In the present time, small business enterprise has a huge significance in the country through which local people have an opportunity to get employment and generate the revenue. With the help of launch the small business unit in a country, it can help to county in enhancing national income. While any entrepreneur goes to launch the new venture then there are several components that needed to consider. The current report provides a detailed knowledge and understanding about various promotional activities and channels that will support the launch of a new venture in the market. In the present study, it is planning to start a new business that is Five Star restaurants in the UK market. The new venture will serve various nations food like Indian, Mexican, Chinese, and Italian etc at reasonable prices. It is very important for entrepreneur to focus on various skills and capabilities that are required in launching a new buiness Furthermore, tangible and intangible resources needed for the new venture have been also addressed
P1 Explanation about the new venture for Five Star restaurants along with specific target market and competitive analysis
The hospitality industry in the UK is largely represented by country's hotel, pubs, restaurants etc. There is effective market of hospitality as it produces around 4% of UK’s GDP. UK hospitality sector is the 8th largest hospitality sector in the world. Due to this reason, entrepreneurs are planning to launch new restaurants in the UK market where business can earn maximum profitability and market share due to large number of population and also available sufficient sources.
The major aim of Five Star restaurants is to earn maximum revenue by serveing high quality of food services to customers. It desires to acquire large number of customer and develop its own brand image in the UK market in hospitality sector. It will provide various food products like Indian, Mexican, Chinese, Italian and various drinks, desserts etc in the reasonable prices. It will set penetration pricing strategy under which it will provide food product and services in the lower prices. Five Star restaurant food services will afford by lower income group of customer. In addition to this, its target market is all local as well as tourist who comes from other countries. Majorly it will produce its food product according to needs of young and adult customers.
Competitive analysis: For enter and sustain in the market for long time, it is very important for enterprise to conduct competitive analysis (Achrol and Kotler, 2014). By identify and assess the rivals in the market, corporation can easily analyze ability, strength, capabilities of business. By analyzing strength of business it is very easy to develop strategies and tactics for new business. In order to analyze the competencies and capabilities of new venture, porter five force model is very useful.
- Threat from rival - As UK market is full of the hospitality business and there are various luxurious and high class restaurants. Hence, it can be said that threat from rivalry is very high for new venture Five Star restaurants.
- Bargaining power of customer - As Five Star restaurant is new business start up so bargaining power of customer is high because in the UK market there are several competitors which serves same product and services in the market. (Athey, Suckling and Rogers, 2012) Thus, if new venture sets high prices of commodity and services then customer have option to switch other restaurant. Thus, it can be said that bargaining power of customer for Five Star restaurants is high.
- Bargaining power of suppliers - The dairy produce, dough and meat vendors are major suppliers for fast food industry. The bargaining power of supplier is low since there would be number of suppliers of these products.
- Threat from new entrants - In the UK there is huge scope of hospitality business so threat from new entrants is very high for the Five star restaurant (Berthon, Pitt and Shapiro, 2012).
- Threats from substitutes - Threat of substitute for the new venture is high for Five Star restaurants. As there are various luxurious restaurants available in the UK market so customer have choice to purchase the same commodity and services from the rivals.
P2 Determination about specific tangible and intangible resources for launch a new venture
Tangible and intangible business assets are very important steps in properly valu a business. While any entrepreneur is planning to launch new venture then it is very important to consider some tangible and intangible business assets. In the context of tangible assets are those products and services that a business owns that have a physical form. In the tangible assets includes machinery, buildings, lands, vehicles, inventory (Challagalla, Murtha and Jaworski, 2014.). Every product has physical components and generates value for the business which is defining features of a tangible asset. On the other hand intangible business assets are much more difficult to assign value to because they lack a direct market to compare against. In the intangible business assets includes trademarks, domain names, customer relationship, patents, trade secrets etc.
In the context of Five Star restaurants, it will require both resources that are tangible and intangible. Tangible resource includes grains, wheat, vegetables, fruits, water etc. For accomplishing this purpose, entrepreneur will make contract with the wholesaler, supermarket, retailer etc. Furthermore, while Five Star restaurants will purchase product from specific retail store then they will take discount. In addition to this, entrepreneur will need to purchase building, land for set its physical building.
