BSBMKG501: Evaluating Marketing Opportunities for BBQfun

This report provides a comprehensive analysis of BBQfun's marketing plan, examining various aspects such as product characteristics, pricing strategies, and the importance of marketing elements in achieving desired outcomes. It delves into BBQfun's potential customer base, explores the marketing mix, and assesses the impact of external factors. The report also evaluates customer priorities and preferences, analyzes how products and services align with marketing objectives, and examines the marketing mix in relation to organizational, strategic, and operational marketing goals. Additionally, the report covers performance against objectives, identifies areas for improvement, and proposes possible adjustments, including budget requirements and considerations related to organizational, strategic, and operational objectives. The analysis considers desired market positioning, internal and external requirements, and concludes with a written report summarizing the findings and recommendations. The company offers a three-year guarantee on its products, which is unique in the current market trend. The company has retail products that are visible to its customers. The company has two retail stores so that the customer can easily access the products.

BUSINESS DIPLOMA

1
Contents
Learner Instruction 1.............................................................................................................................2
2. Characteristics of the product........................................................................................................2
3. Pricing............................................................................................................................................2
4. Importance of elements to marketing outcomes.............................................................................3
5. Potential customer base.................................................................................................................4
6. Marketing mix...............................................................................................................................4
7. External factors and impact on marketing mix..............................................................................5
8. Customer’s priorities and preferences............................................................................................5
9. Products and services against the marketing objectives.................................................................6
10. Marketing mix in relation to organisational, strategic and operation marketing objectives.........6
11. Two piece of legislation...............................................................................................................7
References.........................................................................................................................................8
Learner Instruction 2.............................................................................................................................9
2. Performance against objectives......................................................................................................9
3. Areas of poor performance to be adjusted and monitored............................................................10
4. Possible adjustments....................................................................................................................10
a. Budget Requirements...............................................................................................................10
b. Organisational strategic objectives..........................................................................................11
c. Operational marketing objectives.............................................................................................11
d. desired market positioning.......................................................................................................11
e. internal and external requirements...........................................................................................12
5. Written report..............................................................................................................................12
References.......................................................................................................................................12

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Learner Instruction 1
2. Characteristics of the product
The company has retail products that are visible to its customers. Hence customers can see
the quality of the product as they are displayed in the store. Here are some key characteristics
of BBQfun’s products:
• The products that are imported to the international market make up around 33 ranges
of services and products.
• The organization offers 3 years of guarantee on its products and that is unique in the
current market trend and attracts customer of all market segmentation.
• Another characteristic is that the organization has a wide range in the related field and
market.
• Providing better customer service which is friendly too, is also the main characteristic
of its products and services and that helps the company to attract regular customers.
Many organizations are failed to provide better customer service. And in this
competitive environment, the company can easily increase the customer base by
providing them better and friendly services (Fogli, 2010).
• The company serves its services in such a way that can be easily accessible to the
customer either they are local or international.
The company ensures that all the aspects are deeply fulfilled so that the company can serve
the customer satisfaction and gain their loyalty.
3. Pricing
The change in the prices takes place due to the change in the demand of products. It has been
witnessed with the increase in price of product there is decrease in demand and on the other
hand, with the decrease in price there is increase in demand.

3
BBQfun will price at the comparable prices with the comparable quality that means it will not
be cheap for the company. The major focuses of the company is done on the price and back
this up with the three-year guarantee. The sales of the company reflect the price set by the
firm for the product as well as for service (Kapferer, 2012).
The budget that is projected reflects the increase in sales that shows that the price of the
product has been changed.
Budget 2016-17 Projected
Income: 2017 2018 2019 2020
Sales
11,000,00
0
1210000
0 13552000
1558480
0
Investment income 1,567,000 1723700 1930544 2220126
Cost of goods sold (COGS) 5,890,000 6479000 7256480 8344952
Gross profit 6,677,000
7,344,70
0 8,226,064
9,459,97
4
Expenses:
Wages, salaries and on
costs 2,567,890
2696284.
5
2911987.2
6 3203186
Consultancy fees 50,000 52500 56700 62370
Communication expenses 42,000 44100 47628 52390.8
Marketing 800,000 840000 907200 997920
Premises expenses 1,000,000 1050000 1134000 1247400
Capital expenditure 120,000 126000 136080 149688
Depreciation and
amortization 177,569
186447.4
5
201363.24
6
221499.
6
Office supplies 65,068 68321.4 73787.112
81165.8
2
Training 62,187 65296.35 70520.058
77572.0
6
Total Expenses 4,884,714
5,128,95
0 5,539,266
6,093,19
2
Net profit 1,792,286
2,215,75
0 2,686,798
3,366,78
1
4. Importance of elements to marketing outcomes
The promotional methods: Promoting products is the most common and essential way to
attract customers. Through the promotion, the company can build up the brand image and
send a clear message to its customer base (Akhmetshin, 2018). BBQfun can increase the
brand awareness and relate schemes hence the customers who are aware of the products but

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unaware about the schemes will get to know the schemes and also appropriate information.
And in return, it will lead to an increase in sales and profit for the company.
The channel of distribution: Through the different channel of distribution the company
provides access to its customers so that they can easily buy the company’s products (Tian,
2018). As The BBQfun has its store to the many urban commercial stores hence customers
can easily approach to its products
The level of the customer service provider: BBQfun’s priority is to provide better and
friendly customer service. Better customer services include the quality of services and
products and it builds customer loyalty and repeats the customers (Goodman, 2019).
5. Potential customer base
The customers of the company are moderate and highly educated and are a mixture of
professionals and young, health-conscious people are also targeted customer base of the
company. The company is continuously finding the way to reaching the customer base. The
strategy is to reach to the customers to providing them quality and unique services and also
providing them different distribution option to provide easy access and the cheap and mass
manufactured products and services. Providing guarantee schemes and other services such as
park parking facility also the keys strategy to reaching the customer base and sustains them
for the long term.
6. Marketing mix
Product The Company has a retail market of outdoor lifestyle products. The main priority is
to providing quality products to the customer base. Quality of products will have a major
impact on the price of the product (Auer, 2018). Diversity of products leads to develop to
market segmentation of diverse products. Hence BBQfun has to increase the channel of
distribution. Diverse products will affect the way of promoting diverse products. Diverse
quality service and products will attract the customer base.
Pricing: The Company’s pricing strategy states that proving quality products forces to
increase the price of the products. Hence they will provide the comparable price to its
product’s quality and it will not be cheap. Products pricing depends on the access of the
products in the market, and the company has two stores with large parking arrangement
hence the cost of the products can be increased due to the increasing number of service

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provided (Tian, 2018). Promotion such as ads and store entertainment will also increase the
price of the products. Better service through hiring educated employee will lead to an
increase in the cost of products in the form of increment of the labor cost. The customer base
of the company is mostly health conscious people and they would prefer to buy the quality
products rather than buying the cheap products also educated customer base would also
appreciate the quality of products friendly service.
Place: The Company has two retail stores so that the customer can easily access the products.
The more retail store would provide more access to products. Each store of the company has
a Car parking large parking area. As this would reflect price and price would also reflect the
promotion in return. For instance, if the company provides more distribution channel it would
take more investment hence the cost of the product would be affected in return increased cost
of products will lead to increase profit and there is the chance to increase the number of
distribution channel (Faith, 2018). Promotion can be increased if the number of the channel
would increase as each store would take more entertainment ads. If the products would be
easily accessible to the customer they would prefer to return to the store and sustain them for
the long term.
Promotion: Wide range products will lead to an increase in the diverse way of providing
information about the products through the promotion and ads. BBQfun utilizes several
promotions such as ads, campaigns, and entertainment ads at the store. These lead to an
increase in the cost of the product. In return, it will increase the profit from sales of diverse
products. The more opportunity can increase for promoting the products such as through
internet and e-business. Developing a way of promotion can have a significant impact in
reaching the customer base (Armstrong, 2018).
7. External factors and impact on marketing mix
There are several externals; factors that affect the BBQfun’s, products price place and the
way of the promotion here these factors are:
• Due to increased competition in Queensland the company was not able to hire the
highly skilled staff and also who are qualified to sales and have skills related to
customer services.
• Expansion of the international market and new entrance into the Brisbane market
impact the price of the products.

