BSBMKG501 Identify and evaluate marketing opportunities

Assessment Task 1 – (Project and Presentation) Identify marketing

opportunities

INTRODUCTION

I have chosen BBQfun as an organisation to analyse for my assessment task

number 1. The purpose of this assessment is describe two marketing opportuni-
ties and how I identified them based in the chosen company.

BBQfun is a company established in 2009 by current CEO, Pat Mifsud.

BBQfun offers an extensive product range, incorporating both local and imported
goods relative with barbecue supplies. Since 2010, the increasingly competitive
retail environment, technological change, changes in consumer buying patterns
and consumer confidence has led to disappointing sales. However, BBQfun in-
tends to return to healthy sales of $11 million in 2012 through building on its or-
ganisational strengths, through targeted marketing strategies aimed at key seg-
ments and through exploiting marketing opportunities. Currently, BBQfun owns
two stores, one located 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 in which BBQfun 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
● controlling costs
● increasing sales revenue and profitability

Situation Analysis:

BBQfun 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 market.

Market summary BBQfun uses market data from various sources, including pri-
vate sources and ABS statistical data to better understand potential customers,
their specific needs, and how BBQfun can better communicate with them. Market
characteristics The profile for the potential BBQfun market consists of the follow-
ing geographic and demographic characteristics.

Note: Information needs to be updated for the present year. ● Overview South-
east Queensland area: ○ high population growth of 5% per year ○ new homes
and renovated homes growing from a base of 50,000 per year ○ low unemploy-
ment of 4.7%.

● Geographic:
○ our immediate geographic target is the area of Brisbane with a
population of 2,000,000 ○ a 30 km 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.

National competition

● The Yard: has a 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 south east Queensland. Considering e-
commerce options. Considered potential treat for entering market through e-
commerce because of large distribution network
● 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 Mel- bourne and Adelaide. Considering e-commerce options.
● Outdoorz: Large operations of only a few stores per city. Mass markets
outdoor lifestyles at good value prices. No imported goods. Extensive advertis-
ing. Low to medium quality. Strong in the replacement segment rather than
new and refurbished dwellings. Gaining strength in Brisbane market. Consider-
ing ecommerce options.

Local competition

● All independents. These stores are 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.
BBQfun management continually visit local outdoor lifestyle stores for competi-
tive analysis, providing BBQfun with timely information regarding other store’s
service offering. BBQfun do not see the competitors changing their marketing
strategy or product offer in the foreseeable future.

The customer requirements are very important part to analysis to meet all the
needs of our clients.

● Selection – a wide choice of options.

● Accessibility – the customer needs easy access to the store with
minimal inconvenience.
● Customer service – the customer needs expert customer service to
help sort through choices.
● Competitive pricing – the customer needs all products/services to be
com- petitively priced relative to comparable high-end outdoor lifestyle
options of- fered by competitors.
● Flexible payment – the customer needs easily managed payment plan.
● Quality guarantees – the customer requires three year product
guaran- tees (as offered by most competitors).

Also, we did a Customer Survey Data Marketing preferences in 2011 (survey of

500 customers):
From research carried out the legal and ethical requirements, BBQfun identified
that the present Government focus and emphasis in future legislative direction
will be about growth and productivity, which BBQfun sees as a positive for their
business model. There is also a strong push for environmentally sound business
practices and harmonised WHS legislation. BBQfun, as a business operating in
Australia, will abide by the law in all its dealings and comply with all legislation
that impact on its business activities.

BBQfun Privacy policy Purpose BBQfun is committed to protecting your privacy. It

is bound by the national privacy principles contained in the Privacy Act 1988 and
all other applicable legislation governing privacy. Where appropriate, BBQfun will
handle personal information in accordance with relevant legislation. Our respect
for our customers’ privacy is paramount. We have policies and procedures to en-
sure that all personal information is handled in accordance with national privacy
principles. This privacy policy sets out our policies on the management of per-
sonal information – that is, how we collect personal information, the purposes for
which we use this information, and to whom this information is disclosed.

Scope The scope of this policy covers all employees and contractors of BBQfun.
Resources Specific guidance for the implementation of this policy is available be-
low in the form of FAQs. Responsibility Responsibility for the implementation of
this policy rests with all employees, contractors and management of BBQfun. Rel-
evant legislation, etc.

●Privacy Act 1988 (Cwlth)

●Anti-Discrimination Act 1991 (Queensland)
●Competition and Consumer Act 2010 (Cwlth)
●Spam Act 2003 (Cwlth)
●Australian Direct Marketing Association (ADMA) Direct Marketing Code of
Prac- tice
●Free TV Australia Commercial Television Industry Code of Practice
●Australian eMarketing Code of practice
●Australian e-commerce best practice model.

Market share

BBQfun sales data worksheet Performance Market share (Projected*): Assume

market share constant across all products. Financial year (FY) Local independents
The Yard BBQ’s R us Outdoorz BBQfun FY2009/10

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

Market growth

In 2009, the national outdoor lifestyle market reached $300 million. Outdoor life-
style sales were 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 two income families
● the greater availability of affordable and interesting quality imports
with the high value of the Australian dollar
● the marketing by popular TV lifestyle programmes. Economy Note: Infor-
mation needs to be updated for the present year. At present, the real estate
market in south east Queensland continues to rise in price, and with it the
dis- posable income of the population.

Based on economic forecasts, BBQfun assumes that interest rates will remain
steady and will have little to no affect on disposable income. The same assump-
tion is made about employment levels, where BBQfun assumes that unemploy-
ment levels remain the same at approximately 4%.

