Task 1: Evaluate and determine the marketing mix

INTRODUCTION

BBQfun is a company that offers different products and incorporates local and imported
goods since its inception in 2009. Since 2010, the retail environment has experienced
competitive pressures, technological changes, changes in consumer confidence and consumer
purchasing behaviours. Despite these uncertainties, the company has always wanted to turn
tables around to overcome the disappointing sales and return to exemplary healthy sales by
building its organizational strengths using targeted marketing strategies. Indeed, this is the
only way the company can exploit marketing opportunities. Today, BBQfun operates
Kenmore and Gold Coast stores. However, it seeks marketing and business opportunities to
that would enable it to achieve national expansion.

MISSION

To provide our customers with great value outdoor lifestyle products and second one to one
customer service.

VISION
 To be, within five years, south east Queensland’s leading outdoor lifestyle retailer.

VALUES

 Quality
 Customer value
 People: Active encouragement of safety, teamwork, diversity, excellence, innovation, and
continuous improvement.

STRATEGIC DIRECTIONS

The strategic context in which BBQfun will achieve its mission and vision is through:
 engaging with customers through promotion and market research
 building reputation for quality products and quality customer service
 supporting people to perform via training and performance management
 Controlling costs.

THE BUSINESS MARKETING OBJECTIVES AND STRATEGIES

BBQ Fun ’s advertising budget is set at $180,000 for the 2012 financial year. The advertising
program will target local letter box drops, radio and magazines. BBQ Fun will use direct mail
and local advertising, with coupon inserts in the BrisNews magazine is likely to be the most
successful of the campaigns. BBQ Fun will try to get articles about BBQ Fun into the
BrisNews magazine. Previous features in the BrisNews magazine have seen a dramatic
increase of sales immediately after the article was published.
  Increase our loyalty customers list from 10,000 to 16,000.
 Establish brand recognition in south east Queensland so that at least two in three people
recognise our brand in a random survey taken in 18 months’ time.
 A double-digit growth rate for each future year.
 Reduce the overhead per store through disciplined management of expenses.
 Continue increase our gross profit margins.

THE KEY CHARACTERISTICS OF BUSINESS PRODUCTS AND SERVICES

BBQfun has created an outdoor lifestyles range of retail products that is differentiated and
superior to competitors. Customers can see the quality of the product as it is displayed in the
stores. The following are characteristics of the product:

- BBQ fun’s credit offer is backed by a top tier bank

- Imported products make up 33% of the product range
- The three-year guarantee is unique in the market price
- Expert, friendly customer service
- BBQfun will ensure that all aspects that are involved in the delivery of satisfaction
to the customer will work using an integrated approach

REVIEW THE PRICING POLICY

Our price as below:

Item Average Average Average Units Revenue Gross

Price COGS contribution profit on
sales
BBQ $600 $300 $300 8330 $4998000 $2499000

Outdoor $850 $420 $430 3500 $2975000 $1505000

Furniture

BBQ $50 $30 $20 40000 $2000000 $800000

accessories

Total 1500 750 750 51830 $9973000 4804000

By the customer demand we change the price to stay on the market.

 Item Average Price Average COGS Average
Contribution
BBQ $550 $300 $250

Outdoor furniture $800 $420 $380

BBQ accessories $45 $30 $15

ANALYSING MARKETING MIX COMPONENTS

BBQfun’s marketing mix is comprised of these following approaches to pricing,

distribution, advertising and promotion, and customer service:

 Pricing – while BBQfun will price at comparable prices for comparable quality, it
will not be cheap. We emphasise value over price and back this up with a three-year
guarantee. We reviewed the price by customer demand.
 Distribution – BBQ fun product will be distributed through two retail stores which
customers can access easily via the large car parking arrangements.
 Advertising and promotion- the successful advertising will be ads and inserts in the
Brizzy as well as a PR campaign of information articles and review also within the
Brizzy. Promotions will take the form of in-store entertainment and competitions with
Prizes to exotic overseas destinations. Social media is considered not viable or
practical considering low participation among targeted segments.
 Customer Service – BBQ fun’s philosophy is that whatever needs to be done to make
the customer happy must occur. This investment will pay off with a loyal customer
base which will recommend BBQ fun to friends.