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• Increased E-business and brick and mortar affect the profit margins and also market
share, that affects the price of products straightly.
• Increased number of legal barriers safety laws of marketing and promotion of the
products affect the company’s marketing mix.
8. Customer’s priorities and preferences
• According to the market survey of BBQ, it can be analyzed that most customers want
better service and friendly behavior rather than the cheap price. It impacts the
marketing mix as better service lead to the increased access to the product and its
information hence it can affect the place and promotion.
• As price is less important than quality and service, hence it will affect the price as the
organization will price its products according to quality of the products.
• The customer survey states that the majority of customers want to buy online hence
the company has expanded its channel of distributing and utilize e-business.
9. Products and services against the marketing objectives
They are developing their products and services according to the objectives they have set for
themselves. Their objective of enhancing the customer loyalty to such a great extent can be
easily possible with the help of products they have. They aim to add more values to their
products so that they could recognise their brand. For instance they offer three guarantee with
their products which is enough to achieve their objective of higher customer loyalty. Their
easiness to avail customer services allows them to achieve their higher brand objectives.
Their products and services are according to the characteristics of their target market segment
they have made for themselves. Since their target segments demand for better lifestyle and
their products are able to provide them so hence they will be able to achieve their objectives
easily especially the new builds who want to live in the richer suburbs and are health
conscious. They can also target renovations and replacements that are actually highly
professionals and for whom quality and service matters more than price.
They offer products that are available in the different qualities and are unique. This helps
them in positioning themselves as the company that are providing products that enhances
their lifestyle. This can be done with the help of products that add value to their operations.
They also are able to position themselves in an appropriate manner because they are

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providing their services in a friendly manner and both international and local customers can
be easily able to access those products.
10. Marketing mix in relation to organisational, strategic and operation marketing
objectives
All the components of marketing mix have been designed according to the objectives they
have set for themselves whether it is organisational, strategic or operation marketing
objectives. Starting with the product, it can be said that their products are of higher value and
at the same time they can satisfy the needs of larger amount of target segments. Since their
major marketing objective is to enhance the customers loyalty and this can be easily achieved
with the quality of products and services they deliver.
Their pricing is able to achieve their financial objectives. Their financial objectives like
double digit growth rate can be achieved with the help of comparable pricing they have set
for themselves. Adjustment of pricing according to the quality also helps them to improve
their customer loyalty. With this kind of pricing, it is easier for them to enhance their overall
gross profit margins.
In terms of place as a marketing mix, they have two retail stores which have made the
product access easier. This helps them in achieving their marketing objective of enhancing
the visibility in front of the consumers. With the help of place as a marketing mix they are
also able to achieve their strategic objective of improving their overall business operations.
The promotional campaign that is run by the company is highly diverse. They are using
different types of tools such as advertisements, entertainment ads at the stores and campaigns
are used by the firm to promote their products and services. This helps them in achieving
operational and strategic objectives. With the help of internet they are able to enhance their
reach among the customers (Kotler and Armstrong, 2010). This has helped them in achieving
their financial objective of improving the growth rate.
The most important marketing mix in this regards is the pricing (Lee and Carter, 2011). It
helps them to achieve all the types of objectives. The financial objectives can be easily
achieved with the help of this kind of pricing. In deciding this marketing mix, they ensure
that prices are set according to the quality they deliver. This helps them in achieving their
strategic and operational objectives.

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Higher customer satisfaction can be achieved when the products are priced according to the
quality they have and the value they add to their products. Higher customer satisfaction
allows them to retain more numbers of consumers and achieve sustainable growth in their
business.
11. Two piece of legislation
Among the several legislations that need to be considered while implementing marketing mix
are:
Consumer related laws: It is essential that a company has looks at all the consumer related
laws that exist in that exist in that nation. It is essential for ensuring the consumer satisfaction
remains on the higher side. This must be strictly taken care in the case of product
development (Weinstein, 2013).
Privacy related laws: In the time of building promotional campaign through digital mediums.
The privacy of all the associated stakeholders needs to be ensured so as to reduce the chances
of any kind of data leakage (Wheelen and Hunger, 2011).

