Starting a Business and Fundamental of Marketing

This report provides an overview of starting a new business venture and the fundamentals of marketing. It discusses the impact of the external environment, including a PEST analysis, and competition on the business. It also suggests a target market using the STP model.

Starting a Business
and Fundamental of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
An overview of your proposed business idea.........................................................................3
An evaluation of the external environment (PEST)...............................................................3
A discussion on competition and overview of competitive advantage..................................5
A suggestion for the proposed target market..........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Starting a new business ventures requires an entrepreneur to consider a number of
marketing fundaments with the help of which it can appeal to a large base of audience in a timely
manner (Machado and et. al., 2016). It is crucial for the entrepreneur to determine whether the
entrepreneur idea is viable or not. The following report is conducted on 7 Spices, an upcoming
venture to be opened in a posh area of London. This venture will be a restaurant offering wide
array of vegan dishes to people at market place. The main purpose of doing this report is to gain
an insight into the impact placed by external environment upon the functioning of 7 Spices with
the usage of PEST analysis. Also, it consists of competitive analysis along with an overview of
firm’s competitive advantage. Lastly, the suggestion for target audience is provided with the
application of STP model.
An overview of your proposed business idea
Every venture that comes into market emerges with the intent to solve an economic or social
issue being faced by the people (Behrenz, Delander and Månsson, 2016). In this regard, it has
been identified on the basis of market research that a large proportion of audience within UK,
especially within the confines of London, is prone to diabetes as well as obese. In this relation,
the market gap reflected the absence of a venture within London which could offer healthy
dishes with no additives or low fats at reasonable prices. Thus, looking upon this, the
entrepreneur came up with the idea to launch a restaurant that would only be offering vegan
dishes. The sole aim behind doing so was to take into consideration the healthy lifestyle of vast
majority of population in London, UK. This venture will come into market in a time span of
upcoming 3 months. The ingredients of this restaurant would be procured directly from farmers
so as to ensure the freshness as well as to lessen the probability of any additive within them. The
name for the venture is decided as “7 Spices”.
An evaluation of the external environment (PEST)
It is basic for a business visionary to consider the business condition inside the bounds of
which an endeavour would begin to function. This holds importance as it contains the chance to
recognize probable opportunities as well as threats prevailing within the external environment of
a business (Bjerke and Gaddefors, 2017). Right now, 7 Spices is a vegan eatery that would give
the western style starters, primary course, pastries and other food items with a dash of veganism

within them. The offerings which would be offered to the customers inside the confines of the
endeavour would be made with fresh vegetables, fruits, natural items. It would guarantee that
health and related considerations of people of London is taken into consideration by the venture.
The emerging trends and certain transformations of the external environmental factors
affect the business in many ways. These factors plays crucial role in determining the success or
failure of any organisation whether directly or indirectly. Thus it is necessary for the business to
monitor these factors at a consistent interval of time. These factors thus can be analysed for the
effective identifications of opportunities and threats for the organisation. In relation to this 7
Spices company is seeking to perform the analysis of external macro environmental factors. It is
a vegan based restaurant, which serves a wide range of starters, main course and dessert all are
based on western cuisine culture. Along with that the restaurant has a distinctive quality and
feature that it cooks all the dishes only from vegan products. the business venture is using the
most popular yet effective tool of external environment evaluation that is pest analysis. It covers
all the major dynamics of external surrounding factors of business such as political, economic
and so on.
Along these lines, it gets significant for the business person to consider the conditions of
business environment in which the endeavour would do its tasks (Ryu, 2017). Owing to this
reason, PEST examination has been completed which will familiarize the business person with
the positives just as negatives connected with the outside variables of environment. Such positive
and negative aspects largely affecting the working patterns of 7 Spices and thus are important to
be duly taken into account in a timely manner. So, the external examination for 7 Spices is given
below with the usage of PEST framework:-
Political Factors: This factor encompasses all the activities of political powers within a
nation. The political force within the United Kingdom is quite stable that helps directly to the
business sections to evolve and plan for the growth for a long term. The stable political rule in
the country helps the hotel and restaurant sectors to determine the course of plan by considering
essential political regulations at a time as the government has a fixed position and type so there
are minimal chances for the changes in organisational policies of country. Due to the negative
effects of Brexit policies on the commercial aspects of United Kingdom it certainly affects the
operation and process of the restaurant in an adverse manner.

