The privacy act defines personal information opinion

Assessment Answers

Part A


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).
BBQ’s R Us	Broad range of outdoor lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on established markets. Strong in the replacements segment. One store in Brisbane. Mostly in Melbourne and Adelaide. Considering e-commerce options.	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).
Outdoorz	: Large operations of only a few stores per city. Mass markets outdoor lifestyles at good value prices. No imported goods. Extensive advertising. Low to medium quality. Strong in the replacement segment rather than new and refurbished dwellings. Gaining strength in Brisbane market. Considering e-commerce options.	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).。

	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

market share
Factors	What does it mean for BBQfun
the greater disposable household income from two income families	It means that customers have the ability to afford to make purchases at a higher level, i.e. spend more, due to dual income within a family. BBQfun can expect that its customers are able to accept a higher price tag productsif they deem it to be of higher quality and better features.
	Since our market share is high and customers are interested in imported products .So, we can use this opportunityto increase our sales
	Advertisements will help in increasing sales. Hence, BBQfun can utilize this opportunity to increase its sales.


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.


	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

Strategic marketing approaches
Factors	Options	Considerations	F or U (favourable or unfavourable)
	Market share growth	The outdoor and lifestyle market in France 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 France 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 France 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 France, 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 France and USA to start their trade operations there. Franchising will also be more convenient in FRANCE 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	France, 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

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.

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.
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.
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.	A proper market research will help BBQfun to understand the diversification of products that the market needs.
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.

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.
	A set of standards of conduct for marketers to minimise the risk of breaking legislation laws and to promote a culture of 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.

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:

Estimation of costs of resource requirements to meet changed operations
Marketing strategies	Factors for consideration	Estimated costs ($)	Justifications	Action plan
New and better packaging	Additional staff	Increases by AUD 3700	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.
New and better packaging	Distribution costs	Increases by AUD 1000	The expenses associated with the process of selling and delivering goods and services to customers are:- Costs of running and maintaining delivery vans AUD 100 Discount allowed to customers for early payment of their debts AUD 50	The aim is to reduce packaging cost hence the change. So less costing raw material is to be used.
		Increases by AUD 1000	Damage due to uninsured losses, accident, sabotage, negligence, terrorism and routine wear and tear AUD 100 Salaries or Wages of personnel operating machinery AUD 300	New equipment is required to produce new type of packaging.
	Promotional costs	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
	Staff training	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
		Increases by AUD 3200	Additional staff may be required as a new production technology will be followed. Say, the company pays AUD 20 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 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 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.
	Staff training	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.

considerations on the following areas: