Identifying And Evaluating Marketing Opportunities For BBQfun

a. comparative market information

Characteristics

Overview

What does it mean for BBQfun

Queensland overview

? high population growth of 5% per year

? new homes and renovated homes growing from a base of 50,000 per year

? low unemployment of 4.7%.

o Increase in customer base.

o With the increase in number of homes, organization will be able to increase its market share.

o Setting up store will help the local people to get job.

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.

o BBQfun offers great value outdoor lifestyle products with quality customer service. According to their objectives, organization was intending to obtain healthy sales of $11 million in 2016 which was attained appropriately.

o Now with the motive of expansion of the store in the overseas market, organization has decided to target the European market. With setting up the store in European market, organization has intended to attain healthy sales of $20 million in the subsequent year of its expansion (Sitapara, et. al., 2017).

Demographic

? 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.

o While conducting the market research for the purpose of expanding the business of BBQfun in the overseas market, European market has been selected.

o This is because European market is new and emerging market in terms of BBQfun’s opportunities. It has been observed that the target market has more opportunity to expand the business of BBQfun in comparison with other parts of the globe (Cerf, et. al., 2015).

b. competitors’ performance

Competitor

Overview

What does it mean for BBQfun

The Yard

o 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

o BBQfun’s management will be able to develop the marketing strategies in order to take the advantage of two marketing opportunities stated above as well as it will help the organization to set up an adequate position in the target market (Fleisher & Bensoussan, 2015).

BBQ’s R Us

o 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.

o With the help of expansion in the new markets, organization will be able to cope up with its desired objectives and it will ultimately boost up the sales volume of the organization.

Outdoorz

o : 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 e-commerce options.

o Primary focus of BBQfun in relation with the expansion is over those markets which are not yet penetrated by any other firm of the same industry as well as promoting their existing products in the new market with the objective to diversify its network.

c. customer requirements

Factors

What does it mean for BBQfun

? Selection – a wide choice of options.

Helps the customers to fulfil their requirements.

? Accessibility – the customer needs easy access to the store with minimal inconvenience.

Organization will adopt appropriate distribution system in order to approach to large number of audience.

? Customer service – the customer needs expert customer service to help sort through choices.

With the help of better customer service, organization will be able to retain them for long period of time (Armstrong, et. al., 2015).

? Competitive pricing – the customer needs all products/services to be competitively priced relative to comparable high-end outdoor lifestyle options offered by competitors.

Adaptation of pricing strategy considering the competition will help the organization to attain its desired goals in terms of acquiring leading position in the target market.

? Flexible payment – the customer needs easily managed payment plan.

This will help the organization to increase its customer base and their revenues as well.

? Quality guarantees – the customer requires three year product guarantees (as offered by most competitors).

Delivering qualitative products is always being a positive point for the organization and it helps the organization to increase their customer base along with retaining them for a longer time period.

New builds

Renovators

Replacements

What does it mean for BBQfun

Have visited BBQfun in previous month

70%

70%

50%

Average performance In relevance with expectations

Have bought a BBQfun product in previous month

70%

65%

50%

Average performance In relevance with expectations

Customer service is essential

90%

95%

60%

Increase customer satisfaction

Price is most important

10%

20%

95%

Help the organization to gain competitive advantage

Australian made is important

80%

65%

55%

Help to set up the effective position

Will buy online

100%

100%

100%

It will help the customers to get the products more conveniently

Will pay for online delivery if chosen

100%

100%

100%

Consumers will get the products without putting much efforts

Loyalty customer

30%

20%

10%

Increase trustworthiness towards organization

d. legal and ethical requirements

Types of legislation

What it is about:

How does it impact BBQfun

Privacy Act 1988

o The Privacy Act 1988 (Privacy Act) regulates how personal information is handled. The Privacy Act defines personal information as:

o …information or an opinion, whether true or not, and whether recorded in a material form or not, about an identified individual, or an individual who is reasonably identifiable.

o Common examples are an individual’s name, signature, address, telephone number, date of birth, medical records, bank account details and commentary or opinion about a person.

