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

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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