Task 01:

Develop marketing strategies (Research and Written Report)

Organisational overview

1. Develop an organisational overview that:

a. outlines the strategic direction and organisational objectives

 Increase sales from $15 million to $20 million dollars per year within
three years.

To reach at their goal about growth by $5 million dollars per year the
company should be concern about the products are always up to the
standard and continuing offers a competitive market value compared to
the other rivals. The great way to cut down cost is production of good
quality but in low cost from overseas manufacturer and increase sales
and revenues.

 Increase the loyalty customers from 10,000 to 15,000.

To achieve more loyalty customer, they have introduced loyalty card

program and permit all customer to accumulate points in each
purchase. Later on , after gained certain levels they can use as cash
or help to create savings . In this way houzit encourage customers to
do shop and make them regular customers.

 Established Brand Recoznigation in Brisbane within 18 months.

Houzit has low budget solution to create brand awareness such as
advertisement on commercial radio, home ware magazines. Weekly

BSBMKG609 - Develop a marketing plan 1 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Flyers distribution on special products is also counted as another
attractive part which is plus point in cr4eating brand awareness.

b. outlines the current size, capabilities and resources of the organisation,

including any notable strengths and weaknesses .

Current size:
 15 stores
 Size of Houzit store if 1000 to 1500 m2
 50 years of operation so the company offering a wide range of home
ware items.

Capabilities

 Houzit has managed payments terms and provide a guarantee of

three years on every item sold.

Resources of the organisation

There are 15 to 20 full times employers in store and many casuals.

BSBMKG609 - Develop a marketing plan 2 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Notable strengths and weaknesses .

Strengths

 Houzit has highly skilled and knowledgeable staffs about their

products.
 Maximum repeat customer with loyalty rewards

 Assortment of offerings that exceed competitors’ offerings in quality,

range and accessibility.

Weakness

 Low marketing budget hamper in brand awareness development.

 A lots of struggle to continually fund the growing long-term
repayment plans taken out by our customers.

c. identifies any gaps between the objectives, and the current capabilities and
resources.

Objectives :

 Increase sales from $15million per year to $20million per year in the
next three years.
 Increasing our loyalty customers list from 10000 to 15000.
 Establish brands reorganization in Brisbane so that at least 1 in 3 people
recognize our brand in a random survey taken in 18 months times.

BSBMKG609 - Develop a marketing plan 3 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Gaps between the objectives, and the current capabilities and
resources.

 Sales currently $15 million per year

 Loyalty customers currently 10000 per year.
 15 stores in Brisbane currently , none interstate.

Joint

Opportunities

1. Identify two marketing opportunities that meet the objectives and evaluate the risks
and benefits of each opportunity.

Joint Venture

A Joint venture arrangement is which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task. This task can be a new project or
any other business activity. A joint venture differs from a merger in the sense that there is
no transfer of ownership in the deal. In a joint venture, each of the participants is
responsible for profit, loss and cost associated with it. But, the venture is its own entity,
separate and apart from the participants other business interests.

Evaluation of the risks and benefits

BSBMKG609 - Develop a marketing plan 4 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
Risk :-

 Personal poor Communication

 Different quality product
 Different customer
 Take time to find out right people to work with good efforts. Joint venture can be
fail if objectives are not clear to all parties imbalance between what the parties
bring to the joint venture such as in financial resources, expertise or time
incompatibility.

Benefits:-

 Flexibility
 Cost of risk share
 Different target customer
 Advertisements staff and management
 Offer the opportunity to move into new , non-core areas.

Franchising :

Franchising is a business relationship in which the franchisor (the owner of the business
providing the product or service) assigns to independent people (the franchisees) the right to
market and distribute the franchisor's goods or service, and to use the business name for a
fixed period of time. The International Franchise Association defines franchising as a
"continuing relationship in which the franchisor provides a licensed privilege to do business,
plus assistance in organising training, merchandising and management in return for a
consideration from the franchisee".

Houzit in a franchising agreement that is providing the right to use the Houzit’s trademarks,
associated brands and other proprietary knowledge in order to open a branch .

Evaluation of the risks and benefits

BSBMKG609 - Develop a marketing plan 5 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Risk:-

 Franchising your business will involve significant financial investment at the

outset in order to get a successful franchise model in place for future growth
of the business including investment in preparing legal documents, operations
manuals, marketing materials and recruitment.
 Loss of absolute control.
 Sharing profit.
 State and federal franchise disclosure laws.
 Innovation challenges.

