Luxury Indian Weaves Business Venture in Qatar's Saree Market Assignment Sample

Introduction Of Unit 28 Launching A New Venture Assignment

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One of the main notions behind conducting this study is to create a new business venture particularly in the market of Doha. The business that will be discussed in the study will be a saree business particularly the luxury Indian weaves and the target market selected for the same is various women segments staying in    and near Doha. The entire study will help in understanding what sort of elements and knowledge are required to run a new business along with some descriptions of legal formalities and finances.

LO1 Investigate the range of resources required to launch a new venture

P1. Idea of the business and target markets

In this segment of the study the main notion of the selected business along with the selected target market of the new venture will be discussed in detail. The business idea that has been selected to start in the business sector of Doha will be an Indian Saree boutique that will be focused on selling various fabrics of saree available throughout India like Odisha handloom, Madhubani handloom, South silk and exclusive Banarasi silk saree with various designer blouses.  Considering the Indian people including the citizen of Doha as well as their preference of wearing Indian weave sarees we have decided to open a physical boutique so that people can come in addition to buy the sarees directly from the store. Prior start this business plan we have done a lot of research on whether this will be a good idea o not as well as it has been found out that as of 2022  Indian expatriates are among the most widespread as well as constitute about 25percent of Doha's populace; approximately 7.5 lakh living there (ALB, 2022).

Considering the percentage of Indian people staying in Doha the most suitable in addition to the primary target market will be Indian ladies who are fond of draping sarees in any occasion. This boutique will help them in getting many types of Indian sarees which they cannot find easily in Doha. The secondary target market will be the Dohai ladies who like to wear saree.

Overall it can be said that the main target market for this business will be the young as well as aged ladies only who are fond of wearing Indian loom (Aghdaie, 2015).

P2:  Tangible and Intangible resources

Before starting of any new venture it is important to consider what sort of tangible and intangible resources are required to run the business. In case of a physical store the tangible and intangible resources are very different as compared to online business. For this particular business below mentioned are the list of tangible and intangible resources that will be required to start off the venture:

P3. Credible Proposal to launch a business

In order to create any sort of new business the nitty gritty of the business is creating to note down first in the form of a proposal. The proposal for the selected new venture is given below:

The selected business venture : Indian saree business

Name of the business : Indian Heriloom

M1. Competitive analysis

In  order to do the competitive analysis of the saree business in Doha it will be initially important to identify the overall saree market trend in Doha for which Porter's Five Forces technique will be used.

1. Threats of new entry : Considering the Indian apparel business in Doha it can be seen that there is very less Indian apparel boutique functioning there taking into account the preference of the people. In that case it can be said that the threat of new entry for this new venture of Indian saree will be very low as compared to other apparel business.
2. Negotiating power of the suppliers : The negotiating power of the supplier is usually relied over the degree of contractor focus. In case of this particular selected business the bargaining power of the supplier will be high due to the less availability of the supplier for the selected business market and also due to distance of the supplier they will charge higher price. It can also be said that due to limited manufacturing quantity as a result of extensive dispersion the bargaining power will be maximum in this case.
3. Threats of substitute : The risk of alternative items could be assessed in regards to the effectiveness as well as accessibility of alternatives, the expenses associated with changing, as well as the likelihood that purchasers will do so. Considering the selected business it can be said that the client will not much alternative to go for any other boutique as the option for particularly Indian Saree boutique is very less in Doha. Thus the threats of substitute will be very low for this business (Mann, 2011).
4. Power of Rivalry : The power of rivalry for this business will be medium as some of the other stores are also operating in the same business sector for example, Dulhan, Zahaa Boutique and Parthas Indian Tesxtile.
5. Power of customer : The power of customer will also be medium in this case as some the competitors are also operating in the same business but if they want high end Indian loom then will get only in this new boutique (Mudjisusatyo, 2020).

