Innovation & Entrepreneurship: A New Business Plan for London, UK

This project report outlines a business plan for a new ice cream shop, "Sweet Tooth," in London, UK, focusing on innovation and entrepreneurship. It details the industry profile, business model (manufacturing), and strategies for generating revenue. The report identifies the company's point of differentiation, challenges faced, prospective customers using the STP approach (Segmentation, Targeting, Positioning), and marketing mix strategies (Price, Place, Product, Promotion). Furthermore, it addresses the source of funding and the importance of intellectual property in safeguarding business rights. The analysis includes competitor analysis and concludes with key considerations for launching and sustaining the business venture.

INNOVATION AND
ENTREPRENEURSHIP

EXECUTIVE SUMMARY
The purpose of this project report is to create a new business plan which will define the
innovation and entrepreneurship skills which helps in running a new business venture
successfully in London, UK. The report will be based on new business plan which will define
various factors that must be considered while starting a new business venture for earning profits
and generating higher revenues. The project report will also highlight the industry profile in
which the business will be operating and the model which the business will be following for
running their business in the industry. The study will also list the source of funds which has been
used to establish a new business venture and the intellectual property which will be helpful for
the entrepreneur to safeguard their property rights. The study will outline the customers of
business venture, their competitors with the help of analysis, the USP of business venture and the
challenges which has been faced by the business venture. The business idea will also define the
marketing mix strategy which will be faced by the venture in order to promote their offering and
to target higher number of customers to generate higher revenues and create a strong brand
image in the industry.

Table of Contents
EXECUTIVE SUMMARY...........................................................................................................2
INTRODUCTION.........................................................................................................................4
BUSINESS IDEA........................................................................................................................4
INDUSTRY PROFILE................................................................................................................5
BUSINESS MODEL...................................................................................................................6
POINT OF DIFFERENTIATION...............................................................................................6
CHALLENGES TO BUSINESS IDEA......................................................................................7
PERSPECTIVE CUSTOMERS..................................................................................................7
MARKETING PLAN..................................................................................................................8
COMPETITOR ANALYSIS.......................................................................................................9
SOURCE OF FUNDING............................................................................................................9
INTELLECTUAL PROPERTY................................................................................................10
CONCLUSION............................................................................................................................10
REFERENCES............................................................................................................................12

INTRODUCTION
Entrepreneurship is a skill which encourages a person to establish a new business venture
while understanding the business environment and accepting risk in order to generate higher
revenues and maximize profits (Botelho, Fehder and Hochberg, 2021). Innovation in
entrepreneurship is an important element which helps an entrepreneur to attract higher number of
customers and bring something new to the society by adding value. Innovation is an important
element which is helpful for sustaining in market place for longer period of time span.
Innovation and entrepreneurship are essential ingredients in creating a successful business
venture (Carayannis, Samara, E and Bakouros, 2015). The report will define a new business idea
and the industry in which the business will operate. The study will also outline other factors such
as business model which will be followed, the pointy of differentiation which will make new
business venture unique from existing brand operating in the same industry and challenges which
will create obstacles for business venture. The study will also list prospective customers which
business will target, identification of competitors, the source of funding which will be used to
establish a new platform and the use of intellectual property rights which will be helpful for
protecting business rights.
BUSINESS IDEA
The new business strategy is to open a new ice cream shop that will sell a broad range of
ice creams, gelatos, ice cream cake, live ice cream rolls, and other customizable and non-
customizable items. The company will operate under the name of "Sweet Tooth".
Location- 221, Bakers Street, London, UK
Services- In London, UK, the company will provide dine-in, take-out, and online delivery
options. By providing dine-in services, guests will be able to play, pay, and pick up their orders
from counters, allowing for excellent two-way communication and strong customer
relationships. Because the enterprise will provide a range of ice creams, they will also give
customizable alternatives through which goods may be altered based on client preferences,
resulting in increased customer retention and a more successful business. Sweet Tooth will also
tie up their operations with online meal delivery applications, allowing them to provide their
services through the internet.

