Market Analysis and Strategies for Launching a New Venture: A Case Study of Costa Coffee

Unit 28
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business idea...............................................................................................................................3
Promotional activities and channels supporting the new launch and justify the choice..............6
Promotional activity plan for both launch and pre – launch........................................................7
Legal form for the venture stating why it has been chosen.........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
It is important to make plans and strategies so that business can run smoothly. Managers
should conduct market analysis to accomplish goals and objectives of organisation and more
profit can be generated. Costa coffee is providing different type of coffee products to customers
and satisfying their needs (van Werven, Bouwmeester and Cornelissen, 2019). The report
examines, competitive analysis, tangible and intangible resources required for business is
discussed. A proposal to launch new venture which includes, idea will work or not, investment
will be made, smart targets. Further, skills and capabilities required to launch a new venture and
how they are acquired or developed. Different promotional activities and channels that support
launch. Appropriate promotional activity plan for both launch and pre- launch and legal form for
the venture with reason for choosing it.
MAIN BODY
Business idea
Business idea is to make snap chilled coffee to attract people and more profit can be
earned. Managers of costa coffee conduct market analysis to identify choice of people and after
that decide to make this product. During covid-19, people were not coming and it was difficult to
run business. Covid- 19 has negative impact on performance of company.
Porter’s five forces
Porter’s five forces is done to identify market situation and make plans accordingly so that goals
and objectives of company can be accomplished. There are five elements which should be
consider such as, competitive rivalry, buying power of buyer and supplier, threat of new entrant
and close substitute goods. It is essential to conduct market analysis so that they can make better
plans and accomplish targets (Khurram, Hassan and Khurram, 2020).
Competitive rivalry- it means to identify market situation and analyse strategies used by
competitors so that goals and objectives can be accomplished. It is essential to determine plans
made by competitors and make better plans to gain competitive advantage in market. Managers
of costa coffee should identify plans of competitors so that targets can be accomplished.
Buying power of buyer- it refers to identify buying power of buyer like, how much people can
spend to buy a product. It is the responsibility of manager to conduct market analysis and
determine choice of customers so that better products can be made and it helps in achieving
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targets. It is important to identify buying power of customers and make products accordingly so
that goals and objectives can be accomplished.
Buying power of supplier- it means to determine supplier of product so that raw material can be
supplied on itme and production cannot be stopped. There are many suppliers who are supplying
raw material and manager should maintain good relationship with suppliers so that they can
deliver resources on time and production can be done properly (Bruijl, 2018).
Threat of new entrants- there are many companies who are providing similar type of product
and attracting people. Managers of costa coffee should make new and innovative product so that
goals and objectives can be achieved and more profit can be generated. In market, new
companies enter and it is challenge for managers of costa coffee that they are able to provide
good services to customers.
Threat of close substitute goods- there are many companies who are providing similar types of
products. So, managers should keep prices low to attract people and to earn more profit. It is
essential to focus on satisfy need of people and close substitutes goods are available in market.
Tangible and intangible resources required
Tangible resources mean physical items like, cash, inventory, machinery, building, or items
which can be easily liquidated and has a value. In starting a new venture tangible resources
which is required are, land, inventory, cash, material. These are some tangible resources which is
used by an organisation to start a new venture (Kamasak, 2017). Intangible resources refer to
trademarks, patents, websites, registered design, organisational culture. In starting a new venture
website is used, organisational culture and design is applied. This helps in achieving goals and
objectives of company and better products can be provided to people. Tangible and intangible
both resources are used while starting a new venture and it is essential to focus on need of
customers and make plans accordingly.
Credible proposal
Aim – the aim of costa coffee is to attract more people and earn profit.
Objective
To gain competitive advantage by providing new and innovative products.
To create positive image in market and satisfy need of customer.
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