Assessment Task 1 – (Project and Presentation)

Identify marketing opportunities

Submission details
The Assessment Task is due on the date specified by your trainer. Any variations to this
arrangement must be approved in writing by your trainer.
Submit this document with any required evidence attached. See specifications below for details.
You must submit both printed copy and soft copy of your answers.
Submit the printed copy of required evidences (your answers) to your Trainer with the
"Assessment Cover Sheet" (Filled out and signed appropriately) attached on top of your
documents.
Upload the softcopy on the link provide in the eLearning site.
Assessment description
You will analyse a real organisation or simulated business to identify two marketing
opportunities, research potential new markets, assess opportunities with respect to contribution
to the business, and explore innovative approaches. You will then prepare a brief presentation
for marketing peers to support and explain the two marketing opportunities you have
identified.
You may base your analysis and report on:
● an organisation you are familiar with, such as a current or previous employment, and
from which you can access organisational strategic and marketing plans to identify and
evaluate marketing opportunities
Note: You should ensure enough information is available for the organisation and
relevant market/s to complete the assessment task to specification
● BBQfun simulated business.

Procedure/Instructions
There are two parts to this assessment task. Part A requires you to identify and evaluate two
opportunities for your chosen organisation. In part B, you will explain the opportunities to your
peers in a 15–20 minute presentation.

Part A
Part A requires you to identify and evaluate two opportunities for your chosen organisation.
1. Choose an organisation to analyse. Identify two marketing opportunities for the
organisation you have chosen.
a. To identify opportunities, analyse information on your chosen organisation’s
market and business needs, for example:
b. comparative market information

Assessment Tasks
BSBMKG501
Updated October 2018 v1.0 Page 1 of 12
 c. competitors’ performance
d. customer requirements
e. legal and ethical requirements
f. market share
g. market trends and developments
h. new and emerging markets
i. profitability
j. sales figures
Note: Some data in the BBQfun simulated business needs to be updated by you. For your
chosen organisation or BBQfun, it is recommended that you use ABSdata, for example, to
determine demographic and consumer trends.
2. Research potential new markets for the organisation, for example:
a. export markets
b. segments of the market not currently penetrated
c. Consider strategic marketing approaches such as:
d. increasing market share
e. developing new markets
f. developing new products
g. diversification
3. Using a suitable methodology, such as gap analysis, market or marketing analysis, or
competitor analysis, identify and decide on two marketing opportunities to focus on and
investigate further.
In your analysis, consider types of markets and aspects of the marketing mix such as
distribution, products and types of promotional activities, for example:
a. e-commerce
b. business-to-business marketing
c. direct marketing
d. ideas marketing
e. marketing of goods
f. public sector marketing
g. services marketing
 h. telemarketing.
4. Estimate the effect of the two marketing opportunities on the business, for example:
a. effect on sales volume
b. growth
c. market share
d. profitability.
5. Use numerical analysis or statistical methods to forecast effects. For example, use the least
squares method to estimate demand. Use estimated demand to calculate effect on sales
and profitability.
6. Explore and develop entrepreneurial, innovative or creative options (one for each
opportunity) to apply the marketing opportunities in the context of the organisation.
For example, if you identify an e-commerce opportunity, determine how to apply the e-
commerce opportunity to the organisation including aspects such as media, web-design to
appeal to target markets, integration with existing operations, marketing strategy and
overall strategic directions.

Part B
Prepare a 15–20 minute presentation for marketing peers explaining and supporting the two
marketing opportunities you have identified. Ensure you complete the following:
1. Describe two marketing opportunities and how you identified them. Describe the process
you undertook to analyse your organisation to identify the marketing opportunities. Refer
to current organisational marketing plan and products/services
2. Support your choice of marketing opportunities with reference to market information
such as market trends and sales figures. Include relevant statistics.
3. Describe the effect of opportunities on the business, for example:
a. sales volume
b. growth
c. market share
d. profitability.
Note: You must use evidence to support your assertions, such as:
a. refer to quantitative or qualitative data
b. show/use results of statistical methods of forecasting demand
c. show results of break-even or profit analysis.
 2. Describe innovative or creative options (one for each opportunity) to apply the marketing
opportunities in the context of the organisation. Refer to aspects of the marketing mix, i.e.,
product, price, promotion, place (distribution). Refer to principles of marketing that apply
to your approaches to realising the proposed opportunities.
3. Use appropriate language and level of formality to satisfy needs of your audience. For
example:
a. professional but semi-formal language
b. technical vocabulary; potential need to define more obscure marketing terms or
statistical methodologies
c. assume no knowledge of specific organisational policies or marketing strategies
d. be prepared to answer questions
e. provide for response and feedback.
4. Prepare and keep presentation notes and other materials used in the presentation such as
PowerPoint slides and handouts.
5. Deliver your presentation as per specifications (below).
6. Submit presentation notes, PowerPoint slides, etc. to your assessor. Keep a copy of all
documentation for your records.

Submission specifications
You must:
● deliver a 15–20 minute presentation
● submit presentation notes and other materials used in the presentation such as
PowerPoint slides and handouts.
Assessment task 2 – (Scenario) Evaluate marketing
opportunities

Submission details
The Assessment Task is due on the date specified by your trainer. Any variations to this
arrangement must be approved in writing by your trainer.
Submit this document with any required evidence attached. See specifications below for details.
You must submit both printed copy and soft copy of your answers.
Submit the printed copy of required evidences (your answers) to your Trainer with the
"Assessment Cover Sheet" (Filled out and signed appropriately) attached on top of your
documents.
Upload the softcopy on the link provide in the eLearning site.
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/Instructions
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.

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.

2. Using all the information you have been provided with, fill in the blank spaces (shaded
boxes) in the BBQfun sales data worksheet in the following order:
a. Forecast the total market potential for 2012/13.
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 FY 2012/13
b. gross and net profit for each opportunity FY 2012/13
c. use numerical analysis or statistical methods to forecast, for example, the size of
potential markets in FY2012/13.
4. consider also:
a. impact on growth plans
b. market share
c. knockout factors to rule out opportunities.
5. Assess external factors which may be relevant to each opportunity. Identify 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 each of 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.
14. Appropriate language and level of formality to satisfy needs of your readers:
a. formal language
b. technical vocabulary; no need to define terms such as ‘marketing mix’, for example
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.

Submission specifications
You must submit:
 evaluation report (approx.1000 words) for the board of directors that covers all of the
listed requirements.
BBQfunsales data worksheet
Performance

Market share (Projected*):

Assume market share constant across all products.
Financial year Local The Yard BBQ’s R Outdoorz BBQfun
(FY) independents us
FY2009/10 30% 0% 25% 23% 22%
FY 2010/11 30% 0% 27% 23% 20%
FY2011 /12 30% 0% 22% 25% 23%
*FY2012 /13 30% 0% 22% 24% 24%

Sales performance:
Financial year Total sales
(FY)
FY2008/09 8,500,000
FY2009/10 10,000,000
FY2010/11 9,000,000
FY2011/12 9,500,000

Estimated total market potential for 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 FY2012/13.

Financial year BBQs Outdoor BBQ Total

(FY) Furniture Accessories
FY2008/9 25,000 13,000 42,000 80,000
FY2009/10 35,000 15,000 58,000 108,000
FY2010/11 40,000 17,000 68,000 125,000
FY2011/12 45,000 19,000 75,000 139,000
FY2012/13

Own Branded products

Assume market share of 24% for BBQfun to calculate projected number of units to sell for each
item in 2012/13.

BBQs Outdoor BBQ Accessories

Furniture

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.

BBQs Outdoor BBQ Accessories

Furniture

Number of buyers 40,000 20,000 70,000

Quantity 1 1 3

Average price $500 $650 $40

With E-commerce
Assume market share of 24% for BBQfun.

BBQs Outdoor BBQ Accessories

Furniture

Number of buyers

Quantity 1 1 3

Average price $620 $880 $55

Opportunities and profit figures for calculation

Own brand E-commerce Bargain market
BBQ: 7200 BBQ: BBQ:
Sales
Furniture: 3120 Furniture: Furniture:
volume
Accessories: 40,320 Accessories: Accessories:
(units)
BBQ: $600 BBQ: $620 BBQ: $500
Price
Furniture:$850 Furniture: $880 Furniture: $650
Accessories:$50 Accessories:$55 Accessories:$40
BBQ: $500 BBQ: $300 BBQ: $200
Unit
Furniture: $600 Furniture: $420 Furniture: $220
contributio
Accessories: $40 Accessories: $20 Accessories: $10
n margin

Total
 Own brand E-commerce Bargain market
revenue

Total gross
profit
2012/13

Add lease: Add training: $50,000 See approved budget

Additional
$1,000,000 Add online store (no change in fixed
fixed costs
Add labour: development: costs)
$500,000 $100,000
Add plant Add new plant and
(depreciation): equipment
$500,000 (depreciation):
$150,000
Add labour: $250,000
Add reconfiguring of
warehouse/office:
$50,000

Total net
profit
2012/13

Profitability index figures for calculation

Own brand E-commerce Bargain market
Cash flow 2012/13 (Use gross profit) (Use gross profit) (Use gross profit)
Opportunity cost 8% 8% 8%
Present value of
future cash flows
Present value of (Use total fixed (Use total fixed (Use total fixed
initial investment costs) costs) 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.

Available resources and costs

Resources Costs
Additional staff $25,000 year average Additional staff costs:

Plant and equipment Plant and equipment costs:

● Delivery trucks
depreciation
($20,000 each)
● Forklifts ($10,000 each)

Promotional costs $500,000

Website developers Contractors ($2,000/day) Website development cost:

Staff training $ Online customer service Staff training cost:

training $3,000 per staff member

Management change $3,000 each Management and leadership

leadership training for training cost:
store managers and
team leaders
Warehouse and office Reconfiguration cost:
reconfiguration

Total