Marketing Plan for Houzit Chain of Homeware Stores

This report prepares a marketing plan that can be used by the Houzit chain of stores for expansion, that includes the strategies, marketing positioning and tactics that will also go into making such a marketing plan a success.

Running Head: MARKETING PLAN
Marketing Plan
Name of the Student
Name of the University
Author Note

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Executive Summary
Houzit is a large chain of homeware stores operating in the Australian city of Brisbane.
Since the store is doing quite well for itself and is earning great revenue for its unique and high
quality home ware products, it is now looking to expand its presence to greater Brisbane and
other important cities and towns of Australia like Sydney and Adelaide where it can also do good
business. This report prepares a marketing plan that can be used by the Houzit chain of stores for
such expansion, that includes the strategies, marketing positioning and tactics that will also go
into making such a marketing plan a success.

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Table of Contents
Table of Contents
Introduction......................................................................................................................................3
1. Organizational Overview.........................................................................................................3
1.1. Strategic Direction and Organizational Objectives...........................................................3
1.1.1. Vision of the Company..................................................................................................3
1.1.2. Mission of the Company...............................................................................................3
1.1.3. Organizational Objectives.............................................................................................4
2. Opportunities............................................................................................................................4
2.1. Identification of Two Marketing Opportunities................................................................4
2.1.1. In operation for more than 5 Years and produces a wide range of Household goods...4
2.1.2. Risks of this opportunity...............................................................................................4
2.1.3. Benefits of this opportunity...........................................................................................5
2.1.2. Good Target Market......................................................................................................5
2.1.2.1 Risks of this Opportunity..............................................................................................5
2.1.2.2. Benefits of this Opportunity......................................................................................6
A. Marketing Mix Strategy........................................................................................................6
B. Justification of Marketing Strategy......................................................................................7
C. Marketing Performance Review Strategy – Competitive Positioning..................................7

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D. Metrics to be used in Measuring Marketing Performance....................................................8
3. Tactics......................................................................................................................................8
B. Costing..................................................................................................................................8
C. Accountabilities and Responsibilities...................................................................................8
D. Plan for Coordinating and Monitoring Scheduled Activities...............................................9
E. Legal and Ethical Requirements to be Adhered to...............................................................9
F. Understanding How the Tactics Fit within the Organization’s Structure and Capabilities..9
Conclusion.....................................................................................................................................10

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Introduction
Houzit is a renowned chain of home-ware stores that specializes in the manufacture and
sale of household goods such as decorative items for the bedrooms and the bathrooms, mirrors
and other types of fittings, all of which are made available to customers at affordable prices and
on easy payment terms. Houzit is currently based in Brisbane, with operations being carried out
from its head office in Milton. This report prepares a marketing plan by analyzing two significant
opportunities that Houzit can take advantage of, based on its present situation in the Australian
market, to expand to other prominent cities and towns in the country as well.
1. Organizational Overview
1.1. Strategic Direction and Organizational Objectives
1.1.1. Vision of the Company
Houzit aims at being a renowned national retail brand by catering to the requirements of
home makers through the provision of high quality and unique homewares that will be made
available to customers via payment plans that are flexible and easy to manage..
1.1.2. Mission of the Company
By the year of 2020, Houzit aims to hold a very important retail presence in every city
and town of Australia, as far as home-ware items are concerned, by first expanding to as many as
fifteen stores in Brisbane itself and then opening another 100 stores all over the country.

