Developing a New Business

Developing a New Business

4MBS670

4/5/2011

University of Westminster

From: Tahir Abu

To: Martin Guedalla

Word count: 3991

Rise on Mersey

Table of Contents

Executive summary 3

Management 4

Legal and Tax 4

Market research leading to USP 5

Detailed Segmentation and Competitor Analysis with the USP 7

Demographic: 7

Geographic: 7

Psychographic: 8

Behavioural: 8

Competitive analysis 9

Swot analysis 9

Sales proposal (promotional mix) 11

Flyers 11

Personal selling/Free sampling 12

Social network marketing 14

UK Facebook Age and Gender Split 15

Financial proposal 16

Conclusion 17

Appendix 1 18

Appendix 2 19

Executive summary

The business has taken out a loan for £50,000 loan from an investor; this will be paid back within 3 years with an interest rate of 30%. I will be investing £60,000 of my own capital generated through family members.

The purpose of this report will be looking at if Rise on Mersey a coffee shop would be successful in Liverpool city. The report will be exploring a detailed segmentation analysis, and analyse if there is a suitable target market. The unique selling (USP) for the business is that it will be launching herbal/fruit teas for which the market seems very weak due to the consumer perceptions being negative.

Management

The management team will consist of an assistant manager employed on a full time basis to take care of the operational side of the business for example contracts with staff and suppliers. A full time sales assistant will be hired along with part time sales assistant on a 16 hour contract to work short hours during the day and weekends. I will be the store manager dealing with promotions and marketing activities, along with offering my help on the shop floor.

Legal and Tax

Rise on Mersey will be operating as a limited liability, most small businesses such as Rise on Mersey set up as limited companies. The term ‘limited' derives from the fact that the company's finances are distinct from the personal finances of their owners (unlike the sole trader arrangement). There are additional requirements such as registration, filling annual accounts and completing annual returns to Companies House.

HM Revenues and Customs will have to be notified of any profits or taxable income along with corporation tax. For each worker at Rise on Mersey, by law must be accounted for Income Tax and NICs via the PAYE system. The tax and National Insurance law does contain some special rules that do not follow the normal principles of case law and apply to certain categories of worker in certain circumstances, so if Rise on Mersey decides to hire cleaners from another company then there will be an exemption on paying taxes.

In accordance with advice administered by the Health and Safety Executive we will commit to maintaining a safety checklist in order to avoid any injuries and accidents, while we will also follow their exact instructions in order to best ensure we achieve the required licenses.

Market research leading to USP

TGI data show that around 57% of consumers now use coffee shops: around 47% sit in compared to 8% who choose to take away. Usage has only increased by a small percentage over the last few years, with sit-in growing at a faster rate than takeaway. Age impacts usage as those that sit in tend to be older consumers and third age/retired, whilst takeaway drinkers