BSBMKG501
Assessment 2
PART 1
1. Read all materials required for this activities; this procedure, BBQfun simulated business, information supplied in the scenario and information supplied in the BBQfun sales data worksheet of the assessment task
2. Using all the information you have been provided with, fill in the blank spaces (shaded boxes) in the BBQfun sales data worksheet in the following order:
a) Forecast the total market potential for 2017/18.
Financial year (FY) |
BBQs |
Outdoor Furniture |
BBQ Accessories |
Total |
FY2017/18 |
52500 |
21000 |
81000 |
154500 |
b) Use the market share for each opportunity and the total market potential to forecast the number of buyers in each category for the e-commerce market opportunity.
BBQs |
Outdoor Furniture |
BBQ Accessories |
|
Number of buyers |
12600 |
5040 |
19440 |
c) Use the number of buyers from market potential tables to calculate the unit sales volumes for the e-commerce and bargain market opportunities.
BBQs |
Outdoor Furniture |
BBQ Accessories |
|
Number of buyers |
12600 |
5040 |
19440 |
Quantity |
1 |
1 |
3 |
Average price |
$620 |
$880 |
$55 |
d) From this information, calculate estimated total revenue and gross profit.
Own brand |
E-commerce |
Bargain market |
|
Additional fixed costs |
Add lease: $1,000,000 |
Add training: $50,000 |
no change in fixed costs |
Add labor: $500,000 Add plant (depreciation): $500,000 |
Add online store development: $100,000 Add new plant and equipment (depreciation): $150,000 Add labor: $250,000 Add reconfiguring of warehouse/office: $50,000 |
e) Use the additional fixed costs and the BBQfun simulated budget to determine the net profit for each opportunity.
Price |
Own brand |
E-commerce |
Bargain market |
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: $10 |
|
Total revenue |
$8,988,000 |
$15,455,000 |
$10,350,000 |
Total gross profit 2016/17 |
$7,084,800 |
$7,063,000 |
$3,625,000 |
Additional fixed costs |
Add lease: $1,000,000 |
Add training: $50,000 |
See approved budget (no change in |
Add labor: $500,000 |
Add online store development: |
fixed costs) |
|
Add labor: $250,000 Add reconfiguring of warehouse/office: $50,000 |
$100,000 |
||
Total net profit 2016/17 |
$ 403,200 |
8,042,000 |
13,975,000 |
f) Use gross profit and total fixed costs from each opportunity to calculate the profitability index for each opportunity.
Own brand |
E-commerce |
Gross profit |
|
Sales |
$7,084,800 |
$7,063,000 |
$3,625,000 |
Opportunity cost |
8% |
8% |
8% |
Cost of good solds |
$6,518,016 |
$6,497,960 |
$3,335,000 |
Profitability index |
0.62 |
1.38 |
0.53 |
h) Use information from this assessment task and the BBQfun simulated business to calculate total cost of operational changes.
Resources |
Costs |
|
Additional staff |
$25,000 year average |
Additional staff costs: $250,000 |
Plant and equipment depreciation |
Delivery trucks ($20,000 each) Forklifts ($10,000 each) |
Plant and equipment costs: $120,000 $30,000 |
Promotion costs |
$500,000 |
|
Website developers |
Contractors ($2,000/day) |
Website development cost: $100,000 |
Staff training |
Online customer service training $3,000 per staff member |
Staff training cost: $24,000 |
Management change leadership training for Management and leadership training cost: |
$3,000 each |
|
store managers and team leaders |
$27,000 |
|
Warehouse and office reconfiguration |
Reconfiguration cost: $50,000 |
|
Total |
$1,101,000 |
Part B
1. Complete a report according to the following requirements.
2. Referring to the BBQfun simulated business documentation, analyse the three opportunities outlined in the scenario in terms of likely fit with organisational goals and capabilities. Consider:
BBQ fun will adopt balanced scorecard approach to measure the performance will enable BBQ fun to monitor and manage overall business strategy by looking at the drivers of current and future success for the organisation. It will focus on the link between the marketing plan and the four critical areas of the business operations namely customer, financial, internal business processes and learning and growth. Sales personal will have a performance measure relating to the overall goal of BBQ fun which will be increase sales from $15 million per year to $20 million per year in the next three years. Marketing personnel will have performance measures that relate to overall marketing activities which is deliver all marketing campaigns on time and within budget.
3. Using information in the BBQfun sales data worksheet, evaluate each opportunity in terms of impact to current business and customer base. Evaluation should include investigation of:
Sales volume (units) in FY2016/17 |
Own brand |
E-commerce |
Bargain market |
BBQ: 7,200 |
BBQ: 12,600 |
BBQ: 10,000 |
|
Furniture: 3,120 |
Furniture: 5,040 |
Furniture: 5,000 |
|
Accessories: 40,320 |
Accessories: 58,320 |
Accessories: 52,500 |
|
Gross profit in FY2016/17 |
$7,084,800 |
$7,063,000 |
$3,625,000 |
Net profit in FY2016/17 |
$2,719,514 |
$4,097,957 |
$1,679,286 |
The size of potential markets in FY2016/17 |
Penetration rate: 60% |
Penetration rate: 80% |
Penetration rate: 70% |
Market volume: 23,256 |
Market volume: 31,008 |
Market volume: 27,132 |
|
Market value: $7,744,248 |
Market value: $10,325,644 |
Market value: $9,034,956 |
4. consider also:
BBQ fun will adopt balanced scorecard approach to measure the performance will enable BBQ fun to monitor and manage overall business strategy by looking at the drivers of current and future success for the organisation. It will focus on the link between the marketing plan and the four critical areas of the business operations namely customer, financial, internal business processes and learning and growth. Sales personal will have a performance measure relating to the overall goal of BBQ fun which will be increase sales from $15 million per year to $20 million per year in the next three years. Marketing personnel will have performance measures that relate to overall marketing activities which is deliver all marketing campaigns on time and within budget.
5. Assess external factors which may be relevant to each opportunity. Identify all of:
BBQ fun legislative and regulatory
1. Australia consumer law
The Australian Consumer Law (ACL) is the national law for fair trading and consumer protection. The ACL commenced on 1 January 2011 and is a cooperative reform of the Australian Government and the States and Territories through the Legislative and Governance Forum on Consumer Affairs (CAF).
2. Intellectual property
Intellectual property (IP) is the property of your mind or proprietary knowledge. Basically, the productive new ideas you create. It can be an invention, trade mark, design, brand, or the application of your idea.
BBQ fun policy and procedure
1. Operate policy and procedure
OGM will govern the daily operation BBQ FUN.
2. Resourcing policy and procedure
BBQ FUN can use a combination of debt and equity to enjoy tax advantage.
3. Human resource policy and procedure
All vacancies at BBQ FUN can be filled from internal and external sources.
6. Refer to relevant BBQfun policies and procedures.
BBQ fun legislative and regulatory
1. Australia consumer law
The Australian Consumer Law (ACL) is the national law for fair trading and consumer protection. The ACL commenced on 1 January 2011 and is a cooperative reform of the Australian Government and the States and Territories through the Legislative and Governance Forum on Consumer Affairs (CAF).
2. Intellectual property
Intellectual property (IP) is the property of your mind or proprietary knowledge. Basically, the productive new ideas you create. It can be an invention, trade mark, design, brand, or the application of your idea.
BBQ fun policy and procedure
Own brand:
If there are contract packers (manufacturers who manufacture products for sales under the brand name of BBQfun), there would be a risk of cannibalizing BBQfun’s brand name, and Copyright violation.
E-commerce:
Bargain market
8. Using information in the BBQfun sales data worksheet, assess the return on investment for each opportunity. Calculate the profitability index for each opportunity.
The return on investment formula:
The return on investment of marketing opportunities is relatively
9. Based on your analysis so far, rank each of the three marketing opportunities. Justify your ranking in terms of both financial and non-financial factors (such as organisational fit).
Own Brand |
Add lease for $ 1,000,000 |
E Commerce |
Add training for $50,000 |
Bargain Market |
No Change in fixed costs |
10. Using information from the BBQfun sales data worksheet, for the top-ranked marketing opportunity, 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
Offer a free newsletter
Free is something that everyone can afford, from small businesses to global corporations. When you offer a free newsletter, you are informing your potential customers that you are willing to provide free information from the start. If you provide good content, customers will know more about your business.
