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

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.

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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To make new and innovative products.
Swot analysis
Swot analysis means to identify strengths, weakness, opportunity and threats. This helps in
determining positive and negative points so that plans can be made accordingly.
Strength- costa coffee is providing snap chilled coffee which is liked by people and it is not
provided by other firms. This is a positive point for company and helps in achieving targets and
more profit can be earned (GURL, 2017).
Weakness- it means negative points which affect performance like, shortage of employees. this
affects performance of firm because they are not able to provide good services.
Opportunity- costa coffee can expand their business because snap chilled coffee is liked by
people and in other countries there is no such product. It is essential to identify opportunities in
market and make plans accordingly.
Threat- threat for costa coffee is increasing competition. Nowadays, most of the organisations
are providing similar type of products. So, this is a threat for company as they have to make
better products and satisfy need of people (Teoli, Sanvictores and An, 2019).
Pest analysis
Political- it includes factors like, tax policy, tariff barriers, trade restrictions, and other factors
which is decide by government. Managers of costa coffee should make plans after analysing
government regulation so that targets can be accomplished (Perera, 2017).
Economic – it includes, economic rate, interest rate, laws, policies and procedures. This affect
performance of company because if they have to do business in other country then make
different rules and regulations.
Social – people are having different cultures and if an organisation wants to expand their
business then they have to make plans accordingly.
Technological – technology is changing rapidly and it is essential to use new techniques so that
customers can be attracted and more profit can be earned (Christodoulou and Cullinane, 2019).
STP
Segmentation- managers of costa coffee divide customers on the basis of age and demographic
segmentation is used. It is essential to segment market because it becomes easy to satisfy need of
people and more revenue can be earned.
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Targeting- managers of costa coffee are targeting young age group people. Nowadays,
youngsters are going out with their friends and enjoying. So, to attract them snap chilled coffee is
provided by costa coffee. Managers should identify target audience and make promotional
strategies accordingly so that need of customer can be satisfied and it helps in achieving goals
and objectives (Camilleri, 2018).
Positioning- it refers to developing positive image in market and better services should be
provided to people so that their needs can be satisfied. Good image should be created in mind of
customer. This helps in generating more profit and business run smoothly.
Skills and capabilities
There are some skills which an employee should have so that work can be completed on
time and it helps in achieving goals and objectives of company. It is important to have necessary
skills so that targets can be achieved and better plans can be made. In running business smoothly,
managers should recruit employees who are having skills so that work can be completed on time.
Academic and professional skills are required in business to accomplish targets. Academic skills
such as, analysis, communication skill, social, planning, technical skills and test taking skill.
Professional skills required in an organisation are, leadership skill, teamwork skill, emotional
intelligence, flexibility, problem solving. These are some skills which an employee should have
so that they can work efficiently and it helps in achieving targets (MAURYA and SHARMA,
2017). To run business smoothly it is essential to have skills and ability to complete work within
the given time period. When a new business is started then managers have to make proper plans
and strategies so that goals and objectives can be accomplished. In starting new venture
employees should work efficiently and satisfy need of people so that profit can be earned.
Managers should recruit employees who are capable and provide good services to customers. It
is essential to focus on need of people and provide them good quality products to customers.
Promotional activities and channels supporting the new launch and justify the choice
The offline promotional methods which are used by the Costa Coffee for promoting the
Snap Chilled Coffee are done through the word of mouth, creating the posters etc. The other
online methods of promoting the Snap Chilled Coffee of Costa Coffee is done through social
media platforms which helps in engaging the customers at large scale and this helps in creating
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value for the products and sales and profits of the business will also increase (Cooper, 2019).
Online methods such as Facebook, Instagram etc are helps in promoting and advertising the Snap
Chilled Coffee by serving them to the customers and letting them know the basis of market
expansion the business is doing. The best practice which is being used and the best promotional
strategy which has been used for the product to be launched successfully in the market can be
done by providing the scale through which all the growth and developmental aspects through
which product can reach the customers is known.
The promotional activity which has been taken for product launch is online social media
channel which is Instagram as there are millions are users. And when Costa Coffee’s new
product Snap Chilled Coffee will be promoted on Instagram, it will gain hundreds and thousands
of users’ at large scale (Schiavone and et.al., 2019). This will help in knowing the engagement of
customers and users’ towards the product within the market. Along with this, word of mouth
activity will also take place which will help in letting know the customers that this can also be
done for the promotion of new product launch which has been taken effectively and
significantly.
