marketing plan

Assessment1 Organizational overview: The company is named Houzit Pty Ltd, it is a retailer for home wares. Houzit is a chain of homewares stores in Brisbane that specializes in bathroom fittings, bedroom fittings, mirrors and decorative items.. It is a growing business. It has 15 stores in Brisbane area, with all stores being managed and coordinated from their head office in Milton. It has 150 staff members. The analysis of each of the aspect of the company overview is provided under the following heads. Strategic direction and Organizational objectives STRATEGIC DIRECTION The strategic directions of Houzit can be ascertained from the company's vision and mission. Houzit is a national retail brand that is satisfying the home makers' needs by providing them unique, wide variety of quality homeware products with an easy payment procedure. The mission of the company asserts that the organization is planning to move towards enlargement of its business by ensuring its presence in all the major cities of Australian market by the year 2020. The basic focus of the company is on three parameters: Quality, Unique items and Selection In this postmodern era every organization should direct their marketing strategies in way that the strategic goals could be achieved smoothly and efficiently. Strategic direction is a course of action that leads to the attainment of the set goals of a company. It is also the vision of the company that is necessary for success in giving direction for employees to follow in order to achieve set goals. Setting strategic direction involves finding a target direction and committing to get there. It begins with developing a clear vision for a company thereby increasing its competitive advantage. Mission and vision of a firm Organizational objectives • • •

Increase sales from $15million per year to $20million per year in the next three years. Increase our loyalty customers list from 10,000 to 15,000. Establish brand recognition in Brisbane so that at least 1 in 3 people recognise our brand in a random survey taken in 18 months’ time. Current size, capabilities and resources of the organization Houzit has completed almost five years of its operations. This part basically relates to the characteristics of each of the store that is under the platform of Houzit. Current size of each of the Houzit store: 1000-1500 m2 Capabilities: Each of the Houzit store has a capacity to generate the following sales breakup Bathroom fittings: 30% Bedrooms furnishings: 35% Mirrors and decorative items: 20% Lighting fixtures: 15% Resources: 15-20 fulltime employees along with number of casual workers

Houzit currently has 15 stores spread across the greater Brisbane area and the head quarter is in Milton. The strengths of Houzit are having the excellent staff that is highly skilled and knowledgeable about homewares, having a great retail space that is bright, functional and efficient for a commercial urban district, having high customer loyalty among repeat customers, having assortment of offerings that exceed competitors in quality, range and accessibility. However, the weakness of Houzit are a limited marketing budget to develop brand awareness due to the lack of critical mass and store cover and the struggle to continually fund the growing long-term repayment plans taken out by our customers. The gaps between objectives and current capabilities and resources • • • •

The objective of growing to100 Australia-wide, currently only 15 stores in Brisbane and none interstate yet. The objective of an increase in sales by 20,000 million per year, currently 15,000 million per year The objective of an increase of the loyalty customer list by 15,000, currently 10,000 The objective of a brand recognition that 1 in 3 people recognize the brand, currently have not done any survey yet. Opportunities The marketing opportunities identified to meet the objectives are franchising and joint venture. However when applying those 2 marketing opportunities we need to identify its risks and benefits. Benefits Products and services will have already established a market share. Therefore there will be no need for market testing. A franchise enables a small business to compete with big businesses, more so than an Franchising independent small business, due to the pool of support from the franchisor and network of other franchisees. Organisation can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network. Joint venture Gaining access to expertise without the need to hire more staff. Leveraging existing technologies and patents developed by other companies. Sharing the risk of high-leverage, but uncertain ventures.

Risks Costs may be higher than expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor. After time ongoing franchisor monitoring might become intrusive Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough Coping with differing cultures, management styles, and working relationships that prevail in each company. Managing communication with senior managers and employees in both companies so there’s a consistent understanding of the objectives of the joint venture. Making poor tactical decisions caused by

a misunderstanding of the roles of each company.

As the Marketing Manager, the franchising are recommended as the best addresses objectives according to the objectives and the benefits of franchising mentioned above and the marketing mix strategy will be used and applied in order to fits within the capabilities and resources of Houzit. Marketing is integral to the success of a business, large or small, with its primary focus on quality, consumer value and customer satisfaction. 1. A strategy commonly utilized is the "Marketing Mix". This tool is made up of four variables known as the "Four P's" of marketing. The marketing mix blends these variables together to produce the results it wants to achieve in its specific target market. The following describes the four P's of marketing: •

Product Products are the goods and services that your business provides for sale to your target market. When developing a product you should consider quality, design, features, packaging, customer service and any subsequent after-sales service.

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Place Place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.

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Price Price concerns the amount of money that customers must pay in order to purchase your products. There are a number of considerations in relation to price including price setting, discounting, credit and cash purchases as well as credit collection.

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Promotion Promotion refers to the act of communicating the benefits and value of your product to consumers. It then involves persuading general consumers to become customers of your business using methods such as advertising, direct marketing, personal selling and sales promotion 2. Value chain analysis A value chain is the full range of activities including design, production, marketing and distribution. As Houzit is specializes in bathroom fittings, bedroom fittings, mirrors and

decorative items. We need to know what are the raw materials used to make the products and what is added to it before it is sold to customer so we can deliver the best value to the customers.

The metrics to be used in measuring marketing performance of Houzit include 1. By monitoring and analyzing marketing performance metrics, brands can increase their competitive intelligence, assess their market strengths and weaknesses, and make calculated budgetary decisions across the marketing mix. 2. Return on marketing investment (ROMI), marketing return on investment (ROI) and return-on-marketing-objective (ROMO) are examples of marketing performance metrics used by major brands to prioritize and allocate marketing investments.