Marketing 10: Evaluating and Adjusting the BBQfun Marketing Mix Report

This report evaluates the marketing mix developed for BBQfun, an outdoor product retailer, assessing its performance against set objectives like enhancing consumer base, revenue, and reputation. The evaluation includes analysis of sales data, budget summaries from 2016-2017 and 2019, and proposed operational changes such as opening a new outlet and increased staff training. The report recommends adjustments to the marketing mix, considering relevant organizational policies and legislation. It outlines a monitoring plan focusing on key financial parameters to ensure effective implementation of the proposed changes, including changes to budget for the year 2019-2020.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Introduction
In this assessment, the marketing mix that had been developed for the BBQfun
organization 6 months ago will be evaluated. Along with the evaluation of the already
implemented marketing strategies, recommendation for adjustments to them marketing mix in
response to the market testing as well as changes to the planning as well as budget has been
performed in this report. In this report, the performance of the marketing mix developed
previously will be evaluated. Proposed changes using results of monitoring performance to argue
for changes has been outlined. Finally in this report, the impact of changes on the marketing of
the organization and explanation of the relevant organizational policies, legislation and codes of
practice will be conducted.
Discussion
Evaluation of the Performance of marketing Mix against the objectives
The chief objectives of the modified marketing mix for the BBQfun outdoor product retailer
were as follows:
1. To enhance the consumer base of the mentioned organization.
2. To enhance the revenue and profit range of the mentioned organization
3. To ensure enhancement in reputation of the mentioned organization in both local as well
as global outdoor lifestyle product retailing industry.
In order to enhance its consumer base, the first strategy that had been implemented by the
mentioned organization included reducing the price range of the products by incorporating
medium quality products. This strategy was incorporated keeping in mind the newly evolving

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middle class and upper middle class consumers who are also developing interest in outdoor
lifestyle products. The second strategy implemented was incorporating online promotional
techniques like the social media platforms in order to attract the consumers. This strategy was
implemented keeping in mind that more than 80 percent of the total population of Australia are
present online, hence it would be easier for the mentioned organization to reach to a greater mass
of people through social media advertisement compared to offline advertisement procedures. for
the organization After 6 months, it has been noticed that, the sales of the mentioned organization
has got increased by 5.3 percent. The sale of prium products off the mentioned organization was
found to be lower than that of the affordable range. Thus the first object has been achieved by the
organization.
In order to evaluate whether the organization has been able to meet its 2nd objective, in the
following part of the assignment the budget summary of BBQfun in the year 2016-2017 and that
of the year 2019 after the implementation of the plan has been compared.
Income:
Sales $11,000,000 Barbecues and related
equipment.
Investment income $1,567,000 Real estate investment income
and rental of office space.
Cost of goods sold (COGS) $5,890,000 Cost of provision of goods,
purchase of stock, distribution.
Gross profit $6,677,000 Gross profit.
Expenses:

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Wages, salaries and on costs $2,567,890 Wages, salaries, superannuation,
work cover insurance, payroll
tax.
Consultancy fees $50,000 Project management: WHS
management system; change
management.
Communication expenses $42,000 Telephone, ISP costs, IT
support.
Marketing $800,000 Cost of staff travel and
associated costs for sales, etc.
Premises expenses $1,000,000 Rent, electricity, maintenance,
cleaning.
Capital expenditure $120,000 Purchase of new office
equipment (90%), vehicles.
Depreciation and
amortisation
$177,569 Computers and capital
equipment that is depreciated.
Office supplies $65,068 Printing and stationery, postage,
amenities.
Training $62,187 Sales training: leadership, WHS,
ethical/ legal training.
Total Expenses $4,884,714
Net profit $1,792,286 Net income before tax.
profit per expanse
percentage
36.69172852

