Launching a New Venture: Target Markets, Resources, Proposal, Skills, and Promotional Activities

This study explores a business's specific concept in depth, along with the best way to carry it out. It covers the numerous tools which are essential to a new firm's effective growth, skills and capabilities required to launch a new venture, and different promotional activities and channels that will support the launch and justification of the same.

Unit 28

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
ACTIVITY 1...................................................................................................................................1
P1. Investigate and explain a new venture identifying specific target markets and
understanding competitive analysis.............................................................................................1
P2. Determine specific tangible and intangible resources that would be required for the launch
of a new venture...........................................................................................................................3
P3. Produce a credible proposal to launch a new venture...........................................................3
P4. Assess the skills and capabilities required to launch a new venture and how they are
acquired and developed...............................................................................................................4
P5. Explain different promotional activities and channels that will support the launch and
justification of the same...............................................................................................................5
P6. Develop an appropriate promotional activities plan for launch and pre-launch...................7
P7. Produce an itemized monthly cash budget for the pre-launch phase of the venture and the
first 12-18 months preceding launch...........................................................................................8
P8. Suggest an appropriate legal form for the venture stating why it has been chosen...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There is a requirement for thorough preparation and suitable execution whenever somebody
wants to start a novel business (Anderson, Chandy and Zia, 2018). This study has explored a
business's specific concept in depth, along with the best way to carry it out. To evaluate the
targeted customer categories and determine the firm's viability, marketing analysis and intended
audience studies are conducted. The study additionally covers the numerous tools which are
essential to a new firm's effective growth. To clarify the important responsibilities which would
be included in the firm, a proposed strategy for the enterprise and its concept is prepared in the
document. The analysis includes discusses the advertising and branding campaigns which would
be undertaken to ensure the corporate firm's profitability. The paper concludes with a general
summary that highlights the key takeaways.
ACTIVITY 1
P1. Investigate and explain a new venture identifying specific target markets and understanding
competitive analysis
An enterprise must first be properly planned, followed by a very lucrative implementation of
the strategy, in addition to be launched effectively. The concept must be original and establish
the core values of the company (Bancroft and Nyirenda, 2020). The proposed project is linked to
generating reasonably priced electrical automobiles in the present globe wherein individuals are
going into ecological concepts and are much more concerned with environmental preservation.
 Consumers to approach: The individuals that are utilising local transportation to travel
and make an equal amount of money annually would become the clients to aim for this
business concept. The intended consumer could be identified based on regular
transportation planning process, and the car would be developed in a way which is
economical and therefore could enable the client to reduce costs. The majority of clients
invest a significant amount of their earnings on either gasoline costs for their personal
automobiles or local transportation.
 Opportunities for a societal entrepreneurship: The project does have the ability to
address both socio-economic requirements and ecological concerns related to
safeguarding non-renewable power supplies (Daud, Ab Rahman and Adnan, 2020). The

revenue generated could be used to create inexpensive, environmentally sustainable
automobiles that fulfill the demand of the broadest possible client base.
 Company Proposal: The concept involves creating several types of electric vehicles that
would only operate on electrical power and contribute to environmental preservation. The
business would not just produce electrical automobiles but it would additionally offer a
variety of activities to customers, such as support with automobile upkeep and repairs and
cell replacement. In industrialised nations such as the Britain, the conceptual model does
have a high chance of accomplishment, and additional development could be envisioned.
Porter's Five Forces Assessment of Competitors and the Marketplace- Porter's five
forces could aid in the formulation of both operational and conceptual decisions that speeds up
the execution phase, to boost revenue and effectively penetrate a marketplace.
 Power of Vendor: Since the business is a newer competitor in the industry, the influence
of the vendors could not be overlooked, thus it would be necessary to deftly deal with the
providers. Numerous replacement components as well as other components would be
required for the construction of the electrical vehicle and would be procured from
vendors via clever negotiating.
 The power of the customer: The customer is the most important component in the
prospective business's concept. An effective strategy to appease a huge customer base
could guarantee success. To individually inform the client of the advantages of the
automobile and the reasonableness of the price (Elatawneh and Sidek, 2021).
 Threats of Substitutes: Businesses that are developing electrical motorbikes that are a
less expensive choice for the client continue to pose a threat of substitution to prospective
entrants.
 Threat of the new entrants: Because the initiative is a newer product in the industry, it
could pose a danger to the companies that are currently operating there. The enterprise,
which is a newer competitor in the market, is highly complicated because it requires
getting through obstacles such as the expensive value of funds, the need for significant
operating resources, and the system's competition. The correct marketing tactics might
help the company to gain an overall increased industry share.
 Competition Rivalry: The latest business plan seeks to provide automobiles throughout
the Great Britain and seems to have facilities for such. The company's main rivals in the

electrical automobile market would be Renault, Nissan, and Volkswagen. Despite having
well-known brands and products, companies lacked the element of accessibility.
P2. Determine specific tangible and intangible resources that would be required for the launch of
a new venture
Assets needed for the prospective undertaking: The organisation would need a variety of
assets for a variety of reasons. These assets could be subsequently divided into 3 subgroups:
 Tangible resources: The assets that are physically present and directly affect the degree
of manufacturing are known as tangible resources. In order to cut expenses, the company
plans to establish a manufacturing plant on the periphery. It also plans to build a storage
close to the big retailers wherein the finished automobiles would be stored. Savings in
expense would be made possible by making the best use of available area and assets.
 Intangible resources: Assets that are necessary for the business to operate smoothly and
efficiently are known as intangible resources. To satisfy the intangible expectations, it
mostly entails talents and capabilities, and the enterprise seeks to recruit and retain a staff
that is top-notch and capable of producing high-quality goods via production operations
(Grashuis and Su, 2019).
 Financial needs: With the support of the promoters and financiers, the firm's financial
needs can be fulfilled. The majority of the financial needs would be covered by
entrepreneurs and company owners self-financing, while other operating capacity needs
would be covered by institution loans and borrowing.
P3. Produce a credible proposal to launch a new venture
Plan for starting a new business
Business plan
Resource Planning- The prospective company would need a variety of assets that can
either be finance, tangible assets, or intangible assets. Those materials would be categorised
based on respective requirements. Prior to choosing a workspace and outfitting it with important
equipment and plant, funds would be needed. The money would then be required to hire people
and meet their demands. In order to establish outlets and transport the goods to customers,
money would ultimately be needed.

 Location- It is intended to purchase the workspace's location on the fringes of England
because it would be less expensive. The outlets' principal locations would be in populous
cities.
 Equipment- The workplace would be outfitted with the primary technology kinds, such
as apparatus and replacement components, and all employees would receive the
necessities along with a well-thought-out strategy and automobile layout.
 Technological resources: The development of a communications network would depend
on the availability of assets connected to computer systems and a workforce which is
sufficiently knowledgeable about these tools (Heirati and Siahtiri, 2019).
 Human resource management: The company strives to increase workforce with
sufficient expertise of the industry of electrical automobiles because it could aid develop
superior automobiles and therefore may effectively satisfy consumer requirements.
Credit Proposal- It would be great to fund the endeavour for a commercial organisation
since it has the ability to become the industry leading company in a few terms. The company
wants to create reasonably priced electrical automobiles that would enable customers to possess
their personal automobiles, conserve cash, and protect the ecology. Due to the extensive
preparation and study that went into the project prior it was developed, it also has the ability to
outperform its competitors. The information beneath provides a thorough estimation of the funds
which are on hand and the funds which are potentially required:
 Necessary overall cost for the company: £1,00,000
 Amount of the producer's investments: £30,000
 The owners' intended financing: £30,000
 The prerequisite for credit: £40,000
As soon as the company starts selling automobiles, the interests and principle would be
returned, and the financiers have pledged to cover these costs.
P4. Assess the skills and capabilities required to launch a new venture and how they are acquired
and developed
The abilities necessary to start an innovative firm are extremely important to its viability. The
skills of a concept marketer and a businessman are formed through company operations and as a
result of the corporate setting (Khan and Anuar, 2018). The following are some details about the
talents and qualities needed to start an innovative business:

 Recruiting and retaining employees: Finding and retaining the proper personnel is a
key component of profitable initiatives. The correct labour must be employed, and the
available materials must be made available to workers, in terms of enabling them for
electrical automobiles to be produced successfully over extended time periods and to
remain competitive in the marketplace. The management of the personnel is essential to
keeping them on board for extended duration of time.
 Time Managing: Effective time administration is essential for a new business since it
reduces wastage and enables targeted asset utilisation. Timing managing effectively
controls inconsistencies enables the client to encounter fewer issues and experience
greater happiness.
 Creating a robust networking: A solid connectivity includes vendors and important
partners. A powerful networking could help a business in the big scheme of things and
also has a significant impact on the industry. A comprehensive structure expands the
business's audience substantially and creates opportunities for word-of-mouth advertising
(Koester, 2017).
 Selling: It is among the most important factors in starting a new business since if a
concept cannot be turned into a commodity and sold, the endeavour will collapse. The
company concept must effectively interact with clients in terms of generating revenues.
The much more crucial component for a business to succeed is the selling component.
 Online advertising: It is accorded a lot of significance in the current technological age
because it may address a sizable consumer base with only one touch. Technological
advancements have made it easier for businesses to interact with their clients and respond
to their issues more quickly. The innovative business could succeed with the aid of the
proper strategy for online advertising.
P5. Explain different promotional activities and channels that will support the launch and
justification of the same
The innovative brand would be introduced to the industry through a variety of marketing
events and platforms. Here is a more thorough discussion of their actions and dissemination:
 Selling Promotion: The phrase "selling promotion" refers to the many advantages
offered to the client. Offering rebates, extra perks such as after-sales support, and
reassuring customers of a membership programme are all ways to draw in customers. The

client's thinking is greatly impacted by selling marketing strategies, and therefore seem
invested in the project. Selling marketing could increase selling and improve word-of-
mouth advertising (Larjovuori, Bordi and Heikkilä-Tammi, 2018).
 Marketing on digital networking sites: Among the most potent marketing strategies in
today's marketplaces is digital network marketing, which is what digital networking
advertising entails. Since virtual network venues are expected to be visited by customers,
businesses should concentrate on building relationships with them instead of teaching
them regarding their products and business.
 Advertising: One of most time-tested and traditional means of marketing is an
advertorial. For the aim of marketing, the enterprise would be using posters and placards,
TV adverts, internet and digital media, and more. The advertising can be seen all across
big cities, suburbs, and smaller cities.
 Personal selling: It refers to interacting with customers personally in order to close
transactions. The business is aiming to recruit candidates that could effectively interact
with the general public and aid them in understanding the function of electric
automobiles in the seasons to come (Leach, Lavallee and Charlton, 2018).
A company network or its middlemen are highlighted by the distributing route through which
the end customer purchases a goods and services. Stores, distributors, the web, and distributors
are among the routes of marketing. The relevant marketing channels may be used in the
projected enterprise:
 Just in time: The Toyota procedure of producing, often referred as just-in-time
producing, is another method that may be used to produce and deliver goods. Its main
goal is to shorten the period required for both the industrial phase and the supply chain
from provider to consumer. A just-in-time method of stock is a managerial technique
which would coordinate vendor requests for basic materials with manufacturing plans.
 Personal sales: In a directly selling form of company, there is no middleman involved in
the distributing system; instead, the brand sells goods directly to the consumer. This
suggests that there is no need for a distributor, merchant, or other related parties to
maintain stock or advertise a company's goods. It would enable the business to interact
personally and immediately with the consumer, just like Amazon does. Whenever a client
receives personalised help, he is more inclined to remain connected, and individual sales

by the company is necessary in the sales of goods such as cars (Özataç and Gökmenoglu,
2017).
P6. Develop an appropriate promotional activities plan for launch and pre-launch
The entire strategy for the launching and pre-launch of the electric cars would be covered
by the promotional operations strategy. Following is a basic discussion of the promotional
activities strategy:
Promotional efforts prior to launching
Strategy for Promotional Activities: The promotion strategy would cover a wide range
of events which might aid in spreading company awareness across a large consumer base. The
major goal of the pre-launch operations is to inform the consumer regarding the item offerings
and its advantages.
 Client Attention Campaign: The goal of the consumer attention push is to inform the
public regarding the usage of automobiles and their environmental effects. Customers
should be made aware of the much reduced level of carbon pollution if they are to be
persuaded to purchase vehicles and show excitement in the new item's launching. Digital
networks and door-to-door marketing could be used to handle the consumer engagement
push. The client usually appreciates a human contact, therefore the business could benefit
from immediate contact with prospective and engaged clients (Pfisterer, Radonjic-Simic
and Reichwald, 2016).
 Trial and Test Driving: Clients could be invited to test drive modern electrical vehicles
in accessible areas, allowing users to acquire a hands-on feel for the freshly developed
goods and providing an important client input. Prior to the launching, prospective buyers
should be called so they can test drive the vehicles and provide feedback.
 The company would be known as E-cars Private Limited when it is incorporated.
 The items' names would be Eco Car, E-drive, and E-sport.
 The Greener, The Better, is the company's slogan
Post launching of the item: Britain would host the item debut since it is a centre for
prospective buyers. Leading companies, technology creators, the press, and the general public
would all attend. The wider populace would be informed about the specifics of the new release
via letters, text messaging, conversations, and press statements. The branding drive effort would
aid in motivating individuals to attend the item debut. Leading personalities and leaders that

