Bcm 211 Entrepreneurship and Innovation- As2 Assignment Sample

Bcm 211 Entrepreneurship and Innovation- As2 Assignment Sample

Introduction - Bcm 211 Entrepreneurship and Innovation- As2 Assignment Sample

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Entrepreneurship is the process of developing a new business plan or idea that bears huge risk and achieving maximum rewards against that risk. Leonidouet al. (2020) stated that innovative skills play a significant role for an entrepreneur to continue their business operation. Purpose of this business report is to develop a new entrepreneurship business plan based on innovation skills and estimate its forecast sales and profit. In the context of an innovative business plan, this report will focus on the Food truck business. In addition, this report will discuss requirements of innovative service, price, promotion, and distribution strategies.

Developing an entrepreneurial business idea

In the context of entrepreneurship business ideas, this report will focus on the Food truck business plan. Food-truck business idea is based on a food van or food cart, which will travel from one place to another, based on customer requirements and provide food services according to customer requirements. This food-truck business plan will provide Chinese, continental, Japanese and Mughal dishes. Besides these, this food truck service will provide coffee and baked products with concerns about the health and hygiene of customers. It has to be mentioned here that these food trucks will provide products by concerning the health of customers and maintain sustainability while providing food service. In terms of providing food services, these food trucks will keep in mind nutrient value of products, and they will use a minimum amount of sugar to maintain the health perspective of clients. In the context of healthy countries, this food service will provide personal dieticians for each client who will guide them and help them to maintain body weight and BMI rate. This food truck travels from one place to another based on GPS track and customer demand.

Market opportunity analysis

Marketing mix can be defined as an effective strategy for an organisation that allows them to communicate with their target customers and ensure growth of organisation. Marketing mix is based on four major elements such as price, promotion, product, and place (Thabit, and Raewf, 2018).

Figure 1: 4P’s of marketing mix

(Source: Thabit, and Raewf, 2018)

Effective marketing mix and marketing strategy allow an organisation to communicate with customers, fulfil their demand, and ensure growth and profit of the organisation. In this aspect, the report is going to undertake 4P's of marketing to develop effective marketing targets.

Justifying the need for food truck

In the context of entrepreneurship, this report is focused on a food truck business plan to provide multiple types of food services, coffee and baked food services to customers by concerning their health and hygiene.

Figure 2: Expenditure of UK consumers on cafe and restaurants

(Source: Statista.com, 2020)

Above figure indicates that in 2005 UK consumers provided around 57.19 billion towards restaurant and cafe purposes. Above figure indicates that this amount has been enacted in 2010 to 60.35 billion (Statista.com, 2020). In addition, in 2014, UK consumers towards restaurants and cafe businesses contributed around 75.64 billion. In addition, in 2016, this account has been increased to 81.95 billion (Statista.com, 2020). In 2019, consumers in the UK had been contributed approximately 100 billion towards restaurants and cafe purposes (Statista.com, 2020). By focusing on above data, it has been identified that from 2005 to 2019, contribution of UK consumers towards restaurants and cafe business gradually increased. It can be stated from the above discussion that demands for restaurants and cafes have gradually increased in UK market. In this regard, the food truck business will fulfil demand of UK consumers and improve its overall profit and growth.

On other hand, by focusing on entrepreneurship business plan, it has been identified that this food truck will provide personal dieticians' service to customers who will allow UK consumers to focus on their health and hygiene. In addition, this food truck will maintain sustainability in business operations by maintaining waste management. In addition, this business plan uses an environmentally friendly car and approach to service their target customers.

Figure 3: Demand for environment friendly services in UK

(Source: Forbes.com, 2018)

Above figure indicates that 88% of UK and US consumers stated that they prefer organisations that follow an environmentally friendly approach to provide service and products to customers (Forbes.com, 2018). In the context of the food-truck business plan, this food service will focus on the environment and finally approach to provide products and services to UK consumers. Here, it can be stated that this food truck business will achieve emerging profit. Therefore, by focusing on the above discussion, it can be stated that this food truck business will create a huge profit in the UK market.