Following are some resources which will be required for opening a Five Star restaurant-
Human resource - Human resource is one of the important resources that are required by entrepreneur to establish Five Star restaurants in the UK market. In order to launch a new venture, entrepreneur will recruit high skilled candidates (Bickhoff, Hollensen and Opresnik, 2014). By using external and internal recruitment process, entrepreneur will hire new employees within the company.
Technological resource - Equipment resource is another requirement for various functional departments like human resource, marketing, finance etc. Five Star restaurants will purchase the high advanced technologies in the manufacturing, communication, distribution, promotion and advertisement activities.
Financial resource - In order to commence the business,, entrepreneur will require both internal and external source of finance. Personal savings is one of the best option for commence the new business venture. By use of personal saving, business entity can start the firm within the expected time frame. Another best option is a bank loan by which five star restaurants can take loan in the fixed monthly installment.
P3 Credible proposal to launch a new venture
In order to launch the new business venture in the market, it is very important to focus on the systematic proposal for launch. Five star restaurant will focus on the several stages for launching new venture-
Company description - In this first stage, entrepreneur required to mention the complete information regarding new business venture. In this phase entrepreneur will include all information regarding the new product, services, objective, mission, venture.
Industry analysis - In this stage entrepreneur will look upon the industry analysis under which various competitors should discussed regarding the same business. In this stage, entrepreneur can use porter five force model for analyze the capabilities, competencies and strength within the business.
Market and competition - In this stage entrepreneur will focus on the market research and business environment analysis. With help of market research and business environment analysis, entrepreneur can easily identify the actual demand of customers, their requirement regarding product and services (Craig and Campbell, 2012.). In addition to this with help of business environment analysis, entrepreneur can analyses several internal and external component regarding the business that will affect firm position in the market.
Strategies and goal - Once entrepreneur analyze the market and business environment in effective manner then in the next stage he/she will focus on the business strategies and tactics. The strategy and tactics should match to business objective. In this stage entrepreneur will also set definite goal and objective regarding business.
Product and services - In this stage entrepreneur will focus on the product and services activities such as production, Manufacturing, operation etc. In this phase, company will finally produce and manufacturing required services and product through which it will enter in the market. Corporation should also focus on the quality measure to produce high quality of product and services in the market in this stage. (Evans, 2012)
Marketing and sales - In this stage, entrepreneur should focus on the marketing and sales activities. In this stage company have to decide that which strategy will useful for launch and advertise new product and services in the market. With help of social media, email marketing, direct mail marketing, print media, new venture can bale to launch the product and services in the market.
P4 Description about skill and capabilities that required to launch the new venture
In order to launch the new venture in the UK market, entrepreneur will require skills and capabilities. In the absence of skills and capabilities it is not possible to carry out the various activities of the new business venture. Following are various skills and capabilities that required by entrepreneur for start and run the new venture-
Project Management – The ability to oversee different composes extends effectively in any size of association or business. As a rule, this comprises recognizing a particular target or objective and to deal with the assets in, for example, way that these objectives can be accomplished according to plan. Keeping in mind the end goal to create venture administration abilities an individual should be powerful building procedures and estimating the change inside as undertaking intermittently (Fullerton and Merz, 2012). Activities in a business comes in different sizes, for example, propelling the business which incorporates creating and propelling an online gateway or site of the firm, testing the administrations previously dispatch of the business, advancement of proficient client administrations and so forth. Every last sort of undertaking need successful administration of different assets, for example, cash, time and workers with a specific end goal to accomplish the hierarchical objectives as required.
Accountancy or Book keeping – The administration of figures or information is exceptionally basic for 'every sort of organizations, bookkeeping to allude to recording and breaking down the money related perspectives or exchange inside the business. This is utilized as a part of request to ascertain the yearly budgetary execution of position of a business or association (Huang and Sarigöllü, 2012). To figure the income, cost or loss of the firm the business person needs information of accounting or records. These abilities can be created by scholastic learning and rehearsing. Accounting is exceptionally valuable to give applicable data or information identified with every last exchange, inflow or surge of money. This records help in computing the monetary position and making proper systems to enhance or upgrade the execution of the business.
