You have been employed by BBQfun as an external marketing consultant to review the marketing plan and policies and procedures of the organisation. You will need to conduct market research and suggest appropriate marketing activities based on research and in line with the marketing strategy of BBQfun. Consider the following scenario information: BBQfun has a great deal of confidence that the general marketing strategy contained in their marketing plan is sound and should help them to achieve their marketing goals which are to: ● increase sales from $15 million per year to $20 million per year in the next 3 years ● increase market share to 25% in 2015 ● increase our loyalty customers list from 10,000 to 16,000 in 2015 ● establish brand recognition in Brisbane so that at least two in three people recognise our brand in a random survey taken in 18 months time. Management is concerned about the level of detail contained in its target market profiling. For example, Caulfield has been identified as an affluent suburb where many renovating customers live. No information is available on other suburbs that match the target markets. More information is needed on other suburbs. More information is required on lifestyle and psychographic characteristics of potential and current customers as well as behavioural characteristics of the target markets. BBQfun is also concerned about how up-to-date the information in the marketing plan is. Because of the lack of specific profile information, BBQfun has resorted to mass television and print advertisements across the Brisbane area. This has resulted in increased sales, but not enough to justify the huge expense. In fact while gross profit has steadily increased, net profit has remained flat due to the massive advertising spend. This spend is nevertheless considered necessary to keep competitors at bay and maintain market share in the face of stiff competition on price. Some performance information is listed below. Market share The Yard BBQ's R us Outdoorz BBQfun 2013 20% 30% 25% 25% 2014 20% 35% 25% 20% Sales performance 2011 2012 2013 2014 Total sales $ 8,000,000 11,000,000 12,000,000 14,000,000 BBQfun is concerned about a recent loss of market share to BBQs R Us and want to reverse this emerging trend. The organisation's lack of knowledge of their target market is making it difficult for BBQfun to ensure effectiveness in their marketing efforts. Appendix 2 – BBQfun marketing plan 1.0 Executive Summary BBQfun will be the leading outdoor lifestyle retailer in the greater Brisbane area. The product range assortment of barbecues, outdoor furniture and barbecue accessories will position BBQfun as number one in outdoor lifestyle retailing at different price levels to suit different types of consumers. BBQfun will build its reputation on offering the fullest assortment of products possible, incorporating both local and imported goods with products sold on easy to manage long-term payment plans. In addition, our after-sales service and three year guarantees will be attractive to customers in the current market dominated by low quality items. At a Glance – The typical BBQfun Store: ● Location: a commercial, suburban neighbourhood, or urban retail district. ● Design: bright and functional. ● Size: 1,000 to 1,500 square metres. ● Employees: 15 to 20 full-time employees plus casuals ● Types of transactions: 60% cash, 40% on long-term repayment plan. 2.0 Situation Analysis BBQfun is close to entering its 6th year of operation. The initial rollout of stores has been well received, and marketing is now critical to its continued success and future profitability. The basic market need is for quality, fashionable and unique outdoor lifestyle items that caters to the house-proud needs of our market. 2.1 Market Summary BBQfun possesses extensive information about its market and knows a great deal about the common attributes of our most prized and loyal customers. BBQfun will leverage this information to better understand who is served, their specific needs, and how BBQfun can better market to them. 2.1.1 Market Demographics The profile for the BBQfun customer consists of the following geographic, demographic, and behaviour characteristics based on a local Chamber of Commerce report: Overview greater Brisbane 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 5.7%. Geographic: