Marketing of BBQfun

Explore the marketing strategies of BBQfun, an Australian company marketing outdoor furniture and outdoor accessories with Brisbane as its base. Learn about the success of the marketing activities, identifying over and under-performing products and services, and use of forecasting techniques to identify existing and emerging market.

Running head: MARKETING OF BBQ FUN
Marketing of BBQfun
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MARKETING OF BBQ FUN
Table of Contents
Introduction:....................................................................................................................................1
Success of the marketing activities:.................................................................................................1
Identifying over and under-performing products and services considerable for withdrawal or
development:....................................................................................................................................4
Use of forecasting techniques to identify existing and emerging market:.......................................5
Conclusion:......................................................................................................................................6
Recommendation:............................................................................................................................7
References:......................................................................................................................................8

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Introduction:
Restructuring of marketing mix is one of the main component of the marketing strategies
of companies and ensure their sustenance in the market. Business organisations have to
restructure their respective marketing mixes in order to retain and strengthen their respective
positions in the market. Restructuring the marketing mixes ensure that the same are aligned to
the macroeconomic conditions. The business organisation in order to restructure their respective
marketing mix first analyse the success of their prevailing marketing activities in achieving their
business targets. Then they go on to consider the performances of their present products (the first
component of marketing mix) to decide on further development or withdrawal of certain
products. The third step consists of forecasting of future demands to decide on the production
process. The aim of the report would be exploring these three steps through the lenses of
BBQfun, an Australian company marketing outdoor furniture and outdoor accessories with
Brisbane as its base.
Success of the marketing activities:
An analysis of the case study shows that the marketing activities of BBQfun are
successful. This is can be established on the grounds of several facts from the case study. The
graph below shows the sale ratio which BBQfun acquired in 2017. The graph shows that the out
of the 16000 units of exterior furniture, BBQfun was able to achieve 50 percent of the market
share. However, when the market share of the company was considered in terms of 20000 units
of exterior lifestyle goods, it can be seen that the market share of BBQfun fell to 40 percent. As
per Ottman (2017), market share is generally directly related to profit generation. Thus, in this
fall in the market share of BBQfun means that the company is heading towards fall in profit
generation. However, it is also evident from the comparison that BBQfun exceeds its two

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competitors namely BBQ Ru and Outdoorz by 10 percent each. Thus, it can be pointed out that
the present level of marketing activities of BBQfun are sufficient in maintaining the position of
the company in the short run. However, the company would be required to restructure its
marketing mix to ensure its top position in outdoor furniture and accessories in Australia.
The
Yard
BBQ’
s R us
Outdoor
z
BBQfu
n Total
Total sales 16000 in
2017 0 4,000 4,000 8,000 16000
Share in 16000 units
(%) 0% 25% 25% 50%
Total sales 20000 in
2017 0 6,000 6,000 8,000 20000
Share in 20000 units
(%) 0 30% 30% 40%
Figure 1. Table comparing the market share of BBQfun
(Source: Author)
The second evident of the success of the marketing mixes of BBQfun is evident from the
very comparison of the competitive advantages of BBQfun and its three competitors namely, The
Yard, BBQ’s R us and Outdoorz (Section 2.3.1. National Competition). The Yard, the first
national level competitor of BBQ markets exclusively Australian origin outdoor accessories of

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superior quality but charges high prices for its products. Thus, the firm is able to attract upper
class customers owing to very high price of its products but fails to caters to the needs of the
middle and lower class customers which limits its revenue generation. Walasek and Brown
(2016) point out in general consumers spend more money in countries where the income
inequality is lower. The Australian Broadcasting Corporation in a report published in July 2019
mentioned that the income inequality in Australia is increasing (Long & Janda, 2019). Thus, it is
clear from this that the residents of the country would not spend after luxury goods owing to the
increasing inequality. Thus, one can be establish that though The Yard markets products of
superior quality, the premium pricing strategy of the firm is not strategically fit to the economic
conditions of Australia. The second competitor of BBQfun namely, BBQ’s R us markets cheap
imported products. The Australian Taxation Office, Government of Australia mentions that the
goods of value of AUD 1000 are exempted from import duties. Goods above AUD 1000 are
charged high import duties and GST of 10 percent (Ato.gov.au. 2019). Considering this fact, it
can be pointed out that BBQ’s R us imported goods in bulks and is required to pay high import
duties and GST, which ultimately add to the cost of the outdoor furniture and accessories (goods)
sold. Thus, in this case the fact that the company sells cheap imported goods can be interpreted
that it compromises on the quality of the products it sells to keep the price low. Thus, BBQ’s R
us has a defective product strategy. Secondly, the company has presence in only one location in
Brisbane, which means that the place strategy of the company is weaker compared to BBQfun.
The only company, which can pose strong challenge to BBQfun, is Outdoorz. Outdoors markets
high quality Australia outdoor furniture and lifestyle goods at legitimate prices and promotes its
goods aggressively in Australia. The two weaknesses of Outdoorz, which renders it weak before
BBQfun was that its product line is limited to Australian goods and its weak place strategy

