BSBMKG609A - Houzit: Developing a Marketing Plan for Growth

This report details a marketing plan for Houzit, a homewares business in Brisbane, aiming to achieve organizational goals through various strategies and tactics. The plan includes an organizational overview, SWOT analysis, and marketing objectives such as expanding business to major Australian cities, increasing annual sales, and enhancing brand recognition. Key marketing opportunities identified are digitalization and penetrative pricing strategies, emphasizing a demographic approach to product design based on customer needs. The marketing mix (4Ps) is discussed, along with competitive analysis and metrics for measuring marketing performance. Implementation tactics cover scheduling, costing, accountabilities, and monitoring activities, considering legal and ethical requirements. The executive summary presents a concise overview of the plan, including SWOT analysis and marketing objectives. The report concludes with a presentation of the marketing plan, outlining activities, implementation timelines, benefits, and feedback mechanisms, all geared toward achieving sustainable business growth.

Develop Marketing Plan
1

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Develop marketing strategies.......................................................................................................4
1). Organisational Overview........................................................................................................4
2). Opportunities..........................................................................................................................6
3) Tactics......................................................................................................................................9
Task 2.............................................................................................................................................10
1). Prepare and present a marketing plan...................................................................................10
2). Presentation of the Plan........................................................................................................12
Conclusion.....................................................................................................................................15
Reference:......................................................................................................................................16
2

Introduction
This report consists of the marketing plans and strategies for attaining the organisational
goals and objectives. It’s been almost 5 years that Houzit came into existence to provide the
products of the homeware in the Brisbane. The organisation tries to maintain the quality of
the product for retaining the customers. It also consists of the plans and techniques which
are to be adopted by the Houzit for expanding the business and the promoting its products.
3

Task 1
Develop marketing strategies
1). Organisational Overview
Houzit is a renowned organisation which deals in the product of homewares like the extensive
variety of mirrors, bedroom fitting, bathroom fittings and other decorative items, having various
stores in Brisbane. Under this part, the characteristics of the stores of the company are
described as the size of the store of the company varies between 1000-1500m2. The
company has a huge amount of casual employees and 15 – 20 full-time employees. On the
other hand, the company has a variety of products which are different from the market and
to increase the sales of the product, they allow payment through various methods.
Strategic Direction
It can be understood from the vision and mission of the company that the strategic direction of
the company is to provide better quality products to the customer, along with a variety of product
which is different from the market. The company also provides simple payment system. The
main focus of the company is to maintain quality, introducing unique and new products
(Haigh, et. al., 2015).
Organisational objectives
 The objective of the company is to expand the business to the certain major cities of
Australia’s market till the year 2020 and wants to enhance the number of the store
from 15 to 100.
 The company wants to increase the annual sales by $ 5 million p.a. i.e., from $ 15
million p.a. to $20 million p.a. in the period of three years.
 The organisation wants to build an image and goodwill of the company which will
result in recognition of the brand by 1 out of 3 persons. The same will be made sure
by conducting a survey within 18 months.
 To add 5000 customers to the list of loyal customers making it the total of 15,000
customers.
4

Strengths and Weaknesses
Strengths 1). The employees of the organisation are
skilled, have extensive knowledge related
to their world and are trained properly.
2). Enhancement of the customer loyalty.
3). Varieties of products to attract more
customers.
4). Better quality products at price lower
than its competitors.
Weaknesses 1). Allowing credit payments by the
customers which results in restrictions on
liquidity of the funds.
2). Low marketing budget by which the
company fails to promote the brand.
(Bull, et. al., 2016).
Gaps between the objectives, the current capabilities, and resources
It is seen from the above analysis that the aim of the company is to enhance the sales within
three years. Houzit may suffer from scarcity of finance as the organisation has inadequate
finances and to implement the aims of the company large capital is required. Also, to
increase the sale the establishment of more stores is needed and which will require hiring of
more manpower. For enhancing the sales of the company and to create goodwill of the
company, promotion of the products is required to be done. Apart from reaching its
objectives, the company is needed to maintain the quality of products and services. All these
activities require a huge investment of finance.
5

2). Opportunities
Marketing Opportunities
Houzit have the opportunities to achieve its goals. To meet the organisational goals, the
organisation must focus on:
Digitalisation: This means introducing the use of digital methods rather the performing the
task manually which includes selling and buying also. The company must set up an online
site to attract the customers that are unable to reach to the stores. It will allow the
organisation to reach the customers at large which will enhance the sale of the company.
The risk involved in adoption of digitalisation in the organisations is that the customers
didn’t have proper knowledge to use the digital means will not be attracts through this.
Penetrative Pricing strategies: In this era of aggressive market, it is necessary that the
organisation must adopt effective pricing strategies. This means providing good quality
products and services to the customers at low prices which will increase the demand of the
products. This will also result in having advancement over the competitors. After the
demand of the products is increased, the prices of the products can be increased again.
This risk involved in this strategy is that the demand of the products will decrease with the
rise in the price of the products as the customers may not buy the products at high prices
(Handlin, 2017).
Recommending the Marketing Opportunities
However, it is suggested that the company must be a demographic company which means
that designing and producing the products according to the needs of the customers. The
focal point of the company must be to design and produce the goods according to the living
standards of the people, earning of the family, age, etc. It is essential for a business to grow.
Houzit, being a company located in Brisbane, have the opportunities to expand its business
in Australia due to the increase in demand in its major regions. For reaching the
6

