BSBMKG507

Interpret Market Trends and Developments

Version 1.0
November 2016

Student Full Name:

Student ID:

Date Submitted:

Level 2, 25 George Street, Parramatta, NSW 2150

Phone: +61 2 9633 1222 Fax: +61 2 9633 1888
Email: info@australisinstitute.nsw.edu.au Web: www.australisinstitute.nsw.edu.au

ABN 17 120 701 911 | RTO ID 91630 | CRICOS ID 03173K

Assessment Information
Welcome to your Student Assessment Workbook for BSBMKG507 Interpret Market Trends and Developments.
This Student Assessment Workbook is where you will write all your responses for the knowledge questions and simu-
lation tasks. Please refer to the Student Assessment Guide for more information.
This assessment has the following two events:

Assessment Event 1 – Knowledge Questions:

There are five questions that will provide us with evidence of your general knowledge of internal and external
sources of information relevant to forecasting market trends, software applications that are commonly used in quan-
titative and qualitative analysis, statistical concepts, methods, techniques and reporting formats, and legislative con-
text within the marketing space.

Assessment Event 2 – Simulation: A & A Coffee

You will complete a number of tasks that will provide us with evidence of your skills with analysing quantitative data
and qualitative information, compiling a report based on your analysis, and documenting future marketing strategies
to contribute to the ongoing development of a case study organisation. These tasks will be based on your role of
Marketing Intelligence Officer in a simulation with A & A Coffee, a chain of retail cafes that operates nationwide
across Australia.

To complete the Simulation, you will need to refer to the following resources:

AUD vs USD data Time series data which shows the relationship between Australian dollar (AUD) and
the US dollar (USD). You will use this data in Task 1.1 to identify the trend between
the two currencies.

Global Coffee Price data Time series data which shows the change in coffee prices, globally. You will use this
data in Task 1.1 to discover the economic trends amongst various coffee types.

ABS Coffee CPI data Time series data which shows price trends for coffee, tea and cocoa products in Aus-
tralian capital cities. You will use this data in Task 1.1 to identify the price variations
over time for similar product lines.

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 SIMRA report Report generated by Statistica International Marketing Research Agency (SIMRA). You
will use this information in Task 1.4 when analysing qualitative and quantitative infor-
mation about the local coffee industry.

Competitor Market Share This data show the market share performance of current competitors. You will use
this data in Task 1.5 to identify the potential opportunities and threats.

PoS Data from Stores This is the register data from the stores. You will use this data in Task 2 to examine the
overall business performance for each product and store.

Reporting Standards This is the organisational style guide on writing reports. You will refer to this document
when generating your Market Analysis Report and presentation aids.

Please note that your responses for both assessment events can (where appropriate) use dot point format. See below
an example of a dot point response and a full sentence response.

Dot point format Presentation Plan includes the following:

 outcomes
 needs of the audience
 context.

Full sentence format When you are preparing for a presentation, there are a number of tasks that must be
carried out. These are listing the outcomes that you want to achieve, followed by the iden-
tification of the needs of your audience. When you have completed these two tasks you
then check on the room that you will be conducting the presentation in.

To Achieve Competence
To be deemed competent for this unit, you will need to meet the following requirements:
 complete all of the questions and tasks listed in the Student Assessment Workbook

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 meet all the requirements listed in this Student Assessment Guide

 your responses to the questions and tasks must be relevant, accurate and specific
 submit your completed Student Assessment Workbook to your Assessor within the set timeframes
 your work must be in your own words
 where you use an external source of information, you must provide citation.

BSBMKG507 Student Assessment Workbook | Student ID: Page 3

Pre-assessment Checklist
Your assessor will go through the assessment for this unit, BSBMKG507 Interpret Market Trends and Developments.
It is important that you understand this assessment before taking on the questions and tasks. To confirm that you
have been given this overview, we ask you to complete the following Pre-Assessment Checklist.
You are required to carefully read each checklist item provided below and tick either ‘Y’ to confirm your understanding
or ‘N’ if you disagree. In case you disagree with an item, please provide your reason under the ‘Comments’ column.

When you have done this, we ask you to sign this Pre-Assessment Checklist. This acknowledges that your Trainer/As-
sessor has discussed all of the information with you prior to undertaking this assessment.

Pre – assessment Checklist Comments

Y◻ ◻N I, the student, understand the purpose of the assessment.

I understand when and where the assessment will occur, who will as-
Y◻ ◻N sess and in what format the assessment will be submitted.

