Bsbmkg507

Student Assessment Guide

BSBMKG507

Interpret Market Trends and Developments

Version 1.0

November 2016

Level 2, 25 George Street, Parramatta, NSW 2150

Phone: +61 2 9633 1222 Fax: +61 2 9633 1888

Email: info@australisinstitute.nsw.edu.au Web: www.australisinstitute.nsw.edu.au

ABN 17 120 701 911 | RTO ID 91630 | CRICOS ID 03173K

Assessment Submission Sheet Course TitleDiploma of Marketing and Communication Course CodeBSB52415Unit TitleInterpret Market Trends and DevelopmentsUnit CodeBSBMKG507Version1.0Created on 2016 Please read and sign this assessment coversheet and submit it together with your assessment to your Assessor by the due Student NameStudent IDAssessorDate DueDeclarationI affirm that all work submitted in this assessment is my own work and does not involve plagiarism or teamwork other than that authorized for any particular assessment activity. I have read the Student Assessment Handbook under Section 2 Assessment Guidelines and understood the serious consequences in case this work is found plagiarized.Student Signature:Date Signed:____/____/____ Assessor Use Only First SubmissionDateRe-submissionDateRe-assessmentDate|_|S|_|NYS___/___/____|_|S|_|NYS___/___/____|_|S|_|NYS___/___/____ Feedback: Trainer/Assessor’s Comments:I hereby confirm that I have been given feedback from the Assessor and I agree with the assessment outcome.Student SignatureAssessor SignatureDate___/___/______ Student Feedback on Assessment: Would you like to make any comments about this assessment? Assessment ReceiptStudent NameStudent IDCourse Code & TitleDiploma of Marketing and Communication BSB52415Extension GrantedYes No Unit Code & TitleInterpret Market Trends and Developments BSBMKG507Date Received___/___/____First Submission Re-submission Re-assessment Received by Table of Contents Assessment Information 1 Assessment Event 1 – Knowledge Questions 3 Question 1 3 Question 2 4 Question 3 4 Question 4 4 Question 5 4 Assessment Event 2: A & A Coffee Simulation 6 Task 1: Interpret Trends and Market Developments 6 1.1 Use statistical analysis of market data to interpret market trends and developments 6 1.2 Analyse market trends and developments for their potential impact on the business 6 1.3 Use quantitative data analysis to interpret comparative market data 7 1.4 Perform data analysis to review business performance 7 1.5 Analyse competitors to identify potential opportunities and threats 7 Task 2: Analyse Qualitative Results 8 2.1 Analyse performance data from all areas of the business 8 2.2 Identify over-performing and under-performing products 9 2.3 Forecast market needs using qualitative visionary forecasting method 9 Task 3: Report on Market Data 10 3.1 Prepare visual aids 10 3.2 Report on analysis of market data 10 3.3 Finalise the Market Analysis Report 10 Appendix A: A & A Coffee Simulation 11 A & A Coffee Simulation Background 11 Simulation Phases 11 Your Role in the Simulation 12 Phase 1: 12 Phase 2: 12 Phase 3: 12 Assessment Conditions for the Observation 13 Appendix B: Observation Check Sheet 14

Assessment Information

Welcome to your Student Assessment Guide for BSBMKG507 Interpret Market Trends and Developments. This Guide provides you with information on the assessment particularly what you have to do and to what level of performance.

This assessment has the following two events:

Assessment Event 1 – Knowledge Questions

There are five questions that will provide us with evidence of your general knowledge of internal and external sources of information relevant to forecasting market trends, software applications that are commonly used in quantitative and qualitative analysis, statistical concepts, methods, techniques and reporting formats, and legislative context within the marketing space.

This assessment is completed in your own time and by a submission date provided by your Assessor. You may use support material in the development of your responses, but you must indicate the source. In addition, you must not ‘cut and paste’ content from your source, rather, use your words, unless it is a direct quote.

