Detailed Report: Launching a New Venture for Pro Value Supermarket

This report provides a comprehensive analysis of launching a new venture for Pro Value, a UK-based supermarket. It begins with an introduction outlining the need for market research and planning, then proceeds to Task 1, which covers new venture and competitive analysis, including a SWOT analysis and STP approach for a new fizzy drink product. Tangible and intangible resources are identified, and a detailed business proposal is presented, including an executive summary, mission statement, product description, marketing plan, financial planning, and time and pricing strategies. Task 2 examines the skills and knowledge required for launching a new venture, such as communication, decision-making, innovation, leadership, and flexibility, and how they can be adopted within the organization. Task 3 discusses promotional and advertising tools, and develops a marketing plan for pre-launch activities. Finally, Task 4 addresses cash budgeting and the legal form of the venture. The report concludes with a summary of key findings and recommendations, supported by relevant references.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Briefly explain and describe new venture and competitive analysis..........................................3
P3 Prepare a credible proposal to launch a new venture.................................................................5
TASK 2.................................................................................................................................................7
P4 Examine skills and knowledge required to launch a new venture and how they can be adopted
in the chosen organisation................................................................................................................7
TASK 3 ................................................................................................................................................8
P5 Discuss promotional/advertising tool for marketing business activities in relevance with
chosen organisation..........................................................................................................................8
P6 Prepare marketing/advertising plan of new product and pre-launch in relevance with
organisation ...................................................................................................................................10
TASK 4...............................................................................................................................................11
P7 Prepare a cash budget for pre- launch of venture ....................................................................11
P8 Identify and suggest legal form of the venture with reason .....................................................11
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14
BOOKS & JOURNAL:.................................................................................................................14

INTRODUCTION
Every individual wish to start their own business and new venture for success and growth.
Starting a new venture is not easy and requires resources, finance, time, manpower, and plan. A
deep market research is required for starting a business in market. So, chosen organisation is Pro
Value which is a supermarket organisation situated in UK. In this report it comprises of products
traits and target market- SWOT Analysis, tangible and intangible resource, proposal for a final
product, skills& capabilities when starting a new venture, promotional activities, plan during launch
and pre-launch and cash budget for pre- launch.
TASK 1
P1 Briefly explain and describe new venture and competitive analysis
In market, starting a new venture is not easy and even not possible in this competitive era.
Clarification of path, goals, mission, and objectives are necessary so that they can be carried out in
proper manner. Pro Value, which is a supermarket firm includes variety of products groceries,
fashion accessories, jewelleries etc. In the firm, new product has been taken known as fizzy drink,
which is energy drink and will be have different flavours and new extended product line ion near
future (Allen, 2018).
Traits of product:
 Cost effective compared to Red Bull energy drinks.
 Good packaging by no use of plastic
 This drink can be consumed by everyone from teenagers to old age people.
 Guidelines and instructions regarding product are displayed so that customers can
 choose the type of drink they need (Tan, 2019).
To target the market Pro Value uses STP approach which is discussed below-
STP Approach-

It is a method which is used for targeting the right customers for the right product. It comprises
of three elements which has been mentioned below-
 Segmentation- The first component of STP approach is segmentation in which market is
divided and selected on the basis of demographic variables such as age, culture, region
gender etc. Pro Value has divided its market on the basis of stated factors which assist
them in identifying the trends and situation of market in proper manner.
 Targeting- Further comes the targeting in which potential segment market is targeted by
the company so that products and resources are used effectively. In context to Pro Value,
entrepreneur target market by examining the competitor’s products which also help them
in determining the value of their product (Voß, , 2017).
 Positioning- Firm is only able to attract customers when its product has value and
position in market so, positioning is essential to acquire resources and end user. In
relation with Pro Value, customers needs and requirements are taken as priority and
which results in goodwill and increase creditability of the entity.
SWOT Analysis-
STRENGTH
Main strength of Pro Value is that it provides
products with affordable rates and which leads
to acquiring of more customers and higher profit
is generated. (Kaushik, 2020).
WEAKNESS
It is difficult to access international market due
to low sales revenue and higher competition.
OPPORTUNITY
Pro Value can merge up with small businesses to
expand their functions as well as operations at
wider level.
THREATS
Pro Value can merge up with small businesses to
expand their functions as well as operations at
wider level.
P2 Identify and analyse tangible & intangible resources that is required in new ventures
Entrepreneur when start new venture require numerous amenities in business so that all the
functions and operation are carried out in appropriate manner. Resources are essential in business
because they are responsible for growth and development of the firm. In context to Pro Value, they
require and adopt both tangible as well as intangible resources in the business.

Tangible Resources- These are those resources which are physically present and can be
touched. Different types of resources are available some of them are mentioned below-
 Cash/ funds- Whenever an entrepreneur start new business or venture first major
resource is money without which activities cannot be carried out. These resources are
required at every phase of business such as production, distribution, promotions etc.
In relation with Pro Value, to successfully launch the business in market entity has
managed to acquire this resources through financial institutions and money lenders.
 Inventory- Another tangible resource which is needed in new venture is inventory
because it helps business to continue business and activities for longer period of
time. In relation with Pro Value, they keep inventory in appropriate manner so that
hurdles in business do not arise.
Intangible Resource- These are those which cannot be touched and are not available
physically.
 Goodwill- It is one of the most important resource which is required by new
venture and entrepreneur because growth rate of business depends upon its goodwill
in the market. In context to Pro Value, products of the organisation are emerging in
the market and due to positive word of mouth firm has a goodwill and trust amongst
people and society (Wu, 2020).
 Intellectual Property Right- Further come the IPR also known as intellectual
property rights in which all the rights which are related to product design, logo,
name etc. are specified. Pro Value, require this intangible resource so that their
products cannot be misused by local retailers or competitors or third party.
P3 Prepare a credible proposal to launch a new venture
Business proposal or say plan is important when new venture is being started. With help of
business plan, entrepreneur is able to achieve goals and objectives in proper manner. So, skills and
knowledge is required to implement and produce an effective business proposal. This assists in
launching new venture and has a positive impact on goodwill of the firm in market. In context to
Pro Value, business plan has been used in appropriate manner so that continuity of business remains
for longer period of time. So, credible proposal has been discussed below-
Business proposal
PRO VALUE
Executive Summary Pro Value is a diversified retail chain and a supermarket dealing in

variety of products at affordable prices. Firm has launched a new
product known as Fizzy drink which is energy drink and is distributed
with long distribution channels. Competition is rising and entities are
coming up with new ideas and thoughts to survive in market. In
retailing, many competitors are available such TESCO and ASDA
Group.
Mission Statement When starting a new venture it is crucial to analyse the mission which
is to be achieved by firm. So, Pro Value mission statement is to
deliver customer total satisfaction and to be the leading retailing chain
in market (Fine, 2017).
Company Background Pro Value is retail chain firm started in year Jan ,2020 in UK.
Company operates it business functions and operation within the
region of UK. Main motive of starting this venture was to assist and
provide society with innovative products and quality of services.
Product Description and
Marketing plan
Due to rise in competition, Pro Value develops a new product; fizzy
drink which is a energy drink and is healthy because of using natural
resources and substances and ingredients. Organisation marketing
plan is carried out in appropriate manner so that strategies and tactics
are formed effectively. In this main focus is on target market which is
is determine on the basis of variables such as gender age etc. so that
resources are used accordingly.
Financial Planning
Further come the stage of financial planning in which raising of funds,
capital, assets are being focused by the organisation. In context to Pro
Value, financial planning is done by finance and audit team of the
company so that financial position and performance of firm is known.
There are many financial institutions such Virgin Money, HSBC
holdings etc. which assist business to perform their functions as well
as operations (Amofah, 2016).
Time planning It is essential for firm to prepare time and product planning so that
business runs smoothly. In this it includes launching of new product,
financial aspects, etc. This can be done with help of Gantt Chart
which is tool used by organisation to schedule a project. So, Pro Value

