BSBMKG 609 - Marketing BSBMKG 609 - Marketing

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Bsbmkg 609 - Marketing
BSB51918 Diploma of Leadership and Management (Australian Pacific College)
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Assessment Submission Sheet

Course BSB61015 Advanced Diploma of Leadership and Management
Unit Code BSBMKG609 Develop a Marketing Plan

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Task 1 Case Study
Task 2 Presentation
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conducted a fair, valid, reliable and flexible
assessed in this unit, and I have been advised of
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AIC-BSBMKG609-Assessment Tasks-V4.0 Page 1 of 19

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Assessment Task 1
Instruction for the student
This is an individual assessment. For the organisation outlined in the case study provided, identify two
marketing opportunities and evaluate each opportunity for risks, strengths, weaknesses and alignment
with organisational objectives. After you have reviewed the opportunities, select the best fitting
opportunity for the organisation and develop marketing strategies, approaches and activities to take
advantage of the opportunity.
To be deemed competent you will need to successfully demonstrate the following:

You must provide:
 a report containing documents that support all of the instructions outlined in the procedure above.
identifying a suitable marketing opportunity
 conducting research to assess and analyse the market
 a report outlining your marketing strategies to best take advantage of the identified market
opportunities
 organising your report under the headings suggested in the procedure.
Procedure
You are required to submit a report that addresses all of the elements listed in the procedure. The report
should be structured using the headings below:
Organisational overview
Develop an organisational overview that:
 outlines the strategic direction and organisational objectives
 outlines the current size, capabilities and resources of the organisation, including any notable
strengths and weaknesses
 identifies any gaps between the objectives, and the current capabilities and resources.
Opportunities
Identify two marketing opportunities that meet the objectives and evaluate the risks and benefits of each
opportunity.
Recommend the opportunity that best addresses organisational objectives and:
 develop a marketing mix strategy that fits within the capabilities and resources of the organisation
 describe how your strategies align with the strategic direction of the organisation, and give
justifications for your selection
 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
 include the metrics to be used in measuring marketing performance.
Tactics
Detail the tactics necessary to implement the strategy you have outlined, including:
 scheduling of activities to enact the strategy
 costing
 accountabilities and responsibilities
 a plan for coordinating and monitoring scheduled activities including KPIs.
 Outline any legal and ethical requirements that impact on the selected tactics.
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 Describe how the tactics fit within identified organisational resources and capabilities.
Houzit is close to entering its fifth year of operation, and offering a wide range of home-ware items on
easy-to-manage payment terms and supplies a three-year guarantee on every item sold. A new
customer's first purchase is generally of mirrors and decorative items and he is offered to join in
Houzit’s loyalty program. Houzit is close to entering its fifth year of operation; offering a wide range
of home-ware items on easy-to-manage payment terms and supplies a three-year guarantee on every
item sold. The specific targeted customers are defined by the organization and it has vision to be a
national retail brand, catering to the needs of home makers with a range of unique, high quality
homewares made accessible to all through our easy to manage payment plan.
Organisational overview:
Houzit has set its strategic direction to meet the its strategic goal. It has focused more on customer
satisfaction than profit through economies of scale. Houzit is focusing to gain the market shares in the
field of homeware with the features like quality, unique item and larger selection. The strategic
direction of Houzit can be determined through the company's vision and mission. Company's vision
and mission does not only reflect the strategic goals of the company but also provides a proper
footprint and guidance to the organization's employees to work with the target to achieve the
organizational goals. Houzit has vision to be a national retail brand, catering to the needs of home
makers with a range of unique, high quality homewares made accessible to all through our easy to
manage payment plan. It has supported its vision with its mission of having a significant retail
presence in homewares in every Australian capital city, by 2020, starting with 15 stores in the greater
Brisbane area and growing to 100 Australia wide. Houzit has planned to enlarge its service area wide
around the other major cities of Australia by 2020 and to achieve the organization's mission, it has
analysed some marketing opportunities as well. Moreover, Houzit is concerned with towards
sustainability issues addressed by government and is looking forward to work with the new law
imposed by government. It will gain the customer's attention and add to the brand of the organization.
Houzit has a clear organizational objective to support its mission to diversify its stores in other cities of
Australia. Houzit has set its objectives to increase sales from $15million per year to $20million per
year in the next three years, increase the loyalty customers list by 5,000 and establish brand
recognition in Brisbane so that at least 1 in 3 people recognise the brand in a random survey taken in
18 month's time period.
Current size
• 50 years of operation so the company offering a wide range of home-ware items
• Houzit has 15 stores with each typical Houzit store with size – 1,000–1,500 m2.
Capabilities
• The company can have the capacity to sustain its employees, suppliers and customers with the
long term payment option upto 40% of the cost of product.
• Houzit is capable to provide guarantee of three year on every item sold.
• Each Houzit store is able to generate the sales break-ups in the following items:
30% bathroom fittings
35% bedroom furnishings
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20% mirrors and decorative items