Promotional activity plan for both launch and pre – launch
To market the business of Costa Coffee by launching the product which is Snap Chilled
Coffee market analysis and research will be done so that the target market is analyzed and
evaluated at large scale which helps in also knowing that the product has been segmented and
positioned at the right place with the right customers (Turner and et.al., 2017). This will also
helps in engaging to known what officially is to be done after the product is being launched in
the market. This will be done through the market research done by STP analysis which is already
explained above. Proper data base for customers will be framed which will help in knowing that
the customers are engaged in buying the Snap Chilled Coffee of Costa Coffee or not. This will
also engage the customers in knowing that the budget of customers in buying the product.
By knowing the different perspectives of customers proper feedback will also be attained
during the launch and its pre – launch (Appel and et.al., 2020). There will be various methods
which will be used for the launch of the product in the market as Costa Coffee will engage more
customers in knowing that the scale of customers is rapidly increasing through promoting the
Snap Chilled Coffee online and is demanding more number of customers through the more
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number of customers which have been involved in taking the services of Costa Coffee. The main
aim of Costa Coffee is that the business will seek all possible ways so that they achieve the scale
of business which helps them in growing and developing during launch and pre – launch of Snap
Chilled Coffee.
Legal form for the venture stating why it has been chosen
Legal form for the venture helps in stating the venture is being supported by the measure
through which the growth and development of the business can be done at large scale and this
helps in knowing the major ways through which the business can seek accomplishments of its
aim and objectives. The legal forms are described as follows –
Limited Company – It is the general form of incorporation which limits the liability of taken by
the company’s shareholder. This helps in knowing the legal structure which is being followed by
the company as the subscribers are noted limited to the company (Qi, 2020).
Partnership – Partnership is the business arrangement where the business partners collaborate
and agree on sharing their business which helps in initiating the growth and development of the
business through the basis of how the profits and losses are also shared (Rydvalova and et.al.,
2021).
Private Company – Private company is the company which does not offer or trade its stock to
the general public as it operates under some strict legal requirements which are being followed
by the company.
Costa Coffee should run its business in partnership as it will help in engaging the new
product which is Snap Chilled Coffee to the customers and this will helps in increasing and
sharing the business at large scale which also helps in knowing the perspectives of how the
business runs and how the profits and losses are being shared. Partnership will also helps in
knowing that what the aspects of growth and development are further in market for Coffee
business at large scale so that strategies are being farmed while competing in market.
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CONCLUSION
From the above discussion it can be concluded that, before starting a new venture, market
analysis should be done so that better plans can be made and it helps in achieving goals and
objectives of company. Porter’s five forces i.e., competitive rivalry, threat of new entrants and
close substitute goods, buying power of buyer and supplier has been described. Further, tangible
and intangible resources has been described. Credible proposal which includes, aim, objective,
swot analysis, pest analysis and STP has been discussed. Skills and capabilities required to
launch a new venture has been described. Promotional activities and channels which support the
launch and appropriate promotional plan has been discussed. Appropriate legal form for the
venture has been described.
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REFERENCES
Books and journals
Appel, G. and et.al., 2020. The future of social media in marketing. Journal of the Academy of
Marketing Science.48(1).pp.79-95.
Bruijl, G. H. T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Camilleri, M. A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing
Management.76.pp.36-47.
GURL, E., 2017. SWOT analysis: A theoretical review.
Kamasak, R., 2017. The contribution of tangible and intangible resources, and capabilities to a
firm’s profitability and market performance. European Journal of Management and
Business Economics.
Khurram, A., Hassan, S. and Khurram, S., 2020. Revisiting Porter Five Forces Model: Influence
of Non-Governmental Organizations on Competitive Rivalry in Various Economic
Sectors. Pakistan Social Sciences Review, 4.
MAURYA, C. D. and SHARMA, A. K., 2017. THE ROLE OF MANAGERIAL SKILLS IN
SUCCESS OF AN ORGANIZATION. CLEAR International Journal of Research in
Commerce & Management. 8(6).
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Qi, K., 2020, April. Business Steward: Definition, Mode and Influence. In Journal of Physics:
Conference Series (Vol. 1486, No. 4, p. 042029). IOP Publishing.
Rydvalova, P. and et.al., 2021. Innovation and innovation partnership. In Innovation and
Performance Drivers of Business Clusters (pp. 47-57). Springer, Cham.
Schiavone, F. and et.al., 2019. Strategic marketing approaches for the diffusion of innovation in
highly regulated industrial markets: the value of market access. Journal of Business &
Industrial Marketing.
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Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Turner, S. and et.al., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology.16(1).p.3.
van Werven, R., Bouwmeester, O. and Cornelissen, J. P., 2019. Pitching a business idea to
investors: How new venture founders use micro-level rhetoric to achieve narrative
plausibility and resonance. International Small Business Journal. 37(3). pp.193-214.
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