Starting A Business in London and Explaining the Fundamentals of Marketing Assignment Sample

Introduction of Starting A Business in London and Explaining the Fundamentals of Marketing Assignment

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A marketing plan refers to the advertising strategy of a business that a company implements to launch, promote and sell its products as well as services. It does not matter if it is a big or small company; a marketing plan holds great importance for both types of companies. The main purpose of a marketing plan is to make sure that the planned marketing activities for a particular product or service are relevant and those are suitable for the timeframe, too (Girton, 2018). If a company can successfully implement its marketing plan, it becomes easy for the organization to achieve its objectives. Globalization has opened up so many new business opportunities, but it is also responsible for making the competition higher. In order to have a sustainable and successful business today, everyone has to come up with proper planning and great marketing strategies. The first and foremost thing a company should do before getting the funding for the business is to conduct a series of market research in order to gain a concept over the market it intends to penetrate. This report is going to present an overview of the business idea of the researcher and its marketing plan, which will have a PESTLE analysis, the plan to gain competitive advantage and expand its business. The business idea is to develop a Tea Bar in the middle of London which will provide free Wi-Fi to its customers.

Reasons Behind This Business Idea

Preparing tea is not a complicated task; it requires hot water that needs to be poured over the tea leaves. Tea leaves are acquired from a plant called Camellia Sinensis. Tea is considered one of the famous and second most consumed hot beverages in the whole world. Based on the preferences of different people, the types of tea vary. One of the major reasons for choosing a business idea of a Tea Bar in London is that the people in the U.K. prefer drinking tea a lot. The U.K. is considered one of the biggest tea exporters of the European market as it generates more than ?1.5 billion per year by exporting tea. There are some predictions about the tea market that makes the idea of a Tea Bar a hit. As predicted by Das and Zirmire (2018), there will be a rise in the tea market worldwide, and that will eventually leave a potential and positive impact on the U.K. market; it is to be believed that the U.K. tea market will be able to make almost $2 billion by the end of 2025. On the other hand, Kumarihami and Song (2018) mentioned that the percentage of consuming tea will increase by 14% in 2025. This indicates that apart from making and consuming tea in the household, people will consume tea outside too. This will eventually make a 0.3 times growth of the tea market by the end of 2023. If the Covid-19 outbreak was not a serious concern, then the profit could have increased more for the entire tea market of the world. However, there were many times when the government had to impose complete lockdowns in the market that affected the delivery of food products and services. However, from 2020 even when the food service was delayed due to the Coronavirus outbreak and lockdown, the consumption of tea as a hot beverage increased (Chag, Chaudhary, and Saldanha, 2020). This indeed creates a great opportunity for the researcher to have the motivation to open a Tea Bar in the center of London that will provide free Wi-Fi as well as will have some basic breakfast and snacks items.

The Revenue of The Tea Market of the U.K., Source: (Statista. com,2021)

The process to Generate the Business Idea

In order to give life to the business idea, it is necessary to conduct market research and collect relevant data and information. Then it is necessary to observe and analyze the results to plan further. Due to digitalization, there are chances to understand the perception of the customers online, and that is why online surveys and internet research can be conducted. The main purpose of the Tea Bar will be to provide tea the way the customers prefer. Apart from the local people of London, other targeted customers of the Tea Bar will be Asian, preferably Indian and African. Apart from that, people who are willing to taste different flavors of tea can also come and visit the Tea Bar. One of the major attractions of the Tea Bar will be the decoration. It will be decorated as Indian village style, and the drink and food will be served in earthen pots and bamboo plates. It will give an authentic vibe to the Tea Bar, and most importantly, the earthen pots will be a healthier option. The Tea Bar will also provide free Wi-Fi to the customers, so office-goers, freelancers, students can do their work while having a cup of warm tea. Another idea is to replace sugar in the tea; instead, the store will provide some natural sweetener in the tea to make it more healthy for the consumers. However, it does not mean that the customers cannot have sugar if they prefer to have it.

In order to collect data to understand the market condition, it is necessary to let the consumers know about the products the Tea Bar will serve. As the main aim of this business is to attract customers by positioning different flavors of tea as the primary product, an STP analysis can be done.

Segmentation: First of all, it is necessary to segment the market effectively and accurately to get the desired set of results in an efficient manner. As already mentioned, the Tea Bar will be located in the middle of London. As London has I.T. sectors, large organizations, and universities, the Tea Bar will get the attention of the crowd it deserves.

Targeting: Local people of London, Asian and African– these are the common target for the Tea Bar. Consumers can be of any age; they can be aged, middle-aged, or teenagers.

Office-goers, freelancers, students, retired persons, everyone can visit the shop and enjoy a cup of tea along with some snacks like freshly baked cookies pastries. The shop will also offer basic breakfast items like sandwiches, cereal bowls, baked beans, bread.

Positioning: Like any other company, the Tea Bar in London also wants to serve more customers in order to earn a good amount of profit. For the same reason, the main idea will be to put the business in close proximity to mainly Asians, especially Indian and African communities. In order to attract the attention of the customers, the Tea Bar will be decorated in such a way that it would radiate an authentic Indian village-style vibe. Soft music and free Wi-Fi will be made available for the customers so that they can complete their jobs or assignments without any disturbance. The price of a cup of tea will start from 50 cents.

