Detailed Report: Launching BioChem, a New Venture in the UK

This report details the launch of BioChem, a new venture focused on organic beauty products in the UK. It begins with an introduction to the business concept and then delves into market analysis, identifying target markets and conducting competitive analysis. The report outlines the tangible and intangible resources required, including physical, human, and technological resources, alongside customer relationships and software. A comprehensive proposal is presented, including a problem overview, product/service details, time and pricing plans, and competition analysis. The report also assesses the skills and capabilities needed for a successful launch, such as managerial, decision-making, and leadership skills, as well as risk-taking and research abilities. Furthermore, the report explores promotional activities and channels, justifying their selection, and develops a promotional activity plan for both launch and pre-launch phases. A monthly cash budget for the pre-launch and initial launch periods is included. Finally, the report suggests an appropriate legal form for the venture, providing a detailed and comprehensive overview of the critical aspects of launching a new business venture.

Launching a new venture

Table of Contents
INTRODUCTION .....................................................................................................................3
TASK 1......................................................................................................................................3
Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................3
Determine specific tangible and intangible resources that would be required for the launch
of a new venture.....................................................................................................................4
Produce a credible proposal to launch a new venture............................................................6
TASK 2......................................................................................................................................8
Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed............................................................................................................8
TASK 3......................................................................................................................................9
Explain different promotional activities and channels that will support the launch and
justify their choice..................................................................................................................9
Develop an appropriate promotional activity plan for both launch and pre-launch.............10
TASK 4....................................................................................................................................11
Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch...................................................................................11
Covered in spreadsheet.........................................................................................................11
Suggest an appropriate legal form for the venture stating why it has been..........................11
CONCLUSION .......................................................................................................................12
REFERENCES ........................................................................................................................14

INTRODUCTION
The business ideas which can be put so as to initiate a new business are termed as
starting a new venture. This can be made possible only when a new idea is emerged so that
can be developed in a proper manner and customers can be attracted. The management is
required to focus on research so as to determine market need and then introduce innovation in
a new product accordingly. As the market research is important so as to recognise market and
customer’s needs and gives path to product innovation. This report is based on a new venture
of ‘BioChem’, which a new venture of organic beauty products and the business is starting in
UK. Under this report various aspects is taken which are required to launch a new venture.
(Aragon-Mendoza, del Val, and Roig-Dobón, 2016)
TASK 1
Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
Venture idea:
BioChem is a new venture which is incorporated in London, UK and the main product
stream of the venture is chemical free bio natural sunscreens, facial creams and nigh creams
and many more. Company is going to start their business in various areas of UK and they are
having favourable response from public. With the help of market research the company
analysed that market demand of natural products are high so decision is taken for this
venture. After researching their product got success into the marketplace which leads them to
earn profit during their initial stage only. (Diakanastasi, Trachana and Karagiannaki, 2017)
It is vital for entrepreneur so as to gather relevant information which is advantageous
for the venture with the purpose to attain success. Entrepreneur has started partnership with
their friends which are having experience in the market so as to take help in business
expansion. With the help of the partners of existing market the company will have high
chances of market growth and success. The entrepreneur has occupied 200squre feet land in
London and the initial capital of 200000-300000 pounds. For the purpose of arranging funds
they took bank loan as their source of funds.
Objective: The entrepreneur is willing to develop SMART objectives which are
elaborated as under:

 Specific: The market of London is the main focus so as to attain their business
goals.
 Measurable: They are emphasised on focusing 50% market of London.
 Achievable: Their major product range is natural face creams, sunscreen and
night cream.
 Relevancy: They had developed their presence in so many areas of UK.
 Time bound: The given objective is to be achieved within a time gap of 12
moths.
Target market: The market is segmented on the basis of demographic, geographic and
behavioural segmentation, and they found the most suitable segment as geographic segment.
SWOT analysis of product:
Strength Opportunity
With the help of organic product, awareness
can be spread in the marketplace.
The current market is having opportunity to
expand business in natural product as
customers are prone to but such products.
Weakness Threat
Organic products are slightly costly in nature
so this can create a problem.
Lack of control may arise in the business
process.
Determine specific tangible and intangible resources that would be required for the launch of
a new venture.
Resources of the new venture are classified into two categories which is tangible and
intangible. With the reference of BioChem they are selling natural products such as creams
and many more so the available resources are explained as under:
Physical resources: Tangible resources are those resources which have a physical
presence within the business and they give benefits to the business. Some of the tangible
resources are explained as under:
 Tangible resources: These are the resources which are most essential for BioChem
and help the business in their functions. With the help of these resources the
operation of distribution and sales becomes easy in the marketplace. (Matama, 2017).
Within this resource as these resources are highly significant for the company and this
includes material and their capital. In order to upkeep these resources BioChem is
using them in optimal manner and making efforts to enhance their life cycle.

 Human resources: This involves the employee and other workforce which are
working in the business so as to achieve business goal. The current objective of
covering 50% market of London by end of this year. So they are hiring candidates for
selling purpose. (Khan and et. al., 2018). BioChem is having one of the most crucial
resources as in form of human which are their employees and for them the company is
making their rewards system highly effective so that extra ordinary performance can
be evaluated. Similarly the company is providing them ample training so that their
skills can be enhanced which is highly beneficial for the company as well.
 Technological resources: These resources are technical support over the business by
which new technology can be adopted in the business due to which waste can be
minimised. In BioChem, they are required to use such technology due to which they
have least waste this will enhance their profitability. These are the resources by which
high business efficacy is achieved within production and their products as well. In
order to upkeep them BioChem is keeping their technology up to date along with all
improvements and modifications and to increase efficacy of their machines and other
equipment.
Non-physical resources: These are those resources which can’t be seen but
they have special identification within the business. These resources are helpful in
enhancing standard of the business. Some of the intangible resources of BioChem is
mentioned as below:
 Customer list and relationship: This is required from each and every
business to maintain proper relationship with their customer so as to have
growth in the business. As in context of BioChem, the business is required
to inhale goodwill within the market by obtaining huge customer base.
This will help them to get edge in the market and provide them
identification within marketplace. (Li, 2017). Customers are one of the
most prominent resources for the company as they are contributing
business to get succeeded and earn profits. So for this BioChem is taking
feedbacks and maintaining their customer service so as to keep their
customers happy and retain them for longer duration.
 Software: Software are those resources which are helpful in identifying
market needs and with the help of this BioChem will be able to perform
market research due to which segmentation and product positioning can be
made better. (Chernova, Matveeva and Mikhalkina, 2018). Software is

used by BioChem in order to maintain records associated with marketing.
The company is updating them on regular basis so as to stay updated with
market demands and to fulfil the same by their offerings.
Produce a credible proposal to launch a new venture.
In the context of BioChem the discussion of credible proposal plan is mentioned as
below:
Title: “BioChem” is launching beauty products which are 100% natural and free from
parabens.
Overview of problem: As in current scenario the market is not having as much
sellers of natural products as per their needs. So once a company starts their business in this
sector they will be able to attract more customers. This enables the company to target those
customers who are prone to use natural products and to stay healthy.
Final proposed new product/service: There are huge numbers of companies which
are manufacturing beauty products but they may harm skin of individual. So BioChem is
introducing creams which ara parabens free and vegan so this will not harm anyone’s skin
and provide them soft and glowing skin.
Time Planning for Your New Product Services: For proper execution of plans,
various strategies are required to be implemented by the business. With the help of new
strategies effective planning can be progressed due to which this becomes easy for BioChem
to execute their plans in an effective manner.
Pricing Planning: It is considered that organic products are comparatively high in
prices. So as in context of BioChem, the company is having high pricing as in compare to
other companies as they are having high costing of their products so they are required to put
high prices to earn profits.

Analysis of Competition: In order to analyse market competition the company is
required to analyse the market and establish benchmarking so as to stay in the competition.
As in context of BioChem, the venture is comparing their performance with other companies
in the same industry so as to enhance their processes and their operations.
TASK 2
Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
The role of entrepreneur is to identify skills and capacities in themselves. So in the
process of starting of new venture it is required by BioChem to use their skills and
capabilities in an effective manner. Some of the skills are elaborated as under:

Managerial skills: It is necessary for the entrepreneur to manage and control all the
activities within a business. Further entrepreneurs are required to use their procured resources
in an efficient manner. In context of BioChem, if high efficiency is introduced in the venture
then all the operation can be managed in a sequential manner.
Decision making skills: These skills are associated with taking decisions which are
required by business in their crucial times. In context of BioChem, the company is supposed
to take such decisions which are for welfare of their employees and their business. These
skills can be improved if entrepreneur will be able to deal with composite problems.
Leadership skills: Leadership skills are required to be grown in entrepreneurs so as
to manage and monitor their sub ordinates and to properly delegate functions to each and
every person. In BioChem it is required by the entrepreneur so as to adapt some leadership
traits such as communication skills, coordination in their business so as to achieve their
mission and objectives.
Risk taking ability: As in context of BioChem they are new in the market so it is
required by them to take risks and such decision which may be risky for them such entering
in a new market which is not their target market but can provide them sales. By this they will
be having some complex situation in which they are supposed to survive for their longer
growth.
Research skills: It is required by BioChem so as to research the market and
understand market needs so that to launch their product in that market where they can capture
huge customers. With the help of online survey they may get to know about market change
and then implement those changes into their product so as to attract customers and position
themselves into the market.
TASK 3
Explain different promotional activities and channels that will support the launch and justify
their choice.
In order to aware the customer about products of BioChem, the company is required
to use some promotional activities so as to position themselves within the marketplace. Some
of the methods used by them are explained as under:

 Social media: With the help of this mode, customers from different age group can be
attracted towards products of BioChem who are having interest in natural beauty
products. Facebook, Instagram and many more modes are included in this channel.
(Zolkifly, Yusof, and Baharom, 2017). This is a helpful promotional activity and tool
for BioChem in making their launch successful. Social media is a helpful tool to
promote their business for BioChem as this is economic and acquires attention of
huge public at once. On the other side due to its nature of promptness this may create
negative publicity as well which may hamper their brand image in initial days.
 Mobile billboards: Under this various logos and punch lines are required to be
prepared so as to attract customer towards the product which are offered by
companies. This is a cheap method so can be used by new ventures such as BioChem.
As this method is also economic so highly recommended for BioChem but at the same
customer coverage over this method is quite low so this is not to be taken as primary
method of promotion by BioChem.
 Personal promotions: Under this form of promotion customer are reached directly
and promotion is executed with the help of pamphlets, brochures and other modes.
Here a personal seller or executive directly interacts with the customer so as to attract
them to buy their products. In the time of pre launching personal promotion is the best
way to promote products by BioChem as in this customer can test the products by
using it physically and reach out to their buying decision. On the other hand this is not
given attention by many population as it is time consuming for customers and capital
consuming for the company as well.
 Hosting events: Under this method an event is hosted by the company under which
demonstration of their product is given and various offers are given to the public who
are present in that event. This will help BioChem in spreading awareness about their
product and to promote their product to the public at a large. These are occupying
large number of population at once and cost per person is very low as these are
organised for public at large. On the other hand lump sum investment is required to
make by BioChem which could be risky for them in their launching days.
 Developing relations: Under this method feedback is taken from the customer about
their experience and any required alterations in the product. As BioChem is a new
venture so this method will help them to gain customer satisfaction and high goodwill
in the market within short span of time. (Singh, 2016). With the help of this method
BioChem can understand needs and demands of market so as they can alter their
product before launching. Similarly this may delay their launch as due to alteration

this is a possible situation which may lead to hamper their market image in negative
manner.
Develop an appropriate promotional activity plan for both launch and pre-launch.
In order to reach out to huge customer it is required to use efficient promotional tools
so as to position their product in considerable manner. In this context BioChem is launching
promotional events before and after launching:
Pre-launch promotions:
It is significant for the business to use various verities of promotional tools which can
build curiosity in the customer and attract them. In the context of BioChem, they are using
hoardings that represents the benefits of organic products and their features,, this will attract
the customer in a very decent manner and influence their buying decision in future. Tagline
used by the company is ‘Let’s bloom with Nature’, this assist the business in having new
customers by which optimum outputs can be attained by the business. (De Jong, 2016)
Launch promotions:
In launch promotions various tools and activities are taken by the business so as to
make aware the customers and to attract more and more customer towards their products. in
launch, promotional tools are different as compared to pre-launch as in launch promotions
various methods such as social media marketing can be utilised so as to trace customer’s
needs and demands and satisfy those needs in considerable manner. With the help of these
tools fierce competition can be survived by the venture. (Otubor and Christopher, 2017)
All the promotional events play significant role in creating brand loyalty in the market
as they will come to know that the product is value for the money or not. Due to existence of
large competitors, this is the most difficult task for the companies. Before launching, macro
and micro factors are required to be analysed so that to take out effective results and outputs.
With the help of these promotional events, sustainability can be achieved by the business and
goodwill can be enhanced in marketplace.
7P’s of marketing
Product: BioChem is coming up with their natural beauty products which are free form any
parabens.
Price: During their launch they are keeping economic prices for their product in order to
attract more customer form marketplace.
Place: BioChem is selling their products on online and making joint ventures form various
retailers.
Promotion: The company is using personal selling and social media marketing for promotion
of their natural products.

People: Being a new company they are providing high training to their employees so that
they can deal customer in a very effective manner.
Process: The Company is making their supply chain very strong and trying to make proper
stock for their products within stores.
Physical evidence: Products of BioChem are packaged with bio degradable outer material
and specifically identifiable due to their packaging which denotes its naturalness.
TASK 4
Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch.
Covered in spreadsheet
Suggest an appropriate legal form for the venture stating why it has been
There are different modes under which business can initiate their operations. This
depends on the investors that on which kind of business they are willing to invest so as to
earn profit and meeting business goals. The entrepreneur of BioChem is required to gather
knowledge about various forms of business legal forms which are explained as under:
Sole trader: Under this type of business all the decision regarding operations of business are
taken by a single person without discussing them with another. In this form government is
having very limited intervention so that this is the most famous and easy legal form. The risk
and rewards are shared by the owner only without any interventions. (Lin, Chen and Lin,
2018)
Corporations: These are those business entities which are working at a large scale with the
motive of earning profits. This type of legal form does have limited investment and liabilities
as well, so investor is not required to take headache about their money. Corporations are
required to comply companies’ law so as to stay updated with all the laws and regulations.
(Cheng, 2016)
Partnership firms: These are having more than one partner and they are bound with
the agreement under which all the terms and condition regarding profit and loss sharing and
other information are written. The main motive of this form is to share profits and losses with
other partner so as to minimise risk factors and have business sustainability.
So it can be concluded that BioChem should opt for partnership as their business
initiation in UK. As this form is having minimum legal requirements so this will be easier for
them to initiate their new venture into the marketplace. By this they will not face any
interruptions in their business and they will have high capital invested so as to operate their
functions.
SWOT analysis

Strengths
 Funds can be accumulated by
BioChem in order to initiate their
launch.
 Capital interruptions can be avoided.
Weaknesses
 This involves high interventions.
 Paper work processes increases.
Opportunities
 New market can be explored.
 Innovations can be introduced in
business.
Threat
 Sharing of control which dissolves
ownership of BioChem.
 By choosing wrong partner whole
image can be tarnished of BioChem.
CONCLUSION
From the above report it can be deduced that in order to start a new venture, needs of
the customers are required to be analysed in an appropriate manner so as to have distinct and
high brand image. The entrepreneur is required to analyse all the macro and micro factors of
the market so as to select the most appropriate promotional tools and the bets location for the
business. In order to stay in the competition skills and capacities are required to be evaluated,
this will provide special market edge to the business and high sustainability. With the help of
proper budget allocation the entire business requirement can be met efficiently which will
provide advantages to the business.