KEY TO SUCCESS
BBQ fun’s site selection criteria are critical to success
• New dwelling populations
• Shopping patterns requiring easy access
• Customer car parking availability
• Competitive price

EVALUATES THE MARKETING MIX

It is envisaged that new products will be sourced from suppliers on a regular basis in line
with changes in customer taste which is targeted at every 12 months. The plan for product
testing is to engage market research firms. By getting feedback from these firms, changes can
be made or products ‘canned’ so that only tested and proven products make it onto the store
assortment list.

Marketing mix Evaluations

Pricing We check and review the price

Distribution Evaluate the distribution channel

Advertising and Promotion Evaluate and monitor the advertising and

promotion currently circulate

Customer service Monitor and review the customer service

EXTERNAL FACTORS

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:
· The greater disposable household income from two income families
· The greater availability of affordable and interesting quality imports with the high
value of the Australian dollar.
· The marketing by popular TV lifestyle programmed

External:
At present, the real estate market in south east Queensland continues to rise in price, and with
the disposable income of the population. Based on economic forecasts, BBQ fun’s assumes
that interest rates will remain steady and will have little to no effect on disposable income.
The same assumption as made about employment levels, where BBQ fun assumes that
unemployment level remains the same at approximately 4%.
Political:
From research carried out, BBQfun identified that the present Government focus and
emphasis in future legislation direction will be about growth and productivity, which BBQfun
sees as a positive for their business model. There is also a strong path for environmentally
sound business practices and harmonized WHS legislation. BBQfun as a business operating
in Australia will abide by the law in all its dealings and comply with all legislation that
impact as its business activities.

CUSTOMER PREFERENCES

Customer always compares the price, they need competitive price, and then we arrange
survey and questionnaires to the random customer and found that we need to change the
average product price. So, the customer when we change the product average price it impacts
on marketing mix.

Marketing mix Effects

Pricing To the respect on customer demand, we
change the average price, so we will get more
customers.
Distribution Distribute all products within 48 hours in
Australia
Advertising and Promotion Company has special prices on Christmas
and aster sessions
Customer service Review and training all staff according to our
customer service golden rules

THE MARKETING MIX IN RELATION TO ORGANIZATIONAL

STRATEGIC AND OPERATIONAL MARKETING OBJECTIVES.

Objectives Details Relation to marketing mix

Organisational Strategic
objectives
Organisational Marketing
objectives
● Engaging with customers Related to:
through promotion and - Price
market research - Distribution
● Building reputation for - Promotion and advertising
quality products and quality - Customer service
customer service
● Supporting people to
perform via training and
performance management
● Controlling costs
● Increasing sales revenue
and profitability
● Increase our loyalty Related to:
customers list from 10,000 to - Price
16,000 - Distribution
● Establish brand recognition - Promotion and advertising
in south east Queensland so - Customer service
that at least two in three
people recognise our brand

Financial Objectives ● A double-digit growth rate Related to:

 for each future - Price
● Reduce the overhead per - Distribution
store through disciplined - Promotion and advertising
management of expenses. - Customer service
● Continue increase our
gross profit margins.
Customer Satisfaction BBQ fun’s site selection Related to:
Objectives criteria are critical to success. - Price
● New dwelling populations - Distribution
● Shopping patterns - Promotion and advertising
requiring easy access - Customer service
● Customer car parking
availability

RECOMMENDATION OF RELEVANT LEGISLATION

Competition laws Australia has a national statutory framework to ensure that trading is fair
for businesses and consumers. This framework is administered and enforced by the
Australian Competition and Consumer Commission (ACCC).

ACL replaced 17 existing federal, state and territory consumer laws, including:
• standards of business conduct
• unfair contract laws
• harmful business practices
• the regulation of specific types of business-to-consumer transactions
• basic consumer rights for goods and service the regulation of consumer product
safety.

The Corporations Act 2001 (Cth) (the Corporations Act, or CA 2001) is an Act of the
Commonwealth of Australia which sets out the laws dealing with business entities in
Australia at federal and interstate level. It deals primarily with companies, although it also
deals with other entities, such as partnerships and managed investment schemes. The Act is
the primary basis of Australian corporation’s law.

The Fair Work Act 2009 (FW Act) and the Fair Work Regulations 2009 are the main
legislation we deal with. They govern the employee / employer relationship in Australia.
They provide a safety net of minimum entitlements, enables flexible working arrangements
and fairness at work and prevents discrimination against employees. Income Tax Assessment
Act 1997 (colloquially known as ITAA97) is an act of the Parliament of Australia. It is one of
the main statutes under which income tax is calculated.

