Assessment Cover Sheet

ASSESSMENT TASK 1

BSBMKG501

Identify & Evaluate Marketing Opportunities

BSB51918 Diploma of Leadership & Management

Student Name: Tanawut Ouisritanapirom

Student ID Number:
AAC 150866

Assessors Name:

Submission
Assessment Due: WW. 8 8/03/2020
Date:

Assessment Tasks Satisfactory Not Yet Satisfactory Did Not Submit

Assessment 1-Project/Report □ □ □

Feedback to Students:

ASSESSOR’S DECLARATION:

I hereby certify that the above student has been assessed by myself and all assessments are carried out as
per the Academy’s Assessment Policy & Procedure.

I declare that the student’s work evidence is current, authentic, valid and sufficient

ASSESSOR SIGNATURE ____________________________ Date: ______________

Student’s signature Tanawut

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 Assessment Submission rules and conditions

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assessments taken totally or in part from the Internet

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Academic misconduct is a serious matter and any breach of misconduct will be treated seriously as
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this decision.

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Introduction
You will complete this assessment by undertaking research to develop a marketing plan for
two new marketing opportunities for an organisation of your choice. You may wish to use
your current or former workplace. Alternatively, you can select any organisation that
interests you; however, you must check that you can access the organisation’s strategic
plan.
Instructions
Follow the instructions in this section to identify and evaluate marketing opportunities. You
must present your research findings in a report. We recommend reading all of the
instructions that follow before you begin your research and writing your business report. In
the next section, you will find an outline you can follow to ensure that your business report
satisfies the assessment requirements.

Project

Your goal is to identify two potential new marketing opportunities for the organisation you
have selected. Your proposed opportunities must be entrepreneurial and innovative.

You could research and evaluate the following types of marketing opportunities:

● market penetration
● product development
● market development
● diversification into new business.

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Business Report

Houzit Pty Ltd

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 INTRODUCTION
1. Introduction
Overview of the Organisation
Houzit Pty Ltd 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.
● Vision: 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 easy
to manage payment plan.
● Mission: By 2025, 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.
Marketing Goals/Objectives
● To increase sales from $15million per year to $20million per year in the next three
years.
● To increase loyalty customers list from 10,000 to 15,000.
● To establish brand recognition in Brisbane so that at least 1 in 3 people recognize
brand in a random survey taken in 18 month time.

2. Current marketing plan, products and services

The current size, capabilities and resources of the organization
Houzit currently have 15 stores spread across the greater Brisbane area, with all stores
being managed and coordinated from their head office in Milton.
Houzit is close to entering its fifth year of operation; offering a wide range of homeware
items on easy-to-manage payment terms and supplies a three-year guarantee on every item
sold.
The typical Houzit store has the following characteristics:
• Location – A commercial, suburban neighbourhood, or urban retail district
• Design – Bright and functional
• Size – 1,000–1,500 m2
• Employees – 15–20 full time, plus several casuals
• Types of transactions – 60% cash, 40% on long-term repayment plan
Products
The Houzit product range is wide in several ways.

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 • First, it’s wide in function: customer will find everything they need to furnish their
homes, from plant and living-room furnishings to toys and whole kitchens.
• Second, it’s wide in style. The romantic at heart will find just as much as the
minimalist.
• And finally, by being coordinated, the range is wide in function and style at the same
time, and at all time.
No matter which style customers prefer, there is something for everyone.
Product range including furniture and accessories that Houzit offers:
• bathroom fittings
• bedroom furnishings
• mirrors and decorative items
• lighting fixtures
Pricing Strategy
“Quality home furnishing products at affordable prices”
Reasonable prices are the cornerstone of the Houzit vision, business idea and concept. The
basic thinking behind all Houzit products is that reasonable prices make well-designed,
functional home furnishings available to everyone. After all, Houzit’s vision is to create the
better everyday life for everywhere.
Houzit is constantly trying to do everything better, simpler, more efficiently and always cost-
effectively. Houzit plays an important part in creating reasonable prices which we are then
able to offer all customers.

3. The student must have used at least one of the following methods to identify marketing
opportunities:
● market analysis
● competitor analysis
● gap analysis
Market Analysis
Target Market Segment Strategy
Houzit will be focusing on contacting contractors and architects that deal with the luxury
home market. Making ourselves known to these entities will generate some strong leads,
along with getting personal recommendations to the home owners.
There are plans to upgrade office space to a showroom in a high visibility location. This will
give us exposure to new home builders that are looking for our product.

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 TARGET MARKET

Potential Customers Growth YEAR1 YEAR2 YEAR3 YEAR4 YEAR5

High-end residential 3% 5,260 5,418 5,581 5,748 5,920

Mid-range residential 5% 3,500 3,675 3,859 4,052 4,255
Commercial development 7% 10,000 10,700 11,449 12,250 13,108
Total 5.55% 18,760 19,793 20,889 22,050 23,283

Industry Analysis
There are two main types of cabinet suppliers in the industry.
1. Resellers of complete cabinet sets using stock items where the cabinets turn up
completely built. Usually have no shop facilities but do have showrooms.
2. Custom shops with full, in-house fabrication facilities. They are usually very product
orientated and under-perform with customer support.
Houzit can provide high volume work, superior project management, and excellent quality
while maintaining a low overhead.
Competition and Buying Patterns
The high-end cabinet market understands the concept of service and support and is more
likely to pay for it when the offering is clearly stated.
There are many competitors in the local market. Although each of them delivers a quality
product, we feel they fail to deliver a full turnkey package. There are four factors that
govern the cost of all kitchen projects: Scope, Product, Design, and Services. Most people
mistakenly think that the size of the project and the choice of brand name products will
make for the best results. But it is the design and a company's services that will have the
greatest impact on the quality and value of the customer’s investment.

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4. In addition to summarising your analysis, you should include source data in the Appendix
section of your report.

TARGET STORES

Region YEAR0 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5

Brisbane Central 15 15 15 15 15 15
Sydney Central 2 4 9 10 10
Sydney Eastern Suburbs 1 2 4 5 5
Sydney North Shore 1 2 4 5 5
Sydney South 1 2 4 5 5
Sydney West 1 2 4 5 5
Melbourne South East 1 4 5 9 15
Greater Adelaide 1 3 5 9 15
Gold Coast 1 3 5 8 10
Perth 1 3 5 9 15

Total 15 25 40 60 80 100

Sales strategy is to make themselves known through mailings, print advertising, and
personal contact to architects and contractors who are primarily involved with the
design/construction of commercial development and luxury homes.

Having a showroom/store will be a sales tool in itself. A showroom/store will give them
exposure to the general public, new arrivals to the area, and construction professionals.

Projected Revenue for Each New Branch

YEAR 1 YEAR 2 YEAR 3

Sales
Furniture $442,000 $1,000,000 $1,500,000

Cost
Direct Cost of Sales $301,600 $725,000 $1,087,500

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The accompanying table lists important program milestones, with department in charge,
and budgets for each. The milestone schedule indicates their emphasis on planning for
implementation.

MILESTINES

Budget Department

Business Plan $2,000 Marketing

Online Research $350 Marketing
Open Accounts with Suppliers $350 Online Marketing (Website)
Door Research $500 Online Marketing (Website)
Design Doors $450 Production
Order Sample Doors $1,000 Production
Design Sales Literature $1,000 Production
Print Sales Literature $300 Production
Make Industry Contracts $1,000 Production
Showroom Feasibility Study $1,000 Production

Total $7,950

5. Describe statistical methods and techniques that you could use evaluate marketing
opportunities, including forecasting techniques.
Statistical analysis ratios that are commonly used:
- Return on investment (ROI) is used to measure the gain or loss generated on an
investment relative to the amount of money invested. ROI is usually expressed as a
percentage and is typically used for decisions such as assessing a company's profitability or
to comparing the efficiency of different investments.
- Return on equity ratio (ROE) is a profitability ratio that measures the ability of a firm to
generate profits from its shareholders’ investments in the company. In other words, the
return on equity ratio shows how much profit each dollar of common stockholders' equity
generates.
Different forecasting methods for forecasting growth
- Moving Average: this method requires the calculation of the average of the most
recent number of observations as specified by the forecaster. This is a subjective method as
it is dependent upon the number of periods selected for determining the averages. The

