Entrepreneurship and Venture Planning Assignment Help

Entrepreneurship and Venture Planning Assignment Help

Entrepreneurship and Venture Planning Assignment Help

Introduction

An entrepreneur venture is individual start up that going to be run on the limited resources planning, taking account of risk and reward of the business. The idea of business venture would be new and innovative including the product and services. This kind of process involves the aim of limited growth and continued profitability. Moreover, it has significant impact of economic, political, technical and legal factor that influence the planning of the venture as well has effect on the business operations. The report will provide the information about planning and establishment of new business venture in UK involving the new technology to attract and retain the customers. Further report will evaluate the strategies for marketing, distribution, pricing and targeting of the people to encourage the customers. At the end, report will analyze the capital and financing requirements to maintain the flow and quality of the products and services.

About Entrepreneur Venture

In the current scenario, food and beverages industry is growing very fast and having the opportunities to establish the new venture. By analyzing the demand and effectiveness of business of food and beverages in London, I have decided to open a food restaurant. Before starting the business, I have collected information from various sources like financial and operational report of different small business organization in London as well learn the tactics by studying the entrepreneurship planning. In spite of that before opening the venture, I will evaluate the condition of local market to plan the best location for establishing the infrastructure as well licensing and registration. This is an important aspect of establishing new venture with the legal competencies and procedure. In addition to this, I have gained information about the food safety, inventory management, food standard and proper management of risk in the business to meet the objectives. In order to plan the business, different factors like arrangement of resources and positioning of the products and services (Glimcher and Fehr, 2013). According to analysis of growth of food business in UK, I have decided to establish the restaurant in prime visiting location of London that will help to meet the objectives as well support to target the people more convincing manners.   

Growth projection in food business

The graphical information suggests that, food business has potential and will grow in future as the people are investing on food and beverages. Additionally, there are numbers of food times that has significant demand in the market as globalization has changed the scenario of food sector business. The restaurant will offer UK based and limited Asian food products to attract the all type of customers to run the business.

Products and services  

In order to attract the customers and retain them, it is essential for restaurant management to have necessary information and knowledge about the need, trends, requirements and level of competition to develop the plan and strategy that helps to meet the objectives. The innovation of products and services will focus on prospect, customer needs, prices and competitive advantage. By considering the facts and requirement, management could offer the following food items:

Shakes
Hot drinks
Griddle meals
Burger
Kids meal
Egg meals

For developing and offering such products and services the organization will focus on the health, standard quality of food and consumer appeal for establishing the venture. In addition to this availability of the food products and services has significant impact on the planning and process of customer retention. For that purpose, management will analyze the health standard in planning of each food item and ensure before delivery. This is an important aspect of planning and developing the products and services list (Saaty and Vargas, 2013). Apart from that, the innovative approach of business in services will include order through website and mobile application which will save the time and improve the efficiency in the business planning. In addition to this, the customer will have the facility to get the desired products and services through home delivery and easy payment options by registering on the website of the organization. These kinds of service option will help to maintain the relation and establish the restaurant as brand in London.

Location

For opening the restaurant, it is essential to identify the location and where management can achieve the objectives more effective manners. Considering this fact, management will choose the location near centre market of London where foot fall of people is high. Moreover, international visitors and local people are visiting this location more often which will be beneficial for organization to maintain the sales and retain the customers by offering the customized services and quality food products (Honig and Samuelsson, 2012).

Location for restaurant

Targeting

The targeting strategy for opening a new venture i.e. a restaurant would be based on the identifying and understanding the local market of London. In order to attract the potential customers’ fast food, Asian food and Chinese food would be introduced in the restaurant which would attract and force them to eat over there so as to fulfil their needs and desire. The main focus of the restaurant would be to target the millions of visitors who arrives London every year for various purposes. The aim behind this is to earn more revenue from them (Wheelwright, 2010). The strategy to engage new customers, restaurant is required to build a buzz by involving regularly in the community and forming a good public relation.

In order to build its position in the local market, restaurant is required to offer certain discounts and schemes at no profit. It should offer low price feast and shelter to the businesspeople as well as the visitors so as to establish its position in the local market. Use of blog, online menu and quick delivering services with attractive discount coupons with the best way to catch the attention of the customers. These strategies are best for the restaurant because today customers usually prefer researching online before preferring a restaurant. So to facilitate such customers, it is required to develop a highly attractive, up-to-date and easily readable menu. Such stylish and attractive online menu can be developed easily by the restaurant by using some delivering sites such as Open Menu which are engage in providing the online menu for free of charge.

Online menu          

Online table reservation system and fast delivering services would also be used for capturing the market by attracting the interest of the potential customers (Yelkur, 2010). This would facilitate the customers by saving their time and money and also through this restaurant can build its good brand name in the market. This also prevents customers from facing any type of disappointment related to table, food, seating arrangement, etc. The online table reservation system assists the restaurant in having an effective management in terms of menu, presentation, seating arrangements, decoration, etc in order to achieve satisfaction level of their customers.