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(Thapa & Acharya, 2017). Thus, it one can point out from this detailed comparison between the
marketing mixes of BBQ and its competitors that the former can boast higher levels success in
the outdoor furniture market in Australia. However, considering the fall in market share of
BBQfun by 10 percent, one can point out that the company should strengthen its marketing
strategies to prevent this fall in market share (Jackson & Ahuja, 2016).
Identifying over and under-performing products and services considerable for withdrawal
or development:
It can be pointed out that the company should restructure its product offerings to generate
higher profits by developing certain product(s). The table below shows that the three customer
segments which the company serves. The new dwelling customers and the renovation customers
account for 10 percent and 7 percent respectively. The third band of customers namely,
replacement customers consist of 5 percent growth potential but consist of the highest customer
segment size among the three segments. This means that BBQfun should develop new products
to cater to the third customer base.
Customer
segments Estimated customer nos
Potential
growth
New dwellings 95,000 10%
Renovations 35,000 7%
Replacement 120,000 5%
Figure 2. Table showing main business segments of BBQfun
(Source: Author)
As far as the product line is concerned, the company markets three main types of
products namely, BBQ, Outdoor Furniture and BBQ Accessories. The table showing the share of

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the three products shows that the BBQ Accessories attribute for the highest revenue generation
of the company even after being of the lowest price among the three products. Thus, it can be
again be pointed out that the company must aim to boost the sale of BBQ Accessories in order to
generate higher profits. This claim can be substantiated on the ground that Australia is
experiencing income inequality (Karp, 2019). This means that the customers in Australia in
general would prefer to spend less disposable income to buy expensive luxury lifestyle goods
due to this inequality in income. This means the company by developing the BBQ accessories
product range, which is of low price range, would be able to attract more customers and generate
higher revenue (Morgan et al., 2019). In fact, it can be pointed out that strengthening the low
price range of products would enable BBQfun to align its marketing mix to the Australian
market conditions to a greater extent (Išoraitė, 2016).
Use of forecasting techniques to identify existing and emerging market:
BBQfun should use forecasting technique to identify existing and emerging marketing
needs. The firm should conduct a market research to identify the new needs among its existing
customer base and new customer bases, which it can target. As far as the existing customer bases
are concerned, the company should aim to introduce new products and innovative versions of
existing products. Secondly, the company should to find entirely new markets outside its present
market Brisbane. BBQfun should conduct market scoping of both the markets to identify
opportunities to introduce new products. The company should forecast the demands in both the
markets to form appropriate marketing strategies.

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New markets
New needs among
existing customers Entirely new
customer base
Market research of
Australia
New products and innovative
versions of existing products+
Demand forecast
New products suited to the
new market+ Demand
forecast
More profits
Figure 3. Flowchart showing demand forecast of BBQfun
(Source: Author)
Conclusion:
It can be concluded from the analysis that BBQfun has a strong marketing strategy. The
company holds a stronger marketing mix compared to its competitors. However, the company
must aim to strengthen its marketing mix and align it more to the market conditions of Australia.

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Recommendation:
It can be recommended that the company should enter the ecommerce platform to market
its products. This would enable it to boost market presence and its revenue generation.

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References:
Ato.gov.au. 2019. Retrieved 22 September 2019, from https://www.ato.gov.au/Business/Excise-
and-excise-equivalent-goods/Excise-equivalent-goods-(imports)/Customs-duty-rates/
Išoraitė, M. (2016). Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah, 4(6), 25-37.
Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), 170-186.
Karp, P. (2019). ABS drops reference to worsening wealth inequality to craft a 'good story'.
Retrieved 22 September 2019, from
https://www.theguardian.com/australia-news/2019/aug/28/abs-drops-reference-to-
worsening-wealth-inequality-to-craft-a-good-story
Long, S., & Janda, M. (2019). Abc.net.au. Retrieved 22 September 2019, from https://www.abc.net.au/news/2019-
07-12/household-income-and-wealth-abs-data-shows-rich-are-richer/11302696
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing
strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Thapa, S., & Acharya, S. (2017). Remittances and household expenditure in Nepal: Evidence
from cross-section data. Economies, 5(2), 16.

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Walasek, L., & Brown, G. D. (2016). Income inequality, income, and internet searches for status
goods: A cross-national study of the association between inequality and well-
being. Social indicators research, 129(3), 1001-1014.