BSBMKG609 Develop a marketing plan Assessment Task 1

Contents
Introduction......................................................................................................2

Capabilities and Resource of the Organization………………………………4

SWOT Analysis...............................................................................................5

Gaps between the Objectives, the Current

Capabilities…………………………………………………………………. 6

Opportunity......................................................................................................6

Developing aMarketing Mix Strategy..............................................................7

Marketing Performance....................................................................................9

Tactics for Implementing the
Strategy............................................................................................................10

Legal and Ethical Requirements Influencing the Selected

Tactics..............................................................................................................11

Conclusion.......................................................................................................12

 
Introduction
Houzit is a Brisbane-based homewares chain that specialises in bathroom and
bedroom fixtures, mirrors, and decorative products. They currently operate 15
stores in the greater Brisbane region, all of which are run and coordinated from
their Milton headquarters. Houzit will be a national retail brand that caters to the
needs of homemakers with a variety of one-of-a-kind, high-quality homewares
that are affordable to everyone thanks to our convenient payment plan. Houzit
will have a major homewares retail presence in every Australian capital city by
2020, beginning with 15 stores in the greater Brisbane region and expanding to
100 across the country. Target Market Houzit is approaching its fifth year of
service, and it offers a wide variety of home-ware products on easy-to-manage
payment terms, as well as a three-year guarantee on all items sold. The
following are the attributes of typical target customers: - affluent people who
are proud of their homes - consumers who can travel to a convenient store -
customers who need payment plans to spread their dedication over a long period
of time.

The Strategic Direction and Organizational Objectives

Houzit is on a mission to become a national retail brand that meets and fulfils
people's needs through high-quality goods and an easy-to-understand payment
plan. Furthermore, the company intends to establish a major homewares market
presence in each of the country's capital cities. Currently, the company operates
15 stores in various locations across Brisbane. Houzit aims to open new stores
around the country in order to develop a competitive market position. As a
result, the organisation establishes certain marketing goals in order to achieve
its goal and vision. The accomplishment of those goals will help the company
gain a competitive advantage in the market. One of the organization's main
goals is to increase revenue from $15 million to $20 million a year. Another
important aim of the company is to increase brand awareness in Brisbane, so
that at least one out of every three people is aware of the brand.

 Capabilities and Resource of the Organization

Houzit has been in operation for nearly 50 years, and as a result, the company's
size and resources are growing. The business typically concentrates on
constructing stores in industrial and suburban areas. Houzit is approximately
1000-15000m2 in height. The company employs 15-20 full-time workers and a
significant number of casual workers. Houzit, on the other hand, provides a
large variety of goods and services. Furthermore, the company provides a range
of payment options, such as a 40% long-term repayment plan, to make its goods
and services more efficient.
SWOT Analysis

Strengths Weaknesses

1. Houzit's employees are well- 1. Due to the organization's status as

trained, experienced, and competent a small business, it has a restricted
in the field of home furnishings. marketing budget to raise brand
awareness.
2. Improved customer retention

3. A wide variety of deals and offers 2. The struggle to keep up with the
that are superior to those offered by and number of long-term instalment
rivals in terms of pricing, range, and programmes that our customers have
accessibility. taken out.

4. Excellent retail space for a

commercial urban district that is
bright, practical, and effective.
Opportunities Threats
1. 1. Since owner-operators have
1. 1. A rising market in a high- lower operating costs than our
growth region where a staff-run shops, competition
substantial portion of the from local independent
target market is still unaware retailers will push prices
of Houzit's bid. down.
2. 2. Expanding distribution
opportunities outside of our
target market – Brisbane and
the surrounding area.

.
 
Gaps between the goals, current capabilities, and available resources
Despite Houzit's plans to raise revenue from $15 million to $20 million per year
over the next three years, the company may run into budget problems. Since the
company's budgets are small, achieving the goals can necessitate a large amount
of money. They must open new stores and optimise human resource resources
in order to boost revenue. On the other hand, if you want to establish brand
awareness in two years, you can concentrate on product marketing or
endorsement. Furthermore, the company must concentrate on the quality of its
goods and services, which requires significant investment.
 