organisational goals, the products shall be designed as per the requirements of the customers
of these regions.
Marketing Mix
The implementation of 4p’s marketing mix strategies plays a vital role in enhancing the sale
of the company.
 Price: The price of the product must be value for money and is to be decided by
focusing on the class of the customers. The customer always craves for good quality
products along with matching cost of such products. So, it is essential for the Houzit
to reach organisational goals to adopt effective pricing strategy.
 Products: The products are designed according to the needs of the customers. As the
company wants to expand its business in Australia, the products must be designed
according to the demand of the products. As it is provided that the customers are
looking for different varieties of products, then Houzit must produce accordingly.
 Promotion: It is significant to promote the products for increasing its sale. A product
must be properly advertised by through social media, television, newspapers, etc.
This informs the customers about the new products and its features.
 Place: Houzit must establish the store of the homewares where there is a high
demand of such products or it must be established at places which are easily
accessible. This will enhance the sale volume of the company (Mondaq, 2012).
The strategies discussed above are aligned with the objectives of the organisation. The
strategy for entering into the market is associated with strategies of enhancing the sale. This
will build an image and goodwill in the mind of the customers which attracts them towards
the products.
Detailed Marketing Performance
There are various tools which explain the marketing performance of the company but for
this task competitive analysis has been selected.
7

Competitive Analysis: With the running of the business, the company faces some
challenges along with the growing opportunities of the company. These challenges are:
Uniqueness: The customers of Houzit demands for the different products then the products
available in the market. It is essential to maintain such uniqueness with the change in the
taste of the customers. The organisation may face difficulties in this.
Market Share: It is necessary for a business to cover more and more market to increase the
sales volume. The company suffers when there is a rise in competitiveness with the increase
in new entrants in the market (Fleisher and Bensoussan, 2015).
Metrics for measuring marketing performance
Awareness of the Products: It is significant to increase the sale of the product to provide
information to the customers so that the customers are aware about the benefits of the
products.
Customer Loyalty: Houzit must provide different benefits to the customers using the
products or who are associated with the company from a long time. This will help the
company to retain the customers.
8

9

3) Tactics
Tactics for implementation of the strategy
a). Scheduling for marketing activities: For the growth of the business, the top level
management is required to scrutinize and assess the progress of the marketing activates.
This will help the company to achieve its objective more efficiently.
b). Costing: For expanding the business in major cities of Australia, a huge investment of
funds is required.
c). Accountabilities and Responsibilities: For effective working of the organisation, it is
important that the personnel involved in such working perform the task assigned to them
responsibly. They must also assist other colleagues too.
d). A plan for coordinating and monitoring scheduled activities including KPI’s:
Every activity of the organisation is to be monitored and coordinated by the management of
the company including the “Key Performance Indicator”. KPI helps to evaluate the success
of the organisation.
Legal and Ethical Requirements
These strategies or the tactics have legal and ethical impact on the business. By following
the norms and laws applicable on the organisation, the company can enhance its image in
the eyes of law as well as customers whereas by understanding the social values of the
customers, they may utilise the services and products of the organisation for a long time
(Lord Paul Bew, 2014).
The tactics aligned with the organisational resources and capabilities
These tactics mentioned above are constant with the resources and capabilities of the
organisation. The company have restricted budgets but is able to meet with the promoting
the products and enhancing the sales.
10

Task 2
1). Prepare and present a marketing plan
a). Executive Summary
The organisation was established almost 5 years ago for providing the products and services
of the home wares to the customers in Brisbane. Houzit have various objectives which are to
be achieved by the company. Various strategies and tactics are to be adopted by the company
for meeting the organisational objectives.
b) SWOT Analysis
Strength Trained and skilled staff and have
knowledge about the working. Huge space
for the stores to attract more customers.
Maintains good quality.
Weakness Lack of Budget for promoting the product.
Liquidity problem due to credit facility for
the customers.
Opportunities Increase in demand of the products and
increase in sale outside the Brisbane.
Threats Increase in competition due to the new
entrants and local retailers. Change in taste
of the customers.
(Grant, 2016).
c). Marketing Objectives:
 To increase the customers from 15000 to 20000 customers to the list of loyal
customers.
 Increase in number of stores from 15 to 100.
11

 Increasing the annual sales by $ 5 million p.a. and reaching the goal of achieving $
20 million p.a. in three years.
d). Strategies:
The company have marketing opportunities like expanding the business over different
regions. It is called demographic business. Production of the products in accordance with
the needs of the customer, their lifestyles, age, income, etc. The company here wants to
reach into the major cities of Australia.
e). Implementation:
The implementation of strategies and tactics is an essential activity for the growth of the
organisation. It is necessary for the working of the organisation to schedule the marketing
strategies properly. These strategies are implemented and monitored by the higher
management. This helps in reaching the organisational objectives and increasing the demand
of the customer.
12