Pricing strategy

Pricing strategy is one of essential prices, which need to be considered when launching a new product or service among target customers. Feng et al.(2019) stated that pricing targets could be classified into three major forms such as dynamic pricing, market penetration pricing, and premium pricing strategy. This literature stated that market penetration pricing strategy is one of effective pricing, which is to set a minimum price of a product when it launches into the market and, based on customer demand and requirements increase the price of that new product. In contrast, Ali et al.(2021) stated that market penetration not only helps in business opportunity but it plays a significant role to attract customer satisfaction and attract customers. In addition, this literature stated that market penetration pricing strategy played an emerging role to influence customer shopping behaviour. In addition, it has been identified that this market penetration pricings target improves the profit aspect of an organisation. High adoption and diffusion aspect are identified in context of market penetration pricing, which allows an organisation to attract customers in a very quick aspect through implementing market penetration pricing. Based on the above discussion and aspect, the food-truck business plan will choose a market penetration pricing strategy.

Distribution strategy and promotion strategy

A distribution strategy is a process of pricing products or services to target customers and obtains business profit. Distribution strategy can be classified into multiple ways; however, most common distribution strategies are direct distribution, distribution and incentive distribution.

Direct marketing

• According to Aryan et al. (2017), a direct distribution strategy is one of common and most effective princesses, which allow an organisation to provide products to its target customers. This literature stated that direct marketing is one of the significant processes to attract customers and sustain target customers for the long term.
• It has been identified that direct marketing allows an organisation to maintain customer relationship management by focusing on their needs and requirements. In addition, direct marketing allows an organisation to focus on customer attraction, customer retention, and development of customers through implementing effective relationship management.
• On the other hand, Abbu and Gopalakrishna, (2021) stated that direct marketing allows customers to directly communicate with executives or organisational and share their opinion. In this aspect, customers feel engaged and valued to implement direct marketing stories.

Therefore, by focusing on the above discussion, it can be stated that direct marketing plays a merging role for an organisation to maintain customer satisfaction. Based on advantages and contributions, the food truck business will utilise direct marketing to distribute its product and services to target customers. By focusing on the above discussion, it can be stated that direct marketing will allow these food trucks to maintain the needs and requirements of their customers by direct communication. In addition, these food trucks will identify the needs and requirements of their customers by implementing a direct distribution strategy. Therefore, it can be concluded that a direct distribution strategy will be implemented in food trucks.

Indirect marketing

• Indirect distribution allows customers to access products of an organisation from their home, and they may collect the product at any time.
• Indirect distribution is cost saving and allows customers to feel engaged with the organisation.

By focusing on the above discussion and advantages, it can be stated that indirect distribution is another major process that helps to improve customer satisfaction. Based on the above discussion, this company will implement indirect distribution where this food truck ties up with driving partners and provides the final product to the door for customers. Therefore, it can be concluded that in the context of distribution strategy, this company will implement both direct and indirect distribution methods.

Promotion strategy

Promotion is one of the most effective elements among marketing mixes. According to Thabit and Raewf, (2018), promotion allows a marketing manager to communicate with target customers and promote business messages to target customers. In the context of food truck business, it will follow both types of promotion strategies to promote products and services among target customers.

• Food truck businesses will utilise online, medium, social media to promote their products and communicate with target customers. In the context of UK consumers, it has been identified that around 45 million people utilise social media in this country (Statista.com, 2021). It has been identified the number of social media users, and internet users drastically increased in this country. Based on these data, the food-truck business plan will include an online medium to promote their product and services main target customers.
• Fraccastoroet al. (2021) stated that social media or internet promotion allows an organisation to promote their product among a huge number of customers through cost saving. Therefore, the food truck will utilise online mediums to promote products in a cost and timesaving way.
• In the context of an offline medium, this business will follow flyers, street hoarding, and TV advertisements to promote their product and service among UK consumers.

