University Marketing Report: BSBMKG501 - Opportunities Evaluation

This document is a comprehensive marketing report for the BSBMKG501 unit, focusing on the evaluation of marketing opportunities for the simulated business, BBQfun. The report analyzes sales data from FY2013-14 to FY2016-17, including market share percentages for various competitors and total sales figures. It delves into the performance of different product categories, such as BBQs, outdoor furniture, and accessories, estimating sales for FY2017-18 and calculating potential sales for marketing opportunities. The report assesses three key opportunities: own-branded products, e-commerce, and a bargain market, calculating sales volume, revenue, and gross profit for each. It includes detailed financial analysis, considering unit contribution margins, fixed costs, profitability indexes, and required resources. The report evaluates the viability of each opportunity, assessing the impact on operations and providing strategic recommendations for the Board of Directors. The data presented is a result of the student's work, prepared to satisfy the requirements of the assignment.

BSBMKG501 Assignment 2
Identify and evaluate marketing opportunities
Name of the Student
Name of the University
Author note

Financial
year (FY)
Local
independents
The
Yard
BBQs R us Outdoorz BBQfun
FY 2013–14 30% 0% 25% 23% 22%
FY 2014–15 30% 0% 27% 23% 20%
FY 2015–13 30% 0% 22% 25% 23%
*FY 2016–17 30% 0% 22% 24% 24%
Financial year
(FY)
Total sales
FY 2013–14 8,500,000
FY 2014–15 10,000,000
FY 2015–13 9,000,000
FY 2015–16 9,500,000
0 1 2 3 4 5
1
21
41
61
81
101
121
f(x) = 2 x + 87.5
sales
sales
Linear (sales)
nth year
sales(E5)
Estimated sales in FY 2017-18 is = (2(5)+87.5)x E5 = 9750000
Potential sales for marketing opportunities for FY 2017-18 is 9750000
Financial
year (FY)
BBQs Outdoor
Furniture
BBQ
Accessories
Total
FY 2012–13 25,000 13,000 42,000 80,000
FY 2013–14 35,000 15,000 58,000 108,000
FY 2014–15 40,000 17,000 68,000 125,000
FY 2015–13 45,000 19,000 75,000 139,000
FY 2016–17 52500 21000 88000 161500

0 1 2 3 4 5
1
11
21
31
41
51
61
71
81
f(x) = 10.9 x + 33.5
f(x) = 2 x + 11
f(x) = 6.5 x + 20
BBQs
Linear (BBQs )
Outdoor Furniture
Linear (Outdoor
Furniture )
BBQ Accessories
Linear (BBQ
Accessories )
nth year
sales(E3)
BBQs = (6.5(5)+20)x E3 = 52500
Outdoor Furniture = (2(5)+11)x E3 = 21000
BBQ Accessories = (10.9(5)+33.5)x E3 = 88000
Own branded products
market share of 24% for BBQfun to calculate projected number of units to sell for each item in FY
2012–13.
BBQs Outdoor Furniture BBQ Accessories
Number of buyers 30,000 13,000 56,000
Quantity 1 1 3
Average price $600 $850 $50
units to sell for
BBQ fun
7200 3120 40320
Bargain market
market share of 25% for BBQfun

BBQs Outdoor Furniture BBQ Accessories
Number of buyers 40,000 20,000 70,000
Quantity 1 1 3
Average price $500 $650 $40
units to sell for
BBQ fun
10000 5000 52500
With E-commerce
market share of 24% for BBQfun.
BBQs Outdoor Furniture BBQ Accessories
Number of
buyers
52500 21000 88000
Quantity 1 1 3
Average price $620 $880 $55
units to sell for
BBQ fun
12600 5040 63360
Opportunities and profit figures for calculation
Own brand E-commerce Bargain market
Sales volume
(units)
BBQ: 7,200 BBQ: 12600 BBQ: 10000
Furniture: 3,120 Furniture: 5040 Furniture: 5000
Accessories:
40,320
Accessories:
63360
Accessories:
52500
Price BBQ: $600 BBQ: $620 BBQ: $500
Furniture:$850 Furniture: $880 Furniture: $650
Accessories:$50 Accessories:$55 Accessories:$40
Unit contribution
margin
BBQ: $500 BBQ: $300 BBQ: $200
Furniture: $600 Furniture: $420 Furniture: $220
Accessories: $40 Accessories: $20 Accessories: $1
Total revenue 8988000 15732000 10350000
Total gross
profit FY 2016–
17
7084800 7164000 3152500
Additional fixed
costs
Add lease:
$1,000,000
Add labour:
Add training:
$50,000
Add online store
See approved
budget (no change
in fixed costs)

$500,000
Add plant
(depreciation):
$500,000
development:
$100,000
Add new plant
and equipment
(depreciation):
$150,000
Add labour:
$250,000
Add reconfiguring
of warehouse/
office: $50,000
Total net profit FY
2016–17
Profitability index figures for calculation
Own brand E-commerce Bargain market
Cash flow 2016–
17
(Use gross profit) (Use gross profit) (Use gross profit)
Opportunity cost 8% 8% 8%
Present value of
future cash
flows
Present value of
initial investment
(Use total fixed
costs)
(Use total fixed
costs)
(Use total fixed
costs)
Profitability
index
Available resources and costs
Resources Costs
Additional staff $25,000 year average Additional staff costs:
Plant and equipment
depreciation ● Delivery trucks
($20,000 each)
● Forklifts ($10,000
each)
Plant and equipment
costs:
Promotional costs $500,000
Website developers Contractors ($2,000/day) Website development
cost:
Staff training Online customer service
training ($3,000 per staff
member)
Staff training cost:
Management change
leadership training for
$3,000 each Management and
leadership training cost:

Resources Costs
store managers and team
leaders
Warehouse and office
reconfiguration
Reconfiguration cost:
Total