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number of periods chosen should be a value that corresponds to the estimate average
length of a cycle in the series. The appeal of this method is that it is easy to calculate.
- Weighted Moving Average: this method is similar to the moving average but assigns a
heavier weighting to more current data points since they are more relevant than data points
in the distant past. The sum of the weighting should add up to 1 (or 100%).
- Exponential Smoothing: this method involves deriving a trend line where the past
history of the variable is in question is used to flatten out short term fluctuations. This
method would be used when the level of influence of past trends can be nominated by the
individual conducting the calculation. The method also involves choosing a weighting factor,
alpha (α), a positive value between 0 and 1.
Market Share

Financial Year Houzit Bunnings Kmart Target

FY2019/2020 5.3% 25.4% 14.2% 12.9%

FY2020/2021 (F) 6.5% 25.4% 14.2% 12.9%

Sales Performance

Financial Year Current Stores New Stores Total

FY2019/2020 $22.50m - $22.50m

FY2020/2021 (F) $22.50m $11.05m $33.55m

FY2021/2022 (F) $47.50m $17.68m $65.18m

FY2022/2023 (F) $100.00m $26.52m $126.52m

FY2023/2024 (F) $180.00m $35.36m $215.36m

FY2024/2025 (F) $290.00m $44.20m $334.20m

6. Undertake a comprehensive environmental scan. You may wish to present your findings
in a table.

Environmental scan

Economic Australia has a mixed-market economy with the GDP of A$ 1.69

environment trillion as per the survey conducted in 2017. Its strong GDP has made
it the second most-wealthiest nation in the world after Switzerland.
From the above elements it is stated that in the matter of economy,
Australia is well-developed. According to the published report in

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 2014, the market price in Australia is higher in comparison of per
capital income. However, the GDP per capital in Australia is equal to
443 % of the total world. There is a wide scope of economic
development in different parts of the country along with the
remunerative opportunity for investment. There is a high possibility
that investment on property at a couple of areas of Australia can
give high returns. Off track, plans are practical in Australia. In
addition, the currency exchange rate of Dollar, Sterling, and Euro are
valuable for financial specialists at Australia. The cost of living in the
developed cities in Australia like Sydney, Brisbane, Melbourne, and
Perth is much lower than other luxury known countries around the
globe. As already mentioned above the economic growth rate of
Australia is appreciably higher than other counties. This continuous
growth is mainly supported by the foreign trade and domestic
demands as the fixed investment is flat. The stability in interest rate,
rise in exchange rates and great control over the inflation rate
indicate the economic stability of Australia.

Technological Australia is known for its achievement in the technology field which
environment is one of the biggest draws for students who wants to make their
career in the technology sector. The growth of technology in
Australia is responsible for major breakthrough and development
around the world. Scientific and Research Organizations keep an eye
and support the research and development activities in various fields
of science like physics and biology. The government and other
Australian organizations financially support research projects also.
Advanced technology and research projects now cover a big portion
of the scientific development. Main fields where technology has
developed on the basis of research are:
● Scientific Section
● Medical Section
● Medical Arena

Political and legal Political Environment:

environment The political environment of Australia is more stable in comparison
to other nations as the political stability, transparency in the
regulatory system and a strong governance framework providing the
necessary strength to its economic growth. Due to this, the country
lands among the top five on the index of Economic Freedom. Its
government frameworks attract investors by providing a progressive
and regulated platform to work upon. The judiciary a law-
enforcement have played a very big in economic development by
properly controlling the corruption level in the country. The
constant stability of the country is beneficial for companies who are
looking forward to starting their business in Australia. Plus, well
educated, trained, skilled technicians with fair control over multiple

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 languages is another added benefit.
Legal Environment:
The legal factors existing in Australia has become the important
topic for the business. The basic wage of workers has been
increased and the obligation of recycling products has been forced
upon business organizations due to socio-ecological reason. The
agreement at Australia is not a subject to formal paperwork to be
lawfully official. Messages, e-mails and any form of writing can be
taken as a binding on various issues. The Government of Australia
has officially declared that having a relationship with any kind of
terrorist group or individuals will be a punishable offense. They have
enlisted criminals a company need make distance with to avoid any
legal issues in the near future.