Considering the selected business the competitive advantage can be achieved by using a product differentiation strategy.  Using the product differentiation strategy the Indian saree business boutique will need to sell some of the exclusive saree weaves which are not available in Doha but Indian women are fond of having them in their wardrobe. Some of the exclusive weaves are already mentioned in the initial part of the study that will help them in achieving the competitive advantage in front of the available competitors (Dirisu, 2013).

 M2. The strengths and weaknesses of the new venture and determine areas of risk

Below mentioned is the SWOT of the selected business:

D1. Contingency planning to minimize risk

The competitive environment for the selected business has already been discussed in the competitive analysis segment where it has been identified that business will face minimum competition within the selected business of Doha as the number of competitors competing in the same business is very less. But the business will face some of the risk which has been listed in the SWOT analysis part and to deal with the risk below given is the contingency plan to decrease the mentioned threats.

LO2 Skills and capabilities required and how these might be acquired or developed

P4 Skills and capabilities required to launch a new venture

Below discussed are some of the skills and abilities that will be needed to introduce the new project:

1. Making connections : By socializing, the new venture can build strong contacts that will assist the business as the firm expands. To expand the network, consider joining an agency for businesses like Abdulla Ali Al Sulaiti or Bombay Silk Centre.
2. Leadership : Leading others becomes a necessary ability if the new company hires individuals. Taking full advantage of its personnel but instead boost production, the company would be able to encourage them. Set out effort to coach and guide the staff.
3. Delegating and ability to work under pressure : For properly organising and the delegating time, the business might need to outsource or assign tasks to others within the company. By figuring out someone you can assign jobs to, the business may focus on the ones that bring in money.
4. Problem solving ability : Every business will come with its own set of issues in that case the owner along with the other employees of the company will need to have a sound problem solving capability that will help them in dealing with the risks easily and in the long run it help in running the business smoothly (Shepherd, 202).

M3 How the Skills and capabilities might be acquired

1. In order to acquire the skills and capabilities of making connections the new venture will need to work on the communication skills of employees. Developing better communication skills will help the business is communicating with the networks in a swifter manner and will also help in explaining the main requirements of the business.
2. In order to acquire the skills of better leadership the head of the company will need to understand the implementation of critical thinking. Critical thinking is a process that assists new ventures in heading the business in the right path with proper leadership traits.
3. Also to acquire the ability to work under pressure the employees will need to go through a rigorous training which will help them in guiding to work under pressure. As working under sales target and that too in a foreign market is not an easy task thus it will require proper guidance and training to make the employees understand how to deal with the pressure.
4. Also to acquire the skills of problem solving the employees will need to learn the negotiating technique. Persuasive as well as conviction both are essential components of the ability of negotiating. Within that situation, the new business could utilise negotiation skills for straightforward goals example clients and prospects or reaching agreements with prospective mates, but it can also be helpful for obtaining last-minute assistance, reducing overheads, as well as reducing prospective points of opposition (Higgins, 2007).

D3 Supporting costs and timescales required for acquiring the skills and capabilities

In order to achieve mentioned skills and capabilities the new venture will need certain amount of costing and timescale. Below mentioned is the time scale and costing required for the mentioned business venture:

LO3 Explain and justify appropriate promotional activities to support the launch

P5 Explain different promotional activities and channels that will support the launch and justify their choice

There are some different types of promotional activities and channels that can be used for supporting the launch of our new venture Indian Saree Boutique.

Advertising : In order to promote our sarees, we will first advertise different types, which we make available in our shops. Several local newspapers and websites will serve as advertising media. Introducing new products to target markets can be made easier by advertising on websites and social networks in the age of digital marketing (Deepa, and Geeta, 2021). It helps the business to grow at a very initial stage in the new marketplace. For example, the Indian Saree Boutique can provide certain introductory offers, and events for the customers. 

Direct Marketing : By sending some employees to perform door-to-door marketing in different areas, the owner of sarees will do some face-to-face marketing. Through this promotion activity, the marketer is directly aware of the intentions and interests of the customers. In addition to this, the new venture can use different options for example email marketing, telemarketing and direct selling of the products to the new market.