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Table1: Budget summary of 2016-17
Income:
Sales $5,200,000 Barbecues and related equipment.
Investment income $783,500 Real estate investment income and rental
of office space.
Cost of goods sold
(COGS)
$2,505,000 Cost of provision of goods, purchase of
stock, distribution.
Gross profit $3,478,500 Gross profit.
Expenses:
Wages, salaries and on
costs
$1,283,945 Wages, salaries, superannuation, work
cover insurance, payroll tax.
Consultancy fees $25,000 Project management: WHS management
system; change management.
Communication
expenses
$21,000 Telephone, ISP costs, IT support.
Marketing $390,000 Cost of staff travel and associated costs
for sales, etc.
Premises expenses $500,000 Rent, electricity, maintenance, cleaning.
Capital expenditure $60,000 Purchase of new office equipment (90%),
vehicles.
Depreciation and
amortisation
$88,785 Computers and capital equipment that is
depreciated.
Office supplies $32,534 Printing and stationery, postage,

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amenities.
Training $31,094 Sales training: leadership, WHS, ethical/
legal training.
Total Expenses $2,432,358
Net profit $1,046,142 Net income before tax.
profit per expanse
percentage
43.00937609
Table 2: Budget summary of the previous 6 months
From the above tables it can be clearly understood that an increment of approximately 7 percent
has taken place in the profit per expanse percentage of the BBQfun organization just in 6 month.
In the 6 months, the organization has been able to gain a profit of 1,046,1432 dollar which
indicates that the second objective of the organization has been gained as well.
Changes to operations
In order to ensure further growth in revenue as well as consumer base, the first operational
strategy that needs to be implemented by the organization includes opening another outlet of the
organization in the city centre. The plot for the mentioned strategy should be selected keeping in
mind the consumer base of the organization. The second strategy that needs to be implemented
by the mentioned origination is increment in investment for training the staffs. Considering the
fact that one of the best way of enhancing consumer satisfaction and ensuring maintained and
enhancement in consumer base is effective consumer service, all the employees of the

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organization needs to be trained in an effective manner. The training session should be
monitored by the managers regularly. Lastly, for marketing purpose, the company needs to
incorporate online marketing along with offline marketing. This will enable the company to
expand both locally as well as internationally.
Changes to budget
Considering the fact that change in the investment cost will be necessary in order to ensure
effective implementation of the mentioned operational changes. A budget plan for the year 2019-
20 has been provided bellow.
Income:
Sales $14,000,000 Barbecues and related
equipment.
Investment income $1,567,000 Real estate investment
income and rental of office
space.
Cost of goods sold
(COGS)
$7,000,000 Cost of provision of goods,
purchase of stock,
distribution.
Gross profit $8,567,000 Gross profit.

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Expenses:
Wages, salaries and on
costs
$2,967,890 Wages, salaries,
superannuation, work cover
insurance, payroll tax.
Consultancy fees $51,000 Project management: WHS
management system; change
management.
Communication expenses $42,000 Telephone, ISP costs, IT
support.
Marketing $800,000 Cost of staff travel and
associated costs for sales, etc.
Premises expenses $1,500,000 Rent, electricity,
maintenance, cleaning.
Capital expenditure $170,000 Purchase of new office
equipment (90%), vehicles.
Depreciation and
amortisation
$177,569 Computers and capital
equipment that is depreciated.
Office supplies $65,068 Printing and stationery,
postage, amenities.
Training $62,187 Sales training: leadership,

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WHS, ethical/ legal training.
Total Expenses $5,835,714
Net profit $2,731,286 Net income before tax.
profit per expanse
percentage 46.80294476
Table 3: Budget plan for 2019-20
Recommended adjustments
In order to ensure effective operation the BBQfun needs to abide by the legislation along with
the procurement and antidiscrimination policies. In this era of high competition, it will become
highly crucial for BBQfun to retain skilled employees. Thus strict discrimination policy needs to
be implemented. Along with this, the organization has to strictly abide relevant legislations like
anti discrimination act 1991, corporation Act 2001 and income Tax Assessment Act 1997. .
Monitoring plan
The chief factors that are to be monitored for ensuring successful implantation of the changes
include gross profit, net profit, total expanse, costing of the product, capital investment and profit
margin of the organization. The process of monitoring will include calculating the Operational
Expanse Ration along with the changes in OER through the above discussed financial
parameters. The monitoring will be done every 3 months.

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