Y◻ ◻N I understand the methods of assessment.

I understand what resources are required to complete this assess-

Y◻ ◻N ment.

I understand the performance level required for each assessment

Y◻ ◻N event.

I understand that it must be my own work. I have been explained and

Y◻ ◻N understand the serious consequences in case this work is found pla-
giarised.

Y◻ ◻N I understand the process if I am deemed not yet competent.

Y◻ ◻N I understand the feedback process and the appeals process.

The assessor has discussed with me if I have any special needs and if
Y◻ ◻N so what arrangements have been made.

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 Student Full Name Student ID Student Signature Date

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Assessment Event 1 – Knowledge Questions
The information contained in this section lists the questions that you will need to develop a written response. These
questions are theoretical and provide evidence of your understanding of sources of information for market forecast-
ing, software applications used in data analysis, statistical analysis used in marketing, and the legislative requirements
within the marketing industry.
Note you must answer these questions in your own words. Remember, you must get a satisfactory result with each
question to be deemed satisfactory for the whole of Assessment Event 1.

Question 1
In the table below, outline internal and external sources of information relevant to forecasting market trends.
Write your response into the table below:

Source of information Internal/External How it relates to forecasting

Where can be sourced

They are the main precursors of an

organisation’s direction which are
constantly reviewed and adjusted
 Organisational Business to ensure a close fit to future
Business and strategic Plan trends. These initiatives must be in
Internal line with the changes within the dy-
objectives  Organisational Strategic Re-
namic market environment, there-
view
fore, an organisation is required to
constantly fine-tune them to meet
future needs.

Historical data on marketing and

business performance involves col-
lecting data from various sources
 Marketing/Sales Perfor- which enables an organisation to
Marketing and Busi- mance Reports have a clear understanding of their
Internal past and current performance. This
ness performance  CRM systems
understanding of internal compe-
 Data-driven Dashboards
tency is crucial to develop timely
and cost-effective strategies that
aim to meet future changes.

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Source of information Internal/External How it relates to forecasting
Where can be sourced

Comparative market information

 brochures
 direct mail packages
Comparative market  documentaries and inter-
External
information views on broadcast media
 inter-firm comparison data
 international benchmarking potential ‘shifts’ within the market
primarily shows how the rivalry
works within the industry. This is
important to estimate the current
value of an organisation’s ‘value of-
fer’ in respect to its environment
and future dynamics. In addition,
industry information mines out the
in terms of consumer behaviour
and economic landscape.

Changes in technology ultimately

 Technology events
 Seminars
 Social media (e.g.; blogs, e-
newsletters, websites, fo-
rums, etc.)
Changes in technology External
 Print media (e.g.; maga-
zines, books, brochures,
newspapers, etc.)
 Broadcast media (e.g.; tele-
vision, radio, etc.)
causes transformation in industry
movement which has a direct im-
pact on future trends. Therefore,
an organisation should closely
monitor the advancements in tech-
nology when analysing future drifts
in order to meet its strategic desid-
eratum and set accurate value for
their offerings. For example, mar-
keters can conduct an industry
analysis to identify the add-ons that
will be required on their current
value offer in future; then the prod-
uct designers can build-in these
features to remain competitive in
the market.

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Source of information Internal/External
Demographic changes
Social and cultural fac-
tors
Economic trends
BSBMKG507 Student Assessment Workbook | Student ID:
How it relates to forecasting
Where can be sourced
Demographic factors such as age,
gender, marital status, race, educa-
tion, income, occupation, etc. are
the cornerstones of an organisa-
tion’s market segmentation. Any
change in these factors will have a
significant impact on how an organ-
 Surveys
isation develops strategies for fu-
 Australian Bureau of Statis-
ture; this is since such drifts will
External tics
have potential effect on target con-
 Articles (based on empirical
sumer segments and their buying
results)
power. For instance, marketers can
analyse shifts in demographics to
determine if the current mix of
products will entice consumers to
make a purchase in future.
Sociocultural factors such as life-
style, customs and values frame
 Social media metrics consumer behaviour which is an es-
 Interviews sential path in determining the
 Focus groups ‘psychology of marketing’ during
‘consumer decision journey’. An or-
External  Surveys
ganisation should employ predic-
 Market research reports
tive models based on historical con-
provided by third-party
sumer data to determine the likeli-
agencies
hood of certain future outcomes
based on market shifts.
Economical trends impact investors
on their return on investments as
they have a direct affect a con-
 Reserve Bank of Australia sumer’s buying power.
 Websites Marketers can look at how consum-
 Australian Bureau of Statis- ers have reacted to the overall
External economy when planning on a new
tics
 Articles (based on empirical campaign. For instance, moving av-
results) erages, bands and break points are
based on historical data, and are
used to forecast future price move-
ments.
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Source of information Internal/External How it relates to forecasting
Where can be sourced