In relation to BBQfun, the Privacy Act 1988 ensures that its customers’ information shall be kept within the organization and not to be shared with any other party (ies) so that customers would not be ….

Anti-discrimination Act 1991

This act states that organization should treat its consumers and employees both in the same manner for acquiring the appropriate place in the target market.

Thus, BBQfun’s management has decided to adopt this legislation into their practices for avoiding the risk factors of discriminatory practices as well as to gain desired outcomes (Cerf, et. al., 2015).

Competition and Consumer Act 2010

This act states that competition practices should be executed in fair manner without hurting other’s emotions and goodwill. This will help the consumers to choose the most appropriate products from the available choices on the basis of their requirements.

According to this legislation, all entities need to practice in the fair manner in order to attain sustainable growth from the target market.

Australian Direct Marketing Association  - Direct Marketing Code of Practice

Direct marketing should be done in an appropriate manner without being in favor or against for any competitor or any organization.

This needs to be followed with the perspective of increasing organizational goodwill.

Free TV Australia

Free TV is a body which provides free air-to-air TV networks across Australia

With the help of this, organization could promote its products and services at low cost and it will help the organization to cover large customer base.

Australian eMarketing Code of Practice

This act says that every company adopting ecommerce platforms for marketing their goods should follow all the codes which relates to this act.

While performing e-marketing, email and non-voice mobile communication channels for promoting the products in the Australian market by following all the codes of this act.  

Australian e-commerce model

This act is made in order to protect the consumer’s interest so that they could be saved from fraudulent activities performed by companies performing on e-commerce platforms.

This will let the organization to perform its activities in fair manner which will lead the organization to attain its goals and objectives.

Spam Act 2003

This act was passed by Australian Parliament in 2003 to control commercial e-mail and other electronic messages.

In accordance with this act, BBQ’s competitors will not be able to pass on negative messages amongst the target audience for the organization (Charter, 2017). 

d. market share

Factors

What does it mean for BBQfun

? the greater disposable household income from two income families

It will increase the opportunities for BBQ which will lead to increase in the demand of their outdoor lifestyle products.

? the greater availability of affordable and interesting quality imports with the high value of the Australian dollar

Buying power of consumer will be increased and consumers will easily be able to spend on luxurious and other types of goods to satisfy their needs. Thus, it will help the BBQ to attain its desired goals.

? The marketing by popular TV lifestyle programmes.

This will help the organization to spread awareness amongst the target audience in relevance to the organizational unique products and services.

e. market trends and developments 

Factors

What does it mean for BBQfun

? Item quality – the preference for high quality items is increasing as customers are learning to appreciate the quality differences.

Providing qualitative products helps the organization to set a benchmark amongst the target market. This also leads to develop an effective image in the target audience’s mind-sets’ and maintaining the same sort of quality level will provide sustainable growth and development.

? Unique – our patrons appreciate the opportunity to include outdoor lifestyles in their home that stand out from the mass-produced and low-quality items.

With the help of unique products, organization could make a separate image amongst its competitors. It will also lead the organization to acquire big part of the market share (Liu & Tyagi, 2017).

? Selection – people are demanding a larger selection of choices; they are no longer accepting a limited offer in outdoor lifestyles.

Providing varieties of products will help the organization to target large area of market share. It will also lead to increase customer satisfaction.

f. new and emerging markets

Factors

What does it mean for BBQfun

· A growing market in a high growth area with a significant percentage of the target market still not aware of BBQfun value proposition.

Grabbing this opportunity will lead the organization to attain desired outcomes along with setting up an effective position in the target market.

· Increasing sales opportunities outside of our store locations – south east Queensland.

Strategies such as promotion, advertisement, etc. need to be adopted in order to grab opportunities for increasing the sales.

· Growing opportunity for online sales.

Online distribution system is unique as well as capable enough to increase the sales for organization. Reachability and approachability of the organization also increases towards its target audience (Raleigh & Headwater Partners I Llc, 2016).

g. Profitability

Factors

What does it mean for BBQfun

· Economy - the real estate market in south east Queensland continues to rise in price, and with it the disposable income of the population.

Economic conditions of Australian market is increasing continuously, hence, opportunities for increasing the profitability for BBQ are also increasing. BBQ is engaged in delivering outdoor lifestyle products and these are included in luxurious and other types of goods’ category. With the rise in economic conditions of target market, consumers’ disposable income is also increasing, thus, profitability could easily be increased.

· Political - the present Government focus and emphasis in future legislative direction will be about growth and productivity

All legislations, policies and rules described by the government authorities of Australia have been included by the management in the BBQ’s practices. Thus, this will reduce the chances of affecting the organizational profitability (Sánchez, et. al., 2016).

h. sales figures (forecast)

2014

2015

2016

How does it impact BBQfun

Total sales

$11,000,000

$12,000,000

$15,000,000

It will increase the profitability, market share and opportunities to expand in other parts of globe.

Gross profit

$5,110,000

$6,500,000

$7,500,000

With the help of continuous rise in the profits, it will help the organization to attain its desired goals and objectives.

Potential new markets

Factors

Options

Considerations

F or U (favourable or unfavourable)

· Export markets

Melbourne

This market has been selected through reviewing the demand for the products in Australia.

Favorable

Queensland

Purchasing power of consumers are much high in this market.

Favorable

Western Australia

This part could also be targeted as people over there are much more concerned about outdoor lifestyle products compared to other products and services.

Favorable

· Segments of the market not  currently penetrated

(customers within the market not tapped #1)

This will help the organization to enjoy the monopolistic market conditions.

Favorable

(customers within the market not tapped #2)

Being the only company in the market will help the organization to develop unique and distinctive position.

Favorable

(customers within the market not tapped #3)

Threat of new entrants will be less.

Favorable

Strategic marketing approaches

Factors

Options

Considerations

F or U (favourable or unfavourable)

· Market penetration

(present market, present product)

Market share growth

BBQ will continue its practices in relation with market penetration for developing the effective image in the target market.

Favorable

Customer loyalty improvement

With the help of increased market penetration activities, positive image amongst the target audience will be made.

Favorable

Customer value improvement

In order to increase the customer value, it is required to deliver products as per the consumer’s perceptions as well as their requirements.

Favorable

· Product development (present market, new product)

Design

Improvised and new designs will help BBQ to attract large number of audience.

Favorable

Technology

Using latest technological factors will help the organization to increase the market share and customer base.

Favorable

Distribution

Adaptation of unique distribution systems will help the organization to approach to the target audience easily and effectively.

Favorable

· Market development (new market, present product)

Exporting

Existing products could be approached to the new market segments easily with exporting and its related activities. It will lead the organization to uplift its performance and revenues as well.

Favorable

Licensing/ franchising

Under this method, physical presence will be established in new market segments with the motive of increasing demand for organizational products as well as to acquire large market share (Sitapara, et. al., 2017).

Favorable

Joint venture

It is a type of business under which BBQ will perform its operations along with an existing company or brand of the particular target market in order to make its separate image as well as to attain the desired goals and objectives.

Favorable

Direct investment

Under this method, BBQ will invest in other company’s business in the target market with the objective of increasing rate of return over investments.  

Unfavorable

· Diversification (new market, new product)

Related diversification

With the help of this approach, BBQfun will be able to develop new range of products for entering into new markets. This approach is bit risky in its own terms but at the same time, it also leads to increase in the demand of the organizational products and services.

Favorable

Unrelated diversification

While applying this approach, organization must consider the outcomes of market research so that the new product range could be able to satisfy the target audiences’ needs and requirements.

Unfavorable

Types of marketing & markets

Types of marketing

Market to serve

Considerations

Ranking (Most favourable = lowest number while least unfavourable = highest number)

· e-commerce

Large area of target market

This promotional strategy is an effective approach as it has the capability of covering large part of target market along with spreading awareness amongst them regarding organizational products and services.

Favorable

· business-to-business

Certain part of target market will be covered

This approach will be able to cover small part of the target market. Retailers, distributors, wholesalers, etc. parties will be approached under this method.

Favorable

· direct marketing

Particular part of the market

This is suitable only under certain circumstances. For example: toys produced for kids, thus, those will only be promoted to kids in order to attract them.  

Favorable

· ideas marketing

Crucial segment of target market

This approach will help the organization to approach to the crucial part of the target market in order to attain desired objectives and goals. For example: Luxury cars are only marketed to high income class people.

Favorable

· public sector marketing

Whole target market

This method has two means. First meaning describes the managerial focus over fulfilment of its objectives through delivering qualitative products. While the second meaning describes functions of marketing which will be used for approaching to the target market.  

Unfavorable

· services marketing

Retention of potential customers

This approach is used for retaining the crucial and potential market segments through offering the effective after sale services along with other value added benefits.

Favorable

· telemarketing

Certain part of the market

This approach is used at the initial stage of expansion of the organization. Organization could spread awareness amongst the target audience with regards to its products’ description and features.

Favorable

Gap analysis (analyse 4 marketing opportunities and choose two)

Strategic objective

Current standing

Deficiency

Action plan

Expansion

BBQ is operating at two locations currently and planning to expand its operations in overseas market.

Lack of experience in executing international operations.

Adaptation of appropriate market entry strategy

Developing effective image in the target market

BBQ has different and unique product offering, thus they could easily be able to gain its desired objectives of setting up effective image.

Lack of innovation

Organization will serve the target market as per their requirements.

Increase in the demand of the products

BBQ is performing well in their current locations and reviewing this success, organization has planned to expand its business in the target market.

BBQ has limited variety of products which may result as insufficiency in terms of expansion in overseas markets.

Management will increase product offering for new markets.

Acquiring leading position in the target market

In their present locations, organisation is performing well.

Existing companies in the target market are delivering high quality outdoor lifestyle products which are bit high in relation with the BBQ’s products.

In order to attain the leading position in new market segments, it is necessary to beat the existing company’s products in terms of quality, satisfaction, etc.

Impact  analysis (based on 2 marketing opportunities against following factors)

Marketing opportunity

Factors for consideration

How does it affect BBQfun?

Action plan

Market share

· Effect on sales volume

According to their objectives, organization was intending to obtain healthy sales of $11 million in 2016 which was attained appropriately.

Appropriate marketing strategies will be adopted along with effective marketing tactics.

· Growth

With setting up the store in the target market, organization has intended to attain healthy sales of $20 million in the subsequent year of its expansion.

Sales promotion strategies will be adopted.

· Market share

Organization offers great value outdoor lifestyle products with quality customer service. This will lead the organization to serve its target audience in an appropriate manner.

Product awareness program will be implemented in order to increase the market share in the target market.

· Profitability

With the increase in the revenues, profitability will be increased automatically.

Cost leadership strategy could be adopted for uplifting the profitability.

· Potential competitors

Opportunities available in the market will be utilised in order to beat the potential competitors and to develop separate image in relevance with the competitors.

Better strategies will be adopted in relevance with the competitors.

New emerging markets

· Effect on sales volume

Developing image in emerging market will increase opportunities for organization such as increase in sales, profits, demand for the products, etc.

Promotional strategies will be adopted.

· Growth

Attaining growth related objectives will be quite easy in new and emerging markets.

Marketing activities will be implemented

· Market share

With the help of new range of products, organization will be able to set up its effective market share in the new and emerging markets.

Promotional and advertisement strategies will be implemented in order to accomplish the organizational objectives.

· Profitability

New and emerging markets will provide various opportunities to the organization in order to enhance its profitability.

Sales promotion strategies will be implemented to boost up the sales.

· Potential competitors

Organization needs to provide enhanced qualitative products in the new market in relevance with the existing potential customers; this will help them to establish an effective position in the target market.

Competitive analysis will be implemented

Assessment of external factors

Types of legislation

What it is about:

How does it impact BBQfun

General Australian legislation

This legislation includes various codified and uncodified forms of law of Australia.

Ignorance of these laws while executing the operations may generate negative outcomes.

ATO regulations

It is a revenue collection body of Australian government. ATO is responsible for making all the rules, regulations and policies in relation with taxation, revenues, etc.

