Identify and evaluate marketing opportunities – BSBMKG501
Task 1: Identify marketing Opportunities
This report focuses on identifying and evaluating the two opportunities for BBQ Fun organization. BBQ fun is one of the leading companies in the market and provides lots of lifestyle products for the customers but at the same time, this firm is quite famous among the customer for providing its outdoor lifestyle products and second-to-none customer service for the customers.
Due to an effective customer service, this firm is leading in the market as well as increasing its sales in the competitive market. In this study, for identifying the BBQ fun opportunities, proper analysis is conducted for understanding the business and market needs or requirements efficiently.
Answer 1: Analyzing information related to organization’s business and market needs
a) Two marketing opportunities
From the given case study, it is analyzed that BBQ Fun is successfully targeting its market segment by providing the quality and unique product or service to its customers in its outdoor lifestyle store.
- i) Comparative market information
The comparative market information is related to organizational market where business is operating successfully by targeting the particular defined market segment. The market information is compared on the basis of market needs, market growth, and market trends and also market characteristics.
- ii) Competitor’s performance
On the other hand, there are different competitors in the market that creates the competitive challenges for the BBQ Fun in the market. There are different competitors for BBQ Fun i.e., The Yard and Outdoorz, etc who are also offering customer with similar outdoor lifestyle service with a limited selection of products and few stores per city.
iii) Customer requirement
At the same time, there are different needs of the customers regarding the all products of the BBQ such as products should be realistic and unique for the customers. The quality in the products should be unique and effective that helps in building the reputation of the company (Jobber and Ellis-Chadwick, 2012).
- iv) Legal and ethical requirement
In this, there are also some ethical and requirements such as products should be authenticated and should not create any issues for the users. The legal and ethical requirements include anti-discrimination policy, fair work act, privacy act, etc.
- v) Market Share
In addition, the market share of the firms found to be also good and stable in condition because BBQ Fun is significantly meeting its market trends and needs for outdoor lifestyles stores at new location of the business. The market share is increasing year to year by 6% which grows the sales for the outdoor lifestyle products and services.
- vi) Market trends and development
While analyzing, it is identified market trend for outdoor lifestyle is more sophisticated and different from existing fashionable trend because people are demanding larger selection of choice.
vii) New and emerging markets
The BBQ Fun can easily target the market by establishing the new outdoor lifestyle store. The new emerging market which BBQ Fun can target is South East Queensland. This is new location where company can easily target the customer efficiently and effectively by offering the best quality of products and services.
viii) Profitability
The profitability of BBQ Fun is steadily increasing in year 2010 due to increase in the sales by $ 10 million. The net profit of the business is $1792286 which company generated from its sales of products and services.
- ix) Sales figures
The sales figure of BBQ Fun budget is $ 11000000 and cost of goods sold is $5890000. This clearly demonstrates that in a year, company is significantly increasing its sales and that lead to increase in the profitability and business growth and expansion.
Answer 2: Research potential new markets for an organization
- a) Export markets
The export market is a potential market for the organization to sell its products and services to customer at different location. The export market can be India, China
- b) Segments of the market not currently penetrated
The market of the organization BBQ Fun is segmented on the basis of products and services demand by the customers. The target market of organization is mainly youth and high class people.
- c) Consider strategic marketing approaches
Strategic marketing approaches is also suitable for identifying the potential new market for an organization for which organization need to analysis the market for which PESTEL analysis should be used. This approach is developed as a marketing strategy which is used by the organizations for achieving better and reliable results.
- d) Increasing market share
The increase in market share is also main element which helps in analyzing the potential new market because or establishing a new market, it should be ensured that market share will increase in future or not.
- e) Developing new markets
Developing a new market is related to market expansion in which company can sell its product and services in same country but at the different areas of market.
- f) Developing new products
Developing new products is new market opportunity for the BBQ Fun to sustain in the competitive market because consumer demands for innovative and dissatisfactory products nd services.
- g) Diversification
Diversification of new market is best opportunity for the company to expand the business to target new market.
Thus, the best two potential markets for the organization is export market and strategic marketing approach that can provide the benefits to the company in establishing a new outdoor lifestyle store at a new location.
Answer 3: Identify two marketing opportunities
In respect to this, the one major opportunity that BBQ Fun can grab to expand its market segment is through e-commerce service i.e., going online with outdoor lifestyle products and services.
This opportunity is quite effective as this help in targeting the different market segment of market and customer by providing online service to them. However, operating the business online will provide the lots of business opportunities for the firm in the market (Hartley and Claycomb 2013).
This opportunity of e-commerce online service will lead to increase in sales and growth of the business.
In addition, it is identified that BBQ Fun has opportunity to increase its sales by expanding the business in new locations like South East Queensland. This opportunity to target the South East will also provide a great chance to target the customer with its products and services.
Simply, the potential target market for the company BBQ Fun is South East Queensland where company can expand its outdoor lifestyle store for targeting a new market.
Type of markets and aspects of marketing mix
- a) E-commerce
For the e-commerce business, the type of market is very effective because this business helps in targeting the large customer base at different geographical boundaries worldwide. In this marketing, online products will be distributed and made available online through online sources such as online sites, facebook and so on.
- b) Business to business marketing
Business to business marketing is a model in which one business sell or purchases the products and services from other business. Business to business marketing provides business opportunities to distribute the product to customers indirectly. The type of promotional tool used for this marketing is telephone, e-mail services.
- c) Direct marketing
Direct marketing is a best marketing tool which is widely used by the companies to target the customers directly. The products and services are sold to the companies through by sending mail to customers, by telephone, catalog distribution, online adverts and so on.
- d) Ideas marketing
Idea marketing is related to marketing activities that help in analyzing the change in target market behavior or attitude on the basis of beliefs, issue, philosophy, etc. The ideas marketing is related aspect to marketing mix in which advertising, marketing planning, social media marketing are used as promotional activities.
- e) Marketing of goods
Marketing of goods is an effective aspect of marketing mix which helps to market those goods which are consumable by the end users such as advertising of products for personal consumption to end users directly.
- f) Public sector marketing
Public sector marketing is different marketing activity which is used by public sector companies for marketing their products and services in the market efficiently. Public sector marketing used to distribute the products and services by joining hands with the government.
- g) Services marketing
Service marketing is related to business to consumer (B2C) and business to business (B2B) services which sells the services to customers such as financial services, hospitality services & car rental services and so on.
- h) Telemarketing
Telemarketing is a method of direct marketing in which salesperson ensure the sale of products and services directly to the customers by contacting them. BBQ Fun can use this type of marketing method for contacting the customers directly for company’s offering of products and services.
Therefore, for BBQ Fun, the types of markets and aspects of marketing mix suitable are e-commerce market and direct marketing of products and services to the customers.
Answer 4: Effect of two marketing opportunities
The effect of two marketing opportunities on the business will be in positive manner and the effect will be seen on the sales, profitability and growth and market share.
- a) Effect on sales volume
The effect of online sales opportunity is positive and effective as it will increase the sale by $15 million in coming three years from sales of $11 million in year 2012. In respect to this, there will be following market objectives of the BBQ Fun organization that to enlarge sales from $11 million per year to $15 million per year in the next three year and also to achieve more customer loyalty towards the customers and to become well-known brand recognition.
- b) Growth
The effect of two marketing opportunities will high on the business growth because the expansion of business to new market and targeting a new segment market through e-commerce service. This expansion of business will lead to growth and development of business to a large extent.
- c) Market Share
On the other side, above stated opportunities will also increase the market share to a next level as company will promote its products and services by adopting innovative promotional practices such as advertising, public relations, direct mail and also using interactive service marketing tools such as website design, sales collateral and so on (Armstrong et al., 2015).
- d) Profitability
The use of opportunity by the company helps in achieving high profitability because providing online products will lead to increase in sales also (Lovelock, 2011).
Answer 5: Using statistical method to forecast effects
For analyzing the effect of sales and profitability, the statistical method i.e., least square method is used efficiently so that future demand can also forecasted (Hair et al., 2012). As per the least squares method, if the firms will achieve the all objectives on time and effectively then it will be profitable for the firms.
Answer 6: Explore and develop innovative and creative options to apply marketing opportunities
For applying the identified marketing opportunities in an organization, for that company need to follow some set of steps or marketing plan. For adopting e-commerce marketing strategy, marketing plan will be developed that will involve the target market, marketing strategy, strategic directions, operations activities, etc.
In a similar manner, the second opportunity to expand the business, there is a need to develop an effective business plan for establishing a business in new target market or location for which proper business financial plan, operational plan and market competition will be analysis.
From the above study, it can be easily concluded that BBQ fun has two different marketing opportunities that help in achieving the success and growth in the competitive business or market environment.
In this, different aspects are studied and analyzed that help in identifying the opportunities i.e., to expand the business in new location and to go with online sales. This study found to be fruitful and effective for an organization to achieve its organizational goal and objectives i.e., to become a leading market player in outdoor lifestyle business.
Task 2: Evaluate marketing opportunities
- a) Organisational marketing plan, structure, products and services
The all three marketing opportunities create a huge impact on the organizational performance as well as on the marketing plan, structure and products and services offered to customers.
These opportunities will fit to organizational goal and capabilities as products and services will be made available to customers online and at a bargain price. The marketing plan will be developed according to marketing opportunities likewise BBQ Fun can manufacture its own products and services and sell that product online.
- b) Principles of marketing and the marketing mix
The principles of marketing need to be consider by the company for achieving all marketing opportunities successfully in the new market location. The marketing mix strategy helps in grabbing the marketing opportunities as well as help in marketing the products and services efficiently and successfully.
- c) Additional marketing information such as survey results in the BBQ Fun sales data worksheet
The additional marketing information will also be used by the BBQ Fun for analyzing the marketing opportunities. The company need to analyze the market environment before entering the new competitive market efficiently for which proper survey need to be conducted by the organization in which sales data also required be analyzed for determining the net profit, gross profit and sales volumes, etc.
- a) Sales volume for each opportunity in FY 2012/13
| Financial year (FY) | BBQs | Outdoor Furniture | BBQ Accessories | Total |
| FY2008/9 | 25,000 | 13,000 | 42,000 | 80,000 |
| FY2009/10 | 35,000 | 15,000 | 58,000 | 1,08,000 |
| FY2010/11 | 40,000 | 17,000 | 68,000 | 1,25,000 |
| FY2011/12 | 45,000 | 19,000 | 75,000 | 1,39,000 |
| FY2012/13 | 50000 | 21000 | 79000 | 150000 |
- b) Use numerical analysis or statistical methods to forecast, for example, the size of potential markets in FY2012/13
- Manufacture and sell own brand
| BBQs | Outdoor Furniture | BBQ Accessories | |
| Number of buyers | 30,000 | 13,000 | 56,000 |
| Quantity | 1 | 1 | 3 |
| Average price | $600 | $850 | $50 |
- Sell products through e-commerce
| BBQs | Outdoor Furniture | BBQ Accessories | |
| Number of buyers | 21 | 22 | 22 |
| Quantity | 1 | 1 | 3 |
| Average price | $620 | $880 | $55 |
- Sell products at bargain prices
| BBQs | Outdoor Furniture | BBQ Accessories | |
| Number of buyers | 40,000 | 20,000 | 70,000 |
| Quantity | 1 | 1 | 3 |
| Average price | $500 | $650 | $40 |
- a) Impact on growth plans
The marketing opportunities will create a positive impact on the growth plan because it provide support to the business to grow its business to a new market where new customers base can be developed and customers are targeted with best quality of products and services of BBQ Fun. But at the same time
- b) Market share
The market share of the organization BBQ Fun will also increase with the increase in the demand for the goods and services. The market share is required to be considered while analyzing the marketing opportunities in order to identify the suitability of selected three marketing opportunities for the business growth.
- c) Knock Out factor to rule out opportunities
The knock out factor that that rule out the opportunities is cultural environment, political system, inability of organization, lack of employee efficiency, lack of marketing strategy and so on. This factor creates negative impact on the success of the business.
External factors relevant to each opportunity
| Marketing Opportunities | External Factors | ||
| Codes of practice and models | Regulations | Relevant legislation | |
| Manufacture and sell own brand | Product labelling, Direct selling | Consumer rights | Legal consideration related to food safety |
| Sell products through e-commerce
|
Foreign direct Investment (FDI), Intellectual property, tax registration, | registration under society security legislation, | |
| Sell products at bargain prices
|
Benchmarking | Fair price, Intellectual property | Amendment related to standard price |
- Manufacture and sell own brand
Major cost – $ 2000000
Benefits – The benefits of this marketing opportunity is that the company will produce the best quality of products and services by using the best resources in an efficient manner.
Risk associated- The risk associated with this marketing opportunity is that there are existing competitors in the same industry as well as market risk is major risk
Two strategies or approaches- BBQ Fun can use two different strategies such as differentiation strategy and market diversification strategy.
- Sell products through e-commerce
Major cost – $ 45000
Benefits – The benefit to the BBQ Fun is that e-commerce service will target the large numbers of customer base by targeting different markets or customers through online selling services.
Risk associated- The major competitor of the company BBQ Fun is potential competitor.
Strategy or approach- BBQ Fun can adopt two different strategies or approach such as market penetration strategy.
- Sell products at bargain prices
Major cost- $ 12500
Benefits –The benefits of selling products at bargain price is that it will increase the customer base as well as increase the sales.
Risk associated – Due to potential competitors, company needs to sell its products at bargain prices so those customers are attracted towards the products and services.
Two strategies or approaches – The two strategies suitable for this achieving the marketing opportunities are market penetration pricing strategy and cost leadership approach.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. USA: Pearson Education.
Hair, J.F., Sarstedt, M., Ringle, C.M. and Mena, J.A., 2012. An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science, 40(3), pp.414-433.
Hartley, R.F. and Claycomb, C., 2013. Marketing mistakes and successes. USA: Wiley.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th). USA: McGraw-Hill Higher Education.
Lovelock, C., 2011. Services marketing: People, technology, strategy. USA: Pearson Education India.