15% lighting fixtures (recent addition).
Resources of the organisation:

• Houzit has about 15–20 full time human resources at each store along with several casual
employees.
• Houzit has 15 stores spread across the greater Brisbane area along with head office in Milton.
Strengths:
• Houzit is focused towards the major attributes that customer desire in the product they
purchase, that is quality, uniqueness and larger selection options.
• Houzit has highly skilled and knowledgeable employees in the homeware field.
• Houzit is updated with the government policies and tries to maintain the terms according to the
law.
• Houzit's store location and interior design are the strength.
• Long term payment plan that Houzit offers to the customers.
Weakness:
• The limitations in the marketing budget to develop brand awareness
• The struggle to continually fund the growing long-term repayment plans taken out by the
customers
• Rival companies have better prices, visibility and presence in the market.
The following gaps can be identified between the objectives, and the current capabilities and resources:
• Houzit has the target to increase sales from $15million per year to $20million per year in the
next three years but currently it has 15 stores only limited to Brisbane area.
• Houzit is able to provide 40% long term payment plan only however its target is to increase the
loyalty customers list from 10,000 to 15,000.
• Houzit has objective to establish brand recognition in Brisbane so that at least 1 in 3 people
recognise the brand in a random survey taken in 18 month time, but Houzit has not conducted
any survey about brand till the date.
Opportunities:
The two marketing opportunities that meet the objectives of Houzit are franchising and joint venture.
There are some risk and benefits associated with each marketing opportunities which needs to be
identified to choose the best opportunity.
Franchising
Franchising is an arrangement where franchisor (one party) grants or licenses some rights and
authorities to franchisee (another party). Franchising is a well-known marketing strategy for business
expansion. The franchisor may grant franchising rights to one or several individuals or firms.
Consequently, if just one person gets these rights, he becomes the exclusive seller of the franchisor’s
products in a specific market or geographical limit. In return, the franchisor supplies its products,
services, technological know-how, brand name and trade secrets to the franchise. It even provides
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training and assistance in some cases.
Benefits:
• Easy expansion of business without incurring additional cost.
• Easy reach out to wide area and customers
• Growth of customer trust towards the product as it will be sold by the local people in their area.
Risk:
• There won't be direct control over the products sold by the franchisees by Houzit. Therefore,
the quality and customer service could not be controlled by Houzit. Hence, there is risk of
degradation of goodwill of the company.
• Trainings, assistance, maintenance, etc requires a lot of investment in time.
• It requires significant amount of investment in various field like preparing legal documents,
operations manuals, marketing materials and recruitment to ensure that franchising promotes
the brand.
Joint Venture
A joint venture is an arrangement between two or more people or companies to work together for a
particular purpose or on a particular project. It is a business arrangement in which two or more parties
agree to pool their resources for the purpose of accomplishing a specific task. It is a strategic alliance
where two or more parties, usually businesses, form a partnership to share markets, intellectual
property, assets, knowledge, and, of course, profits but it does not transfer ownership. This can be done
between the businesses who wants to achieve market share in the tough competition with foreign
brands or other brands.
Benefits:
• It helps to gain new insights and expertise without hiring new employees.
• It is beneficial in long- ren as it is temporary.
• It helps to share the risk of high leverage but uncertain ventures.
• It helps to promote the brand with low marketing budget
Risk:
• A clash of cultures and management styles may result in poor co-operation and integration.
People with different beliefs, tastes, and preferences can get in the way big time if left
unchecked.
• It requires a lot of planning and research.
• There might be poor communication between the companies with different goal.
Franchising is the best marketing opportunity to meet Houzit's objectives of growth. Houzit can
minimize the investment required and does not need to look for outside investors. It helps to gain the
advantage of local level knowledge and culture along with easy brand recognition. The company can
grow revenues through localization as well. Organization can be benefitted through idea sharing,
communication and support from other franchisees in the network. For this, the following strategies
needs to be adapted. The following things must be determined to adapt franchising strategy.
• Key franchise core team
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• Appoint state & territories master franchisees

