The scenario of this report determines the strategy of an entrepreneur to start up a new venture. Therefore, it is required for them to produce a business plan by associating an action plan before launching a new venture in the marketplace. In this regard, this report is going to introduce ideas and strategic plan of this organisation as:
- Evaluate the requirement of resources at the time of launching David's bakery in the potential marketplace.
- Critically analyse the requirement of skills and capabilities while introducing David's bakery in the market as well as evaluate how these might be developed or acquired?
- Identify the requirement of promotional activities as well as justify how this will support the business launch activities of David's bakery.
- Evaluate the legal requirements as well as develop a budget for David's bakery.
In present market envelopment, new venture has lots of opportunities to grow very fast and get profitability in short term. In United Kingdom, government has develop policies and rule related to promote entrepreneurial activities because they know through this they get higher GPD growth rate as well as increase employment possibility for citizen. Thus help to rise per person income and living standard. In order to start new business, entrepreneurs are make preparation related to idea generation, screening, alternative, promotional strategies, capabilities, financial resources, marketing plan and many more (Baron and Tang, 2011). In this assignment select David's bakery. Its famous for their pita bread which are made by 100% wheat. Today, David's bakery is known for their high quality product and it taste their some product are wraps, square, lavash, pizza dough, tortillas etc. In this report covers target market and segmentation for new venture with its competitive analysis. It also includes intangible as well as tangible resources and entrepreneur skills to develop new enterprise plan. Report covers several promotional strategies with legal structures and all cash flows.
P1 Identification of the target market and competitive analysis
Bakery product estimated market size is around £10, 000 (U.K. organic market report year 2016). The organic food market is continuous increase after year 2000 instead of shown decline in year 2009 recessionary period. The organic market is main sector is fresh producing and dairy products. In both categories it’s capture 53% share in overall market. There is tremendous opportunity in organic food sectors.
David's bakery:- Its provide pita bread which are made by 100% wheat and some others product are wraps, square, pizza dough, tortillas, milk products, cakes etc.It’s high quality products makes this small venture different from others (Baron and Tang, 2011).
TheTarget Market:- The market forDavid's bakeryproducts covers a large area of diverse and different age groups. Although its located at main area London in UK.it is an area where people travel to eat and hangout one that is also frequented by tourists and students. SoThe customer base will come from 3 major segments:-
- Local population–Local population of the area this is the main location of London for shopping, food and entertainment and frequently visited by local customers.
- Colleges and Universities- this area is the nearby of the several top universities and the college students are the focused target of the firm (Simon and Shrader, 2012).
- Tourism–this place is highly occupied with the hotels and entertainment facilities and highly visited by the tourist which gives the opportunity to target diverse of people of different nation.
- The food concept and product image of David's bakerywill attract 3 different customer profiles:-
- The students:- changes in lifestyle and health problems and harmful factors of junk food concern the students to go organic and stay healthy and they change their food habits and concern about their mental and physical this is consider a favorable factor for the David's bakery
- The health conscious person of any age or sex- this includes the person which is to restricted or prescribed diet due to their profession, mindset, social group, health issues or too much conscious about to healthy diet.
- Higher and Richer class of the society:-people of higher class are too much conscious about health due to various purpose- environment friendly, better taste, no pesticides, no side effect, high quality, better for animal welfare, health benefits.
The Competitive Analysis:- There are over too many local bakeries, restaurants and super market chain at U.K. that sell food at similar prices and lower price. Although at the present an obvious and big challenge in terms of market share, generate enough margin to operate business activities.It’s also shows the presence of a large and strong potential of growing in future due to change in customer attitude (Robb and Watson, 2012). A new venture has made their successful entry based on an innovative and creative concept or novelty. David's bakery will offer an innovative product in a familiar style at a competitive price. David's bakeryaggressive products strategy and plans of take-out and delivery will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear.
Competitor's Profile:- Competing with David's bakery for the target market are these categories of organic food providers:- Independent table service restaurants of similar menu and price structure. Super market Chain like; ALDI, Tesco, Asda, Morrisons, Iceland, ocado, co-op, Mark & Spencer provide some similar products and strong competitor due to their large resources and managerial skills. In UK 69% organic sales comes for supermarkets. Commercial foodservice companies serving students directly. Other independent retailers Morris, 2015 (Read and et. al., 2016).
SO David's bakery target market is highly influenced by the super market chain due to their innovative and cost effective strategy so the David's bakery owner has to design and effective competitive strategy of marketing to aware people about their offerings.
P2 Require tangible and intangible assets to start a new venture
There are many resources required to start operation of business in smoothly manner. Resources are not only required to start a business but also present and future activities respect to operations. David’s Bakery is provide a wide variety of products like:- decorative cake in numbers of flavor, shakes, beverages, milk products, sandwiches, chocolates,
Tangible assets:- It’s involves moveable and immovable assets which can be touch and feel and physical assistance. A new venture when starts its business its wants numbers of assets which depend upon the particular business requirement and financial capacity of the firm (Caselli and Negri, 2018). These are the following assets which are the start for the new venture David’s Bakery:-Place, employees, food items, bakery’s infrastructure (furniture), vehicle etc. For example Premises/equipment where the business will be situated, building to be used and services that are needed, steps taken to meet health and hygiene laws, equipment and bakery’s infrastructure.
Intangible resources:- It’s involves the kind of resources which have not any physical existence but play a pivotal role in success of the any business. This includes following assets which are trademark, goodwill, copyright, culture of the company, company brand value, recognition, customer relation etc. This can be help a firm to make a unique identity from their rivals and give competitive advantage to the firm.
For the firm like David's bakery is to build good customer relation and get their trust and make them loyal for the company offering and the physical infrastructure and quality of the products and services are the most valuable tangible and intangible assets to retain the customers for a long time and compete with their competitors.