BSBMKG501 Identify and evaluate marketing opportunities 1st.docx

BSBMKG501 Identify and evaluate marketing opportunities 1st
edition version: 1
© 2015 Innovation and Business Industry Skills Council Ltd
BBQfun (simulated business)
Table of contents
Chapter 1: Business plan (excerpt)
.....................................................................................1
Chapter 2: Organisational chart and management profiles
..............................................2
Chapter 3: Management responsibilities
............................................................................3
Chapter 4: Budget summary
...............................................................................................
.4
Chapter 5: Operational plan
...............................................................................................
..5
Chapter 6: Description of operations
..................................................................................8
Chapter 7: Organisational risk register
...............................................................................9

Chapter 8: Marketing plan
...............................................................................................
. 11
Chapter 9: Sales and marketing policy
............................................................................ 23
Chapter 10: BBQfun privacy policy
................................................................................... 25
Chapter 11: Anti-discrimination policy
............................................................................. 29
Chapter 12: Procurement policy and procedures
........................................................... 30
Chapter 13: List of preapproved suppliers
...................................................................... 35
Assessment Materials BBQfun (simulated business)
edition version: 1
Page 1 of 35
Chapter 1: Business plan (excerpt)
From BBQfun business plan FY 2016–17
About BBQfun

BBQfun was established in 2013 by current CEO, Pat Mifsud.
BBQfun offers an
extensive product range, incorporating both local and imported
goods.
Since 2014, the increasingly competitive retail environment,
technological change,
changes in consumer buying patterns and consumer confidence
has led to
disappointing sales. However, BBQfun intends to return to
healthy sales of $11 million
in 2016 through building on its organisational strengths,
through targeted marketing
strategies aimed at key segments and through exploiting
marketing opportunities.
Currently, BBQfun operates two stores, one in Brisbane
(Kenmore), and one on the
Gold Coast.
BBQfun is seeking business and marketing opportunities that
could lead to interstate
or national expansion if viable and scalable.
Mission
● To provide our customers with great value outdoor lifestyle
products and

second-to-none 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

● increasing sales revenue and profitability.
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Chapter 2: Organisational chart and management profiles
BBQfun organisational chart
Board of Directors
and
CEO Pat Mifsud
Chief Financial
Officer
Riz Mehra
Operations
General Manager
Kim Chen
HR Manager

Les Goodale
Manager
Marketing
Sam Lee
Manager
Brisbane
Pat Sweeney
Manager
Gold Coast
Alex Mitchell
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Chapter 3: Management responsibilities
Pat Mifsud, CEO
Pat is responsible for working with the Board of Directors to
oversee the business, set
overall strategic directions, manage risk, and authorise large

financial transactions.
Riz Mehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements
and overall budgeting. Riz
is also responsible for overseeing budgets for cost centres and
individual projects. At
completion of financial quarters and at the end of projects, Riz
is responsible for viewing
budget variation reports and incorporating information into
financial statements and
financial projections.
Kim Chen, Operations General Manager
Kim is responsible for the day-to-day running of the company.
Kim oversees the
coordination of all operations. Kim is responsible for
sponsoring projects which affect
operations of the organisation as a whole. Kim works with the
HR Manager to coordinate
systems and projects to achieve company-wide synergy.
Les Goodale, Human Resources (HR) Manager
Les is responsible for the productive capacity and welfare of
people at BBQfun. With the

Operations General Manager, Les works to co-ordinate projects
and management
systems such as performance management, recruitment, and
induction.
Sam Lee, Marketing Manager
Sam is responsible for the management of all aspects of
marketing. Sam manages the
activities of the marketing team.
Pat Sweeney, Manager: Brisbane (Kenmore)
Pat is responsible for the management of all aspects of the
Brisbane store.
Alex Mitchell, Manager: Gold Coast
Alex is responsible for the management of all aspects of the
Gold Coast store.
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Chapter 4: Budget summary

BBQfun 2016–17 Approved budget by activities to
be undertaken
Income:
Sales $11,000,000 Barbecues and related equipment.
Investment income $1,567,000 Real estate investment income
and rental of
office space.
Cost of goods sold (COGS) $5,890,000 Cost of provision of
goods, purchase of stock,
distribution.
Gross profit $6,677,000 Gross profit.
Expenses:
Wages, salaries and on
costs
$2,567,890 Wages, salaries, superannuation, work cover
insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS
management
system; change management.

Communication expenses $42,000 Telephone, ISP costs, IT
support.
Marketing $800,000 Cost of staff travel and associated costs
for
sales, etc.
Premises expenses $1,000,000 Rent, electricity, maintenance,
cleaning.
Capital expenditure $120,000 Purchase of new office equipment
(90%),
vehicles.
Depreciation and
amortisation
$177,569 Computers and capital equipment that is
depreciated.
Office supplies $65,068 Printing and stationery, postage,
amenities.
Training $62,187 Sales training: leadership, WHS, ethical/ legal
training.
Total Expenses $4,884,714
Net profit $1,792,286 Net income before tax.

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Chapter 5: Operational plan
BBQfun Operational plan (summary) FY 2016–2017
Objectives: Performance measures Tasks:
1. Engaging with customers
through promotion and
market research.
● Completion of
market/marketing research.
● Completion of customer surveys.
● Completion of reports to identify
● Conduct of quarterly surveys on customer satisfaction.
● Evaluation of market and marketing data to determine

2. Building reputation for
quality products and quality
customer service.
a. Raise organisational
profile by 20%.
b. Improve client
satisfaction
performance by 25%.
● Percentage of brand recognition
in sought-after categories in
periodic customer surveys.
● Percentage of customers with
positive view of organisational
responsiveness, innovation,
quality, ethics, safety.
● Number of customer complaints.
● Delivery times.
● Number of returned items.

● Audit of supplier quality.
● Regular contact with suppliers.
● Investigate resourcing needs: people, products.
● Fulfil resourcing and distribution needs in accordance with
policies and procedures.
● Maintenance of enterprise resource management (ERM),
point of sale (POS) and customer relationship management
(CRM) systems.
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3. Supporting people to
perform via training and
performance management.

● Numbers of injuries (Target = 0).
● Numbers of absentees
(Target = < 3% of total hours).
● Anti-discrimination complaints
(Target = 0).
● Percentage completion of
performance plans and
performance management
process.
● Numbers of coaching sessions
completed.
● Numbers of operational –
related training programs
completed.
● Research effectiveness of possible incentives for: safe work
achievement; healthy lifestyle.
● Engage workers with strategic goals of business and

support professional development in line with strategic
goals. (Targets to be set by individual managers).
● Management engagement with employees to achieve
greater buy in of organisational goals.
● Include explanation of how activities work with
organisational strategic goals in all communications to
internal personnel.
● Regular coaching.
● Training needs analysis and training (leadership, health
and safety, ethical/legal training).
● Strategic goals included in induction program.
● Employee incentives for performance in all areas relevant
to operational and strategic goals.
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4. Reduce direct and indirect
costs of operations
● General ledger accounts;
financial statements:
○ wages
○ cost of agent services
○ consultancy fees
○ wastage and associated
expenses.
● Expense target = $4,884,714
● COGS target = $5,890,000
● Renegotiate with suppliers.
● Research potential new suppliers.
● Research new distribution possibilities such as e-
commerce/delivery.
● Management engagement with employees to achieve

greater employee support of organisational goals.
● Greater use by managers of budgets to encourage
restraint.
● Greater focus on budget restraint in management of
projects/activities.
● Inventory management through ERM to reduce
overstocking and risk associated with storage.
● Incentives (as part of manager/employee performance
management and bonus system).
5. Increasing sales revenue General ledger accounts; financial
statements:
Revenue target = $11 million
Profit target = $1,792,286
● Marketing campaigns.
● Sales training for floor staff.

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Chapter 6: Description of operations
Brisbane: Head office
● Location: Kenmore.
● Size: 15,000 square metres (50% warehouse, 50% display
area). Warehouse area
used at 45% of capacity, but poorly configured to accommodate
heavy increase in
distribution traffic.
● Employees:
○ 30 full-time and casual sales and customer service people,
check-out staff
trained in use of POS (integrated with ERM and CRM software
system)
○ senior management team (5) + 1 store manager
○ 4 sales team leaders
○ 1 delivery truck driver
○ 1 warehouse worker.

