lOMoARcPSD|4748102

BSBMKG501 Identify and evaluate marketing

opportunities
Assessment Task 1:
Part A - Report
Part B - Presentation Identify marketing opportunities

Assessment 1
Part A
Part A requires you to identify and evaluate two opportunities for your chosen organization.
BBQ fun company is required for the following analysis. As per the information the company
was established in 2009 by current CEO, Pat Mifsud. BBQfun offers an extensive product
range, incorporating both local and imported goods. Since 2010, the increasingly competitive
retail environment, technological change, changes in consumer buying patterns and consumer
confidence has led to disappointing sales. However, BBQfun intends to return to healthy sales
of $11 million in 2012 through building on its organizational strengths, through targeted
marketing strategies aimed at key segments and through exploiting marketing opportunities.
Currently, BBQfun operates two stores, one in Brisbane (Kenmore), and one on the Gold
Coast. BBQfun is seeking business and marketing opportunities that could lead to interstate or
national expansion if viable and scalable

1. Choose an organization to analyze, identify two marketing opportunities for the

organization you have chosen. To identify opportunities, analyze information on
your chosen organization’s market and business needs, for example:
a) Comparative market information
BBQ fun sees its moderate pricing, extensive and high-quality product range, great
customer service, and product guarantees as key offerings to gain traction with a
market dominated by low-quality providers. The basic market need is for quality,
fashionable and unique outdoor lifestyle items that fulfil the house-proud needs of our
target marketing 2017, the national outdoor-lifestyle market reached $300 million dollars.
Outdoor-lifestyle sales are estimated to grow by at least 6% for the next few years. This
growth can be attributed to several different factors. The greater disposable household
income from the two income families, the greater availability of affordable and
interesting quality imports with the high value of the Australian dollar and the
marketing by popular TV shows like Homes Beautiful and Better Outdoor-lifestyles.

b) Competitors’ performance
The Yard: has limited selection but significant depth. All Australian made. No significant
marketing or promotion. The price point is high, but the quality of products is quite good.
Not in Brisbane. Mostly in Sydney and Melbourne. BBQ’s R Us: Broad range of outdoor-
lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating
on established markets. Strong in the replacements segment. Local competitor: All
independents: these stores are down by individual owner operators. Ranges vary according
to owner preferences. Very little imports. Mostly retailing Australia manufactured goods.
Collectively their average item sale price is $250, have a market share of 48%, and are
growing at about 8% per year. 1.
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c) Customer requirements
BBQ fun mission is to provide customer with the most extensive assortment of quality outd oor
lifestyle product available in the market .our after sales service is second to none supported by our
easy to manage long term repayment plans which make unique imported and high quality
outdoor lifestyle customer wishing to purchase product that give our customer s pride in their homes.
Our service will exceed the expectations.

d) Legal and ethical requirements

Australian Consumer law ACL 2011
The ACL applies nationally and, in all States, and Territories, and to all Australian businesses. For
transactions that occurred prior to 1 January 2011, the previous national, State and Territory consumer
laws continue to apply. The ACL is administered by the ACCC and state and territory consumer
protection agencies and is enforced by all Australian courts and tribunals, including the
courts and tribunals of the States and Territories. The protections in the ACL are generally
reflected in similar provisions in the Australian Securities and Investments Commission Act
2001 (ASIC Act), so that financial products and services are treated in the same way.
Intellectual property act 2015 and IP BILL 2014
The Intellectual Property Laws Amendment Act 2015 ("Amendment Act") amended
the Patents Act 1990, Trade Marks Act 1995, Designs Act 2003, and the. For
detailed information on the Amendment Act, please see the Explanatory
Memorandum to the Intellectual Property Laws Amendment Bill 2014 .Amends
the: Patents Act 1990 to: implement the Protocol amending the World Trade
Organization Agreement on Trade-Related Aspects of Intellectual Property to
enable Australian pharmaceutical manufacturers to supply developing countries
with generic versions of patented medicines; and make technical amendments;
Plant Breeder’s Rights Act 1994 to enable the owners of plant breeder’s rights in
a plant variety with the option to take action in the Federal Circuit Court against
alleged infringers; Designs Act 2003, Patents Act 1990, Plant Breeder’s Rights Act
1994 and Trade Marks Act 1995 to provide for a single trans-Tasman patent attorney
regime and single patent application and examination processes for Australia and
New Zealand; and Designs Act 2003, Patents Act 1990 and Trade Marks Act 1995
to remove document retention requirements.

e) Market share
The company is owned by individual owner operators. Ranges vary according to owner
preferences. There are very few imports. Mostly retailing Australian manufactured goods.
Collectively their average item sale price is $250, they have a market share of 48%, and are
growing at about 8% per year. One important source of market research is competitive
analysis. BBQ fun management continually visit local outdoor lifestyle stores for
competitive analysis, providing BBQ fun with timely information regarding other store’s
service offering.
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f) Market trends and developments

The market trend for outdoor lifestyle stores is headed toward a more sophisticated and
informed customer. Outdoor lifestyles customers are becoming more sophisticated in a
number of different ways:
a. Item quality – the preference for high quality items is increasing a customer
are learning to appreciate the quality differences.
b. Unique – our patrons appreciate the opportunity to include outdoor lifestyles in
their home that stand out from the mass-produced and low-quality items.
c. Selection – people are demanding a larger selection of choices; they are no
longer accepting a limited offer in outdoor lifestyles.

g) New and emerging markets

There are two emerging market that BBQFUN would like to do in the future:
a. BBQ’s R Us: Broad range of outdoor lifestyle products including trinkets and
furnishings. Lots of cheap imports. Concentrating on established markets. Strong in
the replacements segment. One store in Brisbane. Mostly in Melbourne and Adelaide.
Considering e-commerce options.
b. Outdoors marketing: Large operations of only a few stores per city. Mass markets
outdoor lifestyles at good value prices. No imported goods. Extensive advertising.
Low to medium quality. Strong in the replacement segment rather than new and
refurbished dwellings. Gaining strength in Brisbane market. Considering ecommerce
options

h) Profitability
BBQfun has created an outdoor lifestyle range of retail products that is differentiated and
superior to competitors. Customers can see the quality of the product as it is displayed in the
stores. The following are characteristics of the product:
i. BBQFUN’s credit offer is backed by a top tier bank
ii. Imported products make up 33% of the product range
iii. The three-year guarantee is unique in the market place broadest possible range in
chosen field
iv. Expert, friendly customer service

v. BBQfun prides itself on providing service that is on par if not better than any of
the local independent stores and far in excess of the national chains.
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i) Sales figures

BBQFUN 2012/13 APPROVED BUDGET BY ACTIVITIES TO BE UNDERTAKEN

Income:
Sales $11,000,000 Barbecues and related equipment
Investment income $1,567,000 Real estate investment income and rental of
office space.

Cost of goods sold (COGS) $5,890,000 Cost of provision of goods, purchase of stock,
distribution.

Gross profit $6,677,000 Gross profit.

Expenses:
Wages, salaries and on $2,567,890 Wages, salaries, superannuation, work cover
costs insurance, payroll tax

Consultancy fees Project management’s management

$50,000 system; change management.

Communication Telephone, ISP costs, IT support.

expenses $42,000

Marketing Cost of staff travel and associated costs for

$800,000 sales, etc.

Premises expenses Rent, electricity, maintenance, cleaning.

$1,000,000

Capital expenditure Purchase of new office equipment (90%),

$120,000 vehicles.

Depreciation and 9 Computers and capital equipment that is

amortization $177,569 depreciated.

Office supplies Printing and stationery, postage, amenities.

$65,068

Training Sales training: leadership, WHS, ethical/

$62,187 legal
training.

Total Expenses
$4,884,714

Net profit $1,792,286 Net income before tax

2. Research potential new markets for the organization, for example:
a) Export markets
BBQfun was established in 2009 by its current CEO, Pat Mifsud. BBQfun offers an
extensive product range, incorporating both local and imported goods. BBQfun
steadily increased market share and profitability to 2010 when sales peaked at $10
million. Since 2010, the increasingly competitive retail environment, technological
c h a n g e , changes in consumer buying patterns and confidence has led to
disappointing sales. However, BBQfun intends to return to healthy sales of $11
million in 2012 through building on its organizational strengths. Organizational
strengths will be built through targeted marketing strategies aimed at key segments
and through exploiting marketing opportunities.

b) Segments of the market not currently penetrated

BBQ Fun market consists of the following geographic and demographic
characteristics.
Geographic:
our immediate geographic target is the area of Brisbane with a population of
2,000,000, a 30 kilometers’ geographic area is the average store market footprint
the total targeted population is estimated at 450,000

Demographics:
Male and female, ages 20–50, high percentage of young professionals who work in

the central business district, high percentage have completed

undergraduate/postgraduate study, an average household income of over $70,000.
BBQfun’s advertising budget is set at $180,000 for the 2012 financial year. The
advertising program will target local letter box drops, radio and magazines. BBQfun
will use direct mail and local advertising, with coupon inserts in the Briskness
magazine is likely to be the most successful of the campaigns. BBQfun will try to get
articles about BBQfun into the BrisNews magazine. Previous features in the
BrisNews magazine has seen a dramatic increase of sales immediately after the article
was published.
 3. Consider strategic marketing approaches such as:
The various strategic marketing approaches (such as; increasing market share,
developing new markets, developing new products and diversification) that the
company should consider in terms of expanding their business potential and
discuss what are the likely options for implementation.

