Launching a new venture: Target market, resources, skills, capabilities, and promotional activities

This study focuses on launching a new venture called Velvet Drink, which offers juices and milkshakes with real flavor and low sugar content. It discusses the target market, competitive analysis, tangible and intangible resources, skills and capabilities required, and the types of promotional activities that can be performed.

Unit 28 Launching a new
venture

INTRODUCTION
The present study is based upon new venture Velvet Drink who provide different variety
of juices and milkshakes with real flavor, it also contain less sugar but provide a real taste of
pulp. For that study describe target market by using competitive analysis and describe tangible
and non-tangible resources. Also, study evaluate the skills and capabilities needed and how this
might be formulated and then justify the appropriate promotional activities that successfully
launch a new business. Lastly, it produce a cash budget for pre-launch phase and also propose
the best legal form for the company.
P1 Explaining new venture by determining the specific target market
For Velvet drink, the target market for the company is diabetic people who actually
wants to intake liquid juices and milkshakes. Also, as per the income distribution, company also
target middle and upper class people so that they meet the define aim. The company did not
target the people on the basis of age because the offered product will be consume by each and
every one.
By using Porter generic strategy, quoted firm also gain competitive advantage and there
are three different strategies used by company which are as mention below:
 Cost leadership: By using this strategy, company offer the lowest possible price in order
to make sure that it gain larger market place. In this, Velvet Drink also focus on the
internal process so that customer meet their demand.
 Differentiation: It means the product have its USP such that juices and milkshakes
which contain low sugar that is beneficial for diabetic patients. In current scenario, there
is no company offer the same product that is why, it helps to enhance the large market
share in UK.
 Focus: It means company have to be focused on the specific product which is offered to
the customers (Song and Whang, 2020). Also, to stay competitive within a market, there
is a need to specify the product which in turn lead to sustain the brand image of a firm.
Competitive analysis is essential when a new venture is introduce in market because it
help to determine the major competitor and marketing strategies which in turn assist to
successfully launch the business in new market. For that, Porter five force model is used
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Bargaining power of buyers: There is a low customer base because Velvet Drinks are
few in market and it also offer in low quantity (Grenier, 2019). So, by providing unique taste of
juices and smoothies, company attract range of new customers towards it.
Bargaining power of Suppliers:Suppliers are low in the market because there is a less
competitive pressure on Velvet drink and even the preference of customer is also keep changing.
That is why, there is a need to offer unique taste and best product quality in order to meet the
define aim.
Threat of substitute: It is high in food and beverage market because there are many
alternative available in the market who attract customers by offering low price product. But
quoted firm have its unique taste and due to less content of sugar, it is able to gain high
competitive advantage that assist to enhance the market share.
Competitor rivalry: There is a high competition in market because companies keep
providing innovative product within a market which in turn assist to stay ahead in a competition
(Song and Whang, 2020). Thus, Velvet Drink is also offer its unique taste of juices and
smoothies for diabetic and all types of patient that assist to stay top from others.
Threat of new entry: There is a low threat of new entrant because it require high range
of investment and that is no surety of profit. That is why, by determining the current market
trend, company has to improve the overall profit by met the demand of customers.
P2 Specific tangible and intangible resources
Tangible resources: This is also known as physical resources which is required to
Velvet drink. Such that Physical resources like land, machines for making juices and inventory
further, Human resources like labor who assist in customers-service (Weng, 2020). Next is
financial resources in which cash is required for maintaining financial report for the firm. These
resources help a company to understand the financial standing and the items are easily liquidate
as well as have a set value.
Intangible resources: This is known as non-physical resources which cannot be touched
but plays an important role in the success of a company. Like, intellectual capital in which
copyright and patent are included (Helmold, 2020). Velvet drink also uses this because it
provides an ability to deliver the strategy and maintain long term relationships with customers as
well.