● Large mezzanine office space (used to be occupied by online
retailer, currently
subdivided and occupied by management team).
● Loading bay with large capacity (most of area incorporated
into customer display
area, could be easily and cheaply reconfigured to accommodate
extra distribution).
Gold Coast operation
● Location: Robina.
● Size: 12,000 square metres (50% warehouse, 50% display
area). Warehouse area
used at 50% of capacity, but poorly configured to accommodate
heavy increase in
distribution traffic.
● Employees:
○ 30 full-time and casual sales and customer service people,
check-out staff
trained in use of POS (integrated with ERM and CRM software
system)
○ 1 store manager
○ 3 sales team leaders

○ 1 delivery truck driver
○ 1 warehouse worker.
● Large mezzanine open-plan office space with separate access
(currently rented out
to telemarketing company).
● Lots of spare office space.
● Loading bay with large capacity.
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Chapter 7: Organisational risk register
BBQfun Risk register FY 2016–2017
Identified risk Probability Impact Current controls Future
actions
Failure to identify changes in market/external
environment and develop appropriate strategies.

Medium High ● Appropriate
insurances held and
coverage reviewed
annually.
● Managers encouraged
and incentivised to
follow performance
management policy.
● Employee performance
plans align with
business plan and six-
monthly review
process in place.
● Project to raise
awareness of anti-
discrimination, health
and safety, and other
legislation/codes of

conduct among staff.
● Industry benchmarking
in all areas of
organisational
performance.
● Review of marketing/
operational planning.
● Review of online
presence, possible
ecommerce
opportunities.
● Although stores have
capacity for twice
current stock levels, a
big increase in volume
will require
reconfiguration of
space.

● Although stores have
office space, for online
sales staff, space
currently being rented
to third party.
Failure to adequately train employees in line with
marketing strategies.
Medium High
Failure to revise operations and resourcing in
accordance with marketing strategies.
Medium High
Failure to ensure product/customer service quality in
event of revised operations through training, re-training,
etc.
Medium High
Failure to recruit qualified sales/customer service staff
due to increased competition in south-east Queensland.
Medium High

Failure to realise revenue gains due to poor consumer
confidence.
High High
Failure to meet creditor obligations from poor cash flow
(due to popularity of financing).
Medium High
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BBQfun Risk register FY 2016–2017
Identified risk Probability Impact Current controls Future
actions
Competition (both bricks and mortar and online)
affecting profit margins and market share.
Medium High ● Appropriate HR
policies and

procedures in place.
Included in employee
induction kits.
management system
in place.
● CRM and ERP software
may need to be
reconfigured to
accommodate
increased distribution.
● Review privacy policy.
Inadequate insurance cover: fire; theft. Low High
Non-compliance on anti-discrimination. Medium High
Poor organisational culture; low level of staff
engagement and morale.
Medium Medium
Loss of knowledge and capability through departing

staff.
Low High
Failure to meet health and safety requirements/other
legal requirements for marketing of products and
services.
Low–
medium
High
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Chapter 8: Marketing plan
! Note: As part of your assessment, you will need to update
marketing information for
the current year. You need to consider updating information

where you see the
following:
Note: Information needs to be updated for the present year.
1.0 Executive Summary
BBQfun was established in 2013 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
2014 when sales peaked at
$10 million. Since 2014, the increasingly competitive retail
environment, technological
change, changes in consumer buying patterns and confidence
has led to disappointing
sales. However, BBQfun intends to return to healthy sales of
$11 million in 2016 through
building on its organisational strengths.
Organisational strengths will be built through targeted
marketing strategies aimed at key
segments and through exploiting marketing opportunities.
2.0 Situation Analysis
BBQfun 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.
2.1 Market summary
BBQfun uses market data from various sources, including
private sources and ABS
statistical data to better understand potential customers, their
specific needs, and how
BBQfun can better communicate with them.
Market characteristics
The profile for the potential BBQfun market consists of the
following geographic and
demographic characteristics.
● Overview Southeast Queensland area:
○ high population growth of 5% per year
○ new homes and renovated homes growing from a base of

50,000 per year
○ low unemployment of 4.7%.
● Geographic:
○ our immediate geographic target is the area of Brisbane with a
population of
2,000,000
○ a 30 km geographic area is the average store market footprint
○ the total targeted population is estimated at 450,000.
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● Demographics:
○ male and female
○ ages 20–50
○ high percentage of young professionals who work in the
central business
district

○ high percentage have completed undergraduate/postgraduate
study
○ an average household income of over $70,000.
Market needs
Note: Information needs to be verified for the present year.
● Selection – a wide choice of options.
● Accessibility – the customer needs easy access to the store
with minimal
inconvenience.
● Customer service – the customer needs expert customer
service to help sort
through choices.
● Competitive pricing – the customer needs all
products/services to be competitively
priced relative to comparable high-end outdoor lifestyle options
offered by
competitors.
● Flexible payment – the customer needs easily managed
payment plan.
● Quality guarantees – the customer requires three year product
guarantees (as
offered by most competitors).

Market trends
The market trend for outdoor lifestyle stores is headed toward a
more sophisticated and
informed customer. Outdoor lifestyles customers are becoming
more sophisticated in a
number of different ways:
● Item quality – the preference for high quality items is
increasing as customers are
learning to appreciate the quality differences.
● Unique – our patrons appreciate the opportunity to include
outdoor lifestyles in
their home that stand out from the mass-produced and low-
quality items.
● Selection – people are demanding a larger selection of
choices; they are no longer
accepting a limited offer in outdoor lifestyles.
Market growth
In 2013, 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 programmes.
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Economy
At present, the real estate market in south-east Queensland
continues to rise in price,
and with it the disposable income of the population.
Based on economic forecasts, BBQfun assumes that interest
rates will remain steady and
will have little to no effect on disposable income. The same
assumption is made about

employment levels, where BBQfun assumes that unemployment
levels remain the same
at approximately 4%.
Political
From research carried out, BBQfun identified that the present
Government focus and
emphasis in future legislative direction will be about growth
and productivity, which
BBQfun sees as a positive for their business model.
There is also a strong push for environmentally sound business
practices and harmonised
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 on its
business activities.
2.2 SWOT analysis
The following SWOT (strengths, weaknesses, opportunities and
threats) analysis captures
the key strengths and weaknesses within the company, and
describes the opportunities
and threats facing BBQfun.

Strengths
● Excellent customer service employees who are highly skilled
and knowledgeable
about outdoor lifestyles.
● Retail space that is bright, functional and engaging to
customers.
● High customer loyalty among repeat customers.
● Assortment of products that exceed competitor offerings in
quality, range and
accessibility.
Weaknesses
● A limited marketing budget to develop brand awareness.
● No online profile.
● The struggle to continually manage cash flow and
profitability due to:
○ high marginal costs and expenses
○ repayment plans taken out by our customers.
Opportunities
● A growing market in a high growth area with a significant
percentage of the target

market still not aware of BBQfun value proposition.
● Increasing sales opportunities outside of our store locations –
south-east
Queensland.
● Growing opportunity for online sales.
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Threats
● Low-cost competition.
● Competition from national chains moving into the Brisbane
market, potentially
through online sales.
● A possible slump in the economy reducing customer's
disposable income spent on
outdoor lifestyles.

2.3 Competition
Note: Information needs to be updated for the present year. For
the purposes of
assessment, named competitors are presumed to exist, although
other competition may
be identified.
National competition
● The Yard: Has a limited selection but significant depth. All
Australian made. No
significant marketing or promotion. The price point is high, but
quality of products is
quite good. Not in south-east Queensland. Considering e-
commerce options.
Considered potential threat for entering market through e-
commerce because of
large distribution network.
● BBQs 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.