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References
Akhmetshin, E. I. R. S. E. T. A. T. A. a. Y. A., 2018. Promotion in emerging markets..
European Research Studies Journal, , 21(2), pp. 652-665..
Armstrong, G. K. P. H. M. a. B. R., 2018. Marketing: an introduction.. s.l.: Pearson UK..
Auer, R. C. T. a. S. P., 2018. Quality pricing-to-market.. Journal of International Economics,
Volume 110, pp. 87-102..
Faith, D. a. A. E., 2018. A review of the effect of pricing strategies on the purchase of
consumer goods.. International Journal of Research in Management, Science & Technology,
Volume 2, pp. 2321-3264.
Fogli, L., 2010. Customer service delivery. s.l.:San Francisco: Jossey-Bass..
Goodman, J., 2019. Managing the customer experience to increase positive word of mouth,
build loyalty, and maximize profits.. s.l.:Amacom..
Kotler, P. and Armstrong, G., 2010. Principles of marketing. Pearson education.
Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).
Tian, L. a. J. B., 2018. Effects of consumer‐to‐consumer product sharing on distribution
channel.. Production and Operations Management, 27(2), pp. 350-367..
Tian, L. a. J. B., 2018. Effects of consumer‐to‐consumer product sharing on distribution
channel.. Production and Operations Management, 27(2), pp. .350-367..
Weinstein, A., 2013. Handbook of market segmentation: Strategic targeting for business and
technology firms. Routledge.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business
policy. Pearson Education India.

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Learner Instruction 2
2. Performance against objectives
It is to be noted that the performance of the company has been on the better side but still there
are many areas where improvement is required. Company has been able to achieve half of
their objectives through this marketing mix. The loyalty customer list of the company has
gone to 14,000. Random surveys suggest that there is some increase in the brand recognition.
On the other hand the financial objectives have not been successfully met as the growth rate
has been not so good. There is a disciplined management of expenses which has reduced the
overhead per store. The increase in the gross profit margins is high but it is not high as
expected.
3. Areas of poor performance to be adjusted and monitored
The major area of poor performance that needs to be adjusted and monitored is the financial
growth. It is necessary that company makes some of the changes in the pricing and budget
requirements (Kapferer, 2012). The changes in this marketing mix will lead to change in the
market factors such as competition as other will also try to compete on lower price range.
This will also attract customers as pricing has a psychological impact on the consumer
response.
4. Possible adjustments
a. Budget Requirements
The change is reflected with the help of variance not only for the 6 months but also for next 2-3
years projection.
Budget 2016-17 Projected
Income: 2017 2018 2019 2020
Sales
11,000,00
0
1210000
0 13552000
1558480
0
Investment income 1,567,000 1723700 1930544 2220126
Cost of goods sold (COGS) 5,890,000 6479000 7256480 8344952

11
Gross profit 6,677,000
7,344,70
0 8,226,064
9,459,97
4
Expenses:
Wages, salaries and on
costs 2,567,890
2696284.
5
2911987.2
6 3203186
Consultancy fees 50,000 52500 56700 62370
Communication expenses 42,000 44100 47628 52390.8
Marketing 800,000 840000 907200 997920
Premises expenses 1,000,000 1050000 1134000 1247400
Capital expenditure 120,000 126000 136080 149688
Depreciation and
amortisation 177,569
186447.4
5
201363.24
6
221499.
6
Office supplies 65,068 68321.4 73787.112
81165.8
2
Training 62,187 65296.35 70520.058
77572.0
6
Total Expenses 4,884,714
5,128,95
0 5,539,266
6,093,19
2
Net profit 1,792,286
2,215,75
0 2,686,798
3,366,78
1
Sales forecast 2016 2017
Varianc
e 2018 2019
Varianc
e
Total sales
$11,000,00
0
12,000,00
0 -9%
15,000,00
0
1680000
0 -12%
Gross profit 5,110,000 6,500,000 -27% 7,500,000 8400000 -12%
Market expense
budget
Expenses
Direct mail 40,000 50,000 -25% 60,000 64800 -8%
Magazine adverts 110,000 100,000 9% 80,000 86400 -8%
Radio promotions 30,000 50,000 -67% 70,000 75600 -8%
Total 180,000 200,000 -11% 210,000 226800 -8%
Assumption: It has been assumed that there will be constant change in the sales 10%, 12%, 15%.
The expenses of the company is assumed to be increased by 5%, 8%, 10%
b. Organisational strategic objectives
In terms of strategic objectives the changes that are required are:
 Company needs to take the digital mediums for improving the sales and growth rate
(Baker, 2014).