Business Environment

Order Description
This is our Business idea :
We are a start-up company named Sweet land. We will be selling?traditional Turkish sweets such as Baklava, Bici Bici in a van. There are existing examples to which we can refer: Yasar Halim and Turkish Deli.?Our sweets will be handmade. We will be selling our products in big?markets in London such as Borough Market, Portobello Market and Brick lane. ?As far as our customers are concerned, we are mostly targeting customers who are from middle east countries and are familiar with Turkish sweets. Sweet land will be more pursued as an entrepreneurial firm , it will begin as a small business offering a wide variety of Turkish sweets. Sweet land will be a lean start-up company as we will be able to test the products that we are offering easily and then we will be able to learn quickly before we take any further decision. We mainly choose to set up a lean start-up because it is the only way that we can invest with little capital and build brand awareness before?expanding the business. we can also observe more and measure customer behaviour. ?Sweet land is a copy cat , we do not have any innovation for the moment, we are focusing mainly on building brand awareness and satisfying the customers needs and wants . We will be selling in the UK in the beginning. Our business?is a Partnership as it is only 3 people working in Sweet land, Profits and liabilities will be shared equally between all of partners. We will compete with our competitors on both Price and Quality. We will cut prices to penetrate the market this will be our main pricing strategy. Skilled Turkish workers will be making the sweets, so we will provide high quality for all sweets. Our?company will be advertised through social media , mainly, Instagram . ?Many lean start -ups succeeded in building brand awareness and?maximising their profits, we can mention Padella the Italian restaurant, as an example. It started first with selling Pasta in a small van in Borough market , now Padella succeeded?in building brand awareness and expanding the business as it turned into a big restaurant?in Borough. According to the Guardian(2016), Padella succeeded in building customer loyalty and creating a good atmosphere . People are happy with the prices and with the quality of pasta served in the restaurant. ?As mentioned before, Sweet land will offer affordable prices for customers , this will push them to try our treats and test them, we are sure that they will appreciate the quality that we will be offering, Also we will launch a Light Range of Baklava , which have no added sugar , and are suitable for diabetics and contain 15% fewer calories than regular Baklava. Our policy is to maintain the quality of our products through selecting the best ingredients: dates, almonds, pistachios, cashews and walnuts. All sweets are handmade and prepared in advance . we will be selling in a Van.