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P3 Proposal for launch new venture
Introduction:
Velvet Drink provides range of juices and milkshakes with natural flavor that attract new
customers. For that the purpose of an event and target audience, marketing tools are as mention
below:
Purpose of event:
The purpose of an event is to gain competitive advantage within a market by offering
natural flavor of juices and milkshakes which contain less sugar in order to provide unique taste
of pulp. Also, this is especially designed for diabetic patient so that they also consume and enjoy
the taste of juices. By introducing this new venture, the level of obesity is decreases and this in
turn attract new customers who are health conscious.
Target audience:
The target people of Velvet Drink is middle and upper class people. Also, company
target diabetic patient and people whose age is in between 14 to 50 so that they also enjoy the
taste of real fruit and flavor.
Publicity:
 For promotion, company uses digital promotional tools in which social media is used that
assist to attract all the youngsters to take an advantage of this opportunity (Ying, Hassan
and Ahmad, 2019).
 Further, company also uses some traditional method of promotion tools such that
newspaper and magazine which are mostly used by range of public.
 Also, Velvet Drink offer special discount to first five customers up to 20% on the
specific juices which also let them attract range of new public.
Programmer for event:
This event is launch in next six months with a normal hours i.e. 9:00 AM to 9:00 PM.
Further, this program is also help to attract range of public in which company interact with
customer in order to analyze the need.
Venue:
For the current venture, the venue is Edinburg Manison house, UK where Velevt Drink
offered the range of product and interact with customers.
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P4 Skills and capabilities required to launch new venture
Skills:
 Marketing skills is required for launching new venture because it contribute to business
success and it allow to determine the perception of customer. Further this will help a firm
to successfully launch a marketing campaign (Haapanen and et.al., 2019). That is why,
Velvet Drink provide training session which assist to enhance the skills among
employees.
 Accounting skills, this assist to evaluate the success and failure of a business and also
present financial report to determine the actual performance. This is also enhance by
getting proper training session.
 Problem solving skills, assist to solve many queries of a customer and employees so that
it creates a positive impression. That is why, Velvet Drink must recruit employees who
posses the same skill.
 IT skills, assist to successfully launch the new venture and uses new advance techniques
for promotional purpose in order to meet the define aim. Also, with this skills, company
determine the competitor and their strategy which may affect the results.
 Teamwork skills assist to meet the define target by using range of opinion and quicker
way. Through teamwork, company perform well and learning opportunities are
developed which can be get from workshop and seminars as well s off-the-job training
methods (Bowen and Johnson, 2019).
 Presentation skills helps to communicate the views with confident manner and with the
help of creativity range of people are attracted. In future when Velvet Drink organize
workshop, then employees share the product/services in better manner so that they draw
attention of customers. It can be raise by workshop and hiring range of employees
belongs to different groups.
Capabilities:
The employees of Velvet have a capability to accept the changes and adding new ones
such that company uses many resources and there is a need to have enough knowledge of each
and every resources which in turn leads a business towards right direction. Such that this can be
added when company uses diversification strategy in which employees learn how to accept the
changes (Khan, 2019). Further, through entrepreneurial bricolage, workers quickly added new
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things into its working area with an objectives of more profit. That is why, Velvet Drink provide
training and development session in order to manage the people for capability development and
keep changing the staffing policies which in turn leads to make employees comfortable within a
working area and keep providing awareness program which in turn leads to meet the define aim
of a company.
P5 Type of promotional activity can be performed
Advertising: It is the first promotional activity which will be performed in the Quoted firm. For
performing the current marketing activity in the Quoted firm variant kind of newspaper and
TV add will be prepared by the firm in the market. Main purpose of choosing the same is
that it will eventually assist in improving the level of brand awareness in the market,
advertisement used to play a very crucial role in educating the large number of the
consumer in the market as with the assist of the same better number of the consumer can be
touch as compare to another kind of promotional activity. Another reason for using this sort
of promotional activity is that it assist the firm in variantiating the product of firm with
competitor also it used to assist in promoting variant benefit of product.
Advantage
Advertising assist the firm in attracting the eye of the customer by the use of attractive tag line.
Also it assist in attracting the eye of the better number of the customer in the market as
compare to the another activity.
Disadvantages
Advertisement is the kind of the promotional tool in the Quoted firm which used to create the
situation where it cost very high for the firm to advertise the variant product of the firm in
front of the other in the market. So it may increase the cost of the firm (Grenier, 2019).
Personal selling: Personal selling is another important kind of the promotional activity
which will performed in the Quoted firm. It is the kind of the personal selling approach in
which potential client used to meet to the consumer directly and used to perform the activity
of selling in the market. Reason behind choosing this sort of promotional activity is that it is
the best way through which need of the customer can be understand and another reason of
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doing the same is that personal selling will assist in targeting the customer base which has
been selected for the purpose of carrying out variant operation at the marketplace..
Advantage
Personal selling in the Quoted firm will assist the firm in Understanding the need and the
preference of the customer in better way as face to face interaction will assist the individual
in understanding the variant need and preference of the customer in the better way in the
Quoted firm (Okoye and et.al., 2019). Also it will assist in improving the level of
explanation of the product to the consumer in better way.
Disadvantage
At the same time personal selling generally require a good amount of the resources to
conduct the promotional activity in the Quoted firm. Also, this sort of the promotional
activity takes time to give the impact as compare to the other sort of promotional activity in
general.
Arguments for and against the promotional activity plan
Primary Market research, Primary market research will assist the firm in getting good sort
of in depth knowledge about the need and preference of the consumer but at the same it is
very difficult to understand how the variant information which is collected with the assist of
primary data collection tool has been collected accurately and there is no Unethical activity
P6 Gantt Chart
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Task
Mode Task Name Duration Start Finish Predecessors
1 Business Initiation 90 days Tue 6/2/20 Mon 10/5/20
1.1 Set up a team and
workplace 30 days Tue 6/2/20 Mon 7/13/20
1.2 Assign roles and
responsibilities 15 days Tue 7/14/20 Mon 8/3/20 2
1.3 Market Research 15 days Tue 8/4/20 Mon 8/24/20 3
1.4 Stakeholder
identification 30 days Tue 8/25/20 Mon 10/5/20 4
2 Business Planning 80 days Tue 10/6/20 Mon 1/25/21
2.1 Budget formulation 15 days Tue 10/6/20 Mon 10/26/20 5
2.2 Develop Timeline 10 days Tue 10/27/20 Mon 11/9/20 7
2.3 Human resource
Planning 25 days Tue 11/10/20 Mon 12/14/20 8
2.4 Selecting target
customer base 30 days Tue 12/15/20 Mon 1/25/21 9
3 Businesss
Implementation 130 days Tue 1/26/21 Mon 7/26/21
3.1 Product Launching 60 days Tue 1/26/21 Mon 4/19/21 10
3.2 Opening ceremony 10 days Tue 4/20/21 Mon 5/3/21 12
3.3 Marketing the product 30 days Tue 5/4/21 Mon 6/14/21 13
3.4 organizing Branding
event 30 days Tue 6/15/21 Mon 7/26/21 14
4 Business Monitoring 30 days Tue 7/27/21 Mon 9/6/21
4.1 Evaluating product
performance 10 days Tue 7/27/21 Mon 8/9/21 15
4.2 Evaluating customer
feedback 10 days Tue 8/10/21 Mon 8/23/21 17
4.3 Implementing Changes 10 days Tue 8/24/21 Mon 9/6/21 18
7

In the current Gant Chart Business initiation and Business Planning are the part of post launch
activity, at the same time Business implementation and Business monitoring is part of post
launch activity
8

P7 Budget
Particulars January
Februa
ry
Mar
ch
Apr
il May
Jun
e July
Aug
ust
Sept
emb
er
Oct
ober
Nov
emb
er
Dec
emb
er
Cash inflows
Opening cash inflow 5000 7500
113
16
152
48.5
6
192
98.1
808
234
65.3
277
50.2
878
073
6
321
53.4
426
431
616
366
74.9
865
388
654
413
15.0
603
141
969
460
73.7
185
268
172
509
50.9
241
839
434
Sales revenue 12000 12240
124
84.8
127
34
129
89
132
49
135
13.9
490
311
68
137
84.2
280
117
914
140
60
143
41
146
28
149
20
Other income 2200 2200
220
0
220
0
220
0
220
0
220
0
220
0
220
0
220
0
220
0
220
0
Total cash inflows 19200 21940
260
00.8
301
83.0
56
344
87.3
667
2
389
14.2
696
384
434
64.2
368
385
28
481
37.6
706
549
53
529
