Outdoor-lifestyle retailer Essay

Executive outline BBQfun testament be the leading outdoor-modus vivendi retailer, catering to the growing motivation for furnishing everywherebold and renovated d rise upings in the greater Brisbane area. The diverseness straits of BBQs, outdoor furniture and BBQ main courseories go away position BBQfun as best inclass for outdoor-lifestyle retailing. BBQfun forget reinvent the way mess shop for outdoor-lifestyle products. BBQfun entrust build its reputation on murderering the fullest compartmentalization of products possible in our elect fields, incorporating both topical anesthetic and imported safes with products sell on lax to manage long- shape earnings throws. Our after gross revenue service and 3 division batten downs will find traction with a securities industry dominated by low- fictional character. Situation Analysis BBQfun is close to move into its fifth year of operation.Te initial rollout of livestocks has been well received, and selling is toda y critical to its continued success and future profitability. The entrepot crannys wide-ranging outdoor-lifestyle items on easy to manage redressment terms and supplies a three year guarantee on every item sold. The basic market need is for quality, fashionable and unique outdoor-lifestyle items that caters to the house- soaring needs of our market. mart Summary BBQfun adopt got good study but intimately the market and knows a great assume more or less the common attributes of our most prized and devoted guests. BBQfun will leverage this instruction to get around understand who is served, their specific needs, and how BBQfun can better communicate with them.Market Demographics Accessibility. The patron can gain easy access to the store with minimal wait. guest service. The patron will be impressed with the after gross gross sales service and Guarantees. Competitive pricing. both products/services will be competitively priced relative to equal high-end outdoor- lifestyle lines. Above any, BBQfun believes that easy to access stores with long choices in our chosen fields, that are sold on an easy to manage payment picture with a three year guarantee are the spots to our nodes needs and wants.Market TrendsThe market hack for outdoor-lifestyle stores is headed toward a more(prenominal) educate and informed guest. The outdoor-lifestyles patron today relative to yesterday is more sophisticated in a number of antithetic ways. Item quality. The taste for high-quality items is increasing as clients are learning to care for the qualitative differences. Unique. Our patrons appreciate the opportunity to include outdoor-lifestyles in their home that stand out from the business deal produced and sold low quality items. Selection. People are demanding a bigger choice of choices, they are nolonger accepting a throttle offer in outdoor-lifestyles. The reason for this trend is that within the last geminate of old age there has been an e xplosion of media in the form of TV shows and mags that gravel promoted foreign and different outdoor-lifestyles.Our patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated patron in larger city markets such as Sydney or Melbourne where there has been more choices available. BBQfun strongly believes that customers are more interested in turn over of products, after sales service and easy to manage payments than any other issues. These are the reasons that they will shop with us and become loyal patrons. Technological educatements with the broadband rollout across greater Brisbane and Australia is opening up evidential opportunities for internet shopping and for providing information for our customers about our product range.Market offsetIn 2008, the National outdoor-lifestyle market reached $300 million dollars. Outdoor lifestyle sales are estimated to grow by at least 6% for the next few years. This product can be attributed to several different factors. The greater fluid household income from the two income families, the greater availability of low-priced and interesting quality imports with the high value of the Australian dollar and the trade by popular TV shows like Homes Beautiful and Better Outdoor-lifestyles. deliveranceBased on economic forecasts, BBQfun assumes that interest rates are staying energise and so will have no affect on disposable income. The said(prenominal) assumption is made about employment levels, where BBQfun assumes that unemployment levels remain the same at 4.7%.PoliticalFrom research carried out, BBQfun identified that the Government focus and furiousness in future legislative direction will be about growing the economy and population base which BBQfun sees as a constructive for their business model. There is as well as a strong push for environmentally sound business practices in the le gislative framework. BBQfun, as business operating(a) in Australia, will abide by the law in all its dealings and comply with all legislation that impacts on its business activities. mug up AnalysisThe undermentioned SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing BBQfun.Strengths Excellent staff who are highly skilled and knowl shoreable about outdoor-lifestyles. Great retail space that is bright, functional and efficient for a moneymaking(prenominal) urban district. High customer committedness among repeat customers. Assortment offerings that exit competitors offerings in quality, range and accessibility.Weaknesses A limited selling figure to develop speck awareness due to the lack of critical mass and store cover. The struggle to continually fund the growing long term quittance plans moderaten out by our customers.Opportunities A growing market in a high growth area with a significant per centum of the target market still not aware of BBQfuns offer. cast up sales opportunities outside of our target area greater Brisbane.Threats Competition from topical anesthetic independents that can reduce prices as owner operators lower than our staff put to work stores. Competition from National chains moving into the Brisbane market. A slump in the economy reducing customers disposable income spent on outdoor-lifestyles.CompetitionNational Competition The Yard has a limited selection but significant depth. All Australian made. No significant marketing or promotion. The price picture is high, but the quality of products are rather good. not in Brisbane. Mostly in Sydney and Melbourne. BBQs R us Broad range of outdoor-lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on established markets. industrial-strength in the replacements segment. Not in Brisbane. Mostly in Melbourne and Adelaide. Outdoorz Large trading operations of only a few stores per city. Mass markets outdoor lifestyles at good value prices. No imported goods. Extensive advertising. Low to medium quality. Not in Brisbane. Strong in the replacement segment rather than in the raw and refurbisheddwellings. Strong in other capital cities.Local Competition All independents. These stores are owned by individual owner operators. Ranges vary agree to owner preferences. Very little imports. Mostly retailing Australian construct goods. Collectively their average item sale price is $250, have a market share of 48%, and are growing at about 8% per year. BBQfun do not see the competitors changing their marketing schema or product offer in the foreseeable future.Growth and package AnalysisNew dwellings growth in potential customers 10%. Estimated Brisbane customer numbers in 2010 is 95,000. Renovations growth in potential customers 7%. Estimated Brisbane customer numbers in 2010 is 35,000. Replacement growth in potential customers 5%. Estimated Bris bane customer numbers in 2010 is 120,000.Service OfferingBBQfun has created a outdoor-lifestyles range of retail products that are differentiated and gilt-edged to competitors. Customers can see the quality of the product as it is displayed in the stores. The following are characteristics of the product1. BBQfuns credit offer is backed by a top form bank.2. Imported products puff up 33% of the assortment.3. The 3 year guarantee is unique in the market place.4. Broadest possible range in chosen fields.BBQfuns prides itself on providing service that is on par if not better than any of the local anaesthetic anaesthetic independent stores and far in excess of the topic chains. BBQfun will ensure that all aspects that are involved in the speech of satisfaction to the customer will work using an integrated approach. At a GlanceThe Prototype BBQfun Store Location a commercial, suburban neighbourhood, or urban retail district. Design bright and functional. Size 1,000 to 1,500 m2. Empl oyees 15 to 20 full time plus casuals Types of transactions 60% cash, 40% on long term repayment plan.Keys to SuccessLocation.BBQfuns grade selection criteria are critical to success. Scott Bremmer, former partner of an international chain, helped us identify the following site selection criteria New dwelling populations. obtain patterns requiring easy access. Customer car parking counts.Critical IssuesBBQfun is still in the speculative stage as a possible franchise plan or joint venture. Its critical issues are Committed to sales growth which allows for greater options in import assortments and in reduced price with book of account buys. This will promote our uniqueness and contribute to improved profit margins. brood to finance the easy manage long term repayment plan for customers. Locate in easy access sites close to the growing markets in newborn dwelling development. Marketing Strategy BBQfuns advertising budget is set at $250,000 for the year.The advertising program will target local letter-box drops, radio and magazines. BBQfuns will do direct mail and local advertising, with coupon inserts in the BrisNews magazine likely to be the most happy of the campaigns. BBQfun will try to get denominations 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.MissionBBQfuns mission is to provide customers with the most extensive assortment of quality outdoor-lifestyle products available in the market. Our after sales service is twinkling to none supported by our easy to manage long term repayment plans which make unique, imported and high quality outdoor-lifestyle affordable to all. BBQfun inhabit to attract and maintain outdoor-lifestyle customers wishing to acquire products that give our customers pride in their homes. Our services will exceed the expectations of our customers.Marketing Objectives1. Increase sales from $15million per ye ar to $20million per year in the nextthree years 2. Increase our loyalty customers list from 10,000 to 16,000. 3. Establish brand recognition in Brisbane so that at least 2 in 3 people recognise our brand in a random survey taken in 18 months time.3.3 Financial Objectives1. A double-digit growth rate for each future year.2. stamp down the overhead per store through disciplined management of expenses.3. Continue increase our gross profit margins.Target MarketingThe market can be segmented into three target populations New dwellings generally want to purchase entire suites. Typically shopped as couples. Price sensitive to a point but co-ordination is the highest priority. Renovations demand for high quality and different items. Unique and exotic over rides price concerns. Replacement basic functional products that replace and scummy or worn item. Single shopper. Cheap price required. The BBQfun customers are broadly aged between 20 and 50, making up 50% of the new and renovate d dwelling market. Outdoor-lifestyle stores have been very sure-fire in stand alone, extensive car park access, close to new housing estates being established. These areas have families who have household disposable incomes of over $40,000 per year. Combining several key demographic factors, BBQfun arrives at a profile of the primary customer as follows Sophisticated people who are house proud. Shoppers who will drive to an easy to access store. A customers who requires payment plans to spread their commitment over an prolonged period. Renovators and new home builders 20-50 year oldsPositioningBBQfun will position itself as a broad assortment, quality, unique outdoor-lifestyle retailer. Brisbane consumers who appreciate high-quality and uniqueness will complete the value and unique offerings of BBQfun. Patrons will be single as well as families, ages 20-50. BBQfuns positioning will leverage their competitive edge Product. The product will be wide ranging, quality and unique. I t offers the house proud customer a differentoption from the cheap mass produced offer prevalent in the market Service. BBQfun offer the only 3 years guarantee in the market. Our easy play payment scheme is just what our mortgage repaying customers welcome. Our experienced staff can assist with product fellowship second to none in the industry. By offering a superior service in range and uniqueness, BBQfun will excel relative to the rival and achieve our objectives.Strategy PyramidsThe single objective is to position BBQfun as the promethium outdoor-lifestyles store in the greater Brisbane area, commanding a majority of the market share within five years. The marketing strategy will sample to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals. The message that BBQfun will research to communicate is that BBQfun offers the widest, most exotic, easy access outdoor-lifestyle products in Brisbane. This message will be communicated through a mixture 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.The last method for communicating BBQfuns message is through a grassroots PR campaign. This campaign will invite people from Brizzy for luncheon to get articles written about BBQfun into the news. Because of this level of effectiveness and low/ zipper cost, BBQfun will work hard to get press in the Brizzy. BBQfun also believe that the local patrons far prefer to receive information from the store via flyers in the letterbox.Marketing MixBBQfuns 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 push value over cheap and back this up with a 3 year guarantee. D istribution. BBQfun products will be distributed through a chain of 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. Customer Service. BBQfuns philosophy isthat whatever needs to be done to make the customer happy must occur, this investment will pay off with a fiercely loyal customer base who is extremely candid to their friends with referrals.Product developmentIt is envisaged that new products will be developed on a regular basis in line with changes in customer taste which is targeted at every 12 months. The plan for product scrutiny is to engage market research firms. By getting feedback from these firms, changes can be made or products ca nned so that only tested and be products make it onto the store assortment list.Marketing ResearchDuring the initial phases of the marketing plan development, several focus sort outs 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 pedigree of market research that is dynamic is a feedback mechanism based on a suggestion card system in store. The last credit of market research is competitive analysis/appreciation. BBQfun management will continually visit local outdoor-lifestyle stores for two reasons.The first is for competitive analysis, providing BBQfun with timely information regarding other stores service offering. The second reason is that local business owners, are often part of an informal fraternal disposal where they support each others business. Financials, Budgets, and Forecasts This section will offer a financial ov erview of BBQfun as it relates to the marketing activities. BBQfun will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.Break-even AnalysisThe Break-even Analysis indicates that $1.1 million in sales per year will be needed to reach the break-even point. stiff costs are estimated at $150,000. Variable costs are 40% of sales, therefore sales of $1.0 million will be sufficient to pay for the fixed and variable cost.Sales ForecastThe first year of the plan will be used to get the cafe up and running. By year two things will get busier. Sales will stepwise increase with profitability being reached by the beginning of year two. double-dyed(a) profit isanticipated at 50%. Ongoing sales call will be to use the services of Cannons Consultants who will advise on all aspects of the marketing function that BBQfun will be engaged with. Cannons will also be given access to the marketing cost data so that they can periodically exam ine and confirm marketing costs in line with industry benchmarks. They have incessantly been the preferred consultants because they are locally based unlike the national group of consultants, Brown & Holingsworth, based in Melbourne.