CONCLUSION
We evaluate and determine the marketing mix by relevant of organizational strategic plan and
objective. According to me if we follow the certain legislation acts and a proper business plan
it’s easy to run a business on safe way with profits.

TASK 2
EXECUTIVE SUMMARY

BBQfun was established in 2009 by its current CEO, Pat Mifsud. BBQfun offers an extensive
product range, incorporating both local and imported goods. BBQfun steadily increased
market share and profitability to 2010 when sales peaked at $10 million. Since 2010, the
increasingly competitive retail environment, technological change, changes in consumer
buying patterns and confidence have led to disappointing sales. However, BBQfun intends to
return to healthy sales of $11 million in 2012 through building on its organizational strengths.
Organizational strengths will be built through targeted marketing strategies aimed at key
segments and through exploiting marketing opportunities.

INTRODUCTION:
BBQ Fun sees its moderate pricing, extensive and high-quality product range, great customer
service, and product guarantees as key offerings to gain traction with a market dominated by
low-quality providers. The basic market need is for quality, fashionable and unique outdoor
lifestyle items that fulfil the house-proud needs of our target market.

I am marketing manager who was asked by senior decision makers in an organisation to write
an evaluation of the marketing mix for a product or service. You made several
recommendations on the marketing mix to be implemented and monitored.

THE PERFORMANCE OF THE MARKETING MIX AGAINST

OBJECTIVES.

After six months we did review the performance found it is on truck.

Item Average Average Average Units Revenue Gross

Price COGS contribution profit on
sales
BBQ $550 $300 $250 4000 $42200000 $1000000

Outdoor $850 $420 $380 2000 $1600000 $760000

Furniture
BBQ $45 $30 $15 20000 $900000 $300000
accessories
Total $1395 $750 $645 26000 $44700000 4760000

BBQfun’s marketing mix is comprised of these following approaches to pricing, distribution,

advertising and promotion, and customer service:
 Pricing: while BBQfun will price at comparable prices for comparable quality, it will
not be cheap. We emphasis value over price and back this up with a three-year
guarantee. After careful consideration, we found that the BBQ accessories price could
be change.

Distribution: BBQfun products will be distributed through two retail stores which
customers can access easily via the large car parking arrangements. After careful
consideration, we found that distribution still smooth and ok.
Advertising and Promotion: the most successful advertising will be ads and inserts
in the Brizzy as well as a PR campaign of informational articles and reviews also
within the Brizzy. Promotions will take the form of in-store entertainment and
competitions with prizes to exotic overseas destinations. Social media is considered
not viable or practical considering low participation among targeted segments.
Customer Service: BBQfun’s philosophy is that whatever needs to be done to make
the customer happy must occur. This investment will pay off with a loyal customer
base which will recommend BBQfun to friends.

PROPOSED CHANGES, USING THE RESULTS OF MONITORING

PERFORMANCE TO ARGUE FOR CHANGES
With survey and monitor the performance we figure out that the price and customer service from
marketing mix could be change.

Impact of changes on planning and marketing or organizational budgets

Item Average Price Average COGS Average

Contribution
BBQ $550 $300 $250

Outdoor furniture $800 $420 $380

BBQ accessories $50 $30 $20

- We increase the BBQ accessories price up by $5 then we will make more money.
- Extensive customer service training to the CSR.
- So, it will not effect on our budget.

Relevance of organizational policies and relevant legislation, regulations,

and codes of practice

Product liability regulation:

Australia has a national statutory framework to regulate product safety and information
standards. These standards are designed to ensure harmful products are not marketed in
Australia. The standards are enforced by the Australian Competition and Consumer
Commission (ACCC). The Corporations Act is the principal legislation regulating companies
in Australia. It regulates matters such as the formation and operation of companies (in
conjunction with a constitution that may be adopted by a company), duties of officers,
takeovers, and fundraising.
The Fair Work Act 2009 (FW Act) and the Fair Work Regulations 2009 are the main
legislation we deal with. They govern the employee / employer relationship in Australia.
They provide a safety net of minimum entitlements, enables flexible working arrangements
and fairness at work and prevents discrimination against employees

Monitoring strategy to ensure changes to marketing mix meet objectives, including

clear objectives, performance benchmarks, responsibilities, and regular monitoring
activities within a set timeframe

Item Average Price Average COGS Average Comments

contribution
BBQ $550 $300 $250 Need same units
sold by next
Outdoor $800 $420 $380 Need same units
Furniture sold by next
BBQ $45 $30 $15 Need same units
Accessories sold by next

We adjusted marketing mix continues to meet organisational, strategic and operational

marketing objectives.