Leadership – The leadership is a noteworthy ability for a business or business visionary, It is critical to be a decent pioneer keeping in mind the end goal to oversee, control and direct a group of personnel to a correct heading for accomplishing association objectives for which they are cooperating in an association (Leonidou, Katsikeas and Morgan, 2013.). Leadership is a critical expertise required in propelling another dare to guarantee the powerful usefulness and fruitful task of the business. This ability is created by directing addresses, gatherings, conversing with workers and so forth. Driving a group isn't a simple errand, it needs information and involvement concerning oversee, control and direct representatives working in a group with a particular objective or goal.
Communication – Launching a business needs a compelling group of people, and this group of workers requires certain rules keeping in mind the end goal to finish an errand or activity. The business needs to impart or interface with his staff and additionally clients with different strategies, for example, messages, sends, gatherings, occasions and so on. Poor relational abilities can adversely impact the creation level of the firm. This ability can be produced by focusing on individuals' response and using compelling innovation in correspondence.
P5 Explanation about various promotional activities and channels that will help to launch new venture
Marketing is very significant activity within business unit for promote and advertise product and services in the market. Entrepreneur required to focus on several techniques and methods for promote and advertise its services and products in the UK market. With help of promotional activities, functions and techniques, entrepreneur can easily provide information to customer and promote its new business in the market. Following are some promotional activities and channels that can use by Five Star restaurant-
Display advertising – The Advertising is a most normal and powerful sort of advancement utilized by each business or association while propelling and maintaining a business. The ad would e be able to writings, pictures, sound or video which can without much of a stretch pull in clients inside a commercial center (Clapham, 2015). Commercial incorporates pennants, notices, TV advertisements and so on. These limited time exercises underpins an association in pulling in individuals to attempt the products or administrations offered by another firm. Commercial also helps in pulling in backers or financial specialists to appreciate a recently began business.
Social media marketing – The another most impacting limited time channel are web-based social networking stages, new pursuits or association use different web-based social networking stages, for example, Facebook, LinkedIn, twitter and so forth to pull in clients. A recently propelled firm can advance their products or administrations by building up an online networking record and associating with individuals specifically. Associations can make online rivalry or give rebates and coupons to chosen individuals keeping in mind the end goal to advance their business. The online networking channel is exceptionally valuable and viable as it helps an association to elevate products or administrations to a colossal group of onlookers in least time.
Offers and discounts – This is a straightforward and critical technique which can be utilized as a part of advancement of a firm, its products and administrations (Amsler and Shore, 2015). The associations can offer rebates to new and in addition existing clients to expand their deals in the market. The associations offer rebates to their clients in celebrations, different seasons and so on. Offers and rebates are the best advancements which can be utilized by a firm to expand their deals and gainfulness in a market.
Email marketing – Promotional through messages is additionally a compelling procedure utilized by association to advance their organizations and products in the market (BaruÄiÄ‡ and UmihaniÄ‡, 2016 ). The association's showcasing group build up a rundown of potential and existing clients in the market and send limited time messages with respect to new products, costs, offers and so forth. It additionally causes a business to guarantee viable reach to the clients in then market which can prompt expanded benefit of the business.
P6 Design an appropriate promotional activities plan for launch and pre launch venture
Pre-dispatch Plan – It isn't conceivable to anticipate how precisely another product or company will perform, even experienced and huge firms have both achievement and disappointments. Before propelling or discharging a firm or product it is difficult to play out a little report, for example, -
- Assessing the planning of the new business before propelling it.
- Organization can bolster sudden, quick overnight development or improvement?
- The organization should take care of the expanding demand in the event that it gets effective.
- Do the firm has successful supply lines, staff and procedures set up for taking care of the upgraded client consideration.
Assessing the product – It is critical to assess the products and administrations of the new business before its dispatch keeping in mind the end goal to guarantee that it merits propelling in a specific market. It is imperative to ensure that the products or administrations are appropriately tried, does it convey fulfilling comes about and so forth (Ensign and Woods, 2016.).
