Marketing Strategies and Implementation for Houzit Retail Chain

This report provides an executive summary of Houzit, a home-ware retail chain specializing in bathroom fittings, bedroom furnishings, and decorative items. The primary objective is to increase annual turnover, expand the customer base, and enhance brand awareness. The report outlines a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. Marketing objectives include increasing sales, growing the customer base, and establishing brand recognition. The strategies focus on market growth through franchising and mergers/acquisitions, alongside product diversification, pricing strategies, and promotional activities. The implementation plan includes scheduling, budgeting, and assigning roles and responsibilities for marketing activities, along with a monitoring process to ensure effective strategy execution. The report emphasizes the importance of a marketing mix that includes product, price, place and promotion to achieve the set marketing objectives.

MARKETING
STRATEGIES

EXECUTIVE SUMMARY
This report describes the overview of a company Houzit which is a home-ware retail
chain and provides bathroom fittings, bedroom furnishing items and decorative items for a
house. Further, its objective is to increase it’s per year turnover, customer base and brand
awareness among non-targeted customers. In order to achieve this objectives, marketing
strategies have been formulated by the marketing manager and has been implemented using
various tactics so that effectively it can be implemented.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 2............................................................................................................................................4
A. SWOT ANALYSIS................................................................................................................4
B. MARKETING OBJECTIVES................................................................................................5
C. STRATEGIES.........................................................................................................................6
D. IMPLEMNETATION.............................................................................................................7
BIBLIOGRAPHY..........................................................................................................................10

INTRODUCTION
Marketing strategies particularly known as a plan of action which has been designed by
the company for promoting and selling its products and services in the market. Moreover, these
strategies must be designed and alter as per the changing environmental condition in order to
stay aligned with the latest trend [1]. Furthermore, they are made by the company to do
marketing of their products and services in an effective manner. Moreover, the present report
describes the marketing strategies of Houzit which is a chain of home wares stores in Brisbane
which is headquartered in Milton. It specializes in bathroom fittings, bedroom fittings and
decorative items. Furthermore, the report describes the organizational overview and its
objectives. Along with that, it also focuses on identifying the available opportunities by doing the
environmental and risk analysis. At last, the tactics have been suggested for implementing these
strategies in the market [2].
TASK 2
A. SWOT ANALYSIS
SWOT analysis of Houzit has been done by its marketing manager in order to scan the
organization internally and externally.
Strength Weaknesses
 Staff is excellent, skilled and
knowledgeable in terms of home-wares.
 Retail space is huge and has bright
lightening, functional as well as
 Marketing budget is limited due which
brand awareness cannot be done in a
proper manner.
 Struggle for continuity in funding for
1 Ferrell, O.C. and Hartline, M., 2012. Marketing strategy, text and cases. Nelson Education.
2 How to develop a marketing strategy. 2010. [Online]. Available through <
http://www.smarta.com/advice/sales-and-marketing/advertising-and-marketing/how-to-develop-
a-marketing-strategy/>. [Accessed on 12th October, 2017].

commercial urban district (3).
 Customer loyalty is high.
 High number of offerings and in
different varieties which exceeds the
offering of competitors in terms of
quality, accessibility and range.
the growing long-term repayments
plans which have been taken by the
customers.
Opportunities Threats
 Market is growing in a high growth
area.
 Target market can be grown by creating
awareness about the brand among
potential customers.
 Sales opportunities can be increased
other than the target area.
 Competition is high from the local
independent retailers.
 High competition from national chains
which are establishing in Brisbane
market.
 A crunch in economy reducing
purchasing power of the customer on
home-wares.
B. MARKETING OBJECTIVES
In a general term, these are goals which have been set by a business during the promotion
of its products and services to the potential customers (4). Few marketing objectives which have
been set by Houzit for the current year is as follows:
 To increase its sales from $15 million per year to $20 million per year in the coming 3
years.
 To enhance its loyal customers list from 10,000 to 15,000 customers.
3 Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
4 Varadarajan, R., 2010. Strategic marketing and marketing strategy: domain, definition,
fundamental issues and foundational premises. Journal of the Academy of Marketing
Science, 38(2), pp.119-140.

 To establish a brand recognition program in Brisbane in order to create awareness among
target market so that at least 1 in 3 people recognizes the brand Houzit.
C. STRATEGIES
It is considered as the action plan which is designed by the marketer for promoting and
selling its products and services to the target market (5). These strategies are made based upon
the opportunities which the company has in its hand. Two major opportunities have been
outlined for Houzit and they are as follows:
 Company can grow themselves in a growing market where they have significant number
of target market who is not aware about the offer of Houzit. This can be achieved by
merger and acquisition with the other popular brand of home-wares.
 Sales could be increased outside the target area in Brisbane. This could be grabbed by
franchising the brand so that it sales get increased.
In order to create strategies, company has to understand its marketing mix elements
which will help the firm in building effective strategies and it is as follows:
 Product: The Company must include more home-ware products in its product line in
order to cater more and more customers. Decorative lights, home furnishing items like
sofas, dining table, stylish doors and windows, etc.
 Price: Not only high pricing but moderate priced products should also be included in
order to serve the middle class customer as well. Place: In order to grow in the high growth market and increase its sales, company should
also start selling its products online. Moreover, by opening more retail outlets using the
option of franchising and merger and acquisition, these opportunities could be grabbed. Promotion: Heavy promotion using social media marketing and digital ads, company can
promote its products. Moreover, doing sales promotion like festive offer discounts,
referral program, etc. sales can be increased (6).
5 Ataman, M.B., Van Heerde, H.J. and Mela, C.F., 2010. The long-term effect of marketing
strategy on brand sales. Journal of Marketing Research, 47(5), pp.866-882.

Moreover, by analyzing risk and gap analysis, these strategies could be designed in a
more effective manner.
Risk analysis: By analyzing the SWOT analysis, it has been identified that the company has
skilled staff, huge retail space, high customer loyalty and huge assorted offerings so it can do the
franchising which will give significant results (7). However, it has limited budget for marketing
which may hinder the promotion for brand recognition. Furthermore, competition from local
independent retailer and national chain for home-ware is very high and this could lower down
the sales of the company. On the contrary, company has good customer base which will help in
retaining its identity.
D. IMPLEMNETATION
After devising marketing strategies, marketing manager is required to implement these
strategies for achieving the marketing objectives for Houzit. There are some of the tactics have
been mentioned for implementing the strategies (8).
 Scheduling: The Company makes the schedule regarding all the marketing activities.
Activities Weeks
Market Research 18-20 weeks
Product or service development
(Franchising agreement and merger &
25-30 weeks
6 Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy
implementation, export marketing capabilities, and export venture performance. Journal of the
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Street: nailing down marketing's impact. American Marketing Association.
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marketing strategy creativity and marketing strategy implementation effectiveness. Industrial
Marketing Management, 39(4), pp.551-559.

acquisition agreement)
Promotional program 10-15 weeks
After sales services 1-2 weeks
 Budgeting: It has been allocated to carry out all the marketing activities.
Expense Amount
Franchising and Merger acquisition cost $25,00,000
Promotion cost $3,00,000
Stationary $25,000
Total $28,25,000
 Roles and responsibilities:
1. Marketing manager: His duty is to do market research and develop strategies and find
out ways to implement those strategies (9).
2. CEO: To approve the budget.
3. Legal officer: To make the agreement and take approvals for franchisee and merger&
acquisition. Monitoring process: This is a typical monitoring process of Houzit for developing and
implementing strategies:
9 Fifield, P., 2012. Marketing strategy. Routledge.

Figure 1: Steps for monitoring process