BSBMKG507: Interpretation of Market Trends and BBQ Fun Development

This report analyzes the market trends and development needs of BBQ Fun, an Australian outdoor furniture retailer. It assesses the success of current marketing activities, identifies over- and under-performing products like BBQ equipment and outdoor furniture, and uses forecasting techniques to identify existing and emerging market needs. The analysis focuses on performance data, including sales figures, customer spending, and market share, comparing the Brisbane and Suncity areas. The report recommends focusing marketing efforts on the Brisbane area, adjusting product pricing to match consumer incomes, and potentially remodeling or withdrawing certain BBQ items to improve overall performance and profitability. The report concludes with specific recommendations for strategic improvements based on the data analysis provided.

Running Head: INTERPRETATION OF MARKET TRENDS AND DEVELOPMENT
Topic- Interpretation of market trend and development needs in BBQ Fun
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2MARKET TREND INTERPRETATION
Abstract
The report provides an in-depth analysis of the marketing strategies of BBQ fun, a
leading outdoor furniture retailer in Australia. The report analysis all the quantitative data
provided and assessment of the marketing strategies is being made based on the results and
findings. It is recommended that BBQ fun should focus more on Brisbane area in comparison to
Sun city area and also should try to focus on outdoor furniture and BBQ accessories more than
only BBQ.

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TABLE OF CONTENTS
Introduction......................................................................................................................................4
Discussion and critical analysis.......................................................................................................4
Review of marketing plan strategies............................................................................................4
Review of marketing objectives of BBQ fun...............................................................................4
Performance data analysis of marketing activities.......................................................................4
Product performance....................................................................................................................5
Utilization of forecasting techniques...........................................................................................5
Recommendation and conclusion....................................................................................................7
References........................................................................................................................................8

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Introduction
The report assesses the various quantitative data provided in the case study of BBQ fun
and marketing strategies are developed based on the findings. This will enable BBQ fun to have
less risk of market failure and could increase their bottom-line easily (Burns, Bush & Sinha,
2014).
Discussion and critical analysis
Review of marketing plan strategies
BBQ fun has emphasized on the advertising plans this year. Budget has been fixed at
$2,50,000 for the year (Schneider & Gupta, 2016). The targets for advertisement will be local
letter drop boxes, radio, magazines, e-mails and local newspaper advertising where coupon will
be inserted with the daily newspaper BrisNews and also a column having article support of BBQ
fun’s products and services (Baker, 2014). The strategies have been successful and a there was a
dramatic increase in sales figures.
Review of marketing objectives of BBQ fun
Market trend shows the coming years will be favorable for BBQ fun and it has
formulated strategies based on this attribute (Shukre, 2013). The objectives of increase in sales
from $11 million to $16 million in coming years, increase list of loyal customers from 10,000 to
16,000 and establishment of brand recognition in Brisbane will be met considerably.
Performance data analysis of marketing activities
The data analysis shows that the marketing activities will have higher impact on
consumer market in the coming years (Schneider & Gupta, 2016). It is also found that the

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average outdoor home ware spending in Brisbane City is around 12% of their Pre-tax household
income which is almost double compared to Suncity area where average outdoor home ware
spending is only 6% of their pre-tax household income. So, the marketing strategies of BBQ fun
should focus more on Brisbane area in comparison to Sun City. The chance of success is more in
Brisbane area. Price should be fair enough keeping in mind the average earnings of the people of
that area (Peattie & Belz, 2013).
Product performance
Underperforming product include BBQ and overperforming products include outdoor
furniture and BBQ accessories (Burns, Bush & Sinha, 2014). Though in recent year the
contribution of BBQ accessories in profit and sales is lower compared to previous years, but it is
evident that the sale will rise in future years. It is recommended that BBQ items need to be
withdrawn from the market as it shows negative trend, so that the target market is fixed on two
products of Outdoor furniture and BBQ accessories (Parente & Strausbaugh-Hutchinson, 2014).
This will improve the overall performance of BBQ fun.
Utilization of forecasting techniques
The forecasting technique of CAGR and projection is used for identifying both the existing
and emerging market needs of BBQ fun (Meffert, 2013). The results are pointed below,
1. On an average, customers spend around $ 472.8 on BBQ equipment in Brisbane area and
90% of them spend in between $ 316.8 to $ 628.8 on BBQ equipment.
2. Average Outdoor home ware spending in Brisbane City is around 12% of their Pre-tax
household income which is almost double compare to Suncity area where average
outdoor home ware spending is only 6% of their pre-tax household income.

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3. Average earning of people in Brisbane city is around 36% higher than people in Suncity
area
4. The CAGR (compounded average growth rate) from 2014-2017 for BBQ fun products
are given below,
Item
Averag
e Price
Average
COGS
Units
BBQ 1% 10% -1%
Outdoor
Furniture
28% 1% 13%
BBQ accessories 2% -9% 11%
Based on the above growth rate, we have projected the following 2018 financials of BBQ fun,
Item
Average
Price
Averag
e COGS
Average
Contribution
Units Revenue
Gross profit
Sale
BBQ $628 $430 $198 7,930 $4,982,893 $1,569,235
Outdoor
Furniture
$2,698 $503 $2,195 5,125 $13,829,655 $11,249,622
BBQ
accessories
$51 $14 $37 59,932 $3,069,000 $1,550,000
Total $21,881,548 $14,368,856

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As per the survey result on BBQ equipment, around only 6% customer prefers to purchase above
$628. To attract more market in BBQ Equipment, BBQ Fun should introduce BBQ equipment
with lower cost. For example, the below table shows the trends to cater the need of bigger
market.
Average
Prices of
BBQ
Equipmen
t
% of
customer
willing to
purchase
BBQ
Equipment
$600 14%
$550 22%
$500 34%
Recommendation and conclusion
Based on the data analysis of BBQ fun it is recommended that it focus more on Brisbane
region in comparison to sun city. The cost of products should be affordable and should match the
average earning of the people there. The BBQ items need to be remodeled or should be

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withdrawn from market so that the other two product areas get more emphasis and strategies
formulated will help them attract bigger markets.

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References
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing research (Vol. 7). Harlow: Pearson.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing research (Vol. 7). Harlow: Pearson.
Meffert, H. (2013). Marketing-Management: Analyse—Strategie—Implementierung. Springer-
Verlag.
Parente, D., & Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: A guide to
marketing communication plans. Cengage Learning.
Peattie, K., & Belz, F. (2013). Sustainability marketing: A global perspective. John Wiley and
Sons.
Schneider, M. J., & Gupta, S. (2016). Forecasting sales of new and existing products using
consumer reviews: A random projections approach. International Journal of
Forecasting, 32(2), 243-256.
Shukre, A. (2013). Marketing management.