Assessment Event 2 – Simulation: A & A Coffee

You will complete a number of tasks that will provide us with evidence of your skills with analysing quantitative data and qualitative information, compiling a report based on your analysis, and documenting future marketing strategies to contribute to the ongoing development of a case study organisation. These tasks will be based on your role of Marketing Intelligence Officer in a simulation with A & A Coffee, a chain of retail cafes that operates nationwide across Australia.

To complete the Simulation, you will need to refer to the following resources:

AUD vs USD data

Time series data which shows the relationship between Australian dollar (AUD) and the US dollar (USD). You will use this data in Task 1.1 to identify the trend between the two currencies.

Global Coffee Price data

Time series data which shows the change in coffee prices, globally. You will use this data in Task 1.1 to discover the economic trends amongst various coffee types.

ABS Coffee CPI data

Time series data which shows price trends for coffee, tea and cocoa products in Australian capital cities. You will use this data in Task 1.1 to identify the price variations over time for similar product lines.

SIMRA report

Report generated by Statistica International Marketing Research Agency (SIMRA). You will use this information in Task 1.4 when analysing qualitative and quantitative information about the local coffee industry.

Competitor Market Share

This data show the market share performance of current competitors. You will use this data in Task 1.5 to identify the potential opportunities and threats.

PoS Data from Stores

This is the register data from the stores. You will use this data in Task 2 to examine the overall business performance for each product and store.

Reporting Standards

This is the organisational style guide on writing reports. You will refer to this document when generating your Market Analysis Report and presentation aids.

Remember, you do not type your responses in this Student Assessment Guide, but use the Student Assessment Workbook, which is a separate document. This document is simply a guide to explain what you are required to do, and by doing so, this will assist you to perform at your best.

Please note that your responses for both assessment events can (where appropriate) use dot point format. See below for an example of a dot point response and a full sentence response.

Dot point format

Presentation Plan includes the following:

· outcomes

· needs of the audience

· context.

Full sentence format

When you are preparing for a Presentation, there are a number of tasks that must be carried out. These are; listing the outcomes that you want to achieve, followed by the identification of the needs of your audience. When you have completed these two tasks, you then check on the room you will be conducting the simulation in etc.

Performance required

· complete all of the questions and tasks listed in the Student Assessment Workbook

· meet all the requirements listed in this Student Assessment Guide

· your responses to the questions and tasks must be relevant, accurate and specific

· submit your completed Student Assessment Workbook to your Assessor within the set timeframes

· your work must be in your own words

· where you use an external source of information, you must provide citation.

Please be aware that your Assessor is here to provide you with the necessary support throughout the assessment process. If you have questions, then contact them for guidance.

Assessment Event 1 – Knowledge Questions

The information contained in this assessment event lists the questions that you will need to develop a written response. These questions are theoretical and provide evidence of your understanding of sources of information for market forecasting, software applications used in data analysis, statistical analysis used in marketing, and the legislative requirements within the marketing industry. Each question includes the requirements which indicate what you have to do and the depth of your response to achieve a satisfactory result.

Question 1

In the table below, outline internal and external sources of information relevant to forecasting market trends.

R 1. Identify whether the source is internal or external

R 2. provide three examples where each can be sourced

R 3. explain how each relates to forecasting marketing trends

R 4. word count is approximately 50 words per source.

Source of information

Internal/External

Where can be sourced

How it relates to forecasting

Business and strategic objectives

Marketing and Business performance

Comparative market information

Changes in technology

Demographic changes

Social and cultural factors

Economic trends

Government activities and legislative changes

Industry trends

Supplier data

Question 2

Outline the legislative and regulatory context that impact marketing operations.

R 1. list five legislation and five codes relevant to marketing operations:

· correctly write the name and date of each item

· these names and dates must be current

R 2. for each list item, provide a summary of key provisions on marketing operations

R 3. word count is approximately 25 words per summary.