Online table reservation system

Segmentation

Segmentation is the process in which the restaurant will divides the market into identifiable segments which comprises related needs, requirements and demands. The segmentation strategy that would be preferred for the restaurant is demographic segmentation, socio-economic segmentation and geographic segmentation. Through geographic segmentation, the customers can be targeted by choosing the store locality where the people can be identified who love and enjoy having food outside their homes (Vivek.et.al, 2012). Through socio-economic segmentation, the restaurant can concentrate on the people especially the people belonging to the business class who spend lot of time in office and wanted lunch or dinner with a fine environment and services.

Bases of segmentation

Through demographic segmentation, it can also fragment its marketplace. Today, this is the mostly used type for isolating the market. In this, the needs and requirements of the consumers are identified on the basis of various demographic variables such as income, age, social class, lifestyle, gender, etc. This is the best segmentation strategy for the restaurant because many several secondary information or data are available which would support the organization in understanding the consumers as well as isolating the consumers into groups on the basis of demographic variables (Baker, 2014). The psycho-demographic is another segmentation strategy which can be used by the organization to isolate the market on the basis of consumer’s purchasing power. The groups are formed through this segmentation on the basis of variables such as values, personality and lifestyle.

Variables of Psycho-demographic segmentation

The consumers could be grouped on the basis of their lifestyles as it has a straight impact on their curiosity in products and services. Like for example, the person having a high lifestyle would fulfil his desire without concerning the prices of the goods. The psycho-demographic segmentation strategy is beneficial for the restaurant because it facilitates the marketers to recognize and identify the cause behind the consumers’ purchases. It also assists the marketers to develop an effective tool in order to match with the needs and demands of the consumers according to their psycho-demographic features. It is also beneficial in terms of building a brand name in the market by establishing a consumer profiles which ultimately helps in guiding in promotional efforts.

Positioning

Market positioning is required in order to establish a distinct and pleasing place for the products and services in the market in relation to products and services offered by the other competitors. For building such product place in the market, the strategy used by the restaurant should be based on customers. The motive behind the strategy which is based on the customers is to offer or provide their customers with the best and unique services than their expectations. This could be gained by achieving customers’ satisfaction as well as employee satisfaction over the competitive advantages. Consumer satisfaction could be achieved through layout, deigns, seating arrangements, decoration, services, food, interactive menus, etc (Kotler.et.al, 2015). Where else, employee satisfaction could be achieved by involving them and encouraging them to participate in the decision making process and facilitating them with personal security as well as flexibility in the workplace.

The positioning strategy for the newly established restaurant would be based on the concept of mix between the fast food, Chinese food and Asian food. This strategy would be beneficial for the organization, in order to achieve the competitive advantages from its distinctive offerings that its competitors do not offer. The positioning strategy may also involve extensive advertising campaign. The use of media such as newspaper, television, magazines, social media, etc can be used significantly. The quick and quality based services and unique offering would help in capturing a position in the market as well as achieving the competitive advantages. The positioning strategy which can be applied and which proofs to be best is the pricing positioning strategy (Maniatis, 2015). This is because being a newly established venture, it requires building an image between its potential customers and therefore, it can only be achieved by providing them i.e. the customers with more quality and featured services with great taste and satisfaction at lower or reasonable prices.

Marketing

Marketing is the most important task for the restaurant this will help the management to create the brand image of the restaurant and also assist them to increase the sale of the product. In starting stage organization will follow different kind of marketing strategy in order to settle down the product in the market. It will create the awareness of restaurant in the market and also attract the customers towards the restaurant. The management will implement innovative and attractive kind of marketing strategy for the restaurant like promotion through local media, attractive pricing discount, free delivery charges etc. Promotion through local media includes newspaper campaign this will help the restaurant to place several ads within the month to deliver the concept of restaurant to the local people (Armstrong.et.al.2012). Another media promotion is direct mail piece in this technical team of the restaurant will mail the interior pictures of the restaurant, menu card, theme nights, catering and the explanation about the concept of the restaurant. The restaurant will focus on the target marketing strategy in this the marketing officer of the restaurant will focus on the businesses for the regular lunch, dinner and coffee.

In addition this, this kind of strategy will help the organization to target the customer and also helps them to create the good customer base for the restaurant at the initial stage. After this all marketing strategy organization will adopt some additional kind of marketing strategy like discount offers on the first 15 days of the opening under this the management will provide 50% off on some of the products this strategy will help the management to attract the new clients towards the restaurant and in very beginning it will set the strong customer base for the organization. Another strategy is that London is hub of visitors then management will focus on the visitors by providing the food of their choices and preferences. The major focus of the restaurant is to provide the food on time (Schmidt.et.al.2014). To attract the customer management will book the orders and table online that helps the customer that they do not have to wait for the booking of table and also take the parcel of the food from the restaurant. The pre-booking system is the most attractive and comfortable feature for the customer this will help the management to create the good image in the mind of people. For instance restaurant provides special discount the on the bill of more than 200 pounds this will attract the customer towards the restaurant and create the positive image of the restaurant in the market.