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1.1.3. Organizational Objectives
 The Houzit company aims at increasing the sales profit from as much as $ 15 million in a
year to approximately $ 20 million in a year over the next three years
 The store wishes to establish what may be termed as brand recognition in the city of
Brisbane, including greater Brisbane, so that at least one person in every three persons is
able to identify and recognize the brand rather easily during the random customer surveys
that will be undertaken at the end of eighteen months.
 The store aims at increasing the number of loyal customers from ten thousand at present
to around fifteen thousand
1.1.4. Gaps between Objectives and Current Capabilities and Resources
There aren’t too many gaps between the organization’s objectives and its current
capabilities and resources. Houzit has been doing well for itself in Brisbane and has the resources
necessary to expand to other cities and towns in Australia. The fact that the organization provides
high quality products to an established and posh clientele implies that it is more than likely to
meet its objectives when expanding to other Australian towns and cities as well.
2. Opportunities
2.1. Identification of Two Marketing Opportunities
2.1.1. In operation for more than 5 Years and produces a wide range of
Household goods
The first opportunity that Houzit has in order to be able to expand now its operations to the
rest of the country, is that this is a business which has been in existence for as many as five

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years. Over the last five years, Houzit has developed an extensive range of home wares that it
makes available to customers on easy payment terms.
2.1.2. Risks of this opportunity
 Customers are likely to have high expectations from Houzit products and may get
disappointed easily if any new product is not up to the mark
 The easy payment terms can be taken advantage of by certain customers who can stall on
payments citing some issue or the other.
2.1.3. Benefits of this opportunity
 Owing to the fact that Houzit has been in operation for the last 5 years, it has a thorough
understanding of the Australian market for home wares, knowing what it is that must be
produced in order to attract customers in large numbers.
 The second benefit of this opportunity is that since Houzit makes a wide range of home
ware items available to customers, those who are on the look out for home wares of
different types will flock in large numbers to the Houzit stores because of the fantastic
variety of products on offer here.
2.1.2. Good Target Market
The second opportunity that Houzit has for expansion in Brisbane and other parts of
Australia is the fact that it has a good client base. Most of the customers for home ware products
offered by Houzit are from well to do households, who are willing to drive over to easy to access
stores to get what they want. The target customer base is also quite expansive in nature, with
target customers being aged between twenty years old and fifty years old on an average.

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2.1.2.1 Risks of this Opportunity
 It may not be always possible to retain such a large customer base when expanding
operations to other Australian cities and towns as well, as customers here may not be of
the same temperament or have the same preferences for home ware products as the
customers in Brisbane.
 Customers who are in the age group of twenty years to fifty years tend to get disinterested
easily, largely due to their spending power, and retaining the interest in home ware
products over the long term is itself a challenge, a challenge which may be present when
expanding to other Australian cities and towns as well.
2.1.2.2. Benefits of this Opportunity
 Customers in the age group of twenty years to fifty years have excellent spending
power and will be able to afford easily, all the home ware products that are launched
in the market by Houzit
 Sophisticated clientele will always have a preference for elegant and unique products,
as made available by a company like Houzit
2.2. Understanding the Opportunity that Best Suits the Organizational Objectives of
the Company
The opportunity that best addressed the organizational objectives of the company is the
fact that the company has an extensive customer base comprising of sophisticated, elegant clients
in the age group of twenty to fifty years, who have good spending power and who therefore have
the means to procure the unique home ware items that Houzit launches in the market.

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A. Marketing Mix Strategy
Product – The product to be marketed is the home ware items such as bedroom fittings,
bathroom fittings, mirrors and other decorative items that are manufactured by the Houzit group
of household furnishing stores.
Place – The place where the products will be marketed is the greater Brisbane area, after which
marketing strategies will also be implemented in other prominent cities and towns of the country
such as Sydney, Adelaide and Hobart.
Price – The price of Houzit home ware items will be fixed at $ 150 to $ 200, on an average. This
is primarily because of the fact that the company caters to a sophisticated and elegant clientele
that has good purchasing power.
Promotion – Promotional activities will be carried out extensively on social media platforms as
well as at major household goods stores and supermarkets both in Brisbane and in neighboring
Australian cities and towns. Leaflets and posters about the new Houzit stores will be distributed
at malls and shopping centers in Sydney and Adelaide where the store is looking to expand to.
B. Justification of Marketing Strategy
The marketing strategy that has been outlined above goes well with the organizational
objectives of Houzit, as it seeks to expand its customer base and increase sales in the coming
three years. This is only possible if the home ware products are made available at fixed or
unchanging prices in the initial days of expansion, with efforts being made to cater to the
interests of sophisticated and elegant clientele, the type that already make up the store’s target
consumer base at present.

