Launching a New Venture: Food on Wheels

This document discusses the process of launching a new venture named Food on Wheels, which is a food truck that will be launched in London. It covers topics such as target markets, competitive analysis, and the specific physical and non-physical resources required for the launch. The document also includes information on the proposal of the new product, skills and qualities required, promotional actions, and advertising plan.

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................3
P2: Determine specific physical & non-physical resources that would be require for the launch
of a new venture ...................................................................................................................5
TASK 2............................................................................................................................................6
P3. Produce a credible proposal of the new product..............................................................6
P4 Skills and Qualities required in order to ensure final proposal as a reality.......................8
TASK 3............................................................................................................................................9
P5 Different promotional action adopted by a entrepreneur while launching new venture...9
P6: Advertising plan related to pre launch & launching activities.......................................10
TASK 4..........................................................................................................................................11
P7 Monthly cash budget for the pre-launch phase...............................................................11
..............................................................................................................................................12
..............................................................................................................................................13
P8: Applicable legal form.....................................................................................................14
CONCLUSION..............................................................................................................................15
REFERNCES.................................................................................................................................16

INTRODUCTION
Launching a new venture is one of the most important activities that have to be
acknowledged by a individual who has a new idea to be launched in society. There is a need to
consider some of the important aspects that are most crucial in the process of launching a new
venture. There are some activities that have to be understood in detail in order to develop skills
that are requited in the process of launching a new venture. Present report is related with
launching of a new venture named as “Food on wheels” which is a food truck that will be
launched in London (Martin, Javalgi, and Ciravegna, 2018). Variety of food products will
include burgers, sandwiches, pasta, rolls, chips etc. the menu of food truck will have a focus on
all type of fast food variants but at same time it will have a special section that will consist of
options for people who are having preference for some healthy food items. There will be special
safety measures that have been taken to have extra precautions from COVID-19 conditions
prevailing in the external environment. Present report is discussing about launching of new
venture and their target market. There is also information related to different tangible and
intangible resources that will be contributing in the process of establishing the business.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
“Food on wheels” is willing to launch in London, UK. This brand is based on a
innovative idea that will consist of both fast food options and a healthy variants. This new
venture is based on fulfilment of the requirement of street food for customers. There is a plan
that is based on offering diverse products in healthy and fast food range. There is discussion of
target market and external forces that are part of the external market where this brand will be
catering.
Target market: Target market is regarded as category that is segmented based on lifestyle,
income, taste, preferences of people (Mai, Zhang and Wang, 2019). In case of “” there will be
target market that consist of millennials generation who are fond of variety in street food options.
Students will be the major target market for this food outlet. There are some characteristics of
target market as mentioned below:

Psycho-graphic factor: The market is divided based on purchasing power, consumption patterns
and the lifestyle that people have adopted in present times. “Food on wheels” will having their
target market as middle and high income group consumers.
Behavioural factor: The market is divided according to the behavioural segment of people
where market is divided according to the preferences of people. Such as nowadays people have
developed preference for healthy food categories also, this has lead to a special segment that
will be having all varieties of salads and soups for those who are more health conscious.
Competitive analysis:
It is a analysis that is helpful in formulation of relationship by analysing various business
forces that are part of eternal environment and formation of strategies that can help in dealing
with high competitive parity:
Illustration 1: Major five forces of Porters five forces model

Bargaining power of supplier: “Food on wheels”” is a new brand and they require
suppliers who can supply them raw materials at reasonable prices so that they can maintain their
profit margins. So, it can be said that there is high bargaining power of buyers as in the initial
stages “” need to make long terms association with their suppliers (Stayton and Mangematin,
2019).
Bargaining power of buyer:Already there are many food trucks that are existing in
different parts of London. So, there is a need to deal with the situation of high bargaining power
of buyers as they have large variety of options and they can easily switch as they have zero
switching cost.
Threat of substitution:There is a high threat of substitution as any new food start up can
easily come & replace “ “Food on wheels”” so there is a need to set up a competitive advantage
so that strategically they can deal with the high substitution threat.
Competitive rivalry: There is presence of very high competitive rivalry in the food
industry of London as already established brands are leading to high threat of competitors for
“Food on wheels” (Kloepfer, and Castrogiovanni, 2018)S. There is requirement to develop a
competitive advantage in order to survive in the market for a longer duration of time.
Threat of new entrant: Threat of new entries is very high for “Food on wheels” because
of new opportunities in the reasonable food segment that is not present in hotels and restaurants.
For this there is a very high threat of new entrants in the street food market.
P2: Determine specific physical & non-physical resources that would be require for the launch of
a new venture
Tangible resources:
There are some tangible resources that are very important and includes infrastructure, human
resources etc. as mentioned below:
 Financial resources: This is one of most crucial resources as without availability of
adequate capital cannot be started.

 Physical resource: there must be adequate availability of premises, raw material &
installation of necessary machinery that is required for the purpose of installation in order
to perform all the routine activities.
 Human resources: These resources includes number of individuals who are required
according to staff requirement in “Food on wheels”. There is need of 2 chefs and 2
waiters according to initials stages and further hiring will be done based on growth of
business.
 Essential tools & equipments: There are some tools that are essentially required in order
to ensure that all activities are starting and taking place without nay barriers such as
requirement of utensils, cooking equipments, other electronic gadgets like microwave,
OTG etc.
Intangible resources: These are the resources that includes brand value, goodwill, external
factors, customer satisfaction level that cannot be touched. All these posses a very crucial impact
on the functioning of organisation (Hale, , 2018). Other intangible resources include tangible
resources like goodwill, brand value, working environment, surroundings that are required
essentially in order to ensure smooth functioning of business.
TASK 2
P3. Produce a credible proposal of the new product
In every organisation there is launching of a business venture it is very important to design the
proposal of business and some of elements are mentioned below:
Executive summary: “Food on wheels” will be establishing as a moving food venture streets of
London. There are high preventive measures that will be adopted in order to ensure safety
measures from the COVID-19 virus. Apart from this presently the start up will be based on
fulfilling the fast food requirements of people with some healthy options.

Company description: “Food on wheels” is based on serving fast food options to their target
segment of customers. Main aim is to ensure that both the segment of society health conscious
ones and those who prefer taste are catered through this brand (Cannice, 2018).
Market analysis: It is very necessary to analyse the external markets before starting a new
venture as it consist of both opportunities & threats. In order to deal with threats there is a need
to pre form certain strategies. Such as “Food on Wheels” will be making a depth analysis by
using frameworks like Porters five forces analysis and PESTLE analysis. Along with it there will
be use of SWOT analysis in order to make a detailed assessment of external opportunities by
analysis internal strength & weakness.
Financial projections: It is very important to make a analysis of the finances that are required to
fulfil the necessary requirement in initial stages (Bridge and Hegarty, 2013). Such as there are
many different sources like bank loans, crowdfund, angel investors that can be identified to avail
required amount of finances. Total funds that are require in present scenario includes € 30,000.
Benchmarking: It is related to comparison of performance according to some set standards. Such
as there is a specific sales figure for first six months that has been established by sole owner and
after a period of six months there will be monitoring where that amount of sales has been made
or not (Kuratko, and Hornsby, 2017).
Gantt chart: It is a tool that is used for proper allocation of limited time period according to
different activities that have to be performed in launching a business venture. Below discussed is
the the activities that have been divide according to available time period that is staring from 10th
may 2020 and ending on 10th July 2020.

P4 Skills and Qualities required in order to ensure final proposal as a reality
It can be said that there are certain qualities and skills that are specifically required to establishes
a new venture in marker. Necessary skills & capabilities are mentioned below:
Skills Requirement:
 Marketing skills: In case of launching a new venture it is very critical that there must be a
detailed analysis of the prospective market segment as the business has to be established
in that particular market. For this it becomes very for food on wheels to have a competent
marketing team so that in the initial stages there can be some creative marketing skills
that can be used in order to attract maximum customers. For this there will be a
marketing campaign where a online concert will be conducted to make people participate
by providing them attractive coupons on participation and after that it will lead to one
time trying of a products (Mullins 2017).
 Time management skills: There is a need to make the available limited period of time in
maximum use of productive activities. Such as just before the per launching there are lot
of activities and one of most crucial is pre marketing activities that have to be conducted
properly to ensure that there is optimum utilisation of limited period of time.
Illustration 2: Gantt chart for performing various activities related to launching of new venture