Opportunity
1. Marketing Opportunity That Meets Organizational Objectives
Houzit should rely on digital media to achieve the organization's goals because
it helps them to interact with people all over the world in a short period of time.
Furthermore, the firm concentrates on penetrative pricing techniques. This
could help gain market share by offering goods and services at a lower price
than competitors.
Evaluating risk and benefits of each opportunity
The complex design of the digital world is a challenge associated with digital
marketing. Digital marketing patterns change often as the market becomes more
competitive. Digital marketing is only beneficial to marketers who have a niche
industry. Measuring and tracking, on the other hand, is one of the main
advantages of digital marketing.
Because there are so many different forms of digital marketing, the ability to
measure it is the most important benefit. The danger associated with a
penetrative pricing approach, on the other hand, is an excess of customers.
When the price of the products is higher than that of competitors, the customer
will leave the service. One of the main advantages of this opportunity is the
possibility of increasing sales volumes. 
2. Recommending the Marketing Opportunity
Houzit may put a strong focus on demographics. This means that they will
reflect on people's lifestyles, their age, wages, family rituals, and other
demographics while developing products and services. Customers could
therefore stratify their desires by purchasing items that are customised to their
lifestyle.
Furthermore, the company should focus on leading the business in the global
market in order to raise sales volumes. The company could penetrate the global
market if it developed high-quality goods and services. In such a situation, the
first step in putting this opportunity into action is to concentrate on digital
marketing.
Developing a Marketing Mix Strategy
Houzit may use the 4p marketing mix approach to raise sales volumes. This
technique assists in the coverage of a major market field.
The company should design and produce products and services that are in line
with people's lifestyles. To stay competitive in the industry, the company should
boarder the product category.
Houzit may develop cost-effective and creative techniques in order to make fair
profits at a lower price. “Cooking,” “Dining Room,” “Eating and Drinking,”
“Hallway,” and “Home Decoration” may all be added to the product
classification. 
Price:
The Houzit should set low prices for goods and services in order to raise market
share. The business could easily design goods and sell them at a low cost. They
should, however, follow and enforce the pricing laws implemented in business
when running their global marketing business.

Promotion:
 Houzit should focus on direct sale and personal selling when it comes to
product promotion. As a result, instead of depending on distributors and
suppliers, they might sell the goods directly from their stores. In addition, when
selling the product, they could hand out leaflets with product information.
Customers may become more conscious as a result of this.

Positioning:
Since Houzit is a retail brand, an online shop and social media presence may aid
in the dissemination of product and service information. The origination could
position the goods and services through online marketing. This is how the
company's goods and services will be placed.
`.
The Strategies Aligning with Strategic Direction of the Organization:

The methods suggested above are in line with the organization's priorities and
objectives. The strategy for accessing the global market coincides with the aim
of rising sales volume. By competing in the global market, the company will
develop brand awareness, which can help to draw consumers to its goods and
services. 
 
Marketing Performance
Competitive analysis: Since the company has been in operation for a long time,
they have a variety of marketing opportunities to expand the business.
Similarly, the company faces serious obstacles.
Houzit likes to set itself apart from the market with its goods and services. To
raise product exposure and brand recognition, the organisation increases brand-
store promotion.

IKEA is Houzit's main rival in terms of market share. Houzit now has a national
presence and an increasing customer base. Ikea is known to have a strong
presence in the industry due to their wide range of products. Houzit, on the
other hand, caters to a niche market, with operations confined to Brisbane.
Houzit, on the other hand, enjoys a reputation for high-quality goods and
services.
 
Measuring Marketing Performance Metrics for
Certain aspects of marketing success, such as brand recognition, lead
generation, customer retention, and interaction, should be taken into
consideration when implementing marketing opportunities. “Brand knowledge”:
The company should focus on growing brand awareness because it will help
consumers become more aware of goods and services.
It is important to draw more buyers to the goods and services in order to raise
sales volume. In this situation, the company must concentrate on growing its
market share. “Customer retention/loyalty”: The business can provide tangible
and intangible benefits to long-term customers. In this situation, the business
could provide additional services. In this scenario, the company may provide
premium customers with additional benefits.
 
Tactics for Implementing the Strategy

Scheduling for marketing activities:

Houzit has close connections between departments and product lines because it
is a highly integrated organisation. As a result, the companies are putting more
effort into achieving operational goals in order to ensure that Housie retains a
competitive position in the industry. Houzit's management must keep track of
and review the success of each marketing goal.
Costing:
 The above-mentioned strategies, such as business expansion in global markets,
could necessitate a significant amount of capital. For example, to incorporate
digital marketing, the company will need to spend about $3000-$2000 per
month.
KPI:
 The "main performance measure" aids in determining the success of Houzit in
which they participate. The path to success is to replicate the process and reach
higher levels of goals and targets. The KPIs could aid Houzit in assessing
growth in marketing objectives such as optimising sales volumes, growing
market share, and calculating consumer acquisition costs.
 
Tactics for Implementing the Strategy
Legal and Ethical Requirements Influencing the Selected Tactics
The strategies chosen may have a legal and ethical effect on the organisation.
For example, if a company practises business ethics correctly, it will improve its
credibility. Customers may be dependable to an organisation if it understands
the social value, and they may use the service for a long time if the organisation
understands the social value. As a consequence, Houzit's sales volumes can rise
above their current levels. Compliance with the regulation, on the other hand,
can assist the origination in expanding into new markets. Governments support
the organization's sustainability activities.

Tactics fitting within organizational resources and capabilities.

The above-mentioned strategies have proven to be very successful for the
company. The report's tactics and objectives are based on aligned organisational
resources and skills. With limited resources, the company could focus on
achieving the organization's marketing goal of increasing revenue. Houzit could
reach a large audience by using digital marketing because internet have a broad
reach.
 
Conclusion
Finally, since Houzit's rivals already have a strong position in the industry, the
study concludes that Houzit may face some marketing challenges. Furthermore,
due to budget limitations, the company could not be able to execute all
appropriate strategies. Successful execution of organisational goals, on the other
hand, can help the company stay competitive in the market.