Houzit: Marketing Plan for Business Expansion and Growth

This report presents a marketing plan for Houzit, a Brisbane-based interior design company. The plan begins with an organizational overview, detailing Houzit's market position, revenue components, and strategic direction to become a national interior retailing company with 100 outlets across Australia. It then analyzes the company's current capabilities, including its strengths in financial resources and goodwill, and weaknesses in marketing strategies and debt recovery. The report identifies gaps between objectives and capabilities, highlighting the need for improved marketing and financial management. Two marketing opportunities are identified, focusing on revenue generation and product innovation. The recommended marketing mix strategy emphasizes consumer awareness, product development, and the use of the customer life cycle model. The report concludes with a discussion of metrics for measuring customer lifecycle and financial performance, providing a comprehensive overview of the marketing plan and its strategic implications for Houzit's growth.

Marketing plan of Houzit

Organizational overview
 Houzit was a Brisbane based company which marketed household
fittings meant for bedroom, bathroom, mirrors and ornamental
accessories. .
 The company had a strong position in the interior decoration market in
Brisbane which was evident from the presence of 15 stores within the
city.
 The company employed around 20 full time employees and several
outsourced employees.
 The main components of the revenue generation of Houzit consisted of
bathroom accessories, bedroom furniture, mirrors and ornamental
fixtures and accessory fixtures in the ratio of 30, 35. 20 and 15 percent.

Strategic direction and
organizational objectives
 The strategic direction of Houzit was to emerge as a national level
interior retailing company. The company sought to cater to the
customers with superior quality interior designing products.
 The mission or the objectives of Houzit were to expand into every
Australian state capital city, reaching to 100 outlets throughout
Australia.

Current size, capabilities and
resources of Houzit including in
notable strengths and
weaknesses: The current size of Houzit was commendable with around 15 stores in
Brisbance alone. The company was financially strong.
 The resources of the company consisted of financial resources, human
resources and its strong goodwill, all of which attributed to the strength
of Houzit.
 The weakness of Houzit were its weak marketing strategies along with
continuous expenditure which had to be borne to maintain the
discounts and repayment opportunities to customers.

Identify any gaps between
objectives and current
capabilities and resources
 The objectives of Houzit was to open
offices in every state capital in
Australia and targeted to reach a
100 store benchmark. The
company’s current capabilities of
the company was not par with its
aim.
 Firstly, the company did have a
strong marketing strategy and
secondly, suffered from slow
recovery of debts from customers.
Thus, it is evident the company
generated low revenue which in turn
impacted its financial resources.
Strengths:
1. Financially strong
2. Strong market position
Weaknesses:
1. Weak marketing techniques
2. Weak customers
management and debt recovery
policies
Opportunities:
1. Marketing of products
2. Innovation
Threats:
1. Legal change(mentioned in the
case study)
2. Competition from stronger rivals.

Opportunities and recommended
opprtunities
 1. Identifying two marketing opportunities that meet the objectives and evaluate the risks and
benefits of each opportunity:
 The two marketing opportunities which Houzit could exploit consisted of to increase its revenue
generation and strengthen its financial resources were marketing its products and bringing out more
innovative products.
 2. Recommended opportunities:
 The marketing mix strategy should of Houzit should emphasize on creating awareness among consumers
about its products. The marketing mix should be developed by taking into expectations and demands of
products from the customer.
 The marketing strategy would be aligned with the strategic direction of the retail company by taking into
account the aforementioned marketing objectives of the company.
 The company should use life cycle model to review marketing performances. A customer longer life cycle of
should reveal strong financial performance and vice versa.
 Matric to be used to measure the customer life cycle would be profit generation. (marketing plan attached)

Thank You