Cafe Coffee Day: Report on Launching a New Venture in Italy

This report provides a comprehensive analysis of launching a new venture for Cafe Coffee Day in Italy, detailing various aspects crucial for success. It begins with an introduction outlining the importance of identifying crucial business aspects and evaluating market conditions. Task 1 focuses on explaining the new venture, identifying the target market, and conducting a competitive analysis. It also explores tangible and intangible resources required for the launch. Task 2 presents a credible proposal for the new venture, evaluates the necessary skills and capabilities, and discusses how they can be acquired. Task 3 delves into promotional activities and channels, developing a promotional plan, and preparing a cash budget for the pre-launch and launch phases. The report emphasizes market research, marketing strategies, financial analysis, and the importance of skills like marketing and public speaking. It also discusses the need for identifying strengths and weaknesses, and the use of promotional activities like social media offers and partnerships to attract customers.

Unit 28 :Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explain new venture and identify specific target markets and undertake competitive
analysis...................................................................................................................................4
P2 Tangible and intangible resources which required by Cafe Coffee Day for launching new
venture....................................................................................................................................5
TASK 2............................................................................................................................................6
P3 Produce a credible proposal to launch a new venture in Cafe Coffee Day.......................6
P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it...............................................................................................................8
TASK 3............................................................................................................................................9
P5 Different promotional activities and channels that will support launch of the venture and
justify it...................................................................................................................................9
P6 Develop an appropriate promotional activities plan for both launch and pre-launch of new
venture....................................................................................................................................9
P7 Preparing the itemised cash budget of different months in the pre-launch stage of the
business and first 12-18 months preceding launch of venture.............................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
The launching of new business is supported by an a lot of factors, it is crucial for any
business management to properly identify all the crucial aspects of business and to evaluate the
conditions as per the nature of business. There are multiple ways which can be effectively used
for the launching of a new business. In this project the main emphasis is done on the credible
suggestion for the new business in order to launch it under the name of Cafe Coffee Day the
main skills and capabilities required to launch a new venture and how an individual can attain or
develop it the various promotional activities and its concepts that will support launch of the
business with proper justification . Developing the most suitable promotional activities plan for
both launch and the pre launch of a new venture. The neeed of tanngible and intengible roesurces
that eill be needed to launch the buiness is also described in this. The report is thus based on the
significant aspects of Café Coffe day that is going to incorparate its buisess in the market sof
developing European countries and its intiating the busiiness launch in Italy. As per this concern
the multple techniques of promotions, and brand enhancemnt in the parycular country will be
evaluated and implemnetyed in the couorse of action of the company’s new planning.
TASK 1
P1 Explain new venture and identify specific target markets and undertake competitive analysis
The new business venture given in the present report is coffee cafe town. This is going to
be launched in Italy. This café provides high quality products and services so that it can attract
lot of customers. Different type of products which are offered by buy this café are government
coffee, Choco frappe, chocolate soaps and ice coffee, There are various type of services
provided by this café such as live music, area for children to play, reading zone, etc. Some of the
services are very attractive that increases the attention of customers for Cafe Coffee Day in order
to enhance the profit. This cafe also provides some programs which are related to poetry,
singing, etc. These are helpful in getting attention of lot of customers and providing them good
experience. The café business request to have an effective research before starting the café. The
business managers who are starting this new café have to conduct strong and effective market
research for achieving the specified targets and objectives. Some of these factors are given
below-