Economic Factors: This factor encompasses all the finance related elements in a nation.
Impacts of GDP, rate of return on investments, per capita income and economic growth rate. The
restaurant business is in the well flourished state of development through the increasing
standards of income. 7 spices gains its position on the effective and most economical share of the
market. which enables it to generate more amount of revenue through the sales and other events.
The Brexit related issues in the United Kingdom are holding a large amount of earning and due
to which the company is lacking the expansion of operations on a high level.
Social factors: The social elements in the market comprises of the cultural principles,
changes in the lifestyles, trends, certain perceptions of people and so on. Vegan food ingredients
helps to enhance the positive conditions of environment, as well as it also deflects the issues
regarding fast or junk foods on the health of consumers. The use of vegan products in the daily
meal of public is still not common. Thus it will take a bit time for the consumers to shift towards
the company and during that specific time the profit and earning of the company will surly see a
downfall.
Technological Factors: The advancements that are taking place in the confines of United
Kingdom at a rapid course of time are needed to be monitored by the 7 Spices in order to be
updated with the technological elements within the nation. The growing transformation in the
country helps 7 Spices to beat the extent of competition by adapting the current and futuristic
techniques in the functions and also in the food alternatives. The certain changes can determine
the cost of operation of the restaurant at a high level of consumption. This can create the
imbalance among financial departments and other activities of organisation.
A discussion on competition and overview of competitive advantage
The modern era is seen as the era of competition. It is important for each and every
organisation to take into account the rivals as well as their strategies (Hool, 2019). This presents
them with the chance to devise a strategy which is better than that of rival firms. In relation to
this, it has been analysed that 7 Spices is an emerging venture which would function within the
confines of restaurant sector. The offerings of this venture would be vegan dishes. There are
certain competitors within the domain of restaurant market of London. They may create
difficulties for 7 Spices in future course of time. Looking upon the probability of this happening,
the entrepreneur of 7 Spices is conducting competitive analysis. This will enable to gain
comprehensibility of the products of rivals and thereby incorporate changes in its own menu.

Thus, a large number of individuals would be attracted towards the offerings of this venture. So,
the competitive analysis for the venture is presented below by talking about 2 of its biggest rivals
in the restaurant industry (vegan):-
Rival Description
222
Vegan
This vegan restaurant was initiated in the year 2004. 222 Vegan is regarded as one
of the first vegan restaurants of London. The menu of this restaurant is totally plant
based and is inspired from a wide array of cuisine. The most renowned dishes of
this eatery are Nigerian soup Egusi, mushroom and spinach “raclette” and pumpkin
noodle salad with coconut, lime, and ginger.
Amrutha
Lounge
Amrutha Lounge is the Number 1 Vegan Restaurant as per the reviews of
TripAdvisor. It is a Michelin star eatery within Soho. Each dish provides within the
confines of this restaurant is of £10 or below that amount. In an instance whereby
the customers are disappointed with the flavour some food as well as the pleasant
atmosphere, they have the choice to pay what they think the restaurant deserves.
The competitive advantage pertaining to the upcoming venture is that this restaurant
would be offerings vegan offerings at reasonable price. The prices of 7 Spices would be set such
that they can become affordable by individuals, students and families. This will provide
assistance to the venture in tapping the interest of people who are money conscious as well as
prefer to sustain healthy lifestyle (Lea, 2019).
A suggestion for the proposed target market
7 Spices is acknowledged to be upcoming restaurant venture within London, UK. In this
regard, it is crucial for the entrepreneurial venture to select its target audience appropriately so as
to maximise its revenues as well as profits in the long run (Baručić and Umihanić, 2016). For
this purpose, the entrepreneur is making use of STP model which is used by a corporation to
select an effective and potential target market for the entity. Thus, the STP analysis of 7 Spices is
given as follows:-
Segmentation Market segmentation can be done on behavioural, geographical, behavioural

and psychographic bases. In this regard, it has been suggested that 7 Spices
should segment the market on behavioural basis. Herein, the firm would appeal
to people having likelihood towards vegan dishes.
Targeting 7 Spices should target those individuals who belong to the age group of 22-46
years as they are ascertained to be most health conscious and thus they possess
likelihood towards consuming vegan items.
Positioning It has been recommended that 7 Spices should carry out positioning of its
products by capitalising upon print media as well as social media marketing.
Through this, the venture would significantly be able to appeal to large number
of individuals at market place.
CONCLUSION
As per the above mentioned report, it can be easily stated that beginning a new venture is
a risky activity which should be undertaken by an entrepreneur only after identifying the viability
of entrepreneurial idea on which the venture would be based. In addition to this, it has been
acknowledged that competition is a major factor that places impact over the sustainability of
business in market for a long time period. Besides this, it is recognised that the external
environment of the venture put pressure upon it to devise effective strategies through which the
threats can be reduced by a significant margin. Also, it has been analysed that principles of
marketing should be taken into due consideration by the entrepreneur while opening and running
the new venture.

REFERENCES
Books and Journals
Ryu, A.J., 2017. My most valuable learning experience: Starting a business. Surgery, 161(4),
pp.885-886.
Machado, H.P.V., Gazola, S., Fabricio, J.D.S. and Anez, M.E.M., 2016. Women entrepreneurs:
Reasons and difficulties for starting in business. RAM. Revista de Administração
Mackenzie, 17(3), pp.15-38.
Behrenz, L., Delander, L. and Månsson, J., 2016. Is starting a business a sustainable way out of
unemployment? Treatment effects of the Swedish start-up subsidy. Journal of Labor
Research, 37(4), pp.389-411.
Bjerke, B. and Gaddefors, J., 2017. Starting a business venture rationally or naturally–exploiting
an opportunity in space or developing a place. In Research Handbook on Entrepreneurial
Opportunities. Edward Elgar Publishing.
Hool, C., 2019. Setting up shop in the UK? Considerations before transferring or starting a
business. Journal of Aesthetic Nursing, 8(1), pp.43-44.
Lea, R., 2019. The UK as a place to do business: still very highly regarded
internationally. Arbuthnot Banking Group, 4.
Baručić, A. and Umihanić, B., 2016. Entrepreneurship education as a factor of entrepreneurial
opportunity recognition for starting a new business. Management: journal of
contemporary management issues, 21(2), pp.27-44.