Policymaking is probably the most

 Federal Government re-
ports
Government activities  Federal Government web-
External
and legislative changes sites
 State or Territory Govern-
ment reports
difficult area to make accurate esti-
mations, yet the most significant to
be monitored, as changes intro-
duced by the government have the
utmost potential to cause signifi-
cant downturns or betterments for
an industry. For instance, the
China-Australia Free Trade Agree-
ment (ChAFTA) has opened profita-
ble doors to many businesses re-
moving the trade barriers and trig-
gering future opportunities.

Industry trends show the chal-

Industry trends
lenges and opportunities that may
impact the market and influence an
organisation’s strategy to address
 Government activities future market needs. An organisa-
 Internet tion should be a ‘forward thinker’
 Information released from by constantly analysing the drifts in
External Federal, State, Local Gov- the industry that it operates. This is
ernment (e.g.; industry job essential to ensure that there is
trends and statistics, labour alignment and integration of key
trends, etc.) decisions when evolving the busi-
ness model in accordance to the
ever-changing market require-
ments.

Supplier data is essential to evalu-

 Supplier management per-
formance data sheets
Supplier data Internal  Organisational database
that holds supplier infor-
mation
ate and manage an organisation’s
suppliers across their trading lifecy-
cle. A thorough analysis of supplier
data allows an organisation to track
procurement expenditure and han-
dle supplier risk to better stream-
line its supply chain activities. This
analysis will enable an organisation
to estimate future costs and risks
associated with its suppliers, and
seek for operational improvements.

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Question 2
Outline the legislative and regulatory context that impact marketing operations.
Write your response into the table:

Legislation/Codes/Standards Summary of Key Provisions

 to enable fairness and representation throughout the life of adver-

1. Fair Work Act 2009 tising activities preventing discrimination by protecting against un-
fair treatment by others in the marketing team

 this act includes Australian Consumer Law which sets out con-
sumer rights to ensure fair trading (e.g.; misleading or deceptive
1. Competition and Consumer Act 2010
pricing in marketing materials, unsolicited consumer agreements,
(covers Australian Consumer Law) cooling off rights, etc.) and ethical advertising practices to be fol-
lowed by organisations

 to secure health, safety and wellbeing of advertising professionals

1. WHS Act 2011  to provide a groundwork for continuous improvement and progres-
sively higher standards for people’s work health and safety

 to enable the registered owner to list a product or service ‘unique’

9. Trade Marks Act 1995
in its marketed industry

 to protect the design (must be in a material form, not conceptual)

of a product by giving the design owner full ownership in the visual
1. Designs Act 2003
features of shape, configuration, pattern and ornamentation of
the design which have an industrial or commercial use

Question 3
Outline industry bodies that regulate the marketing space in Australia.
Write your response into the table:

Regulatory Body Purpose Codes/Standards/Guideline

Administers a transparent, robust,

Advertising Standards Bureau (ABS)  Administers AANA codes
accessible and fair self-regulation
https://adstandards.com.au/ (see below AANA)
system for advertising.

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Regulatory Body
Association for Data-driven Marketing & Ad-
vertising (ADMA)
http://www.adma.com.au/
Australian Communications and Media Au-
thority (ACMA)
http://www.acma.gov.au/
Australian Competition and Consumer Com-
mission
http://www.accc.gov.au/
Question 4
Identify and outline software applications that are commonly used in quantitative and qualitative analysis.
Write your response into the table:
Data Processing Method
business intelligence (BI) tools
BSBMKG507 Student Assessment Workbook | Student ID:
Purpose Codes/Standards/Guideline
Australia’s leading association for
data-driven marketers and advertis-  ADMA Codes of Practice
ers with the goal of ensuring they  ADMA Direct Marketing
conduct responsible direct marketing Codes of Practice
practices to consumers.
 Telemarketing standard
 Fax marketing standard
 Do Not Call Register
ACMA is responsible for enforcing
 eMarketing Code of
anti-spam law and telecommunica-
Practice
tions regulation. Also, develops and
monitors industry codes in consulta-  Monitors majority of the
tion with other industry bodies. codes and standards de-
veloped by other indus-
try bodies listed in this
table
Promotes competition and fair trade
 Franchising Code of Con-
in the market place to benefit con-
duct
sumers, business and the community
 Unit Pricing Code
by enforcing the Competition and
 Voluntary Codes
Consumer Act 2010 and a range of
additional legislation, promoting  Advertising & Selling
Guide
competition and fair trading.
Strengths Limitations
 support Big Data  require high-level IT literacy
 dashboards to gain more insight  can be highly challenging for an
 support real-time data analysis average spreadsheet user
 much more costly than tradi-
tional spreadsheet software
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 Data Processing Method
web-based survey tools
Data science tools
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Strengths
 allow visually appealing survey
designs
 provide statistical data visualisa-
tion
 automation and real-time access
to data
 support machine learning, prob-
ability models, uncertainty mod-
eling, data engineering, etc. for
advanced data analytics
 support Big Data analytics
Page 13
Limitations
 software modules cannot be
modified to cater the needs of
the business
 may not not work offline
 require additional effort than
commercial applications
 less point-and-click oriented than
commercial platforms
Question 5
Using the table below, outline statistical concepts, methods, techniques and reporting formats commonly used in
marketing.
Write your response into the table:

Statistical concepts, methods,

Example
techniques and reporting formats

Analysing the conversion rate to understand how the sales funnel is per-
conversion rate of leads to sales forming and what marketing avenues are giving the greatest return on in-
vestment (ROI)

 To find the most popular product (mode)

 To see the central point in a dataset where outliers can significantly
measures of central tendency
change the mean value (median will remain unaltered) – e.g.; what is the
midpoint of salaries of our customers?

 To analyse the performance gap between marketing return on invest-

ment (MROI)
measures of dispersion
 To study how much the return of the average stock differs from the mar-
ket average

 To show the relationship between customer satisfaction, price and aver-

correlation and regression analysis
age wait time served to each customer

 To calculate the response rate of a survey in order to understand if the

net response rate results are biased or acceptable
 To gauge how direct marketing tactics are performing

 To test the advertising claims of a competitor – e.g.; the competitor

normal distribution probability
claims that the life span of their product is X (which is normally distrib-
curve
uted) with a mean of Y hours and a standard deviation of Z hours.

 To get opinions from a specialised focus group where it is not feasible to

sampling
have access to the entire population

 To accurately estimate how close the organisation will, for a specific time
speed of response curve frame, plan mid-way through a direct marketing campaign based on his-
torical data and performance

 To show the percentage of people who think “new taste” has a signifi-
frequency grids cant impact on product performance (where the product is an ice-
cream)

 To forecast the net profit (all the business value) to be derived from a
customer based on the future relationship – this will also enable an or-
lifetime value of customers
ganisation to input these figures in order to allocate projected marketing
budget (how much should I spend to acquire a customer?)

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Statistical concepts, methods,
Example
techniques and reporting formats

 To answer the ‘is this customer worth acquiring?’ question and under-
net present value of customers
stand their value proposition for the future

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Assessment Event 2 – a & a Coffee Simulation
In this assessment, you will undertake a number of tasks associated with documenting a Market Analysis Report for A
& A Coffee, an Australian café chain. In this simulation you will perform the following actions:

 apply statistical and qualitative analysis techniques to analyse a set of qualitative and quantitative data

 drill down into the datasets and comparative market information, and mine out the patterns in market trends and
developments, organisational business performance and competitor performance
 present the report to key stakeholders.

Task 1: Interpret Trends and Market Developments

In this task, you will analyse the quantitative and qualitative datasets provided (as separate attachments) to you using
relevant quantitative and qualitative data analysis methods. You will then document your findings in their Market
Analysis Report.

1.1 Use statistical analysis of market data to interpret market trends and developments
Insert your response here:
 AUD vs USD data shows monthly USD/AUD Exchange Rate, which is the equivalent of $1 AUD to USD
Historically, the weak dollar began in 2002, after two stages: the first phase was from the beginning of 2002 to the
end of 2004, at the real exchange rate, the trade-weighted US dollar index fell 16% during this period. In the second
phase, with the Fed’s eight interest rate hikes in eight decision-making meetings in 2005, the trade-weighted US dollar
index rose by 5% in 2005, which is a one-third drop in the previous 34 months. However, the US dollar has not been
good for a long time. From mid-2006 to the present, the US dollar has returned to the downward channel. If we
counted from the beginning of 2002, the US dollar has depreciated by 36% in the past five and a half years. Currently,
the US dollar index, which measures the dollar's price against a basket of currencies, has fallen to the 78.3-78.5 range,
the lowest position in 15 years.
The chart below highlights an upward trend for Mild Arabica and Robustas coffee bean prices in the global market.
This may be due to the increasing supplier prices all around the world. As A & A Coffee imports their coffee beans
globally, this trend has negatively impacted the organisation’s profitability.

