
HI6006 Competitive Strategy Editing Service
Delivery in day(s): 4
Part A requires you to identify and evaluate marketing opportunities for your chosen organization or utilizing the BBQfun case study.
1.Identify two marketing opportunities for the organisation on your chosen organisation’s market and business needs in terms of:
a.comparative market information
b.competitors’ performance
c.customer requirements
d.legal and ethical requirements
e.market share
f.market trends and developments
g.new and emerging markets
h.profitability
i.sales figures
2.Research potential new markets for the organisation in relation to:
a.export markets(new geographic opportunities)
b.segments of the market not currently penetrated(customers within the market not tapped)
3.Based on Q2, provide an evaluation and analysis on:
a.the various strategic marketing approaches (such as; increasing market share, developing new markets, developing new products and diversification) that the company should consider in terms of expanding their business law potential and discuss what are the likely options for implementation.
b.the types of markets and aspects of the marketing mix by ranking each of the following elements mentioned below in terms of their viability and likely contribution to the business such as distribution, products and types of promotional activities.
1.e?commerce
2.business?to?business marketing
3.direct marketing
4.ideas marketing
5.marketing of goods
6.public sector marketing
7.services marketing
8.telemarketing.
4.Using a suitable methodology, such as gap analysis, market or marketing analysis, or competitor analysis, identify and decide on two marketing opportunities to focus on and investigate further.
5.Estimate the effect of the two marketing opportunities on the business, for example:
a.effect on sales volume
b.growth
c.market share
d.profitability
e.potential competitors
6.Discuss what are the consideration of external factors(legislations including privacy act, anti-discrimination, competition and consumer act; ATO regulations and GST implications; manufacturing standards; e-commerce best practices marketing codes of practices), costs, benefits, risks and opportunities to determine the financial viability of the selected marketing opportunity.
7.Based on the selected marketing opportunities, identify changes to current operations in order to take advantage of the opportunity. Ensure changes identified are adequate to:
1.service an increased or different customer base
2.ensure continued quality of service.
8.Estimate and justify resource requirements and costs for changed operations with considerations on the following areas:
1.additional staff
2.distribution costs
3.equipment
4.promotional costs
5.staff training.
9.Provide an assessment report on the viability of each opportunity by:
a.Exploringand developingentrepreneurial, innovative or creative options (one for each opportunity) to apply the marketing opportunities in the context of the organisation(For example, if you identify an e-commerce opportunity, determine how to apply the e-commerce opportunity to the organisation including aspects such as media, web-design to appeal to target markets, integration with existing operations, marketing strategy and overall strategic directions)
b.Identify and document changes needed to current operations to take advantage of viable marketing opportunities(in terms of inventory and stock, office space and software usage).
Prepare a 15–20-minute presentation for marketing peersexplaining and supporting the twomarketing opportunities you have identified in Part A. Ensure you complete the following:
1.Based on Part A, create a PowerPoint presentation on the chosen organization’s evaluation on its marketing opportunities.
2.Highlight only the important points (maximum 3 points per presentation slide) from Part A as it is not supposed to be an exact copy of it.
3.Describe two marketing opportunities and how you identified them. Describe the process you undertook to analyse your organisation to identify the marketing opportunities.Refer to current organisational marketing plan and products/services
4.Support your choice of marketing opportunities with reference to market information such as market trends and sales figures.Include relevant statistics.
5.Describe the effect of opportunities on the business, for example:
a.sales volume
b.growth
c.market share
d.profitability.
6.Describe innovative or creative options (one for each opportunity) to apply the marketing opportunities in the context of the organisation.Refer to aspects of the marketing mix, i.e., product, price, promotion, place (distribution). Refer to principles of marketing that apply to your approaches to realising the proposed opportunities.
7.Use appropriate language and level of formality to satisfy needs of your audience. For example:
1.professional but semi-formal language
2.technical vocabulary;potential need to define more obscure marketing terms or statistical methodologies
3.assume no knowledge of specific organisational policies or marketing strategies
4.be prepared to answer questions
5.provide for response and feedback.
