Organizational overview : Strategic direction and objectives

Organizational overview
Houzit is considered as a market leading and national recognized retail brand in
home ware. The following marketing strategy has been recommended after careful
analyzing the companies past year’s performances, market shares, and customers’
base. In order to expand the company and coupe with its latest operational and
marketing plan
Vision
‘Houzit will be a national retrial brand, catering to their needs of home makers with a
range of unique, high quality homewares made accessible to all through our easy to
manage payment plan.’
Mission statement
‘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 Australian wide.’
Strategic direction and objectives
Their strategic direction and objectives are:
 Increase sales from $15 million per year to $20 million per year in the next
three years
 Expand numbers of retail stores in every Australian capital city
 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 their brand in a random survey taken in 18 months time.
 Expand to over 100 stores by 2020
Current size
Currently have 15 stores spread across their greater Brisbane area
Currently the typical Houzit store includes:
 Location – A commercial, suburban neighbourhood urban retail district
 Design – bright and functional
 Size – 1 000 – 1 500 m2
 Employees – 15 – 20 full time, plus several casuals
 Types of transactions – 60% cash, 40% on long-term repayment plan
Capabilities and resource of the organization
 Human resources
Houzit has the valuable assets, which is human resources, 15-20 fulltime employees
along with number of casual workers. Staffs work are excellent with highly skilled
and knowledgeable about home wares.

 Physical resources
Especially for a commercial urban district Houzit possesses a great retail
space that is bright, functional and efficient
• Loyal skilled and experienced employees
Strength and Weakness
Strengths
 Excellent staff who are highly
skilled and knowledgeable about
home wares.
 Great retail space that is bright,
functional and efficient for a
commercial urban district
 High customer loyalty among
repeat customers
 Assortment of offering that
exceeds competitors’ offering in
quality, range and accessibility.
Weaknesses
 A limited marketing budget to
develop brand awareness due to
the lack of a critical mass and
store cover
 The struggle to continually fund
the growing long-term
repayment plans taken out by
the customers.
Gap between the objectives, and current capabilities and resources
The organization currently have limited marketing budget that could fund the
marketing activities in order to enable the organization to reach its objectives. Hence
their current capabilities are limiting them in achieving their objectives within the
desired timeline. In addition to create brand recognition within limited time, it has to
focus on promotion or endorsement of product. the company also has to focus on
the quality of products and services and competition from local independent
retailers.
Opportunities
a) opportunities suggested:
Joint Venture
A joint venture is a common way of combining resources and expertise of two
otherwise unrelated companies. There are many benefits to this type of partnership,
but it is not without risks - arrangements of this sort can be highly complex.
This partnership can happen between goliaths in an industry. It can also occur
between two small businesses that believe partnering will help them successfully
fight their bigger competitors.
b) The risk
 access to new markets and distribution networks
 increased capacity
 sharing of risks and costs with a partner

 access to greater resources, including specialised staff, technology and
finance
c) Benefits
 he objectives of the venture are not 100 per cent clear and communicated to
everyone involved
 the partners have different objectives for the joint venture
 there is an imbalance in levels of expertise, investment or assets brought into
the venture by the different partners
 different cultures and management styles result in poor integration and
cooperation
 the partners don't provide sufficient leadership and support in the early
stages
Franchise
Franchising is based on a marketing concept which can be adopted by an
organization as a strategy for business expansion. Where implemented, a franchisor
licenses its know-how, procedures, intellectual property, use of its business model,
brand, and rights to sell its branded products and services to a franchisee
The risk
 Business expansion without investing heavy capital
 Malpractices and affect the whole brand image
 Get royalty in return
 It is considerably difficult to keep an eye on each and every aspect of the
product and services offered by franchisee
Benefits
 he objectives of the venture are not 100 per cent clear and communicated to
everyone involved
 the partners have different objectives for the joint venture
 there is an imbalance in levels of expertise, investment or assets brought into
the venture by the different partners
 different cultures and management styles result in poor integration and
cooperation
 the partners don't provide sufficient leadership and support in the early
stages
Digital Marketing
An effective digital marketing strategy will help you take the right decisions to make
a company successful online. A strategy process model provides a framework that
gives a logical sequence to follow to ensure inclusion of all key activities of strategy
development and implementation. In addition, the company focuses on penetrative

pricing strategies. This could help to increase the market share by selling the
products and service comparatively at low price
The risk
 Higher transparency of pricing and increased price competition
 Security, privacy issues
 Worldwide competition through globalisation
 Maintenance costs due to a constantly evolving environment
Benefits
 Reduction in costs through automation and use of electronic mediathe
partners have different objectives for the joint venture
 Faster response to both marketers and the end userdifferent cultures and
management styles result in poor integration and cooperation
 Increased ability to measure and collect data
 Increased exposure of products and services
d) The opportunity that best address the organizational objective:
The organization Houzit could emphasize on demography. This means while
designing the product and services, they could focus on life style of people, their age,
income, family rituals and other demography. Thus, the customers could stratify
their needs buying those products that are designed based on their life. In addition,
to increase the sales volumes, the company could also pay attention to lead the
business in global market. By developing a high quality of products and services, the
company could enter into global market. In such a case, the initial phase of
implementing this opportunity is to focus on digital marketing.
e) Marketing Mix Strategy