New venture development strategy Dissertation Example | Topics and Well Written Essays - 11750 words

New venture development strategy - Dissertation Example ary The purpose of the research is to develop a new venture strategy for pastries and cakes to the local residents in Bulgaria as well as the retailers. The project begins with the analysis of the background to the study which describes the origin of the idea for the new venture. The sudden rise in demand for home made cakes and pastries made by members of the family led to the idea of opening a confectionaries factory in the country. Consequently an analysis is done on the bakery and confectionary products market and the supply industry in Bulgaria. This analysis indicates the presence of a niche segment market consisting of the high income groups’ customers in society along with large retailers that the company would like to target. Some the cities in Bulgaria such Bansko and Velingrad are targeted because of its high expected growth of tourism and forecasted large number of visitors to the place. It is expected that as the tourism sector expand in these areas the rate of vi sits of the high income groups in society would also rise. More number of retail outlets is also expected to be opened in a potential tourist spot. These retailers could also be tapped. Moreover, cities like Pazardjik and Plovdiv demonstrates the presence of a customer base which is less sensitive towards price and more sensitive towards product qualities. The project then analyses the target market for its products which includes market segments like hotels, restaurants, food shops and catering companies. The fact that 80% of the Bulgarians prefer local products more than imported products revealed by a research conducted by the Bulgarian Chamber of Commerce makes ground for making traditional Bulgarian hand-made cakes and pastries. It shows preference of customers for local products over... It is evident from the study that the sudden and dramatic rise in interest for home-made cakes and pastries made by members of the family and the eventual distribution and spread of reputation of this family for the production of such innovative confectionery products builds grounds for the idea of development of cakes factories in Bulgaria. Bansko and Velingrad are targeted because of its high expected growth of tourism and forecasted large number of visitors to the place. Moreover, Pazardjik and Plovdiv demonstrates the presence of a customer base which is less price sensitive and more sensitive towards product qualities. The fact that 80% of the Bulgarians prefer local products more than imported products revealed by a research conducted by the Bulgarian Chamber of Commerce makes ground for making traditional Bulgarian hand-made cakes and pastries. The industrial analysis reveals the existence of a number of large players in the Bulgarian industry like Kraft’s food, Nestle, Masterfoods Bulgaria EOOD and Ferrero Spa and various small companies like Sugar Factory Kristal AD, Prestige-96 OOD, Den I Nosht OOD and Sigma Bio OOD. The chocolate confectioneries market is significantly strong in this industry. However, despite the presence of a large number of large industrial players the present company's business model seems to be lucrative and profit earning. The company's strategy to thrive on innovation and prepare traditional and handmade cakes and pastries is always to be appreciated by customers due to their consistent desire for local products and high quality products.