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Marketing Strategies Of BBQfun

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Discuss about the Marketing Strategies of BBQfun.



BBQfun is a company that offers different products and incorporates local and imported goods since its inception in 2009. Since 2010, the retail environment has experienced competitive pressures, technological changes, changes in consumer confidence and consumer purchasing behaviors. Despite these uncertainties, the company has always wanted to turn tables around to overcome the disappointing sales and return to exemplary healthy sales by building its organizational strengths using targeted marketing strategies. Indeed, this is the only way the company can exploit marketing opportunities. Today, BBQfun operates Kenmore and Gold Coast stores. However, it seeks marketing and business opportunities to that would enable it achieve national expansion.

Comparative market information

Southeast Queensland State

The company operates in Queensland whose economy is performing healthily and exceptionally. With the new homes growing by about 4.8 million annually, the company stands to benefit. According to the company, the Queensland has the lowest unemployment rate of about 1.4% percent thus gives an opportunity for the company to maximize the purchasing power of customers (ABS 2017).


Currently, BBQfun targets Brisbane where it intends to overcome competition and double its market share. This geographic target has a population of about two million people, but the firm targets about 2.3 million potential customers. With the geographical area of 30 kilometres, the store’s market footprint must be felt. The geographical location proves critical in defining the future of BBQfun.


Since BBQfun offers a wide range of products, it will meet the expectations of both male and female customers. Besides, it focuses on people aged 20-50, and whose incomes appear stable. The targeted demographic are people who have completed their high education such as undergraduate or postgraduate learning, and earns about $90,000 as their average household income (ABS 2017).

Customer requirements

BBQfun must consider various factors in addressing the customer requirements. Important, the company must address the issues relating to selection. According to Pulaj and Kume (2013), the company has different options to select from, so that it can meet the demand of consumers based on the available requirement. The company should also value accessibility as a factor in serving its constituents. Competitive pricing used by the firm should be considerate and sensitive to the needs of customers in the targeted market (Nazarpoori, Hakkak & Mohammadi 2014). BBQfun has no option than to charge competitive prices on its products and services. The companies can consider quality guarantees thus meet the expectations of customers. This firm has an edge in the market because of many loyal customers who have embraced its store’s offerings.


Legal and ethical requirements

The company must be privy to the types of legislations to guide its operations in Australia. The most important statute is the Privacy Act 1988 that has incessantly regulated how companies handle customer information (AG 2014). The Act provides that any information, material, or opinion must be treated with a lot of contempt it deserves. The confidential information that the company must avoid sharing publicly could include telephone numbers, individual’s name, medical records, signature, bank account details, address, and the opinions of individual customers. BBQfun must use the Privacy Act so that it keeps private information without sharing it with the third party. The Antidiscrimination Act 1991 is essential in serving customers beyond the reproach.

Competition and Consumer Act of 2010 is another important statute to guide the business environment (AG 2011). Companies such as BBQfun have the duty to protect the interests of customers by offering quality products and competitive market prices. The country has further established Australian Direct Marketing Association that provides critical marketing code of practice. The code of practice defines the standards for direct marketing that ensures fair marketing space and opportunities for all. The Australian e-commerce model justifies the activities firms should undertake to meet the expectations of the targeted customers (ACMA 2015). BBQfun has established its online infrastructure thus ensures it achieves its online business goals.

Market share

The available market information focuses on the independent competition with regard to the BBQfun. With the locally produced products and services, the company has collected over forty-eight percent of the market shares. In 2012, the outdoor lifestyle market was valued at $400 million. It further predicted that outdoor lifestyle sales to be growing at 6 percent annually. This growth could be attributed different factors. With these factors, BBQfun customers have justified their ability to afford and make purchases at all levels.

Market trends and developments

The market trends in Australia seem to have given opportunity to companies to thrive and grow. The patrons have completely appreciated the opportunities in the market. For several years, the country has experienced mass production of low-quality items that have affected the outdoor lifestyle markets. Selection is another factor that has influenced the market trends. For example, the customers in the market are busy demanding for quality products. Indeed, these people no longer accept limited offers because of a larger selection options.


New and emerging markets

Given the level of competition in the outdoor lifestyle market, businesses are looking for new and emerging markets as solace and points of growth. It has emerged that the high-growth areas are yet to expand to new and emerging markets. The company must focus on increasing sales beyond the out store locations. By focusing on Southeast Queensland, the company has an opportunity to grow its sales. The online sales also offer a growth opportunity for this organization. BBQfun must consider these factors to promote its products to targeted customers.


Every company is in business for one purpose: making profits. However, the economy is an important factor to determine the profitability level of a firm. In Southeast Queensland, the real estate market is boosting the economy as prices of real estate escalate. This implies that the disposable income is increasing at unprecedented rate. Political factors also determine the level of profitability in any market. Currently, the Australian government has focused on adopting new laws that will boost production and growth. BBQfun must maximize this opportunity to improve its profitability.