8.Deliver your presentation as per specifications mentioned above.
9.Your presentation will be assessed by (using a presentation assessment rubric which would cover nonverbal, verbal skills, timing and content)your trainer.
Assessment Answers
Part A requires you to identify and evaluate marketing opportunities for your chosen organization or utilizing the BBQfun case study.
1.Identify two marketing opportunities for the organisation on your chosen organisation’s market and business needs in terms of:
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Characteristics | Overview | What does it mean for BBQfun |
Queensland overview |
| BBQfun will witness an increase in demand if the population increases by 5% every year. The people residing in Queensland is also increasing because as per the given information the number of homes is growing from the base of 50000 per year. According to the information provided to us the employment rate of the people is also falling down and right now it is at 4.7%. If the employment rate goes down, people will not have the purchasing power to buy products from the market (Baker, 2014).
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Geographic |
| In consideration of geographic factors, BBQfun’s immediate target is Brisbane which has a population of 2,000,000. They want to expand their market in Brisbane so as to increase their sales revenue. As per the market research conducted by BBQfun the customer traffic for a store is within the geographical limit of 30km. BBQfun aims to target a population of 450,000 in the given fiscal year (Armstrong, et al.,2012).
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Demographic |
| BBQfun target audiences are the young and middle age professionals or students aged between 20-50 years. BBQfun wants to open an outlet in the central business district and aims to target the professionals working in that area. According to their market research, they aim to target the households which have an average income of $70,000. Students who are either pursuing their undergraduate or post-graduate courses are also the target audience for BBQfun (Solomon, 2014).
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Competitor | Overview | What does it mean for BBQfun |
The Yard |
| The main competitor of BBQfun is The Yard. The Yard has not expanded itself geographically but has a good customer base in Brisbane. The prices of the products available at The Yard are comparatively on the higher side compared to its rivals but customers are ready to pay that price because of the quality it offers to them. They are known to provide good quality products in the market. They are even considering entering e-commerce market which can be a threat to the rest of the firms as The Yard has a good distribution network which will help them to expand in the e-commerce market and attract more consumers (Fifield, 2012). The advantage that BBQfun has over The Yard is that the latter is not located in south east Queensland as Queensland is the target market for BBQfun right now. The Yard does not advertise or promote itself because of which most people in Australia do not know about it (Shankar, Carpenter & Farley, 2012).
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BBQ’s R Us |
| It offers lifestyle products also. The other competitor of BBQfun is BBQ’s R US which offers a wide range of lifestyle and outdoor products like trinkets, furnishings and etc. It has stores in Brisbane, Melbourne and Adelaide. It has just one store in Brisbane which is an advantage to BBQfun as the target market for BBQfun is Brisbane. BBQ’s R US concentrates mostly on established markets and is known for offering imported goods at cheap prices. It is good at the replacement section of the market. Like The Yard, BBQ’s R US also wants to explore the e-commerce routes to expand its customer base and market share. If it establishes its e-commerce website then it will be able to cater to more number of customers which will increase its sale revenue (Lauer, 2014).
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Outdoorz |
| Outdoorz, another rival of BBQfun has a large market for outdoor and lifestyle products with quality varying from medium to low. They have only a limited number of stores in a city but each store has a huge customer base. They expertise mostly in the replacement section rather than new furnishing products in the market (Leonidou et al., 2013). They only deal in local goods and take the benefit of marketing by advertising their products extensively. Like the other competitors, Outdoorz is also looking out for an e-commerce expansion to increase sales of the company. It is a competitor for BBQfun because the major market for Outdoorz is Brisbane which also the target market for BBQfun (Morgan, Katsikeaa & Vorhies, 2012).