Increase your customer base by asking for opinions
Before a web visitor leaves your website, request that they complete a short survey related to your business. People are happy to express themselves and often enjoy telling you about their online and offline experiences. You can use a survey to conduct industry research, customer experience or measure customer satisfaction.
2. ensure continued quality of service.
Making quality the ‘norm’
While the customer’s personal experience cannot always be completely captured and analysed, this information - call recordings in contact centres, customer emails and social media interactions - combined with customer satisfaction surveys, can give an organisation a better idea of the customer experience. These insights will allow companies to improve their service and tailor their products precisely to what their customers want, improving satisfaction and increasing loyalty.
Unfortunately, the reality for many organisations is slightly different, and organisations often struggle to manage the basic call monitoring functions, or capture additional insight from other channels such as email, instant messaging or social networking sites. Too often the focus is put on streamlining internal efficiency-based metrics, meeting tightly monitored call routing and time SLAs, while the detailed assessment of the customer experience and the outcome of the call are put to one side.
11. Ensure you can justify changes on the basis of maintaining quality.
Build up a team for online service. Establish a website that contains all products’ information about usage, benefits, price, images
1. Reinforce after-sales services
Recognize and reward. It’s one thing to espouse customer service philosophies, and another to cultivate a rich environment for customer service agents to thrive in. Skills are required and training is provided; but success must be recognized. Aside from sales and performance bonuses, soft recognition programs that call out individual acts of awesomeness go a long way toward showing your agents that you’re paying attention.
2. Setting collaboration who provides security of online payment
Require address verification system (AVS) for all sales
It’s just the cold, hard truth: it’s easier for fraudsters to be successful online than in traditional brick-and-mortar locations. In an ecommerce store, it is much more difficult for the merchant to know whether or not the person making the purchase is truly the cardholder. In order to help prevent fraud, the BBQFUN should always use an address verification system (AVS) in the company online store. This system checks whether the billing address is correct by verifying it against the cardholder’s data from the issuing bank. Often, a fraudster attempting to use a stolen card or card number doesn’t have access to the billing address. When he or she attempts to make a purchase, and inputs the wrong billing address, an AVS-enabled system will immediately alert you. 3 It’s important to note that just having an incorrect billing address may not necessarily mean the transaction is fraudulent, so it’s important to take additional security measures to ascertain the identity of the shopper.
3. Gathering online information of customers and make an analysis on online users’ consuming behaviours and attitudes
Attitudes towards buying for BBQFUN toward customer in Melbourne
Consumer buying behaviour is defined as the decision processes and acts of consumers involved in buying and using products or services. It is therefore crucial to understand why consumers make the purchases they make and what factors influence purchasing decisions. In an ever-changing society, listening to and engaging in social media conversations about what people are thinking of buying can be tremendously valuable. BBQFUN monitored and analysed the conversation around purchasing decisions, intent to purchase and advice on purchasing plans in Ireland from January 2018
12. Using information from the BBQfun sales data worksheet, estimate and justify resource requirements and costs for changed operations. Consider:
Resource |
cost for change operation. |
Online marketing |
$10,000 |
Staff |
$8,000 |
Outsource for training |
$15,000 |
13. Prepare the report for the board of directors to document your evaluation of the three marketing opportunities and operational changes for the top-ranked opportunity. Ensure you include the following in your report:
Understanding the basics of statistical analysis is a must for a successful career in the marketing research field.
Statistical procedures and models are available to the marketing researcher to help him or her make forecasts about future events, and these fall under the category of predictive analysis. Regression analysis is commonly used by the marketing researcher to enhance prediction capabilities. There is not enough information to make conclusions so the organisation will need to perform further market research in order to interpret results and make decisions. Descriptive statistics help researchers summarize, conceptualize, interpolate, and communicate their findings. Descriptive analysis is performed with measures of central tendency such as the mean, mode, or median, each of which portrays he typical answer to the question being analysed.
The data above show that the organization need to.
Operational changes
After consulting with the management team at BBQfun, determine:
Customers
online sales
Appropriate language and level of formality to satisfy needs of your readers:
Submit your report as per specifications below. Keep a copy of your report for your records.
Trainer will also provide further explanations on the above instructions in the class which will clearly outline all requirements in more detail and simplistic way according to your understanding level. You may also request your trainer for additional information and may seek help with summarizing of all instructions if required.
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