● Outdoorz: Large operation 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 replacement segment rather than new
and refurbished
dwellings. Gaining strength in Brisbane. Considering e-
commerce options.
Local competition
● All independents. These stores are owned by individual owner
operators. Ranges
vary according to owner preferences. There are very few
imports. Mostly retailing
Australian manufactured goods. Collectively their average item
sale price is $250,
they have a market share of 48%, and are growing at about 8%
per year.
● One important source of market research is competitive
analysis. BBQfun
management continually visit local outdoor lifestyle stores for
competitive analysis,
providing BBQfun with timely information regarding other
store’s service offering.

● BBQfun do not see the competitors changing their marketing
strategy or product
offer in the foreseeable future.
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2.4 Product/service offering
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:
● BBQfun’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 place
● broadest possible range in chosen field
● expert, friendly customer service

● BBQfun prides itself on providing service that is on par if not
better than any of the
local independent stores and far in excess of the national chains.
BBQfun will ensure that all aspects that are involved in the
delivery of satisfaction to the
customer will work using an integrated approach.
At a glance: The prototype BBQfun store
● Location: a commercial, suburban neighbourhood, or urban
retail district.
● Design: bright and functional.
● Size: 10,000 to 15,000 square metres.
● Employees: 20 to 30 full-time employees plus casuals
● Types of transactions: 60% cash, 40% on long-term
repayment plan.
2.5 Keys to success
Note: Information may need updating for the present year.
BBQfun’s site selection criteria are critical to success.
● new dwelling populations
● shopping patterns requiring easy access
● customer car parking availability.

2.6 Critical issues
BBQfun is still in the speculative stage as a possible franchise
concept or joint venture. Its
critical issues are:
● Committed to sales growth which allows for greater options in
import assortments
and in reduced price with volume buys. This will promote our
uniqueness and
contribute to improved profit margins.
● Continue to finance the easy manage long-term repayment
plan for customers.
● Locate in easy access sites close to the growing markets in
new dwelling
development.
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3.0 Customer Survey Data
Marketing preferences 2015 (survey of 500 customers)

New builds Renovators Replacements
Have visited BBQfun in previous
month
70% 70% 50%
Have bought a BBQfun product
in previous month
70% 65% 50%
Customer service is essential 90% 95% 60%
Price is most important 10% 20% 95%
Australian made is important 80% 65% 55%
Will buy online 100% 100% 100%
Will pay for online delivery if
chosen
100% 100% 100%
Loyalty customer 30% 20% 10%
Target segments (estimated # customers)
Financial year (FY) New builds Renovators Replacements
Totals

FY 2016–17 225,000 125,000 100,000 450,000
FY 2015–16 205,000 110,000 110,000 425,000
FY 2014–15 200,000 100,000 110,000 410,000
FY 2013–14 195,000 95,000 110,000 400,000
FY 2012–13 190,000 90,000 110,000 390,000
4.0 Marketing Strategy
Note: Information may need to be updated for the present year.
BBQfun’s advertising budget is set at $180,000 for the 2016
financial year. The
advertising program will target local letter box drops, radio and
magazines. BBQfun will
use direct mail and local advertising, with coupon inserts in the
BrisNews magazine is
likely to be the most successful of the campaigns.
BBQfun will try to get articles about BBQfun into the BrisNews
magazine. Previous
features in the BrisNews magazine has seen a dramatic increase
of sales immediately
after the article was published.

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4.1 Mission
BBQfun’s mission is to provide our customers with great value
outdoor lifestyle products
and second-to-none customer service.
4.2 Marketing objectives
Note: Marketing objectives are still current for the present year.
● 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.
4.3 Financial objectives
● 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.
4.4 Target marketing
For the purposes of
assessment, identified target markets and advertising media are
presumed to exist,
although other markets and media can and should be identified.
The target market comprises three segments:
● New builds:
○ very proud of laid-back Brisbane lifestyle
○ moderate to highly educated
○ mixture of trade and professional
○ aspire to live in richer suburbs
○ health conscious
○ loyal to Brizzy magazine, both print and online versions
○ love to buy Australian made
○ service and quality is as important as price.
● Renovations:
○ many have homes in other parts of country

○ see themselves as cosmopolitan
○ moderate to highly educated
○ mainly professional
○ health conscious
○ want to see more fine dining and exotic cuisine associated
with the ‘humble’
barbecue
○ loyal to Outdoor Aspire magazine, both print and online
versions
○ service and quality are much more important than price.
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● Replacements:
○ love to support jobs in Australia
○ very proud of laid-back Brisbane appeal
○ don’t like images of Sydney or Melbourne; don’t like ‘snooty’
urban courtyard

gardens and instead prefer a warm Balinese-style look to the
minimalist
Japanese style
○ becoming more health conscious
○ looking to save every dollar, but also aspire to more
glamorous and expensive
equipment at right price
○ aspire to live in richer suburbs
○ loyal to Brizzy magazine, print version
○ quality is as important as price
○ good service is nice but price is more important.
4.5 Positioning
Note: Information may need to be revised after assessment of
BBQfun will position itself as a broad assortment, quality, and
unique outdoor lifestyle
retailer. South-east Queensland consumers who appreciate high-
quality and uniqueness
will recognise the value and unique offerings provided by
BBQfun.
BBQfun’s positioning will leverage their competitive edge:

● Product – the product will be wide ranging, quality and
unique. It offers the ‘house
proud’ customer a different option from the cheap, mass-
produced products
prevalent in the market.
● Service – BBQfun offer the only three-year guarantee in the
market. Our easy pay
payment scheme is just what our mortgage paying customers
welcome. Our
experienced staff can assist with product knowledge second to
none in the industry.
By offering a superior service in range and uniqueness, BBQfun
will excel relative to the
competition and achieve our marketing objectives.
4.6 Strategy pyramids
Note: Although financial objectives may not change, marketing
objectives and aspects of
the marketing mix such as promotion may need to be revised
after assessment of
Financial objectives for the 2016 financial year are:
● 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.
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Our marketing objectives complement and support financial
objectives:
● 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.
The overriding strategy is to position BBQfun as the premier
outdoor lifestyle store in the
south-east Queensland area, to command a majority of the
market share within five
years. The marketing strategy will seek to first create customer
awareness regarding their

services offered, develop that customer base, and work toward
building customer loyalty
and referrals.
The strategy will be reflected in our promotional materials
aimed at target segments. The
message that BBQfun will seek to communicate is that BBQfun
offers the widest, most
exotic, easy access outdoor lifestyle products in Brisbane. This
message will be
communicated through a variety of methods. The first will be
direct mail. The direct mail
campaign will be a way to communicate directly with the
consumer. BBQfun will also use
ads and inserts in Brizzy magazine. BBQfun also believe that
the local patrons far prefer
to receive information from the store via flyers in the letterbox.
4.7 Marketing mix
Note: Aspects of the marketing mix, such as promotion, may
need to be revised after
assessment of marketing opportunities.
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.
● Distribution – BBQfun products will be distributed through
two retail stores which
customers can access easily via the large car parking
arrangements.
● 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 fiercely

loyal customer base which will recommend BBQfun to friends.
4.8 Product development
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.
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4.9 Marketing research
During the initial phases of the marketing plan development in
2010, several focus
groups were held to gain insight into a variety of patrons of
outdoor lifestyle stores. These

focus groups provided useful insight into the decisions, and
decision-making processes,
of consumers.
An additional source of marketing research is a feedback
mechanism based on a
suggestion card system in store.
5.0 Financials, Budgets, and Forecasts
This section will offer a financial overview of BBQfun as it
relates to its marketing
activities. BBQfun will address break-even and profit analysis,
sales forecasts, and
expense forecasts, linked to the marketing strategy.
5.1 Break-even/profit analysis
See approved budget for current projections:
● direct costs (COGS)
● indirect costs (expenses)
● projected revenue.
2015 sales
Item Average

price
Average
COGS
Average
contribution
Units Revenue Gross profit
on sales
BBQ $600 $300 $300 8,330 $4,998,000 $2,499,000
Outdoor
furniture
$850 $420 $430 3,500 $2,975,000 $1,505,000
BBQ
accessories
$50 $30 $20 40,000 $2,000,000 $800,000
Total $9,973,000 $4,804,000
5.2 Sales forecast
Note: Information may need to be revised for the present year
(post-assessment of
market conditions).