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Factors | What does it mean for BBQfun |
| A customer wants a firm to have a large product portfolio to offer so that they can choose from large variety of products and be spoiled by choices (Kumar et al.,2013). |
| The store should be located in such an area so that the customers do not problem in locating the store and can access it with convenience (Berthon Iet al., 2012). |
| When a customer enters a store to buy a product, it expects the staff at the store to help them in selecting a product by telling them about the uses of the products (Shih, Chen & Chen, 2013). |
| Customers always look for good quality products which are offered at reasonable prices. Hence, they need to price their products according to the average prices prevailing in the market as the competitors are always in the lookout to attract the customers (Zeriti et al.,2013). |
| A flexible payment option is also a part of customer requirement as the customers should be given a credit period if they want to buy the products in instalment basis (Gummesson, Kuusela & Närvänen, 2014). |
| The customers also want a guarantee for the goods they buy. They lookout for at least three years of guarantee within the time period products can be replaced by the firm (Pitta, & Franzak, 2013).
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In the case of BBQfun’s marketing performance, we can see from the table below suggesting its findings of survey of 500 customers as follows:
| New builds | Renovators | Replacements | What does it mean for BBQfun |
Have visited BBQfun in previous month | 70% | 70% | 50% | BBQfun needs to concentrate on the replacement sector as its market share in this sector is comparatively low. |
Have bought a BBQfun product in previous month | 70% | 65% | 50% | BBQfun has a good market share and it should retain this customer base in future. |
Customer service is essential | 90% | 95% | 60% | The customer service provided is good. |
Price is most important | 10% | 20% | 95% | BBQfun needs to be more price sensitive. |
Australian made is important | 80% | 65% | 55% | The BBQfun believes in Australian made products and sells them. |
Will buy online | 100% | 100% | 100% | The ecommerce trade of BBQfun is operating very well. |
Will pay for online delivery if chosen | 100% | 100% | 100% | The ecommerce customers are loyal to BBQfun and are ready to pay for online delivery also. |
Loyalty customer | 30% | 20% | 10% | BBQfun needs to create more customer loyalty and value. |
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Types of legislation | What it is about: | How does it impact BBQfun |
Privacy Act 1988 |
| BBQfun has to abide by the Privacy Act, 1988 according to which BBQfun has to handle the customers’ information as per the national privacy policies. They will have to make sure that the customers’ information is not shred with outsiders and only remains within the company (Cassia, Massis & Pizzurno, 2012). |
Anti-discrimination Act 1991 | According to this Act the companies cannot discriminate between the individuals. | BBQfun also has to abide by the Anti-discrimination Act, 1991. As per this legislation, BBQfun cannot discriminate between its customers on the basis of caste, sex, age, sexuality and etc (Gmelin, & Seuring, 2014). |
Competition and Consumer Act 2010 | The company has to maintain healthy competition and take care of its customers. | The BBQfun need to attend to the after sale service needs of its customers. |
Australian Direct Marketing Association - Direct Marketing Code of Practice | Certain codes needs to be followed by the company to advertise their products in the market. | BBQfun needs to adhere to these rules. |
Free TV Australia | Adhere to the code of conduct of this association. | The company has to follow all the rules. |
Australian eMarketing Code of Practice | The emarketing norms have to be followed. | BBQfun needs to follow these norms. |
Australian e-commerce model | The ecommerce laws regarding trade. | BBQfun needs to adhere to these laws. |
Spam Act 2003 | The company needs to take care of its products and imitation. | BBQfun should not imitate the products in the market. |
BBQfun’s comparative market information is largely determined by independent competition where they focuses on locally produced products and they have a collective market share of 48%.In 2009, the national outdoor lifestyle market reached $300 million. Outdoor lifestyle sales were estimated to grow by at least 6% for the next few years. This growth can be attributed to several different factors:
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Factors | What does it mean for BBQfun |
| In Australia, the personal disposable income of the people is increasing which allows them with more purchasing power to buy products |
| The Australian market also offers a variety of import products at reasonable prices which the customers can afford (Acur, Kandemir & Boer, 2012).
