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BBQfun simulated business (BSBMKG502) BBQfun (simulated business) Table of contents Chapter 1 – Business plan (excerpt) 2 Chapter 2 – Organisational chart and management profiles 3 Chapter 3 –...

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BBQfun simulated business (BSBMKG502)
BBQfun (simulated business)
Table of contents
Chapter 1 – Business plan (excerpt)    2
Chapter 2 – Organisational chart and management profiles    3
Chapter 3 – Management responsibilities    4
Chapter 4 – Budget summary    5
Chapter 5 – Operational plan    6
Chapter 6 – Description of operations    9
Chapter 7 – Organisational risk register    10
Chapter 8 – Marketing plan    12
Chapter 9 – Sales and marketing policy    24
Chapter 10 – BBQfun privacy policy    26
Chapter 11 – Anti-discrimination policy    30
Chapter 12 – Procurement policy and procedures    31
Chapter 13 – List of preapproved suppliers    36
Chapter 1 – Business plan (excerpt)
From BBQfun business plan FY 2016–2017
About BBQfun
BBQfun was established in 2013 by cu
ent 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.
Cu
ently, 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.
BBQfun (simulated business)    Student Workbook
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Chapter 2 – Organisational chart and management profiles
BBQfun organisational chart
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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 Office
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 Manage
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) Manage
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 Manage
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.
Chapter 4 – Budget summary
BBQfun 2016–2017 approved budget by activities to be undertaken
    Income:
    
    
    Sales
    $11,000,000
    Ba
ecues 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 marketing opportunities.
    · Conduct of quarterly surveys on customer satisfaction.
· Evaluation of market and marketing data to determine marketing opportunities.
    2
    Building reputation for quality products and quality customer service.
· Raise organisational profile by 20%.
· Improve client satisfaction performance by 25%.
    · Percentage of
and 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.
    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, WHS, ethical/legal training).
· Strategic goals included in induction program.
· Employee incentives for performance in all areas relevant to operational and strategic goals.
    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 manage
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 XXXXXXXXXXstore manage
· 4 sales team leaders
· 1 delivery truck drive
· 1 warehouse worker.
· Large mezzanine office space (used to be occupied by online retailer, cu
ently 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 manage
· 3 sales team leaders
· 1 delivery truck driver
· 1 warehouse worker.
· Large mezzanine open-plan office space with separate access (cu
ently rented out to telemarketing company).
· Lots of spare office space.
· Loading bay with large capacity.
Assessment Materials    BBQfun (simulated business)
BSBMKG502 Establish and adjust the marketing mix    2nd edition version: 1
© 2016 Innovation and Business Industry Skills Council Ltd    Page 10 of 36
Chapter 7 – Organisational risk registe
    BBQfun Risk register FY 2016–2017
    Identified risk
    Probability
    Impact
    Cu
ent 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
Answered Same Day May 30, 2020 BSBMGT401 Training.Gov.Au

Solution

Soumi answered on Jun 02 2020
152 Votes
TASK 1: EVALUATE AND DETERMINE MARKETING MIX
AND
TASK 2: MONITOR AND ADJUST THE MARKETING MIX
Table of Contents
Introduction    4
Background    4
Tasks    4
Task 1    4
Choosing a business for determining and evaluating its marketing mix    4
Key Features of BBQfun’s Products and Market Significance    12
Impact of Two changes to Pricing on the Resultant Customer Demand    13
Significance of Promotional Methods, Distribution Channels and Level of Customer Services provided    13
Potential customer base and ways -to reach them successfully    13
Components of Marketing Mix of BBQfun    14
External Environmental Factors and their Impact on Marketing Mix    14
Consumer priorities, needs, preferences and their Impact on Marketing Mix    14
Evaluating products against marketing objectives, target market characteristics and desired positioning    15
Marketing mix for suitable organisational, strategic and operational objectives    16
Legal implications towards implementing recommended marketing mix    16
Task 2    16
Monitoring of marketing mix against marketing performance:    16
Alternation of the marketing mix to meet the market demand:    16
Adjustment of marketing mix on the basic of monitoring:    17
Recommend changes supported by market testing    17
Outline of relevance in recommended changes    18
Ensuring the marketing mix meets the budgetary requirements    18
Strategic and operational marketing objectives and desired position    18
Assessing the impact of changes to marketing mix and planning monitoring activities    19
Conclusion    19
References    20
Introduction
This report will look at the marketing mix of a chosen company. The first task will be evaluating and determining the marketing mix of a selected business, which will be analysed from the perspective of its effectiveness in the cu
ent competitive market scenario. Deciding an optimum marketing mix is the crux for the success or failure of any product or service. The second task of the assignment deals with monitoring of the marketing mix of burgers that targets young customer willing to spend some quality times watching movie. Various issues relating to the marketing mix have been identified in the later part of the assignment.
Background
The report will be discussed in the context of BBQfun for which analysis will be conducted in order to know the features of their marketing mix, impacts of changes on them, significance of marketing elements on yield useful outcomes and for identifying the potential customers. Further, the consumer priorities, effectiveness of the products of the company and their suitability in terms of their organisational objectives will also be assessed.
Tasks
Task 1
Choosing a business for determining and evaluating its marketing mix
Market Research
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 yea
· new homes and renovated homes growing from a base of 50,000 per yea
· 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.
· 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.
Marketing Plan
Executive Summary
BBQfun was established in 2013 by its cu
ent 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.
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.
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 needs
· 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 dolla
· The marketing by popular TV lifestyle programmes.
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
ight, 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
and 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.
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.
Competition
· 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
· BBQ’s R Us: Broad range of outdoor lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on established markets. Strong in the replacements segment. One store in Brisbane. Mostly in Melbourne and Adelaide. Considering e-commerce options.
· 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 refu
ished dwellings. Gaining strength in Brisbane market. 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.
Financials, Budgets, and Forecasts
This section will offer a financial overview of BBQfun as it relates to its marketing activities. BBQfun will address
eak-even and profit analysis, sales forecasts, and expense forecasts, linked to the marketing strategy.
Break-even/profit analysis
Direct costs (COGS)
Indirect costs (expenses)
Projected revenue.
2015 sales
    Item
    Average price
    Average COGS
    Average contribution
    Units
    Revenue
    Gross profit...
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