uses this tool so that all the activities are assigned in proper manner.
Pricing plan Price is important in marketing process through which exchange of
goods is done. There are various types of pricing strategies such as
skimming, psychological, cost plus, competitive pricing etc. In
relation with Pro Value, as the venture is new in market organisation is
using penetration pricing strategy to attract larger market share.
Competitor analysis It is also essential to analyse competitors in the market such Pro Value
faces competition from companies like TESCO, SAINSBURY’S etc.
They monitor their rivals by using SWOT Analysis.
TASK 2
P4 Examine skills and knowledge required to launch a new venture and how they can be adopted in
the chosen organisation
When new ventures are started by an entrepreneur skills and knowledge is required so that
business perform its operations in effective manner and also they help in overcoming with
challenges and threats. In context to Pro Value, to enhance business productivity and acquire growth
and development at rapid level skills as well as knowledge are required. Various types of skills and
knowledge is required when launching new ventures and are described below-
 Communication- One of the most important knowledge as well as skills required by
entrepreneur is communication. To counter and deal with the customers and clients it is
crucial to communicate in proper manner because then only information and message will
able to understand by others. In organisation, it is beneficial for both firm and employees so
that conflicts and errors are solved and members work as a team (Rebele, 2019).
 Decision making- Another skill which is necessary is decision making. In firm, at every
phase of business decisions are made and it is important to make effective decisions within
the enterprise. So, from the above displayed business plan, it has been analysed that
employee in the entity has to make decisions which are profitable and are used effectively.
This skill can be developed and acquired by giving subordinates difficult situations or task
and or putting them into hypothetical thinking.

 Innovative- When new venture is started, new product and services are delivered in the
market. So, adopting changes and innovation leads to increase in sustainability of the firm
for longer period time. Thus, subordinates in the entity should be innovative towards their
work so that new ideas as well as thoughts are generated. In context to Pro Value, this skills
will help in attracting more customers and acquiring market attention(Cowan, 2019).
 Leadership- In entities, it is important to analyse the personnel with leadership traits. A
leader is person who has power to influence the other decision. In relation with Pro Value
they can develop this skill by examining every members in the organisation and by dividing
teams into different departments so that attitude and behaviour of personnel are analysed.
 Flexible- Business and market situations are dynamic in nature so when launching new
venture it is important to examine degree of flexibility in relation with both firm as well as
employees. Pro Value, changes according to market trends and situations which makes them
unique from their competitors. This skill is to be acquired by every subordinate in the entity
so that conflicts do not arise in management (Baardman, 2019).
TASK 3
P5 Discuss promotional/advertising tool for marketing business activities in relevance with chosen
organisation
In organisation, to acquire place and position in the market it is essential to create
awareness about the brand at wider and broader level. This objective is only achieved with help of
promotion and advertising of the product or service. Promotion refers to marketing strategy through
which customers decision can be influenced and raise interest towards the product. Another process
through which product and services are promoted is advertising. It is another tactic of marketing in
which firm goods and products are advertised via paid channels. In context to Pro Value, enterprise
chooses these techniques so that brand awareness is created at wider level.
Types of promotional tools
Direct Marketing
In this types of promotional tool, promotion of product is done through directly
communicating to customers. In relation with Pro Value they use this direct marketing via various
sources such as text messages, e-mail, websites etc. It is cost effective and less time consuming as
compared to other form of tools.
Advantages-

 It is cost effective and strong relationship is built between firm and organisation.
 It also assists in determining the value of product and customer behaviour is analysed.
Disadvantages
 Sometimes direct marketing irritates the customers because of adopting the tool
aggressively by the firm (Allen, 2018).
 Competition is high when it comes to direct marketing because ample numbers of entities
target the customers and it depends upon the end user to give priority to which one.
Sales Promotion-
Another tool of promoting a product is sales promotion which refers to process in which
short term techniques are used to boost the sales revenue. In context to Pro Value they use this
method in appropriate manner so that customers are acquired and profit is generated at rapid level.
Advantages-
 With help of this method, Pro Value can attract more customers and which results in trust
and brand loyalty.
 Comparing with other tools it is easy to implement and acquire in the organisation for
example discounts and offers coupons.
Disadvantages-
 In sales promotion, sometimes distributors and retailers are also involved but it is not
accepted by all the retailers in the market (Tan, 2019).
 Excess use of this tool may lower the value and reliability of brand if used aggressively.
Personal Selling-
Further come the personal selling in which agents & part time employees are involved in
this process who are responsible for selling the product and promote as well. In relation with Pro
Value they use this method so that all the promotion is done across all the region.
Advantages-
 Brand awareness is created across all the regions of country and widely.
 Interaction and switching behaviour of customers are analysed in appropriate manner.
Disadvantages-
 This technique of promoting a product may affect firm goodwill if agents do not
communicate with customers in proper manner.
Public Relation
This is another tool for promoting products and is used by organisation effectively. Public
Relation refers to process through which positive relation are maintained via non-profit organisation
and campaigns etc. In relation with Pro Value they use this method so that goodwill of the firm
increases at rapid level (Voß, , 2017).

