Starting a Business and Fundamentals of Marketing

This study material covers the business plan of starting an Eco-catering business in England, analyzing internal and external forces of the restaurant industry, level of competition, STP business tool, and marketing plan using the Marketing Mix model.

Starting a Business and
Fundamentals of Marketing

Table of Contents
Section -1....................................................................................................................................................3
Introduction:................................................................................................................................................3
Section-2.....................................................................................................................................................3
Analyzing the internal as well as external forces of restaurant industry:.................................................3
Analyzing the level of competition in market:.........................................................................................5
Examining the industry analysis of new business:...................................................................................5
Identifying the target market by doing STP business tool:......................................................................7
Analyzing the marketing plan of new business:.......................................................................................8
Conclusion:.................................................................................................................................................9
References...................................................................................................................................................9

Section -1
Introduction:
The business plan can be considered as strategy which can support entrepreneur in
implementing new business idea in most professional as well as effective manner. In order to
start a new business, I have come up with a plan of starting Eco- catering business in the local
streets of England. In this, I will provide customers the vegetable dishes and salads. The
vegetable which I will use in making dishes will be organically raised vegetables without using
any fertilizers and pesticides. This will be beneficial for the customer’s health as well as their
immunity. Due to pandemic situation, many people have raised their demand about eating
organic vegetables in order to make their immunity more powerful. Hence, this situation has
given me an idea about starting this new business to fulfill their demands and wants. I have prior
experience of cooking vegetable dishes at five star restaurants where I have learned new as well
innovative vegetable recipes. So this experience will support me in serving tastier dishes to
customers. Moreover, the location which I will choose for opening new Eco catering shop will
be in local streets of England as I can attract more customers because of high traffic of people. In

relation to this, I will also target customers by taking use of social media platforms which will
allow me to post creative and attractive pictures of my dishes.
Section-2
Analyzing the internal as well as external forces of restaurant industry:
While starting a new business, it is first better to analyze the external market forces which
can impact the future operation of business (Baines and et.la., (2021).
. In order to conduct market analysis, it will be beneficial for the owner to adopt PESTLE
business model. This business tool will support entrepreneur to identify as well as gain insight
about the external forces that can put impact on its business operations in future. The following
explanation shows the important elements of this model:
Political force:
In context to Food industry, the stricter government measures regarding food storage
regulations as well as maintaining proper hygiene in kitchen can support Eco Catering business
to follow proper hygienic rules and laws. In relation to this, the promotion of healthy food eating
such as vegetables by UK government can help business owner in gaining advantage in the
market (Davis and et.al.,(2018).
Economic force:
The increase in the disposable income of UK citizens is the positive sign for the owner to
start a new eco catering business in order to gain higher profits. However, the high labor cost can
be challenging for the owner as this may lead to giving up some profit share.
Social force:
The pandemic has completely transformed the dietary habits of people in the UK. Now,
the people are more attracted towards eating healthy food items such as vegetable salads or
dishes in order to improve their immunity for virus. Thus, this situation can be golden chance for
the owner for drawing attention of large number of customers.

Technological force:
The recent technological innovation can assist the entrepreneur in taking best use of these
technologies for improving business operations. The introduction of social media platforms as
well as online delivery applications can provide opportunity for owner to effective use them in
increasing customer base (Filimonau, Nghiem, & Wang, (2021).
Legal force:
The stricter safety regulation in UK related to food storage system, right temperature as
well as cleaning and food transportation allows the owner to follow these food safety laws
appropriately in order to gain positive image in the food industry as well as among customers.
Environmental force:
The new Eco Catering business is the sustainable business option that poses very less
harm to the Mother Nature. The use of organic vegetables can be beneficial for the environment
as this not include usage of fertilizers which can harm the land fertility. Hence, this new business
idea will cause no harm to the nature (de la Lastra, Martín-Alcázar, & Sánchez-Gardey, (2019).
Analyzing the level of competition in market:
The level of competition in restaurant industry of UK is very high as there are large
number of competitors who already provides vegan food items to its customers at the effective
prices. In relation to this, the competitors also provide to its customers the wide range of vegan
food items that looks attractive on plate. For instance, the Vegan Cuisine is one of the most
famous restaurants in London, UK which provides exclusive range of vegan food items such as
vegetable cuisines, salads as well as vegetable drinks. In relation to this, the Vegan Cuisine
restaurant adopts low pricing strategy in order to attract large number of customers in market.
Moreover, the restaurant has friendly staff members who provide optimum services to customers.
The restaurant also have their own well-built website which represents high quality images of the
vegetable dishes they offer as well as also provides the online delivering facility to their
customers. Furthermore, this restaurant adopts social media marketing strategy in order to
promote their mission to large number of customers (Chen and et.al., (2021). This technique has
supported the restaurant to understand the market trends as well as purchasing behavior of

customers in effective manner. The other main competitor that can impact future operations of
new Eco catering business is Amrutha Lounge which is based in London, UK. This restaurant
provides plant based classics as well as innovative vegetable dishes to the customers. In relation
to this, the restaurant puts its emphasis on making food with organic ingredients. Moreover, the
restaurant also adopts the competitive pricing strategy in order to draw attention of large number
of customers. Furthermore, the firm also has social media presence where it posts attractive as
well as immersive content and images in order to attract customers to visit their restaurant at
least once.
Examining the industry analysis of new business:
In order to analyze the forces of external market conditions as well as forces Porter five
force model is taken into consideration. This business model will support the owner in
understanding level of competition in market as well as making strategies according to market
changes. The following are the elements of this business model that can support the entrepreneur
in identifying as well as analyzing the power of stakeholders in most effective manner
( Kiatkawsin, & Han, (2019).
Competitors Rivalry:
The level of market competition in food and beverage industry is high as there is large
number of competitors in the market. In relation to this, the competitors adopt aggressive pricing
strategy as well as high impact marketing strategies in order to draw attention of large number of
people in effective manner.
Supplier power:
The power of supplier in Food and Beverage industry is considered to be lower as there
are large number of suppliers who sells organic vegetables in competent prices. Hence, the
switching cost for the new Eco Catering business will be lower in that case. This assists the
business in choosing the most quality as well as cost effective suppliers in market.
Buyer power:
In the food as well as beverage industry the bargaining power of customers is considered
to be high as there are large numbers of competitors present in the restaurant industry. This

allows the customers to demand good quality food items at the most reasonable price structure.
Hence, it can be concluded that the buyer enjoys great power in food industry (Shah, & Sunil
(2021).
Threat of Substitution:
The threat of substitute is high in food as well as beverage industry as there are many
substitutes available in the market. For example, if the restaurant charges high prices, than the
customer can find new alternative by making food at their own kitchen. This can pose the high
risk in front of the new business.
Threat of new entry:
The chances of new entrants in food related business is high as it needs less investment as
well as lower human resource requirement as compared to other business. This can pose a risk
for the Eco Catering business as this may lead to segmentation of customers which directly
results in lower profit as well as lesser market share (Ma, Webb, & Schwartz (2021).
Identifying the target market by doing STP business tool:
The Segmentation, targeting as well as positioning marketing tool support the company
in formulating business growth strategy by segmenting the customers based on different needs or
different ages. After segmentation, the new step is targeting the customers with specific needs as
well as wants. Moreover, the other crucial marketing strategy is positioning of products or
services in the manner which draws the attention of maximum number of customers. In context
to Eco Catering business, the STP marketing tool will support the restaurant in targeting
customers in the most profitable manner. The following points explain the STP analysis of new
business in detail:
Segmentation:
The Eco Catering business will segment their customers by considering the age group as
well as lifestyle of customers. In relation to this, the business will segment the market on the
basis of demands as well as needs of customers. The Eco Catering restaurant will target people
within the age group of 30-60 and will target high class customers for their service (Jobber, &
Ellis-Chadwick (2019).

Targeting:
The business will target its new customers on the basis of lifestyle as well as age group of
customers. The Eco Catering business will target middle and old aged customers while
performing marketing activities. This is because the middle and old age people are more
concerned about their health and fitness. In relation to this, the new business will target health
oriented individuals by using social media platforms
Positioning:
The Eco Catering business will operate from the physical store which will be based in the
busy street of England, UK. This will allow the restaurant in gaining attention of large number of
customers. In relation to this, the company will also operate from its online website by taking
online orders from customers. The firm will also take help of social media platforms such as
Facebook, Instagram and many more in order to post creative content regarding their vegetable
dishes (Jayaprakash, Ituarte, & Partanen, (2019)..
Analyzing the marketing plan of new business:
The Eco Catering business will formulate its marketing plan with the support of
Marketing Mix model. This business model will help the restaurant making accurate and
effective marketing plan with the purpose of gaining large number of attention from customers in
the market. The following are the four P’s of Eco Catering business are:
Product:
The business will provide to its customers fresh as well as quality vegetable dishes and
vegetable salads. The vegetable used will be 100% organic in nature. In relation to this, the
restaurant will also provide vegetable soup to the customers.
Price:
The business will initially adopt low pricing strategy in order to gain attention of
maximum number of customers. In addition to this, the business will also adopt the competitors
pricing strategy for retaining customers in market.

Place:
The new restaurant will operate from the physical store as well as from online store also.
This will support company in making higher customer base by using both the channels in
effective manner.
Promotion:
The company will adopt digital marketing techniques in order to promote their vegetable
food items to the public. The use of social media platform is cost effective method which will
enable the restaurant in drawing attention of large number of customers.
Conclusion:
It has been analyzed from the above report that business planning is critical in order to
give strategic direction for the achievement of goals and objective of the company. This report
has included the external market analyses of new business. In relation to this, the report has also
covered the competition analysis as well as industry evaluation of new restaurant. Moreover, the
report has evaluated that STP model and marketing mix model can support business in making
effective marketing strategies.

References
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Jayaprakash, S., Ituarte, I. F., & Partanen, J. (2019). Prosumer-driven 3D food printing: Role of
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