Benefit:-

 Minimization of risk
 Rapid expansion
 Franchising puts a business owner in charge
 Access to better talent
 Name recoznization increased or famous
 New revenue streams are created.

1. Recommend the opportunity that best addresses organisational objectives and:

Joint venture is recommended as it best matches with the company, brand and its products.
The company need a joint venture that can help your business grow faster, increase
productivity and Flexenerate greater profits. The company need to:-

BSBMKG609 - Develop a marketing plan 6 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
  access to new markets and distribution networks
 increased capacity
 sharing of risks and costs with shareholders
 access to greater resources, including specialised staff, technology and finance

Joint ventures often enable growth without having to borrow funds or look for outside
investors. You may be able to use your joint venture partner's customer database to market
your product, or offer your partner's services and products to your existing customers. Joint
venture partners also benefit from being able to join forces in purchasing, research and
development.

a. develop a marketing mix strategy that fits within the capabilities and resources
of the organisation

Price Medium to high

Place Variety of circumstances made the choice of distribution dependent

on it. It will be more convenient for some manufacturers to sell to
wholesalers who then sell to retailers, while others will prefer to sell
directly to retailers or customers.

Product Joint product has to have the right features - for example, it must look
good and work

Promotion Joint product has to have the right features - for example, it must look
good and work

BSBMKG609 - Develop a marketing plan 7 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 b. describe to how your strategies align with the strategic direction of the
organisation, and give justifications for your selection

Sales Strategy :-

Sales strategy is to make ourselves known through mailings, print advertising, and personal
link to architects and contractors who are primarily engaged with the construction of
commercial development and luxury homes. Having a showroom will be a sales tool in itself.
A showroom will give us exposure to the general public, new arrivals to the area, and
construction professionals.

Marketing Strategy:-

By making the programme like in-house catalogue publishing and distribution department,
detailed customer service vehicles Houzit furniture is moving toward internal marketing.
Which will allow us to reach the success of our marketing and sales and further integration
with established quality catalog vendors , such as Shaper Image.

Our target markets present great opportunities for company growth, as our niche is not at all
saturated at this point. We will dominate the high-end office furniture market by stressing
the quality in workmanship and materials of our product lines, keeping up with and
integrating technological advances in the personal computing environment, and by increasing
our market research and customer service in order to constantly satisfy our markets' needs.

The home ware furniture purchaser, small business owner, and corporate executive will
greatly benefit from our quality products in terms of, comfort, and appreciation of the office
environment. The key to reaching this market is to make them aware that our products are
available. We do not need to convince them of anything but the assurance of quality in
manufacturing and ergonomic design.

BSBMKG609 - Develop a marketing plan 8 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 c. detail a marketing performance review strategy using an appropriate tool
(competitive analysis, life cycle model, value chain analysis, etc.) to review the
performance of the organisation against marketing objectives

Competitive analysis :-

Competitive analysis process presents an opportunity to describes the major

competitors on terms of the factors that most influence revenues. For example:-

Ashley Furniture Industries :- Ashley Furniture is known for their moderately

priced furniture and their wide variety of products. In terms of material quality,
there can be some good bargains to be found. They have a very good relation with
two main distributions: one is independent channels; another is more than 400
Ashley Furniture Home store retail furniture stores. Today they are about twice our
size. So we should aware of them, to develop furniture and market through
advertising in magazines, different social media.

Weakness:-

More funds spent on implementing the strategy: In order to supply and offer more
furniture products to the customers, more funds will be spent on Research and
Development, Design to find more solutions offered to the customers. Besides, the
division possesses its own stores which cost much of its capital on investing in
purchasing fixed assets, which may become a potential problem to the cash flow of
the company.

Strength:-

Good price to attract customers:- After the recession of economy crisis in 2008,
the price of goods, especially furniture, become the main competitive
advantage to attract customers to consume products on company.

BSBMKG609 - Develop a marketing plan 9 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Life Cycle Model:-

Office furniture companies complied with these environmental standards

through the development and marketing of less harmful products. As an
instrument to gain competitive advantage, the office furniture industry has
adopted environmental product performance beyond mere environmental
compliance. As a result, today's environmental performance not only refers to
the final product but the entire value chain along which a product is developed,
manufactured, delivered, used, and retired.

An increasingly important concern for indoor work environments is the

environmental quality of the office space. Building- and insulation materials
have often polluted the indoor air by off-gasing harmful substances, such as
asbestos, formaldehyde, and others. Recently, environmental concerns have
also extended to painting-, flooring/carpeting-, and furnishing materials, leading
to related environmental regulation and certification schemes.