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| The Australian serials also contribute to the increase in market share as they advertise the furniture and the lavish lifestyles which people get attracted to |
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Factors | What does it mean for BBQfun |
| The customer demand for lavish outdoor products has increased and the quality requirement has also gone up. |
| The customers are looking for uniqueness in the products and want exclusive products to be offered to them. |
| People want a larger product portfolio so that they have a variety of products to choose from. |
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Factors | What does it mean for BBQfun |
| BBQfun should also advertise their products to the customers to make them aware of their product portfolio |
| BBQfun should expand their operations to south east Queensland to take advantage of the growing market. |
| They should also consider entering the e-commerce routes to reach out a large number of customers.
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Factors | What does it mean for BBQfun |
| As the economy of Australia is increasing, the personal disposable income will also increase. This will lead to a rise in demand.
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| The government is also aiming at helping the firms to grow and develop in future. |
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| 2014 | 2015 | 2016 | How does it impact BBQfun |
Total sales | $11,000,000 | $12,000,000 | $15,000,000 | Increase in sales volume helps the company to expand its operations. |
Gross profit | $5,110,000 | $6,500,000 | $7,500,000 | The gross profit will help the firm to meet its expenditure. |
8.Research potential new markets for the organisation in relation to:
Potential new markets | |||
Factors | Options | Considerations | F or U(favourable or unfavourable) |
| (new geographic opportunities #1) | UK can be an option for BBQfun to expand its business operations. UK has conducive political environment for any business to conduct its operations in and is also inviting foreign companies to invest in their economy. | favourable |
(new geographic opportunities #2) | USA can also be an option as it has a growing GDP, which results in an increase in the personal disposable income of the people. The people have high purchasing power, which increases the demand in the economy. USA also has a good demographic population which suits the target audience of BBQfun. | favourable | |
(new geographic opportunities #3) | China is also a country where BBQfun can seek opportunities to expand. China is the world’s fastest developing country and has a strong economy which generates demand. The only problem with China is that they have strict laws and regulations for the foreign companies to allow them to enter into the market. | unfavourable | |
| (customers within the market not tapped #1) | In UK, the BBQfun should focus on the premium lifestyle range of products, as the companies in UK have not made any significant move to penetrate that part of the market. The premium market for lifestyle and outdoor product is still unexplored and expanding in this area would reap benefits for BBQfun. | favourable |
(customers within the market not tapped #2) | In USA, the market for low cost imported goods has not been explored yet. the local goods market is so strong there that the business man there have not properly exploited the imported goods sector. Hence, BBQfun can concentrate on this part of the market. | favourable | |
(customers within the market not tapped #3) | In China also the imported goods market has not been explored because of the trade restrictions by the government. Hence, BBQfun can explore this market if they get permission from the Chinese government. | unfavourable |
9.Based on Q2, provide an evaluation and analysis on:
a.The various strategic marketing approaches (such as; increasing market share, developing new markets, developing new products and diversification) that the company should consider in terms of expanding their business potential and discuss what are the likely options for implementation.