STRATEGIC MARKETING APPROACHES

Factors Option Considerations Favorable/
s Unfavorab
le
The outdoor and lifestyle market in UK is growing at the rate of
present product)
(present market,
Market penetration

Market share growth

Favorable
6.6% per annum.
Therefore, with the existing line of products that BBQfun offers,
they can venture into the UK markets. USA and China market is
also at a growing stage and it would be advisable for BBQfun to
explore the imported goods market of both the countries.
improvement
Customer loyalty

Favorable
In today’s world, the customers are only
Loyal to those companies that offer good quality products at lower
prices. Therefore, BBQfun will have to concentrate on
Manufacturing good quality products at reasonable prices to
attract customers. In UKand USA they will not face much stiff
competition but in China they will have to find ways to reach
out to the customers because China has a huge market which
offers goods at low prices.
improvement
Customer value

Favorable

The company needs to concentrate on

providing after sale services to its customers to create customer
value. They will have to ensure that in each market they satisfy
the needs and wants of their customers (Zhou ,
2012).

All the three countries market focuses on the design of the

market, new
(present
development
Product

Design

Favorable

product. BBQfun will have to make changes in the designs of their

goods according to the tastes and preferences of the customers of
the country they want to cater. Very market has different taste and
preferences which BBQfun has to understand (Bellandi, &
Lombardi, 2012).
 Technology

Favorable
Technology used by BBQfun will have to be advanced and up-to-
date to combat the competition it will face from its competitor
s. If BBQfun expands its market in China then their technology
has to be the best in the market because the Chinese market is
highly advanced and technologically forwards
Distribution

Favorable
BBQfun will also have to concentrate e on
Establishing its distribution network to make sure that their
products are easily available in the m arket. In establishing g
distribution network, BBQfun will not face any issues in UK,
USA or China as all these countries have an advanced e-
commerce method of establishing distribution network.

BBQfun will gain a competitive advantage if they export their

product)
m a r k e t , present
development(N e w
Market

Exporting

current products to USA as the market for imported goods is not

explored yet. But in China the imported goods market is well

favorable
explored and by entering into that market BBQfun will get no
advantage (Mayer, Melitz,& Ottaviano, 2014).
 / franchising
Licensing

Unfavorable
Obtaining trade license in China is a very long drawn and
difficult process. BBQfun can obtain trade license easily in UK
and USA to start their trade operations there.
Franchising will also be more convenient in UK and USA but it
would raise the cost for BBQfun.
venture
Joint

Unfavorable
The joint venture option is also available with BBQfun but
coming to a consensus for both the companies will be a
problem owing to their difference in culture and methods of
carrying on trade (Acur, Kandemir, &Boer, 2012).
Direct investment

Favorable
UK, USA and China are inviting foreign direct investments to
their countries and so this is a favorable time for
BBQfun to enter into foreign markets.
market, new product)
Diversification (new

diversification
Related

Favorable
BBQfun can diverse their product portfolio according in lines
With their current portfolio of products.
They will have to first identify the needs, wants of the
customers in the market, and then in alignment with that
diversify their products range.
Unrelate d diversification

Unfavorable
Unrelated diversification on can be an option for BBQfun to
enter into a new market. But this will increase their cost
of operations with no guaranteed return as
All the investments will be made i n a new market.
 4. Using a suitable methodology, such as gap analysis, market or
marketing analysis, or competitor analysis, identify and decide on two
marketing opportunities to focus on and investigate further.
A gap analysis is a method of assessing the differences in performance between a
business' information systems or software applications to determine whether business
requirements are being met and, if not, what steps should be taken to ensure they are met
successfully. Gap refers to the space between "where we are" (the present state) and
"where we want to be" (the target state). A gap analysis may also be referred to as a need’s
analysis, needs assessment or need-gap analysis.
According to BBQFUN the goals of the company are to provide the great value outdoor
lifestyle products and second-to-none customer service, so let have a look on the gap
analysis.

GAP ANALYSIS
STRATEGIC CURRENT DEFICIENCY ACTION PLAN
OBJECTIVE STANDING
It is selling a greater BBQfun is not being
number of products in able to get extra
the existing markets. market share by
Market penetration
market penetration.

It is selling new BBQfun is not being A proper market research

products in the Able to innovate its will help BBQfun to
existing markets. products according to understand the types of
Product development
the needs of the products that the
market. market needs.

It is selling new The diversification is

products in the new increasing the cost of
markets. BBQfun, which they
Diversification are not being able to
m e e t i n the new
market.

It is selling existing The existing products BBQfun will need to

products in the new are not according to conduct a market
market. the new markets’ research of the new
tastes and market to
Market development preferences. understand the market
needs and demand so
that they can introduce
re le va n t products in
that segment of the
market.
 ● In your analysis, consider types of markets and aspects of the marketing mix such as
distribution, products and types of promotional activities

TYPES OF MARKETING & MARKETS

Types of marketing Market to serve Considerations Ranking (M os t favorable
e = lowest number while
least unfavorable=
highest number)

The e-commerce market

for outdoor and lifestyle
products in USA is very
advanced and developed
and more profitable then
UK and China market.
Hence, BBQfun should
e-commerce USA focus on online market 1
in
USA by either creating
their own e-commerce
site or by tying up with
the other online websites
of
USA (Purkayastha,
Manolova& Edelman,
For a foreign company
it is difficult to enter into
the Chinese markets.
Hence, BBQfun can use
the
Options of joint venture,
Business strategic alliances or
partnership to enter
-to- China 7
business the Chinese market. The
only drawback in this
case will be that due to
the cultural and trade
difference, the two
companies may not

be able to reach a
 Direct marketing is
a way by which the
company can advertise
its products by sending
emails or text messages
direct marketing UK to the customers or by 2
distributing catalogues
and websites. This way
of advertising will be
helpful for BBQfun in
the UK market.
This will be more
favorable in the UK
market as the customers
in UK are more
accepting when it comes
to
Trying new brands or
products. Therefore, if
Ideas marketing UK BBQfun uses the correct 4
method of advertising in
the UK market and
Makes the consumers
aware of their line of
products, their sales
might increase
(Uhlaner,L. M, Duplat &
Public sector USA Due to United States
marketing Free
Trade Agreement
between USA and
Australia, thetrade
3
relations between both
the countries arevery
good. Therefore, the
USA
government would help
services China Services 6
marketing marketing
 5. Estimate the effect of the two marketing opportunities on the
business, for example:
-Effect on sales volume
-Growth
-Market share
-Profitability.

IMPACT ANALYSIS

Marketing Factors for How does it affect Action plan

opportunity consideration BBQfun?

The sales volume will The company needs to

Effect on sales increase as the Maintain the sales
volume company’s product volume.
portfolio increase.

Introducing new The company needs to

products ascertains launch new products
Growth growth the according to the needs
product portfolio and of the market.
sales of the company.
The market share of The firm has to
Product BBQfun will increase. increase its market
development Market share share by attracting
more consumers.

With increase in sales The profit level needs

Profitability v o l u m e , the to be maintained.
profitability will also
increase.
The potential The analysis of the
Potential competitors of BBQfun competitors’ products
competitors will also try to launch and sales needs to be
new products in the done.
market.
The sales figure will The company needs to
Effect on sales increase. attract more customers
volume by means of
advertising.
Market Emerging into new The penetration into
development markets will ensure new market has to be
Growth growth of the company. done after proper
market analysis.
 The company will need In the new market, the
Market share to capture a share of the market share needs to
market in the new be established.
country.
In new markets, the Profitability needs
profitability cannot be to be
Profitability ensured in the ensured after a few
formative years. years in the new
market.
The company needs to The market research
do a proper market will help analyzing
Potential
research about the the rivals.
competitors
rivals in the market.

6. Use numerical analysis or statistical methods to forecast effects.

For example, use the least squares method to estimate demand.
Use estimated demand to calculate effect on sales and
profitability.
The BBQFUN are using the cross-section data, as the company wanting to predict the
value of the sales that the marketing team are observing; according to the information
on the cases that we have observed. Examples of cross-sectional data include of; New
Builds Renovation and the replacement;

NEW RENOVATOR REPLACEMEN

BUILDS S TS
Have visited BBQfun in previous
70% 70% 50%
month
Have bought a BBQfun product in
previous month 70% 65% 50%

Customer service is essential

90% 95% 60%
Price is most important 10% 20% 95%
Australian made is important
80% 65% 55%
Will buy online 100% 100% 100%
Will pay frontline delivery if chosen
30% 100% 100%
Loyalty customer 30% 20% 10%
7. Explore and develop entrepreneurial, innovative or
creative options (one for each opportunity) to apply the
marketing opportunities in the context of the organization.