Value Chain Analysis

Value chain analysis (VCA) has emerged since the 1990s as a novel approach for
understanding how power, benefits and costs are embodied and distributed to
various actors. The furniture industry demonstrates a long chain of production to
consumption, from raw material producers (tree growers), semi-finished producers,
finished product producers, and retailers to exporters.

d. Include the metrics to be used in measuring marketing performance.

Customer Satisfaction
Ways of measuring customer satisfaction include:
 Survey customers.
 Understand expectations.
 Find out where you are failing.
 Pinpoint specifics.
 Assess the competition.

BSBMKG609 - Develop a marketing plan 10 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
  Try to measure the emotional aspect.
 Loyalty measurement.
 Fox survey
 A series of attribute satisfaction measurement.

Brand Awareness:-

 Establish brand recognition in Brisbane so that at least 1 in 3 people

recognise our brand in a random survey taken in 18months time.
 Measuring your website traffic over time can reveal insights into brand
awareness, but it’s important you are looking in the right places. The
direct channel in Google Analytics tracks the number of people who typed
your URL into their address bar, used a browser bookmark, or clicked a
link in an untracked email or offline document. Monitoring this over time
will give you an indication of changes in brand awareness.

Market Share:-
 Determine the period you want to examine for each company you are
investigating.
In order to make sure you are making an apples-to-apples comparison,
you must examine sales in a specific time period. You can examine the
sales over the length of a quarter, a year, or over several years.

 Calculate the company's total revenue (also called total sales)

All publicly-traded companies must release quarterly or annual financial
statements. These statements will include a record of all of the firm's
sales, and may also include an itemized explanation of sales of specific
product or service types within the footnotes of the financial statements..

BSBMKG609 - Develop a marketing plan 11 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 Tactics

1. Detail the tactics necessary to implement the strategy you have outlined, including:

a. scheduling of activities to enact the strategy

b. costing
c. accountabilities and responsibilities

d. a plan for coordinating and monitoring scheduled activities including KPIs.

Marketing
Schedule of Accountabilities &Coordinating andKPIs (Objectives of the marketing
Cost
activities responsibilities monitoring activities strategy)
strategy

11/01/2021- Marketing Survey the price fromTo know what is the best price that
Price $15000
12/01/2021 manager the competitors the customer feel comfortable to pay

11/01/2021- Survey the bestTo know the place where is easy to

Place $25000General manager
12/01/2021 location access the customer
Brainstorming the
11/01/2021-
Product $35000Designer team goods, services orMany type of the products
12/01/2021
ideas.
11/01/2021- Marketing Creation of big sale,Attract the customer to buy the
Promotion $55000
12/01/2021 manager voucher goods or products

2. Outline any legal and ethical requirements that impact on the selected tactics.

Employment:-
 Federal state and territory laws
 Industrial awards and agreements

BSBMKG609 - Develop a marketing plan 12 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
  Ensuring safe work environment.

The issue of sustainability:- This focuses mostly on environmental issues

of waste management and energy conservation so Houzit is going to
introduce new regulations to find ways to still provide customers with
what they want acwithout the high electricity usage.’

BSBMKG609 - Develop a marketing plan 13 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018
 3. Describe how the tactics fit within identified organisational resources and capabilities.

 Analysing the context in which Houzit is operating.

Analyse Houzit

Firstly, examine resources, liabilities, capabilities, strengths, and weaknesses. A SWOT

Analysis is a great tool for uncovering what do well and where houzit has weaknesses,
providing that houzit uses it rigorously. It's much easier to achieve your organozayion’s
objectives when your strategy uses your strengths without exposing your weaknesses.

 Identifying strategic options.

Brainstorm Options

Use creativity tools like Brainstorming, Reverse Brainstorming and Star bursting to explore
projects that you could run to develop competitive advantage. Guide your brainstorming with
reference to the organization's mission statement, but, depending on your role in the
organization, consider how far you should be constrained by this.

 Evaluating and selecting the best options.

Choose the Best Way Forward

With your evaluation complete, you now must choose the best strategic option or strategic
options, making sure that you don't choose so many options that you spread your resources
too thinly.

BSBMKG609 - Develop a marketing plan 14 | P a g e Abbey

College Australia
National Provider No. 91136| CRICOS Registration No. 02658G Version V1.1 Oct
2018