Identify target market- the target market is defined as potential customers who will be
benefiting the organisation by going to café and buying the products. The target market for cafe
is all individuals including males and females who are addicted to coffee. The target customers
are people who love reading books and they want to enjoy good ambience and live music.
Competitor analysis - this is known as development of effective plans and strategies which
are helpful in conducting business. An organisation has to identify and evaluate all competitors
and evaluate strength as well as weakness of cafe in order to achieve success. The competitor
analysis is helpful in in evaluation of needs and demands of customers and also strategies of
other cafes to sustain in market. New coffee café town has to develop effective strategies in order
to measure success in market.
P2 Tangible and intangible resources which required by Cafe Coffee Day for launching new
venture
There are two types of resources which are used while starting a new business. Some of the
resources are those which are tangible and can be seen by clients and customers. On the other
hand, intangible resources are those which can only be felt (Sallah and Caesar, 2020). It is
essential for an organisation to develop both the resources and provide them equal importance in
order to retain customers. Both of these resources are described below-
Tangible resources- these are known as those assets which can be found in physical form.
This includes land, machinery, buildings, table, etc. The tangible resources of Cafe Coffee Day
are useful in attracting and convincing the customers for spending money on services and
products. The tangible resources are helpful for this café in order to cook and prepare good
products.
Intangible resources – these are those resources or assets which do not exist in physical
form. This concept of trademark, patent rights, copyrights, franchise rights, etc. Intangible
resources cannot be physically touched by any individual. The intangible resources of Cafe
Coffee Day includes better quality food, pleasant environment, life music, reading section, etc.

TASK 2
P3 Produce a credible proposal to launch a new venture in Cafe Coffee Day
The market analysis and researches are conducted to make a proper way out for the
effective flow of operations that are determined by the formulated course of action. The business
units or any start-ups can be launched anywhere by considering the suitability and higher
appropriateness of the business in the actual action, due to the emerging and well flourished
globalisation, there is no political boundaries acting as barratries now. The only mission of the
new business is concentrated towards the growth in its respective share of market and enrichment
of its brand among the potential customers. The domestic and international locations affect the
business launched distinctively. There are different kinds of factors which are completely
dissimilar in each and every country. The proposal for the Coffee café town is mentioned below:-
Executive Summary Cafe Coffee Day is a new business venture that is going to be
started in Italy. This will provide effective products and services
to customers. Market analysis is conducted for managing the
target audience effectively and developing strong strategies for
attracting customers. Market strategy is developed for having an
effective promotion as well as advertisement for attracting
customers.
Company Description Cafe Coffee Day is known as a business venture that is
launching in Italy. This is a new café which will provide various
products like gourmet coffee, flavoured coffee, iced coffees,
healthy breakfast, Italian and continental dishes, espresso, hot
chocolates and many more. Other type of services provided in
this café is live concerts, books and magazine area, etc. There
are various types of activities which are helpful for customers to
enjoy their visit. There is also a section in which children can
play games and enjoy.
Market Analysis Cafe Coffee Day conducts the market research for knowing the
target audience effectively and analysing whether target
audiences are easily attracted or not. It is essential or the

marketers to conduct research like SWOT or PESTEL that helps
in knowing what are the factors that have to be considered
before starting new business. SWOT analysis provides
information about the strength as well as weakness of this café
to enter market of Italy. On the other hand, PESTEL analysis is
helpful in acknowledging the factors which are considered while
managing the activities of Coffee Café.
Marketing Strategy Cafe Coffee Day is involved in framing business plan and
making strong marketing strategies. These strategies are helpful
for managing the café business in proper manner. It is important
to prepare proper marketing strategies so that work is done in
proper manner and operations of business will be performed
effectively. There are strong and proper plans so that they can
meet the needs and demands of customers. It is essential for the
new business venture to have effective and strong plans so that
organisation is able to achieve profits and success in less time.
Promotion is the key for reaching potential customers in less
time. Thus, when starting a new café, it is seen that new
marketing strategy is developed.
Financial Status Analysing financial status of a company is very important before
launching a new venture in any country. Cafe Coffee Day do
financial analysis of their company before launching in Italy for
it they evaluate different factors such as financial position,
viability so that they able to know their economic conditions.
The Coffee Café Town can take money from ban loan. The fund
estimated for Coffee Café Town is £100,000.

P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it
The significant unit of skills and capabilities are essential for the management in order to set
a new business and to launch it in a completely different market place. There are few
capabilities and skills which can be learnt but on the other hand there are some skills which are
inbuilt among an individual. This should be used properly in order to work effectively. When the
business person starting coffee café town is starting to launch this new café, there is need for
having some expertise skills so that work can be done properly. Some of the skills are mentioned
below-
 Marketing skills - new business venture requires and effective and strong marketing so
that new customers can be attracted towards the service or product. It is essential for the
new cafe to launch new marketing strategies so that it is easy to reach potential
customers. The owner of Cafe Coffee Day is using his marketing skills for formulating
various strategies like segmentation targeting customers and positioning of service in
proper manner within market. In order to develop good marketing skills, owner of this
cafe can attend video sessions which provide lessons for digital marketing and
positioning of service in market.
 Public speaking skills - when there is need for succeeding in business, it is required that a
person should have good public speaking skills. This includes having a positive attitude
and this person must be good at interacting with new people. In context of coffee café
town, the new owner should know how to communicate with others and tell them what
are the facilities and services that will be e provided to customers in that café. The skills
can be developed by conducting sessions for public speaking and also telling various
kinds of stories to other people.
Capability
 Capability for identifying strength and weakness- when the business owner of a company
is starting a new business, there is need of identifying strength and weakness so that it is
easy to develop strategies and making effective plans for success. The owner of coffee
café town must have capability of analysing strength as well as weakness so that he can
make effective suggestions for increasing profitability and growth of café.

TASK 3
P5 Different promotional activities and channels that will support launch of the venture and
justify it
Whenever new business is started, there is need for promoting the new service or product
effectively so that more number of customers will be attracted towards new product or service. A
new business should promote its activities and let audience know what are their plan and which
kind of product or service there offering. At the initial stage, new companies can use any right
kind of promotional channel that they can use for reaching potential customers. Some of the
activities of promotion which can be used by coffee café town are mentioned below-
 Social media offers- it is known that most of the people nowadays are using social
media. This is a best way to attract lot of potential customers towards the new product.
Cafe Coffee Day can offer special kind of contest for games on social media which will
help the users to grab a free meal. In this way, it will be easy for the new café to attract
lot of customers.
 Website promotion - customers generally visit website before going to a particular cafe
or restaurant. This will help them in knowing all the facilities and services which are
provided by the café. Thus, website should be designed in proper manner and it must
include all the facilities and services provided by café.
 Print media promotions – this is also an effective promotional activity which will help in
reaching numerous potential customers. A new business venture can be promoted by
using posters, brochures, newspaper ads, etc. This can reach customers of different age
group as well as profession. All the people who can visit café for their leisure time will be
attracted by using this strategy.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch of new
venture
It is also important for the business entity to makes the necessary researches and studies
the environment of business whether it is internally or externally. It is an effective way to
understand the need, demand, taste and preferences of the market (Lekovic, Vojinovic and

Milutinović, 2020). This will help in company to make its policies and form the strategies as per
the understanding of market elements in a particular location. Thus the goals and objectives of
the business venture thus taken as the priority at the time of choosing the location, along with
that the nature of the business and kinds of product and services are also usually taken into the
consideration as per the flow of the most effective plan for launching and pre-launching that will
help in enhancing the profitability and growth of their business, which are describe below:-
Pre-launch process:-
 Market Analysis: - In this step, it is seen that what are the various strategies and plans
for developing opportunities within market. This consists of managing and dealing with
various plans and procedures that will help in attaining organisational goals. It is
important for the organisations to have proper planning before stating new businesses.
 Product design and positioning: - The owner of Cafe Coffee Day design plans and
strategy for development of products in which they decide products and services which
is going to offer to audiences such as variety of coffee, healthy breakfast, library, playing
zone and many more. They also decide place to display their products and services
which convince peoples.
 Design promotional activities/ Brand development: - Cafe Coffee Day selects
appropriate promotional media which help them to enhance their business and
awareness’s. Through this respective company owner do brand promotion and create
brand awareness in market and between customers by using several tools such as
promotional media inclusive of social media, print media etc. Implementation:- Cafe Coffee Day execute main strategies as per the market analysis,
including the variables of promotions, decisions of product and so on which they design
according to achieve their goal and objectives in effective manner.
Launch process:-
 Product analysis: - It is seen that Cafe Coffee Day has to evaluate a proper product
analysis for satisfying needs and demands of customers.
 Evaluate responses: - In this step, there is analysis of target audience and evaluation of
venture for making and implementing effective plans that will be helpful in reaching
success in business.

