Interpret Trends free essay sample

From this I can conclude that those who live in the Brisbane city area earn a lot more than those in the Sunshine city area. The difference in average wage is $41056. 19. This is a lot of difference between the two cities. As well as looking at the average earnings, you can also see the average; customers are willing to spend in these different areas. Those who live in Brisbane city are willing to pay an average of $15125. 53 compared to an average of $5099. 39. This is huge difference of $10026. 14. I can conclude from these results that those living in the Brisbane City area are much more likely to spend more in store. This will help me when pricing my products as it will allow me to adjust the prices to ensure that I am targeting consumers within the affordable price range for them. This will hopefully increase my overall sales. Market Share | The Yard| BBQ’s R us| Outdoorz| BBQfun| 009 of 2000 BBQs sold in Brisbane| -| 500| 500| 1000| 2010 of 250 BBQ’s in Brisbane| -| 75| 75| 100| From the pie charts above, you can see that in 2009 and 2010, BBQfun was the leading outdoor retailer in terms of number of BBQs sold. In 2009, BBQfun sold 50% of the BBQs sold however this dropped in 2010 to 40%. This indicates that there is a problem with the amount of BBQs being sold and that BBQfun has lost some of its market share. This is probably due to a need in product development in terms of the BBQs however the fact that customers are leaving the store as well indicates that drastic improvements need to be made. Sales Performance | 2007| 2008| 2009| 2010| Total Sales $| 5,000,000| 8,000,000| 10,000,000| 11,000,000| From the results above, you can see that since 2007, the sales performance of the company has continuously increased. Starting at $5,000,000 in 2007, the first 2 years saw a 100% increase. This has significantly dropped from 2009-2010 however, with only an additional $1,000,000 being made. Linking in with the market share results, this indicates that there is probably a huge room for product development as well as the company needing to improve overall as well! Qualitative analysis Currently, BBQfun have 3 main competitors: The Yard, BBQ’s R us and Outdoorz. The Yard is a great competitor as they sale high end quality, Australian products however their stores are not located in Brisbane which makes them less of a local threat. The other stores however have either cheap or no imported good and are gaining strength in the Brisbane market. I have created a questionnaire to ask my customers to find out what makes them return to our store and continue to purchase our products opposed to our competitors. Which store do you prefer purchasing products from? BBQfun BBQs R us Outdoorz 2. What makes you continue to visit our store opposed to the competitors? 3. What do you prefer about the other stores in comparison to ours? 4. What do you think of our customer service and in which ways can we improve? 5. What do you think about the quality of our products? 6. What are the favorite products that we offer? 7. How do you feel about the location of our store? Easy accessible Satisfactory Hard to access 8. Does having a guarantee longer than our competitors, influence you to come back to us? I asked these questions to 100 of staff in store on a Saturday. The sample I used was an opportunity sample as I used the first 100 people I could talk to. The feedback that I received from the interviews was the following: * Our biggest competitors were reasonably even in terms amount of people prefer purchasing products from them. 60% of people did say that they prefer purchasing from our store however this could be a biased view as they were in our store at the time. The biggest strength of other companies seemed to be that Outdoorz offered an excellent customer service. Apparently they offer free home delivery, help packing products and always have enough, friendly staff employed to help with all enquires. This is something where we can look to improve. * Our customer service is perceived as great however the main improvements I gathered were that we need to have more staff during busy periods. This is something to definitely take action on so that we can offer a higher quality service to all customers. * The quality of our products was perceived as very high. 0% of our customers were extremely happy with our products. Also, one of the main reasons consumers continually buy from us instead is due to the 3 year guarantee that we offer opposed to other stores. This is something we are very happy with and will continue to monitor and provide. * The favorite products that we mentioned were the Outdoor Furniture collection. 50% were happy with the quality and price and broad range of products that we offer. * I also found that the location of our store is a big key to our success and gives us an edge over our competitors. Due to us having a big customer car park and being easily accessible, we have an edge over our competitors which we will continuously monitor to ensure this stays the same. Overall, from this feedback, we are doing fantastically well however if we improve on other areas such as customer service, I’m sure that our market share will increase as well as our sales and profit! Opportunities and Threats Opportunities * A growing market in a high growth area with a significant percentage of the target market still not aware of BBQfun’s offer. * Increasing sales opportunities outside of our target area – greater Brisbane Threats Competition from local independents that can reduce prices as owner operates lower than our staff-run stores. * Competition from national chains moving into the Brisbane market. * A slump in the economy reducing customer’s disposable income spent on outdoor lifestyles. Assessment Task 2: Analyse qualitative data – report BBQfun†™s marketing strategy is looking at utilizing an advertising budget of $250,000 for the year. They are looking to target local letter box drops, radio and magazines. BBQfun will use direct mail and local advertising, with coupon inserts in the BrisNews magazine likely to be the most successful of the campaigns. There will be no discrimination or unethical practices. Occupational Health and Safety Act This ensures that the customers and employees are always looked after and provided a safe environment to work or shop in. Kelly Marie Vidler S10268 Interpret market trends and developments Assessment Task 1: Draft Report Kelly Marie Vidler S10268 Interpret market trends and developments Assessment Task 2: Analyse qualitative data- report Kelly Marie Vidler S10268 Interpret market trends and developments Assessment Task 3: Market analysis report and presentation