Question:
Case Study: Developing a Marketing Plan.
The current research revolves around the marketing plan. It is evident that in order to gain market benefits and competitive advantages, it is necessary to develop a marketing plan. With the help of appropriate marketing plan, one could identify the key marketing element of a business and maps out the direction and objectives. In addition, marketing plan should be drawn on the broader perspectives. Thus, to identify the significant marketing opportunity, the current report focuses current operation of the organization Houzit. The report includes three different segments. The report starts with an overview of organizational goals and current marketing opportunity. The last segment of the report includes the tactics of implementing the marketing opportunity.
Background of the organization
The organization Houzit is known as a chain of home-wares stores in Brisbane. Houzit is specialized in bathroom fitting, bedroom fitting and other decorative items. The organization is currently running its business across the Brisbane city with 15 stores. The vision of Houzit is to become a national retail brand cater to the requirements of homemaker with a series of unique and high quality of products. One of the major objectives of the organization is to increase sales from $15 million per year to $20 million in the coming years (Berthon et al.2012).
The organization Houzit is determined to become a national retail brand of meeting and satisfying the needs of people with its high quality of products and easy manage payment plan. In addition, the organization is planning to develop a significant market presence in homeware in every capital city of the country. Currently, the company has 15 stores in different places across the Brisbane city. Houzit is expecting to open up new stores in other part of the country and create a competitive market presence. Thus, to fulfill the mission and vision, the company sets some particular marketing objectives. The execution of those objectives may lead the organization to a competitive place in the market (Bessant et al. 2012). One of the major objectives of the organization is to maximize sales from $ million per year to $ 20 million. Another significant objective of the organization is to create brand recognition in Brisbane; thus, at least 1 in 3 people learns about the brand.
Houzit is running its business almost for 50 years; thus, the size and resource of the company are becoming larger. The company usually focuses in building the stores at a commercial and sub-urban neighborhood. The size of Houzit is near about 1000-15000m2 (Rogerso, 2012). The organinziation has 15-20 full time employees and a large number of causal employees. However, Houzit has a wide category of products and services. Besides, to make the products and services more effective, the company multiple type of payment plans.
Strengths
Weaknesses
Though Houzit is planning to increase their sales from the current figure to a greater figure in next 3 years, the company might face some budgets issues (Ingwersen & Stevenson, 2012). The company has limited budgets; thus, implement the objectives, the company may require a large amount of capital. In order to increased sales, they have to open up new stores and maximize the human resources capabilities. On the contrary, to create brand recognition within a span of 2 years, it has to focus on promotion or endorsement of product (Kronenberg & Bergier, 2012). In addition, the company also has to focus on the quality of products and services, which is again the question of large investment.
In order to meet the organizational objectives, Houzit could focus on digital marketing since it could help to connect with peopled around the world within a short time. 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 (Walker & Jones, 2012).
Evaluating risk and benefits of each opportunity
The risk associated with digital marketing is the dynamic nature of digital environment. The trends of digital marketing often change with competition. The digital marketing only helps the marketers when they have a niche business. On the contrary, one of the major benefits associated with digital marketing is, measuring and monitoring. Digital marketing has multiple types; thus, 100% measurability is the biggest advantage (Min & Kim, 2012).
Conversely, the risk associated with penetrative pricing strategy is, the abundance of customers. The customer may leave the service when the price of the products is increased than competitors (Hamister, 2012). One of the major benefits associated with this opportunity is the chance of maximizing the sales volumes.
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.
To increase the sales volumes Houzit could implement 4p’s marketing mix strategy. This strategy helps cover the significant area o business.
Figure 1: Marketing mix strategy
Product: The organization should develop and deign heir products and service aligning with the life style of people (Sampson & Spring, 2012). Thus, the organization should boarder the products category to remain competitive in the market. To make reasonable profits at lower price, Houzit could enhance the techniques that are cost efficient as well as innovative. The company could increase the product category by including “Cooking”, “Dining Room”, “Eating and Dirking”, “Hallway”, and “Home decoration”.
Price: In order to increase the market share, the Houzit should set low price for products and services. The company could design the products effectively and sell them at low price. However, while running the business in global marketing, they should follow and implement the pricing laws imposed in each country.
Promotion: For making the promotion of products, Houzit could pay attention in direct selling and personal selling. Hence, rather than relying on distributors and supplier, they could directly sell the products from their outlets. In addition, at the time of selling the product they could distribute the leaflets that contain the details of each product (Shih et al. 2012). This could increase awareness of customers.
Positioning: As Houzit is a retail brand online shop and social media could help to distribute the details of products and services. Through online marketing, the origination could place the products and services. This is how the company could position its products and services. Online platform is the place where people could purchase their products through an easy way.
The above-recommended strategies are aligned with organizational goals and objectives. The strategy of entering into the global market is aligned with the strategy of increasing sales volumes. By running the business in global market, the company could create brand recognition, which in turn could help to attract the customers towards the products and services.
Competitive analysis: As the company is running its business over long period, they have multiple marketing opportunities to grow the business. Similarly, the organization has to deal with some major challenges.
Life Cycle model: The business life cycle model is consisting of seven different stages including the initial stage of business to ultimate stage of business.
