Starting a Business: Marketing Fundamentals and Analysis

This report provides a comprehensive overview of starting a business, specifically focusing on the fundamentals of marketing. The report analyzes a proposed business idea, Re-decor Home, which aims to establish itself in the UK market by offering home decor items made from recycled waste materials. It delves into the external environment through a PEST analysis, assessing political, economic, social, and technological factors influencing the business. Furthermore, the report discusses the company's competitive advantage, considering Porter's Five Forces to evaluate industry conditions and competition. The report also identifies the proposed target market for Re-decor Home, focusing on middle to upper-middle-class consumers in London. The conclusion summarizes the key findings and recommendations for the business's successful launch and operation.

Starting a Business and
Fundamentals of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of proposed business idea...........................................................................................1
External environment evolution..................................................................................................2
Discussion of competitive advantage..........................................................................................3
Proposed target market................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Fundamentals of marketing basically involve the process through which individuals as
well as group become able to achieve things they actually want through producing and
exchanging the product over value with others. It simply involve the practice of making the
product available to the consumers as per their need and preferences to keep them satisfied
(Perreault, 2018). For this report Re-decor home is taken into consider which is planning to set
up its business in UK market by offering home décor items made up through recycling of waste
material. This report contains explanation about the overview of proposed business idea, external
environment analysis and discussion over the competitiveness along with the explantation
regarding the target market.
MAIN BODY
Overview of proposed business idea
The marketing practices plays a significant role in term of establishing a business,
positioning the product in the mind of customers or developing a base for achieving competitive
edge. This is so because marketing involve set of strategies that are being used by an
organisation in order to interact with customers, influence them to make purchases and then
keeping them satisfied with the services of customers. The Re-decor home is planning to set up
a business in UK as a substitute of home furnishing items by providing eco friendly products for
enhancing the ambience through recycling material (Brunswick, 2014). For this the waste
material such as plastic, iron, paper, can, tin etc. will be gathered and then recycled to form up an
item for home decor which also support in reducing the risk of environmental harm that mainly
get incurred due to increase in waste material which affect land and water. This business idea is
mainly formulated with an view point of environmental safety and protection while offering
better home furnishing products to customers.
For getting position itself in market place and establishing its business effectively in the
market of UK, the Re-decor home will provide a discount offer to its customers in order to
influence them. Here when a customer brings up waste material to its store while making a
purchase then they get instant discount over the product purchase as per the material bought by
them for recycling purpose.
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External environment evolution
For setting up a business effectively in a market place it is crucial for the Re-decor home
to perform a evaluation of external market in order to determine the risk as well as opportunities
that are present in market which may influence the performance of company. In order to perform
external environment analysis, Re-decor must make use of PEST analysis for ensuring that it
must set up business by consider each and every factor which have a direct influence over
operations of organisation (Elshiewy, Guhl and Boztug, 2017). The PEST analysis of UK market
for determining the opportunity and challenges for Re-decor home is mentioned below:-
Political factor:- This factor consist of evolutional of things like political situation of
country in term of their relation with other countries, regulatory practices, government control
over business etc. along with its influence over businesses. From this it has been identified that
the government of UK is more stable and maintain a positive relation with several neighbour
country in term of trade practices. This is a positive sign for the Re-decor home as if it become
able to establish it effectively in the market of UK effectively and get accepted by the customers
then it become easier for them to expand over other countries on behalf of UK government
relationship. In addition to this, as the government of UK is more strict toward the unethical
business practices or corruption in term of trade it influence the Re-decor home to perform its
operations in ethical manner which in turn reduces the risk of legal compliances and also be able
to set up its business by getting positive responses from target market in term of ethical or
socially responsible business.
Economic factor:- This include the evaluation of several factors such as inflow-outflow,
exchange rate, economic trend, inflation-deflation, taxation, unemployment rate, availability of
credit etc. The UK is having 5th position in term of its economy which is a positive factor for the
Re-decor home this is because it support the company ion growing its business in effective
manner. Despite of this UK is also consider a most popular destination for Foreign direct
investment which support the Re-decor home to gather fund through angel investors in more
effective manner by presenting its unique business idea i.e. recycling and reducing waste as a
major aim behind business (Connolly, 2015).
Social factor:- This factor contains the evaluation of several things like choice, taste,
preference of customers which brings up regular change in the product or services being
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demanded. The UK is consider as big consumer market and consider among top 10 countries in
term of educated population in world. It proves to be a greater opportunity for the Re-decor
home in term of getting greater growth in marketplace. This is so because it get a chance to
approach larger number of customers which support in achieving greater success by getting
market acceptance much quickly. In addition to this, as UK is having the educated population
then it is consider to be the positive factor for the Re-decor home which is so because the
educated people easily get understanding about the importance of environmental safety as well
as role of recycling of waste material for a better environment (Ennew, Watkins and Wright,
2014). This in turn help in attracting as well as influencing the customers toward making
purchase of these product become more easier that further contribute toward enhancing the
market presence of Re-decor home.
Technological factor:- This factor involves an analysis of information related with the
up-gradation of technology, new launch or innovation that get anticipated in marketplace. The
UK is consider as most technologically advanced countries within world. London is consider as
greater hub of technological as well as financial institutions which may proves to be a greater
opportunity for the business of Re-decor home. This is so because the recycling of waste material
require several technology that help in providing more refined and better raw material to produce
new item. Hence, by making use of hi-tech technology for performing business operations it
become easier to present the home decor items in such an effective manner that it become able to
attract larger number of customers. In addition to this by making use of right set of technology it
also become easier for the Re-decor home to produce more attracting and better quality product
that get appreciation from the market and be able to deal with the competition that is present in
marketplace from the biggest players that are operating and offering the home furnishing item at
affordable to luxury price.