• Research & prioritize stores planting
• Find Quality product suppliers nationwide
• Logistics & transportation management
Marketing mix strategies:

The marketing mix is the combination of 4Ps such as, product, price, placement and promotion
involved in marketing strategy. Marketing mix strategy purpose is increasing to the company sales.
Price:
• It should be similar in all stores.
• Promotional pricing in new openings.
• The long term payment facility should be prevailed in the other store.
• Penetration of pricing will be used when introducing new products.
• Price should be determined on the basis of competitor's price.
Product:
• With growth of stores, Houzit should add more products.
• Houzit should maintain the major features (quality, uniqueness and larger selection) within all
the stores.
• Support locally sourced product contents
• Allow master & sub-franchisees to procure differentiated supplies
Place:
• Houzit should use the online platform to access large number of customers
• Other stores should be located in urban areas with high income and living standards.
• The bright design of the store should be maintained, but by adding mirrors. Mirrors reflect the
lights which helps to brighten the store with less electricity.
• Expand to 100 stores nationally
• Open regional head office stores in all capital cities for master franchisees.
Promotion:
• Houzit should use digital marketing and social media marketing to establish a brand image and
get access to large pool of customers.
• Use of corporate social responsibility fund in development activities can help in promotion.
• Product introduction by master franchisees.
The strategies formulated are aligning with the strategic direction of the organisation of Houzit. The
similar price range set all around the stores of Houzit will maintain loyalty customers and attain the
objective of increment of loyalty customers by 5000. Also, the unique feature of providing long term
payment options for customers will maintain a brand image and trust in the brand. Promotions using
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digital marketing and social media marketing will help to gain the organization's objective of
establishing brand recognition in Brisbane so that at least 1 in 3 people recognise Houzit brand in a
random survey taken in 18 months time.
Product life cycle:
The life cycle of a product is associated with marketing and management decisions within businesses.
All products go through five primary stages: development, introduction, growth, maturity, and decline.
Each stage has its costs, opportunities, and risks, and individual products differ in how long they
remain at any of the life cycle stages. It is important to understand your products’ life cycle and what
stage it is in to help you to market each stage successfully. The following are the stages of product life
cycle as per the case:
1. Introduction
This is the stage where a product is newly introduced in the market. Here, a new product is launched in
the market. There is low level of sales with high unit cost. Heavy promotion is required in this stage.
The appropriate strategies in this stage are:
• High investment in promotions to create awareness about the product.
• Price skimming or penetration strategy
• Demand from early adopters
• Limited distribution
2. Growth
The product starts to get recognised by the people and the market expands in this stage. There is the
threat of competitors in this stage. The organization is able to utilize its capacity at the most. There is
rise in sales, cash flows are positive and the organization enjoys economies of scale in this stage. The
appropriate strategies in this stage are:
• Increase sales distribution outlets
• Promote brand image
• Improve product's feature
• Target potential buyers
3. Maturity
The product faces high level of competitors in this stage. There is full utilization of resources but
slower sales growth. The organization needs to plan wisely for the sustainability of the business in this
stage. The strategies to be used in this stage are:
• Competitor based pricing
• Product improvements
• Enter new segments
• Repositioning
• Promotion focused on differentiation
4. Decline
There is fall in sales and stiff competition in this stage. Organization faces decline in capacity
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utilization. The strategies in this stage are:

• Price cuts
• Promotions
• Narrow distributions
• Reducing or merging products
The metrics that may be used for measuring marketing performance are:
• Brand equity
• Market share
• Customer satisfaction
Brand equity
Brand Equity is the value of a brand, or can be summarized as the perceived value by consumers over
other products. The equity of brand is important because, if the brand has positive brand equity, the
organization can charge more for the products and services than the generic products or other
competitors. Brand equity helps to retain the loyal customers and add more prospective consumers
towards the business. It is the image that customers perceive about a company and its products. This
image holds certain value that the organization could add up to their products. Brand equity is obtained
through brand loyalty. It is necessary to maintain positive brand equity in order to obtain larger market
shares. The 5 stages of brand experience that lead to positive brand equity are:
• Brand awareness
People are aware of the brand and products.
• Brand recognition
Consumers are aware of the product the brand offers and also about the what it offers other than
its competitors
• Brand trial
Customers have tested and tried the brand
• Brand preference
Consumers like the brand and become repeat purchasers. They begin to develop emotional
connections to the brand
• Brand loyalty
Customers have desire of the brand only and will not easily substitute for other products.
Market Share
Market shares means the number of products or services that a company sells compared to the number
that other companies sell. Companies increase market share through innovation, strengthening
customer relationships, smart hiring practices, and acquiring competitors. A company's market share is
the percentage it controls the total market for its products and services. It can be measured by the sales
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revenue it generates. To evaluate the company's market share, the company must record its periodic
sales revenue. Growth matrix can be used to measure market share of a company. It includes 4
categories:
• Star (High share and high growth): Invest on the product

• Cash cow (High share, low growth) : Milk the product
• Question marks/problem child (Low share, high growth) : Analyse the product
• Dogs (Low share, low growth): Divest the product
Sales break-ups between the existing Brisbane stores of Houzit are:

• 30% bathroom fittings
• 35% bedroom furnishings
• 20% mirrors and decorative items
• 15% lighting fixtures (recent addition).
Hence the following strategies can be used:

Bathroom Product: It is under star category. The strategy to use is to invest on the product – increase
the assortment, increase on advertising and promotions.
Bedroom furnishings: It is under star category. The strategy to use is to invest on the product – increase
the assortment, increase on advertising and promotions.
Mirrors and decorative item: It is under Problem child. The strategy to use is to analyse the product-
increase the product quality and variety, increase on advertising and specially promotions.
Lighting fixture: It is under Problem child. The strategy to use is to analyse the product-increase the
product quality and variety, increase on advertising and specially promotions.
Customer satisfaction:
Customers are the of market. Their satisfaction is the ultimate goal of today's marketing era. It can be
measured with the following methods and attributes:
• Survey customers.
• Post sales surveys.
• Understand expectations.
• Find out where you are failing.
• Pinpoint specifics.
• Assess the competition.
• Try to measure the emotional aspect.
• Loyalty measurement.
• A series of attribute satisfaction measurement.

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Tactics:
Marketing Schedule of Cost Accountabilities Coordinating KPIs

strategy Activities and and
Responsibilities monitoring
activities
Price After product $10000 Marketing Survey To identify
is formulated manager market price how much a
and standard customer is
of living willing to pay
Product After place is $25000 General manager Determining To provide the
determined the customers' quality
need and product that
requirement customers
want
Place First step $35000 Product Manager Analyse the To get the
urban location suitable place
to set up store
Promotion After price is $55000 Sales and Identify the To attract
fixed Marketing upcoming potential
Manager promotional customers and
events brand
awareness
The legal and ethical requirements that impact on the marketing activities are:
• Federal state and territory laws
• Industrial awards and agreements
• Contract of employment
• Ensuring safe work environment
• Security bonds
• Insurance bonds
• Legal costs
Pricing regulations
While setting up the prices for products, the company needs to comply with pricing regulations and
display the price clearly and accurately.
Intellectual property
Intellectual Property secures the right of another person's or business's who have developed the
product.
Trade mark laws