 Conduct modification: - In this step, if there is any need of doing changes within café,
and then these are executed.
 Execution: - In this step the administration of Cafe Coffee Day, there is execution of
proper plans and strategies that are analysed for achieving goals of business.
P7 Preparing the itemised cash budget of different months in the pre-launch stage of the business
and first 12-18 months preceding launch of venture
Pre-launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 10000
Credit sales 3000 3000 3000 4500 1500 3500 4200
Total inflows 13000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 500 300 400 300 150 500 300
Total outflows 2500 2800 1900 2300 1350 2000 1100
Net cash flow 10500 200 1100 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9000 11400 11550 13000 16100
August
Septembe
r October
Novembe
r December Jan Feb
1000 2000 800 1200 1500 2600 3000
1000 2000 800 1200 1500 2600 3000
200 300 100 600 300 2000 2500

400 500 100 100 400 300 300
600 800 200 700 700 2300 2800
400 1200 600 500 800 300 200
16100 16500 17700 18300 18800 19600 20900
16500 17700 18300 18800 19600 19900 21100
Mar Apr May June July
3000 4500 1500 4500 7200
5000 4500 1500 3500 4200
1500 2000 1200 1500 800
200 300 150 500 300
1700 2300 1350 2000 1100
3300 2200 150 1500 3100
21100 22400 24600 24750 16250
24400 24600 24750 26250 19350
Post launch cash budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 11000
Credit sales 1200 2000 8500 3000 5000 6500 1200
Total inflows 12200 2000 8500 3000 5000 6500 1200
Cash outflows
Fixed : Equipment’s 2500 1000 1500 2000 2100 1600 1300

Variable : Direct material 3500 300 250 100 100 500 100
Total outflows 6000 1300 1750 2100 2200 2100 1400
Net cash flow 6200 700 6750 900 2800 4400 -200
Opening balance 0 6350 5850 11600 11950 15750 20250
closing balance 6350 5650 12600 12500 14750 20150 20050
August
Septem
ber
Octobe
r
Novemb
er
Decemb
er Jan Feb Mar
3200 2500 8200 1250 3210 1200 5000 2500
3200 2500 8200 1250 3210 1200 5000 2500
600 600 500 3000 500 6000 2500 1500
150 450 450 1500 500 3000 300 200
750 1050 950 4500 1000 9000 2800 1700
2450 1450 7250 -3250 2210 -7800 2200 800
19750 22100 22650 30100 28850 30860 32160 32360
22200 23550 29900 26850 31060 23060 34360 33160
Apr May June July
4500 3500 3500 4200
4500 1500 3500 4200

2000 2500 3000 400
250 360 250 700
2250 2860 3250 1100
2250 -1360 250 3100
33660 35860 36010 37510
35910 34500 36260 40610
It is concluded from the above budget that the idea for establishing new business venture
is a good option as it is beneficial for making profits and money. From the above budget, it is
said that all the organisations are having a good option as the liquidity is apt. According to the
outlay and liquidity, it is seen that this is a good option for them to establish business. Cash
budget in each condition of before the launch and after the launch is evaluated with each other
and then decision of that thing seems to be effective and appropriate.
Legal Structure:-
It is defined as the manner in which business is executed and there is a set legal structure for
managing the work. The type of business organised in context of Coffee café Day are mentioned
below -
 Partnership: It is the type of business in which there are two or more organisations
which gathers with a puroo[ose of earning more profit by initiating a new business with
joint or discussed rate of investment.. The business partners are involved in managing the
business activities effectively.
 Sole Proprietorship: This is defined as the way of managing the sole trade and
individual entrepreneurship.
Legal structure that Cafe Coffee Day can use is Sole Proprietorship. The business can use
this type of legal structure so that company can share profit and liability.
CONCLUSION
As per the above information’s which have been gathered in this report it can be
concluded that the need of multiple resources is there to launch a new business in different
country. There are different regulations, market trends and different types of consumers firm
should evaluate these factors for the effective start and to ensure the growth of the business in the

particular place. Along with that the various elements that may be a threat to the business should
also be considered before launching the business, and identification of core opportunities should
also be there.

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