Development of Marketing Strategies for Houzit

This report includes a strategic report and marketing plan for Houzit, a chain of homewares in Australia. It covers organizational overview, SWOT analysis, marketing objectives, strategies, and opportunities, marketing expense budget, and implementation.

Running Head: DEVELOPMENT OF MARKETING STRATEGIES
Topic- Marketing strategy development (Report and Marketing plan)
Student name
University name
Author notes

2MARKETING STRATEGY DEVELOPMENT
TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
ORGANIZATIONAL OVERVIEW.......................................................................................................3
OPPORTUNITIES..................................................................................................................................4
TACTICS................................................................................................................................................5
TASK 2.......................................................................................................................................................6
EXECUTIVE SUMMARY.....................................................................................................................6
SWOT ANALYSIS.................................................................................................................................6
MARKETING OBJECTIVES.................................................................................................................7
STRATEGIES AND MARKETING OPPORTUNITIES........................................................................7
MARKETING EXPENSE BUDGET......................................................................................................7
IMPLEMENTATION.............................................................................................................................7
CONCLUSION...........................................................................................................................................7

3MARKETING STRATEGY DEVELOPMENT
INTRODUCTION
The paper is a combination of two tasks. First part includes a strategic report on Houzit and the
second part includes a marketing plan of Houzit. Systematic structuring is followed in both tasks.
TASK 1
ORGANIZATIONAL OVERVIEW
STRATEGIC DIRECTIONS AND ORGANIZATIONAL OBJECTIVES
VISION STATEMENT
The vision statement of Houzit is- To be one of the national retail homeware brands,
emphasizing on the various home makers’ needs and providing a range of high quality and
unique home wares to all customers by means of our flexible and easy payment plan of ours.
MISSION STATEMENT
The mission statement of Houzit is- Houzit will focus on having a substantial retail homeware
presence in almost every capital city of Australia by the end of 2020, starting with a limited
number of 15 stores in Sydney and increasing the number to 100 considerably in the coming
years.
OBJECTIVES
 Increase in overall sales in the coming 3 years from $15 million annually to $20 million
annually.
 Increase the list of loyal customers from 10,000 to 15,000
 Focus on brand recognition establishment in Sydney, so that 1 in 3 people recognize
Houzit brand when a arbitrary survey is conducted in 18 months’ period interval.

4MARKETING STRATEGY DEVELOPMENT
THE CURRENT SIZE, CAPABILITIES AND RESOURCES OF HOUZIT INCLUDING
NOTABLE STRENGTHS AND WEAKNESSES
Current size 1000-1500 sq. mts
Capabilities The main USPs of Houzit are quality, uniqueness and choice preference
options
Resources Have 15-20 full time employees and some casuals.
STRENGTHS AND WEAKNESSES
Strengths Weaknesses
 Excellent staff support, who are highly
skilled and have prior knowledge of
homewares
 Excellent location and great retail
space that is functional, bright and
commercially efficient for urban
district.
 High customer loyalty among existing
customers
 Offering high quality products in
comparison to customers
 A limited marketing budget for
developing brand awareness.
 Lack of critical mass and store cover
 Growing long term repayment plans
of customers made the company
struggle on fund supply issues.

5MARKETING STRATEGY DEVELOPMENT
GAPS BETWEEN THE OBJECTIVES AND THE CURRENT CAPABILITIES AND
RESOURCES
Resources are not in pace with the objectives of Houzit because limited resource of 15-20
employees will not be sufficient for meeting the said objectives.
OPPORTUNITIES
MARKETING OPPORTUNITIES
Two marketing opportunities that meet the objectives of Houzit are,
 Scope of increase in sales outside the target area of Sydney.
 A noteworthy part of the target market is not conscious of Houzit and its market
contribution.
Risk of increase in sales outside target area Sydney is that market competition will increase and
covering a larger sales area with limited resource is not an easy task. Penetrating the target
market will be secondary if focus is shifted to newer areas. Benefit is that customer gain will
improve and brand recognition will increase considerably.
Risk of non-market awareness about the company will not have good impression on end results
as customers will need time and buying experience to have loyalty and trust on it. So, in-spite of
huge promotional campaigns sales will not be achieved. Benefit is that people may try this new
brand as Houzit is offering more than its market competitors.
BEST OPPORTUNITY RECOMMENDATION

6MARKETING STRATEGY DEVELOPMENT
Best opportunity may be new market exploration and targeting sales outside Sydney. Because if
new market can be attracted then positive word of mouth will help in engaging customers and so
both objectives will be attained considerably.
Marketing mix based on capability and resource
Marketing mix(4Ps) Attributes
Product Bedroom fittings and bathroom fittings
products need to be emphasized more as their
sales will increase considerably. Product
quality, uniqueness and large choice selection
options need to be focused more. Newly
added product of lighting fixture needs more
attention due to sustainability issue raised by
government. First purchase opportunity for
mirrors and decorative items need to be
specially designed so that customers are
satisfied with their purchase.
Price Prices are fair and payment options are also
good but the long-term repayment plan need
to be revised so that contingency situation can
be limited.
Place New places outside Sydney need to be
focused so that the company’s brand name
and recognition enhances. To support

