Business Development Plan: New Online Retail Shop in London, UK

This assignment presents a business development plan for launching a new online retail shop, "Daily Shop," in London, UK. The plan addresses the impact of the COVID-19 pandemic on the retail sector and proposes an e-commerce solution to capitalize on the shift to online shopping. It includes an abstract, rationale for the business idea, chosen scenario, aims and objectives, background to the subject area, research questions, project structure, and research methodology. The plan focuses on analyzing the UK retail industry's size, growth rate, and competitors, along with the application of marketing mix elements and segmentation, targeting, and positioning strategies. It also includes a conceptual discussion of the business plan, theoretical issues, and the design of a business model canvas. The project aims to provide a better understanding of the retail industry and analyze opportunities and threats in the UK retail sector, using secondary research to draw valid conclusions and recommendations. The chosen scenario is an online retail shop to meet the demands of customers during the pandemic. The report also includes a literature review, and the structure of the project.

Business development

Table of Contents
Topic: Business development for online retail shop in London, UK..............................................1
INTRODUCTION...........................................................................................................................1
Title: Business development plan for a new online retail shop in London, UK....................1
Abstract...................................................................................................................................1
Over justification and Rationale for the business idea...........................................................1
Chosen scenario......................................................................................................................2
Aim and Objectives................................................................................................................3
Background to subject area....................................................................................................3
Research questions.................................................................................................................4
Structure of the Project...........................................................................................................4
Research Methodology....................................................................................................................5
Analysis of Results..........................................................................................................................6
Discussion, Conclusion and recommendation.................................................................................6
REFERENCES................................................................................................................................6

Topic: Business development for online retail shop in London, UK.
INTRODUCTION
Business development is a vital process that comprise of all activity undertaken for pursuing
and starting up with some new strategic opportunities that is presenting within a business
environment. A business development plan is basically a written document that outlines and
provides a framework to implement and execute business strategy in a more effective and viable
way. The current business development plan is based on launch of a new retail shop in London,
the main aim and objectives along with rationale for selection of project of which is provided
below:
Title: Business development plan for a new online retail shop in London, UK.
Abstract
The current dissertation is based on business development plan created for successful
launch of a new online retail business within London, UK. The current situation of global
pandemic due to spread of Corona virus has lead to many threats and adverse situation for all
business sector of economy in form of sudden Lockdown and other stricter rules. COVID-19
leads to a vital and sudden effect on retail industry as most of the physical stores are closed due
to lock down and also the manufacturing and sales of product are also get affected and
plummeted to an all time low. Thus, current dissertation is focused on coming up with an online
retail store that provides most appropriate opportunity to encounter and overcome this adverse
situation lead out by COVID-19. The main aim of current investigation consists of getting a
better knowledge about the retail industry along with analysing key opportunities and threats
which are currently prevailing within the retail sector of UK so that a better analysis of success
and performance of a new retail online business can be analysed. Further, use of secondary form
of research analysis is made for current investigation to effectively evaluate and analysis
significant information to draw valid recommendation and conclusion.
Over justification and Rationale for the business idea
The selection of current business idea is justifiable and rationale as the current business
situation of UK are most suitable and setting many business opportunity for online services. The
sudden close off and shut down of many physical stores within UK and London due to current
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global pandemic has made it more appropriate and justifiable to come up with a new online retail
shop to meet the demand and expectation of customers. The situation of COVID-19 has lead to
many issues for physical stores thus, coning with an e-commerce business based on online retail
business is justifiable and rationale. Further, leading out current investigation is also vital and
important to facilitate an enhanced understanding about the retail industry size of UK along with
analysis of its growth rate and existing competitors with the help of suitable business models so
that better strategy and policy could be made for success of new business idea. Apart from this,
an enhanced understanding about the marketing mix elements and use of segmentation, targeting
and positioning strategies are also provided and facilitated in current project that is significant to
develop better understanding about target market and current business environment. Along with
this current investigation is also rationale and vital as it would lead to a conceptual discussion
about selected business plan and theoretical issues along with designing of a business model
canvas for better understanding and evaluation of feasibility and success of current plan.
Further, selection of current business idea and research project is also justifiable and
rationale from personal view point of researcher as it meet its personal interest along with
improving and enhancing the knowledge about the retail industry of UK. Apart from this, current
project would also lead to improvement in the data analysis skills and other managerial and
interpersonal competencies of researcher which would assist to easily conduct and lead out an
effective business development plan.
Chosen scenario
The scenario chosen for current assignment is based on launch of a new online retail shop
with the name of “Daily Shop” within London based on e-commerce business. The main reason
and justification for selection of an online retail shop is based on the fact that because of current
global pandemic of COVID-19, which leads to sudden lockdown of many firms and stores,
coming up with a new online retailing shop is a great opportunity which would attract and cater
the interest of larger number of participants and customers. Beside this, online modes of business
are much more cost effective and feasible as compared to physical store and also best suitable for
current business scenario. The reason for selecting London as a target market is based on the fact
that London is having a large sum of population along with the fact that maximum numbers of
people in London are educated and fond to make use of online sites and like to shop through e-
commerce. Thus, selection of London as target market for launch of a new online retail shops
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seems vital and rationale. Further, continuous advancement in the technology and new
innovation in IT sector also supported the launch of a new online retail shop through making e-
commerce more easy and feasible along with facilitating more safe and easy way of online
payments.
Aim and Objectives
Aim
The aim of current business development plan is “To get a better knowledge about the
retail industry along with analysing key opportunities and threats which are currently prevailing
within the retail sector of UK”.
Research Objectives
 To have a review about the retail industry size of UK along with analysis of its growth
rate and existing competitors with the help of suitable business models.
 To have a detailed marketing mix analysis for new business plan based online retail shop
along with discussion about its segmentation, targeting and positioning strategies.
 To ensure a conceptual discussion about selected business plan and theoretical issues
along with designing of a business model canvas for better understanding and evaluation
of feasibility and success of current plan.
Background to subject area
The retail business or industry is mainly associated with and comprises of sale of various
items or services for end customers with the purpose of their consumption, use and having
pleasure. The various items included in retain business consists of clothing, drug, grocery, and
convenience stores. Thus, an analysis can be made that retail industry is one of most vital part of
any economy which ensures better flow and transfer of finished goods and products to end users
and customers for consumption. Further, the current situation of global pandemic lead by
COVID-19 has lead to many threats and issues for physical retail stores that is hampering this
glow of goods and services to end customers. Therefore, coming up with an online retail shop is
best option and opportunity to meet and fulfil the demands of customers. Therefore, current
business development plan is lead out on business idea of coming up with a new online retail
shop with the name of “Daily Shop” is seemed appropriate and vital. Thus, current investigation
is carried out to get better understanding about the retail industry size of UK along with analysis
of its growth rate and existing competitors with the help of suitable business models. Further,
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implication of marketing mix model and segmentation, targeting and positioning strategies is
also made to develop a better business management plan.
Research questions
 What is size of the retail industry UK along with analysis of its growth rate and existing
competitors with the help of suitable business models?
 What is meant by the marketing mix analysis for new business plan based online retail
shop along with discussion about its segmentation, targeting and positioning strategies?
 What are the main theoretical issues related with selected business plan along with
designing of a business model canvas for better understanding and evaluation of
feasibility and success of current plan?
Structure of the Project
The structure of project tend to provide a blue print and complete framework which are
involved and undertaken to perform an investigation and business development plan in an
effective and viable manner. The each section and part of current project are discussed below in
brief:
Introduction- It tend to be the first chapter and section of any research project that provide
vital information about the background of the study along with all the needed information about
the chosen scenario. Further, rationale for selection of topic along with main aim and objectives
and research questions are provided by the introduction section of the project.