Sales Promotion : As part of our sales promotion, we will also use discount coupons, money-off coupons, free samples, sales calls, and prize competitions (Erlangga, 2022). We will implement sales promotion strategies for introducing our products and boosting their sales in the short run. For example, Indian Saree Boutique can offer free trial of products, first purchase coupons along with the buy one gets one free offer. It helps to improve their way of selling products to a completely new market.

P6 Develop an appropriate promotional activities plan for both launch and pre-launch.

If we want our new venture "Indian Saree Boutique" to be successful, we need to have a well-planned promotional strategy (Boyce, and et.al., 2019). Without a plan for appropriate promotional work, the new venture's products may fail to reach the target market. To attract the attention of the target economy, we will use the following promotional components as pieces of our marketing activity plan:

Advertising : In the months prior to the debut of our brand-new venture, The Indian Saree Boutique has already begun advertising in newspapers, publications, handbills, social networking sites, and other popular websites. Following the new company's launch, a new ad campaign will be started (Chi, Chang, and Chang, 2021).

Public Relations : We intend to hire around fifteen people with good communication and interpersonal skills to handle public relations since it can prove to be a very effective promotional technique at a very low cost. A field visit by one of these employees will enable them to build favorable relationships with potential customers and show them samples of the various kinds and styles of sarees they offer. The public relation activities are considered as a part of pre-launch activities as well to provide information of products to the customers.

Personal Selling : A personal sale is when a product or service is sold directly to the customer by the sales force. As part of our business's early operations, we will employ some sales groups to introduce our new products to potential customers (Arslandere, Tuncer, and Serkan, 2020).

Sales Promotion : By providing discounts on the price or by providing extra quantities at the same price, sales promotions boost the sales of a company through a short-term method. In order to increase sales of our new products during the initial stages of our business, we will provide free samples and discounts during sales promotions. We will follow the strategies immediately after we launch the new venture and for about one month after that.

M4 Evaluate an appropriate promotional activities plan for both launch and pre-launch.

In terms of evaluating promotional activities plan for the launch and pre-launch of the business. The use of a promotional mix helps the business during launch and pre-launch helps the business to grow in the right direction. Offering a different introductory offer for the new customer is considered as a huge basis for setting up a new business (Miladinova, 2020). New businesses always have limited budgets, so they must adopt cost-effective promotion techniques. You can get more fans and followers for your business by running social media contests on your social media channels. Marketers must determine which options will reach the most receptive audience based on the costs, timing, and demographics of each channel.

Targeting the audience and doing some personal selling along with the direct marketing of the product will help the business to make new customers and provide knowledge about the different products. It is important to develop some content for engaging the customers during launch and pre-launch which is considered one of the most important parts of promotional activities (Ghoshal, 2019). Adding layers of users is a great way to use what you've learned from the launch. The continued procedure of refining the selection helps to manage the new segment of the audience. The promotional activities of launch and pre-launch of the product are one of the major parts to consider for the development and enhancement in the number of customers. The ladies of Doha are fond of Indian Sarees so it will be fruitful for the growth of a business. The different promotional activities like advertising, sales promotion, direct selling, and personal selling are primary aspects of handling the new venture in Doha (Rajasekar, and Britto, 2022).

D3 Critically evaluates the different promotional activities to support justifications.

The evaluation of various promotional activities mainly includes sales promotion, which is very useful for business success and profit. Documenting the entire process, from planning to execution and analysis, is critical to advertising success. Profitability, sales volume, customer satisfaction, and goal achievement are the only measures that accurately determine whether your ads are truly effective. Today, social media activity is on the rise, which is one of the biggest advances in driving sales (Udegbe and Aliu, 2021). Promotional activities like product promotion on various platforms help in growing the business. Online advertising and social media play a very important role in attracting a wide range of customers. The main goal of the promotional activity is to raise awareness among Dohai women about the varying distances of Indian sarees, which will aid in the release of this new venture. Even so, as the business grows, the influence of advertising can be understood, allowing us to analyse the actual worth of the advertisement. As a result, it can be evaluated using commercial sales, which provide a clear picture of the outcomes of promotional campaigns.

LO4 Appropriate legal forms and compile a budget for launch

P7 Itemized monthly cash budget for the pre-launch phase of the venture and the first 12–18 months preceding launch

The creation of a pre-launch budget can be a tricky one because most small because most small businesses do not have the means to perform such a long-time assumption. Small business lacks both financial as well as physical resources for the estimation of a pre-determined budget that is going to support the firm for almost 12-18 months during the most crucial time. Th pre-launch aspect is the most crucial time of any firm because it is the time when a firm is actually entering a market and the impression it makes through its pre-launch activities will go on to determine the footfall and revenue generation of the firm as a whole. A pre-launch elongated budget analysis requires hardcore market research, this includes the determination of the capital costs and recurring costs of the firm, service costs, promotional costs, rents, insurance and so on. The following table will attempt to divide the costs of the firm into 18 months through division into half yearly segments:

Below given is the twelve-month tenure monthly cost:

P8 Suggest an appropriate legal form for the venture stating why it has been chosen

Small businesses and startups are the present talk of the world. Governments and private investors are immensely investing in these small-medium enterprises (SMEs) since they contribute quite an enormous amount to the GDP of the world. However, the legalities of these startups or SMEs are quite complicated in nature. Such firms need to be increasingly careful regarding their legal proceedings as bigger companies are always looking for chances to engulf these SMEs whenever they start delivering profits as a whole. In the case of many small businesses the owners go for sole proprietorship. This is the process where the owner inaugurates the company under his or her own name. the taxes are paid on the personal income of the profits earned by the proprietor. Sole proprietorships are the most common ones among the aspects of legalities in small businesses. Due to the lack of proper regulations of the government, this form of legality had limited liability, hence in case of losses the proprietor can escape the or dismantle the firm very quickly as there is severe lack of government involvement within the firm. Since these firms do not have much government involvement, they are mostly outcasted from government protection and benefits as a whole. When the firm grows sole proprietors mostly end up turning their firm into a corporation of a limited liability entity for manage the enhanced audits, process and operations of the firm. Hence sole proprietorship is the most beneficial especially in an alien country where there are enhanced risks(Shaposhnykov, K. and Holovko, O., 2019).      

M5 Justify an itemized monthly cash budget showing one off costs, ongoing costs and anticipated income post- and pre-launch

Any startup or small business has costings, some of them are recurring in nature, this means that they occur regularly post designated intervals and some of them are one time investment that occur only once or twice in the life time of the firm. This section will be illuminating the costs that have been estimated for this business:

• Capital costs: Capital costs are fixed costs and are generally one-time costs, this includes purchase of land, equipment, construction of certain arenas, interiors, exteriors and so on. Such costs are recurring only when there is a requirement for maintainance, however the frequency of occurrence of maintainance is relatively low and hence these are taken to be one-time investments.
• Recurring costs: these are costs that occur mostly every month, they include electricity bills, water bills, rent of building, taxes and so on.
• Service Cost: Service cost is the expenditure that a firm has to incur on employment. In other words, it is the salary that the firm needs to pay to its employees. The salary range of employees differ as well from the management to the labor section(Mishra 2022).
• Promotional Costs: A new firm requires a strong marketing strategy especially when it is entering a new market altogether. In the present times, marketing needs to be done through both traditional and digital means to reach the masses, to understand market segregation and to reach target customers. hence the requirement of promotional costs that will be used in advertisement is inevitable.
• Licenses and clearances: Establishing a business in any country requires certain permissions from the governments, some of them are one time however some require occasional renewal and hence this investment is necessary.
• Hosting launching events: this can be a part of the promotional costs but event management in itself is a different plethora and is extremely important in nature to create a buzz in the market and effective market invasion. Hosting launching events will also help the firm to understand its immediate competition as well as the expectations that the customer base of the new country has from it. This provides wholesome benefit in the establishment as well as the organic development of the firm(Anayo 2021)

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