34.8
991
108
926
578
56.1
711
376
646
629
01.6
515
667
543
680
71.4
158
846
792
Cash outflows
Material 3000 1836
187
2.72
191
0.17
44
194
8.37
788
8
198
7.34
544
576
202
7.09
235
467
52
206
7.63
420
176
87
210
8.98
688
580
41
215
1.16
662
352
02
219
4.18
995
599
06
223
8.07
375
511
04
9

Production 2500 2500
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
Other expenses
(Forming a team and
training of new
staff) 2200 2288
238
0
247
5
257
4
267
7
278
3.70
184
069
12
289
5
301
1
313
1
325
7
338
7
Labor 4000 4000
400
0
400
0
400
0
400
0
400
0
400
0
400
0
400
0
400
0
400
0
Total cash outflows 11700 10624
107
52.2
4
108
84.8
752
110
22.0
667
2
111
63.9
818
310
4
113
10.7
941
953
664
114
62.6
841
160
876
116
19.8
387
966
957
117
82.4
526
108
474
119
50.7
273
828
109
121
24.8
726
790
035
Cash deficit /
surplus or closing
cash balance 7500 11316
152
49
192
98
234
65
277
50
321
53.4
426
431
616
366
75
413
15
460
74
509
51
559
47
Assumption
Labor cost of the nation will remain same throughout the year, as it is very difficult to assume
the future labor rate in general.
Material rate in the UK will remain the constant through out the year.
P 8. Examining the legal form of ventures. Sole trader: This is considered to be as a business firm which is owned by the single
owner. It is one of the most easiest way to effectively set up a business. It tends to offer
low degree of protection from the personal liability (Sole trader, 2020). A sole trader is
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not considered to be as a legal entity and is personally responsible for the profits and
losses of the organization. Partnership: This is one of the key arrangement which has been established by the two or
more individuals. In partnership company the members of the company tends to
significantly share the profits and losses up to the amount of prescribed share of the
company. It is useful form of the business because it is useful in sharing the risk and
taking prompt decision. Such type of company are easy to form and are flexible. Limited liability company: This is a kind of business structure where the owners of the
company are personally liable for the debts or liabilities within the organization (Lee and
Cho, 2020). It is useful in providing the greater liability protection to the partners of the
company. The liability of the shareholders of the company are limited.
 Corporations: This is one of the legal entity and has been created by the shareholders,
stockholders and individuals (Apostolopoulos, Newbery and Gkartzios, 2019). The
corporation tends to have all the legal rights of the individual. The corporations can file
their own return on tax and are subjected to government regulations. Owner of the
company are liable for the profits and losses of the company.
The Velvet drink company will form a sole trader company. The key reasons for the
formation of the legal structure mainly includes:
 The key significant reason for the development of the sole trader is that, the sole trader
business is easy to form and is highly flexible.
 The owner of the company tends to have full control over the operations of the company.
 The owner is liable for all the profits and losses of the company.
 The sole trader company has maximum degree of privacy and there is no need to register
the business at the companies house.
 This sole trader business results in less paperwork and simplified ownership of the
business.
CONCLUSION
From the conducted study it has been concluded that, Physical resources like land,
machines for making juices and inventory, human resource are they key tangible resources used
in business. Intangible resources like intellectual capital in which copyright and patent are
included. Large number of alternatives for beverages are available within the market which is
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considered to be as the biggest threat to the business. Personal selling, social media platforms
and advertisements are use as the key promotional tool. The target people of Velvet Drink is
middle and upper class people. The Velvet drink company will form a sole trader company.
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REFERENCES
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