Cultural and social The Australian society is classified into three major parts upper class,
environment middle class, and working class. Whereas most of the citizens fall
under the middle-class category. The classification of a society can
be determined by the lifestyle of living individuals. Although the
lifestyle can be deceptive. Eating, contacts, and sustenance can be
characteristic of classification. However, Australians pay close
attention to their education and irrespective of class, every parent in
the Country focus on providing the better education to their children
to guarantee better job opportunities in the future.

7. You must clearly articulate two marketing opportunities for this organisation. Write a detailed
description of the strategies that would be required to implement your recommendations.
Your strategies should demonstrate that you are able to develop and evaluate
entrepreneurial, innovative and creative ideas for their potential business applications.
In your description, you explain how the principles of marketing and marketing mix apply to your
proposed strategies.
MARKETING OPPORTUNITIES
1. Franchising
A continuing relationship in which a franchisor provides a licensed privilege to the
franchisee to do business and offers assistance in organizing, training, merchandising,
marketing and managing in return for a monetary consideration. Franchising is a form of
business by which the owner (franchisor) of a product, service or method obtains
distribution through affiliated dealers (franchisees).

Benefits: ● Market driven need for rapid business expansion. There is a high demand
for Houzit goods or services that remains unsatisfied, and there exists a
market area that homeware business is capable of filling, especially a major

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 competitor has withdrawn from the market then Houzit can decide to
rapidly expand business.
● High demand for capital to finance rapid business expansion. Having made
a decision regarding rapid business expansion, Houzit is faced with the
issue of financing this expansion. A business can finance its expansion with
its own funds, borrowed funds, investors’ funds or using franchisees’ funds.
● High demand for human resources to ensure rapid business expansion. A
franchisee often becomes an optimal business manager because it is the
immediate Director Board of Houzit manages that ensures motivation,
however, it has to manage the business according to the rules set by the
franchisor, that ensures a sufficient degree of control by the franchisor.

Risks: ● Franchising is a new business. Many prospective franchisors fail to

recognize that building and running a franchise network is a completely
new business that is separate from the existing business that made the
foundation for a franchise.
● The network is as weak as its weakest node. Having in mind that all
franchisees in a franchise network operate under the same brand name, it
is easy to predict that failure of any of franchisees may compromise other
franchisees and franchisor itself.
● Legal differences in various countries. Due to the extreme importance of
franchise and related agreements to smooth operations of the franchise
system it is very important to apply the same legal rules and standards in
all states and countries of franchises operations.

2. Strategic Alliances
An arrangement between two companies that have decided to share resources to
undertake a specific, mutually beneficial project. In a strategic alliance, each company
maintains its autonomy while gaining a new opportunity. A strategic alliance could help a
company develop a more effective process, expand into a new market or develop an
advantage over a competitor, among other possibilities.

Benefits: ● Gaining capabilities. An enterprise may want to produce something or to

enquire certain resources that it lacks in the knowledge, technology and
expertise. It may need to share those capabilities that the other firms have.
Thus, strategic alliance is the opportunity for the enterprise to achieve its
objectives in this aspect.
● Easier access to target markets. Introducing the product into a new market

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 can be complicated and costly. It may expose the enterprise to several
obstacles such as entrench competition, hostile government regulations
and additional operating complexity.
● Sharing the financial risk. Enterprises can make use of the strategic
arrangement to reduce their individual enterprise’s financial risk.
● Achieving synergy and competitive advantage. Synergy and competitive
advantage are elements that lead businesses to greater success. An
enterprise may not be strong enough to attain these elements by itself, but
it might possible by joint efforts with another enterprise.

Risks: There are several risks and limitations using strategic alliances. Failures are
often attributed to unrealistic expectations, lack of commitment, cultural
differences, strategic goal divergence and insufficient trust. Some of the risks
are listed below:
● Activities outside scope of original agreement
● Hidden costs
● Inefficient management
● Information leakage
● Loss of competencies
● Loss of operational control
● Partner lock-in
● Partner product or service failure
● Partner unable or unwilling to supply key resources
● Partner's quality performance
● Partner take advantage of its position
● Partner experiences financial difficulties

Applying to Marketing Mix

Deciding whether to invest in business franchising is a common and important strategic
business decision companies face periodically. Franchising business means paying for more
space, people and inventory in many instances, but it also means potential for increased
revenue and profits.
A primary benefit of business franchising is the ability to attract and retain new customers.
When Houzit adds new products to portfolio or move into new markets, they can bring in
previously untapped customer markets. Reaching out to these new customers with
franchising is one thing, but capturing them for long-term relationship building is primary.
Growing a loyal customer base is the best way to achieve stable and growing profits over
time.

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Product The Houzit product range is wide in several ways.
● First, it’s wide in function: customer will find everything they need to
furnish their homes, from plant and living-room furnishings to toys and
whole kitchens.
● Second it’s wide in style. The romantic at heart will find just as much as
the minimalist.
● And finally, by being coordinated, the range is wide in function and
style at the same time, and at all time.
No matter which style customers prefer, there is something for everyone.
Product range including furniture and accessories that Houzit offers:
– bathroom fittings
– bedroom furnishings
– mirrors and decorative items
– lighting fixtures

Price Quality home furnishing products at affordable prices

Reasonable prices are the cornerstone of the Houzit vision, business idea
and concept. The basic thinking behind all Houzit products is that
reasonable prices make well-designed, functional home furnishings
available to everyone. After all, Houzit’s vision is to create the better
everyday life for everywhere.
Houzit is constantly trying to do everything better, simpler, more efficiently
and always cost-effectively. Houzit plays an important part in creating
reasonable prices which we are then able to offer all customers.

Place Place is concerned with making available the products at a place where has
been demanded. Thus, it is concerned with the store where the goods shall
be displayed and sold, the channels of distribution and logistics
management through which goods will flow from marketer to consumers.

Promotion Houzit is one of the Brisbane’s largest furniture retail brands. The brand
itself is based upon the concept of offering home furnishing products at
value prices.
The promotions mix includes TV advertising, sponsorship, newspaper and
magazine advertising, and many other elements. Some of its TV advertising
is considered controversial whilst others see it as pretty plain. Recent
campaigns include the Houzit kitchen party advert ‘Be Happy Inside’
campaign and the kitchen party advert.

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8. Outline the criteria you uses to evaluate the marketing options you considered to
determine your recommendations.

Return on The most basic way to calculate the ROI of a marketing campaign is to
Investment (ROI) integrate it into the overall business line calculation.
The ROI of any marketing campaign ultimately comes in the form of
increased sales. It is a good idea to run calculation using sales growth
less the average organic growth on a regular basis throughout any
campaign because the results do take time to build.

Brand Equity Brand equity is a phrase used in the marketing industry which
describes the value of having a well-known brand name, based on the
idea that the owner of a well-known brand name can generate more
money from products with that brand name than from products with
a less well-known name, as consumers believe that a product with a
well-known name is better than products with less well-known
names.
Thus Houzit brand is one of the most valuable assets a company has,
which can increase the financial value of a brand to the brand owner.
Elements that can be included in the valuation of brand equity
include: changing market share, profit margins, consumer recognition
of logos and other visual elements.

Market Share Market share is the percentage of a market (defined in terms of

either units or revenue) accounted for by a specific entity. Market
share would help Houzit to indicate market competitiveness, how
well Houzit is doing against its competitors. This metric,
supplemented by changes in sales revenue, helps managers evaluate
both primary and selective demand in market. That is, it not only
judges total market growth or decline but also measures trends in
customers’ selections among competitors.