Feasibility: According to Sudiartini et al. (2020), a feasibility study is required to be completed by a company in order to ensure positive growth in the future. The products the Tea Bar will offer are different types of tea such as black, orthodox, green, iced, milk tea. The employees will be trained professionally in order to handle or serve the customers. Here is a budget plan for the Tea Bar. The initial capital can be acquired from the savings of the researcher or by applying for a loan.

Potential Market Opportunities

PESTLE Analysis

According to Bohne (2021), it has been discovered that in terms of daily consumed items, preparing and having tea at home always get accounted for the highest consumption value. Not only as a hot beverage, iced tea or ready-to-drink teas are also get accounted for the highest rates of outside-the-home consumption in the United Kingdom. Most importantly, as Zahn et al. (2019) opined, there is a history of almost 361 years that depicts the rise of the consumption of tea.

Competition and Competitive Advantages

The Tea industry of the U.K. is one of the most promising industries in the country. People in London do not only drink tea because they like drinking it; drinking tea as a hot beverage has some physical or health benefits too. Drinking Orthodox tea and green tea is helpful as it reduces stress. According to Nursodik, Santoso, and Nurfadillah (2021), if the market of Western Europe can be considered, it can be said that the UK is the largest tea consumer (almost 63%). As people in the U.K. consume a lot of tea, that is why there are so many tea bars are already there. So, the competition can be on the higher side. However, the proposed Tea Bar of London can get some competitive advantages because it will have some well-defined strategy to attract people. As already mentioned, the tea will be served in an earthen pot which will make the tea more aromatic and healthy. Underprivileged people will be hired to make those earthen pots. Apart from that, the Tea Bar will prioritize hiring physically challenged people as its employees. All of the details will be made public using social media platforms. Short videos on the health benefits of drinking tea will be circulated over social media. On the other hand, promotional campaigns will include attractive discounts for the consumers who can refer other friends to come to visit the shop to have a cup of tea. Additionally, the Tea Bar will also have an app and a website that will have details of all the items it offers, and it will also include a spill-proof pot that can keep the tea warm for an hour. Apart from all of these, it is also necessary to maintain professional behavior with the customers and provide good quality products to them. If a business is not true to its customers, then no matter how strong promotional campaigns it invests in, all the efforts will go in vain.

Suggestions for the target market

The mission of the proposed Tea bar is to promote healthy eating habits among the people that live in London. The store will offer varieties of flavored tea imported from top countries that have the goodwill of producing good quality tea. The tea will be served in clay pots that will promote an environmental-friendly attitude. As a result of the same, the customers can have better opportunities to improve their health efficiently. Moreover, the company also aims to maintain positive business growth, and that is why it intends to have a goal of capturing at least 20% of the tea industry in London by the year 2030. So, in order to analyze the fundamentals of marketing, the business plan has all the relevant factors mentioned in the report:

• Marketing Mix.
• Vision
• Feasibility
• STP
• PESTLE analysis
• Development strategies
• Sustainable development planning.

Conclusion

This report concludes that the proposed Tea Bar will be located at the center of London, and because of the location, it can ensure positive growth in the future by maintaining sustainability. The USP of the Tea Bar is obviously different flavors of tea that will be served in earthen or clay pots. Apart from that, organic honey or other natural sweeteners will be used, which will replace the sugar. All in all, the Tea Bar is all about promoting healthy eating habits.

References

Bohne, H., 2021. Uniqueness of tea traditions and impacts on tourism: the East Frisian tea culture. International Journal of Culture, Tourism and Hospitality Research.

Bronskaia, T.A., 2018. Marketing environment analysis as the key component of the company’s competitiveness evaluation.

Chag, J., Chaudhury, S. and Saldanha, D., 2020. Economic and psychological impact of COVID-19 lockdown: Strategies to combat the crisis. Industrial Psychiatry Journal, 29(2), p.362.

Charter, M. ed., 2018. Designing for the circular economy. Routledge.

Das, P. and Zirmire, J., 2018. Tea Industry in India: Current trends and future prospective. J Pharmacogn Phytochem, 7, pp.407-9.

Girton, C., 2018. Creating a marketing plan with a marketing team of one.

Kumarihami, H.P.C. and Song, K.J., 2018. Review on challenges and opportunities in global tea industry. ?????? ?, 24(3).

Nursodik, H., Santoso, S.I. and Nurfadillah, S., 2021. Competitiveness and Determining Factors of Indonesian Tea Export Volume in the World Market. HABITAT, 32(3), pp.163-172.

Published by Statista Research Department & 20, O., 2021. U.K.: Revenue of tea market 2012-2025. Statista. Available at: https://www.statista.com/forecasts/1270653/revenue-tea-the-united-kingdom-revenue [Accessed March 15, 2022].

Sudiartini, N.W.A., Astari, A.A.E., Kardini, N.L. and Dhani, Y.R., 2020. The feasibility study of coffee house business opportunity in COVID-19 pandemic: a case study at kulo coffee shop pemogan. International Research Journal of Management, I.T. and Social Sciences, 7(5), pp.38-45.

Zahn, R., Perry, N., Perry, E. and Mukaetova-Ladinska, E.B., 2019. Use of herbal medicines: Pilot survey of U.K. users' views. Complementary therapies in medicine, 44, pp.83-90.