Products- Ice creams, ice cream cakes, gelatos, and ice cream rolls will be available from Sweet
Tooth. Sweet Tooth offers a wide range of items, which are shown in the menu below:
SWEET TOOTH
Ice creams
Added sugar
Pistachio
Tiramisu
Triple chocolate Oreo
Without sugar
Mint with fudge
Caramel Swirl
Cinnamon
Ice cream cakes and rolls
Hot fudge sundae cake
Raspberry vanilla ice cream
cake
Brownie ice cream roll
Cookie monster ice cream
roll
Gelatos
Wild strawberry
Dark chocolate
Salted caramel
INDUSTRY PROFILE
The worldwide ice cream market is divided into two categories: sales type and
geography. The ice cream market is divided into three types of sales: impulsive ice cream, take-
home ice cream, and artisanal ice cream. Product innovation, economic growth, rising disposable
income, and retail market expansion are all variables that might affect ice cream market share. In
2016, the consumption of ice cream as a snack in the United Kingdom rose, with the take-home
sector accounting for the largest proportion of the market. The segment's inclination has risen
due to incline and disposable income, as well as the introduction of new flavors and increasing
ice cream consumption.
In 2016, the UK ice cream market brought in £2.9 billion in sales, representing a 4.4
percent yearly increase. The British market is expected to increase by 20%, reaching £3.5 billion
in value (Eesley and Miller, 2017). In 2016, the UK population consumed £4.6 million kg of ice-
cream, with 60% of off-market ice-cream accounting for bulk ice-cream consumption. Artisanal
ice cream accounts for 9% of the total, while impulsive purchases account for 30%.
In 2016, the UK ice cream market brought in £2.9 billion in sales, representing a 4.4
percent yearly increase. The British market is expected to increase by 20%, reaching £3.5 billion
in value (Elert, Henrekson and Stenkula, 2017). In 2016, the UK population consumed £4.6

million kg of ice-cream, with 60% of off-market ice-cream accounting for bulk ice-cream
consumption. Artisanal ice cream accounts for 9% of the total, while impulsive purchases
account for 30%.
BUSINESS MODEL
Business model
Manufacture business model- Sweet Tooth will employ a manufacturing business model,
in which the company will use all raw materials to create a product that will be sold to fulfil
client demand (Escobar and et.al, 2021). This business model enables firms to transform raw
materials into completed items in order to provide a high-quality customer experience and attract
the largest possible number of consumers. This enables the company's direct sales of items to
clients under this business model.
Strategies for generating higher revenues
 Bring value for customers- A company venture can attract new customers who will
recommend more people, which will assist to improve customer engagement, grow sales,
and optimize business profitability, with the help of happy customers.
 Improve customer base through customer referral- Market research and
understanding consumer lifestyles and tastes will be prioritized by the firm, which will
help the company offer value to customers and maintain a greater number of loyal and
pleased customers, resulting in enhanced corporate profitability. Sweet Tooth will keep
track of buyer responses in order to encourage innovation and adjust the strategy as
needed for business success.
 Set realistic objectives- Sweet Tooth will set SMART objectives for their business and
work to improve the method they employ to hit their targets on a consistent basis and
make the company successful.
POINT OF DIFFERENTIATION
The ice cream company venture's point of differentiation will describe the purity and
goodness that will be provided to clients via their products and services (Farinha, Ferreira and
Nunes, 2018). Customers will be certain that the raw materials used by the firm are of excellent
quality and enhanced with authentic tastes. Sweet Tooth will advertise their product line and the

