Starting a Business and Fundamentals of Marketing

This report discusses the importance of a business plan for a new business and provides an overview of a proposed business idea for Immuno Drinks. It covers PESTEL analysis, SWOT analysis, competition analysis, identification of target market, and marketing plan. The report also includes a marketing budget and references.

Starting a Business
and fundamentals of
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of proposed business idea......................................................................................3
PESTEL analysis....................................................................................................................4
SWOT analysis.......................................................................................................................5
Competition analysis..............................................................................................................5
An industry analysis...............................................................................................................6
Identification of target market................................................................................................7
Marketing plan........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES:.............................................................................................................................10
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INTRODUCTION
Every person wants to become successful in their life and that's why business is one of
the best option. In order to reduce the business risk, entrepreneur needs to formulate a business
plan in which they include all the necessary activities which helps in analysing the market
situations and able to make predictions (Barlow and et.al., 2021). In order to run a business
successfully, it is necessary to identify and analyse all the market conditions which can be done
with the assistance of analysis of internal and external environment. This report aims to develop
a new business dead which fill the market gaps and also cover a business plan.
MAIN BODY
Overview of proposed business idea
The current scenario of market identified that there is a need of immunity drinks as after
pandemic situation, it is found that every person has weakened their immune system. Due to
COVID-19, it is found that people should possess strong immune system which helps them to
fight with the diseases (McKeever, 2018). This is the reason that 'Immuno Drinks' is chosen as
a new business idea. This business idea is very helpful in order to fill the market gap. It is the
business of immunity booster drinks which provides each ages people. There is no business
found that provides immunity drinks to all ages of people. This is the reason that this business is
chosen which is using organic ingredients in order to manufacturing immunity booster drinks.
These immunity drinks considers all types of taste according to the demand of customers. It is
healthy as well as tasty which cannot refuse by any person whether they are children.
Brand name: Immuno Drinks
Tag line: Energy in Drink
Mission: To boost the immune system of people.
Vision: To provide satisfaction beyond customers' expectation.
Products and services: It covers all flavoured drinks which produces by natural
ingredients that promotes a healthy life.
In order to run a business, it is necessary for an entrepreneur to possess many important
skills such as risk taker, critical thinking skills, research skills, communication skills, creativity
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skills, etc. Some of these skills I already gained from my last internships in which I received
many new projects which I need to handle independently.
Immuno Drinks is located in South East of London, UK. I chose this location because it
is the best location for do a business. There are may firms identify in this location. That's why
this location is considered for the purpose of doing business.
PESTEL analysis
PESTEL analysis is one of the best tools which is designed for the purpose of analysing
external environment (HAN and Kang, 2020). In order to start a new business, it is crucial for
entrepreneur to identify all the external factors which helps them to analyse the market in an
effective way. It covers 6 important factors which are well explained in below points:
 Political Factors: It is identified that political factors include all the political issues, tax
policies, government rules and regulations, change trade tariffs, stability of governments,
etc (McCready and Molls, 2018). For new business, it is necessary to consider this factor.
In the case of Immuno Drinks, this factors doesn't create any threats as the UK political
conditions are better as compared to other nations. Brexit was one if the factor but in
current case, their impact is slowdown.
 Economical Factors: Economical conditions of UK is found to be decline because of
COVID-19 situations. This will creates problems and challenges in Immuno Drinks.
 Social Factors: Every day the social trends is changing continuously. It becomes
challenging for Immuno Drinks to run their business with the changes in consumers'
tastes and preferences.
 Technological Factors: It includes the updates in technologies. Immuno Drinks needs to
invest in new technologies which becomes tough for a new business.
 Legal Factors: It is very important for every organisation to consider legal factors it
impacts on the legal status of organisation (Blackwell, 2017). Immuno Drinks should
apply all the rules and regulations to survive in the market.
 Environmental Factors: This becomes compulsory as well as duty of every organisation
to give contribution in the environment safety. It is the part of CSR. In the case of
Immuno Drinks, they already provide healthy drinks which shows a good participation in
CSR.
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SWOT analysis
SWOT analysis is a tool of internal environment analysis which helps an organisation to
identify the strengths, weaknesses, opportunities, and threats.
Strengths Weaknesses
 It provides wide range of varieties in
drinks so they are able to satisfy the
consumer needs and wants.
 It is the new business so they have not
possess strong financial conditions
(Matović, 2020). They are not able to
invest on new technologies.
Opportunities Threats
 They are able to gain competitive
advantage as they are providing healthy
drinks which is the part of CSR.
 Continuous changes in consumers'
demands becomes threats for Immuno
Drinks.
Competition analysis
It is very important for new business i.e. Immuno Drinks needs to analyse the
competition in the market so that they can come with strategies and market research which
reduces the risk of product failure. It is the process which identifying competitors and evaluating
strategies which helps in determining weaknesses and strengths in order to make the company
better (Xu, 2020). In order to do a competition analysis, strategic group analysis is an important
model which is used for the purpose of analysing competition by making clusters in similar
strategic group. In this analysis, company needs to identify the clusters which helps in falling
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into a specific strategic dimension. So that they can analyse the impact of different strategic
approaches.
An industry analysis
In order to analyse the industry, it is very important for an organisation so that they can
make predictions for future risk and diversifications. For the purpose of industry analysis,
Porter's five forces model is undertake. This model consists of five forces in which a new
business is analysed that what are the status of industry and how they can grow in the particular
industry. The explanation of all five forces are mentioned below:
Bargaining power of suppliers: It is the first force in which organisation needs to
analyse the supplier powers. In the case of beverage, it is found that there are large number of
suppliers found but in case of energy drinks company needs to focus on suppliers who provides
best quality of drinks (Sagita and Rahayu, 2019). These type of suppliers found to be low. In
case of Immuno Drinks, they are purchasing ingredients from suppliers who are largely available
in the market. So the bargaining power of suppliers found to be low.
