Assessment 2 BSBMKG609 (1) (1)

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Assessment 2 BSBMKG609 (1) (1)

BSBMKG609 Develop a Marketing Plan

Assessment 2

Houzit Marketing Plan

a. Executive Summary

introduction of Houzit

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.

The CEO has also asked you to consider some marketing opportunities that may assist Houzit in reaching its goals, and provide him with brief summary evaluating two alternatives, including the benefits and risks associated with each option, and making a recommendation for the opportunity most likely to produce results.

STRATEGIC DIRECTION

  • Increase sales from $15 Million to 20 Million per year within the next 3 years
  • Increase our loyalty customers list from 10,000 to 15,000
  • Establish brand recognition in Brisbane so that 1 in 3 people can recognise the Houzit Brand name.
  • Current Size

    There are currently 15 stores in the Brisbane greater Brisbane area. Each store has the following specifications:

  • Bright and functional design
  • Good, convenient locations
  • Size between 1,000 – 1,500 m2
  • 15-20 full time staff and some casual workers
  • Capabilities

    Houzit understands the markets that are attracted to the Houzit products such as:

  • People who are proud of their house
  • Shoppers that like convenient location
  • Offer alternative payment options
  • Renovators or home builders
  • b. SWOT analysis

    Strengths:

    ● Excellent staff who are highly skilled and knowledgeable about homewares.

    ● Great retail space that is bright, functional and efficient for a commercial urban district.

    ● High customer loyalty among repeat customers.

    ● Assortment of offerings that exceed competitors’ offerings in quality, range and accessibility.

    Weaknesses:

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

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

    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.

    Threats:

    ● Competition from local independent retailers can drive down prices, as owner operators have lover overhead costs than our staff-run stores.

    ......

    Assessment 2 BSBMKG609 (1) (1)
    Last updated: Feb 2024

    Page 1

    ● Competition from local independent 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.

    c. Marketing objectives

  • Increase sales from $15 Million to 20 Million per year within the next 3 years
  • Increase our loyalty customers list from 10,000 to 15,000
  • Establish brand recognition in Brisbane so that 1 in 3 people can recognise the Houzit Brand name.
  • d. Strategies

    Joint venturing is the best method because it involves sharing ownership and control with the other local companies. These companies have more experience in the new market and can help the Houzit company to grow. In some issues, local companies can do it better than international company such as how to distribute products to local people or some political policies. To be successful in business, better to have strong commitment with local companies that can support our business.

    These are the options:

    Exporting is a very safe and very common strategy that many exporting businesses take, however joint venture would be much more suitable for Houzit, until Houzit feels comfortable enough to make own decisions and support itself in the market.

    Exporting

    Risks:

  • Unless you’re careful, you can lose focus on your home markets and existing customers.
  • Your administration costs may rise as you may have to deal with export regulations when trading outside the European Union.
  • You will be managing more remote relationships, sometimes thousands of miles away.
  • Benefits:

  • You could significantly expand your markets, leaving you less dependent on any single one.
  • Greater production can lead to larger economies of scale and better margins.
  • Your research and development budget could work harder as you can change existing products to suit new markets.
  • Joint Venture

    Risks:

  • finding the right people to work with takes time and effort
  • JV’s can fail if
  • objectives are not clear to all parties
  • imbalance between what the parties bring to the JV eg in financial resources, expertise or time
  • Benefits:

  • access to new and / or complimentary expertise. staff, skillsets and technology
  • access to related businesses or new geographic markets or gain new technological knowledge
  • sharing of financial risk
  • Flexibility
  • Direct Investment

    Risks:

    Investment of a foreign company with its new technologies and products has several disadvantages for local businesses. New products arriving at lower prices create competition and force local businesses to lower their prices and reorganize their operations in terms of…

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    Assessment 2 BSBMKG609 (1) (1)
    Last updated: Feb 2024

    Page 2

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