company's philosophy, which is that consumers may try a new flavor every day of the month.
The firm will also advertise its low-fat and healthier product line in order to appeal to health-
conscious clients and increase sales (González-Pernía, Jung and Peña, 2015). Quality goods and
services at the lowest feasible rates will be promoted by the corporation. The company will
provide excellent customer service and prompt customer support, which will aid in fulfilling
customer needs and keeping a larger number of consumers.
Sweet Tooth will offer a variety of goods so that consumers have numerous alternatives
for meeting their needs in a single location. This will assist to improve the company's brand
image and client loyalty, which will lead to business success and profitability. The enterprise will
identify the purity of their goods as well as the high-quality ingredients that they utilize to bring
goodness and fresh items to consumers in order to provide a high-quality customer experience.
CHALLENGES TO BUSINESS IDEA
When it comes to beginning and managing a business, there are several challenges that
must be overcome. The venture has experienced a variety of challenges, some of which are noted
below:
 Lack of interest- The incline in lack of interest of customers will create an impact on the
demand of products and will further lead to decline in sale and will affect business profit
(Kabukcu, 2015). The same challenge has been faced by Sweet Tooth which has created
an adverse impact on their business profitability and sustainability ion the marketplace.
 Balancing quality and growth of business- It has been one of the biggest challenges
which has been faced by Sweet Tooth to create a balance between quality and growth of
business as at some point the venture needs to sacrifice the quality of their products in
order to scale up their business and retain in market for longer timespan.
PERSPECTIVE CUSTOMERS
The STP technique is used to identify the prospective consumers who will be targeted by
Sweet Tooth in order to fulfil company's objectives and earn more profits. The STP method will
also assist in defining the company's positioning plan in order to supply tehri goods and attract
more consumer attention. The following is a thorough description of the STP approach:
STP Approach

Segmentation- The aim of segmentation is to separate the target market into several
categories so that you can target the right consumers (Landström, Åström and Harirchi, 2015). In
the case of Sweet Tooth, the firm will utilize demographic behaviours and psychographic
segmentation to assist them segment their clients by age, gender, lifestyle, and preferences.
Targeting- Sweet Tooth will focus on individuals and families from the middle and
upper classes, as well as children of young professionals and those with greater discretionary
money. The Sweet Tooth target market will assist them in branding and other actions that will
help them build their brand image in the sector and attract a larger number of clients.
Positioning- Sweet Tooth's positioning strategy will be focused on establishing a strong
brand image in the minds of customers by identifying the features and quality of the company's
products and services.
MARKETING PLAN
An organization's marketing mix is the collection of actions it does to promote its
products and services. Price, place, product, and promotion are the four components of the
marketing mix approach. The following is a discussion of the marketing mix tool in respect to
Sweet Tooth:
Price- Sweet Tooth have utilized a market penetration pricing strategy, which allows
them to sell their products at lower or lower costs than their competitors. Sweet Tooth will be
able to attract a larger number of consumers as a result of implementing a market penetration
plan, resulting in improved sales, revenues, and profits. This price approach will aid in separating
the business from its competitors, allowing for the retention of a larger number of clients.
Place- The firm's operational area is a prime position, which gives the company a
competitive edge in terms of generating more revenues and attracting more customers, allowing
the company to accomplish its goals (Lounsbury and et.al, 2019). Sweet Tooth will be based in
excellent London locations, which will aid in optimizing profits because the enterprise will be
easily available to clients, resulting in increased customer interaction.
Product- In terms of Sweet Tooth, the company offers a wide range of products such as
Hot fudge sundae cake, Raspberry vanilla ice cream cake, Brownie ice cream roll, Cookie
monster ice cream roll, Wild strawberry gelato, Dark chocolate gelato, Triple chocolate Oreo ice

cream, Mint with fudge ice cream, and many others that will assist in meeting customer
demands. The initiative focuses on the company's production process and the quality of the items
it delivers, since this will help it satisfy consumer needs.
Promotion- Sweet Tooth will utilize social media to create image challenges, to organize
campaigns using social media platforms, to promote products, services, and offers through the
use of photographs and videos, and to attract consumers through various social media platforms
(Malecki and Spigel, 2017). The company will also market and advertise its products through
billboards and newspaper advertisements, which will attract the attention of customers and
encourage customer involvement.
COMPETITOR ANALYSIS
Udderlicious Ice Cream, Gelatorino, and Marine Ices are the three firms that compete in
the same sector.
Competitor analysis is a strategy for assessing the rivalry within an industry so that a
company venture may develop new plans and tactics that will help it face obstacles and generate
money in order to succeed (Matthews and Brueggemann, 2015). Sweet Tooth will use the
following techniques to analyze the competition and its competitors:
 Identify the product range of competitors- By understanding dynamic business
environment and determining all product range offered by competitors, it will help Sweet
Tooth to bring innovation to their products through which they can get customer attention
and strengthen their position within the industry.
 Determine competitor’s strategies- By examining the strategies followed by
competitors, it will help Sweet Tooth to understand their tactics which has been followed
by competitors in order to promote their products and attract higher number of customers.
SOURCE OF FUNDING
Funding and financial resources relate to the money required to establish and maintain a
business. In other terms, it's a sort of financial investment that helps a company get started. The
sources of financing are the entities that make financial investments to launch a business. Sweet
Tooth utilized the following two sources of finance to make their capital investment and start
their business:

 Self-investment- One of the source of funds which has been used to start the venture is
self-investment, where I have been saving some amount of money in order to start a new
venture to pursue mu passion (McClure, 2015).
 Venture capitalist- Another source of financial resources which are used are venture
capitalist which helped in capital investment to start new business venture.
INTELLECTUAL PROPERTY
Intellectual property is a form of property that encompasses both physical and intangible
intellectual property. The ownership of a person's own products is referred to as intellectual
property. As a result, intellectual property refers to any work of human knowledge that is legally
protected from unauthorized use. Intellectual property helps entrepreneurs to protect their ideas
against worldwide rivals, regardless of their size or process. Sweet Tooth makes use of
intellectual property rights such as logos, patents, trademarks, and copyrights, all of which are
described further down:
 Logo- A logo is a visual mark, symbol, or figurative design that represents a company's
name and makes it identifiable in the marketplace. It's the visual identity and expression
of the business (Zhou, 2015). Sweet Tooth will use a logo to defend their rights and build
a strong brand in the industry. Sweet Tooth will be able to differentiate itself from the
competition by establishing its own individual brand image.
 Patents- A patent is the transfer of property rights by a government entity to an investor.
In other terms, it refers to the exclusive rights that have been awarded to an invention.
This helps the entrepreneur's legal rights in the instance of Sweet Tooth.
CONCLUSION
After detailed analysis of the above report, it can be evaluated that entrepreneurship and
innovation exists parallelly which helps an entrepreneur to bring new business idea to the market
place by understanding the dynamic business environment and analyzing risk which can hamper
the new business venture in order to generate revenues and create strong brand image in the
industry. It can be understood that entrepreneurship is a skill which cannot be taught and it is
inherited which makes a person different through which they can bring something new to the
society and generate higher revenues. There are a variety of elements that contribute to positive
and negative effect, and these factors may be identified via marketing strategy, which will aid in

the development of suitable pricing and promotional tactics to assist businesses achieve success
and reach their objectives. It can be concluded that competition in today's business climate is
fierce, and in order to meet these difficulties, the firm must focus on competitor analysis, which
allows them to get insight into their competitors' businesses and tactics.

REFERENCES
Books and journals
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w28990). National Bureau of Economic Research.
Carayannis, E. G., Samara, E. T. and Bakouros, Y. L., 2015. Innovation and entrepreneurship:
theory, policy and practice. Springer.
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innovation and entrepreneurship. Available at SSRN 2227460.
Elert, N., Henrekson, M. and Stenkula, M., 2017. Institutional reform for innovation and
entrepreneurship: An agenda for Europe. Springer Nature.
Escobar, O and et.al., 2021. Lead user innovation and entrepreneurship: Analyzing the current
state of research. Journal of Small Business Management. pp.1-18.
Farinha, L., Ferreira, J. J. and Nunes, S., 2018. Linking innovation and entrepreneurship to
economic growth. Competitiveness Review: An International Business Journal.
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or two fields of research?. International Entrepreneurship and Management
Journal. 11(3). pp.493-509.
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pp.1-12.
Malecki, E. J. and Spigel, B., 2017. Innovation and entrepreneurship. In The Elgar Companion
to Innovation and Knowledge Creation. Edward Elgar Publishing.
Matthews, C. H. and Brueggemann, R. F., 2015. Innovation and entrepreneurship: A
competency framework. Routledge.
McClure, K. R., 2015. Exploring curricular transformation to promote innovation and
entrepreneurship: An institutional case study. Innovative Higher Education. 40(5).
pp.429-442.
Zhou, J., 2015. The Oxford handbook of creativity, innovation, and entrepreneurship. Oxford
University Press.