Literature Review- This part comprises of an analysis of existing and secondary form of
data that is vital to set out base and better framework for leading out and conducting current
project in a more vital and appropriate way.
Research methodology- This part of business management plan provides information about
the key method, techniques and approaches that would be used by the investigator to perform
and lead out current investigation in a vital and effective manner. Apart from this, Research
methodology is also vital to provide reliability and validity to the investigation through leading
efficient use of research method for better collection and analysis of data to meet set objectives.
Analysis of results - In this part, data is analysed by using appropriate analysis method and
the results are presented by using appropriate charts and graphs.
Discussion, conclusion and recommendation - This is the final part of dissertation in
which the discussion regarding overall data collected by using secondary method is used. The
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discussion based on secondary data is provided in this part. Apart from this, the conclusion based
on the overall report is provided along with some recommendations that help in improving the
business operations assist in gaining growth and success in market.
Literature Review
Retail industry size in UK along with its growth rate and existing competitors with the use of
business model
Size of retail industry along with its growth rate
As per the view point of sivarajan, k, Retail is refers to the process of selling consumer goods
and services to the customer through the various types of channels of distribution. UK has the
very large scale of retail industry and which is mostly consist of the multinational retailing
companies. Total value that is generated by the UK retail industry sales in 2019 is £394 Billion
and people employed in this industry as per the 2019 report is 2.9 million. This reflects the
higher contribution of the retail industry into the development of economy. Whereas proportion
of consumer spending that goes through the retail is 1/3 from the sum total of spending of the
consumers in which portion of retail sales that is made online in 2019 is 19%. Retail industry is
growing rapidly in the economy and achieving its objectives and goals effectively. Retail
industry of UK has been taken the growth in sales by 3.4% as per the report of 2019. UK has the
306,655 total retailers outlet that help in to enhance the sales and provides convenient shops to
the local consumers which provides support in to encourages the living standard of the society
and in the development of local and national economy.
Existing competitors in the retail industry
As per the view point of Evans, B. the UK retail industry is widely recognition as being
the oligopolistic; because of this concerns are raised over the level and use power by the leading
retailers. There are various competitors that are existing in the industry with the leading power.
TESCO:
TESCO is a British multinational groceries and general merchandise retailer, that has an
headquartered in Welwyn garden city, England. This is also an third largest retailer across the
world measured on the basis of gross revenue and since it is operational since a pretty long time
it has captured a large share in the market and thus is very well placed in the current market
situation as compared to its competitors that are prevalent in the similar market. And according
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to the revenue it is the ninth largest in the world. TESCO was founded by the Jack Cohen in
1919 as the group of market stalls in hackney, London.
SAINSBURY:
Sainsbury is refers to the second largest chain of supermarket in UK along with the
16.0% shares in the supermarket sector and I deals in selling groceries. This has been founded by
the John James Sainsbury in 1869. This company is split into three divisions that are Simsbury’s
supermarket, bank and Argos. It’s headquarter is located in the Holborn circus, city of London.
ASDA:
This is an British based supermarket retailer that has that has an headquarter in Leeds,
England. Asda was establish in 1949 and this was an second largest supermarket chain by market
share in Britain between 2003 and 2014. this is specialise in selling groceries, general
merchandise and financial services.
MORRISONS:
This is an fourth largest chain of supermarket of United kingdom, that has an
headquartered in Bradford, England. It was established in 1899 by william morrison, it store's
locations were mainly focused in the north of England. It deals in the food and drinks, clothing,
books, magazines, CDs and DVDs. As per the 2019 morrison has employed 110,000 employees
and serves around 11million customers per week. The company has also listed on the London
stock exchange and it is the part of FTSE 100 index of the companies.
Business model of retail industry
As per the view point of Joe David
The business is used to analyse the retail industry of UK is pestle analysis, the detail
analysis of this this model has addressed the some of the political, economic, social,
technological, environmental and legal factors or issued that are affecting the UK industry. Pestle
analysis is a very useful tool or method that helps in to make the business strategies by
understanding the impact of macro environment on their business.
Political factor: The UK has the England, Wales, Scotland, and Northern Ireland which is refers
to the most powerful countries in the world. Along with this political stability is great strength
that a country has and serves as an advantage to the retail industry. Apart from it the government
of the UK provides various types of subsidies and concession to firms that are operating within
the policies of the government and helping it to be stable during a particular period. Also the
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company has to analyse and identify all the aspects that are related with the stability and political
environment that is currently prevailing in the UK so that all the necessary and appropriate
adjustments can be done well before the implementation of the main plan.
Economical factor: UK is refers to the 5th largest economy in the world with the nominal GDP.
UK has the adequate economy and popular destination for the foreign direct investment. Around
the world many organisations and business tycoons invested in the variety of industry in UK.
This has the positive impact on the companies that help them to be more productive, effective,
and efficient in the long run scenario. Apart from it the organisation must examine all the
economic factors of the UK like its Gross Domestic Product (GDP), rate of employment and
inflation, foreign exchange rates, etc. so that the enterprise must act accordingly so as to sustain
in the competitive market for a longer time frame.
Social factor: As UK has a big consumer market, as per the data released on august 2019 by the
office for national statics. The UK has historically influenced by the wide range of social class as
population out there is consist of the multicultural. This has influenced the companies to develop
the variety of new products and market to cater the needs and requirements of the customers so
that it can increase as well as improve the standard of living of the citizens that are residing in
that country and thus directly benefiting the firm too by the way of increased sales and
profitability in the long term.
Technological factor: In the technological advancement, UK is always stand forward in the
across the world. London is known as the hub for the financial and technological institution. This
provides the advantage to the companies in to frequently developing new technology that
provides support to offer the best solution for their customers. Since if the company is using
advanced technology it will directly prove beneficial to it as it will help in utilising the available
resources in an impactful manner which will subsequently cut down the cost of operation and
thus improving the level of performance of the company. Also the firm that is Daily shop must
discard the use of the old machinery and technology as it will only add to the cost of the
company in the long run which will directly affect and impact the profitability and sales of the
firm which is not a very good sign for it.
Environmental factor: The government, local councils, newspapers, charities and many others
have taken the carious of steps to create environmental awareness and eliminates the negative
impact of the economic growth on environment, the UK sometimes has face the bad or
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challenging condition that has the significant impact to the operation of the business. If the firm
reduces its carbon footprints in its working and also uses sustainable and renewable sources of
energy it will help the government to maintain a good environment that will benefit the company
too as it will immerge as a good firm in the eyes of the customers which will help it to increase
its market value in the long run.
Legal environment: Legal factor is refers to the rules and regulations made by the government.
This includes the employment act 1996 protects rights of employees, maternity and paternity
leaves, minimum wage, holiday pay and sick pay etc. these are the rights that are legally
protected. The firm must operate and work within the boundaries of all the laws that are made so
that it cannot hamper its positing in the industry in which it is operational. Also it operate
according to the rules, and regulations, policies and procedures so that it cannot become a
contender of unlawful act which can badly affect its market value and positing in the long term
context.
Detailed marketing mix for new business plan based online retail shop along with segmentation,
targeting and positioning strategies
Marketing mix for new business pan
As per the view point of Hitesh Basin, Marketing mix is referring to the marketing
strategy tool that is used for the comprehensive marketing plan that is used by the company to
pursue its marketing objectives in the target market. There are different tools and techniques that
are used in it and thus all of them are explained and elaborated below in a systematic and
sequential manner-
Product: Product is referring to the item that is offer by the companies for sale. This is the basic
element for every organisation and some of the people have also given the comment that an
organisation is just a collection of products. In addition to this Daily shop is the online retailing
company which will deal in all types of product such groceries, clothing and food products etc.
Price: This is referring to the amount of money given by the consumer in return of the product.
This is consisting of the most important elements or variables and on which retailing buying
decision is based is price. Daily shop will choose the penetration pricing strategies this strategy
has the low prices solution that will support in to capture as much market share is possible. As a
new company in the market this pricing strategy will work to grab the higher customer base.
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Place: This is referring to the place where company allow the access of the customer to their
products so that prospective consumer can buy it easily. As daily shop is an online retailing
company, so the place for their product will be online that is on their website on which consumer
can access to the type of products along with their prices, quality and other information’s. This is
the easiest location and most convenient to the consumers, this will provide support in to
enhancement of the sales and market share.
Promotion: This is referring to the set of activities that communicates the product, brand or
service to the consumers. As in order to attract them towards the product and influence them to
buy the same. Commonly companies opt for the print, television ads, public relation advertising
and sales promotion. Daily shop will pursue this activity through television advertising and
digital marketing through various platforms such as social media and E-mail marketing.
Process: This is referring to activities that engage in the selling of products. The retail industry is
entirely based on the processes like order processing and management of the database. From the
movement customers visit the shop, it will depend on the process that provides support to find
the appropriate section that will consist of the appropriate goods. In this daily shop will take the
support of various technological systems that is going to be handling the processes of the website
such as orders and the distribution.
People: It is described as the ones that help the customers to find the product that as per their
requirement. This is associated with the capacity of the staff and efficiency and availability. This
includes the employees, shareholders, suppliers and customers. That is engaged in the whole
process of selling and buying of goods and services.
Physical evidence: this is refers to everything that attract the customers and they see while
interacting with the business. It includes the layout of the shop, packaging, labelling, brand logo
and etc. customers are able to recognise the brand or company through its physical evidence.
Daily shops is having this in the form of logo, website and layout design for the display of
products that makes easy for the customers to better recognise the company this will help in to
increase sales and a good brand image.
Segmentation, targeting and positioning strategies of a business
As per the view point of marianne wright, STP model is refers to the core concept as
according to the modern-day marketing , this makes the marketing campaign and effective and
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successful as without this campaign would be generic . This concept is absolute key to serving
the market successfully. This is refers to the three activities are discussed below:
Segmentation: this is described as the process of dividing the target group into the smaller and
more defined groups so that company will able to satisfy and fulfil the need of the consumers
effectively. In this segments of the customers and audience are done into the groups that share
the same interest and characteristics. With the help of this daily shop is able to focus on the
marketing efforts and resource that will support in to reaching the most valuable customers and
achieving business goals. This includes four main type of segments:
 Geographical segmentation: this is based on the country, region, state and province etc.
 Demographic segmentation: in this company divide the audience based on their age,
gender, occupation, income level etc.
 Behavioural segmentation: dividing the customers on the basis of how they interact with
the business. Such as what they, how often they etc. Psychological segmentation: this is refers to the segmenting the customers on the basis of
their lifestyle, opinion, hobbies etc.
Targeting: This marketing strategy involves the identifying the specific personas and specific
content. A company adapt this strategy to better know about their customers and thus creates the
marketing campaign and advertisements for the specified groups in order to maximize the
response from the customer’s side. Daily shop will use this with he main aim of to determine that
which of segments are likely to generate and provide the most desired conversion and will be
profitable. This is also divided into mainly three parts:
 Size: this consist of the size of the segment and as well as its growth potential in future.
 Profitability: this is considered that which of the segment are willing to spend more on
the commodity and also focus on to the lifestyle value of the customers. Reachability: this shows that how it will be easy and difficult to reach to the market
segments along with the marketing efforts so that maximum response could be get from
the customers side.
Positioning: This is the concept that associated with the development of the mental position in
the public. This is refers to the position of the brand image in the eye of the consumers. This
allows the business to set the product or service different from the competitors. This will help
Daily shop to invent the things in the processes that makes the company stand out and different
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