Figure 2: Life Cycle model
Seed: This is the first stage of life cycle model. Hence, the organization Houzit could focus on matching the marketing opportunity with goals and objectives.
Start up- In this stage, the organization tend to overestimate the monetary requirement and time to market. Hence, the main challenge is not to burn through the amount of capita it has.
Growth: In this stage, the greatest challenge the company faces is the tendency of dealing with constant series of issues bidding for monetary and time. Hence, the company implements an effective management to build the necessary business plan.
Established: In this particular stage, Houzit has to deal with a relentless and competitive market. In addition, the company faces other risks such as competitors, economy and dynamic nature of environment.
Expansion: Hence, the company thinks of moving into ne market opening new stores in the existing market. Hence, the Houzit also has to deal with external marketing threats such as pricing strategy of competitors
Mature: in this stage, the business faces the challenges such as dropping of sales and profits. However, the organization looks for the new opportunity for business such as joint venture.
Exit: This is the final stage of business life cycle, which is about getting proper valuation. Here, the organization looks at its business operation, management and competitive barriers.
There have been certain aspects such as brand awareness, lead generation, customer acquisition, engagement associated with the marketing performance that should be considered while implementing the marketing opportunities.
“Brand awareness”: The organization should pay attention on increasing brand awareness since increased brand awareness could help to make the customers aware of products and services.
“Customer acquisition”: To increase sales volume, it is important to attract more customers towards the products and services. In such as a case, the organization needs to pay attention increasing market share.
“Customer retention/Loyalty”: The organization should provide some tangible and intangible benefits to the potential customers who are using the service for a long time. In such case, the company could provide additional benefits for premium customers.
Scheduling for marketing activities:
As Houzit is highly integrated company, it has strong connection in between the department and products lines. Thus, to ensure that Houzit gains a competitive position in the market, the organization is putting more efforts in meeting organizational objectives. The management of Houzit needs to monitor and evaluate the progress of each marketing objectives.
Costing: To implement the above-mentioned strategies such as expansion of business in global market, digital market may require a large amount of capital. For example, the organization may have to invest near about $3000-$2000 per month for implementing digital marketing.
KPI: The “key performance indicator” helps to assess the success of Houzit in which they engage. As mentioned by Walker & Jones (2012), the success is simply repeated and achievement of levels of goals and objectives. The KPIs could help the organization Houzit to measure the growth in meeting marketing objective such as maximizing sales volumes, increasing market share and measuring the cost of customer acquisition.
The selected tactics may have both legal and ethical impact on business. For example, if the organization appropriately follows the business ethics, it can gain more reputation. If the organization understands the social value, customers could be reliable to the organization and they may use the service for long time. As a result, the sales volumes of Houzit could increases than the existing volumes. On the contrary, compliance with the regulation may also help the origination to build the organization in new market. The organization receives environmental support from the governments.
Tactics fitting within organizational resources and capabilities
The above-mentioned tactics are quite effective for the organization. The tactics and strategies discussed in the report are aligned organizational resources and capabilities. With the limited budgets, the company could emphasize on meeting organizational marketing objective of increasing sales. By implementing digital marketing, Houzit could target a vast population through the wide reach of internet.
Conclusion
On the completion of the report, it can be added that Houzit could face certain marketing challenges as the competitors of Houzit already have a competitive position in the market. In addition, due to limited budgets, the organization may not be able to implement all required strategies. However, effective implementation of organizational objectives could help the organization to remain competitive in the market.
References
Arturo Garza-Reyes, J., Oraifige, I., Soriano-Meier, H., Forrester, P. L., & Harmanto, D. (2012). The development of a lean park homes production process using process flow and simulation methods. Journal of Manufacturing Technology Management, 23(2), 178-197.
Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), 261-271.
Bessant, J., Alexander, A., Tsekouras, G., Rush, H., & Lamming, R. (2012). Developing innovation capability through learning networks. Journal of Economic Geography, 12(5), 1087-1112.
Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3), 290-305.
Hamister, J. W. (2012). Supply chain management practices in small retailers. International Journal of Retail & Distribution Management, 40(6), 427-450.
Ingwersen, W. W., & Stevenson, M. J. (2012). Can we compare the environmental performance of this product to that one? An update on the development of product category rules and future challenges toward alignment. Journal of Cleaner Production, 24, 102-108.
Kronenberg, J., & Bergier, T. (2012). Sustainable development in a transition economy: business case studies from Poland. Journal of Cleaner Production, 26, 18-27.
Min, H., & Kim, I. (2012). Green supply chain research: past, present, and future. Logistics Research, 4(1-2), 39-47.
Rogerso, C. M. (2012). Strengthening agriculture-tourism linkages in the developing World: Opportunities, barriers and current initiatives. African Journal of Agricultural Research, 7(4), 616-623.
Sampson, S. E., & Spring, M. (2012). Customer roles in service supply chains and opportunities for innovation. Journal of Supply Chain Management, 48(4), 30-50.
Shih, S. C., Hsu, S. H., Zhu, Z., & Balasubramanian, S. K. (2012). Knowledge sharing—A key role in the downstream supply chain. Information & Management, 49(2), 70-80.
Walker, H., & Jones, N. (2012). Sustainable supply chain management across the UK private sector. Supply Chain Management: An International Journal, 17(1), 15-28.
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