Bargaining power of buyers: In case of Immuno Drinks, it is found that bargaining
power of buyers are low as there are very less competitors in the market who provided same
quality of products to the consumers. So that's Immuno Drinks can increase the process of their
products but it should be after some time as it is the new business.
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Competitive rivalry: In the natural immune booster, it is found that competitive rivalry
is comparatively low as compared to other industry. This is an opportunity for Immuno Drinks to
raise their business into heights.
Threats of New entrants: This market is increasing that means it is found that there is
threat of new entrant but as not much as to other sectors. So that's why it is found that there is
low threat of new entrants found in the case of Immuno Drinks.
Threat of substitute: In case of Immuno Drinks, it is identified that they have less threat
of substitute as they provided natural and organic immunity booster drinks which helps them to
stay competitive in the market. People have no choice to switch to other organisation. That's why
this is the opportunity of competitive advantage.
Identification of target market
In order to identify the market, Immuno Drinks needs to focus on using STP approach
which is the acronym of segmentation, targeting and positioning in the market. It is found that
STP is the best approach in order to identify the target market. For the purpose of target market,
it is necessary for Immuno Drinks that they should firstly analyse their goals and objectives so
that they can segment, target and position their market. The explanation of STP approach is
mentioned below:
 Segmentation: It is the first step in order to identify the target market. This step is
concerned with the analysis of population and then segment into similar groups and
market (Seisdedos Barrabés, 2021). In the case of Immuno Drinks, it is found that their
products is available to all ages of people who are able to boost their immune system. It is
very important for the organisation that they should segment into smaller groups which
helps them to easily identify the target market. In the case of Immuno Drinks, they
segmented their market on the basis of demographic and psychographic factors which
includes age, gender, income status, social status, psychology, health awareness, etc.
 Targeting: It is the second step which is performed after segmenting the whole market
into smaller groups. This becomes easy after segmentation. So it is found in the case of
Immuno Drinks that they are covering all types of people in which they include all
generations, income status, etc. It is found that Immuno Drinks is targeted to all age of
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people including children, adults, and old age people. They set their target markets that
they should cover all individuals or families who wants to become healthy.
 Positioning: In this step, Immuno Drinks needs to set a position in the mind of every
individuals so that they can motivate to purchase their immunity booster drinks.
Marketing plan
Marketing plan plays a very important role in the process of success and growth of an
organisation (Burnsed, 2021). This is necessary for new business i.e. Immuno Drinks to
formulate a plan of marketing so that they can promote their business in an effective way. The
activities include in marketing plan is mentioned below:
Marketing objectives
 To attract customers towards their immunity drinks.
 To earn minimum 10% profits in next two years.
 To expand business in 2 more new locations within 3 years.
Market research
It is very important for the organisation that they should do a market research in order to
identify and analyse the needs and wants of customers. In addition to this, in market research
company needs to analyse current market trends, industry sales volume, etc.
Business target market
In the case of Immuno Drinks, it is found that business is targeted to all ages of people
who wants to become healthy and boost their immune system.
Marketing mix
It is defined as the set of tools which helps Immuno Drinks to achieve their strategic
objectives. In this tool, there are 4 Ps are found which helps an organisation to achieve their
target market. Products: Immuno Drinks is providing healthy and immunity booster products to the
consumers which are made up of natural ingredients. Prices: Immuno Drinks is adopting cost leadership pricing strategy in the initial time as
they are new in the market. Place: They are choosing South East, London for their first start up as they identified it is
the best location to start the new business.
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 Promotion: Immuno Drinks is found to be adopted the traditional as well as modern
methods of promoting goods and services,. They are including television, digital
marketing, newspapers, etc.
Marketing budget
It is the budget which is prepared for the purpose of promoting goods and services of
Immuno Drinks.
Particulars Amount (£)
Marketing 10000
Promotional activity 20000
Plant and machinery 120000
Print media 7000
Total 148000
CONCLUSION
It can be concluded that business plan is very important for new business as it helps an
organisation to grow their business. It is analysed that company needs to use PESTEL analysis,
SWOT analysis, identification market, marketing mix, etc. it is also analysed that to open a
business is the best option in order to become successful but it is very risky. This is the reason to
make a business plan.
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REFERENCES:
Books and Journals
Barlow, P., and et.al., 2021. Business plan.
Blackwell, E., 2017. How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Burnsed, A.S., 2021. Footloose Business Plan.
HAN, S. and Kang, E., 2020. The Marketing Strategy to Stimulate Customer's Interest in Art-
Gallery Business Plan. The Journal of Distribution Science, 18(8), pp.47-54.
Matović, I.M., 2020, June. Evolution of the Business Plan in Contemporary Business.
In Proceedings of the 17th International RAIS Conference on Social Sciences and
Humanities (pp. 71-76). Scientia Moralitas Research Institute.
McCready, K. and Molls, E., 2018. Developing a Business Plan for a Library Publishing
Program. Publications, 6(4), p.42.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Sagita, V.V. and Rahayu, W.P., 2019. Developing performance assessment-based authentic
assessment of business plan subject. Jurnal Pendidikan Ekonomi Dan Bisnis
(JPEB), 7(1), pp.31-46.
Seisdedos Barrabés, S., 2021. SON-SOLUTIONS: Business Plan.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
Online
Natural Immune Booster Market Information, 2021. [Online] Available through:
<https://www.marketresearchfuture.com/reports/natural-immune-booster-market-2531>
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