Capabilities:
 Team development: There is a need to make sure by the leader or the sole owner in
present case to make a team that is having competent individuals who are willing to
contribute towards achievement of higher printability that is major aim of organisation.
For this there will be use of some motivation techniques like monetary compensation &
rewards to make individuals work according to the specific requirements of leader.
Above mentioned are the capabilities and skills that can have to be utilise in a optimum
manner by “Food on wheels” so that they are able to achieve their laid down objectives.
TASK 3
P5 Different promotional action adopted by a entrepreneur while launching new venture
While a new business is being introduced it becomes very important to do so that
marketing activities in order to promote the brand. For this “Food on wheels” will be using
certain available promotional channels that are mentioned below: Social media campaign: There will be a launching offers through a social media
campaign that will be based on contest so that maximum number of people can
participate. It will be on two major applications that is Facebook and Instagram. Pricing strategies: There will be use of a pricing strategy that is based on priec
penetration technique where at initial stages there will be lower priced products that will
be offered to customers. “Food on wheels” will be having lower profitability margins in
initial some period of time after which it will be increased if there is growth of brand
according to set prospectives (Gioelli, 2014).
 Web based: web based showcasing is a technique that can be used by marketing
managers of a brand where there can be direct interaction of customers that can take
place through chat box window and applications. The sole owner of “Food on wheels”
will be using these application for the purpose of attracting maximum number of
customers by having personal interaction with them that will help them in experiencing a
customised approach towards identification of the preferences of their customers.

From the above made analysis it can be said that most effective strategy and suitable is
according to limited availability of financial resources for “Food on wheels” is using social
media applications that can lead to effective and optimum use of available financial resources
and making large number of people aware and informed about the new start up.
P6: Advertising plan related to pre launch & launching activities
It can be said that marketing is one of the most crucial activities that is part of per launch
functions of a organisation. In context of “Food on wheels” these activities are mentioned below:
Pre-launch: According to this section there are some important activities that have to be
certain important activities that have to be performed in order to ensure that there can be
launching of the venture with required amount of planning and preparation. In case of Food on
wheels” there is a market survey that will be conducted because of the present situation of
COVID-19 the survey will be conducted online only as there will be no social interaction that is
take place. For this there will be a questionnaire that will consist of only basic five questions
related to preferences of food options that will be offered to prospective customers in order to
understand their preferences an choices. All this is going to help them in future course of
deciding the menu (Toohey, 2020). It will also be helpful in creation of awareness among the
target customers by making them believe that their presence will actually be implemented by the
organisation and will be given adequate importance.
Further, there will be some attractive advertisement that will be launched on YouTube
and snap chat that will be ranging from 30 seconds to a duration of one minute only. It will be
uploaded on channel that will be created by “Food on wheels”. Another marketing strategy will
be approaching various food bloggers who will help in promotion of the brand on their
respective channels and blogs. It will also be a great tool that can help in generation of more
awareness for target market.
Launch: In this phase there will be final launch of the brand in the target market that is
after making all the preparations and arrangements for the purpose of launching finally the Brand
will be launched in the target market that is in London. As soon as “Food on wheels” be
launched there will be more attractive offers that will be sued in order to attract maximum
customer. Such as first 50 customers will be offered a 50% discount flat off on their total billing.
After that next 100 will get 30percent flat off and then next 200 will get 10percent flat off
(Gordon, Kayseas and Moroz, 2017). These will be some of the attractive offers to make people

art least one time try the brand and further, that if they will like the taste and the quality offered
then they might make repeated purchase (Wall and Minocha, 2015). Also, one satisfied
customers will help in attracting 10 more new customers with help of positive mouth publicity
which is also a very powerful tool that can be used by “Food on wheels” as their marketing &
promotion tool.
Brand development: This is one of the most essential activities where “Food on wheels”
will be making efforts towards their brand image. There will be some tools used in order to
create a effective image for their target segment of customers. Such as make sure to take
feedback after their visit in order to understand the improvement areas that have to be focussed
on in order to achieve a more higher level of satisfaction (Wonglimpiyarat, 2016). These are
some of unique strategies that can help in actually building up of a positive and unique image by
making use of the differentiation Strategy where the focus is in having a loyal customer base.
TASK 4
P7 Monthly cash budget for the pre-launch phase
It is very important to make a cash budget in order to ensure that all the activities are
taking place without any barriers or hurdles related to financial requirements. There has to be
proper allocation of available financial resources in such a manner so that there can be optimum
utilisation of these available funds (Salamzadeh, and Kirby, 2017). There are many different
types of associated cost that have to be necessarily incurred and it includes operating cost,
marketing cost, promotional cost, capital requirements and many such type of related cost. The
cash budget of “Food on wheels” is mentioned below:
Pre launch budget:

Post launch cash budget:
Particulars
Sources of Finance
120000
loan from bank 700000
Loan from Family 50000
Loan from Friend 85000
325000
Pre-
opening
startup
cost
Expenses for
technology 25000
Advertising 35000
P re la u n c h c a s h b u d g e t
P a rti c u la rs Ja n u a ry F e b ru a ry Ma rc h A p ril Ma y Ju n e Ju ly A u g u s t S e p te m b e rO c tob e r N ov e m b e r D e c e m b e r
C a s h re c e ip ts
L oa n from b a n k 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
In v e s tm e n t 5 5 0 0 0 0 0 0 0 0 0 0 0 0 0
C a s h s a le s 5 0 0 0 8 0 0 0 1 2 0 0 0 8 0 0 0 9 0 0 0 1 5 0 0 0 1 7 0 0 0 1 9 0 0 0 2 1 5 0 0 2 2 0 0 0 1 8 5 0 0 2 2 0 0 0
T ota l c a s h re c e ip ts 6 0 5 0 0 8 0 0 0 1 2 0 0 0 8 0 0 0 9 0 0 0 1 5 0 0 0 1 7 0 0 0 1 9 0 0 0 2 1 5 0 0 2 2 0 0 0 1 8 5 0 0 2 2 0 0 0
C a s h p a y m e n ts
F ix e d c os t
In te re s t on loa n 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0
In s u ra n c e 1 5 0 0 0 0 1 5 0 0 0 0 0 1 5 0 0 0 0 0
R e n t 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0
S a la ry to e m p loy e e s 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0
V a ria b le c os t
Ma te ria l c os t 1 8 0 0 8 0 0 4 5 0 9 0 0 5 0 0 6 5 0 7 0 0 6 1 0 8 5 2 5 4 0 8 0 0 4 5 0
L a b or c os t 2 0 0 8 0 7 4 8 0 9 0 8 5 7 8 5 0 5 5 6 5 8 0 9 0
A d v e rti s in g c os t 4 5 0 9 0 4 0 8 0 9 0 1 5 2 0 2 5 3 0 4 5 4 0 6 0
C os t of b orrowin g 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
T ota l c a s h p a y m e n t 1 7 9 5 0 4 9 7 0 4 5 6 4 5 0 6 0 6 1 8 0 4 7 5 0 4 7 9 8 4 6 8 5 6 4 3 7 4 6 5 0 4 9 2 0 4 6 0 0
Ne t c a s h s u rp lu s /d e fic ie t ( A-B ) 4 2 5 5 0 3 0 3 0 7 4 3 6 2 9 4 0 2 8 2 0 1 0 2 5 0 1 2 2 0 2 1 4 3 1 5 1 5 0 6 3 1 7 3 5 0 1 3 5 8 0 1 7 4 0 0

Promotion 11500
Employee expenses 37000
108500
From the above mentioned cash budget it can be observed that the decision of
establishing a new venture is suitable as comparison of inflow & outflow of cash explains that
the situation is appropriate to launch the venture.

P8: Applicable legal form
A individual person is to make a decision of new venture in the market for which there is
requirement to adopt a particular legal structure (Stayton and Mangematin, 2019). There are
different types of legal structure that consist of partnership, sole proprietorship, co-operatives. In
present context “Food on wheels” is based on a sole proprietorship legal structure:
sole proprietorship: It is a type of organisation structure that is owned by a sole trader. The
business is operated by a single individual. SWOT analysis is discussed below:
SWOT analysis:
Strength weakness
 Freedom to take all decisions of
businesses
 Make timely changes and innovations
(Rugman and Collionson, 2012).
 Liability is unlimited in situations of
loss and have to be born by sole owner
Opportunities Threats
 It has prospects of innovation and
further expansion if achieved success
 There is a very high threat of
substitution from already established
food brands.
 It is very important to make people
aware of new brand and trust about its
authenticity.
Above discussed are the different strength, weakness, opportunity and threats that are part
of external and Internal environment of “Food on wheels” that have to be dealt strategically so
that they can make use of opportunities by utilising their strengths and reduce the negative
impact of threats.

CONCLUSION
Based on above made discussions it can be said that launching of a new venture requires
lot of research and preparations along with detailed planning that has to be undergone by every
organisation. There are many tools such as Porters five forces that can be used for the purpose of
making a competitive analysis and understand the threat of external forces. Along with this there
has to be a detailed research on pre and post cash flow requirements that have to be understood
according to various activities that have to be undertaken by the management before and after
launching of the venture. Further there is a particular legal structure that has to be adopted by a
organisation according to its suitability and according to that there must be further planning of
business activities.

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