Assessing market – The another progression is to break down or assess advertise so as to recognize whether it is reasonable for the new pursuit, it is also basic for the association to distinguish whether the market has a place for its products or not.
Plan for launch – Planning for dispatch is also a most critical movement for another firm or business visionary, searching for gold dispatch incorporates the accompanying exercises -
- Research the opposition – It is extremely fundamental for an association to examine or inquire about the market rivalry, it is essential to recognize what are the products or administrations offered by the contenders to the general population. This can help in growing most advantageous techniques.
- Distinguishing the objective market – The following movement is to recognize the potential market to which can be focused to accomplish most extreme deal and benefit. It might help another firm to choose useful market for propelling its business or products.
- Creating promoting system – An all around arranged showcasing effort is imperative for an association at the season of dispatch, the refered to association needs to create proper advertising methodology to spread mindfulness in the market (Germak and Robinson, 2014). The association can utilize different stations or showcasing, for example, Television, radio, online networking and so on in their advertising exercises or plans.
Executing the dispatch – During this stage everything is arranged, now the association should be propelled. The execution of the dispatch also comprise different essential exercises as specified underneath -
- Begin advancing early – The advancement of the firm ought to be begun before the genuine propelling date, for example, mouth to mouth promoting can be utilized to make individuals mindful of the new business or association.
- Pre-propelling trials – The association can offer their products to key individuals, for example, bloggers, editors and so on who are taken after purchase an extensive group of onlookers. This aides in building fervor in a market and among the general population with respect to the products or administrations.
- Giving product information spills – This alludes to making a feeling of dramatization by releasing some data about the products in the market which additionally help in making energy and premium.
P7 Produce an productised monthly cash budget for the pre launch phase of the venture
In order to launch the new venture in the market, it is very important to focus on the systematic cash budgeting. Cash budget is a financial budget which is prepared to calculate the budgeted cash inflows and outflows during a period and the budgeted cash balance at the end of the period (Mei and Ye 2017). In the context of Five Star restaurants, there are various activities and operation which will require sufficient amount of cash. With help of systematic cash budgeting, entrepreneur can easily organize the effective business venture and address its determined objective. Following are various activities which will require effective cash budgeting. These activities are as follows-
Equipment and purchase
Recruitment and selection
Human resource training and development
Packaging and distribution
Marketing and advertisement
P8 Suggestion about an appropriate legal form for the venture
While entrepreneur is going to launch the new business venture then it is very important to consider several kinds of legal forms. There are various kinds of legal form that is sole proprietorship, partnership, corporation, general partnership etc. In the case of Five star restaurants, entrepreneur should focus on the sole proprietorship. It is also known as sole proprietorship and sole trader. It is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity. It is not a legal entity ad it need only register his and her name and secure local licenses (McGee and Peterson, 2017). Sole proprietorship is identical from its owner and its taxation is quite simple. He/she is personally liable for all debts of a sole proprietorship business.
From the entire report it has been concluded that while any business entrepreneur launch new business the there are various elements and resources that needed to consider. By help of competitive analysis, corporation can easily analyze its competencies and capabilities. It has been also concluded that by help of several promotional techniques and methods like social media, online networking, email marketing etc new venture can easily promote its services and product in the market. It has been also concluded that marketing is very significant activity within business unit for promote and advertise product and services in the market. Entrepreneur required to focus on several techniques and methods for promote and advertise its services and products in the UK market.
- Altinay, L., Paraskevas, A., & Jang, S. S. (2015). Planning research in hospitality and tourism. Routledge.
- Amsler, M. and Shore, C., 2015. Responsibilisation and leadership in the neoliberal university: a New Zealand perspective.Discourse: Studies in the Cultural Politics of Education. pp.1-15.
- Belich, J., 2015.The New Zealand wars and the Victorian interpretation of racial conflict. Auckland University Press.
- Bilton, C., & Cummings, S. (2010). Creative strategy: reconnecting business and innovation. John Wiley & Sons.