Case Study Of Bbqfun

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BBQfun was established in 2009 by current CEO, Pat Mifsud. BBQfun offers an extensive product range, incorporating both local and imported goods. Since 2010, 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 2012 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…show more content…
New marketing opportunities impact

| Own brand | E-commerce | Bargain market | Sales volume (units) | BBQ: 7200 | BBQ: 12600 | BBQ: 10000 | Sales volume (units) | Furniture: 3120 | Furniture: 5040 | Furniture: 5000 | Sales volume (units) | Accessories: 40320 | Accessories: 63360 | Accessories: 52500 |

| Own brand | E-commerce | Bargain market | Price | BBQ: $600 | BBQ: $620 | BBQ: $500 | Price | Furniture: $850 | Furniture: $880 | Furniture: $650 | Price | Accessories: $50 | Accessories: $55 | Accessories: $40 | Unit contribution margin | BBQ: $500 | BBQ: $300 | BBQ: $200 | Unit contribution margin | Furniture: $600 | Furniture: $420 | Furniture: $220 | Unit contribution margin | Accessories: $40 | Accessories: $20 | Accessories: $10 | Total revenue | 8988000 | 15732000 | 10350000 | Total gross profit 2012/13 | 7084800 | 164000 | 3625000 | Additional fixed costs | Add lease $1000000 Add labour $500000 Add plant (depreciation): $500000 | Add training: $50000 Add online store development: $100000 Add new plant and equipment (depreciation): $150000 Add labour: $250000 Add reconfiguration of warehouse/office: $50000 | See approved budget (no change in fixed costs) | Total net profit 2012/13 | 200086 | 1679286 | 1259714

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