Customer Marketing efforts would be incomplete without gaining a feel for how
Satisfaction and well sales and marketing department is meeting customer needs.
Customer Loyalty Surveys provide one way that managers and business owners can
improve their marketing efforts over the long haul. By consistently
offering customers and potential customers the opportunity to
provide feedback, future marketing efforts can be tailored to the
needs of the market segment Houzit is trying to reach.

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9. For each recommendation you must evaluate impact on current business operations and
existing customer base.
There are two major categories of business impacts:
Primary activities impacts – Primary activities impacts are directly involved in transforming
inputs into outputs and in delivery and after-sales support. These are generally also the line
activates of Houzit. They include:
• inbound logistics — material handling and warehousing;
• operations — transforming inputs into the final product;
• outbound logistics — order processing and distribution;
• marketing and sales — communication, pricing and channel management; and
• service — installation, repair and parts.
Support activities impacts – Support activities impacts support primary activities and other
support activities. They are handled by the Houzit’s staff functions and include:
• procurement — purchasing of raw materials, supplies and other consumable items as
well as assets;
• technology development — know-how, procedures and technological inputs needed in
every value chain activity;
• human resource management — selection, promotion and placement; appraisal;
rewards; management development; and labor/employee relations; and
• firm infrastructure — general management, planning, finance, accounting, legal,
government affairs and quality management.

10. Explain tactics that the business can use to ensure that the existing customer base is not
adversely impacted by the business needing to service new customers attracted as a result
of new marketing initiatives.
Tactical marketing tools are the activities which are used in coordination and monitoring
mechanisms in marketing plan, same as Houzit’s using to execute marketing plan to meet
the objectives. When Houzit develop or create a product or service, they design it with
specific people in mind who are likely to need it and use it, and then develop ways to let
them know about it and deliver it to them.
Monitoring the implementation of strategic plan is important to assure that Houzit efforts
conform to the plan and actually performing the action steps which are intended. Moreover,
Houzit has got to be sure the results which achieve align with quantified objectives.
The monitoring activities which Houzit should consider are:
● An Early "Warning" System: Such as in developing a new home wear product, the R&D
department may run into a technical problem – and slip its schedule by six weeks. The
marketing department needs to know about it. So, does the production department.

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 Through such feedback, Houzit could improve the implementation of strategies and
reinforce the spirit of cooperation within company.
● Getting "Back on Track": Houzit may run into implementation problems. Some of tactics
may prove ineffective, some strategies won't work as intended or missing accomplishing
an objective. Houzit then should take one of four corrective actions.
1) Change the schedule – slip due date
2) Change the tactics which are performing to implement strategy
3) Change the strategy
4) Compromise the objective
Each of these corrective actions is applicable under specific circumstances.

11. Estimate the effect of the two marketing opportunities on the business, for example:
A performance indicator or key performance indicator (KPI) is a type of performance
measurement. KPIs evaluate the success of Houzit in which it engages. Often success is
simply the repeated, periodic achievement of some levels of operational goal and
sometimes success is defined in terms of making progress toward strategic goals.
Accordingly, choosing the right KPIs relies upon a good understanding of what is important
to Houzit.
There are three key performance indicators (KPIs) will help Houzit measure the progress in
achieving its organisation's marketing objectives:
● Increase in sales revenue: The benchmark of 12% increase in sales revenue has be set
by Houzit's board of Directors. It can be calculated using growth in sales divided by
previous year's sales.
● Market Share: The percentage of an industry or market's total sales that is earned by a
particular company over a specified time period. Taking the company’s sales over the
period and dividing it by the total sales of the industry over the same period calculate
market share. This metrices used to give a general idea of the size of a company to its
market and its competitors. For Houzit, the benchmark has been set by board of
Directors of 12%.
● Cost of customer acquisition: Houzit's board of Directors has set a benchmark of 15% of
new sales generated as an appropriate customer acquisition cost. Customer Acquisition
Cost is the cost associated in convincing a customer to buy a product/service. This cost is
incurred by the organization to convince a potential customer. This cost is inclusive of
the product cost as well as the cost involved in research, marketing, and accessibility
costs. This is an important business metric. It plays a major role in calculating the value
of the customer to the company and the resulting return on investment (ROI) of
acquisition. The calculation of customer valuation helps a company decide how much of

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 its resources can be profitably spent on a particular customer. In general terms, it helps
to decide the worth of the customer to the company.
Note: You must submit any relevant calculations

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12. Complete a SWOT analysis using the template at Appendix A. Submit the completed
SWOT in your report. You may wish to summarise the SWOT findings in the body of the
report and include the completed template in the appendix section of the report.
SITUATION ANALYSIS
Swot Analysis

Strengths Weaknesses

- Excellent staffs who are highly skilled and - A limited marketing budget to develop
knowledgeable about homewares. brand awareness due to the lack of critical
mass and store cover.
- Great retail space that is bright,
functional and efficient for a commercial - The struggle to continually fund the
urban district. growing long-term repayment plans taken
out by our customers.
- High customer loyalty among repeat
customers.
- Assortment of offerings that exceed
competitors’ offerings in quality, range and
accessibility.

Opportunities Threats

- A growing market in a high growth area - Competition from local independent

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.
retailers can drive down prices, as owner
operators have lover overhead costs 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
homewares.

13. Determine the probable return on investment. You must submit your financial
calculations and findings.
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an
investment or compare the efficiency of a number of different investments. ROI tries to
directly measure the amount of return on a particular investment, relative to the
investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the
cost of the investment. The result is expressed as a percentage or a ratio.

24
25
ROI (each store) = (Net Return on Investment / Cost of Investment) * 100
= ((Net Return from Mkt. Opp. * Net Profit Margin) / $7,950) *
100
= ((($442,000) * 20%) / $7,950) * 100
= 1,112%

14. Complete the table at Appendix B to outline key provisions of relevant legislation, codes
of practice and national standards and workplace protocols for marketing operations.
Framework

The Australian The Australian Consumer Law (ACL) includes:

Consumer Law ● a national unfair contract terms law covering standard form
consumer and small business contracts;
● a national law guaranteeing consumer rights when buying goods
and services;
● a national product safety law and enforcement system;
● a national law for unsolicited consumer agreements covering
door-to-door sales and telephone sales;
● simple national rules for lay-by agreements; and
● penalties, enforcement powers and consumer redress options.
The ACL also covers key areas that relate to advertising, including:
● misleading or deceptive conduct
● including puffery; silence; disclaimers and small print;
predictions and opinions; exceptions for information
providers
● false or misleading representations
● including testimonials; consumer guarantees; sale or grant of
an interest in land; employment and business activities;
offering rebates, gifts, prizes and other free items; misleading
conduct - nature of goods and services; bait advertising;
wrongly accepting payments for goods or services; exceptions
for information providers
● unconscionable conduct
● representations about country of origin
● including criteria for country of origin claims; 'made in' claims;
substantial transformation; costs of producing or
manufacturing goods; 'product of' claims; claims or origin
based on use of prescribed logo; 'grown in' claims; certification
trademarks
● information standards
● including business responsibilities.

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 Competition The main federal law, the Competition and Consumer Act 2010 (CCA)
and Consumer ensures that trading is fair for business and customers.
Act 2010 (Cth) The CCA covers most aspects of the marketplace: dealings with
suppliers, wholesalers, retailers, competitors and customers. It deals
with unfair market practices, industry codes of practice, mergers and
acquisitions of companies, product safety, collective bargaining,
product labelling, price monitoring, and the regulation of industries
such as telecommunications, gas, electricity and airports.

Sustainable The Sustainable Energy Policy will establish an integrated policy

Energy Policy framework for managing the social, economic and environment
challenges faced by the Territory to 2020 as they relate to energy
production and use.
The framework consists of four key targeted outcomes:
• Outcome one: secure and affordable energy
• Outcome two: smarter use of energy
• Outcome three: cleaner energy
• Outcome four: growth in the clean economy

15. Analyse how successful implementation of each strategy will contribute to the
organisation’s strategy or business plan (including its goals and capabilities).
Strategic tactic for Houzit franchising opportunity are as following:
• Engaging with customers through marketing, research and personalised service.
• Building reputation for quality products and quality customer service.
• Supporting people to perform via training and performance management.
They show that all tactics are quite familiar with current Houzit situations, such as
profitability, customer loyalty and also product research and development. It clearly shows
many strengths which can help many franchises which are planned to located.
Creating Customer Loyalty
● Superior customer service: Nowadays, people are looking for more personalized
service. Customers will appreciate professional, knowledgeable, friendly, and reliable
service, before, during, and after a purchase. Giving great service and finding
solutions to meet customers’ needs go a long way in keeping their loyalty, year after
year.
● Excellent quality: Competing on price alone isn’t sustainable. A much better strategy
is to compete on quality, or to provide enhanced features or benefits that are valued
by customers.
● Loyalty programs: Let customers earn points or rewards when they buy products
and services which they can redeem for free merchandise, or more products and

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 services. By rewarding regular customers, Houzit could encourage them to buy from
us instead of competitors.
● Memberships: Have customers sign up for a membership program to receive
newsletters, advance notice of sales, special buys, extra service, invitations to special
events, or rewards.
● Credit programs: Give customers different purchase options such as store credit
cards, layaway plans, buy now/pay later or pay-as-you-go plans.
● Contests and prizes: Contests can create excitement and promote in-store
purchases, program or membership sign-up, and refer-a-friend campaigns.
Furthermore, financial, marketing, production and human resource management both
employees and strategies are excellent. They are the best drives for Houzit expansion for
further.

16. In the conclusion section of the report you must rank the two marketing opportunities
based on their viability and likely contribution to the business.
The Strategy Mission of Houzit has shown clearly that “By 2025, 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.”
Thus the strategies which align with Houzit Mission and also Franchising Marketing are as
following:
● Marketing Mix Strategy
– The Houzit product range is wide in several ways
– Quality home furnishing products at affordable prices
● Creating Customer Loyalty through many effective tools such as Superior customer
service, Excellent quality, Loyalty programs and Memberships.
Deciding whether to invest in business franchising is a common and important strategic
business decision company’s face periodically. Franchising business means paying for more
space, people and inventory in many instances, but it also means potential for increased
revenue and profits.
A primary benefit of business franchising is the ability to attract and retain new customers.
When Houzit adds new products to portfolio or move into new markets, they can bring in
previously untapped customer markets. Reaching out to these new customers with
franchising is one thing, but capturing them for long-term relationship building is primary.
Growing a loyal customer base is the best way to achieve stable and growing profits over
time.

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 Appendix A
SWOT Analysis
Strengths Weaknesses

Opportunities Threats

Appendix B

Framework

Australian Direct Marketing Association

(ADMA)

Direct Marketing Code of Practice

Free TV Australia Commercial Television

Industry Code of Practice

Competition and Consumer Act 2010 (Cth)

Workplace protocols and expectations–

conflict of interest, privacy, social media use.
 Assessment 1 - Project
Feedback Evaluation Sheet
STUDENT NAME: Tanawut Ouisritanapirom STUDENT NO: AAC150866

ASSESSOR’S NAME: DATE: 12/03/2020

UNIT NAME: BSBMKG501 Identify and evaluate marketing opportunities

Yes/N
In this assessment, the student demonstrated: Comments
o

The context of the organisations strategic direction,

objectives and targets

Understanding of the current marking plan, products and

services

Methods to identify marketing opportunities

Statistical methods and techniques for evaluating marketing

opportunities, including forecasting techniques

Comprehensive environmental scan

Understanding of two marketing opportunities and explained

the principles of marketing and marketing mix

Criteria to evaluate the marketing options considered to

determine recommendations

Impact on current business operations and existing customer

base

Tactics that businesses can use to ensure existing customer

base is not adversely impacted

Effect of two marketing opportunities on the business

SWOT analysis findings

Findings of the financial calculations and ROI

Key provisions of relevant legislations, codes of practice and

national standards and workplace protocols for marketing
operations

How successful implementation of each strategy will

contribute to organisations business plan

Ranked the two marketing opportunities based on their

viability and likely contribution to the business