Chart 1: Coffee Prices in the global market

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Chart 2 below shows a gradual increase in Consumer Price Index (CPI) which indicates that the prices paid for coffee-
alike products by households have steadily inclined since early 2011 following an earlier dive in late 2010.

Chart 2: CPI – tea, coffee & cocoa – across Australia

1.2 Analyse market trends and developments for their potential impact on the business
Insert your response here:
Beginning in 2013, due to the rising exchange rate, A&A’s costs for its imported Mild Arabica coffee beans, which the
company uses in its espresso machines, nearly doubled. Although the price of beans has risen in the past (for example,
in 2009), the recent increase in prices is likely to be permanent as it has now been driven by the falling Australian dollar.
Falling coffee prices, in a higher-cost environment, points to increased competition in the retail coffee market: café
owners are cutting prices to try to gain market share. For A&A, this environment makes it very difficult to return to
profitability: it can’t raise its prices to increase revenues, and its margins continue to be eroded by higher costs.

1.3 Use quantitative data analysis to interpret comparative market data

Insert your response here:
This suggests that increased competition is probably a national phenomenon, although the trend certainly isn’t seen
everywhere.
It is possible that Perth is less competitive, so further research is warranted to work out whether expanding to the West
Coast would be worthwhile.
The impact of expanding into Perth would be to increase competition in that market, which could actually bring about
the kind of competition that we are seeing elsewhere.
As shown in the chart below, there are states that have fewer cafés per 10,000 residents than NSW, ACT and VIC.

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1.4 Perform data analysis to review business performance
Insert your response here:
The current outlook of the coffee market shows that:
 the overall market growth for coffee products and sales have skyrocketed

 consumer taste has shifted from in-store take-away to more compatible coffee pods (such as capsules and sachets)
and healthier choices (such as instant healthy coffee products and bottled coffee drinks)
 these shifts might have been due to the drifts in consumer behaviour toward a healthy lifestyle; people have been
moving from unhealthy living to more rejuvenating options
 also, as people are becoming busier every day, they tend to handle multiple tasks to be more productive; therefore,
drinking coffee while at work through a coffee machine allows them to save time throughout the day

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 moreover, consumers are turning towards more biodegradable packaging products to cause less impact on the
environment; the data shows that Australians are consuming between 2.5 – 3 million coffee capsules each day and
as an environment-friendly society, the country has woken up to the potential harm – this has introduced the use
of environment friendly alternatives.
These highlights are supported by the Focus Group interview outcomes:
 people believe that ‘organic’ is healthier

 more than 80% of the respondents stated that sachets offer more value and better convenience
 the healthy living style has encouraged people to visit gyms more frequently; therefore, they have started using
coffee products for weight lost purposes and also as performance boosters.
This outlook might have had the following impact on the business:
 the overall market growth for coffee products and sales have significantly increased
 for the same time frame, A & A’s market performance has significantly dropped

 though this underperformance might have happened due to stronger USD currency, the following factors should
be considered:
- A & A has been operating as a traditional roasting service provider
- the market has shifted from in-store take-away to more commercial and time-efficient product lines
- consumers are looking after their health; bottled drinks are in high-rise
- A & A does not seem to have the capacity to respond to these changes.

1.5 Analyse competitors to identify potential opportunities and threats

Insert your response here:
The market share data shows the following (see next page for the chart):

 Roasted Amigos currently captures the highest market share followed by Mocha Del Mar with 24.2% and 17.8%
respectively
 each of these two competitors have gained more than 10% market share in the past three years

 their success has caused A & A significant slump from 25.3% to 15.9%
 the remaining competitors have also faced certain levels of decline except Magic Robusta, who showed a slight
increase from 6.2% to 7.2%.
The two main reasons behind the success of Roasted Amigos and Mocha Del Mar are:
 the main reasons behind this crash are as follows:
- the innovative products launched by Roasted Amigos and Mocha Del Mar
- healthy choices
- convenience of use
- cheaper pricing
BSBMKG507 Student Assessment Workbook | Student ID: Page 19
 - long shelf life
- environment friendly packaging
 the change in consumer taste and preferences.
The drifts in the market has introduced two main opportunities:

 the number of businesses who demand long shelf life products

 fitness businesses who need bottled drinks.

Chart: Market share by competitors

A & A can benefit from these opportunities, as follows:

 utilise its loyal client base through introducing new products

 reengineer its in-house roasting equipment to cater the needs of the market.
These changes have the potential to quickly bring A & A up-to-speed.
On the contrary, the competitors have introduced the following two main threats to A & A’s business:
 loss of market share and hence, revenue
 these new emerging markets will be saturated and therefore, it will be much more difficult to the organisation to
penetrate these markets as the days go by.
The following strategies are recommended to A & A to counterattack these threats:

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 reshape the value offerings which are aligned to market needs such as bottled drinks, healthy options, etc.

 redesign their business model and infrastructure to use their core competency – in-house roasting – to manufacture
coffee capsules that are compatible with key industry players
 sell the new product lines on its chain of cafés as well as where appropriate such as Woolworths, Coles, fitness
centres, etc.

Task 2: Analyse Qualitative Results

In this task, you will analyse the datasets provided to you and mine out A & A Coffee’s overall business performance.
You will then analyse the results and suggest a strategic pathway to remain competitive in the market using a qualita-
tive forecasting method. Finally, you will document your findings in your Market Analysis Report.

2.1 Analyse performance data from all areas of the business

Insert your response here:

The three stores that have generated the highest revenue are, in respective order:
Store Growth
Adelaide $6,381,894.5
Melville $4,878,108.0
St Kilda $2,339,803.7
Adelaide has the highest profitability rate which may be due to the low number of cafés in South Australia – lower
competition, hence less alternatives. In the past five years, Adelaide has the highest jump in terms of revenue genera-
tion reflecting an outstanding 158.9% incline. Similar conclusion can be drawn for Melville, Western Australia.
On the contrary, the three stores that have generated the lowest revenue are, in respective order:
Store Loss
Carlton -$1,010,140.6
Brisbane -$554,365.70
Essendon -$405,009.70

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2.2 Identify over-performing and under-performing products
Insert your response here:
 it is observed an overall decline in product performance except fresh juice, milk coffee and iced coffee
 fresh juice shows an incredible upward spike which is highly likely to occur due to the change in market trends;
people have been shifting to a healthy living lifestyle
 iced coffee recovers in 2014-2015 which may be due to summer time or regular gym attendees
 milk coffee holds steady as the health trends in the market would not affect its consumption; people can drink skim
milk versions if need be
 juice (long-life) and cookie are the worst performing as:
- fresh juice is a better alternative
- the change in recent market trends, healthy living in particular, has shifted consumer’s preference to
healthy alternatives
- cookie is too expensive, $11.2
 based on the analysis, the following may be concluded:
- Arabica coffee has been the leading product with a 11% overall increase over the past five years; therefore,
it should be one of our key focus areas to increase profitability.
- More importantly, Robusta coffee has been generating similar total revenue with much higher demand
since 2010 with a general 38.1% growth rate; however, since 2013 there has been a slight decrease ob-
served, hence it should be the organisation’s second key focus.
- The primary focus should be given to fresh juice products due to the substantial skyrocketed figures – an
astonishing 410.3% boom in sales reflecting a total of $11,238,480 increase in revenue.
- However, ‘healthy cookies’ concept can be introduced to the market as none of the competitors have such
product line in their menu (gluten-free, sugar-free, organic stevia infused products, etc.).

2.3 Forecast market needs using qualitative visionary forecasting method

Insert your response here:
 Australians have been shifting to a healthy-living lifestyle and A & A Coffee needs to introduce products to meet
the market needs.
 Competitors have launched products that are more convenient to use such as coffee capsules, bottled products,
etc. and A & A Coffee has lost a significant market share due to these innovative products. The company should
urgently invest on new product line and undertake marketing activities that would replenish the brand image.
 Together with the loss of value in AUD, increased cost base for raw materials, competitor product ranges, the shift
in the consumer behaviour, and unproductive marketing activities are the main reason why A & A Coffee’s business
performance has been declining.
 This suggests that increased competition is probably a national phenomenon, although the trend certainly isn’t
seen everywhere.

 Compared to the states where the company operates, WA and SA have far fewer cafés per 10,000 residents. Inter-
estingly, Adelaide has made an incredible jump (158.9%) over the past five years and seems promising. As there is

BSBMKG507 Student Assessment Workbook | Student ID: Page 22

 already a big convergence in the NSW and VIC markets, expanding to WA and SA should be considered as good
candidates.
 Urgent tactics may include:
- introducing new, more profitable products such as health conscious coffee drinks and capsules
- penetrating these new products into giant supermarkets (Coles, Woolworths, ALDI, etc.)
- retiring less popular products (cookies) or redeveloping them (healthy muffins)
- expand into less competitive areas such as South Australia.

Task 3: Report on Market Data

In this task, you will plan and deliver an interactive presentation with two key stakeholders of A & A Coffee to present
your findings in the Market Analysis Report.

3.1 Prepare visual aids

Prepare your visual aids using an appropriate slideshow preparation software.
Attach the printed format to your Student Assessment Workbook.

BSBMKG507 Student Assessment Workbook | Student ID: Page 23

Brisbane is one of the highest revenue generators, therefore, a 7.7% decrease in the store’s performance has a high
impact on overall performance. Interestingly, though Essendon and St Kilda are close in distance, there is a huge gap
between the two stores. Also, Frankston has been performing low in VIC. St Kilda should be visited and the management
should ensure that similar practices are followed in the other two stores.
The current marketing activities are highly traditional and requires convergence to capture more traffic to our stores.
For instance, billboard advertising is expensive and may not communicate the brand message or achieve the amount
of reach required as people are in motion and they focus more on images than text. Also, albeit tradeshows are a great
option to showcase our coffee, generating leads may be problematic as there is no linkage to our store or website.
based on the analysis, the following may be concluded:
Arabica coffee has been the leading product with a 11% overall increase over the past five years; therefore, it should
be one of our key focus areas to increase profitability.
More importantly, Robusta coffee has been generating similar total revenue with much higher demand since 2010 with
a general 38.1% growth rate; however, since 2013 there has been a slight decrease observed, hence it should be the
organisation’s second key focus.
The primary focus should be given to fresh juice products due to the substantial skyrocketed figures – an astonishing
410.3% boom in sales reflecting a total of $11,238,480 increase in revenue.
This is crucial to penetrate the ‘healthy lifestyle’ market before it is too late.
Selling cookies does not seem to be profitable anymore which is supported by a -21.5% decrease in overall sales; this
may be due to the increasing health-conscious consumers.
However, ‘healthy cookies’ concept can be introduced to the market as none of the competitors have such product line
in their menu (gluten-free, sugar-free, organic stevia infused products, etc.).
Same concept can be applied to muffins – healthy muffins can be offered; this can be complemented with a slogan such
as ‘healthy muffins with fresh juice – what a great way to start the day!’.
Once the fresh juice concept is implemented and the desired awareness reached, long-life juices should either be dis-
continued or only sold from reputable ‘cold-press’ suppliers to unify the ‘health-conscious brand’ message.

BSBMKG507 Student Assessment Workbook | Student ID: Page 24

3.2 Report on analysis of market data
Your Assessor will observe your presentation. Refer to your Student Assessment Guide for detailed instructions.
Observation Check Sheet

3.3 Finalise the Market Analysis Report

Upon the receipt of the feedback from the two stakeholders, make the necessary adjustments to your Market Analysis
Report.
After an hour of meeting, PPT presentation and face-to-face communication, I have revised the final version of the
results and collected feedback.

On the other hand, the impact of expanding in to Western Australia will be to increase competition in the market, which
may actually bring about the kind of competition we see elsewhere. Further analysis is needed to clarify this concept.

Western Australia and South Australia have far fewer CAF s per 10,000 inhabitants than the state in which the company
operates. Interestingly, Adelaide has achieved incredible growth (158.9%) over the past five years, and the outlook is
promising. Due to the large integration of the South Wales Vienna International Centre markets, consideration should
be given to extend them to Western Australia and South Australia.

Emergency strategies may include:

Introducing new, more profitable products, such as health-conscious coffee drinks and capsules
Infiltrate these new products into large supermarkets (Coles, Woolworths, ALDI, etc.)
Eliminate unwanted products (cookies) or redevelop them (healthy muffins)

"Australians have begun to transform into healthy lifestyles, and A&A Coffee needs to introduce products that meet
market demand.

