Evaluate marketing opportunities

Submission details

Candidate’s name ROBINPREET SINGH Phone no. 0449665948

Assessor’s name Phone no.

Assessment site

Assessment date/s Time/s

INTRODUCTION
Every organisation has a product, every organisation exists in a competitive market and every organisation has a
marketing strategy to compete for prominence in their market. This is true of private enterprise, not-for-profit
organisations and even government departments and other areas of the public sector. A marketing strategy is
governed by a global marketing philosophy, the motivation at the very heart of the organisation. A marketing
strategy must reflect this philosophy and therefore speaks to the very heart of the organisation.
There are marketing opportunities everywhere. The test of an excellent marketing strategy is an organization’s
ability to identify and evaluate these opportunities. Not all marketing opportunities are suitable for every
organization’s needs, an active marketing department acts as a filter as well as actively seeking out new
opportunities. A marketing manager must also be sensitive to changes from within the organization as well as
fluctuations and shifts in the external market.

SUMMARY
1. MANUFACTURE AND SELL OWN BRAND
 We will be manufacturing our own brand so it will be easy for us to maintain quality of our
product

 We can also reduce the manufacturing cost upto some extent without compromising the quality.

 While delivering good quality of product we can easily get more market share.

 Delivering good quality product in local market will result into mouth to mouth publicity.

2. SELL PRODUCT THROUGH E-COMMERCE

 We will form a customer care team to handle customer queries like any problem, suggestion,
any quality issue etc. that will create faith in customer’s mind for us thereby increasing our
market share.

 Making our e-commerce site more customer and user friendly

 Tie-up with other sites like facebook, youtube etc for promotion of our e-commerce business .

3. SELL PRODUCT AT BARGAIN PRICE

 We will form an expert team which will be dealing specially for bulk bargain orders
 We will be organising small meetings for our regular bulk bargain customers.
 We will also be selling defected pieces at bargain price that will reduce our losses.
BBQ fun sales data worksheet

Performance

Market share (projected*):

Assume market share constant across all products.

Financial year (FY) Local The Yard BBQs R us Outdoors BBQ Fun
independents
FY 2013–14 30% 0% 25% 23% 22%
FY 2014–15 30% 0% 27% 23% 20%
FY 2015–13 30% 0% 22% 25% 23%
*
FY 2016–17 30% 0% 22% 24% 24%

Sales performance:
Financial year (FY) Total sales
FY 2013–14 8,500,000
FY 2014–15 10,000,000
FY 2015–13 9,000,000
FY 2015–16 9,500,000

Estimated total market potential for FY 2012–13(SE Qld)

Calculate potential sales for marketing opportunities.

Total market potential (with potential online sales included)

Use to calculate potential sales with e-commerce included in FY 2012–13.

Financial year (FY) BBQs Outdoor BBQ Accessories Total

Furniture
FY 2012–13 25,000 13,000 42,000 80,000
FY 2013–14 35,000 15,000 58,000 108,000
FY 2014–15 40,000 17,000 68,000 125,000
FY 2015–13 45,000 19,000 75,000 139,000
50,000 21,000 85,000 156,000

Own branded products

Assume market share of 24% for BBQfun to calculate projected number of units to sell for each item in FY 2012–13.
 BBQs Outdoor Furniture BBQ Accessories
Number of buyers 30,000 13,000 56,000
Quantity 1 1 3
Average price $600 $850 $50

Bargain market
Assume market share of 25% for BBQfun.

BBQs Outdoor Furniture BBQ Accessories

Number of buyers 40,000 20,000 70,000
Quantity 1 1 3
Average price $500 $650 $40

With E-commerce
Assume market share of 24% for BBQfun.

BBQs Outdoor Furniture BBQ Accessories

Number of buyers 50,000 21,000 85,000
Quantity 1 1 3
Average price $620 $880 $55

Opportunities and profit figures for calculation

Sales volume (units)
Price
Unit contribution margin
Total revenue
Total gross profit FY 2016–
17
Additional fixed costs
Own brand E-commerce Bargain market
BBQ:7,200 BBQ:12,000 BBQ:10,000
Furniture:3,120 Furniture:5,040 Furniture:5,000
Accessories:40,320 Accessories: 61,200 Accessories:52,500
BBQ: $600 BBQ: $620 BBQ: $500
Furniture:$850 Furniture: $880 Furniture: $650
Accessories:$50 Accessories:$55 Accessories:$40
BBQ: $500 BBQ: $300 BBQ: $200
Furniture: $600 Furniture: $420 Furniture: $220
Accessories: $40 Accessories: $20 Accessories: $10
89,88,000 15,24,1200 10,35,000
70,84,800 69,40,800 36,25,000
Add lease: $1,000,000 Add training: $50,000 See approved budget
(no change in fixed
Add labour: $500,000 Add online store costs)
development:
Add plant $100,000
(depreciation):
$500,000 Add new plant and
equipment
(depreciation):
$150,000
Add labour: $250,000
 Own brand E-commerce Bargain market
Add reconfiguring of
warehouse/
office: $50,000
Total net profit 50,84,000 63,40,800 36,25,000
FY 2016–17

RANKING AND EXPLANATION

Ranking of our opportunities will be as follows
1. Seeling product through E-Commerce because
 Total net profit is highest
 Number of customers are highest
 As discussed earlier deputing customer care staff will result in increasing our market
share
2. Manufacture and sell own brand because
 Total net profit is higher than selling product at bargain price
 Quality of our product will help us earning good market share
3. Sell product at bargain pricebecause
 Bulk bargain orders result in decrease in profit