Assessment Task 1

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Student Name: Tshering Phuntsho Student ID: S9990171

Unit Code And Name: BSBMKG609 Develop a marketing plan

Assessment: Assessment Task 1

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Tshering Phuntsho_s9990171_9/3/2019 Page 1

 BSBMKG609 Develop a marketing plan
Assessment Task 1

Contents

Introduction..............................................................................................................................................3
Capabilities and Resource of the Organization........................................................................................4
SWOT Analysis........................................................................................................................................5
Gaps between the Objectives, the Current Capabilities and Resources...................................................6
Opportunity..............................................................................................................................................6
Developing a Marketing Mix Strategy.....................................................................................................7
Marketing Performance............................................................................................................................9
Tactics for Implementing the Strategy...................................................................................................10
Legal and Ethical Requirements Influencing the Selected Tactics........................................................11
Conclusion.............................................................................................................................................12
Reference:..............................................................................................................................................13

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Introduction
Houzit is a chain of homewares stores in Brisbane that specialise in bathroom fittings, bedroom
fittings, mirrors and decorative items. They currently have 15 stores spread across the greater Brisbane
area, with all stores being managed and coordinated from their head office in Milton. Houzit will be a
national retail brand, catering to the needs of home makers with a range of unique, high quality
homewares made accessible to all through our easy to manage payment plan. By 2020, Houzit will
have a significant retail presence in homewares in every Australian capital city, starting with 15 stores
in the greater Brisbane area and growing to 100 Australia wide. Target Market Houzit is close to
entering its fifth year of operation; offering a wide range of home-ware items on easy-to-manage
payment terms and supplies a three year guarantee on every item sold. The typical target customers
have the following characteristics: - sophisticated people who are house proud - shoppers who will
drive to an easy-to-access store - customers who require payment plans to spread their commitment
over an extended period.

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The Strategic Direction and Organizational Objectives

The organization Houzit is determined to become a national retail brand of meeting and satisfying the
needs of people with its high quality of products and easy manage payment plan. In addition, the
organization is planning to develop a significant market presence in homewares in every capital city
of the country. Currently, the company has 15 stores in different places across the Brisbane city.
Houzit is expecting to open up new stores in other part of the country and create a competitive market
presence. Thus, to fulfill the mission and vision, the company sets some particular marketing
objectives. The execution of those objectives may lead the organization to a competitive place in the
market. One of the major objectives of the organization is to maximize sales from $15 million per year
to $ 20 million. Another significant objective of the organization is to create brand recognition in
Brisbane; thus, at least 1 in 3 people learns about the brand.

Capabilities and Resource of the Organization

Houzit is running its business almost for 50 years; thus, the size and resource of the company are
becoming larger. The company usually focuses in building the stores at a commercial and sub-urban
neighborhood. The size of Houzit is near about 1000-15000m2. The organization has 15-20 full time
employees and a large number of causal employees. However, Houzit has a wide category of products
and services. Besides, to make the products and services more effective, the company multiple type of
payment plans like 40% on long-term repayment plan.

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SWOT Analysis
Strengths
 The employees of Houzit are highly
trained, skilled and knowledgeable
regarding home wares
 Increased customer loyalty
 Variety of deals and offers that are
beyond the competitors offerings in
terms of quality, range and accessibility
 Great retail space that is bright,
functional and efficient for a
commercial urban district
Opportunities
 A growing market in a high growth area
with a significant percentage of the
target market still not aware of Houzit’s
offer.
 Increasing sales opportunities outside of
our target area – greater Brisbane.
Tshering Phuntsho_s9990171_9/3/2019
Weaknesses
 As the organization comes under the
category of small originations it has
limited marketing budgets to increase
brand awareness
 The struggle to continually fund the
growing long-term repayment plans
taken out by our customer
Threats
 Competition from local independent
retailers can drive down prices, as
owner-operators have lower overhead
costs than our staff-run stores.
 Competition from national chains
moving into the Brisbane market.
 A slump in the economy reducing
customers' disposable income spent on
homewares.
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Gaps between the Objectives, the Current Capabilities and Resources

Though Houzit is planning to increase their sales from $15 million per year to $20 million in the next
three years, the company might face some budgets issues. The company has limited budgets; thus,
implement the objectives, the company may require a large amount of capital. In order to increased
sales, they have to open up new stores and maximize the human resources capabilities. On the
contrary, to create brand recognition within a span of 2 years, it has to focus on promotion or
endorsement of product. In addition, the company also has to focus on the quality of products and
services, which is again the question of large investment.

Opportunity
1. Marketing Opportunity That Meet Organizational Objectives

In order to meet the organizational objectives, Houzit could focus on digital marketing since it could
help to connect with peopled around the world within a short time. In addition, the company focuses
on penetrative pricing strategies. This could help to increase the market share by selling the products
and service comparatively at low price.

Evaluating risk and benefits of each opportunity

The risk associated with digital marketing is the dynamic nature of digital environment. The trends of
digital marketing often change with competition. The digital marketing only helps the marketers when
they have a niche business. On the contrary, one of the major benefits associated with digital
marketing is, measuring and monitoring. Digital marketing has multiple types; thus, 100%
measurability is the biggest advantage.
Conversely, the risk associated with penetrative pricing strategy is, the abundance of customers. The
customer may leave the service when the price of the products is increased than competitors .One of
the major benefits associated with this opportunity is the chance of maximizing the sales volumes.