Question 3

Outline industry bodies that regulate the marketing space in Australia.

R 1. list five industry bodies:

· correctly write their name

· these bodies must be current

R 2. for each body:

· provide reference to its corporate website

· explain its main purpose

· list an example of code, standards or guidelines it currently administers

R 3. word count is approximately 25 words per body.

Question 4

Identify and outline software applications that are commonly used in quantitative and qualitative analysis.

R 1. identify three software applications

R 2. provide three strengths and three limitations of each

R 3. word count is approximately 50 words per application.

Question 5

Using the table below, outline statistical concepts, methods, techniques and reporting formats commonly used in marketing.

R 1. provide an example of how each table item can be used in market analysis

R 2. word count is approximately 25 words per item.

Statistical concepts, methods, techniques and reporting formats

Example

conversion rate of leads to sales

measures of central tendency

measures of dispersion

correlation and regression analysis

net response rate

normal distribution probability curve

sampling

speed of response curve

frequency grids

lifetime value of customers

net present value of customers

Assessment Event 2: A & A Coffee Simulation

In this assessment, you will undertake a number of tasks associated with documenting a Market Analysis Report for A & A Coffee, an Australian café chain. In this simulation you will perform the following actions:

· apply statistical and qualitative analysis techniques to analyse a set of qualitative and quantitative data

· drill down into the datasets and comparative market information, and mine out the patterns in market trends and developments, organisational business performance and competitor performance

· present the report to key stakeholders.

Please ensure that you familiarise yourself with this set of requirements that underpin this simulation. This includes understanding the background of the simulation and the criteria you will be assessed on. These are located in the Appendix of this document.

Task 1: Interpret Trends and Market Developments

In this task, you will analyse the quantitative and qualitative datasets provided (as separate attachments) to you using relevant quantitative and qualitative data analysis methods. You will then document your findings in their Market Analysis Report.

1.1 Use statistical analysis of market data to interpret market trends and developments

R 1. apply appropriate statistical analysis techniques on the ‘AUD vs USD’ data:

· visualise the trend for the Australian Dollar and US Dollar since 2005 to date

· in approximately 50 words, interpret how this trend impacted the organisation’s cost base

R 2. apply appropriate statistical analysis techniques on the ‘Global Coffee Price’ data:

· calculate the AUD values for Mild Arabica and Robustas coffee types

· visualise the economic trend for each coffee type since 2005 to date

· in approximately 50 words, interpret how this trend impacted the organisation’s profitability

R 3. apply appropriate statistical analysis techniques on the ‘Coffee CPI’ data:

· visualise the trend in price changes for the whole of Australia since 2005 to date

· visualise the trend in price changes for each state of Australia since 2005 to date

· interpret these trends in approximately 100 words

R 4. your visualisations must conform to the Reporting Standards.

1.2 Analyse market trends and developments for their potential impact on the business

R 1. discuss how the market trends and developments affected A & A’s business performance

R 2. this discussion must be in line with your findings in Task 1.1

R 3. word count is approximately 200 words.

1.3 Use quantitative data analysis to interpret comparative market data

R 1. using the ‘Counts of Business’ data:

· calculate the total number of businesses operating at the end of financial year 2014

· calculate the totals for each state given in the data set

· calculate the totals for the whole of Australia

R 2. using the ‘Australian Demographic Statistics’ data:

· calculate the total number of estimated resident population at the end of financial year 2014

· calculate the totals for each state given in the data set

· calculate the totals for the whole of Australia

R 3. using the above findings:

· calculate the number of café businesses per 10,000 residents

· calculate the national average for these residents

R 4. plot the central tendency which must show the:

· number of café businesses per 10,000 residents for each state

· national average distributed among each state

· your visualisations must conform to the Reporting Standards

R 5. interpret your visualisation:

· summarise the concentration of competitors in each state

· correlate this output with the trends you identified in Task 1.1 to draw conclusions

· word count is approximately 150 words.

