business operations with effectiveness. Organisation provides products at lower
price than original price that attracts larger number of customers.
 Weaknesses: Lack of finance and resources is the weakness of The Brand Choice that
impact organisational overall performance and efficiency.
 Opportunities: The Brand Choice provides sustainable products to customers which is
quite unique idea in market that will help business to gain market opportunities.
 Threats: Competition is considered as biggest threat for The Brand Choice that impact
organisational overall performance and profitability.
Macro environment analysis: The Brand Choice need to analyse macro environment factors
that are outside of business and impact its operations in direct and indirect way. Respective
organisation uses Pestle analysis for analyse external factors (Jiang, and Tornikoski, 2019).
These factors are explained below:
 Political factor: Taxation policy, trade restrictions, foreign trade policies and other
factors impact on The Brand Choice performance. UK is politically stable economy that
help business to attain the objective of sustainability.
 Economic factor: UK customers has higher disposable income and fashion industry is
continuously growing that help business to run operations smoothly. Higher interest rates
and monetary policy impact on business negatively.
 Social factor: As organisational provides sustainable products so, customers has positive
attitude towards organisation that enhances its market share and customer base.
 Technological factors: The Brand Choice uses higher and latest technological aspects
such as research and development, digital advertising that helps business to reach larger
market share.
 Legal factors: UK has strict legislations and reforms regarding taxation, advertising
standards product safety and security that impact organisational overall performance.
 Environmental factors: The Brand Choice deals in sustainable and environment-
friendly products that protect environment from harmful impact and maintains
organisational differentiate positioning in market place.

Contingency plan: Contingency plan is defined as the course of action that are taken by
organisation to react efficiently to future incident, event and salutations. The Brand Choice
develop alternative plans such as range of products according to customers demand that help to
deal with future circumstance.
TASK 2
P4 Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed
There are various skills and capabilities that are essential for launching new venture in market
place that help to run business operations in efficient manner in order to attain specific goals and
objectives in best possible manner. It is important for entrepreneur to develop these skills to
handle business situations in appropriate manner and gain competitive advantages in specific
market place (Li, and Dutta, 2018). Some required skills for launch new venture are explained
below:
 Communication skills: It is important to have effective communication skill in the
process of launching new venture in market. It helps to convey business ideas in market
and influence stakeholders towards organisation. Entrepreneur connect with large number
of customers, investors and other stakeholders in order to develop business planning and
strategies for launching business in market. Communication skill can be developed
through regular communication with peers and taking online classes.
 Create an opportunity: It is essential for The Brand Choice organisation entrepreneur to
have to ability to develop market opportunity through conducting market research that
help them to take effective actions. It facilitates to gain competitive advantages over other
competitors and enable to gain market opportunity to lead business towards success. This
skill can be improved through handling variety of situations.
 Passion and energy: It is required to have passion and energy in entrepreneur to launch
business in market place. It is quite impossible to run business operation in effective
manner without having sufficient energy (McGee, and Peterson, 2019). There are various
promotional advertisements are conducted to launch business that require high passion
and energy to attract larger number of customers.

 Planning and social skills: Planning and social skill are the most important skill to
launch new venture idea in targeted market place. It is important to develop proper and
systematic planning to communicate business idea to customers and influence them
towards purchase organisational products and services. Planning and social skills can be
developed through taking participation in seminars handle different business situations.
 Creative thinking: Creative thinking is most important skill that is required in launching
new business venture in creative manner in order to attract larger number of customers
towards offering. The Brand Choice organisation’s entrepreneur bring creating ideas and
concepts to launch business idea in market for the making differentiate image and gain
competitive advantages (Tracey, Dalpiaz, and Phillips2018). Creative thinking skill can
be acquired through taking participation in various activities and seminars.
All these skills are required in an entrepreneur to launch new business venture in market and
maintain unique or differentiated positioning in the mind of customers. It is important for the
entrepreneur to develop these skills and capabilities in order to run business efficiently in
competitive market place.
TASK 3
P5 Explain different promotional activities and channels that will support the launch and justify
their choice
Promotional activities are defined as the technologies that is used by organisation for the purpose
of enhancing awareness of brand and its products and services in specific market place.
Promotional activities help to The Brand Choice to attract larger number of customers, enhance
organisational revenue as well as retain potential customers for longer period of time.
Organisational promotional strategies create interest of customers and enhance their desire as
well as convince to make actions for purchasing organisational products and services (van
Werven, Bouwmeester, and Cornelissen, 2019). There are various promotional activities and
channels are explained below:
 Social media marketing: Social media advertising is considered as the most popular and
effective promotional activity for business. It facilitates organisation to promote their
products and services directly to potential customers as well as maintain effective
relationship with them through developing engagement. Now these days, customers are

active of various social media platforms and posting series of advertisement on their
social media profile for the purpose of attracting customers interest. There are various
hashtags and virtual social media events are conducted by organisation that helps in
launching new business venture in market. This promotional activity helps business to
attract larger number of customers and attain market share.
 Paid advertising: Paid advertising is used by organisations to promote organisational
products and services. Businesses pay for advertising or launching their products on
popular websites or search engine. Display aids, pay-per-click aids and pay-per-
impression are used by business spread awareness in market regarding organisational
products and services (Wannamakok, and Chang, 2020). Apart from that, television,
print, radio and other digital methods are implemented that ensures wider customer reach.
 Public relation: Public relation is defined as the process that is related to managing and
crating brand’s public image in market. It helps business to influence attitude as well as
opinions of existing and potential customers. Public relation strategies include various
aspects such as creating press releases, enhance engagement level of customers,
communicating organisational value as well as positive coverage in media. This
promotional channel facilitates business to develop awareness and maintains positive
image of organisation and its products in the minds of customers.
 Email and SMS campaigns: In current business environment, various organisations use
email or SMS campaigns to promote or launch business products to targeted audience.
Through implementing this method, organisation gain higher return on investment and
includes calls for actions in order to encourage purchases and engagements. It is most
effective way of reminding past customers and retain existing one. There are various
pages such as social media posts and landing pages are used for gathering email
addresses and phone number of customers. Business uses automated campaigns for
sending messages to people in mailing list.
 Content marketing: Content marketing is defined as the producing information and
interesting material that help customers to resolve their problems. Organisation posted
content on their official website and update it on regular bases that enables customers to
gain reliable information regarding organisational products and services. Business uses

this promotional channel to launch its new products in market and drag customer’s
attention and influence them to purchase organisational products and services.
The Brand Choice is the organisation that provides sustainable clothing and other accessories
items through online platform. Organisation uses social media marketing and email marketing
promotional activities with the objective of launching new products in specific market place.
These are effective promotional channels that help The Brand Choice to increase brans activity,
enhance conversion rates, brand loyalty and generates online traffic on organisational website. It
enhances organisational market reach and improve business revenue through maintaining
effective connection with customers.
P6 Develop an appropriate promotional activity plan for both launch and pre-launch
Promotional activity plan is defined as the process of optimising marketing tools, strategies as
well as resources for promoting organisational products and services in specific market place.
The Brand Choice implement systematic steps to develop effective promotional activity plan
(Watson, Stuetzer, and Zolin, 2017). these steps are explained below:
Selecting name and registering domain: The Brand Choice first of select attractive name of its
promotional plan for its launch and pre-launch that register it. Unique name and identity
differentiate organisation from other competitors and customers identify it easily.
Visual identity and website creation: In this step, organisation creates visual identify such as
logo, picture as well as create website with the help of e-commerce capabilities. The Brand
Choice provides various facilities to customers through its website such as secure online
payment and virtual shopping cart.
Adopt cost effective promotional techniques: In this stage, The Brand Choice adopts cost-
effective and suitable promotional technique and fund appropriate promotional channel like
social media and online promotion. Organisation uses video clips, podcast, image caption, blogs
and other ways to promote its sustainable products in market.
Trademark registration: The Brand Choice trademark its promotional activities and plans for
the purpose of protecting it from other competitors that provide competitive advantages to
organisation over others.
Determine budget: In this stage, The Brand Choice determine its budget that is used in different
promotional activities for attaining specific goals and objectives on time.

Execute plan: In this stage, promotional activity plan for organisational launch and pre-launch is
executed for spreading awareness in market and attaining higher market share. Organisation
reviews its outcomes on regular bases that measure its effectiveness and viability.
TASK 4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months following the launch
Cash budget: A cash budget is a document produced to help a business manage their cash flow.
A cash budget is prepared in advance and shows all the planned monthly cash incomings
(receipts) and any planned cash outgoings (payments).
Pre-launch phase cash budget:
Source of finance: There are various sources of finance are used by organisation such as loan
from bank, family and friends that help The Brand Choice to run its operations with greater
efficiency and effectiveness. There are specific rate of interest is paid on bank loan and it is
repaid after specific period of time. There are various expenses are occurred before launching
business that are explained below:
Items of expenses Expenses
Expenses of developing business plan £110
Research expenses £125
Borrowing cost £105
Expenses on technology £250
Expenses of advertisement and promotion £175
Expenses on employees £140
Total expenses £895
Cash budget for 12-18 months

P8 Suggest an appropriate legal form for the venture stating why it has been chosen
There are various types or forms of business that have different features, forms, advantages and
disadvantages that helps business to run its operations in best possible way and attain
organisational goals and objectives in specific period of time. Some legal forms of business are
explained below:
Sole-tradership: This business form is defined as business entity that is owned and run by one
individual and it do not have any legal distinction between business and owner. The process of
formulating sole-tradership business is simple because it requires less legal formalities.
Partnership: Partnership is defined as the legal association between two or more people with
objective of running business to attain common goals and objectives. All partners distribute
profits on the bases of pre-determined ratio (Zacharakis, and Bygrave, 2019). It is easy to create
and maintain partnership and in this partner are personally liable for debts and liabilities.

Limited company: It is defined as the hybrid of corporation, sole-tradership and partnership.
Members of business are not responsible for paying organisational debts and claims from their
personal assets. It can contain unlimited number of members and its incorporated Act 2006, a
company is required to have two constitutional documents such as memorandum and article of
association.
It suggested The Brand Choice to adopt partnership as the legal form of business because it
requires fewer legal obligations and it is easy to start partnership firm. It can be incorporated
through verbally or writing there is no requirement of registering with Companies House. In this
form of business, burden is distributed among all partners and all partners can take better and
effective decisions. All partners bring their knowledge, skills, experience and capital that help to
run business operations in best possible manner.
CONCLUSION
As per above report, it can be concluded that it is important for business to analyse market
trends, customers needs and requirements before bringing new idea that attract customers and
differentiate organisation from other competitors. In current competitive environment,
organisations launching new products and services for attracting larger number of customers.
Process of launching new product in market is defined as the product launch. There are various
promotional activities are adopted by business in order to spread awareness of organisational
new product in market.

REFERENCES
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