When preparing your branding, business name or website name, you need to ensure aren't in breach
Australian or international trade mark laws.
International regulations
When a business is involved in export or oversea expansion, it should comply with Australian
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regulation as well as and international regulations.
To determine the appropriate strategy for an organization, a detail analysis of internal and external
factors affecting the organization must be done. Resources and capabilities can be transformed into
competencies of an organization that can lead to a sustainable competitive advantage. The following
process must be adapted to create strategy that fits the organization.
a. SWOT analysis: A detail analysis of an organization's strength, weakness, opportunity and threat
must be done. Organization's strength should be matched with the new opportunity to gain the
competitive advantage.
b. Identify strategic options: Techniques like brainstorming should be used to match with the
organization's mission statement.
c. Evaluate and select the best option: The best strategies should be selected to meet the targeted
objectives of the organization, matching its resources and capabilities.
To gain the competitive advantage from the organization's resources and capabilities, appropriate
tactics must be created that fits within the organizational resources and capabilities. The tactics
developed above is based on the organizational resources and capabilities. Cost is determined by using
0.83% of the total revenue of the year. The human resources of the organization like marketing
manager, general manager, product manager, etc are used to coordinate and monitor the specific
activities. Determining key performance indicator aids to the direction of organization towards the goal
achievement.
Case study
Houzit is a chain of homewares stores in Brisbane that specialise in bathroom fittings, bedroom fittings,
mirrors and decorative items. They currently have 15 stores spread across the greater Brisbane area,
with all stores being managed and coordinated from their head office in Milton.
You have recently been appointed as the marketing manager and must now review the organisation and
devise marketing strategies that will move Houzit towards its strategic goals.
The CEO has also asked you to consider some marketing opportunities that may assist Houzit in
reaching its goals, and provide him with brief summary evaluating two alternatives, including the benefits
and risks associated with each option, and making a recommendation for the opportunity most likely to
produce results.
You have gleaned the following information about Houzit:

Houzit is close to entering its fifth year of operation; offering a wide range of home-ware items on easy-
to-manage payment terms and supplies a three-year guarantee on every item sold.
The typical target customers have the following characteristics:
 sophisticated people who are house proud
 shoppers who will drive to an easy-to-access store
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 customers who require payment plans to spread their commitment over an extended period
 renovators and new home builders
 20–50 year olds.
Houzit recognises the following trends and focuses its efforts on them:
 Quality – Preference for high quality items is increasing as customers are learning to appreciate
differences in quality.
 Unique items – Customers want homewares that stand out from mass-produced, low quality items.
 Selection – People are demanding a larger selection of choices, they are no longer accepting a
limited selection of homewares.
The typical Houzit store has the following characteristics:

 Location – A commercial, suburban neighbourhood, or urban retail district.
 Design – Bright and functional.
 Size – 1,000–1,500 m2.
 Employees – 15–20 full time, plus several casuals
 Types of transactions – 60% cash, 40% on long-term repayment plan.
Sales break-ups between the existing Brisbane stores reveal:

 30% bathroom fittings
 35% bedroom furnishings
 20% mirrors and decorative items
 15% lighting fixtures (recent addition).
A new customer’s first purchase is generally of mirrors and decorative items and this gives us the
opportunity to sign them up to our loyalty program.
In a brief discussion with the CEO, you asked about the changes taking place in legislation that could
impact on Houzit’s operation. The CEO explained:
‘There is a big push by governments on the issue of sustainability. This focuses mostly on environmental
issues of waste management and energy conservation. Houzit stores have been deliberately designed
in the past to be bright and comfortable places to shop. This means a significant cost in electricity usage
to run the lights and the air-conditioners. With the new regulations we are going to have to find ways to
still provide customers with what they want without the high electricity usage.’
Strategic Plan (Extract)