Sales forecast
2016 2017 2018
Total sales $11,000,000 $12,000,000 $15,000,000
Gross profit $5,110,000 $6,500,000 $7,500,000
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5.3 Expense forecast
Marketing expenses are to be budgeted to increase to $180,000
in 2016.
Marketing expense budget
Note: Information will need to be revised for the present year
(post-assessment of
potential marketing opportunities).
Expenses 2016 2017 2018
Direct mail $40,000 $50,000 $60,000
Magazine adverts $110,000 $100,000 $80,000

Radio promotions $30,000 $50,000 $70,000
Total $180,000 $200,000 $210,000
6.0 Controls
The purpose of BBQfun marketing plan is to serve as a guide
for the organisation as it
implements the marketing strategy.
6.1 Implementation milestones 2016
Note: Information needs to be revised for the present year (after
identification of
marketing opportunities).
The following milestones identify the key marketing programs
for the 2015 financial year.
Milestones (FY 2015)
Project Start date End date Manager Department
Radio July 2015 June 2016 Marketing Manager Marketing
Magazine & PR July 2015 June 2016 Marketing Manager
Marketing
Direct marketing July 2015 June 2016 Marketing Manager
Marketing
6.2 Marketing organisation

BBQfun’s marketing manager is primarily responsible for
marketing activities and has the
authority and responsibility over all company activities that
affect customer satisfaction.
Feedback will come from in-store feedback forms and local
customer surveys.
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6.3 Contingency planning
Note: Information may need to be revised for the present year
(post-assessment of
potential marketing opportunities).
The following risks have been identified with respect to
implementation of the
marketing plan:
● failure to identify changes in market/external environment
and develop appropriate
strategies

● failure to adequately train employees in line with marketing
strategies
● failure to revise operations and resourcing in accordance with
marketing strategies
● failure to ensure product/customer service quality in event of
revised operations
● failure to recruit qualified sales/customer service staff due to
increased
competition in south-east Queensland
● failure to realise revenue gains due to poor consumer
confidence
● competition (both bricks and mortar and online) affecting
profit margins and market
share
● non-compliance on anti-discrimination
● loss of knowledge and capability through departing staff
● failure to meet occupational health and safety
requirements/other legal
requirements for marketing of products and services.
BBQfun management will take the following measures to reduce
risk:
● industry benchmarking in all areas of organisational
performance

● review of marketing/operational planning
● review of online presence, possible ecommerce opportunities
● review privacy policy.
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Chapter 9: Sales and marketing policy
BBQfun sales and marketing policy
Purpose The purpose of this policy is to ensure BBQfun sales,
marketing and
advertising is accurate and ethical. It also aims to ensure that
activities adhere to legislation, standards and codes of conduct.
This policy and procedure on the use of marketing materials is
required to enable BBQfun to adhere to all legislation relevant
to

marketing practices and meet standards and codes such as
Advertising Standards Bureau (ASB) codes of conduct.
Scope The scope of this policy covers all employees and
contractors of
BBQfun.
Resources Specific guidelines/procedures for the
implementation of this policy
are available below and on the company intranet.
Responsibility Responsibility for the implementation of this
policy rests with all
employees, contractors and management of BBQfun.
Relevant
legislation, etc.
● Privacy Act 1988 (Cwlth)
● Anti-Discrimination Act 1991 (Queensland)
● Competition and Consumer Act 2010 (Cwlth)
● Spam Act 2003 (Cwlth)
● Australian Direct Marketing Association (ADMA) Code of
Practice
● Free TV Australia Commercial Television Industry Code of

Practice
● Australian Guidelines for Electronic Commerce.
Updated/
authorised
6/2015 – Riz Mehra, CFO
General guidelines/procedures for sales and marketing activities
● Follow all BBQfun procedures. Detailed written procedures
are available to all sales
and customer service employees at BBQfun premises and are
included in employee
induction packs.
● Employees should, where required in procedures, use
templates provided for
documenting marketing activities.
● Employees should, where required in procedures or templates,
seek approval from
designated authorities for marketing activities.
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● All marketing material and sales activity must:
○ adhere to the Privacy Act: must not use personal images,
information for
marketing purposes without express written consent
○ adhere to Do Not Call Register legislation: potential
customers on the Do Not
Call Register must not be called for marketing purposes
○ adhere to anti-discrimination policy: images or written
material must not
portray any group or individual in a negative, offensive or
stereotypical way on
the basis of sex, gender, marital status, etc.
● Be conducted in a safe and responsible manner to minimise
risk to health and
safety of BBQfun employees and the general public.
● Not include spam campaigns.
● Adhere to the Competition and Consumer Act 2010 (formerly
the Trade Practices
Act). Employees must not:

○ attempt to induce individuals to place their personal interests
above those of
BBQfun
○ attempt to restrict competition by:
– inducing a competitor or customer to breach a contract with a
third
party
– obtaining unauthorised access to classified or proprietary
information
or documents
– securing an unfair competitive advantage.
○ violate any law or regulation
○ engage in any activity that could damage the reputation of
BBQfun
○ give false or misleading information or advice in relation to:
– claims of products or services: price, benefits, etc.
– the environment and sustainability of BBQfun
– the ethical conduct of BBQfun
– any other claims.
● Where relevant, adhere to standards and codes of practice
regarding specific types

of media such as radio, television or the internet.
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Chapter 10: BBQfun privacy policy
BBQfun Privacy policy
Purpose BBQfun is committed to protecting your privacy. It is
bound by the
national privacy principles contained in the Privacy Act 1988
and all
other applicable legislation governing privacy.
Where appropriate, BBQfun will handle personal information in
accordance with relevant legislation. Our respect for our
customers’
privacy is paramount. We have policies and procedures to
ensure
that all personal information is handled in accordance with

national
privacy principles.
This privacy policy sets out our policies on the management of
personal information – that is, how we collect personal
information,
the purposes for which we use this information, and to whom
this
information is disclosed.
contractors of
BBQfun.
Resources Specific guidance for the implementation of this
policy is available
below in the form of FAQs.
Relevant
legislation, etc.

● Competition and Consumer Act 2010 (Cwlth)
● Spam Act 2003 (Cwlth)
● Australian Direct Marketing Association (ADMA) Code of
Practice
● Free TV Australia Commercial Television Industry Code of
Practice
● Australian Guidelines for Electronic Commerce.
Updated/
authorised
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General guidelines/FAQs:
1. What is personal information?
Personal information is information or opinions that could
identify you. Examples of

personal information include your name, address, telephone
number and email address,
or documents that include this information, like a resume or
customer survey data we
collect.
2. How does BBQfun collect and use your personal information?
BBQfun collects personal information when you send a job
application to us or when you
email us or when we conduct marketing activities.
3. What happens if you don’t provide personal information?
Generally, you have no obligation to provide any personal
information to us. However, if
you choose to withhold personal information, we are unlikely to
be able to respond to your
application or query.
4. To whom do we disclose personal information?
We engage third party service providers (including related
companies of BBQfun which
may be located outside Australia) to perform functions for
BBQfun. Such functions include
mailing, delivery of purchases, credit card payment
authorisation, trend analysis, external

audits, market research, promotions and the provision of
statistical sales information to
industry bodies.
For our service providers to perform these functions, in some
circumstances it may be
necessary for us to disclose your personal information to those
providers. Where
disclosures take place, we work with these third parties to
ensure that all personal
information we provide to them is kept secure, is only used to
perform the task for which
we have engaged them and is handled by them in accordance
with the national privacy
principles.
5. How do we protect personal information?
At all times, we take great care to ensure your personal
information is protected from
unauthorised access, use, disclosure or alteration. We endeavour
to ensure that our
employees are aware of, and comply with, their obligations in
relation to the handling of
personal information. Only properly authorised employees are
permitted to see or use

personal information held by Innovative Widgets and, even
then, only to the extent that is
relevant to their roles and responsibilities.
Your personal information will not be sold to any other
organisation for that organisations’
unrelated independent use. Further, we will not share your
personal information with any
organisations, other than those engaged by us to assist us in the
provision of our
products and services (as described above).
6. What about information you provide in job applications?
If you submit a job application to BBQfun, we will use the
information provided by you to
assess your application. In certain circumstances, BBQfun may
disclose the information
contained in your application to contracted service providers for
purposes such as
screening, aptitude testing, medical testing and human resources
management activities.

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As part of the application process, in certain circumstances, you
may be required to
complete a pre-employment health questionnaire. You may also
be asked to undergo a
pre-employment medical assessment.
If you refuse to provide any of the information requested by
BBQfun, or to consent to the
disclosure of the results of your medical assessment to BBQfun,
we may be unable to
consider your application.
7. Is the personal information we hold accurate?
We endeavour to maintain your personal information as
accurately as reasonably
possible. However, we rely on the accuracy of personal
information as provided to us both
directly and indirectly. We encourage you to notify us if you
become aware the personal
information we hold about you is incorrect or to notify us of a
change in your personal
information.

8. How can you access or correct the personal information we
hold about you?
Wherever possible and appropriate, we will allow you access to
the personal information
we hold about you and correct if it is wrong. If we do not allow
you access to any part of
the personal information we hold about you, we will give you
reasons, consistent with the
Privacy Act, as to why we cannot allow access.
9. BBQfun internet policy
BBQfun generally only collects personal information from its
website when it is provided
voluntarily by you. For example, when you send us an
electronic message with a query
about BBQfun or its services, we will generally use your
information to respond to your
query, provide and market our services to you or as otherwise
allowed or required by law.
For the same purposes, BBQfun may share your information
with other members of the
BBQfun strategic partners (including companies who are
located outside Australia) and
their respective service providers, agents and contractors. If we

do this, we require these
parties to protect your information in the same way we do.
When you visit this website or download information from it,
our internet service provider
(ISP) makes a record of your visit and records the following
information:
● your internet address
● your domain name, if applicable
● date and time of your visit to the website.
Our ISP also collects information such as the pages our users
access, the documents they
download, links from other sites they follow to reach our
website, and the type of browser
they use. However, this information is anonymous and is only
used to statistical and
website development purposes.
We use a variety of physical and electronic security measures,
including restricting
physical access to our offices, firewalls and secure databases to
keep personal
information secure from unauthorised use, loss or disclosure.
However, you should keep

in mind that the internet is not a secure environment. If you use
the internet to send us
any information, including your email address, it is sent at your
own risk.
You have a right of access to personal information we hold
about you in certain
circumstances. If we deny your request for access we will tell
you why.
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10. Use of cookies
A cookie is a small message given to your web browser by our
web server. The browser
stores the message in a text file, and the message is then sent
back to the server each
time the browser requests a page from the server.
BBQfun makes limited use of cookies on their website. Cookies
are used to measure
usage sessions accurately, to gain a clear picture of which areas

of the website attract
traffic and to improve the functionality of our website.
When cookies are used on this website, they are used to store
information relating to your
visit such as a unique identifier, or a value to indicate whether
you have seen a web page.
We use session (not permanent) cookies. They are used to
distinguish your internet
browser from the thousands of other browsers. This website will
not store personal
information such as email addresses or other details in a cookie.
Most internet browsers are set up to accept cookies. If you do
not wish to receive cookies,
you may be able to change the settings of your browser to
refuse all cookies or to notify
you each time a cookie is sent to your computer, giving you the
choice whether to accept
it or not.
11. Customer service satisfaction data
In accordance with company policy all volunteered customer
service data will be treated
in the strictest of confidence. No data will be given to third
parties except to advance the

cause of improved customer service. No information will be
used to market additional
products or services or be given to third parties for this purpose.
All customer data will be
stored securely as per company record-keeping policy.
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Chapter 11: Anti-discrimination policy
BBQfun anti-discrimination policy
Purpose The purpose of this policy is to ensure transactions
with clients,
tenants and other employees is handled fairly and transparently
and
in accordance with organisational and legal requirements.
Generally
it is unlawful to discriminate on the basis of the following 16

characteristics:
● sex
● relationship status
● pregnancy
● parental status
● breastfeeding
● age
● race
● impairment
● religious belief or religious
activity
● political belief or activity
● trade union activity
● lawful sexual activity
● gender identity
● sexuality
● family responsibilities
● association with, or relation

to, a person identified on the
basis of the above.
contractors of
BBQfun.
Resources Specific procedures for the implementation of this
policy are
provided in employee induction kits.
Relevant
legislation, etc.
● Age Discrimination Act 2004 (Cwlth)
● Australian Human Rights Commission Act 1986 (Cwlth)
● Disability Discrimination Act 1992 (Cwlth)
● Racial Discrimination Act 1975 (Cwlth)

● Sex Discrimination Act 1984 (Cwlth).
Updated/
authorised
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Chapter 12: Procurement policy and procedures
BBQfun procurement policy
Purpose The purpose of this policy is to ensure the acquisition
of resources is
carried out consistently, fairly and transparently and in
accordance
with organisational requirements.
Scope The scope of this policy covers the purchasing and
acquisition of
resources by employees and contractors of BBQfun.
Resources Specific principles for the implementation of this

policy are available
below.
policy rests with
employees and management of BBQfun with responsibility for
purchasing resources.
Relevant
legislation etc.
● Australian Securities and Investments Commission Act 2001
(Cwlth)
● Corporations Act 2001 (Cwlth)
● A New Tax System (Goods and Services Tax Administration)
Act
1999 (Cwlth)
● A New Tax System (Goods and Services Tax) Act 1999
(Cwlth)
● Income Tax Assessment Act 1997 (Cwlth)
● Fair Work Act 2009 (Cwlth).

Updated/
authorised
Principles governing the procurement process
1. Probity and ethical behaviour
The principle of probity and ethical behaviour governs the
conduct of all procurement
activities. Employees who have authority to procure goods and
services must comply with
the standards of integrity, probity, professional conduct and
ethical behaviour. Employees
or directors must not seek to benefit from supplier practices that
may be dishonest or
unethical.
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2. Value for money

Value for money is the core principle underpinning
procurement. Contracted
organisations must be cost effective and efficient in the use of
resources whilst upholding
the highest standards of probity and integrity. In general, a
competitive process carried
out in an open, objective and transparent manner can achieve
best value for money in
procurement.
3. Non-discrimination
This procurement policy is non-discriminatory. All potential
contracted suppliers should
have the same opportunities to compete for business and must
be treated equitably
based on their suitability for the intended purpose.
4. Risk management
Risk management involves the systematic identification,
analysis, treatment and, where
possible, the implementation of appropriate risk mitigation
strategies. It is integral to
efficiency and effectiveness to proactively identify, evaluate,
and manage risks arising out

of procurement related activities. The risks associated with
procurement activity must be
managed in accordance with the organisation’s risk management
policy.
5. Responsible financial management
The principle of responsible financial management must be
applied to all procurement
activities. Factors that must be considered include:
● the availability of funds within an existing approved budget
● staff approving the expenditure of funds strictly within their
delegations
● measures to contain costs of the procurement without
compromising any
procurement principles.
6. Procurement planning
In order to achieve value for money, each procurement process
must be well planned and
conducted in accordance with the principles contained in this
document and comply with
all of the organisation’s policies and relevant legal and
regulatory requirements.
When planning appropriate procurement processes consideration
should be given to

adopting an approach, which:
● encourages competition
● ensures that rules do not operate to limit competition by
discriminating against
particular suppliers
● recognises any industry regulation and licensing requirements
● secures and maintains contractual and related documentation
for the procurement
which best protects the organisation
● complies with the organisation’s delegations policy.
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7. Buy Australian made/support Australian industry
Employees who are involved in procurement activities must
make a conscious effort to
maximise opportunities for Australian manufacturers and
suppliers to provide products

where there is practicable and economic value. In making a
value-for-money judgement
between locally made and overseas sourced goods, employees
are to take into account:
● whole-of-life costs associated with the good or service
● that the initial purchase price may not be a reliable indicator
of value
● the quality of locally made products
● the record of performance and delivery of local suppliers
● the flexibility, convenience and capacity of local suppliers for
follow on orders
● the scope for improvements to the goods and ‘add-ons’ from
local industry.
8. Pre-registered list of preferred suppliers
BBQfun shall maintain a pre-registered list of preferred
suppliers, following a request for
expressions of interest and an evaluation of the submissions.
Suppliers can request to be
evaluated for inclusion on the existing pre-register list at any
time.
All purchases under $5,000 may be made from preferred
suppliers without undertaking a

competitive process. Purchases above $5,000 where a preferred
supplier exists should
include a competitive process if practicable.
This list is reviewed at regular intervals with admission of
interested parties on a rolling
basis. Care should be taken to ensure that such lists are used in
an open and non-
discriminatory manner. BBQfun encourages new contractors to
provide information on
their experience, expertise, capabilities, pricing, fees, and
current availability. It is in the
interest of the organisation that the pool of potential suppliers is
actively maintained and
updated. Employees should be encouraged to provide reports of
their experiences in
working with each contractor/consultant to assist future
decisions concerning
commissioning suitable contractors and consultants.
9. Avoid conflict of interest
Employees and directors are required to be free of interests or
relationships in all aspects
of the procurement process.
Employees and directors are not permitted to personally gain

from any aspect of a
procurement process.
Employees and directors shall ensure that to the best of their
knowledge, information and
belief, that at the date of engaging a contractor no conflict of
interest exists or is likely to
arise in the performance of the contractor’s obligations under
their contract.
Should employees or directors become aware of potential
conflicts of interest during the
contract period, they must advise the CEO and directors
immediately.
Prior to any situation arising with potential for a conflict of
interest, complete disclosure
shall be made to the CEO and directors to allow sufficient time
for a review.
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10. Report collusive tendering

Employees should be aware of anti-competitive practices such
as collusive tendering. Any
evidence of suspected collusion in tendering should be brought
to the attention of the
CEO and directors.
11. Competitive process
It is a basic principle of procurement that a competitive process
should be used unless
there are justifiable circumstances. For purchases under $5,000,
the list of preferred
suppliers may be used. The type of competitive process can vary
depending on the size
and characteristics of the contract to be awarded.
12. Direct invitation (selective or restricted tendering)
A process of direct sourcing to tender may be used. This may
involve:
● an invitation to organisations deemed appropriately qualified
for a particular
product or service (this may be appropriate for specialised
requirements in markets
where there is a limited number of suppliers or service
providers)

● an invitation to tender to organisations on BBQfun’s pre-
registered list of preferred
suppliers if applicable.
13. Evaluation and contract award
For projects being awarded, consideration will be given not
only to the most economically
advantageous tender, but also to the track record of the tender
respondent and the
degree of confidence that the panel has in the quality if the bid.
It will be the normal
practice to have the evaluation of tenders carried out by a team
with the requisite
competency.
14. Results of tendering process
All tender respondents should be informed in writing of the
result of a tendering process
immediately after a contract has been awarded.
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Summary of procurement policy delegations
Purchase amount Required number of
quotes
Comment
CEO and one
director
Authority to sign
contracts for
products and
services over
$75,000.
Two or more
competitive quotes
for contracts over
$75,000.
Detailed services

contract required.
CEO Authority to sign
contracts for
products and
services up to
$75,000.
Two or more
competitive quotes.
Detailed services
contract required
for contracts over
$20,000.
General managers
Delegated
authority only
through CEO
Authority to sign
contracts for

products and
services under
$30,000.
One or more
competitive quotes
preferred.
Provided they are
within the approved
budget and
consistent with
business/operation
al and strategic
planning.
Managers Authority to sign
contracts for
products and
services under
$10,000.

One or more
competitive quotes
preferred.
Follow BBQfun
purchasing
procedures.
Contractors and
external
consultants
No authority One or more
competitive quotes
preferred.
Must use preferred
suppliers list.
Contractors and
external consultants
must follow BBQfun
purchasing

procedures and
must seek approval
for purchases from
person holding
relevant authority.
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Chapter 13: List of preapproved suppliers
BBQfun list of preferred suppliers and contractors
● Ace consultants: Project managers, IT technicians, technical
writers, marketers,
subject matter experts for short or long term human resourcing
needs.
● Apex sales training
● Australian BBQ Manufacturers
● Brisbane Car World: Fleet sales and service

● Coffeeville (Brisbane): Business function/training catering
catering menu:
<http://simulations.ibsa.org.au/coffeeville/menu.php>
● Innovative Travel: Business travel bookings
● Outdoor Fine Furniture Makers
● Ready Office Supplies: Computers, photocopiers, etc.
Facilitator Guide Marking Guide
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Marking Guide
Assessment Task 2: Evaluate marketing opportunities
Candidate’s name Phone no.
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Outcomes

Did the candidate:
Satisfactory
Yes No
Submit evaluation report for the Board of Directors?
Submit all assessment materials within the required timeframe?
Performance indicators
Did the candidate:
Satisfactory
Yes No
Identify and analyse opportunities in terms of their likely fit
with
organisational goals and capabilities?
Report refers to:
● organisational marketing plan, structure, products and
services,
for example, report considers opportunities in light of strategic
directions and possible expansion plans
● principles of marketing and the marketing mix, for example,
report refers to:

○ importance of consumer and market data to determine
customer need
○ elements of the marketing mix entailed by each
opportunity: price changes and discounts, product
offering, distribution (online), promotion ($500,000
marketing campaign).
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Did the candidate:
Satisfactory
Yes No
Evaluate each opportunity to determine its impact on current
business
and customer base?
Report refers, for example, to:

● effect on sales volume for each opportunity for current or
upcoming financial year
● market share
● profitability (gross and net profit for current or upcoming
financial year; see example calculations that follow this
Marking
Guide)
● own brand may be knocked out of contention because of
market
need for Australian-made goods.
Report includes at least two instances of numerical analysis or
statistical methods (see example calculations that follow this
Marking
Guide), for example:
● profitability index
● least squares to calculate online market
● CVP analysis to calculate gross and net profit.
Use an assessment of external factors, costs, benefits, risks and
opportunities to determine the financial viability of each
marketing

opportunity?
Report identifies external factors relevant to each opportunity,
for
example:
● Indian law, ATO Regulations and GST implications of
importation
relevant to own brand opportunity
● manufacturing, Australian Standards consideration relevant to
own brand opportunity
● anti-discrimination legislation and the principles of equal
opportunity, equity and diversity
● ethical principles
● marketing codes of practice and conduct such as the
Australian
Direct Marketing Association (ADMA) Code of Practice, the
Free
TV Australia Commercial Television Industry Code of Practice,
and the Australian Guidelines for Electronic Commerce
● Competition and Consumer Act 2010
● privacy laws.

Report should refer to relevant BBQfun policies and procedures.
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Did the candidate:
Satisfactory
Yes No
Report assesses and summarises the viability of each
opportunity?
Including:
● major costs associated with each opportunity, for example:
○ reconfiguration (e-commerce)
○ lease (own brand)
○ plant and equipment (own brand).
● potential benefits, for example financial and strategic
● risks associated with each opportunity and (mitigation

strategies), for example:
○ competition from competitors entering e-commerce space
(increased marketing spend, reducing margins)
○ health and safety, insurance risks associated with
manufacturing (training)
○ health and safety risks associated with increased traffic
and distribution (training)
● risks associated with managing change in the organisation
(leadership training for managers).
Determine probable return on investment and potential
competitors?
Report determines:
● profitability index (see example calculations that follow this
Marking Guide).
Report determines, for example:
● The Yard: has a limited selection but significant depth. All
Australian made. No significant marketing or promotion. The
price point is high, but the quality of products is quite good.

Not
in south-east Queensland. Considering e-commerce options.
Considered potential treat for entering market through
e-commerce because of large distribution network. E-commerce
could mitigate or head-off threat.
● BBQs 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.
edition version: 1
Did the candidate:
Satisfactory

Yes No
● 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. Bargain market opportunity could capture
market share.
Describe and rank marketing opportunities in terms of their
viability
and likely contribution to the business?
Report considers financial and non-financial information in
arriving
at ranking.
Report determines the following options (see example
calculations
that follow this Marking Guide):
1. E-commerce
2. Own brand (but may be considered knocked out because of

risk
of offending market)
3. Bargain market.
Identify and document changes needed to current operations to
take
advantage of viable marketing opportunities?
Report identifies changes, for example:
● current stores may need to be reconfigured to accommodate
more stock and online order delivery
● office space may need to be reconfigured
● head office could move to the Gold Coast to allow office
space in
Brisbane to be used for online sales and customer service
● CRM and ERP software may need to be adapted to
accommodate increased distribution. Extra training may be
needed.
Ensure organisational changes to service an increased or
different
customer base include provisions for continued quality of

service to
existing customers?
Report identifies:
● service an increased or different customer base., for example:
○ need for trained online customer service staff
○ additional staff required in warehouse
○ sales training required.
edition version: 1
Did the candidate:
Satisfactory
Yes No
● ensure continued quality of service, for example:
○ training required for online customer service staff
○ training required for all staff on importance of service

quality to target market.
Report justifies changes on the basis of maintaining quality.
Estimate resource requirements for changed operations?
Report identifies resource requirements and explains costs (see
example calculations that follow this Marking Guide;
operational
costs).
Determine and communicate viability of making changes to
current
operations to key stakeholders?
Report is addressed to Board of Directors as per scenario and
conforms to all requirements and specifications.
Document newly identified marketing opportunities and
required
changes?
Report uses appropriate language and level of formality to
satisfy
needs of readers, for example:

● formal language
● technical vocabulary; no need to define terms such as
‘marketing mix’
● assumed knowledge of organisational policies and marketing
strategies.
edition version: 1
Comments/feedback to participant
Outcome:
Successful Unsuccessful
Assessor name:
Assessor signature:

edition version: 1
Example calculations
Least squares: BBQ customers, total market with e-commerce
included
Consider historical data plotted in chart:
Year Sales (y) Coded time (x) XY ��
FY 2012–13 25,000 1 25,000 1
FY 2013–14 35,000 2 70,000 4
FY 2014–15 40,000 3 120,000 9
FY 2015–16 45,000 4 180,000 16
Total ( ∑ ) 145,000 10 395,000 30
Mean (�̅�), (�̅�) 36,250 2.5
� =
∑ �� − � �̅� �̅�

∑ �� − � �̅��
� =
��, �� − (� × �. � × ��, ��)
�� − (� × �. ��)
� =
��, �� − ��, ��
�� − ��
� = �, ��
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000

45,000
50,000
2011 2012 2013 2014 2015 2016
Potential market
edition version: 1
� = �̅� − ��
� = ��, �� − (�, �� × �. �)
� = ��, ��
� = � + ��
� = ��, �� + (�, �� × �)
� = ��, ��
The estimated number of BBQ customers for 2016–17 is
approximately 52,500
(So, therefore, at 24% market share, BBQfun could expect to
sell 12, 600 BBQs)

Total market potential
BBQs Outdoor
furniture
BBQ
accessories
Total
FY 2012–13 25,000 13,000 42,000 80,000
FY 2013–14 35,000 15,000 58,000 108,000
FY 2014–15 40,000 17,000 68,000 125,000
FY 2015–16 45,000 19,000 75,000 139,000
FY 2016–17 52,000 21,000 88,000 355,500
With e-commerce
BBQs Outdoor furniture BBQ accessories
1. Number of
buyers
12,600 5,040 21,120
2. Quantity 1 1 3
3. Average price $620 $880 $55

edition version: 1
Gross and net profit for each opportunity
Gross profit = Unit contribution margin X number of units
Own brand E-commerce Bargain market
4. Sales volume
(units)
BBQ: 7,200 BBQ: 12,600 BBQ: 10,000
Furniture: 3,120 Furniture: 5,040 Furniture: 5,000
Accessories:
40,320
Accessories: 63,360 Accessories:
52,500
5. Price BBQ: $600 BBQ: $620 BBQ: $500

Furniture:$850 Furniture: $880 Furniture: $650
Accessories:$50 Accessories:$55 Accessories:$40
6. Unit
contribution
margin
BBQ: $500 BBQ: $300 BBQ: $200
Furniture: $600 Furniture: $420 Furniture: $220
Accessories: $40 Accessories: $20 Accessories: $10
7. Total revenue $8,988,000 $15,732,000 $10,350,000
8. Total gross
profit
FY 2016–17
$7,084,800 $7,164,000 $3,625, 000
9. Total fixed
costs
$6,884,714 $5,484,714 $4,884,714
10. Total net profit
FY 2016–17

$200,086 $1,679,286 ($1,259,714)
edition version: 1
Profitability index for each opportunity for 2016–17
Profitability index (PI) =
Present value (PV) of future cash flows
Present value (PV) of initial investment
Own brand E-commerce Bargain
market
Cash flow 2016–17 $7,084,800 $7,164,000 $3,625,000
Opportunity cost 8% 8% 8%
Present value of future cash flows $6,560,000 $6,633,333
$3,356,481
Present value of initial investment $6,884,714 $5,484,714

$4,884,714
Profitability index 0.95 1.2 0.69
Operational costs
Resources Costs
Additional staff $25,000 year average = (4+6) x $25,000=
$250,000
Plant and equipment ● Delivery trucks $20,000 x 6 = $120,000
● Forklifts $10,000 x 3 = $30,000
Promotional costs $500,000
Website developers Contractors $2000 x 50 = $100,000
Staff training Online customer service training $3,000 per
staff
member = $24,000
Management change
leadership training for store
managers and team leaders
(From the BBQfun simulated business, Chapter 6 –
Description of operations) $3,000 each = 1 Brisbane

store manager, 4 Brisbane team leaders, 1 Gold Coast
store manager and 3 Gold Coast team leaders x
$2,000 = $27,000
Warehouse and office
reconfiguration
$50,000
Total $1,101,000
Assessment Task 2 BSBMKG501 Identify and evaluate
marketing opportunities
1st edition version: 1
Page 1 of 10
Evaluate marketing opportunities
Submission details
Assessment site

The assessment task is due on the date specified by your
assessor. Any variations to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See
specifications below for
details.
Performance objective
For this task, you will demonstrate the skills and knowledge
required to investigate
marketing opportunities and evaluate required changes to
current operations.
Assessment description
In response to a simulated business scenario, you will evaluate
three marketing
opportunities that have been identified for you, rank them in
terms of viability and likely
contribution to the business, and assess the impact of the top-
ranked opportunity on
operations. You will then prepare a report for the Board of
Directors documenting
identified marketing opportunities and required changes.

Procedure
There are two parts to this assessment task. Both parts relate to
three new opportunities
that need to be evaluated. Part A requires you to read all
materials and to evaluate and
complete the information in the BBQfun sales data worksheet.
In part B you will prepare a
report for a Board of Directors to outline, evaluate and rank the
opportunities.
Page 2 of 10
Part A
1. Read all materials required for this activity: this procedure,
BBQfun simulated
business, information supplied in the scenario, and information
supplied in the
BBQfun sales data worksheet of this assessment task.
Scenario

You are the Marketing Manager at BBQfun. You and your team
have
identified three marketing opportunities to evaluate. They are:
● manufacture and sell own brand
● sell products through e-commerce
● sell products at bargain prices.
The first opportunity is to manufacture and retail own-branded
barbecues
and products. Manufacture would take place at a leased plant in
India as
BBQfun has no manufacturing capability. Also, manufacture in
Australia
would be too expensive.
The second opportunity is to offer all products in an online
store. Stock
could be stored at no extra cost at existing stores. Customers
would cover
delivery costs.
The third option is to aim to increase market share by cutting
the cost of
products and aiming at mass appeal.

Further information is provided in the BBQfun sales data
worksheet.
Each opportunity will be promoted through a $500,000
television, internet
and email advertising campaign (cost accounted for in approved
budget).
You will need to review the BBQfun simulated business
information to
determine organisational fit, profitability and operational
implications for
each of the three opportunities.
On the basis of the profitability index (opportunity cost
estimated to be 8%)
and a full appreciation of other, non-financial factors, you will
need to rank
these opportunities and choose one top-rated opportunity for
further
evaluation.
After ranking the three opportunities, you will complete your
evaluation in
terms of impact on operations. Information is provided in the
BBQfun sales
data worksheet.

You will then need to provide a report to the Board of Directors
documenting your evaluation of identified marketing
opportunities and
required changes to operations.
Page 3 of 10
2. Using all the information that you have been provided, fill in
the blank spaces (the
shaded boxes) in the BBQfun sales data worksheet in the
following order:
a. Forecast the total market potential for the coming financial
year.
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.
g. Use information from this assessment task and the BBQfun
simulated
business to calculate total cost of operational changes.
3. Complete your own research to supplement the information
you have been
provided with. Ensure that you have all the information that will
enable you to
address all the requirements of the report.
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:
a. organisational marketing plan, structure, products and
services
b. principles of marketing and the marketing mix
c. additional marketing information such as survey results in the
BBQfun sales
data worksheet.
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:
a. sales volume for each opportunity in upcoming financial year
b. gross and net profit for each opportunity
c. use numerical analysis or statistical methods to forecast, for
example, the
size of potential markets.
4. consider also:
a. impact on growth plans

b. market share
c. knockout factors to rule out opportunities.
Page 4 of 10
5. Assess external factors that may be relevant to each
opportunity. Identify
(in outline) all of:
a. codes of practice and models
b. regulations
c. relevant legislation.
6. Refer to relevant BBQfun policies and procedures.
7. 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.

8. Using information in the BBQfun sales data worksheet,
assess the return on
investment for each opportunity. Calculate the profitability
index for each
opportunity.
9. Based on your analysis so far, rank 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:
a. service an increased or different customer base
b. ensure continued quality of service.
11. Ensure you can justify changes on the basis of maintaining
quality.
12. Using information from the BBQfun sales data worksheet,
estimate and justify

resource requirements and costs for changed operations.
Consider:
a. additional staff
b. distribution costs
c. equipment
d. promotional costs
e. 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:
a. An executive summary.
b. The results of your investigation of marketing opportunities
in steps 3–8.
Document the results of your investigation at each step.
Consider
documenting each step separately, under its own section
heading.
c. For the top-ranked opportunity, the results of your evaluation
of required
changes to operations in steps 9–10. Document the results of

your
evaluation at each step. Consider documenting each step
separately, under
its own section heading.
Page 5 of 10
14. Ensure your report is written with appropriate language and
level of formality to
satisfy needs of your readers:
a. formal language
b. technical vocabulary, for example, no need to define terms
such as
‘marketing mix’
c. assume knowledge of organisational policies, marketing
strategies.
15. Submit your report as per specifications below. Keep a copy
of your report for your
records.

Specifications
You must submit:
● evaluation report for the Board of Directors that covers all of
the listed
requirements.
Your assessor will be looking for:
● literacy skills to identify and interpret market information, to
write in a formal style
appropriate to a professional audience and to document
outcomes and
requirements
● numeracy skills to calculate and evaluate financial
information on new marketing
options
● knowledge of key provisions of relevant legislation from all
forms of government,
codes of practice and standards that may affect aspects of
business operations,
such as:
○ anti-discrimination legislation and the principles of equal
opportunity, equity

and diversity
○ ethical principles
○ marketing codes of practice and conduct such as the
Australian Direct
Marketing Association (ADMA) Code of Practice, the Free TV
Australia
Commercial Television Industry Code of Practice, and the
Australian
Guidelines for Electronic Commerce
○ Competition and Consumer Act 2010
○ privacy laws.
● knowledge of the organisational marketing plan, structure,
products and services
● knowledge of principles of marketing and the marketing mix
● knowledge of statistical methods and techniques to evaluate
marketing
opportunities, including forecasting techniques.
Adjustment for distance-based learners
● No variation of the task is required.
● A follow-up interview may be required (at the discretion of
the assessor).

● Documentation can be submitted electronically or posted in
the mail.
Page 6 of 10
BBQfun sales data worksheet
Performance
Market share (projected*):
Assume market share constant across all products.
Financial year (FY) Local
independents
The Yard BBQs R us Outdoorz BBQfun
FY 2013–14 30% 0% 25% 23% 22%
FY 2014–15 30% 0% 27% 23% 20%
FY 2015–13 30% 0% 22% 25% 23%
*FY 2016–17 30% 0% 22% 24% 24%
Sales performance:

Financial year (FY) Total sales
FY 2013–14 8,500,000
FY 2014–15 10,000,000
FY 2015–13 9,000,000
FY 2015–16 9,500,000
Estimated total market potential for FY 2012–13 (SE Qld)
Calculate potential sales for marketing opportunities.
Total market potential (with potential online sales included)
Use to calculate potential sales with e-commerce included in FY
2012–13.
Financial year (FY) BBQs Outdoor
Furniture
BBQ
Accessories
Total
FY 2012–13 25,000 13,000 42,000 80,000
FY 2013–14 35,000 15,000 58,000 108,000
FY 2014–15 40,000 17,000 68,000 125,000

FY 2015–13 45,000 19,000 75,000 139,000
FY 2016–17
Page 7 of 10
Own branded products
Assume market share of 24% for BBQfun to calculate projected
number of units to sell for
each item in FY 2012–13.
BBQs Outdoor Furniture BBQ Accessories
Number of buyers 30,000 13,000 56,000
Quantity 1 1 3
Average price $600 $850 $50
Bargain market
Assume market share of 25% for BBQfun.
Number of buyers 40,000 20,000 70,000

Quantity 1 1 3
With E-commerce
Assume market share of 24% for BBQfun.
Number of buyers
Quantity 1 1 3
Page 8 of 10
Opportunities and profit figures for calculation
Sales volume (units) BBQ: 7,200 BBQ: BBQ:
Furniture: 3,120 Furniture: Furniture:
Accessories: 40,320 Accessories: Accessories:

Price 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
Total gross profit
FY 2016–17
Additional fixed costs Add lease:
$1,000,000
Add labour:
$500,000
Add plant
(depreciation):
$500,000
Add training:

$50,000
Add online store
development:
$100,000
Add new plant and
equipment
(depreciation):
$150,000
Add labour:
$250,000
Add reconfiguring of
warehouse/
office: $50,000
See approved
budget (no change
in fixed costs)
Total net profit
FY 2016–17

Page 9 of 10
Profitability index figures for calculation
Cash flow 2016–17 (Use gross profit) (Use gross profit) (Use
gross profit)
Opportunity cost 8% 8% 8%
Present value of future
cash flows
Present value of initial
investment
(Use total fixed
costs)
(Use total fixed

costs)
(Use total fixed
costs)
Profitability index
Operational changes
After consulting with the management team at BBQfun, you
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
● six additional drivers needed
● office space may need to be reconfigured.
Page 10 of 10
Available resources and costs
Resources Costs
Additional staff $25,000 year average Additional staff costs:
Plant and equipment
depreciation

● Delivery trucks
($20,000 each)
● Forklifts ($10,000 each)
Plant and equipment costs:
Promotional costs $500,000
Website developers Contractors ($2,000/day) Website
development cost:
Staff training Online customer service
training
($3,000 per staff member)
Staff training cost:
Management change
leadership training for
store managers and
team leaders
$3,000 each Management and leadership

training cost:
Warehouse and office
reconfiguration
Reconfiguration cost:
Total
edition version: 1
Marking Guide
Assessment Task 1: Identify marketing opportunities
Assessment site

Outcomes
Did the candidate:
Satisfactory
Yes No
Submit presentation notes and any other materials used in the
presentation, such as PowerPoint slides and handouts?
Present 15–20-minute presentation on two marketing
opportunities?
Submit all assessment materials within the required timeframe?
Performance indicators
Did the candidate:
Satisfactory
Yes No
Analyse information on market and business needs to identify
marketing opportunities?
For example, in presentation, candidate refers to:
● comparative market information

● competitors’ performance
● customer requirements
● legal and ethical requirements
● market share
● market trends and developments
● new and emerging markets
edition version: 1
Did the candidate:
Satisfactory
Yes No
● profitability
● sales figures
● total market potential.

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