Forecasting financial statements

Cost breakdown

Segment	Cost
Raw material collection	25,000
Employees fee	10,000
Promotion cost	20,000
Maintenance cost	15,000
Product development	10,000
Delivery partner cost	10,000
Truck maintenance cost	10,000
Total	1,00,000

Table 1: Cost breakdown table

Above table is based on the cost breakdown of the food truck business. Above table indicates that total operational cost of this company will be approximately 1, 00,000. Among 1, 00,000 this company will use 25,000 for raw material collections and 10,000 for truck maintenance costs.

Figure 4: Cost breakdown

Above figure indicates the cost breakdown of the food truck company. Above figure denotes that this company will require 25000 for raw material collection. However, the Thai company will require 20,000 for promotion costs. By focusing on the above discussion, it has identified that maximum cost is required to gather raw materials.

Estimation of sales

Year	Estimation of cost
2021	1,60,000
2022	1,75,000
2023	2,00,000
2024	2,40,000
2025	2,60,000

Table 2: Estimation of sales

In the context of financial forecast, this report has been focused on sales estimation of the food truck business for the next five years. Above table indicates that in 2021 it is expected that estimated sales will be 1, 60,000, which will be increased in 2022 to 1, and 75,000.

Figure 5: Estimation of sales

Above figure indicates that in 2016 this food truck company may develop 1, 60,000, which will be increased in 2022 to 1, and 75,000. Further, the above figure denotes that in 2023 this company will generate 2,00,000. In addition, this company will develop around 2, 40,000 and 2, 60,000 in 2024 and 2025, respectively. By focusing on the above facts, it can be stated that estimation of sales of food trucks will gradually increase. Therefore, based on accessible and realistic projections, it can be stated that this company will require around 100000 as operational cost. In the next stage, this report identified that estimation of sales of this company will gradually increase from 2021 to 2025 based on its business strategy and [promotion plan. Therefore, it can be concluded that based on the above proposal, the food trucks will achieve profit, growth, and success in the UK market.

Conclusion

This report can be concluded that entrepreneurship business ideas regarding food truck business will achieve profit, growth, and sauces in the UK market through implementing effective marketing and business strategy. This report has identified that expenditure of UK customers regarding restaurant and cafe has been increased from 2005. Therefore, the food truck business will meet the need and demands of UK consumers. Further, this report has been suggested that through implementing market penetration, this company will improve market value and customer satisfaction of this company.

 Reference list

Journals

Abbu, H.R. and Gopalakrishna, P., 2021. Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry. Journal of Business Research, 125, pp.851-863.

Ali, B.J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision.International journal of Rural Development, Environment and Health Research, 5(2), pp.26-39.

Aryan, B., Pati, S. and Sundaresan, N., 2017.Advantages of Customer Analytics for SMEs in India Cover-A Case Study.In International Conference on Management and Information Systems September (Vol. 25, p. 26).

Feng, S., Hu, X., Yang, A. and Liu, J., 2019.Pricing strategy for new products with presales. Mathematical Problems in Engineering, 2019.

Fraccastoro, S., Gabrielsson, M. and Chetty, S., 2021. Social media firm-specific advantages as enablers of network embeddedness of international entrepreneurial ventures. Journal of World Business, 56(3), p.101164.

Leonidou, E., Christofi, M., Vrontis, D. and Thrassou, A., 2020.An integrative framework of stakeholder engagement for innovation management and entrepreneurship development. Journal of Business Research, 119, pp.245-258.

Thabit, T. and Raewf, M., 2018.The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).

Websites

Forbes.com, 2018.88% Of Consumers Want You To Help Them Make A Difference. Available form: [Accessed on 27/11/2021].

Statista.com, 2020.Consumer spending on restaurants and cafés in the United Kingdom (UK) from 2005 to 2020.Available form:https://www.statista.com/statistics/476637/restaurants-and-cafes-consumer-spending-uk/ [Accessed on 27/11/2021].

Statista.com, 2021.Total number and the share of population of active social media users in the United Kingdom (UK) in January 2021.Available form: https://www.statista.com/statistics/507405/uk-active-social-media-and-mobile-social-media-users/ [Accessed on 27/11/2021].