Vision
Houzit will be a national retail brand, catering to the needs of home makers with a range of unique, high
quality homewares made accessible to all through our easy to manage payment plan.
Mission
By 2020, Houzit will have a significant retail presence in homewares in every Australian capital city,
starting with 15 stores in the greater Brisbane area and growing to 100 Australia wide.
Objectives
Increase sales from $15million per year to $20million per year in the next three years.
Increase our loyalty customers list from 10,000 to 15,000.
Establish brand recognition in Brisbane so that at least 1 in 3 people recognise our brand in a random
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survey taken in 18 months time.
SWOT Analysis
Strengths:
Excellent staff who are highly skilled and knowledgeable about homewares.
Great retail space that is bright, functional and efficient for a commercial urban district.
High customer loyalty among repeat customers.
Assortment of offerings that exceed competitors’ offerings in quality, range and accessibility.
Weaknesses:
A limited marketing budget to develop brand awareness due to the lack of critical mass and store cover.
The struggle to continually fund the growing long-term repayment plans taken out by our customers.
Opportunities:
A growing market in a high growth area with a significant percentage of the target market still not aware
of Houzit’s offer.
Increasing sales opportunities outside of our target area – greater Brisbane.
Threats:
Competition from local independent retailers can drive down prices, as owner operators have lover
overhead costs than our staff-run stores.
Competition from national chains moving into the Brisbane market.
A slump in the economy reducing customer's disposable income spent on homewares.

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Assessment Task 2
Instruction for the student
This is an individual assessment. In this assessment task you are required to review the strategies and
tactics you devised in Assessment Task 1 and describe how they meet the requirements for the
organisation. You also need to develop a presentation of your marketing strategies that outlines the
strategies, your approaches and your reasoning for developing these and incorporates feedback from
key stakeholders.
To be deemed competent you will need to successfully demonstrate the following:

You must:
 submit and present a marketing plan that follows the instructions as set out in the procedure.
Procedure
For the organisation outlined in the case study materials from Assessment Task 1, and using the
strategies and tactics developed in Assessment Task 1, you will need to prepare a marketing plan using
the headings below:
 Executive summary – Provide an overview of the organisation and the plan, which simply states
what is to be achieved.
 SWOT analysis – Submit an overview of the organisation’s strengths, weaknesses, opportunities
and threats (analysed in Assessment Task 1).
 Marketing objectives – Include the objectives of the organisation (discussed in Assessment Task
1).
 Strategies – Outline the marketing opportunity selected and strategies developed in Assessment
Task 1. Include your reasoning for the marketing mix decisions that you made and the strategies you
selected, referring to the SWOT, risk and gap analyses undertaken.
 Implementation – Provide an outline of the tactics devised for implementation in Assessment Task
1. You need to provide you reasoning for choosing these tactics, and outline the process for
reviewing performance.
When you have finished writing your marketing plan, you need to:
 liaise with your supervisor (your assessor) to arrange a suitable time and format for presentation
 present the plan to key stakeholders (a group assembled by your supervisor) in the format specified
by the assessor and at an agreed time
 allow for feedback on the plan from stakeholders within your presentation.
During your presentation, you will need to ensure you demonstrate:

 the appropriate communication skills to relate to a diverse range of people
 the leadership skills to gain the trust and support of stakeholders for the plan you present.
 After you have presented your report and incorporated feedback from key stakeholders, you need to
revise and send your final written report to your supervisor (your assessor).
1.0. Executive Summary
Australian Furniture market is in its maturity stage of industry life cycle and is characterised by limited
growth, high competition and market saturation. Houzit is a chain of homewares stores in Brisbane that
specialise in bathroom fittings, bedroom fittings, mirrors and decorative items. It aims to be a national
retail brand, catering to the needs of home makers with a range of unique, high quality homewares
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made accessible to all through our easy to manage payment plan. Currently there are 15 stores spread
across the greater Brisbane area, with all stores being managed and coordinated from their head office
in Milton. Houzit has developed a clear targeted customer having the following characteristics:
• sophisticated people who are house proud
• shoppers who will drive to an easy-to-access store
• customers who require payment plans to spread their commitment over an extended period
• renovators and new home builders
• 20–50 years old.
Houzit has a clear analysis of market trends and focuses its effort on them to meet its objectives.
Quality, Unique items and larger selection are the major market trends of homeware. It has mission to
have a significant retail presence in home wares in every Australian capital city, by 2020, starting with
15 stores in the greater Brisbane area and growing to 100 Australia-wide.
2.0. SWOT analysis
Strengths:
• Focus on major attributes that customer desire in the product (that is quality, uniqueness and
larger selection options).
• Highly skilled and knowledgeable employees in the homeware field.
• Updated with the government policies and tries to maintain the terms according to the law.
• Location and interior design are the strength.
• High customer loyalty among repeat customers
• Long term payment plan that Houzit offers to the customers
Weaknesses:
• The limitations in the marketing budget to develop brand awareness
• The struggle to continually fund the growing long-term repayment plans taken out by the
customers
• Rival companies have better prices, visibility and presence in the market
Opportunities:
• Go for online stores as people are choosing products through online medium.
• Mobile apps and social media marketing.
• Sales opportunity around the other area of Australia.
• International expansion
• Franchising and joint venture opportunities
Threats:
• Competition from international brands.
• Economic downturn can affect customer's spending pattern
• Local competitors' threat