1.4 Perform data analysis to review business performance

R 1. analyse the SIMRA Report and interpret the quantitative and qualitative comparative market information:

· review the following sections:

· Background

· Coffee Market Outlook in Australia

· Australia’s Health and Wellbeing

· Interview with the Focus Group

· summarise your analysis including:

· a discussion on the current outlook of the coffee market

· a snapshot of the interview with the focus group

· an insight on how and why this outlook has impacted A & A Coffee’s business performance

R 2. word count is approximately 300 words.

1.5 Analyse competitors to identify potential opportunities and threats

R 1. analyse the ‘Competitor Market Share’ data:

· plot the market share of each competitor between 2013-2015 (inclusive)

· your visualisations must conform to the Reporting Standards

R 2. analyse the SIMRA Report:

· review the ‘Competitor Product Market Performance’ section

· list two opportunities and two threats

R 3. in approximately 250 words, write a summary based on your analyses, including:

· an explanation on how A & A Coffee can benefit from these opportunities

· a counterattack strategy for each threat

· interpretation of your visualisations

· how the competitors have impacted A & A’s performance.

Task 2: Analyse Qualitative Results

In this task, you will analyse the datasets provided to you and mine out A & A Coffee’s overall business performance. You will then analyse the results and suggest a strategic pathway to remain competitive in the market using a qualitative forecasting method. Finally, you will document your findings in your Market Analysis Report.

Background:

A & A Coffee Marketing Manager believes that the company has a strong brand name in the market and doesn’t need to invest too much on a variety of marketing activities. Also, he relies on his ‘gut feeling’ rather than using ‘big data’ analytics.

With that in mind, A & A Coffee has been undertaking the following marketing activities, nationwide, within the 2010-2015 timeframe:

· tradeshows

· advertising on billboards

· coupons in the ‘Entertainment Book’ (http://www.entertainmentbook.com.au/).

2.1 Analyse performance data from all areas of the business

In this task, you will use the ‘PoS Data from Stores’ time series data.

R 1. calculate the performance of all stores in terms of total revenue

R 2. prepare a table that summarises the performance of each store by year [2010-2015] inclusive:

· must be in a cross-tabular format

· consolidate the quarterly figures by year

· show the grand totals of each store by year ([2010-2015] inclusive)

· show the grand totals of all stores by year ([2010-2015] inclusive)

· list the stores from the highest performing to the lowest

R 3. plot the performance trends:

· chart ‘Top 11 – highest revenue generating’ stores by year

· chart ‘Bottom 11 – lowest revenue generating’ stores by year

· your visualisations must conform to the Reporting Standards

R 4. analyse these performance trends:

· identify the three stores that generate the highest revenue

· identify the three stores that generate the lowest revenue

· identify the three stores with the highest overall jump

· identify the three stores with the highest overall slump

· compare the performance of the best and worst performing stores

R 5. write a summary based on your analyses:

· draw insight on the success of marketing activities

· suggest three strategies that A & A Coffee should consider to improve overall performance

· explain how each activity would be helpful to generate more leads

R 6. word count is approximately 400 words in total.

2.2 Identify over-performing and under-performing products

In this task, you will use the ‘PoS Data from Stores’ time series data.

R 1. calculate the performance of all products in terms of total revenue

R 2. prepare a table that summarisea the performance of each product by year [2010-2015] inclusive:

· must be in a cross-tabular format

· consolidate the quarterly figures by year

· show the grand totals of each product by year ([2010-2015] inclusive)

· show the grand totals of all products by year ([2010-2015] inclusive)

· list the products from the highest performing to the lowest

R 3. plot the performance trends:

· your chart must show the performance of each product by year ([2010-2015] inclusive)

· your visualisation must conform to the Reporting Standards

R 4. analyse these performance trends:

· identify the three primary over-performing products

· identify the three primary under-performing products

· compare the performance of the best and worst performing products

R 5. interpret these trends:

· draw insight on their earlier analysis

· suggest two products to be withdrawn or redeveloped

· suggest two products to be focused or further enhanced to increase profitability

· provide your rationale for their suggestions

R 6. word count is approximately 350 words in total.