The chosen option is E-commerce opportunity. The benefits of applied the

e-commerce to the BBQFUN could be varies such as:

a. Get deeper on the customer behavior: As the BBQFUN create the

Online feedback for the customer this could be the best thing for the
company to get to know the customer deeper; By satisfying their needs
constantly, you can improve your ongoing relationship with them and
build long- lasting relationships.

b. Personal service: The company aren't just guided or influenced by price.

Providing a personal service, albeit online, is both appreciated by the
customer and can prove to be very beneficial in increasing sales. How can
the customer provide a personal service via your online presence, etc.
PART B

Prepare a 15–20-minute presentation for marketing peers explaining and supporting the
two marketing opportunities you have identified. Ensure you complete the following:
1. Describe two marketing opportunities and how you identified them.
Describe the process you undertook to analyze your organization to
identify the marketing opportunities. Refer to current organizational
marketing plan and products/services
The marketing opportunity of the BBQ FUN are:
a. A growing market in a high growth area with a significant percentage
of the target market still not aware of BBQ fun value proposition.
b. Increasing sales opportunities outside of our store locations – south east of
Melbourne.
c. Growing opportunity for online sales.

2. Support your choice of marketing opportunities with reference to

market information such as market trends and sales figures.
To gain more market share, customer services are very important. In most
BBQ FUN stations franchises are not very competent to some extends. For
example, language would be the main problem because these franchises are
from overseas. They could not fully understand customers’ requirements and the
instructions from head office. So, the training courses are necessary for customer
services.
On the other hand, developing new products will be helpful for the company.
The most products in BBQ fun are not produced by BBQ fun self, except BBQ
FUN milk and bread. So, it will be a good chance to produce more home brand
products such as chocolate bars and hot foods which are good for breakfast and
lunch.

3. Describe the effect of opportunities on the business, for example:

a. Sales volume
Sales volume is the number of units sold within a reporting period. This
figure is monitored by investors to see if a business is expanding or
contracting. Within a business, sales volume may be monitored at the level of
the product, product line, customer, subsidiary, or sales region. This
information may be used to alter the investments targeted at any of these
areas. A business may also monitor its break-even sales volume, which is
the number of units it must sell in order to earn a profit of zero. The
concept is useful when sales are contracting, so that management can
determine when it should implement cost reductions. This can be a difficult
concept to employ when there are many different products, and especially
when each product has a different contribution margin.
 b. Growth
BBQfun’s advertising budget is set at $180,000 for the 2012 financial year.
The advertising program will target local letter box drops, radio and
magazines. BBQfun will use direct mail and local advertising, with
coupon inserts in the BrisNews magazine is likely to be the most successful
of the campaigns. BBQfun will try to get articles about BBQfun into the
BrisNews magazine. Previous features in the BrisNews magazine has
seen a dramatic increase of sales immediately after the article was published.

c. Market share
Represents the percentage of an industry or market's total sales that is
earned by a particular company over a specified time period. Market share
is calculated by taking the company's sales over the period and dividing
it by the total sales of the industry over the same period.

d. Profitability.
Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings compared to its expenses and other
relevant costs incurred during a specific period of time. For most of
these ratios, having a higher value relative to a competitor's ratio or
relative to the same ratio from a previous period indicates that the company
is doing well.

4. Describe innovative or creative options (one for each opportunity) to apply the
marketing opportunities in the context of the organization. Refer to aspects of the
marketing mix, i.e., product, price, promotion, place (distribution). Refer to
principles of marketing that apply to your approaches to realizing the proposed
opportunities.

a. Pricing
while BBQfun will price at comparable prices for comparable quality, it
will not be cheap. We emphasize value over price and back this up with
three years guarantee.

b. Place
BBQfun products will be distributed through two retail stores which
customers can access easily via the large car parking arrangements.

c. Promotion
The most successful advertising will be ads and inserts in the Brizzy as well
as a PR campaign of informational articles and reviews also within the
Brizzy. Promotions will take the form of in-store entertainment and
competitions with prizes to exotic overseas destinations. Social media is
considered not viable or practical considering low participation among
targeted segments.

d. Product
BBQfun’s philosophy is that whatever needs to be done to make the
customer happy must occur. This investment will pay off with a fiercely
loyal customer base which will recommend BBQfun to friends.