Bsbmkg501 assessment 2 answers

Assessment Task 2 BSBMKG501 Identify and evaluate marketing opportunities

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

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Evaluate marketing opportunities

Submission details

Candidate’s name Phone no.

Assessor’s name Phone no.

Assessment site

Assessment date/s Time/s

The assessment task is due on the date specified by your assessor. Any variations to this

arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for

details.

Performance objective

For this task, you will demonstrate the skills and knowledge required to investigate

marketing opportunities and evaluate required changes to current operations.

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

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.

Assessment Task 2 BSBMKG501 Identify and evaluate marketing opportunities

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

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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.

Assessment Task 2 BSBMKG501 Identify and evaluate marketing opportunities

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

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2. Using all the information that you have been provided, fill in the blank spaces (the

shaded boxes) in the BBQfun sales data worksheet in the following order:

a. Forecast the total market potential for the coming financial year.

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 upcoming financial year

b. gross and net profit for each opportunity

c. use numerical analysis or statistical methods to forecast, for example, the

size of potential markets.

4. consider also:

a. impact on growth plans

b. market share

c. knockout factors to rule out opportunities.

Assessment Task 2 BSBMKG501 Identify and evaluate marketing opportunities

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

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5. Assess external factors that may be relevant to each opportunity. Identify

(in outline) all of: