Houzit 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 a 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; offers a wide range of homeware 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 houseproud 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 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, and 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 sales of: 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 1. Increase sales from $15 million per year to $20 million per year in the next three years. 2. 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 survey taken in 18 months. 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 lower overhead costs than our staff-run stores. Competition from national chains moving into the Brisbane market. A slump in the economy reducing customers' disposable income spent on homewares

Assessment description

This assessment his divided in four (4) sections. This assessment requires you to devise a marketing strategy, plan marketing tactics, prepare the marketing plan and present and adjust the marketing plan.

Procedure

Section 1: Devise a marketing strategy Write report that outlines the marketing strategies required for a marketing plan. You may use the case study scenario in Annex VII to complete the tasks. 1. Evaluate the options for marketing opportunities. a. Provide a summary of the organisation's business structure and products/services it provides. b. Address the organis.ational objectives. c. Evaluate the risks and returns in the selection process. 2. Identify the organisation's strengths and opportunities in line with its current capabilities and resources. a. Complete SWOT analysis. b. Complete gap analysis. c. Identify at least two possible alliances, and weigh up the advantages and disadvantages

3. Develop feasible marketing strategies for the product/service. a. Identify the strategies for pricing, placement and promotional channels. b. Describe a marketing mix, such as the people, processes and physical evidence. c. Identify the target market segmentation. d. Recommend marketing strategies and explain how they align with the organisation's strategic direction. 4. Develop a marketing performance review strategy. The strategy must be able to: a. Measure the organisation's marketing performance using marketing metrics such as numbers of clicks, conversion rates and return on investment (ROI). b. Review organisational performance, such as by using progress reports. Section 2: Plan marketing tactics 5. Write report that details a tactical plan for implementing each of the marketing strategies you recommended. a. Develop a coordination and monitoring mechanism for scheduled activities, such as a work schedule or project management application. This includes: Detailing a budget for implementing the marketing strategy Identifying the people responsible for tasks, including internal and external stakeholders such as suppliers and specialists. b. Explain how the strategies are achievable in line with the organisation's objectives, capabilities and budget. c. Explain how the tactics meet legal and ethical requirements. d. Identify ways to review the ongoing performance against the objectives and budget, and adjusted if required. Section 3: Prepare the marketing plan 6. Develop a marketing plan. a. Meet organisational and marketing objectives. b. Incorporate marketing approaches and a strategic marketing mix.

c. Ensure there is a rationale for objectives and information that supports the choice of strategies. Section 4: Present and adjust the marketing plan 7. Present the marketing plan in the required format and time frame using appropriate language and nonverbal techniques. The format could be: written report slideshow presentation spreadsheet combination of methods. 8. Make adjustments to the marketing plan in response to feedback from key stakeholders. Feedback may be obtained through: evaluation forms listening and questioning via face-to-face interviews group feedback sessions online surveys. 9. Disseminate the plan to key stakeholders for implementation in the required time frame. This may be via: email team meetings project management applications. Specifications You must submit: 1. Report on marketing strategies (Task 1 - 4) 2. Tactical plan (Task 5) 3. Marketing plan (Task 6) 4. Marketing scorecard (Task 6) 5. Evidence of marketing plan presentation (Task 7) 6. Feedback from key stakeholders (Task 7) 7. Adjusted marketing plan (Task 8) 8. Evidence of distribution of updated plan to key stakeholders (Task 9)