Specific Target Markets and competitive Analysis-Food cravings restaurant

This project report will discuss about the identification of specific target market for the business and undertaking analysis of competition in market, determination of the specific intangible and tangible resources that would be needed for launching a new business, creating a proposal that will be required for the launch of new business. Also, developing a promotional plan that will required before and after the launch of business.( Kuratko, and Hornsby, 2017)

TASK 1

P1: Identifying the specific target markets and competitive analysis

Food cravings restaurant is a new venture which has decided to initiate its business in the markets of London , United Kingdom with the menu which consists of various cuisines. There are various types of dishes and cuisines which are adopted by the restaurant so as to attract a large base of customers such as Italian, American, French , Indian, Thai, Chinese etc. Starting a new venture in the Food industry is a good option as the most people like to have their dinner in the restaurants which have increased the demands of restaurants. The place which is most optimum and preferable to open their outlet is near London eye, which is remarked as most popular tourists destination and al large number of tourists visit the place on daily basis. This place offers them a golden opportunity to acquire a large base of customers and will also enable them in effectively survive in the market by offering their attractive services.

The Food cravings restaurant has been opened in partnership deed with a total of three partners. According to their plan for the set up of restaurant, they require a land of 1800 square feet in main area of London eye on a lease of at least 4 years so that they can efficiently make a space in the market of their new venture. For this purpose all the partners have acquired a fund from various sources such as their own capital and loans from bank which is around 450000 to 485000. ( Kuznetsov, and Sabel, 2011)

Objectives

• For gaining a broad market share.
• For providing genuine and good quality and quantity of food items.
• For making huge revenues and increasing the wealth of the shareholders.
• To create a popular brand image in the market and influencing customer's behaviour.

Mission: “ To provide fresh and genuine quality products and services which are also healthy for the customers and satisfying their preferences through offering diversified cuisines.

Target market

Identifying the target market of the business is essential for the entrepreneurs of the business in order to generate the revenues. If the business knows its customers, their tastes and preferences and the trends of the targeted market then it will be easy for the business to provide the products and services that will satisfy their needs. The target markets are divided on three basis known as demographic , psycho-graphic and geographic basis which are discussed as below:

Geographic: According to this market segmentation the customers are divided according to the location. This assists the business in identification of the needs and preferences of the customers according to the different locations and countries. This restaurant is opening their new outlet in London eye where wide variety of customers visit who have different preferences because they come from different countries.(Jervell, 2011)

Demographic: This market segmentation process divides the customers on the basis of age, gender , education level, marital status, religion, income level etc. These factors improves the understanding of the target market to whom the business wants to sell their products. For example, according to this division the entrepreneurs put more emphasis on the pricing strategy as the youth are the most common customers of the business.

Psycho-graphic: In this classification the target market is divided on the basis of lifestyle and personality preferences, socio-economic class. This segmentation puts more emphasis on the middle class group of customers.(Leschke,2013)

Competitive analysis:

This analysis is crucial to be done by every organisation which is trying to enter a new market. According to this analysis, the competitors that are existing in the market which are in same industry are evaluated by the business. From the analysis done, it has been observed that the so many new restaurants are entering into this industry such as Bar 61 restaurant, The led bury, Food for friends etc. These restaurants have already acquired a large customers base in the market and for acquiring the competitive advantage in the market the Food craving restaurant need to focus on their different cuisine offering and food quality to steal the customers from other restaurants.

P2: Specific tangible and Intangible resources that are required in opening a new venture

The business needs many resources which is utilised by them, that is to be obtained in a pre specified period of time in order to initiate the operations of the business in an efficient manner. These resources plays an important role in the functioning of the business and providing services to the customers in an efficient manner. These resources are classified in two broad categories namely tangible and intangible.( Hantman, and Gimmon, 2014) The tangible resources of business include labour, machinery, funds , equipments, land , food items etc. Whereas the intangible resources are those which are necessary in providing efficient services but they are not visible. These resources are explained in brief as under:

Tangible resources: These are those resources of the company which are physical in nature and assists in contribution of efforts in the functioning of the business in the market. The various types of tangible resources which assists the business in efficient functioning includes employees, food material, land and building, furniture, funds etc. One of the most crucial tangible assets is funds of the business which helps it in acquiring other assets for the operations of business.( Mollick, 2014) These resources improves the internal strength of the restaurants which in turn increases the customer base of the restaurant. Ensuring proper availability of various food items in the restaurant enables them in providing various types of cuisines to the customers thereby increasing the satisfaction level and demand of the customers.