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3.0. Company objectives and direction
3.1. Marketing objectives
• Revenue: Increase sales from $15million per year to $20million per year in the next three
years.
• Loyal Customers: Increase our loyalty customers list from 10,000 to 15,000.
• Brand Recognition: Establish brand recognition in Brisbane so that at least 1 in 3 people
recognise our brand in a random survey taken in 18 months' time.
3.2. Market Trends

Houzit recognizes the following trends:
• Quality – Preference for high quality items is increasing as customers are learning to appreciate
differences in quality.
• Unique items – Customers want homewares that stand out from mass-produced and low-quality
items. Selection – People are demanding a larger selection of choices; they are no longer
accepting a limited selection of homewares.
4.0. Strategies:
4.1. Marketing Option
To attain the objectives of the organization, Houzit needs to use franchising option. The company has
an opportunity to open new stores in the areas close to Brisbane (in the coast cities and towns of
Queensland and New South Wales) and introduce the new line of products which could be recycled.
The marketing mix strategy includes place, product, price, and promotion. Opening new stores in
Rockhampton. Cairns, Newcastle, Sydney, Port Macquarie will give the company an opportunity to
control the quality of the service and the goods and deliver the goods to the stores without delay.
4..2. Marketing Mix Strategy

Houzit has an objective to increase it's sales by $5 million per year in coming next three year. To
acquire the objective, the marketing mix strategy prepared suits the best.
Price:
The similarity of price in all stores, promotional pricing in new openings and long term payment
facility develops brand equity among the people with eventually gains customer loyalty. Moreover,
Houzit has many domestic as well as international competitors so it should determine its product price
on the basis of those factors. This strategy will help Houzit reduce the gap of lower brand recognition
and attract new customers as well.
Promotion:
Since Houzit is expanding its business and it is new to many people in different places, promotion is
very important factor to increase the sales. The best promotion in today's digital world can be done
through social sites and through digital marketing. To create brand awareness, Houzit must use this
medium. Also, product introduction by master franchisees may help in further local promotions.
Product:
Houzit is currently limited mainly to sell products such as bathroom fittings, bedroom furnishings,
mirrors and decorative products and lighting fixtures to generate revenue. With growth of stores,
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Houzit should add more products. Also, Houzit should maintain the major features (quality, uniqueness
and larger selection) within all the stores to retain its loyal customers. It should support locally sourced
product contents.
Place:
Houzit should use the opportunity of going to online platform to access large number of customers and
facilitate customers to save their time in purchasing their product. Other stores should be located in
urban areas with high income and living standards and the bright design of the store should be
maintained, but by adding mirrors. Mirrors reflect the lights which helps to brighten the store with less
electricity. It will help to comply with the government policy of sustainability. This will help to achieve
the objective of gaining loyal customer and reduce the risk of being unable to control the franchisee.
4.3. Tactics
Marketing Accountabilities Coordinating KPIs Reasons to choose the
strategy and and tactics
Responsibilities monitoring
activities
Price Marketing Survey To identify how -It helps to identify the
manager market price much a competitor's offering
and standard customer is price
of living willing to pay
-It helps to determine
the quality of product,
customer demands of
Product General manager Determining To provide the - It helps to increase
the customers' quality product sales by capturing new
need and that customers market segment by
requirement want making the business
sustainable.
- It helps to maintain the

quality of product and
offer wide range of
product.
Place Product Manager Analyse the To get the - All products are
urban location suitable place available at company’s
and online to set up store retail stores that follow
platform to the sustainability
requirements of the
government
- It helps to reach wider

range of perspective
customers
Promotion Sales and Identify the To attract - All forms of
Marketing upcoming potential promotional activities
Manager promotional customers and (digital, promotional
events brand pricings) are used to
awareness enhance brand
recognition among new
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market segment
4.4. Performance Review