Market Segmentation
For Sweet Land business venture, it is necessary to make market segmentation in order to reach target customers in a more efficient way. For efficient customer reach, it is beneficial to use several types of segmentation. The first type will be geographic segmentation, which means dividing the market by several areas (Kotler & Armstrong p.191). As our products will be sold in London only, it is possible to divide the city into many geographical areas and use different strategies for each area. In particular, it is possible to divide London by areas and districts depending on people who represent the largest population of each district. In particular, areas will be determined based on the nationalities of people who live there, because our products, Turkish sweets, are mostly targeted on people based on their nationality. In areas where many people from Middle East live, products will be common for them and remind them about their motherland, while in areas where Europeans live, products will be new and exotic for most customers.
Demographic segmentation will also be used, meaning that potential customers will be divided by nationality, age, income level and other dimensions (Kotler & Armstrong p.192). As for nationality, it is diverse for London, and depending on the nationality, customers may have different preferences concerning our products. In particular, the largest ethnic groups of London include Indians, Polish, Pakistani, Bangladeshi, Nigerians and some others (London\’s Poverty Profile n.d.). Thus, our market will be segmented by nationalities, including the largest groups. Product perception will be different for different nationalities. For people from Middle East, traditional Turkish sweets are common products. Thus, they may buy our products to remember their home countries and appeal to their traditions. For British, other Europeans and other nationalities, traditional Turkish sweets are not common and in some way exotic. Nevertheless, they are likely to be interested in our products as well, because people tend to try something new and exotic. For different ethnical groups, we may use different promotional techniques. For instance, people from Middle East may need as active promotion as for British, because they are familiar with traditional Turkish sweets.
For demographic market segmentation, we will also use segmentation by age. In London, the largest amount of population includes people from 24 to 54, and the percentage of young people from 19 to 39 is higher in Inner London that in outer London (London\’s Poverty Profile 2014). Depending on age, people may have different attitudes to our products, and different promotion techniques can be used. In particular, it is possible that younger people are more loyal to our products compared to people of elder ages.
Finally, for demographic segmentation, we will also use segmentation by income level. In London, most people are richer compared to other regions of the UK, because average wages are higher in the capital (Hudson 2015). However, there are still many people with different income levels. Sweets are not necessities, and they are handmade and cannot be very cheap. Thus, it is possible to use market segmentation by income levels, because people with higher income levels will be more likely to buy our products.
Targeting Specific Segments
As it is clear from the market segmentation, the market has many potential segments by different segmentation types. Nevertheless, as our business is small and has limited resources, we should select several target sub-segments for which demand and sales are likely to be the highest. Geographic segmentation should be considered. For instance, for initial offering of our products, it would be beneficial to select as target segments the districts where there are many people from Turkey and other Middle East countries, such as Hackney, Haringey and Enfield (Robinson 2016). Thus, our first target market sub-segment will include people from districts with large population of people from Middle East as very attractive. In those districts, it will be relatively easy to reach potential customers, because they know well Turkish sweets and are likely to purchase them as the traditional products. Thus, our business will become popular quickly, because we will offer products in the areas with many potential customers. For all segments, we will use differentiated marketing strategy, because potential customers are different, and different messages and techniques should be used to reach them (Newton n.d.). In particular, marketing strategy will use some techniques to make the product attractive for people who already know about it and like it, as well as to remind them about the product.
As for ethnical segmentation, we will focus not only on people from Middle East. We will have one more target segment that includes native British, London citizens from other countries and tourists who visit London. Tourists are especially important, because their number is growing in London, and it reached 31.5 million during 2015 (Coldwell 2016). The second sub-segment will include people who live in London but are not from Middle East, as well as tourists. This segment is attractive, because modern people usually want to try something new and exotic, and Turkish sweets can be interesting to them as a new thing. For this segment, we will use differentiated marketing strategy with specific features that can be attractive for people of not Middle East origin.
Segments will be also selected by age of consumers. As it was already mentioned, in London, percentage of young people is high. Thus, for our business, it would be beneficial to select people from 24 to 54 as target market, without regards to ethnicities. Those ages are the best to select, because young people are usually more willing to try new products. Moreover, they often have children, and children like sweets and may ask parents to buy them. Thus, differentiated strategy for the third sub-segment will be focused on the interests of youth and children. Segmentation by income levels will not be used, because people in London are in average richer compared to others. In general, target market segment for our business will include people in districts with large Middle East population, of different ethnicities, both Londoners and tourists, and mostly young people and children.
Porters Five Forces
Bargaining power of suppliers is of medium level, because products for Turkish sweets are quite common. Nuts, sugar, fruits and other foods can be purchased from different vendors. Thus, if a loyal vendor sets too high prices or bad conditions, we can find new vendor for our products.
Bargaining power of customers is strong. Customers have particular preferences in terms of sweets, and we should follow them in order to satisfy them and be competitive. In particular, people from Middle East may require traditional taste of sweets, while people from other regions may require a wide choice of flavors and reasonable prices.
Power of competitors is strong, because the choice of sweets is very wide, and differentiation and branding are required to be better than competitors.
Threat of substitutes is low. It is hard to replace sweets with something else. They are specific products that do not have direct analogues.
Threat of new entrants is medium. It may be hard to establish a recognized brand, but it is quite easy to open small sweet whops.
Product Positioning
As target segment selected includes people of different social groups, positioning should be based on differentiated marketing strategy, and positioning may differ for various sub-groups of the target market. For example, for the people from Middle East, our sweets will be positioned and advertised as traditional products that are similar to those they tasted in their native countries. For people from other regions, native British and tourists, our products will be positioned and promoted as something unique and exotic that should be tried because it is wonderful and delicious. Positioning for each target group will be supported by advertising and promotion, and we will focus on different campaigns for each group, if possible.
In order to be a good competitor, we should decide how to compete in the market and what point of difference to develop. There are many producers of sweets, and we should design something to be unique and find many loyal customers quickly. We will compete due to specific points of difference offered by our business: traditional Turkish sweets that are not sold by most competitors, only natural ingredients used in production and handmade production that is quite rare in our age. Our value proposition is more for more, because we offer premium and unique products for prices that are higher than average.
Perceptual map for our business will traditionally include a chart where the product is mapped based on two characteristics (Business Dictionary n.d.). For Sweet Land, perceptual map will have two graphs: price level (from low to high) and quality (from low to premium) (see Fig. 1). Our business will represent products with price level close to high one, because handmade sweets produced of natural ingredients, including expensive fruits and nuts, cannot be cheap by their nature. Of course, we will try to make prices reasonable, but they will not be low. Quality will be high and close to premium level:
Figure 1. Perceptual Map

YOU SHOULD TH?S MARKET?NG M?X SECT?ON
The Marketing Mix section :

This section should provide an holistic account of your marketing activities in support of your entry to the market. It should draw on the value proposition developed in Section 2. The key question here is how will you tailor the activities of your company to the \’ideal customer/s\’ identified in Section 2. Each element should make this clear. The section should provide the following:
1. A detailed exploration of the 7Ps (or, if you would prefer, the 7Cs) of the marketing mix:
a. Product
i. Is this a tangible, or intangible good? You might wish to refer to Kotlers layers model here
b. Price
i. What kind of strategy & tactics will you pursue? Why? You may wish to refer to market structure here.
c. Place
i. Through what kind of distribution channel will you make the product available?
d. Promotion
i. How will you gain the attention of your target segments? You might like to refer to the AIDA framework here.
e. People
i. Who will provide key operations?
f. Process
i. What activities must you complete in order to provide the product/service to the consumer?
g. Physical environment/evidence
i. In what kind of environment will the purchase be made?

References: Harvard Style
At least 9 references
1: In-text:
From a reputable web resource
A tie-in with another brand or with a celebrity ambassador can help brands to stand out from the crowd, or to weather negative demand conditions (Wood, Z. The Guardian, 12.05.17).
* N.b you should add a hyperlink here, so that we can visit the page directly.
From a journal article
Recently, scholars have begun to explore the concept of the born global start-up (Choquett, E., Rask, M., Sala, D., Schroder, P., 2017: 263).
2: In your bibliography:
Choquett, E., Rask, M., Sala, D., Schroder, P., Born Globals is there fire behind the smoke, International Business Review Vol. 16, no. 3, 2017.
Wood, Z. Idris Elba and falling Pound Help Superdry emerge as Brexit Winner, The Guardian, 12.05.17 https://www.theguardian.com/business/2017/may/11/fall-in-sterling-helps-superdry-sales-to-fly Accessed 12.05.17
Your bibliography must be organised alphabetically
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