Identify Market Opportunities Assignment

Identify Market
Opportunities
-BBQ fun case study
Assessment Task 1
BSBMKG501

Introduction
• Identify the market opportunities within BBQ fun and assess it at the same time.
BBQ fun is one of the lifestyle retailer that caters to the growing needs for
furnishing new as well as renovated dwellings in great Brisbane area.
• Some of the benefits are listed below:
• Selection- BBQ fun aims at providing wide choice of options for their customers
• Accessibility- BBQ fun believes in providing easy access to the store with minimum
waiting time for their customers
• Customer service- BBQ fun believes in helping their customers and provide after-
sales services and guarantees at the same time
• Competitive pricing- At BBQ fun, all the products or services will be competitively
priced relative to high-end outdoor lifestyle lines.

Identify market opportunities for
BBQ fun
• Comparative market information
• Competitor’s performance
• Customer requirements
• Legal and ethical requirements
• Market share
• Market trends and developments
• New and emerging markets
• Profitability

Comparative market information
• In the year 2008, it can be noted that the National Outdoor lifestyle
market was able to reach to a level that crossed $300 million
dollars. The sale of outdoor lifestyle estimates growth by at least 6%
for the next few years. It can be seen that the growth was obtained
because of various factors. The greater disposable household
income from the two income families is one of the factor where it
can be noted that greater availability of affordable as well as
interesting quality imports will be having high value of the
Australian dollars. This was done by marketing through popular TV
shows such as Homes Beautiful as well as Better Outdoor-Lifestyles.

Competitor’s performance
• National Competition
• In case of Yard, it actually has limited section but require significant depth of analysis.
There is no significant marketing or promotion present. High pricing price can be noted, but
the quality of the products is quite good as compared to others. BBQ fun operates both in
Sydney and Melbourne. They offer wide range of outdoor-lifestyle products such as trinkets as
well as furnishings. There are lot of cheap imports but the company focus on established
markets. They even are strong in the replacements segment.
• Local competitor
• The stores in the area are operated by individual owner operators and the products offers
varies based on the preferences of the owner. They have very little imports and mostly
dominated by retailing Australia manufactured goods. In addition, the average item sale price
is approx. $250 collectively and enjoys a market share of 48% as well as it had been growing
with 8% each year.

Customer requirements
• The Mission Statement of BBQ fun is to render customer with the most
extensive assortment of quality in the product such as outdoor lifestyle
one and make an effort to offer it in the market. The after sales service
of the company is taken into consideration by the company as they aims
at managing the long-term repayment plans that make unique imported
as well as high quality outdoor lifestyle products. The products are
made available to the customer who wishes to purchase product that
can bring pride to their house with the products offered by BBQ fun.
The company aims at providing services that exceed expectations of the
customers in the near future.

Legal and ethical
requirements
• It can be seen that all types of media are bounded by ethical as well as legal
values, but at the same time, individual make use of those media that fails to
meet either of these requirements such as legal and ethical factors. Some of
the issues that are present in the ethics of entertainment media are explained
below with proper justification:
• One of the issue noted in entertainment media is depiction of violence and
use of strong language.
• Product placement
• Stereotypes
• Taste and taboos

Market trends and developments
• According to recent market trends, the outdoor lifestyle stores aims at
attracting sophisticated as well as informed customer. These customer are
well informed about the current market trends of these type of products
and ask for good quality products so that it can match up with their
personality and stardom. The customer look for the following qualitative
characteristics in the product offered by BBQ fun and these are mentioned
below with proper justification:
• Product quality
• Uniqueness
• Selection

New and emerging markets
• In this report, proper analysis had been done on understanding the industry of outdoor
furniture for 10 European countries. After that, evaluation was done in order to gather
information about the performance of the sector, understanding the product trends as
well as destination types and distribution channels. It is essential to understand the
competitive systems as well as its major competitors in the industry as a whole. In this
assignment, proper emphasis had been given to collect data on production, consumption
of outdoor furniture by country, exports as well as imports at the same time. On analysis,
it can be seen that each country imports and exports had been further broken down by
country as well as geographical area of origin or destination. In addition to that, an
overview of product trends had been illustrated on the basis of materials and colours as
well as understanding the distribution system as provided by each specific country by
breaking down the sales by the distribution channel as by selected countries. For each
country, list had been given about the outdoor furniture distributors.

Researching potential new
markets for the organization
• Export markets
• Segments of the market not currently penetrated

Considering strategic marketing
approaches
• Increasing market share
• Developing new markets
• Developing new products
• Diversification

Selected marketing opportunities
for BBQ fun
• Market share
• Profitability

Market Share
• BBQ fun even aim at increasing sale from $15 million
every year to $20 million each year within a time span of 3
years. The company aim at increasing the number of
loyalty customer list from 10,000 to 16,000. The company
even desire in establishing brand recognition in Brisbane
area so that the people can recognize the brand while
conducting random survey method that will be taken in
period of 18 months’ time.

Profitability
Profitability Average price Gross Profit
BBQ $600 45%
Outdoor Furniture $900 50%
BBQ Accessories $50 60%
Total $450 50%

Using numerical analysis or statistical methods
for forecasting effects
• Sales Forecast
• Expense Forecast

Sales Forecast
Sales Forecast 2009 2010 2011
Total Sales 11,000,000 12,000,000 15,000,000
Gross Profit 5,500,000 6,000,000 75,00,000

Expense Forecast
Expense 2009 2010 2011
Direct Mail 40,000 50,000 60,000
Magazine 1,10,000 1,00,000 80,000
Radio Promotions 30,000 50,000 70,000
Total 1,80,000 2,00,000 2,10,000

Justification of two marketing
opportunities
• Export
• Franchisee

Exports
• At BBQ fun, they will be exporting the products to other
regions of the world such as Europe and Asia. The
products offered in these countries will be becoming
popular especially in Asian countries. The company is
going to reach these markets through E-commerce as well
telemarketing channels. The strategy used will help the
company in increasing export and also increase in sale as
well as diversity of products.

Franchisee
• At BBQ fun, they will be working alongside with the
franchises so that they can create a partnership that will
work well in the competitive marketplace. In addition to
that, as a franchisee of BBQ fun, the customers will be
provided with high quality services as well as best
practice systems at the same time. It is all about
managing the business and undertake own decisions. The
support team of BBQ fun are experienced ones and are
always available in assisting in order to operate their
business as a whole.