Strategic marketing approaches | |||
Factors | Options | Considerations | F or U(favourable or unfavourable) |
(present market, present product) | Market share growth | The outdoor and lifestyle market in UK is growing at the rate of 6.6% per anum. Therefore, with the existing line of products that BBQfun offers, they can venture into the UK markets. USA and China market is also at a growing stage and it would be advisable for BBQfun to explore the imported goods market of both the countries. | favourable |
Customer loyalty improvement | In today’s world, the customers are only loyal to those companies that offer good quality products at lower prices. Therefore, BBQfun will have to concentrate on manufacturing good quality products at reasonable prices to attract customers. In UK and USA they will not face much stiff competition but in China they will have to find ways to reach out to the customers because China has a huge market which offers goods at low prices. | favourable | |
Customer value improvement | The company needs to concentrate on providing after sale services to its customers to create customer value. They will have to ensure that in each market they satisfy the needs and wants of their customers(Zhou, 2012). | favourable | |
| Design | All the three countries market focuses on the design of the product. BBQfun will have to make changes in the designs of their goods according to the tastes and preferences of the customers of the country they want to cater. Very market has different taste and preferences, which BBQfun has to understand (Bellandi, & Lombardi, 2012). | Favourable |
Technology | Technology used by BBQfun will have to be advanced and up-to-date to combat the competition it will face from its competitors. If BBQfun expands its market in China then their technology has to be the best in the market because the Chinese market is highly advanced and technologically forwards. | favourable | |
Distribution | BBQfun will also have to concentrate on establishing its distribution network to make sure that their products are easily available in the market. In establishing a distribution network, BBQfun will not face any issues in UK, USA or China as all these countries have an advanced e-commerce method o establishing distribution network. | favourable | |
| Exporting | BBQfun will gain a competitive advantage if they export their current products to USA as the market for imported goods is not explored yet. But in China the imported goods market is well explored and by entering into that market BBQfun will get no advantage (Mayer, Melitz, & Ottaviano, 2014). | favourable |
Licensing/ franchising | Obtaining trade license in China is a very long drawn and difficult process. BBQfun can obtain trade license easily in UK and USA to start their trade operations there. Franchising will also be more convenient in UK and USA but it would raise the cost for BBQfun. | unfavourable | |
Joint venture | The joint venture option is also available with BBQfun but coming to a consensus for both the companies will be a problem owing to their difference in culture and methods of carrying on trade (Acur, Kandemir, & Boer, 2012). | unfavourable | |
Direct investment | UK, USA and China are inviting foreign direct investments to their countries and so this is a favourable time for BBQfun to enter into foreign markets. | favourable | |
| Related diversification | BBQfun can diverse their product portfolio according in lines with their current portfolio of products. They will have to first identify the needs, wants of the customers in the market, and then in alignment with that diversify their products range. | favourable |
Unrelated diversification | Unrelated diversification can be an option for BBQfun to enter into a new market. But this will increase their cost of operations with no guaranteed return as all the investments will be made in a new market. | Unfavourable |
b.The types of markets and aspects of the marketing mix by ranking each of the following elements mentioned below in terms of their viability and likely contribution to the business such as distribution, products and types of promotional activities.
Types of marketing & markets | |||
Types of marketing | Market to serve | Considerations | Ranking(Most favourable = lowest number while least unfavourable = highest number) |
| USA | The e-commerce market for outdoor and lifestyle products in USA is very advanced and developed and more profitable then UK and China market. Hence, BBQfun should focus on online market in USA by either creating their own e-commerce site or by tying up with the other online websites of USA (Purkayastha, Manolova & Edelman, 2012). | 1 |
| China | For a foreign company it is difficult to enter into the Chinese markets. Hence, BBQfun can use the options of joint venture, strategic alliances or partnership to enter the Chinese market. The only drawback in this case will be that due to the cultural and trade difference, the two companies may not be able to reach a consensus (Chen, Reilly, & Lynn, 2012). | 7 |
| UK | Direct marketing is a way by which the company can advertise its products by sending emails or text messages to the customers or by distributing catalogues and websites. This way of advertising will be helpful for BBQfun in the UK market. | 2 |
| UK | This will be more favourable in the UK market as the customers in UK are more accepting when it comes to trying new brands or products. Therefore, if BBQfun uses the correct method of advertising in the UK market and makes the consumers aware of their line of products, their sales might increase (Uhlaner, L. M, Duplat & Zhou, 2013). | 4 |
| USA | Due to United States Free Trade Agreement between USA and Australia, the trade relations between both the countries are very good. Therefore, the USA government would help BBQfun to reach out to the local customers. | 3 |
| China | Services marketing refer to both B2C and B2B services. Since entering Chinese market is difficult due to its stringent trade laws, service marketing will be beneficial in the Chinese market (Morgan, Katsikeas & Vorhies, 2012). | 6 |
| USA | The telemarketing will be most beneficial in the USA market as the people out there are easily induced into purchasing products by viewing advertisements. | 5 |
10.Using a suitable methodology, such as gap analysis, market or marketing analysis, or competitor analysis, identify and decide on two marketing opportunities to focus on and investigate further.
Gap analysis(analyse 4 marketing opportunities and choose two) | |||
Strategic objective | Current standing | Deficiency | Action plan |
Market penetration | It is selling more number of products in the existing markets. | BBQfun is not being able to get extra market share by market penetration. |
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Product development | It is selling new products in the existing markets. | BBQfun is not being able to innovate its products according to the needs of the market. | A proper market research will help BBQfun to understand the types of products that the market needs. |
Diversification | It is selling new products in the new markets. | The diversification is increasing the cost of BBQfun, which they are not being able to meet in the new market. |
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Market development | It is selling existing products in the new market. | The existing products are not according to the new markets’ tastes and preferences. | BBQfun will need to conduct a market research of the new market to understand the market needs and demand so that they can introduce relevant products in that segment of the market. |
11.Estimate the effect of the two marketing opportunities on the business, for example:
Impact analysis(based on 2 marketing opportunities against following factors) | |||
Marketing opportunity | Factors for consideration | How does it affect BBQfun? | Action plan |
Product development |
| The sales volume will increase as the company’s product portfolio increase. | The company needs to maintain the sales volume. |
| Introducing new products ascertains growth the product portfolio and sales of the company. | The company needs to launch new products according to the needs of the market. | |
| The market share of BBQfun will increase. | The firm has to increase its market share by attracting more consumers. | |
| With increase in sales volume, the profitability will also increase. | The profit level needs to be maintained. | |
| The potential competitors of BBQfun will also try to launch new products in the market. | The analysis of the competitors products and sales needs to be done. | |
Market development |
| The sales figure will increase. | The company needs to attract more customers by means of advertising. |
| Emerging into new markets will ensure growth of the company. | The penetration into new market has to be done after proper market analysis. | |
| The company will need to capture a share of the market in the new country. | In the new market, the market share needs to be established. | |
| In new markets, the profitability cannot be ensured in the formative years. | Profitability needs to be ensured after a few years in the new market. | |
| The company needs to do a proper market research about the rivals in the market. | The market research will help analysing the rivals. |
6.Discuss what are the consideration of external factors (legislations including privacy act, anti-discrimination, competition and consumer act; ATO regulations and GST implications; manufacturing standards; e-commerce best practices marketing codes of practices), costs, benefits, risks and opportunities to determine the financial viability of the selected marketing opportunity.
Assessment of external factors | ||
Types of legislation | What it is about: | How does it impact BBQfun |
General Australian legislation | In Australia, only a Parliament may make legislation or authorize the making of legislation. However, because judges have the role of applying the laws of interpretation, if there is a dispute about the meaning of legislation, the judges decide the dispute.
| They have to follow all regulations and laws laid down by the legislation. |
ATO regulations | The ATO collects income tax, goods and services tax (GST) and other federal taxes | They pay taxes accordingly. |
GST implications | GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia (the indirect tax zone) and on most imports of goods. Exports of goods and services from Australia are generally GST-free. | This will increase expenses by 10%. |
Australian standards | Designed to ensure products, services and systems are safe, reliable and consistently perform the way they were intended to. | Bbqfun’s activities will be monitored. |
e-commerce best practices | Practises that will maximise sales. | Will increase sales revenue. |
Marketing Code of Practice
| A set of standards of conduct for marketers to minimise the risk of breaking legislation laws and to promote a cultureof best practice. | This will protect the company. |
Privacy Act 1988 | This extends to the private sector currently. | Needs to provide information if public demands information. |
Anti-discrimination Act | It is unlawful to discriminate on the basis of a number of protected attributes including age, disability, race, sex, intersex status, gender identity and sexual orientation. | To carry out operations without hurting public and employee sentiments. |
Competition and Consumer Act | It seeks to promote competition, fair-trading as well as providing protection for consumers. | They will have to follow these norms. |
7.Based on the selected marketing opportunities, identify changes to current operations in order to take advantage of the opportunity. Ensure changes identified are adequate to:
Evaluation of required change to meet current operation requirements | |||
Marketing strategies | Factors for consideration | Changes required | Action plan |
New and better packaging |
| Increase in production but keeping in mind not to increase production cost by a large amount such that it can’t be recovered in sales. | Advertising the product in a manner that it reaches a wider consumer base. |
| No such change is required if previous quality of service was satisfactory. | To continue prevalent service if favourable, or improve them. | |
Organic raw materials |
| Organic raw materials will attract a more health conscious consumer base. Hence, the target audience must be found. | Research must be done to find the new customer base. |
| New organic raw materials may lead to change in product quality. Improvement in the product is the most likely consequence. Therefore, no change is required. | Product must be checked to ensure same quality is maintained as before. |
8.Estimate and justify resource requirements and costs for changed operations with considerations on the following areas:
Estimation of costs of resource requirements to meet changed operations | ||||
Marketing strategies | Factors for consideration | Estimated costs ($) | Justifications | Action plan |
New and better packaging |
| Increases by AUD 3200 | For example, the company pays AUD 2 per hour to their employees. If 5 more employees have been hired in addition to the previous existing employees and they work for 40 hours a week then the company’s expense rises by AUD 3200 monthly | To try and get interns and low cost labourers to reduce cost of operation. |
| Increases by AUD 1000 | The expenses associated with the process of selling and delivering goods and services to customers are:-
| The aim is to reduce packaging cost hence the change. So less costing raw material is to be used. | |
| Increases by AUD 1000 |
| New equipment is required to produce new type of packaging. | |
| Increases by AUD 500 | A change in operations leads to increased operational costs. This is because a new packaging will require new promotional activities to make customers aware. Moreover, this extra cost will also be taxable. | This will increase initially so as to make sure that customers are well aware and buy the product | |
| AUD 100 | It is required to train employees so that they implement the changes in the product. | The product manager needs to train employees and make sure that they are fully aware and make no mistakes. | |
Organic raw materials |
| Increases by AUD 3200 | Additional staff may is required as a new production technology will be followed. Say,the company pays AUD 2 per hour to their employees. If 5 more employees have been hired in addition to the previous existing employees and they work for 40 hours a week then the company’s expense rises by AUD 3200 monthly (Williams, 2015). | Preferably people with basic knowledge in organic raw materials should be hired. |
| Increases by AUD 500 | Distribution cost will rise, as organic raw material acquisition will firstly be very difficult. Secondly, to incorporate them in the production process will require new technology and hence change in production process. | To make sure that only the minimum required activities are carried out so as to reduce cost. | |
| Increases by AUD 1000 | This increase in cost occurs, as the old machinery might not be able to able to work with the newly acquired raw materials. So new and upgraded machinery needs to be bought. Cost will also increase due to future depreciation loss, unwanted tear and damage and fuel/ electricity for production, maintenance, insurance premium (Goworek, 2012). | The machinery bought should be compatible with the organic raw materials. They should also be insured and easy to operate. | |
| Increases by AUD 100 | Since a an improved product has been launched, additional promotion needs to be done to make customers aware. | Maximum promotion should be done so that everyone knows that the product has become better and hence this will eventually increase sales. | |
| Increases by AUD 100 | Additional cost is incurred since there might be a change in technology with respect to production. The staff needs to be trained according to the new techniques and methods and made aware what changes have occurred. | To make sure each and every employee knows what the new product entails. |
9.Provide an assessment report on the viability of each opportunity by:
a.Exploring and developing entrepreneurial, innovative or creative options (one for each opportunity) to apply the marketing opportunities in the context of the organisation (For example, if you identify an e-commerce opportunity, determine how to apply the e-commerce opportunity to the organisation including aspects such as media, web-design to appeal to target markets, integration with existing operations, marketing strategy and overall strategic directions)
Viability of marketing strategies | |||||
Marketing strategies | Cost factors for consideration | Plausible risks | Potential benefits | Profitability | |
New and better packaging |
| Cost will increase initially but overall cost in the long run might reduce due to increase in demand of new product. | The new packaging may not be attractive to consumers and hence sales may drop. For example with Tropicana in 2009 when they changed their product design it backfired and their sales dropped by 20% and they lost millions of dollars. | A new packaging will attract new customers as well as the existing client base. This will increase sales. Change in packaging helps brands to stay relevant. | This decision to re-package can go in two directions: 1. Either increase in sales due to increase in visual appeal or viability 2. Losses as sometimes consumers may not like a change since they get too attached to the product or the change was not a good one and hence not very appealing (Sivasubramaniam, Liebowitz, & Lackman, 2012).
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| The new machinery might be too costly to buy and hence has been taken on lease. | The packaging might be discontinued midway due to unforeseeable reasons but lease money will have to be paid till contract is signed. | If machinery is taken on lease then it does not need to be changed or disposed off if there is a change in production process. | Lease contract may be terminated upon requirement | |
| Cost will increase as new machinery might be required to produce the new packaging materials. | The new machinery might not be affordable. Insurance premium might also be too much. | New machinery might actually reduce overall production costs due to new technology being used. | They may be used in other production processes. | |
Organic raw materials |
| Cost of product and production process may increase to compensate for the resources required to acquire organic materials. | Since organic materials are naturally produced and cannot be duplicated, they cannot be bought in bulk and hence may cause delay in production. They may also be difficult to acquire. They may be seasonally available.
| The product quality will improve since natural products are being used. This might appeal to a new and healthier consumer base. | In this new age where people are becoming more aware of benefits of using organic products, sales might increase. However, due to increase in product cost, some existing customers might drop out too (Balta-Ozkan, Boteler & Amerighi, 2014). |
| Machinery on lease | Only certain machines will be able to produce them hence the acquisition of them will also increase cost. | They can be used in further production process. | It is better to take machinery on lease while producing with these materials as it’s availability is uncertain. | |
| Special machinery is required to produce with the new materials. | If the machinery is purchased and then production is stopped midway due to say drop in sales or unavailability of organic raw materials, then this machine will be useless. | Having a machine of your own will make production process smoother and also it’s purchase is a onetime investment. | It might not be profitable to purchase new machinery since an extra cost is already being incurred to acquire the organic materials. |
b.Identify and document changes needed to current operations to take advantage of viable marketing opportunities (in terms of inventory and stock, office space and software usage).
Marketing Report for BBQfun
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Executive Summary I have analysed BBQfun products and found out marketing strategies for them to improve. I have also found potential new markets in USA, UK, and China. I have also analysed the marketing budget.
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Situational Analysis
BBQfun is witnessing a surge in its sales and hopes to achieve its sales target of 11 million dollars in 2016. It even wants to penetrate into newer territories, which will ultimately lead to improvement in their trade operations.
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Marketing objectives
The company will want to enter new markets by providing them with products that suits the needs of the new market. It even wants to achieve its sales target and increase its sales volume.
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Marketing Strategies BBQfun should choose product and market development as their aims. They should also use updated technology as per the current market trend as their marketing strategies.
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Marketing Mix
BBQfun should provide products according to the tastes and preferences of the customers. Prices should be competitive in nature as per the average market prices. Place of operation selected should be such so as to gain maximum profit Promotion should be done to reach maximum customers.
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Marketing Tactics
Optimal customer target to be met. To study the competition. Price to be determined after studying the market and to make sure it will recover more than the production cost so as to gain profit. To make maximum impact through advertising. |
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Marketing Budget
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Monitor & Review of KPIs
Sales revenue has increased due to changes brought about. Customer base has increased. Overall satisfaction with product has also increased.
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Other Considerations To reach a younger consumer base e-commerce websites can be used to sell products. PayPal or net banking facilities should be provided. Transit advertising should be done
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Conclusion The new marketing strategy seems like a good and viable option and can be considered. The expansion in market will lead to increase in sales revenue and job creation. Moreover it will also expand the company if they want to tie up with indigenous companies in these new markets.
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