seem to have a strong grasp on the public would promote the item. The viewers of the show
would get the opportunity to test out the recently introduced electric cars and enjoy the item
personally at the launching.
Utilization of Digital Networks: The enterprise would start digital networking initiatives,
which may include activities and marketing films. The use of online networking platforms
including LinkedIn, Pinterest, Google, and Daily motion could increase consumer contact and
spread word of the item introduction (Pieroni, McAloone and Pigosso, 2019).
P7. Produce an itemized monthly cash budget for the pre-launch phase of the venture and the
first 12-18 months preceding launch
Every one of the costs associated with creating the vehicles and promoting these on the
marketplace would be highlighted in the financial plan for the business's pre-launch stage. The
pre-launch financial projections are described beneath:
Pre-launch spending plan
Activity Debit or Credit
Capital Investment (+)£1,00,000
Production (-)£55,000
Market Research (-)£2,000
Warehouse and Inventory Maintenance (-)£5,000
Workforce Payment and Remuneration (-)£24,000
Social Media Campaign and Advertisement (-)£2,500
Launch Event (-)£8,000
Brochure and Pamphlets (-)£500
Celebrity and Influencers endorsement (-)£1,000
Store Maintenance (-)£1,000
Others (-)£1,000
Projection of earnings or costs after launching
Receipts After 12 months of
launch
After 15 months of
launch
After 18 months of
launch
Cash Receivables £25,000 £50,000 £75,000
Credit Receivable £15,000 £20,000 £20,000

Sale of Assets - - £5,000
Total Receipts £40,000 £70,000 £1,00,000
Payments
Payments
Salaries £26,000 £36,000 £42,000
Expenses £10,000 £18,000 £18,000
Tax £6,000 £15,000 £30,000
Fixed Overheads £1,000 £1,000 £1,000
Net Cash Flow (-)3,000 0 (+) 9,000
The business being managed to deliver 80 vehicles in a year that resulted in a negative
Projected net cash flow. After 15 months, the business sold 100 vehicles. It was managed to
reach the break even point, meaning it saw no gain and no deficit, and after 18 months, the
business began to make significant earnings.
P8. Suggest an appropriate legal form for the venture stating why it has been chosen
The promoters have access to a number of company holding structures, and they select one
only after carefully weighing all the risks and contributing variables (Rohn, Sabari and Leshem,
2016). A company's structure has a significant effect on the way it conducts operations. After
thoroughly examining the various corporate structures that are subsequently mentioned, the
company's formal basis would be chosen:
 Public interest businesses or ethical enterprises: Such businesses only pursue non-
profit objectives and are concerned with societal good. Although the firm and its concept
are founded on environmental protection, the business would not be simply a socially
business because it needs to turn a revenue in order to remain operational and continue
offering goods to the public. That still does not mean the business would solely be
concerned with turning a gain; it also needs to be concerned with offering superior
products.
 Sole Proprietor: A sole proprietor could manage a smaller company successfully,
although it may not be appropriate for a company that produces electrical cars because of
its scale.
 Partnership or Limited Liability Company: In a partnership when 2 or more associates
join up for the aim of commerce, this sort of company assures that the responsibility of

the members is restricted to the sum which has been assured. The new business could be
a better match for any of those 2 groups of corporate organisations. The business's
founder will like to establish it as a limited liability company (Salminen, Ruohomaa and
Kantola, 2017).
CONCLUSION
The aforementioned research clarified a number of factors which could present difficulties
whilst launching a new business. It makes sense to predict the possibility and create electrical
automobiles now that individuals are much more environmentally conscious. Notwithstanding
the industry's competitiveness, it continues to be possible to create items at affordable costs that
would serve as the company's main selling point to the general public. The company would
succeed in its mission to protect the ecology, as well as all earnings would be committed in the
creation of goods that would serve the community. There are numerous techniques to advertise
the new business, and these are carefully explored in the study. Due to the necessity for a
personalized contact with the client, the marketing route for this type of company would be
straightforward. The knowledge gained from the study as a whole has improved comprehension
of the concept of a new endeavour and how it could be carried out.

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