Pricing and Budgeting

At the initial stage restaurant will adopt the customary pricing strategy to target the customer. Under this strategy management will sell the product at the same price to meet competitor price and to sustain in the market. Sometimes it may affect the profits of the organization but create the good brand image of the restaurant in the market. For example majority of restaurants are selling the hot coffee at 2 pound to meet the competition management has to sell the coffee at 2 pound. This strategy removes the pricing discrimination from the mind of the people and also creates the fair image of the organization in the mind of people. For better serving and to take the competitive advantage management will sell the products at the low prices or provide the cash discount on the billing of 200 pounds (Williams, 2013). This kind of pricing assists the management to create the brand value of the restaurant and also help them to increase the customer retention towards the restaurant.

Budgeting is the most important task to set the restaurant it helps the management make the proper investment of the money at the right place. The table below shows the investment of the money:

Table 1 Budgeting for restaurant

Particulars

Amount  in  Pound (£)

Infrastructure

4,000

Human Resource Capital

3,000

Advertising

2,000

Technical equipment

2,000

Licensing and Registration fee

500

Interior and Exterior

1,500

Painting and other fixtures

1,000

Website and mobile application

3,000

Inventory

3,000

Total

20,000

The amount is must be taken from the bank as a loan and the plan detail must be submitted to the bank that helps the management to easily get the loan on behalf of idea. The total amount of the loan is 20000 pound that is sufficient at the initial stage. The required amount is divided in various sub parts like 4000 £ for infrastructure development than 3000 £ for human resource capital that includes training and other facility to the employees like clothing for the chef, technical assistance etc. After that advertising needs 2000£ for the promotion of the restaurant etc. This all things will help the management to create the brand image of the restaurant. For purchasing of technical equipments and mobile application expenses management needs 5000 £ that helps the organization to provide good facility to the customers. The required amount would be borrowed by the management from banks as a loan (Hummel.et.al.2016).

Distribution

Management will adopt the innovative method of distribution that helps the customer to easily book the table and other food orders. For effective distribution management provides the online application facility to the customer in order to book the desired food. On mobile application management displayed the menu and customer can book the desired food from the menu and also delivery time on the application and on displayed time customer will get the order ready. For better delivery services management has adopted the delivery on time method this technique assist management to deliver the product on time. Another distribution method has been adopted by the management is “Home Delivery”. Under this facility management will provide the order at home but organization has set some terms and condition that delivery criteria is within the 5km of the restaurant not more than that (Kimes and Kies, 2012). For quality food services organization has opened one outlet in the centre of city that helps them to deliver the quality services.

 Format of Online Booking

Conclusion

From the above study, it is been considered that planning of new venture requires knowledge and information about different aspects of business that will helps to establish the organization. Report has provided the detail information about the concept of business, category and quality of the food products and business that have significant influence on the customer decision. Moreover, report has discussed about the potential location in London and reason for it, in the next part report has proposed the targeting, positioning and marketing strategy using the current situation of food business industry as well products and services of organization. At the end, report has provided the information about distribution method, budget and pricing strategy to meet the objectives as well arrangement of resources.

References

Books and journals

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2012. Marketing: an introduction. Pearson Prentice-Hall, London.

Baker, M. J. 2014. Marketing strategy and management. Palgrave Macmillan.

Glimcher, P.W. and Fehr, E. eds., 2013. Neuroeconomics: Decision making and the brain. Academic Press.

Honig, B. and Samuelsson, M., 2012. Planning and the entrepreneur: a longitudinal examination of nascent entrepreneurs in Sweden. Journal of Small Business Management, 50(3), pp.365-388.

Hummel, K., Pfaff, D. and Bisig, B., 2016. Can Transfer Pricing System Integration Be Successful? Yes, it Can!. Yes, it Can.

Kimes, S.E. and Kies, K., 2012. The Role of Multi-Restaurant Reservation Sites in Restaurant Distribution Management.

Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015.Marketing. Pearson Higher Education AU.

Maniatis, P., 2015. Investigating factors influencing consumer decision-making while choosing green products. Journal of Cleaner Production.

Saaty, T.L. and Vargas, L.G., 2013. Decision making with the analytic network process: economic, political, social and technological applications with benefits, opportunities, costs and risks (Vol. 195). Springer Science & Business Media.

Schmidt, K.M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing strategy in monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.

Vivek, S.D., Beatty, S.E. and Morgan, R.M., 2012. Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), pp.122-146.

Wheelwright, S.C., 2010. Managing new product and process development: text cases. Simon and Schuster.

Williams, T.S., 2013. The Graphic Designer's Guide to Pricing, Estimating, and Budgeting. Skyhorse Publishing, Inc..

Yelkur, R., 2010. Customer satisfaction and the services marketing mix.Journal of Professional Services Marketing, 21(1), pp.105-115.