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2. Recommending the Marketing Opportunity

The organization Houzit could emphasize on demography. This means while designing the product
and services, they could focus on life style of people, their age, income, family rituals and other
demography. Thus, the customers could stratify their needs buying those products that are designed
based on their life. In addition, to increase the sales volumes, the company could also pay attention to
lead the business in global market. By developing a high quality of products and services, the
company could enter into global market. In such a case, the initial phase of implementing this
opportunity is to focus on digital marketing.

Developing a Marketing Mix Strategy

To increase the sales volumes Houzit could implement 4p’s marketing mix strategy. This strategy
helps cover the significant area o business.

Product:

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The organization should develop and deign heir products and service aligning with the life style of
people. Thus, the organization should boarder the products category to remain competitive in the
market. To make reasonable profits at lower price, Houzit could enhance the techniques that are cost
efficient as well as innovative. The company could increase the product category by including
“Cooking”, “Dining Room”, “Eating and Dirking”, “Hallway”, and “Home decoration”.

Price:
In order to increase the market share, the Houzit should set low price for products and services. The
company could design the products effectively and sell them at low price. However, while running the
business in global marketing, they should follow and implement the pricing laws imposed in each
country.
Promotion:
For making the promotion of products, Houzit could pay attention in direct selling and personal
selling. Hence, rather than relying on distributors and supplier, they could directly sell the products
from their outlets. In addition, at the time of selling the product they could distribute the leaflets that
contain the details of each product. This could increase awareness of customers.

Positioning:
As Houzit is a retail brand online shop and social media could help to distribute the details of products
and services. Through online marketing, the origination could place the products and services. This is
how the company could position its products and services. Online platform is the place where people
could purchase their products through an easy way.

The Strategies Aligning With Strategic Direction of the Organization:

The above-recommended strategies are aligned with organizational goals and objectives. The strategy
of entering into the global market is aligned with the strategy of increasing sales volumes. By running
the business in global market, the company could create brand recognition, which in turn could help to
attract the customers towards the products and services.

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Marketing Performance
Competitive analysis: As the company is running its business over long period, they have multiple
marketing opportunities to grow the business. Similarly, the organization has to deal with some major
challenges.
 Houzit tends to differentiate its products and service from competitors. The company increases
brand-store promotion to maximize product visibility as well as brand awareness.
 “Market Share”-The major competitor of Houzit is with the IKEA. Houzit has a national
presence and increased number of customers. It is identified that Ikea has a large presence in
the market as they vast product category. Conversely, Houzit deals with a small market, the
operation of Houzit is only across Brisbane city. However, Houzit gains reputation due to its
high quality of products and services.

Metrics for Measuring Marketing Performance

There have been certain aspects such as brand awareness, lead generation, customer acquisition,
engagement associated with the marketing performance that should be considered while implementing
the marketing opportunities.
“Brand awareness”: The organization should pay attention on increasing brand awareness since
increased brand awareness could help to make the customers aware of products and services.
“Customer acquisition”: To increase sales volume, it is important to attract more customers towards
the products and services. In such as a case, the organization needs to pay attention increasing market
share.
“Customer retention/Loyalty”: The organization should provide some tangible and intangible benefits
to the potential customers who are using the service for a long time. In such case, the company could
provide additional benefits for premium customers.

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Tactics for Implementing the Strategy

Scheduling for marketing activities:

As Houzit is highly integrated company, it has strong connection in between the department and
products lines. Thus, to ensure that Houzit gains a competitive position in the market, the organization
is putting more efforts in meeting organizational objectives. The management of Houzit needs to
monitor and evaluate the progress of each marketing objectives.

Costing: To implement the above-mentioned strategies such as expansion of business in global

market, digital market may require a large amount of capital. For example, the organization may have
to invest near about $3000-$2000 per month for implementing digital marketing.

KPI: The “key performance indicator” helps to assess the success of Houzit in which they engage.
The success is simply repeated and achievement of levels of goals and objectives. The KPIs could
help the organization Houzit to measure the growth in meeting marketing objective such as
maximizing sales volumes, increasing market share and measuring the cost of customer acquisition.

Legal and Ethical Requirements Influencing the Selected Tactics

The selected tactics may have both legal and ethical impact on business. For example, if the
organization appropriately follows the business ethics, it can gain more reputation. If the organization
understands the social value, customers could be reliable to the organization and they may use the
service for long time. As a result, the sales volumes of Houzit could increases than the existing
volumes. On the contrary, compliance with the regulation may also help the origination to build the
organization in new market. The organization receives environmental support from the governments.

Tactics fitting within organizational resources and capabilities

The above-mentioned tactics are quite effective for the organization. The tactics and strategies
discussed in the report are aligned organizational resources and capabilities. With the limited budgets,
the company could emphasize on meeting organizational marketing objective of increasing sales. By
implementing digital marketing, Houzit could target a vast population through the wide reach of
internet.

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Conclusion
On the completion of the report, it can be added that Houzit could face certain marketing challenges
as the competitors of Houzit already have a competitive position in the market. In addition, due to
limited budgets, the organization may not be able to implement all required strategies. However,
effective implementation of organizational objectives could help the organization to remain
competitive in the market.

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Reference:

1. Innovation & Business Industry Councils Ltd. 1st Edition 2017, Develop a marketing plan:

BSBMKG609: Student Work book

2. Handout case study: Houzit-Home wares
3. https://www.business.gov.au/planning/marketing-plans/develop-a-marketing-plan

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