Sales figures

The sales forecast in the outdoor lifestyle market is positive and encouraging. For examples, since 2014, the company has continuously reported increasing sales and gross profits. The total sales for 2014, 2015, and 2016 were $11 million, $12 million, and $15 million respectively. The gross profits also followed similar growth trends as $5.11 million, $6.5 million, and $7.5 million respectively. This growth offers BBQfun and opportunity for growth because every indication is clear that it stands to benefit.

Potential New Markets

Export markets

The company needs to expand its operations in the export markets. In fact, many countries are yawning for outdoor lifestyle items offered at an affordable rate. This provides new geographic opportunities that the firm can never underestimate. The opportunities associated with the export markets include expansion of customer base, increase sales, and expand its appeal and reputation. However, some markets are impenetrable because of barriers.

Evaluation and Analysis

Market penetration would be the best approach for the company to enter the targeted market (Wolters Kluwer 2012). BBQfun considers gaining a high market share growth. It will thus focus the existing businesses that cover Brisbane and Sydney. The organization intends to increase its business beyond the Southeast Queensland so that it can compete with other established firms. For the firm to compete effective, it will invest in online shopping and open new retail outlets in the current locations. This will ensure it improves customer engagement programs through loyalty card services.

Strategic Marketing Approach

The expansion into new markets is inevitable and the company must seek strategies that would make it succeed. The various marketing approaches would help the firm to increase its market share, develop new products and markets, and diversity. With the objective of achieving market share growth and penetrate the present market using the present products, BBQfun  has to be ready to compete with other rivals in Brisbane and Sydney. BBQfun must also consider developing new products in the present market. Through e-marketing platform, the company will overcome competition and enhance its profitability (Gonsal 2016). This is achievable through exporting, licensing, joint venture, and direct investment. Joint venture is an ideal goal to share cost s and enter even difficult markets. Given the unpredictability of the business environment, the company must consider diversification to remain relevant to the market.


Marketing Mix

The marketing mix analysis focuses on pricing, advertising and promotion, distribution, and customer services. Pricing strategy that the company will use depends on the comparable prices it offers for comparable quality (Amaldoss & Jain 2005). The marketing strategy also determines the mix such as e-commerce, direct marketing, and business-to-business are essential in reaching customers in the current market.  Hall, Jones and Hoek (2010) argued that advertising and promotion would benefit the company. This will compel BBQfun to use advertisements and insert them in the Brizzy and other public relations campaigns to boost its marketing. The promotion that the company needs to consider will take the in-store entertainment (Hall, Jones & Iverson 2009). BBQfun needs to consider customer service because its philosophy revolves around the services to customers. The investment is beneficial to loyal customers as BBQfun can recommend them for its friends.

Competitive Analysis

Competitors’ performance

Competition in this industry is fierce as every player struggles to attract and retain his or her customers. BBQfun faces intense competitor from The Yard, Outdoorz, and BBQ’s R Us. However, these competitors have failed to satisfy the needs of customers by addressing their concerns properly. Despite the Yard’s significant depth, it offers limited selection. Indeed, the company lacks any significant promotional and marketing efforts to attract its customer base (Prahalad 2009). Unfortunately, the young professionals targeted by BBQfun prefer retailers offering products of high quality. These customers prefer a one-stop shopping where they can conveniently get their products. The R Us also offer fierce competition in the market because it deals in different outdoor lifestyle products such as furnishings and trinkets. BBQ’s R Us remains a force to reckon with, especially in the replacements segment. It is further considering using e-commerce options in Adelaide and Melbourne (Gonsal 2016). BBQfun has an opportunity to counter the impact of this company.

Outdoorz is also a large company whose operations are evident in some few stores in every city across Australia. This firm offers market outdoor lifestyle products at the best market values. It never engages in imported goods. This company has invested heavily in extensive advertising thus gives its rivals some headache. Unfortunately, it has focused on the production of low and medium quality items. BBQfun must take advantage of its quality customer services and products to beat Outdoorz.

Marketing opportunities

BBQfun intends to use its high quality and extensive product range, moderate pricing, product guarantees and great customer services to gain traction. Without a doubt, the basic needs of the market are based on fashionable, quality, and unique outdoor lifestyle products fulfilling the specific needs of the targeted market. The company intends to utilize market data from different sources such as ABS statistical and private sources thus understands specific needs, potential customers, and how to communicate with them.

External Factors

The legislative aspects have influenced the business operations in Australia. Privacy Act has ensured customers are protected and their confidential information remained intact. Similarly, in Australia, the anti-discrimination laws are inevitable as government compels the businesses and companies to practice equal opportunities in their employment efforts. Competition and Consumer Act has further made the business operations practical and fair to all participants. This ensures that consumers are protected and competition is based on fair practices not underhand dealings. In a fair business environment, the prospects of success are high as every player competes for space.


