Starting a Business and Fundamental of Marketing

This report provides an overview of starting a business and the fundamental concepts of marketing. It discusses a proposed restaurant business idea, conducts a PEST analysis, analyzes competitive advantages using Porter's five force model, and suggests a target market using the STP model.

Starting a
business and
fundamental of
marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of proposed business idea...........................................................................................3
PEST analysis..............................................................................................................................3
Discussion of competitive advantages........................................................................................5
Target market..............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to activity which a organisation undertaken for promoting their buying
or selling of product and services. Moreover, marketing involves selling, advertising as well as
delivery of product to consumers and other business (Greisen and et. al., 2019). With the
assistance marketing company will be able to build good relation with their existing as well as
potential customer's. In addition to this, it is essential for company to do marketing because it
help them in attracting large number of customer's and increasing their sales.
This report is based on new restaurant i.e., 7 Spices who is coming up with some
innovative idea in market. Report is going to discuss business idea along with external
environment analysis for gaining competitive advantages. In addition to this, suggestion for
proposed target market will be given. Thus, for external environment analysis PEST will going
to be conduct and for identifying competitive advantages Porter's five force model will
implement. Moreover, for target market STP model is more suitable.
MAIN BODY
Overview of proposed business idea
7 Spices is restaurant which coming with some innovative idea i.e., food ordering through
application and bill also generate on it. Respective restaurant have some unique décor and it is
most sophisticated family dining place. 7 Spices offer perfect ambience and quality food to their
customer's. Moreover, variety of Indian cuisine dishes offered by keeping quality and need of
customer's in mind. This innovative idea of ordering food through application and bill generation
will be good for attracting large number of customer's. Along with this, guest of 7 Spices no
longer have to wait for Waiter to order food or for getting bill. This application is named as
“Spices hub” which is easily available on play store for both Android as well as IOS users.
PEST analysis
PEST analysis is management method which use by an organisation for assessing major
external factors which influence its operation of an business firm (Varadarajan, 2019). Here,
PEST stands for political, economic, social and technological. 7 spices is restaurant which
coming in market with some innovative idea of food ordering through application and bill also
generate on it. This application is named as “Spices hub” which is easily available on play store

for both Android as well as IOS users. In relation of 7 Spices, explanation of PEST are as
follows :-
 Political Factors – This factor have great influence on restaurant business anywhere
within worldwide level. For instance, tax reforms, health and safety guidelines and many
more. For 7 Spices it is necessary to take appropriate decision in relation of these
regulation for minimising any negative impact (Hollebeek, Srivastava and Chen, 2019).
From purchasing, cooking, packing and delivery restaurant have to take care of food
products in effective manner. In addition to this, from country to country health
regulation get change so it is necessary to implement regulation of specific nation while
expanding business.
 Economic Factors – In the economy where 7 Spices in operating if inflation rate
increases, it will have direct impact on prices of ingredients. This simply shows that
menu price of respective restaurant will also increase. Due to which most of the time
people avoid to order food from restaurant as well as also stop going outside for
shopping. In addition to this, disposable income of customer's is also another economic
factor which have wide impact on food industry. If people will have more disposable
income then they will go out with their family and friends as well as also order food from
restaurants like 7 Spices. Thus, disposable income will have positive impact on working
of respective restaurant as its sales will increase and profitability also.
 Social Factors – There are numerous social factors which have positive as well as
negative both impact on working of 7 Spices. Because people are becoming more health
conscious now a days which may have negative impact on restaurant as people will avoid
fast food (Hollebeek and Macky, 2019). Along with this, it may work as opportunity for
it as they can add healthy food in their menu which will provide assistance to them in
attracting large number of customer's. Thus, providing both junk and healthy food may
result in increasing their customer base. Apart from this, another good example of social
factor is busy lifestyle of people as they are working for late hours in offices. As they are
people in daily routine and have no time for proper food, workout and sleep as they
prefer coffee, carbonated drink, fast food and many more on daily basis. For restaurant it
is not easy to keep their all customer's happy but in this their feedbacks will provide
assistance to 7 Spices.

 Technological Factors – Advancement and rapid growth or change in technology have
impact on restaurants. But it is not possible for every restaurant to implement latest
technology in their operations because some are expensive. In relation of 7 Spices they
are coming with innovative idea in market which have latest technology. Food ordering
through application and bill also generate on it (Hunt, 2017). This application is named as
“Spices hub” which is easily available on play store for both Android as well as IOS
users. Thus, it will attract large number of customer's and result in enhancing profitability
of company.
After going through PEST it have been identified that for an business firm it is essential to
identify factors which are involved within external environment because these have both positive
as well as negative impact on working of business firm.
Discussion of competitive advantages
Porter's force model identifies as well as analyse five competitive forces which will shape
every industry and also provide assistance in determining industry weakness and strength. In
addition to this, five force analysis frequently utilise by an organisation for identifying industry
structure for determining its corporate strategy (Hollebeek, Srivastava and Chen, 2019). It
involve five forces which are mention below in relation of 7 Spices which are mention below :-
 Competition in the industry – 7 Spices is facing tough competition as fast food market
is saturated. In relation of respective restaurant strong forces of competitive rivalry are
based on several external factors such as high number of firms, low switching cost and
high aggressiveness of firm. Thus, in fast food industry there are several number of firms
of various size which result in high level of competitive. So for 7 Spices level of
competition is high.
 New Entrants – For opening an restaurant there is requirements of several permission,
good infrastructure and many more things (Järvinen and Taiminen, 2016). Along with
this, it is also essential to create unique product for taking better place within competitive
industry. Moreover, there is high level of competition within respective industry so for
new entrants it will be not easy to sustain within business environment. Thus, 7 Spices
restaurant have low threat of new entrants which is advantage for them.
 Bargaining Power of suppliers – For restaurant main suppliers are dairy produce, meat
vendors, dough and many more. Thus, for 7 Spices bargaining power of suppliers is low