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BSBMKG507 Student Assessment Workbook | Student ID: Page 26
 For Assessor Use Only

Task Outcome Sheets

The Outcome Sheet below is the assessment questions and tasks for each of the assessment events that the student
is required to complete. Assessors, tick ‘S’ if the student achieved a satisfactory outcome for an assessment task and
‘NYS’ if the student does not meet these requirements. Also, you are required to write comments on the quality of
this evidence under the ‘Comments’ column. For your judgement on the student’s overall performance, tick ‘Satisfac-
tory’ if the student achieves a satisfactory outcome for all of the tasks or ‘Not-Yet-Satisfactory’.

Assessment Event 1 – Knowledge Questions

Assessment Event 1
S NYS Comments
Knowledge Questions

Question 1

Question 2

Question 3

Question 4

BSBMKG507 Student Assessment Workbook | Student ID: Page 27

 Assessment Event 1
S NYS Comments
Knowledge Questions

Question 5

The student’s performance for Assessment Event 1 is □ Satisfactory □ Not-Yet-Satisfactory

Assessor Signature: Date:

BSBMKG507 Student Assessment Workbook | Student ID: Page 28

Assessment Event 2 – Simulation
Assessment Event 2 S NYS Comments

Sub Task
1.1

Sub Task
1.2

Task 1:
Interpret Trends and Sub Task
Market Develop- 1.3
ments

Sub Task
1.4

Sub Task
1.5

Sub Task
2.1

Task 2:
Sub Task
Analyse Qualitative
2.2
Results

Sub Task
2.3

Sub Task
3.1
Task 3:
Report on Market
Data
Sub Task
3.2

The student’s overall performance is □ Satisfactory □ Not-Yet-Satisfactory

Assessor Signature: Date:

BSBMKG507 Student Assessment Workbook | Student ID: Page 29

BSBMKG507 Student Assessment Workbook | Student ID: Page 30
 Assessment Outcome Sheet
Student ID Family Name First Name

Course Code Course Title

Unit Code BSBMKG507 Unit Title Interpret Market Trends and Developments

Assessment Outcome
Assessor, please tick and date the student’s final outcome of this assessment:

Initial Submission Date Re-submission 1 Date Re-submission 2 Date

C NYC ___/___/____ C NYC ___/___/____ C NYC ___/___/____

Assessor’s Feedback
Assessor, please provide your comments on the student’s final outcome of this assessment:

BSBMKG507 Student Assessment Workbook | Student ID: Page 31

 Assessor Full Name Signature Date

Receipt of Student’s Assessment

Assessor, you must provide the completed copy of this receipt to the student as an evidence of submission of their
assessment to you.

Student ID Family Name First Name

Course Code Course Title

Unit Code BSBMKG507 Unit Title Interpret Market Trends and Developments

Extension Date Ap-

Due Date __/__/___ Date Received __/__/___ Y ❒N ❒ __/__/___
Approved proved

Assessor’s
Initial Submission ❒ Re-submission 1 ❒ Re-submission 2 ❒ Signature

BSBMKG507 Student Assessment Workbook | Student ID: Page 32

Student Feedback Form
Dear Student,
We are keen to improve our products and services, and assessment tools are a key part of this. Therefore, we would
welcome your feedback on the assessment. If you could take a few minutes to complete the form below, it would be
greatly appreciated. Please provide thoughtful responses as your opinions are highly valued.

Yes No Questions

Y◻ ◻N Did the assessment cover the training you received for this unit?

Were the tasks in Assessment Event 2 based on realistic activities that you would expect to be do-
Y◻ ◻N ing in a workplace?

Y◻ ◻N Did you understand the assessment instructions?

Y◻ ◻N Were the tasks easy to understand?

Y◻ ◻N Did the Assessor set up and run the simulation professionally?

Y◻ ◻N Was the Assessor’s decision fair?

Y◻ ◻N Was the Assessor’s feedback specific?

Y◻ ◻N Was the Assessor’s feedback comprehensive?

Y◻ ◻N Was the Assessor’s feedback constructive?

Y◻ ◻N Was the Assessor’s feedback timely?

Y◻ ◻N Were you satisfied with your effort in this assessment?

What would you change about this assessment?

What could the Assessor have done differently to improve the as-
sessment process and/or assessment feedback?

Overall, what was the most significant challenge of this assessment?

Overall, what did you like the most about this assessment?

Do you have any other comments?

BSBMKG507 Student Assessment Workbook | Student ID: Page 33

BSBMKG507 Student Assessment Workbook | Student ID: Page 34