Situational Analysis

BBQfun’s offerings such as high-quality products, moderate pricing, product guarantees, and exemplary customer service give it an edge in the market that is controlled by low-quality firms. The basic market needs revolve around unique, fashionable, and quality outdoor lifestyle products that meet the expectations of the targeted market.

Market Summary

The company relies on the market data that it obtains from different sources including the ABS statistical data and private sources to understand the needs of potential customers and determine the best communication strategy. This market has unique characteristics defined because of demography and geography. The Southeast Queensland reports a population growth rate of about 4.7 percent. With the low unemployment rate of 4.7 percent, it stands to provide an opportunity for the firm to grow. Importantly, the rate of growth in renovated and new homes is about 50,000 annually. The geographic characteristics are also interesting the state stands at a 30 kilometre square area with a population of about 2 million living in Brisbane area. It thus targets about 450,000 potential customers. The demographically, BBQfun targets male and female customers aged 20-50. The high percentage of them is young professionals based in the CBD. These customer set have achieved high educational qualifications including postgraduate and undergraduate level.

Market Needs

The needs of the market include flexible payment because customers need a flexible payment plan (StyleUp 2015). Additionally, it is important to consider quality guarantees as the targeted customers have opted for three-year product guarantees. Since the competitors offer similar guarantees, BBQfun would benefit by it. Customers in this market need the products offered at competitive prices. The firm should use competitive pricing for the high-end outdoor lifestyle items (Deloitte 2015). Finally, customer service can help to sort the available choices. Therefore, the targeted market requires quality products. BBQfun needs to locate its stores in accessible points to allow customers to purchase their products conveniently.

Market Trends

The outdoor lifestyle stores market trends are skewed towards sophisticated and informed clients. The customers in this market have become more sophisticated based on item quality, selection, and uniqueness. The market value is projected at $13.5 billion (Mason 2016).

Market Growth

At inception, the industry was valued at $300 million. However, it has grown at an estimated rate of 6 percent annually because of the intensive marketing strategies such using TV lifestyle programs, improving disposable household incomes and availability of interesting and affordable quality imports (Kaufmann & Panni 2013).


The economy of Southeast Queensland is growing at unprecedented rate because of the rising prices of real estate products (Corderoy 2016). With the economic forecasts being positive, the company has assumed the rates of interest to be steady and the impact on the disposable income insignificant. This assumption holds in an environment where the employment levels is the same and stands at 4 percent.


The government has invested in the future legislative directions as acknowledged by BBQfun. These legislations have promoted productivity and growth thus improves the firm’s business model. By strongly advocating for the environmental friendly practices, the company stands a chance to overcome competition. It should comply with the WHS legislation thus improves its operations in Australia (AG 2017).

Marketing objectives

The company will manage to increase its market share by using e-commerce marketing strategy.


The company needs to conduct proper site selection by identifying the new dwelling populations and establishing shopping patterns because of easy access. With the advertising budget of about $180,000 annually, BBQfun should invest in the advertising program by targeting the local magazine, radio, and letterbox drops. The company will conduct local advertising and direct mails and insert coupons in the country’s BrisNews magazine to boost its campaign. The company will also ensure its articles are posted into its BrisNews magazine. With the introduction of these features in the magazine, the company stands to increase its sales.


Based on the findings in this assignment, BBQfun stands a high chance of imparting a great competition and outsmarting its rivals. With diverse marketing strategies, it can overcome other rivals such as The Yard. Social medial, e-commerce, and telemarketing can benefit the firm. It has to consider these factors and even train staff to remain relevant in the market. Competition in the outdoor lifestyle market is unquestionable and the company needs to maximize opportunities to retain its position in the market beyond Australia. Exporting, joint ventures, and licensing as among the factors that can see the firm introduce new products in new markets. Opportunities in the emerging markets are inevitable and the firm must invest in online marketing to avoid competition.



ABS, 2017, Mar 23. “3101.0-Australian demographic statistics, Sep 2016, available online

ACMA, 2015, Jul 15. Australian eMarketing code of practice, available at:

AG, 2011, Jan 1.Competition and Consumer Act 2010- federal register of legislation. Available at

AG, 2014, Jan. Privacy fact sheet 17: Australian privacy principles. Available at

Amaldoss, W & Jain, S, 2005. “Pricing of Conspicuous Goods: A Competitive Analysis of Social Effects”, Journal of Marketing Research, vol. 42, no. 1, pp. 30-42.

Australian Government (AG), 2017, Feb 17. “WHS/OH&S acts, regulations and codes of practice”,, available at

Corderoy, J, 2016, Dec 26. “Property 2017: gold coast set to boom, but still no end in sight for Sydney”,, available at

Deloitte, 2015. Global powers of luxury goods 2015: engaging the future luxury consumer. Available at

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