Entrepreneurial Project: Launching Munches Organic Chocolate Business

This project report analyzes the entrepreneurial opportunity of launching "Munches," an organic chocolate business. It begins with an introduction to the concept of entrepreneurial opportunities and the changing consumer preferences in the UK market. The report explores the sources of innovative entrepreneurial ideas, including market analysis and technological advancements, and introduces the business idea, identifying the target consumers and the London market. A competitor analysis using Porter's Five Forces model is conducted, followed by a gap analysis to assess the current and future market scenarios. The report also includes market research to support the viability of the business, discussing the strengths and weaknesses of the business idea, and the potential risks of competition and opportunities for growth. The project emphasizes the importance of providing high-quality, healthy products at competitive prices to capture a significant market share.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Sources of innovative entrepreneurial ideas...........................................................................1
2. Introduction of business idea, who and where is potential consumers and targeted audience
.....................................................................................................................................................3
3. Competitor analysis to look at the competitive marketplace..................................................3
4. Gap analysis, current and future situations and objective of business ides............................5
5. Market research to support viability of business using range of sources such as primary and
secondary.....................................................................................................................................6
6. Viability and feasibility of business idea, strength and weakness of business.....................12
7. Risk of competition and potential opportunities for growth and development.....................13
CONCLUSION .............................................................................................................................13
REFERECNES..............................................................................................................................14

INTRODUCTION
`The concept of entrepreneurial opportunity is the central for study and theory of
entrepreneurship. Entrepreneur are the individuals who pursue entrepreneurial opportunities.
Entrepreneurial opportunities are usually defined as situation where products and services can be
sold at a price greater than the cost of their production. It is considered as opportunity where
entrepreneurs can take a action to make profit. It emerges at the nexus of individuals aspersions
with economic and social conditions perceived as favourable to create a new product or service,
either in an existing market or a new one. In this competitive world preference of consumers are
changing continuously and persons starting a business possess various ideas but one idea which
is feasible can be launched successfully in marketplace (Aliaga-Isla and Rialp, 2012). This
project report is based on the idea of launching organic chocolates by “Munches”. This report
will explore the sources that inspire and motivate new business idea with gap analysis. This also
includes the SWOT and market analysis of entrepreneurial idea to start a new business venture
successfully.
1. Sources of innovative entrepreneurial ideas
In the world of digitalisation many business opportunities are identifies through social
media so as to create a start up in the marketplace. Business that are started in the economy like
UK which is supportive for establishment and provide assistance helps business to grow and
develop. UK economy is facing problems regarding employment of young graduates and took
initiative to support them to have their own start up. For this funds are required to introduce
opportunities of new and innovative businesses by various entrepreneurs. Largely motivated
young citizens of the country come up with their idea in relation to development of a product or
service. Young graduates have many ideas and one idea which is feasible to start a business is
introduced to government for funds (Alvarez, Barney and Anderson, 2013). It is essential for
businesses to keep updated with new and innovative business opportunities that provides
competitive advantage. Some of the innovative sources that provides ideas of commencing a
business which is unique and helps in satisfying consumers requirements. Peter Drucker has
provided seven sources of innovation opportunity that helps in getting a new business
opportunity which are as follows-
1

The Unexpected- Market place is considered as number one area which is flooded with
opportunities. Continuous study of the market is done so that opportunities can be grab as soon
as they generate. Analysis of market demand can be done and this helps businesses to grow and
develop business idea. The unexpected business opportunity helps businesses to convert ideas
into successful business venture. Idea of introducing organic chocolates by Munches will give
some unexpected opportunities that pushes towards success of the business.
The Incongruity- As per this source of business opportunity there is difference bet5ween
what is done and what needs to be done by businesses to become successful. Enterprises needs to
gather appropriate information from the market for new business so consumers requirements can
be met appropriately. Data regarding taste and preference of the consumer will help Munches to
introduce demanded product (Audretsch, 2012).
Process Need- Identifying companies weak spots and correcting or redesigning them.
This is a task oriented solution that helps Munches to identify demand for organic chocolates that
is tasty and healthy.
Market structure change- Industry and market structure keeps on modifying that guides
businesses to implement creative idea for the introduction of the new business opportunity and
meets consumers expectations. Introduction of organic chocolates by Munches is change because
consumers are quite health conscious and needs something healthy.
Demographics- There is continuous change occurs in population, income level, human
capital, education and age of targeted consumers. It is considered as smart move by businesses to
pay attention to these changes to grab new opportunity. Change in preference of consumers who
belongs to different age group and income level for healthy chocolates gives opportunity to
introduce Munches as organic chocolates (Autio and et. al., 2018).
Change in Perception- Over a period of time it can be seen that way in which view
regarding life needs to be seen changes. These changes demands for new products and services.
Consumers in today's scenario are quite conscious about life and demands for the product which
are healthy. Organic products are high in demand so Munches is a opportunity for new business.
New Knowledge- Technology and opportunities moves hand-in-hand. Revolution in
technology opens doors for introducing new products. Knowledge will motivate entrepreneur of
Munches to focus on current market trend and targeted consumers requirements.
2