2.3 Forecast market needs using qualitative visionary forecasting method

R 1. summarise:

· current market trends and developments

· A & A Coffee’s current standing in the market

· three key external drivers that have a direct or indirect impact on A & A Coffee’s current standing

· the impact of these external drivers on A & A Coffee’s business performance

R 2. based on your summary, write a ‘Recommendations’ section in your report:

· forecast three future market needs

· provide three strategies A & A Coffee should consider to meet these needs

· three possible consequences if A & A Coffee does not undertake these strategies

R 3. your recommendations must be in line with your earlier findings

R 4. word count is approximately 350 words in total.

Task 3: Report on Market Data

In this task, you will plan and deliver an interactive presentation with two key stakeholders of A & A Coffee to present your findings in the Market Analysis Report.

3.1 Prepare visual aids

R 1. prepare visual aids for their presentation including the following:

· Cover Page – included full name, title, date, and version number

· Introduction – included a discussion on the background to the business issue (one slide)

· Body Part 1 – included:

· trend for the Australian Dollar and US Dollar (one page, chart from Task 1.1)

· trend for the global coffee prices (one page, chart from Task 1.1)

· trend for the consumer price index (one page, chart from Task 1.1)

· the impact of the market trends and developments on business (one page, Task 1.2)

· concentration of competitors by state (one page, Task 1.3)

· qualitative analysis of comparative market information as a basis for reviewing business performance (one page, Task 1.4)

· market performance of current competitors (two pages, chart from Task 1.5 and opportunities and threats).

· Body Part 2 – included:

· success of marketing activities (three pages, chart from Task 2.1, the three suggested marketing activities, and the chart that shows the overall store performance)

· over-performing and under-performing products (two pages, chart from Task 2.2 and suggestions)

· forecasts and recommendations (two pages, Task 2.3)

· Conclusion – included two slides wrap up

R 2. proofread the visual presentation and ensure compliance with the Reporting Standards

R 3. word count is not critical but you must meet the minimum page requirements.

3.2 Report on analysis of market data

R 1. present your Market Analysis Report to the two A & A Coffee stakeholders:

· use the visual presentations prepared in Task 3.1

· cover all the sections

R 2. during the session:

· request feedback to improve their report

· note this feedback

R 3. for additional requirements, refer to the Observation Check Sheet in Appendix B

R 4. the duration of this interactive session is an hour.

3.3 Finalise the Market Analysis Report

R 1. review your Market Analysis Report:

· modify your report in light of the feedback provided by the two stakeholders

· this modification must align accurately to the feedback collected

R 2. word count is not critical.

Appendix A: A & A Coffee Simulation

A & A Coffee Simulation Background

A & A Coffee is a chain of retail cafes, wholly owned by A & A Group. A&A opened its first store in Hornsby, NSW, in 1992, and now operates 22 stores along the five states of Australia.

A & A Coffee specialises in selling superior Robusta and Arabica coffee beans which are sourced from world’s top quality coffee producers, including El Salvador, Colombia, Kenya and Indonesia. The company has its own coffee roastery facilities which are equipped with in-house roasting equipment.

Over the past two decades, A & A Coffee has developed a loyal client base and, unlike many cafes, has long-serving staff members. A & A’s management is fortunate to have a high degree of control over the product line, menu, business model, and store presentation. Unlike some of its competitors, A&A has never sought to sell franchises, and so all store managers report directly to Head Office.

20 years after opening its first store, A & A management has decided to analyse the market to gather current information which then will be injected in to the organisation’s strategic marketing plan. The motivation behind this is to establish a solid groundwork based on market facts and remain competitive in the market.