Assessment 1 kwangza (1)

BSBMKG609 Develop a Marketing Plan

Assessment 1

1. Introduction

Briefly discuss the organization and the purpose of the report.

Organisational Overview

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.

You have recently been appointed as the marketing manager and must now review the organisation and devise marketing strategies that will move Houzit towards its strategic goals.

Purpose of the report

A major purpose of the report is to set the company on a specific course in marketing. Goals of marketing generally align with broader company objectives. A new company looking to grow, for instance, often has a marketing plan that emphasizes strategies to increase customer base. A low penetration pricing strategy is a common technique in this case. Gaining marketing share, increasing customer awareness and building favorable attitudes are other common objectives. The objectives element of a marketing plan helps companies ensure all marketing investments have a target.

2. Organisational Overview

Discuss the Strategic Direction and Organisational Objectives of Houzit

Strategic Direction

Houzits Mission

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.

Organisational Objectives

1. Increase sales from $15million per year to $20million per year in the next three years.

2. Increase our loyalty customers list from 10,000 to 15,000.

3. 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.

b. Discuss Current size, Capabilities and Resources of the Organisation, including any notable strengths and weaknesses

Current size

○ The typical Houzit store has the following characteristics: Size – 1,000–1,500 m2.

Capabilities and Resources

○ Employees – 15–20 full time, plus several casuals, They currently have 15 stores spread across the greater Brisbane area, with all stores being managed and coordinated from their head office in Milton.

Strengths:

Excellent staff who are highly skilled and knowledgeable about homewares.

Great retail space that is bright, functional and efficient for a commercialurbandistrict.

High customer loyalty among repeat customers.

Assortment of offerings that exceed competitors’ offerings in quality, range andaccessibility.

Weaknesses :

A limited marketing budget to develop brand awareness due to the lack of critical mass and store cover.

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The struggle to continually fund the growing long-term repayment plans taken out by our customers.

c. Discuss the Gaps between the objectives and the current capabilities and resources

For the organisation objectives, the company need to

Recruit more staff for specific position for example need to build very strong marketing team to to continually fund the growing long-term repayment plans taken out by our customers.

Resource like products need to improve to win over the competitors such as many level of quality, variety of the product

Expand more brunch to other big city like Melbourne and Sydney because the target group of

the 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

renovators and new home builders

Melbourne and Sydney are cities which is property (like house, apartment ) growing rapidly so this will be one of the best opportunity to open some store in these two cities.

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3. Opportunities

Identify two marketing opportunities (choose from Joint Venture, Franchising, Strategic Alliances, Merger or Acquisition) which meet the objectives and evaluate the risks and benefits of each opportunity.

1.Franchising

Benefit of franchising

Franchising provides expansion capital

Avoids employee related problems

Accelerates expansion over wide area

Franchisee operators are motivated to succeed

Risk of franchising

Sharing profits

Loss of absolute control

Lawsuits with unprofitable and/or difficult franchisees

State and federal franchise disclosure laws

2. Strategic Alliances

Benefit of Strategic Alliances

Access to Supplementary Services 

One of the most attractive benefits of an alliance with another business is the opportunity to offer supplementary services to clients that otherwise would not be available.

opportunity to Reach New Markets 

Entering a strategic alliance will automatically increase awareness of a brand among an entirely new market that the franchise business has not had the resources to reach beforehand.

Increased Brand Awareness 

The opportunity to grow market size with a partnership presents the additional opportunity to increase awareness of the brand

Risk of Strategic Alliances

loss of control

When you form the alliance with…

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