Organizational revenues and profitability will be affected.

GST implications

GST is a tax which is levied over all goods and services produced or imported within the country.

Cost of production will be increased due to imposition of GST.

Australian standards

Quality, safety, freedom, etc. standards are developed by Australian government and these all are known as Australian Standards.

All these needs to be implemented in the operations of organization in order to obtain desired goals effectively.

e-commerce best practices

This act is made in order to protect the consumer’s interest so that they could be saved from fraudulent activities performed by companies performing on e-commerce platforms.

While performing the operations over electronic mediums, all the regulations must be considered in relation with e-commerce model.

Marketing Code of Practice

· Australian Direct Marketing Association

· Direct Marketing Code of Practice

· Free TV Australia Commercial Television Industry Code of Practice

While performing the marketing activities, following standards should be considered:

· This body develops principles in relation with marketing and advertising.

· It refers to selling products directly to the consumers. Certain rules and regulations are described which increases the efficiency of this operation.

· Free TV is a body which provides free air-to-air TV networks across Australia.

All these regulations and code of practices are concerned about the marketing and advertising related activities.

Privacy Act 1988

The Privacy Act 1988 (Privacy Act) regulates how personal information is handled.

In relation to BBQfun, the Privacy Act 1988 ensures that its customers’ information shall be kept within the organization and not to be shared with any other party (ies) so that customers would not be treated in unfair manner.

Anti-discrimination Act

This act states that organization should treat its consumers and employees both in the same manner for acquiring the appropriate place in the target market.

Thus, BBQfun’s management has decided to adopt this legislation into their practices for avoiding the risk factors of discriminatory practices as well as to gain desired outcomes.

Competition and Consumer Act

This act states that competition practices should be executed in fair manner without hurting other’s emotions and goodwill. This will help the consumers to choose the most appropriate products from the available choices on the basis of their requirements.

According to this legislation, all entities need to practice in the fair manner in order to attain sustainable growth from the target market.

Evaluation of required change to meet current operation requirements

Marketing strategies

Factors for consideration

Changes required

Action plan

Customer base

· service an increased or different customer base

It is required for the organization to adopt certain advanced level strategies which could be able to adopt the changes required in the operations in terms of attaining desired goals.

Increasing product offering

· ensure continued quality of service

Upgradation of product quality on regular basis

Adaptation of latest technological factors

Quality of Service

· service an increased or different customer base

Quality products need to be delivered in relevance with the target audiences’ requirements.

Appropriate quality measures will be implemented.

· ensure continued quality of service

Regular improvements are necessary

Quality checks, tests, etc. will be implemented for continuous quality improvements.

Estimation of costs of resource requirements to meet changed operations

Marketing strategies

Factors for consideration

Estimated costs ($)

Justifications

Action plan

Market Share

· Additional staff

50,000

New store, new market, thus, additional staff will be required to perform organizational functionalities.

Hiring operations will be executed.

· Distribution costs

100,000

For increasing the product availability, distribution practices will be performed on regular basis.

Appropriate distribution system will be implemented.

· Equipment

500,000

Latest equipment will be used for increasing customer satisfaction and quality of products.

Quality measures and other standards will be implemented.

· Promotional costs

150,000

Spreading awareness amongst the target audience is necessary.

Advertising and marketing strategies will be adopted.

· Staff training

40,000

This is required to increase employees’ efficiency.

Training and development programs will be implemented.

New and Emerging markets

· Additional staff

70,000

New store, new market, thus, additional staff will be required to perform organizational functionalities.

Hiring operations will be executed.

· Distribution costs

95,000

For increasing the product availability, distribution practices will be performed on regular basis.

Appropriate distribution system will be implemented.

· Equipment

500,000

Latest equipment will be used for increasing customer satisfaction and quality of products.

Quality measures and other standards will be implemented.

· Promotional costs

250,000

Spreading awareness amongst the target audience is necessary.

Advertising and marketing strategies will be adopted.

· Staff training

75,000

This is required to increase employees’ efficiency.

Training and development programs will be implemented.