BBQfun simulated business Assessment Materials BBQ fun BSBMKG501 Identify and evaluate marketing opportunities 2nd edition version: 3 Page 1 of 36 BBQ fun Table of contents Chapter 1 – Business plan...

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There are two tasks ofIdentify and Evaluate Marketing Opportunities.


BBQfun simulated business Assessment Materials BBQ fun BSBMKG501 Identify and evaluate marketing opportunities 2nd edition version: 3 Page 1 of 36 BBQ fun Table of contents Chapter 1 – Business plan (excerpt) .................................................................................. 2 Chapter 2 – Organisational chart and management profiles ............................................ 3 Chapter 3 – Management responsibilities ........................................................................ 4 Chapter 4 – Budget summary ........................................................................................... 5 Chapter 5 – Operational plan ........................................................................................... 6 Chapter 6 – Description of operations .............................................................................. 9 Chapter 7 – Organisational risk register ........................................................................... 10 Chapter 8– Marketing plan .............................................................................................. 12 Chapter 9 – Sales and marketing policy .......................................................................... 24 Chapter 10 – BBQ fun Privacy Policy .............................................................................. 26 Chapter 11 – Anti-discrimination policy ...........................................................................30 Chapter 12 – Procurement policy and procedures ........................................................... 31 Chapter 13 – List of preapproved suppliers ..................................................................... 36 Assessment Materials BBQ fun BSBMKG501 Identify and evaluate marketing opportunities 2nd edition version: 3 Page 2 of 36 Chapter 1 – Business plan (excerpt) From BBQ fun business plan FY 2016/17 About BBQ fun BBQ fun was established in 2009 by current CEO, Pat Mifsud. BBQ fun 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, BBQ fun intends to return to healthy sales of $11 million in 2016 through building on its organisational strengths, through targeted marketing strategies aimed at key segments and through exploiting marketing opportunities. Currently, BBQ fun operates two stores, one in Brisbane (Kenmore), and one on the Gold Coast. BBQ fun is seeking business and marketing opportunities that could lead to interstate or national expansion if viable and scalable. Mission ● To provide our customers with great value outdoor lifestyle products and second- to-none customer service. Vision ● To be, within five years, south east Queensland’s leading outdoor lifestyle retailer. Values ● Quality ● Customer value ● People: Active encouragement of safety, teamwork, diversity, excellence, innovation and continuous improvement. Strategic directions The strategic context in which BBQ fun will achieve its mission and vision is through: ● engaging with customers through promotion and market research ● building reputation for quality products and quality customer service ● supporting people to perform via training and performance management ● controlling costs. ● increasing sales revenue and profitability. Assessment Materials BBQ fun BSBMKG501B Identify and evaluate marketing opportunities 2nd edition version: 1 © 2012 Innovation and Business Industry Skills Council Ltd Page 3 of 36 Chapter 2 – Organisational chart and management profiles BBQ fun organisational chart Board of Directors and CEO Pat Mifsud Chief Financial Officer Riz Mehra Operations General Manager Kim Chen HR Manager Les Goodale Manager Marketing Sam Lee Manager Brisbane Pat Sweeney Manager Gold Coast Alex Mitchell Assessment Materials BBQ fun version: 1 Page 4 of 36 Chapter 3 – Management responsibilities Pat Mifsud, CEO Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions. Riz Mehra, Chief Financial Officer Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections. Kim Chen, Operations General Manager Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects which affect operations of the organisation as a whole. Kim works with the HR manager to coordinate systems and projects to achieve company-wide synergy. Les Goodale, Human Resources (HR) Manager Les is responsible for the productive capacity and welfare of people at BBQ fun. With the Operations General Manager, Les works to co-ordinate projects and management systems such as performance management, recruitment, and induction. Sam Lee, Marketing Manager Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team. Pat Sweeney, Manager: Brisbane (Kenmore) Pat is responsible for the management of all aspects of the Brisbane store. Alex Mitchell, Manager: Gold Coast Alex is responsible for the management of all aspects of the Gold Coast store. Assessment Materials BBQ fun version: 1 Page 5 of 36 Chapter 4 – Budget summary BBQ fun 2016/17 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 costs $2,567,890 Wages, salaries, superannuation, work cover insurance, payroll tax. Consultancy fees $50,000 Project management: WHS management system; change management. Communication expenses $42,000 Telephone, ISP costs, IT support
Answered Same DaySep 14, 2021BSBMKG501Training.Gov.Au

Answer To: BBQfun simulated business Assessment Materials BBQ fun BSBMKG501 Identify and evaluate marketing...

Tanmoy answered on Sep 16 2021
155 Votes
Assessment Task 1: Part A
Identifying marketing opportunities
As per Philip Kotler, marketing opportunities is the combination of the markets, marketing concept, and buyer’s behaviour and market segmentations. These factors create opportunities for an organization for achieving the marketing objectives from the underlying opportunity. (The History of marketing thoughts; Dr. Chuck Hermans; Missouri State University; Pg10)
The aim of this presentation is to identify and select the correc
t marketing opportunities which will help BBQ Fun to grow in the long run. Hence, BBQ Fun is aiming to focus on different innovative alternatives for selecting the marketing opportunities.
Describing two marketing opportunities:
The marketing opportunities can originate from various ranges based on the possible sources as follows:
1. BBQ Fun should focus on creating online platform for sales and delivery of their products to its customers.
2. They should also focus on customer service which is very essential.
The above two marketing opportunities can be elaborated based on the marketing survey data based on the marketing preferences conducted by BBQ Fun in 2016 on 500 customers.
As per the survey 100% of the people segmented under 3 groups (a) Builds (2) Renovators & (3) Replacements have given their opinions on their online buying and delivery preferences. This suggests that people in Australia are more focused on buying their products through internet rather than visiting the stores. This process of e-commerce will ultimately help BBQ Fun to reach many customers across various states and countries. As they are selling their products at reasonable price, online sales and delivery will help to gain competitive advantage over other online companies. Also it will be very easy for customers to view their products online. The major drawback of BBQ Fun was since they had no online presence as a result they were unable to grasp revenue gains due to poor customer confidence.
Now, the second market opportunity discuss about the customer service, which includes responding to customers on query, after sales services, providing correct information to the customers and proper delivery and replacement of product when needed. As per the above survey, around 90% of the builds, 95% of renovators and 60% of replacements responded that customer service is essential. This will help them to achieve their sales figures which were low in 2016-17 i.e. $85 lakhs compared to $95 lakhs in 2015-16. Also, the budgeted sales figure of 2016-17 was projected at $110 lakhs. This actual was approx 23% less than the projected. The major reason for the profitability been low in 2016-17 for BBQ Fun was due to high costs compared to the projected. Hence, BBQ Fun should focus on this opportunity to retain and build new customers.
Effect of opportunities on market:
Once the online platform is created by BBQ Fun, the products will reach not only to the local targeted customers but also to other states of Australia. The purchase and delivery will be made online and will lead to enhancement in the customer base and sales of BBQ Fun. As per the projected market share of the competitors of 2016-17, local independent companies are expected to hold about 30% of the market share as compared to 24% predicted for BBQ Fun. Also as per the statistics it is observed that independent retailer’s average sale price is $250. Hence, people are willing to purchase products at a lower cost. About 48% market shares are controlled by the independent retailer which is also growing at 8% per year. But, if the products sale and delivery are made online by BBQ Fun, this will help them to reduce their cost and expand the reach and customer base.
To increase the customer service and satisfaction, BBQ Fun must emphasize on reducing the price of their products as compared to the individual retailers and emphasize in volume buys. This will help to increase the market share of BBQ Fun. Also, they should emphasize on Australian made product. As per a market survey conducted with 500 customers, it depicted that 80% rebuilds, 65% respondents and 55% replacements wants that their products should be made in Australia. But, BBQ Fun’s 33% of the product range consists of imported products. This should be reduced to 15% (estimated) which will help to boost the market share and consumer base of BBQ Fun.
Supporting the choice based on marketing opportunities:
To attain the above marketing opportunities BBQ Fun must focus on vertical marketing strategy. In this strategy it will focus on lowering its product imports of 33% and focus on manufacturing, designing and selling their own products through their own retail chains. As per the data available their warehouses in Brisbane, Kenmore and Gold Coast, Robina is build on a 15000 & 12,000 sq ft area respectively. The warehouses are used in a poorly organized manner and are unable to...
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