7MARKETING STRATEGY DEVELOPMENT
company mission diversification of stores is
mandatory and new stores should be set up all
over Australia.
Promotion Loyalty in customers will help in promoting
the brand by their word of mouth. Higher
offerings in relation to competitors will help
in better product promotions and their bright
lighted up store uniqueness will be their
Unique Selling Proposition.
When the marketing mixes are considered, every strategy adopted are in line with organizational
mission and vision.
The competitive analysis model will help in better performance review of the marketing
objectives of Houzit. The analysis strategies include,
 Both Company’s customers and competitor’s customers were consulted and their
feedback is collected. Their comparative feedback will help in better product knowledge.
 Competitors’ strategies need to be follow-up-ed so that value offerings gain added
advantage.
 Competitors products and services need to be purchased and their process output need to
be followed if required
 Application of reverse engineering in competitor’s product supply will help in better
marketing insight knowhow

8MARKETING STRATEGY DEVELOPMENT
 Every employee related to the field need to be enquired and their feedback is to be
collected to have a clear position of the company in the market.
Ansoff’s product market growth matrix will help in measuring marketing performance by
suggesting business growth strategies.
TACTICS
The tactics used by Houzit may include TV advertisement, commercials, magazine ads, social
media promotions and other retail promotions. The activity scheduling process involves focus on
best alternative, here retail promotions of a wide range of product variety, communicating with
end customers about the benefits of the promotional tool and how they could gain competitive
advantage in purchase over other competitive stores. The best payment options are provided by
Houzit where customers could avail long term loan repayment option with three-year product
guarantee. Regular and timely follow up will end in high rate of success. The cost of the products
should be lower in comparison to the competitors and Houzit should show more accountability
and responsibility in areas of product delivery and product fittings. Being a homeware store
Houzit should include KPI of quality product delivery at the most affordable cost and some
unique product development strategies.
For retail promotions the company need to abide by the legal governmental rules of sustainability
focusing on waste management and energy conservation and considering ethical requirements,
employees need to be transparent while providing customers about the product details. No
information should be hidden from the customers and need to be treated fairly under any
circumstances.

9MARKETING STRATEGY DEVELOPMENT
The tactics fit well within the organizational resource and capabilities and provide short term
solutions to support company vision in the long run.
TASK 2
Marketing plan
EXECUTIVE SUMMARY
Houzit is a chain of homewares in Australia and is operating for its 5th year in this segment. It
aims at having national brand recognition by providing wide range of unique home supplies to
customers by the help of its easy payment plans. It also aims to have significant retail homeware
presence in every Australian market by the end of 2020. It aims to diversify from 50 stores in
Sydney to 100 all over Australia.
SWOT ANALYSIS
STRENGTHS
 Excellent knowledgeable staff support
 Great retail space and store
positioning
 Existing customers have high loyalty
levels
 High offering levels in quality,
accessibility and range in comparison
to customers
WEAKNESSES
 Limited budget for promoting brand
awareness and lack of store cover
 Difficulty in funding long term
repayment plans of customers
OPPORTUNITIES THREATS

10MARKETING STRATEGY DEVELOPMENT
 Has high growth area and target
market is not aware of its growth and
offers so there is an opportunity for
success
 Increased sales opportunity outside
Sydney
 Competition from local and
independent retailers
 Low overhead costs and store prices
 Competition from global retail chain
(like Amazon)
 Reduced spend of disposable income
on homewares by customers
MARKETING OBJECTIVES
The SMART Marketing objectives include increase in sales from $15 million to $20 million in
the next 3-year timeline, loyalty customer list need to be expanded from 10,000 to 15,000 and
finally focus on brand recognition so that one in three Australians could identity the company
and its brand name.
STRATEGIES AND MARKETING OPPORTUNITIES
Houzit in order to make national impact on Australian market need to focus on new market
entrance opportunities and also on brand name. Existing customers’ loyalty basis is to be used as
a tool for having new customers and risk of market failure and gap analysis is to be made based
on SWOT of Houzit.
MARKETING EXPENSE BUDGET
For the next three years
Expense items Year 2018 Year 2019 Year 2020
Advertising $2.5 million $2.5 million $2 million

11MARKETING STRATEGY DEVELOPMENT
Promotions $2 million $2.5 million $3 million
Product development $5 million $5 million $7 million
Customer services $5 million $5 million $6 million
Employee training $0.2 million $0.2 million $0.2 million
Other $0.3 million $0.3 million $1.8 million
Total $15 million $15.5 million $20 million
IMPLEMENTATION
The tactics devised include enhanced retail advertising support along with extensive
communication with customers so that their loyalty remains undisturbed and they find the
product of their choice from the wide variety of product line. Governmental issue on
sustainability need to be addressed at the earliest.
CONCLUSION
To conclude it can be said that Houzit need to be stronger in its marketing strategies and need to
increase workforce support to have long term goal accomplishment.

12MARKETING STRATEGY DEVELOPMENT

13MARKETING STRATEGY DEVELOPMENT