Discussion of competitive advantage
This business idea is brining new thing to market which is not only beneficial for the
society but to the environment as well. This idea in turn provide a major benefit to the Re-decor
home as it help in getting quicker acceptance from the customers when it promote its main idea
of recycling the waste material and keeping the environment safe while offering home decor
items at affordable price (Rowles, 2017). But at the same time the competition is high in the
market from the players that are already offering home décor items. Hence in order to determine
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the condition of industry as well as level of competition it become easier to get a view regarding
appropriate strategy to be adopted for dealing with it in market place. This can be determined by
performing the industrial analysis by making use of porter's five force model which consist of
following forces:
Bargaining power of suppliers- The bargaining power of supplier within the home
furnishing industry is relatively lower as there are number of sources that are present in market
through which a business can get raw material in order to develop its products. This remains
lower for the Re-decor home this is so because it require the waste material which left over after
producing the furniture which easily get available to them (Davis, 2017). Hence it remains cost
effective for the company and also bargaining power of suppliers remains lower.
Bargaining power of buyer:- The bargaining power of buyer is relatively higher as the
competition within the furnishing industry is relatively higher as majority of people remain
focused toward getting a better and unique ambience of their home or other property. As a result
of which buyers usually make a comparison between the number of players available in market
and then purchase the material which make the buyer's side more stronger and hence providing
them power to bargain with the company. This is a major challenging factor for the Re-decor
home as it has to deal with the bargaining of buyer in order to get a foot fall in UK market.
Competition in industry:- The competition within the home furnishing industry is
relatively higher as the majority of players are already operating in the market and provide each
other a tough competition by capturing the attention of market by offering unique products to
them. But the competition rate for Re-decor home remains lower as it is brining totally a new
idea which attract the attention of market over its idea behind the business despite of design or
quality of product as a result of which this factor remain a main point of attraction and hence the
factor for gaining competitive advantage at marketplace.
Threat of substitute product:- The threat of substitute remain lower for the Re-decor
home business this is so because it is already entering as a substitute of home furnishing players
by brining up a new concept of home décor along with working over the major environmental
issues that is increase in the wastage material that affect the environment (Phadtare, 2014).
Therefore it proves to be a positive factor for the Re-decor home as it become able to set up
business in competitive market in effective manner.
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Threat of new entrant:- The threat related with the new entrant is relatively lower in the
home furnishing market (Rogers and Davidson, 2015). This is so because the competition is so
higher among the existing players, a new entrant is required to invest more for entering in the
industry. Hence the threat related with the new entrant for the Re-decor home is relatively lower
as the new players have to get a more investment in order to enter in the market and also required
to put some extra efforts for attracting the customers.
Proposed target market
By performing the external environment analysis and porter's five force analysis it has
been identified that UK market is more effective as well as contains lots of opportunity for
operating its business. Hence it is consider to be a best place to start a business, but in for setting
up a business it is crucial to make a decision over the customers to be targetted so that the
business get a direction in term of catering the need of customers ion one direction only (Ang,
D'Alessandro and Winzar, 2014). By performing the evaluation through market research it has
been decided that the target market would be London where the people belong to middle to upper
middle class within the society.
The main reason behind targeting the London market is that it is consider as the hub for
the financial and technological institute that make it easier for the Re-decor home to get fund for
business much easily and be able to get technological assistance. On the other hand the targetted
customers are middle and upper middle class people as company is offering the products at
affordable price which will be more demanded by these people.
CONCLUSION
From the above performed information it can be summarised that fundamentals of
marketing plays a significant role in performing the business practices effectively within the
marketplace. This is so because it help in determining the actual demand of market along with
the strategies that it must adopt to target and sell the products or services for achieving the
competitive edge. In order to get right information about the market an organisation must make
use of porter's five force model and pest analysis that provide an overview regarding external
market condition.
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REFERENCES
Books & Journals
Ang, L., D'Alessandro, S. and Winzar, H., 2014. A visual-based approach to the mapping of
generic skills: its application to a Marketing degree. Higher Education Research &
Development, 33(2), pp.181-197.
Brunswick, G.J., 2014. A chronology of the definition of marketing. Journal of Business &
Economics Research (JBER), 12(2), pp.105-114.
Connolly, R., 2015. Fundamentals of web development. Pearson Education.
Davis, M., 2017. The fundamentals of branding. Bloomsbury Publishing.
Elshiewy, O., Guhl, D. and Boztug, Y., 2017. Multinomial logit models in marketing-from
fundamentals to state-of-the-art. Marketing ZFP, 39(3), pp.32-49.
Ennew, C., Watkins, T. and Wright, M. eds., 2014. Cases in marketing financial services.
Butterworth-Heinemann.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Phadtare, M.T., 2014. Industrial marketing. PHI Learning Pvt. Ltd..
Rogers, T. and Davidson, R., 2015. Marketing destinations and venues for conferences,
conventions and business events. Routledge.
Rowles, D., 2017. Mobile marketing: how mobile technology is revolutionizing marketing,
communications and advertising. Kogan Page Publishers.
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