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C. Marketing Performance Review Strategy – Competitive Positioning
Based on the theory of competitive advantage, the Houzit store will launch ornamental
and beautifully designed home ware items that stand out by virtue of their appearance and
quality in comparison to other home ware products that are made available in the market. The
products will also be very beautifully packaged so that they are a delight to hold onto even when
not being used. The delicate home wares will be adequately sealed so that these do not break too
easily when being delivered to the homes of customers or when being carried home by
customers.
D. Metrics to be used in Measuring Marketing Performance
Brand awareness, customer engagement and lifetime customer value are three of the
marketing metrics that will be utilized when launching the Houzit home ware products both in
greater Brisbane as well as in other parts of Australia.
3. Tactics
A. Scheduling of Activities to Enact the Strategy
 The marketing strategies will be initially carried out on social media through the creation
of promotional pages that can be liked by potential customers and a base of followers can
be created..
 The marketing strategies will be launched in the month of March and carried on till the
months of June and July after which the impact of these strategies shall be assessed.

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B. Costing
The budget for the marketing strategies and activities will be fixed at $ 50,000 to begin with.
This is largely due to the fact that the marketing or promotional activities will be limited only
to social media advertising and pamphlet and leaflet distribution to begin with.
C. Accountabilities and Responsibilities
Duties and responsibilities for carrying out the marketing plan to perfection will be
delegated among various professionals such as social media advertising professionals, search
engine optimization experts, online digital marketers and chartered accountants for doing the
necessary checks and audits.
D. Plan for Coordinating and Monitoring Scheduled Activities
 The promotional activities will be carried out over a time span of six months to one year
 At the outset, it is the social media marketing strategies that will be initiated, after which
efforts will be made to create and distribute leaflets and pamphlets containing
information about the opening of the new Houzit stores in other cities and towns of
expansion
 Three to four people will be placed in charge to oversee the marketing activities and any
lapses in strategy implementation will be detected and rectified immediately
E. Legal and Ethical Requirements to be Adhered to
 Information about the new home ware products that are to be launched by the new Houzit
stores will be kept as authentic and as accurate as possible, so that customers are able to
buy at the prices that have been explicitly advertised or mentioned at the time of the
marketing campaign.

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 Customers will be provided with a three year warranty for the products that they buy
from the new Houzit stores, and will not be asked to pay for repair and damages if
servicing or repair work is sought while the warranty period is operational.
F. Understanding How the Tactics Fit within the Organization’s Structure and
Capabilities
The tactics mentioned above are well within the means of the organizations resources and
capabilities because
a) Advertising and promotional activities will only be limited to social media marketing and
leaflet or pamphlet distributions to begin with. This will not only cost very less money
but it is also a marketing strategy that will be easy to implement, not requiring too many
people to see it through. Since Houzit is a chain that is already doing well for itself in
Brisbane, it will not even have to spend half of its resources on its new marketing
strategies for expansion.
b) Since most of the Houzit customers at the moment comprise of people in the age group of
twenty to fifty, and since the majority of the marketing and promotional activities will be
carried out online on social media, Houzit is certain to make its marketing message
known pretty well. Almost all if not all people in the age group of twenty to fifty in
Australia have social media accounts and are hooked onto platforms like Facebook and
Twitter all the time.
Conclusion
Thus, marketing the Houzit chain of stores in greater Brisbane as well as other prominent
cities and towns of Australia can certainly be done with the help of an effective and well

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thought out marketing plan. The Houzit store has been earning great revenue already, and has
a solid customer base that is not too difficult to retain, provided Houzit ensures that it keeps
up the standard or quality of its products or home wares over the long term. Houzit only has
to pay special attention to making its quality and unique home wares available at genuine
prices so that customers feel inclined to buy these over the long term.

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