It is very important from the point of view of an organization to identify various marketing opportunities based on the resource, capacity and capability of the organization and accordingly utilize the marketing opportunity to the fullest extent in order to accomplish the strategic objectives of the organization. It is very important from the point of view of an organization to identify the various benefits and risks associated with the identified marketing opportunities in order to ensure the effectiveness of the identified opportunity. The current report focuses on identification of marketing opportunities for Houzit, an Australian company based on the risks and benefits associated with it.
Houzit is a homeware franchise in Brisbane which aspires to transform into a significant retail company with presence in all the capital cities of Australia. It currently has 15 stores in the Greater Brisbane area and plans to extend more 100 stores across Australia. The strategic objectives of Houzit include increasing the revenue of the company by $5 million in the coming 3 years, increasing the number of loyal customers and the brand recognition of the company.
Houzit has 15 stores which are spread throughout Greater Brisbane and are being co-ordinated and managed from their head offices located in Milton. The stores of the company are located in commercial sub-urban neighbourhood or urban retail district. The stores of Houzit are bright and functional in display and design and the average size of the stores of the company is 1000-1500 m2. Houzit has 15-20 full time employees at each of their sores in addition to various casual staffs. The stores of the company offer various products to the customers such as bathroom fittings, bedroom furnishing, mirrors and decorating items and lighting features. The company offers long term re-payment plans to the customers in order to increase customer loyalty and retention. Houzit has a limited marketing budget in place to increase the brand awareness of the products of the company.
As stated by Dadzie et al. (2017) there are several gaps which can be identified between the strategic objectives of the organization and the current capabilities and resources of the organization such as the company need to increase its product offerings in order to increase the sales of the product. The company also need to increase their marketing budget in order to increase the brand awareness of the products. As opined by Durie and Imiru (2018) the company also needs to increase the number of permanent staffs in their stores in order to provide more personalised shopping experiences to the buyers which will help in increasing their satisfaction rate which in turn will help in enhancing their loyalty towards the company.
The first marketing opportunity which can help in achieving the objectives of Houzit is market penetration in which the company can introduce new products such as kitchen fittings and accessories in its existing market segment. As stated by Fernandes and Solimun(2018) the benefits of introducing a new product in the product line of the company is that it will help in drawing more customers towards the products of the company by providing one stop solutions to the customers in order to fulfil their requirement which will help in increasing revenue of the product. The main risk which is associated with this opportunity is the financial risks as it will require a considerable amount of investment in order to develop and market new products in the market.
The second marketing opportunity which can help in achieving the objectives of Houzit is selling the products of the company through various e-commerce platforms in order to reach to a wider audience in a short span of time. As opined by Felipa (2017) the benefits which are involved in introducing e-commerce in the company are that it can reach to a larger number of audiences and also to attract customers who do not have the time to visit the stores of the company. The risks which are associated with this opportunity is that it requires a significant amount of investment in order to enter the e-commerce platform and it also harms the reputation of the products as a large section of the target customers of the company perceive e-commerce goods as not high quality in nature.
The marketing opportunity which can be recommended to Houzit is of market penetration in which the company should focus on introducing new products such as kitchen fittings and accessories in the existing market segment of the company as it will help in attracting more customers towards its store by virtue of the one-stop solution being provided by the company to the customers which will help in increasing the sales revenue of the company and will also help in increasing the brand awareness of the company by diversification of their products.
The marketing mix strategy of Houzit is as follows:
Product- The products which will be offered by Houzit to its customer includes bathroom fittings, bedroom furnishings, kitchen fittings and accessories, lighting fixtures, mirrors and decorative items.
Price-According to Wieland (2018) Houzit needs to implement a dual pricing policy regarding its products in which it will charge competitive prices from the customers regarding its regular products and will charge premium prices from the customers for its exclusive designer products.
Place- The products of the company will be available from the physical stores of the company available in various convenient locations across the country and will follow a direct distribution channel in order to prevent addition charges of the product and also to facilitate availability of the products in the market.
Promotion- Houzit will promote its product from both online and offline platforms using various promotional tools such as advertisement, personal selling, direct mail and sales promotion. As stated by Payangan, Sahabuddin and Girikallo (2017) the company will put special emphasis to promote the products through social media platforms in order to gain increased popularity.
According to Kim et al. (2014) the above designed strategies aligns with the strategic direction of the organization as the above mentioned strategies will help in increasing the sales of the products of the company, will increase customer loyalty and retention and will also help in increasing the brand awareness of the products of the company. For example the introduction of kitchen fittings and accessories will increase the sales of the products of the company by virtue of its one stop solution. The dual pricing strategy and the promotion of the products through social media will help in increasing the retention and loyalty of customers and will also contribute to enhancement of brand awareness.
As opined by Otubanjo (2018) the marketing performance review strategy which can be used in Houzit in order to review the performance of the company against marked objectives is Value Chain Analysis which will help in identifying the activities of the company which helps in creating competitive advantage for the organization and will accordingly help in increasing the effectiveness of the activities in order to enhance the competitive advantage of the company.
According to Mintz and Currim (2013) the metrics which will be used to measure marketing performance are brand awareness, customer acquisition, lead generation, customer loyalty and sales of the company
The tactics which can be used in order to schedule the activities to enact the strategy is to create a list of comprehensive activities which are required in order to enact the new strategy in the company and accordingly schedule the various activities depending on a particular sequence or order and by assigning a time period in order to complete those activities.
The tactics which can be used in determining the costing of the activities is to undertake a cost benefit analysis of the new activities regarding the cost required to undertake the activities and its underlining benefits to the company.
The tactics which can be used to determine the accountabilities and responsibilities regarding enacting the strategy is to organize a general meeting in the organization presided by the top management of the company in order to divide the new tasks to the various departments of the organization depending on their functionality and organizing brainstorming sessions in order to clearly define roles and responsibilities of each members and each departments.
As stated by Wongtianchai, Ussahawanitichakit and Jhundra-indra (2015) the plan which can be implemented for coordination and monitoring of scheduled activities is to develop SMART goals and Key Performance Indicators regarding the achievement of the schedule activities and accordingly review the progress of the activities on a monthly basis against the SMART activities and the KPIs and making necessary changes in the activities or strategies in case of any expected outcomes associated with the activities. The KPIs which can be developed in this context are Increase in sales of product by 20%, increase in customer retention by 20% and increase in brand awareness by 25% at the end of the current financial year.
The legal and ethical requirements that impact the above mentioned tactics are ethical reporting standards regarding the performance of the company after implementing the activities and adoption of a sustainability approach in designing the activities and strategies.
The above mentioned tactics fits perfectly within the organizational resource and capabilities as the organization do not require new resources and do not need to develop their capabilities in order to implement the tactics.
Conclusion
From the above report it is clear and evident that it is very important for an organization to ensure that the marketing opportunities which are identified by the company is aligned with the overall strategic direction and objectives of the organization otherwise it would let to the non-accomplishment of the strategic objectives of the organization and will also lead to the disruption of the operations of the organization. From the above report it can be also stated that an organization should develop its marketing mix strategy depending on the current capabilities and capacities of the organization in order to achieve the strategies in an effective manner.
References
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., and Winston, E. M. (2017). HOW FIRMS IMPLEMENT MARKETING STRATEGIES IN EMERGING MARKETS: AN EMPIRICAL ASSESSMENT OF THE 4A MARKETING MIX FRAMEWORK. Journal of Marketing Theory and Practice, [Online] 25(3), 234-256. Available at doi:https://dx.doi.org/10.1080/10696679.2017.1311220 Accessed as on 27/12/2018
Durie, A. D., and Imiru, G. A. (2018). THE MARKETING STRATEGY OF FIRMS: AN INSIDE OUT PERSPECTIVE. Independent Journal of Management & Production, [Online] 9(3), 889-906. Available at doi:https://dx.doi.org/10.14807/ijmp.v9i3.757 Accessed as on 27/12/2018
Felipa, P. B. (2017). Marketing + internet = e-commerce: Oportunidades y desafíos */Marketing + internet = e-commerce: Opportunities and challenges/Marketing + internet = e-commerce: Oportunidades e desafios. RevistaFinanzas y PoliticaEconomica, [Online] 9(1), 41-56. Available at doi:https://dx.doi.org/10.14718/revfinanzpolitecon.2017.9.1.3 Accessed as on 27/12/2018
Fernandes, A. A. R., and Solimun, S. (2018). The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty. The Journal of Management Development, [Online] 37(1), 76-87. Available athttps://search.proquest.com/docview/2008318033?accountid=30552 Accessed as on 27/12/2018
Kim, K., Kim, Y., Lee, M., and Youn, M. (2014). THE EFFECTS OF CO-BRAND MARKETING MIX STRATEGIES ON CUSTOMER SATISFACTION, TRUST AND LOYALTY FOR MEDIUM AND SMALL TRADERS AND MANUFACTURERS. E+M Ekonomie a Management, [Online] 17(1), 140-151. Available athttps://search.proquest.com/docview/1615241537?accountid=30552 Accessed as on 27/12/2018
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Otubanjo, O. (2018). Building a powerful entrepreneurial brand: The role of critical success factors and their impact on competitive advantage. IUP Journal of Brand Management, [Online] 15(1), 15-44. Available athttps://search.proquest.com/docview/2027472690?accountid=30552 Accessed as on 27/12/2018
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Wongtianchai, S., Ussahawanitichakit, P., and Jhundra-indra, P. (2015).A CONCEPTUAL FRAMEWORK OF ENTREPRENEURIAL MARKETING STRATEGY AND MARKETING GOAL ACHIEVEMENT. Allied Academies International conference: Arden, [Online] 21(2) 14-32. Available athttps://search.proquest.com/docview/1763782646?accountid=30552 Accessed as on 27/12/2018
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