Advantages-
 Adopting this tool assists firm to stable their status and increase creditability of entity.
 With use of Public Relation tool as promotion, it becomes easy to deal with competition and
politics in market.
Disadvantages-
 Sometimes conspiracy can have a negative impact on public relations.
 To use this tool, appropriate media network is required and which may rise cost of
production of Pro Value.
P6 Prepare marketing/advertising plan of new product and pre-launch in relevance with
organisation
In organisation, it essential to develop a marketing plan for the product so that brand
awareness is created in the market. In context to Pro Value, firm uses 7 P’s of marketing to
implement a plan and which is discussed below-
Marketing plan-
 Price- To exchange goods and services it is important to put price ion product. In context
to Pro Value as new product is being developed and introduced by the firm which is fizzy
drink and price of the product is affordable so that it is consumed by everyone.
 Place- In relation with Pro Value, product is to be distributed considering the access of
customers and this can be only done via identifying the right location to acquire the target
market (Kaushik, 2020).
 Promotion- It is important for brand awareness and product too so that customers are well
aware about the product and services of the firm. So, Pro Value use various promotion tools
such as direct marketing, personal selling etc.
 Product- While preparing for marketing plan, it is necessary to examine the actual need of
product in market. In relation with Pro Value, fizzy drink has been used as product because
people consume drinks at rapid level.
 People- In business, organisation is able to run activities because of people. Pro Value,
hired the right people for right role and responsibility. People such as salesman, manger etc.
 Physical evidence- Every venture use physical evidence in the business so that all value of
firm is known. For example- Pro Value use stores and malls to distribute the products to
customers (Wu, 2020).
 Processes- The last stage of marketing plan is process in which customer service and
delivery of product take place. This is essential to maintain the process because relationship

and strong network is build between both end user and firm.
TASK 4
P7 Prepare a cash budget for pre- launch of venture
Cash budget refers to method through which cash flow within the organisation are estimated
and determined. This assists firm in analysing the financial position of the firm.
 Opening budget- It refers to cash which is used at the starting of the month and is
displayed while preparing for budget.
 Receipts (money coming in)- These are the receipts which are used to determine how
much cash has to be used in business.
 Payments (money going out)- in this, firm determine the amount of cash remaining at
the end of month and if amount is not sufficient than arrangement is done by the firm.
 Closing Balance- It is the amount which remains at the end of month and then opening
as well as closing balance are compared with each other (Amofah, 2016).
CASH FLOW
P8 Identify and suggest legal form of the venture with reason
When new venture is launched it is decision making take place at every stage and is to be
used effectively. It is also important to analyse and examine the legal form of business which is
suitable and profitable. In relation with Pro Value, legal form which is chosen by the firm is
partnership. This is because it is start up business and need support for rapid growth as well as
overall development and via the partnership it will become more easy and effective (Fine, 2017).
SWOT Analysis- It is tool used by organisation to monitor and determine the internal
capabilities of the firm. This framework also helps in implementing strategies and tactics in

effective manner.
STRENGTH
Main strength of choosing this legal form is that
it assist Pro Value, to access the international
market easily.
Profit and risk will are to be shared by both the
party and which reduces the degree of risk in a
organisation.
WEAKNESS
Firm cannot take independent decision when
more other firm is involved in the process.
OPPORTUNITY
Ease access of global market and profit share
growth increases (Rebele, 2019).
THREATS
Conspiracy and conflicts may lead to rivalries
amongst the partnership (Cowan, 2019).