After preparing a plan, it is important to review the performance of an organization to ensure there is
no deviation in actual performance and plan. The estimated expected performance with the actual
performance will be compared using KPIs and targets. The variances will be recorded and reported.
The following is the process to review performance.
• Monitor the progress

It is important to conduct an evaluation of each goal at regular intervals. It helps to determine if
the progress to the desired goal is slower than the other. Use marketing performance metrices
as below can help to monitor the progress.
- Brand Awareness Survey

- Customer satisfaction Survey
- Check for changes in sales
- Lead Generation: Lead generation describes the marketing process of stimulating and
capturing interest in a product or service for the purpose of developing sales pipeline.
- Customer Acquisition
- Customer Retention/Loyalty
- Website Traffic
• Return on marketing investment (ROMI) – ROMI is used to help marketers measure the
performance of activities across the marketing mix. The purpose of metrics such as ROMI is to
measure the degree to which marketing spending contributes to profits. Even when the
marketing strategies are helping to achieve the desired goal of the organization, it will not be
sustainable if the investment on them cost more than what they make. So, ROMI should be
calculated. Calculate the cost of each campaign and the man-hours that go into each project,
then measure that cost against the campaign's profits to determine the return on investment. If
there is no change in profit, the campaign may not be worth keeping.
• Compare the Strategy to Competitor

If the competitors of Houzit are using similar strategies then the difference in frequency,
quality, content and response can be compared in order to review marketing strategies
performance. Profits, number of social media followers, etc could also help in it.
• Web Analytics
It helps the visibility of the website in order to target audiences against potential audiences and
compare them against competitor and industry benchmarks.
• Review using product life cycle

The estimated expected performance with the actual performance will be compared using KPIs
and targets. Product life cycle is an efficient tool to review the performance of marketing

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strategies. It can be used to review the marketing performance.
5.0. Conclusion
A marketing plan helps remove the fog and barriers to vision. Marketing plan is essential in all the
organization. It helps an organization to take advantage of new opportunities, obtain a clear direction to
retain the customers and create brand awareness.


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Bsbmkg 609 - Marketing

BSB51918 Diploma of Leadership and Management (Australian Pacific College)

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Australian Ideal College

Assessment Submission Sheet

Unit Code BSBMKG609 Develop a Marketing Plan

Assessor Use Only

Assessment Items Result

Task 1 Case Study

Final Result for this unit

Assessor Declaration: I declare that I have

Assessor’s Final Comments

AIC-BSBMKG609-Assessment Tasks-V4.0 Page 1 of 19

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To be deemed competent you will need to successfully demonstrate the following:

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20% mirrors and decorative items

Resources of the organisation:

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training and assistance in some cases.

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• Appoint state & territories master franchisees

Marketing mix strategies:

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Product life cycle:

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utilization. The strategies in this stage are:

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• Star (High share and high growth): Invest on the product

Sales break-ups between the existing Brisbane stores of Houzit are:

Hence the following strategies can be used:

AIC-BSBMKG609-Assessment Tasks-V4.0 Page 9 of 19

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Marketing Schedule of Cost Accountabilities Coordinating KPIs

Trade mark laws

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regulation as well as and international regulations.

You have gleaned the following information about Houzit:

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The typical Houzit store has the following characteristics:

Sales break-ups between the existing Brisbane stores reveal:

Strategic Plan (Extract)

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survey taken in 18 months time.

AIC-BSBMKG609-Assessment Tasks-V4.0 Page 13 of 19

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To be deemed competent you will need to successfully demonstrate the following:

During your presentation, you will need to ensure you demonstrate:

1.0. Executive Summary

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2.0. SWOT analysis

AIC-BSBMKG609-Assessment Tasks-V4.0 Page 15 of 19

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3.0. Company objectives and direction

3.1. Marketing objectives

3.2. Market Trends

4.1. Marketing Option

4..2. Marketing Mix Strategy

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- It helps to maintain the