New and emerging markets

A growing market in a high growth area with a significant percentage of the tar-
get market still not aware of BBQfun value proposition.
There is a huge opportunity in online market cause it reaches people in different
ways.
BBQfun steadily increased market share and profitability to 2010 when sales
peaked at $10 million. Since 2010, the increasingly competitive retail environ-
ment, technological change, changes in consumer buying patterns and confi-
dence has led to disappointing sales. However, BBQfun intends to return to
healthy sales of $11 million in 2012 through building on its organisational
strengths. Organisational strengths will be built through targeted marketing
strategies aimed at key segments and through exploiting marketing opportuni-
ties.

Gross profit $6,677,000 Gross profit.

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

Break-even/ profit analysis Note: Information needs to be updated for the present
year. See approved budget for current projections:
● direct costs (COGS) ● indirect costs (expenses) ● projected revenue.
With the information above we can determine a potential new market for the or-
ganisation.

Segments of the market not currently penetrated:

New Target Market(s): Online buyers

WHO IS YOUR CUSTOMER? Individual and busy customers with a social lifestyle
who search products online
Age: 22-60
Gender: both
Marital Status: non - relevant
Financial Profile: employed or self employed
Income: $65,000 to $200,000 year

WHAT ARE YOUR CUSTOMER’S NEEDS?

Buying Habits: they don’t like to spend time buying so they search online for the
best options and get it
Interests: social and friendly type of personality
What is Important to Him/Her: spend time with friends/family, be practical
Lifestyle: outdoorsy lifestyle, camping, beach, enjoy
Other Needs: Business Customers
Purchase Decision-Makers: quality and price

Opportunities

• A growing market in a high growth area with a significant percentage of the

tar- get market still not aware of BBQfun value proposition.
• Increasing sales opportunities outside of our store locations – south
east Queensland.
• Growing opportunity for online sales.

ThreatS

• Low-cost competition.
• Competition from national chains moving into the Brisbane market,
potentially through online sales.
• A possible slump in the economy reducing customer's disposable income
spent on outdoor lifestyles.
 Assessment of markets

It is classified as an Alpha+ World City by Globalization and World Cities Research

Network, indicating its influence in the region and throughout the world. [22]
[23]
Ranked eleventh in the world for economic opportunity,[24] Sydney has an
ad- vanced market economy with strengths in finance, manufacturing and
tourism.

New opportunities

❖ E-commerce
❖ Expand business, opening a new store in Sydney:

I have found two potential opportunities after identify some failures to recruit
qualified sales/customer service staff due to increased competition in south east

Sydney's estimated metropolitan population was 5,230,330 and is home to

approximately 65% of the state's population.
Queensland and failure to adequately train employees in line with marketing
strategies, so I would identify a new market in online business or ecommerce and
Find Clients On Social Media as a platform that it doesn't need much real space
for customers.

Also there are stores that have capacity for twice current stock levels, which is
an opportunity for expansion and get stock for products that it would be sold on-
line.

Of the 7.4 Billion people in this world, 3.5 Billion people or 47% are online every
day. They are searching for information, sharing on social media or shopping on
e-commerce websites.
This number is expected to grow as the world becomes increasingly dependent
on mobile technology to search the Internet. Today there are an estimated 2.3
Billion smartphonesworldwide. But in 2020, the total number of smartphones is
expected to hit 6.1 Billion.
Among the most popular online marketing tools that you can use to create in-
bound traffic to your website:
• Social Media – Of the 3.5 Billion people online every day, 2.34Billion or
67% are on social media.
• Blogging – Companies that blogged 16 times a month received 4.5
times more leads than those that blogged 0-4 posts per month.
• E-mail Marketing – E-mail marketing is 40 times more effective in acquir-
ing customers than Facebook.
• Use Videos – Embed a video on your Home page. A video can deliver
your messaging content faster and more efficiently than text. Video on a
land- ing page can increase conversion rates by 80%.

Some ideas of marketing for e-commerce

• Have a Business Website. Be present online is today a must to reach

those clients who don’t want to travel to buy something.
• Find Clients On Social Media through different online strategies like SEO

The effect of these marketing opportunities on the business has the ability to
have significant impact on your business, both good and bad depending on the
quality of your website. After all, “81% of Shoppers Conduct Online Re-
search Before Buying.” Without a website, it would be difficult for shoppers to
consider you. Some positive impacts a website can have on some businesses, is
as follows:

• A website helps level the playing field against larger competitors

• It has the ability to boosts your credibility
• It creates more visibility for your business if optimised for search
• Improve Business Credibility
• Build Your Business
• Enhance Your Online Presence
• Build a Strong Relationship with Your Market
• Efficient Way to Promote Your Business
• Boost Your Reputation as an Authority
• Create a Tool for Sales Generation

The effect in new opportunities

The estimated effect of the two marketing opportunities on the business, are sig-
nificant, the effect on sales would increase the volume in 5% per month and the
market share in a 2%.
PROPOS

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Tota $16,0 $17,0 $18,0 $19,0

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Gross $7,5 $8,5 $9,5 $10,5

Profit 00,0 00,0 00,0 00,00
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AL MARKETING APPLIED
1. Build a dynamic and appealing website to the target by having in the main
page a full 4k video of a group of friends having a BBQ and showing the
de- tails of it.

2. Build a strong relationship with your market by know who are they and
make special deals like ‘give aways’. For this idea we added a pop up register
box in the website so we can build a date base.
3.Diversification. No sale only bbq but sales all type of accessories and shows
it as new product in your website