Intangible resources: These are the resources which are not present physically in the company but offers a great value to the firm who is about to make a entry in the market. The various types of intangible assets which are included in the business are, patents, goodwill, trademark, ambience, customer relation. When the new business are developed by the entrepreneurs, they introduce new technologies and other important things into the restaurant which are required to be protected from the competitors by creating their patents and applying for trademarks on use of similar techniques by other business units. This is referred to as the intangible assets which are introduced to protect the innovative techniques adopted by the organisation in the preparation of food items and other things. The Food cravings restaurant should maintain customer relationships with the customers of the company by use of customer relationship approaches which helps the business in creating a special bonds with their regular customers such that they do not switch to other restaurant. Being loyal and true to customers helps the restaurant in retaining the customers for a longer duration which maintains the sustainability of the company.( Mullins, 2017)

TASK 2

P3: Formulating a credible proposal to launch a new venture

For the purpose of starting a new venture in the market, the entrepreneurs require to formulate a proper plan of action. The business owners knows that they also require to implement a new plan of action in order to attain the objectives and targets of the company in a better way. The planning should be done in a way that it helps in effective and unique change in the organisation which leads in achieving the better outcomes also.( Fernhaber, and Li, 2013) The right format in which the food cravings restaurant should present the details of undertaking are as follows:

P4: Capabilities and skills that are required in launching a new venture

Any business is successful not only because it have a good quality of tangible and intangible assets but also because the employees working in the organisation are skilful and have capabilities because of which the restaurant is able to operate successfully in the market.(Plehn-Dujowich, 2010) These skills of the managers and owners assists the business in tackling the situations of risk faced by the companies. The various types of skills and capabilities which the entrepreneurs should possess include:

Ability to raise Funds: Funds are required by the management of the company at every stage of the operations. If the owners do not possess the capability to raise the funds then the operations of the business will get hindered. The owners should have a pleasing personality and convincing skills so that the funds can be raised from sources like banks, financial institutions, private funders, investors etc.

Ability to manage funds: Owners of business should have the capability to manage the funds of the business so that they can earn more profits. The owners should have knowledge regarding the projects of the business and they should try to allocate the funds in those areas which provides highest returns.(Taylor, and Shrader, 2012)

Ability in identifying weaknesses and strengths: In order to be a prosperous entrepreneur, they should possess a capability to identify the strengths and weaknesses of the business which helps them in determining the understanding about the future decision making. It is important to identify these by the owners as they can utilise the strengths in achieving the targets and overcome the weaknesses of the business.

Leadership skills: The owners should possess leadership skills for motivating the employees that are working in the business to perform the best of their ability. These skills assist the owners in creating good teams in the organisation which will work together to achieve the targets of the company in given time period.(Dutta, and Merenda, 2011)

TASK 3

P5: Determining the promotional channels and activities for launching a new venture

There are various promotional channels and options that are used by the business which are being utilised by the Food craving restaurant in order to promote their business in the market. These techniques of promotions are discussed in brief as under:

Mobile Billboards: This is an effective promotional tool which can be utilised by the company for gathering the focus of the customers as this technique assists the business in providing the information related to the products of the business in innovative ways which are unique from others. The information provided using this tool include logo, stickers and punch lines etc. This leads to the formation of unique identity.

Social media platform: There are various social media websites which is used by the Food cravings restaurant in order to promote their restaurants. These days promoting through social media covers a huge base of customers with a very less cost. The popular social media platforms include Facebook, Twitter, Instagram etc.