because there are numerous suppliers of these items. So if suppliers will not entertain
bargaining then restaurant have option as they can switch to other suppliers for
purchasing raw material. In simple term it can be said that, large number of suppliers
weakens impact of individual suppliers on 7 Spices restaurant. This weakness is partly
based on lack of strong regional as well as global alliance within suppliers.
 Bargaining Power of customer's – Buyer's have high bargaining power because there
are several restaurant as they have option to choose any of them (Van Den Berg and
Braun, 2017). For example, if one restaurant have long queue then customer's can go to
another. Thus, high bargaining power of buyer is major disadvantage for 7 Spices as it
may effect their customer base. Moreover, it is important for respective restaurant to
maintain their customer's loyalty which can be only possible when their need and want
get satisfied in effective manner. So that, 7 Spices have to take feedbacks from their guest
because it will help them in implementing modification if required.
 Threat of substitute products - For restaurant threat of substitute product is high as
mostly all restaurant are selling similar type of products such as burger, sandwich, pizza
and so on. But 7 Spices restaurant is selling Indian Cuisine in United Kingdom which
have less number of substitute. Thus, for 7 Spices threat of substitute product is moderate
because their offering is quite different from other companies of same sector.
Target market
STP is well known and familiar strategic approach within modern marketing as it is most
common applied marketing model within practice. Here STP stands for Segmentation, targeting
as well as positioning. Respective model is useful for creating marketing communication plan as
it provide assistance to marketers in prioritising proposition (Harvey, 2018). Then develop as
well as deliver personalised or relevant message for getting engage with different audience.
7 Spices is restaurant which coming up with innovative idea in market i.e., food ordering
through application and bill also generate on it. This application is named as “Spices hub” which
is easily available on play store for both Android as well as IOS users. In relation of this, STP
model are as follows :-
 S (Segmentation) – It is procedure of splitting market within smaller group with need of
similar products as well as identifiable characteristics. For segmenting market these will
be use such as demographic, geographic, psychographic and behavioural. In relation of 7

Spices, they will target people of 25 to 45 years people company is serving Indian
Cuisine. This age group people like to go out on dinner or lunch with their family or
friends.
 T (Targeting) – This involves taking decision that which segment company will find
more attractive (Capriello, 2018). While targeting there are several factors which need to
be consider such as size, profitability, easy to reach and so on. In relation of 7 Spices,
they will target people of 25 to 45 years people company is serving Indian Cuisine. This
age group is easy to reach and profitable for business because of their brand loyalty
nature.
 P (Positioning) – It is the final step of STP model in which different variables will map
out which are considered within last two steps (Atwal and Williams, 2017). Along with
this, products will position differently in comparison of competitors within the mind of
customer's. 7 Spices implementing functional positioning in which problem of customer's
will solve and benefit will be provided to them.
CONCLUSION
After going through this report it has been summarised that, for an restaurant it is
essential to analyse market in effective manner before entering within it. Because there are
several things in business environment which have wide impact on activities of company. Along
with this, analysing market provide assistance in identifying current trends, taste and preferences
of customer's and many more. Moreover, for analysing external factors conducting PEST will be
suitable for business. As well as conducting porter's five force model provide assistance to
company in gaining competitive advantages. In addition to this, for targeting market STP model
is most suitable approach.

REFERENCES
Books and Journals
Greisen, C. and et. al., 2019. Public Health and the Four P's of Marketing: Alcohol as a
Fundamental Example. The Journal of Law, Medicine & Ethics. 47(2_suppl), pp.51-54.
Varadarajan, R., 2019. Theoretical underpinnings of research in strategic marketing: a
commentary. Journal of the Academy of Marketing Science. 47(1), pp.30-36.
Hollebeek, L. D., Srivastava, R. K. and Chen, T., 2019. SD logic–informed customer
engagement: integrative framework, revised fundamental propositions, and application
to CRM. Journal of the Academy of Marketing Science. 47(1), pp.161-185.
Hunt, S. D., 2017. Strategic marketing, sustainability, the triple bottom line, and resource-
advantage (RA) theory: Securing the foundations of strategic marketing theory and
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Hollebeek, L. D. and Macky, K., 2019. Digital content marketing's role in fostering consumer
engagement, trust, and value: framework, fundamental propositions, and implications.
Journal of Interactive Marketing. 45, pp.27-41.
Hollebeek, L. D., Srivastava, R. K. and Chen, T., 2019. Correction to: SD logic–informed
customer engagement: integrative framework, revised fundamental propositions, and
application to CRM. Journal of the Academy of Marketing Science. 47(1), pp.186-186.
Järvinen, J. and Taiminen, H., 2016. Harnessing marketing automation for B2B content
marketing. Industrial Marketing Management. 54, pp.164-175.
Van Den Berg, L. and Braun, E., 2017. Sports and city marketing in European cities. Routledge.
Harvey, P.D., 2018. Advertising affordable contraceptives: the social marketing experience. In
Social Marketing (pp. 147-167). Psychology Press.
Capriello, A., 2018. the Strategic Management of events for Destination Marketing. Tourism
Planning and Destination Marketing, p.221.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In
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