BSBMKG501- IDENTIFY AND EVALUATE MARKETING OPPORTUNITIES- 2 ass+ presentation

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BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

BBQfun Operational plan (summary) FY 2016–2017

Objectives: Performance measures Tasks:

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

BBQfun Operational plan (summary) FY 2016–2017

Objectives: Performance measures Tasks:

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

 Health and safety

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

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Note: Information needs to be updated for the present year.

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

Economy

Note: Information needs to be updated for the present year.

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

Note: Information needs to be updated for the present year.

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

Note: Information needs to be updated for the present year.

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

Threats

Note: Information needs to be updated for the present year.

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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

Note: Information may need to be updated for the present year.

● 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

Note: Information may need to be updated for the present year. 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

● 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 marketing opportunities.

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

marketing opportunities.

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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

Note: Information needs to be updated for the present year.

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

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

● 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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Scope The scope of this policy covers all employees and contractors of

BBQfun.

Resources Specific guidance for the implementation of this policy is available

below in the form of FAQs.

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

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Scope The scope of this policy covers all employees and contractors of

BBQfun.

Resources Specific procedures for the implementation of this policy are

provided in employee induction kits.

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)

● 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

6/2015 – Riz Mehra, CFO

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Responsibility Responsibility for the implementation of this policy rests with

employees and management of BBQfun with responsibility for

purchasing resources.

Relevant

legislation etc.

● Privacy Act 1988 (Cwlth)

● Anti-Discrimination Act 1991 (Queensland)

● 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

6/2015 – Riz Mehra, CFO

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.

Assessment Materials BBQfun (simulated business)

BSBMKG501 Identify and evaluate marketing opportunities 1st edition version: 1

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.