Identify Market Oppurtunities Task 2 Essay

Executive Summary BBQfun was established in 2009 by current CEO, Pat Mifsud. BBQfun offers an extensive product range, incorporating both local and imported goods. Since 2010, the increasingly competitive retail environment, technological change, changes in consumer buying patterns and consumer corporate trust has led to disappointing sales. However, BBQfun intends to return to healthy sales of $11 million in 2012 with building on its organisational strengths, through targeted grocerying strategies aimed at key segments and through exploiting marketing opportunities. Currently, BBQfun operates two stores, 1 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 note value outdoor lifestyle products and second-to-none customer service.Vision To be, within five years, south east Queenslands leading outdoor lifesty le retailer.Values Quality client value People Active encouragement of safety, teamwork, diversity, excellence, innovation and continuous improvement.Strategic directionsThe 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 schooling and performance management controlling costs. increasing sales revenue and profitability. summaryAnalyse 3 Opportunities and which of these fit with organisational goalObjectives Opportunities Engaging with customers through promotion & market research. E-commerce Reduce direct & indirect cost of the operations. Own brand, Bargain market Building reputation for quality products and quality customer service E-commerce New marketing opportunities impact Own brand E-commerce Bargain market Sales tidy sum (units) BBQ 7200 BBQ 12600 BBQ 10000 Sales volume (units) Furniture 3120 Furniture 5040 Furniture 5000 Sales volume (units) Accessories 40320 Accessories 63360 Accessories 52500 Own brand E-commerce Bargain market Price BBQ $600 BBQ $620 BBQ $500 Price Furniture $850 Furniture $880 Furniture $650 Price Accessories $50 Accessories $55 Accessories $40 building block contribution margin BBQ $500 BBQ $300 BBQ $200 Unit contribution margin Furniture $600 Furniture $420 Furniture $220 Unit contribution margin Accessories $40 Accessories $20 Accessories $10 Total revenue 8988000 15732000 10350000 Total gross profit 2012/13 7084800 164000 3625000 resumeitional fixed costs institute lease $1000000 Add advertise $500000 Add plant (depreciation) $500000 Add educate $50000 Add online store development $100000 Add unfermented plant and equipment (depreciation) $150000 Add labour $250000 Add reconfiguartion of warehouse/office $50000 See approved budget (no change in fixed costs) Total net profit 2012/13 200086 1679286 1259714 External factorsBefore implementing 3 new changes what are the legislation and standards need to be analysedImport & Export standards for both the countriesLegislation regarding taxes maybe different in both countries Expensive labour costRisk analysisRisk Impact Likelihood Mitigation Web server down High Likely bet on up server, Back up of data Failure to adequately train employees High Unlikely Adherence to performance management policy, Time to time training sessions Not having confidence in Own brand High Unlikely Serious marketing, Customer awareness programs, 24/7 customer service address Benefit Analysis (CBA)Action Cost Benefit Risk F or MF or NF Own brand $6884714 More profit Not having confidence in Own brand F E-commerce $5484714 Less Cost Web server down F Bargain market $4884714 More business Failure to adequately train employees MF Return on investmentReturn on investment(Income-Cost)CostOwn Brand$8988000 $6884714 / $6884714 = 0.3055E-commerce$15732000 $5484714 / $5484714 = 1.868Bargain market$10350000 $4884714 / $4884714 = 1.118Rank new opportunitiesRank 3 opportunities based on its benefit.Rank One Own BrandRank two E-CommerceRank Three Bargain MarketCost & ResourcesBrief cost & resources required to implement each new oppurtunity.Resources Costs Additional staff $25000 year average Additional staff costs$250000 comprise & equipment depriciation Delivery trucks ($20000 each) Forklifts ($10000 each) Plant & equipment costs - $120000 & $30000 Promotional Costs $500000 Website developers Contractors ($2000/ a day) Website development cost $100000 Staff training $ Online customer service training $3000 per staff member Staff training cost $24000 Management change lead training for store managers and team leaders $3000 each Management & leadership costs $42000 Warehouse and office reconfiguration Re-configuration cost - $50000 Total $6016000