Objectives Details Relation to marketing mix

Organisational Strategic ● Engaging with customers Related to:
objectives through promotion and - Price
market research - Distribution
● Building reputation for - Promotion and advertising
quality products and quality - Customer service
customer service
● Supporting people to
perform via training and
performance management
● Controlling costs
● Increasing sales revenue
and profitability
Organisational Marketing ● Increase our loyalty Related to:
objectives customers list from 10,000 to - Price
16,000 - Distribution
● Establish brand recognition - Promotion and advertising
in south east Queensland so - Customer service
that at least two in three
 people recognise our brand
Financial Objectives ● A double-digit growth rate Related to:
for each future - Price
● Reduce the overhead per - Distribution
store through disciplined - Promotion and advertising
management of expenses. - Customer service
● Continue increase our
gross profit margins.
Customer Satisfaction BBQ fun’s site selection Related to:
Objectives criteria are critical to success. - Price
● New dwelling populations - Distribution
● Shopping patterns - Promotion and advertising
requiring easy access - Customer service
● Customer car parking
availability

Milestone For The Project:

Project 1st Quarter 2nd Quarter Manager Tools

Price July 2011 September 2011 Marketing Manger ACS

UPT
KPI
Training July 2011 September 2011 Marketing Manger Survey
ACS
UPT
Budget July 2011 September 2011 Marketing Manger Comparing
tools

RISK FACTORS

Target Market
Miscalculating your target market or not completing enough market research presents a risk
factor. Minimal surveying of customers to find out what they really need and want may result
in too few facts or erroneous conclusions Branding.
If you are a new company, you probably have not had much time to build your branding.
People need to recognize and trust your brand, and that process can take years. If your
marketing plan overestimates the effect of your brand or believes your brand is more relevant
than it currently is, the plan likely does not account for the extra time or marketing and
promotional efforts needed to build value and trust with prospects.
Marketing planning: Risk can enter your marketing plans as you begin to build them.
Different initiatives and strategic choices carry different types and levels of marketing risk.
Opportunity assessment: During new program and new product opportunity assessment,
marketers evaluate and compare the market opportunity of different strategies and concepts.
Marketers often focus on optimizing awareness, preference, purchase, market share, and ROI.
Often the pursuit of sales and profit growth can lead companies to ignore or underestimate
risk in selecting projects to pursue.
Program/Product development: During the development process, the program or product
concept that you approved may evolve for operational but not strategic reasons. Changes in
execution that deviate from a strong concept may limit the impact and performance of your
new product or program.
Launch: Many marketing programs or new products have been launched only to face an
internal budget cut or a change in external market factors.
Company or product failure: A public relations issue or product problem could damage your
reputation.
Established products: In any given month, a competitor, retailer, or change in the economy
can limit the attractiveness of your products. External risk is harder to predict and can have
more severe consequences.

FINAL RECOMMENDATION

Most of your customers will judge the quality of your product or service by the quality of
your sales presentation. Just as they will judge the quality of medical professionals by how
thorough their examinations are. Understand that customers often make decisions about the
quality of most products and services based on tiny things. One of the things many customers
will pick up on is how you look.
Marketing threats are factors in the external environment that can inhibit you from achieving
your marketing goals. Identifying these threats is part of the strategic planning process of
"SWOT analysis" -- the analysis of strengths, weaknesses, opportunities and threats. SWOT
analysis helps to develop strategies to overcome marketing threats, either by using your
strengths to reduce your vulnerability to threats or by eliminating internal weaknesses that
make your organization vulnerable to threats.

The recommendation for monitor:

- Use the baseline
- Follow the milestone
- Split small portions
- Monitor and review the process
- Check the budget

BBQfun management will take the following measure to reduce risk:

- Industry benchmarking in all areas of organizational performance
- Reviews of marketing/operational planning
- Review of online presence, possible ecommerce opportunities review privacy policy
CONCLUSION

I believe that by following the analysis we do have certain safe steps to implement to make
the market success and potentially run in a positive way as I explained before