BSBMKG501 Assessment 2

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.

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.

c) Use the number of buyers from market potential tables to calculate the unit sales volumes for the e-commerce and bargain market opportunities.

d) From this information, calculate estimated total revenue and gross profit.

e) Use the additional fixed costs and the BBQfun simulated budget to determine the net profit for each opportunity.

f) Use gross profit and total fixed costs from each opportunity to calculate the profitability index for each opportunity.

h) Use information from this assessment task and the BBQfun simulated business to calculate total cost of operational changes.

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:

1. organisational marketing plan, structure, products and services
2. principles of marketing and the marketing mix
3. additional marketing information such as survey results in the BBQfun sales data worksheet.

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:

1. sales volume for each opportunity in FY 2017/18
2. gross and net profit for each opportunity FY 2017/18
3. use numerical analysis or statistical methods to forecast, for example, the size of potential markets in FY2017/18.

4. consider also:

1. impact on growth plans
2. market share
3. knockout factors to rule out opportunities.

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:

1. codes of practice and models
2. regulations
3. relevant legislation.

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

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
4. Referring to BBQfun simulated business documentation, summarise major costs, benefits and risks associated with each opportunity, including risks associated with potential competitors. Identify at least two strategies or approaches to mitigate risk.

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:

• Cancellation of orders
• Unreliable information provided by customer
• Risks from online payments

Bargain market

• Lower products’ costs affect product quality
• Competitiveness from other low-cost competitors

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

• 5% (bargain market)
• 4 % (own brand)
• 7% (e-commerce)

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).

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:

1. additional staff
2. distribution costs
3. equipment
4. promotional costs
5. staff training.

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:

• high risk of customer service quality problems for online customers
• high risk of staff misunderstanding changes and considering online sales as threat to jobs
• eight online sales and customer service people will be needed to manage increased online

Customers

• since stores are overstaffed, need for online people could be met from drawing from existing employees at the two stores
• currently no staff have online customer service skills
• management would like to develop people through retraining rather than hire new staff to handle

online sales

• six delivery trucks needed to enable distribution
• website will take 50 days to develop
• three forklifts needed
• four additional warehouse workers needed

Appropriate language and level of formality to satisfy needs of your readers:

1. formal language
2. technical vocabulary; no need to define terms such as ‘marketing mix’, for example
3. assume knowledge of organisational policies, marketing strategies.

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.