2. Introduction of business idea, who and where is potential consumers and targeted audience
Chocolates are most favourite edible and its consumption is not restricted to any age
group. Chocolates are highly demanded in UK and change in preference of consumers for
chocolates which is high in proteins and organic. Consumers are day by day becoming health
conscious and preferring products that are healthy (Barazandeh and et. al., 2015). This changing
preference gives business opportunity of introducing organic chocolates named as Munches.
Chocolates which are rich in taste and together with this least sugar and added preservatives are
combines to makes a product which is demanded by consumers. This business opportunity will
be proposed to government of UK by young graduates to manage finances for start-ups. A 10
minutes presentation will be demonstrated to government that will include full information
regarding the business idea. Business will be established in London and value of the project is
£150,000. loan of £90000 at low interest rate is provided by the government and £50000 is as
grant. £10000 will be contribution of entrepreneur as capital in the business.
Targeted consumers for the product belongs to different age groups. As parents prefer a
healthy chocolates for their children. Young generation who is conscious about health is one of
the targeted consumers. Individuals who can not consume sugar are considered as target
consumer group. For chocolates like Munches potential consumers will be those who gives
preference to variety as large variety will be introduced by the company. Consumers who prefer
tasty chocolates will ultimately gets attracted towards the product as creating taste that is
introduced never before id one of the prime objective of the business (Dimov, 2011).
3. Competitor analysis to look at the competitive marketplace
Competition is a non negotiable tool in the market and while introducing a new business
in the market competitive market analysis required to be conducted. Technique that will be used
for Munches business to analyse competition Porter's Five Force Model will be used. It is
described as follows-
Porter's Five Force Model: This model is introduced by Michael Porter in the year 1979
as a tool for analysing competition of the business in the existing market place. It draws from
industrial organisation economics to derive five forces that determine the competitive intensity
and attractiveness of industry in terms of profitability.
3

Illustration 1: Porter's Five Force Model, 2018
(Source: Porter's Five Force Model, 2018)
 Supplier Power- Availability of suppliers in the chocolate industry is high. This effects
bargaining power of suppliers as high availability of row material leads to law bargaining
power. Munches can buy row material for its products at best price and organisation will
be benefited with minimum cost (Porter's Five Force Model, 2018).
 Buyers Power- Buyers in the industry are considered as drivers for price of the product.
Price of the product is driven by number of buyers in the industry, importance of
individual buyer for organisation, cost to buyer for switching supplier. As buyers in the
chocolate industry are available at large scale that reduces bargaining power of buyers.
This will helps Munches to sale its products at set price to an number of buyers.
 Competitive Rivalry- Launching a new business idea is very much affected by existing
businesses and it is important to identify level of competition in the market for business.
Munches needs to gather information regarding its competitors and products offered by
the to the consumers. Montezuma's, Equal Exchange, Green and Black and Pacari are
4

main competitor of Munches. Adopting price cuts and high impact marketing will help to
compete in the market.
 Threat of Substitution- Availability of substitute products is considered as negative for
business organisation. As it creates more elasticity to the consumers and small change in
price or quality of the product affects consumer group of the product. For Munches
availability of substitutions are such as extra dark chocolates, no flavour chocolates and
milk free chocolates. Company needs to consider these substitution before introducing a
new product in the market (Fuentes and et. al., 2010).
 Threat of New Entry- Competition is high in the current market scenario and new
chocolates are introduced in the market very frequently. In the present competition is not
as high in for organic chocolates in UK. New entry in the this industry will be considered
as threat for Munches as profits and consumer base will be affected by the organisation.
Organic chocolates are introduced by very few companies that creates level of
competition at minimum level. Chances of being successful in the new business venture will be
high as low competition needs to be faced by the company. Organic chocolates are already
existing in the market but to attract consumers towards Munches something different needs to be
done. Adopting a aggressive price cuts and giving importance to online promotions will help
company to create consumer base. Minimum risk and unique taste and attractive packaging will
increase chances of success for the business. Munches will be considered as business with low
risk (Grégoire and Shepherd, 2012).
4. Gap analysis, current and future situations and objective of business ides
Gap analysis is conducted by entrepreneur's when any new business idea or concept is
introduced in the marketplace. Gap analysis helps to ascertain whether the current market
performance is as per the desired future performance of the business organisation. To have a
close look at the gap organisations current performance and its desired future performance needs
to be critically analysed. In current situation it is seen that Munches is launched in London and
faces low competition due to less availability of competition in the market for organic
chocolates. As it is a new business opportunity that will attract more and more businesses to grab
it to earn more profits. Entry of new competitors in the market may leads to change the
competitive scenario in near future.
Objectives of introducing organic chocolates by Munches are-
5

Quality and Healthy Products- Providing chocolates that do not posses added
preservatives and sugar is one of the healthy form of chocolates. Munches is not compromising
with the quality of product and using best quality of raw material for the products. Its taste will
set benchmark to serve taste which is healthy too. This object will be achieved by Munches by
following set rules for the organisation to serve its consumers (Mitchelmore and Rowley, 2013).
Pricing- Availability of number of competitors for chocolate that are organic is not high.
As a new business to be establish in a market which is already taken by some other product
pricing strategy needs to be implemented effectively. Munches will offer its products at low
price to attract large consumer group and profits will be earned through economies of scale.
Capturing large market share- Munches is going to launch its organic product in
London. Availability of large consumer will requires business to target for to capture large
market share to earn profits that helps in long term success of the business. For this effective
marketing, low pricing and qualitative products are introduced by the company.
5. Market research to support viability of business using range of sources such as primary and
secondary
Primary research is new research, carried out to answer specific issues or questions. It
involves questionnaires, surveys or interviews with individuals or small groups. In primary
research information is collected that is never gathered before. It is directly collected from the
individuals to whom the information belongs and information that is collected earlier is not
considered. Business organisations conduct this research in relation to some issue and
information is collected for the this issue only (Siegel and Renko, 2012).
Secondary research involves collection of data that is already been produced. It involves
the summary, collection and synthesis of existing research. Secondary data is constructed with
primary research. It is also termed as desk research by using existing data. Existing data is
summarised and collected to increased the overall effectiveness of research. From both the
methods primary method is selected by Munches organisation. For collecting information from
30 respondents questionnaire is prepared as follows-
QUESTIONNAIRE
Name:
Age:
6

Address:
Contact Number:
Q1. Are you aware about Munches organic chocolates?
A. Yes
B. NO
Q2. Are you a chocolate lover or fitness freak?
A. Chocolate Lover
B. Fitness Freak
Q3. Which is your favourite chocolate?
A. Dark Chocolates
B. Organic Chocolates
C. Milk Chocolates
Q4. Is price charged by Munches is as per product offered?
A. Agree
B. Disagree
Q5. Do organic chocolates offered by Munches will gain competitive advantage?
A. Yes
B. No
Q1. Are you aware about Munches organic
chocolates? Frequency
A. Yes 18
B. No 12
Total 30
Mean 15
Median 15
Mode 6
7

Interpretation: From the above chart it is analysed that from the consumer group of 30,
18 persons are aware of the product and 12 are not aware. Mean, median and mode that are
calculate are 15,15 and 6 respectively (Smith and Ibrahim, 2012).
Q2. Are you a chocolate lover or fitness
freak? Frequency
A. Chocolate Lover 20
B. Fitness Freak 10
Total 30
Mean 15
Median 15
Mode 0
8
18
12
Q1. Are you aware about Munches organic chocolates?
A. Yes B. No

Interpretation: From the above chart it is seen that 20 persons out of 30 are chocolate lovers
and 10 are not. Mean,median and mode of this is 15,15 and 0.
Q3. Which is your favourite chocolate? Frequency
A. Dark Chocolates 14
B. Organic Chocolates 10
C. Milk Chocolates 6
Total 30
Mean 10
Median 10
Mode 2
9
A. Chocolate Lover B. Fitness Freak
0
5
10
15
20
25
20
10

Interpretation: This chart represents that 14 persons like dark chocolates, 10 persons like
organic chocolates and 6 like milk chocolates out of 30 individual. Mean for this response is 10,
median is 10 and mode is 2.
Q4. Is price charged by Munches is as per
product offered? Frequency
A. Agree 25
B. Disagree 5
Total 30
Mean 15
Median 15
Mode 0
10
A. Dark Chocolates B. Organic Chocolates C. Milk Chocolates
0
2
4
6
8
10
12
14
16
14
10
6
Column B