Personal promotions: This type of promotion involve the promotion that is undertaken on the personal basis such as distribution of brochures and catalogues in the local communities. The main benefit of this type of method is that it provides personal interaction with the the customers of the business and helps in collecting feedbacks from the customers and hence the restaurant can know about the tastes and preferences of the customers.

P6: Formulation of appropriate promotional activity plan for both pre launch and after launching the venture

This is crucial for Food craving restaurant to formulate proper plan for the promotions of the business for both pre-launch and after launching the business to attract the customers in the restaurant. These plans are important because the market in which they are entering already have a lot of competitors so they need to perform proper promotions so that they can acquire customers from those restaurants to their restaurants.

Pre-launch promotions: This is the promotion activity which is to be undertaken by the company before the launching of the restaurant. This consists of the preparation of websites of the restaurant and providing a brief of the restaurant and the types of cuisines they provide, what are their prices etc.( Dimov, 2010)

Launch: After the restaurant has decided to open the store, the owners should host a opening ceremony where they should invite famous food bloggers , media representative and celebrities to gain the attention of the customers towards the restaurant. The owners can also provide different opening offers for the customers so that they come to try the restaurant. The owners can also put the advertisement of opening of restaurant in newspapers and food magazines to create a brand name among the market.

TASK 4

Cash budget for Food cravings restaurant which is prepared before its launching for a period 12 months is prepared as follows:

Cash budget of Food Cravings restaurant before launch

Cash budget after first 12-18 months

P8: An appropriate legal form for the venture

There are various legal form under which the new venture can be started. Each of these form have their own advantages and disadvantages. The legal structure of the business can be created under three following ways which are discussed as under:

Sole Proprietorship: In this type of business the a single person undertakes all the responsibilities of the business and he is the only one who introduce capital in the business and also manages the entire business on his own. Under this method the proprietor has unlimited liability in case the business is liquidated and also if the business makes profit, he is the only person who is entitled to take it.

Partnership firms: This type of business is similar to sole proprietor but the only difference is that there is more then one person in this firm. In this form two or more people come together start a business and and the capital are introduced by them equally or as decided by them. The profit and loss sharing is done among all the partners as per the share of their capital in the business. The liability of all the members is limited up to the amount that is invested by them in the capital of the business.( BarNir, 2014)

Company: The companies are created in two forms which are private or public according to the nature and size of the company. The company is entitled as a separate legal entity from the owners of the company. The companies are formed under the companies act which is formulated by the government of the country. There are many rules and regulations which are need to be adhered before the starting of a company. Get Write My essay Assignment help from Australian experts at an affordable price.

As per this report the Food cravings restaurant is partnership firm which is good choice by the owners of business. According to which the profits of the business will be divided as per the capital sharing in the firm and the losses will be limited up to the capital introduced by partners in the company.

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CONCLUSION

It has been concluded from the above project that to successfully open their venture in London they properly need to evaluate the various sources of funds and acquire skilful employees. Also the owners of the business should possess the qualities that is necessary for the functioning of the business. The different sources from where the firm can raise funds include investors , financial institutions, bank loans etc. This also do a discussion about the various legal form through which a venture can be started such as sole proprietorship, company , partnership etc.

REFERENCES:

• BarNir, A., 2014. Pre-venture managerial experience and new venture innovation: An opportunity costs perspective. Management Decision. 52(10). pp.1981-2001.
• Dimov, D., 2010. Nascent entrepreneurs and venture emergence: Opportunity confidence, human capital, and early planning. Journal of Management Studies. 47(6). pp.1123-1153.
• Dutta, D. K. , Li, J. and Merenda, M., 2011. Fostering entrepreneurship: impact of specialization and diversity in education. International Entrepreneurship and Management Journal. 7(2). pp.163-179.
• Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships: Implications for new venture internationalization. Journal of Business Venturing. 28(2). pp.316-334.
• Hantman, S. and Gimmon, E., 2014. Dare to Dream: New Venture Incubator for Older Adults. Educational Gerontology. 40(10). pp.737-744.

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