Marketing Plan & Organizational Overview of the Houzit

The organization is Houzit is nationally recognized retail brand and is an expert in fulfilling the needs of home makers, home decorators by providing high quality products and make it easy and accessible for customers by easy payment method. It is the objective of organization to grow nationwide so that its products are available in every house of Australia. The mission of the company is to grow and increase the number of stores from 15 to 100. The objectives include increase of sale from $15 million per year to $20 million per year in years to come. The current customer’s loyalty list contains 10,000 people; aim is to take it to 15,000. Another objective is the encouragement of the recognition of the brand so 1 in every 3 people recognizes the brand in survey to be taken in coming years.

Houzit is a chain of home ware stores which sell bedroom fitting, bathroom fittings, decorative items and mirrors. The organization is located in Brisbane and currently operates 15 stores in that area but all the branches are in coordination and under management of head office located in Milton. Houzit is functional from last five years, it is located in urban area and easily accessible and reachable for people living around, they have an easy system of payment and provided three year guarantee on every product they sale building long term customer relationship and customer satisfaction. The organization moves along the current focuses and trends. They have quality product to ensure the happiness of their customers, the items sold within organization are uniquely designed and decorated.

The stores are located in commercial area with full time 15-20 employees and size of the organization is 1000-1500 m2. The company provides easy transaction facility and sales on items help to attract customers and establish customer loyalty by signing up in customer loyalty program. There are several strengths and weakness of the organization. The strengths include well trained staff with great skills and knowledge about house wares, high loyalty of customers, store location in commercialized area, offerings which are superior and better than that of competitors in terms of quality, accessibility and range. The weaknesses include low budget for marketing of house ware products and struggle to fund the long term payments which is a part of customer care and loyalty.

There are few gaps between current resources and capabilities than those that exist in the organization such as lack of budget for marketing, increase competitors, lack of resources to be recognized nationwide, increased market competition and economy reducing customer income.

Opportunities of the Houzit

There are two strategies which can be utilized within Houzit. Improved marketing strategies can result in organizational development and growth; can result in business to expand and prosper. The suggested strategies are market penetration and development and the other strategy is product development and recognition.

Market penetration and development of the Houzit

This marketing strategy requires selling already existing products efficiently and increase the share in already existing market. This also requires selling products to new customers and these new customers can be in different location and new region within or beyond the boundaries of nation. It has advantages such as doubling of sales, it gives innovative view of the company product and it can increase the customer loyalty and introduction of new customers to get associated with Houzit. It has lower risk as compared to any other market strategy as it does not harm the already existing reputation of the company.

Product development and customer care of the Houzit

This strategy allows the development of products of the company and introduces it into a new market. The product can be developed by adding new features and diversification to already existing brands such as ceramic bathroom wares can be made available in different designs as per suggested and demanded by customers. This marketing strategy has several advantages as well. The products are made according to will and demand and need of customer so it can be sold efficiently. It has risks such as if products are not high quality and could not meet the demands of the customers then they can meet negative feedback which can harm the reputation of the company.

The recommended strategy is the market development and penetration as it allows the growth of already existing products in a new market as well as among old and new customers. It is a strategy which is manageable by the current available resources of the company this can allow the organization to have higher market share along with lower risk.It is the objective of Houzit to increase the sale from $10 to $ 15 million every year and open up branches nationwide. This can be done through meeting the demands of people of certain age group as the Houzit products are common among people 20-50 years old. So this group of people is the focus in existing branches and should focal point in new areas.

When the strategy of selling products to this group of people in all areas it will result in market growth and new customers will found such dedication and hard work appreciable too and long term relationship will also be established. When the products are sold in higher quantity than ever before in the existing market, this will allow attaining of greater market share. The main target is not let any new strategy harm the existing marketing strategy and position and this object is being fulfilled by the implementation of this strategy. After the realization of success of the product there is nothing which can undermine it.

This strategy can be implemented by following stated steps.

Maintenance and increase of market share

Insurance of dominance in already existing market

Restructure a functional market to get competitors out of the way

Increase in customer usage

Maintenance or increase of already existing share within market which can be done by implying competitive advertising and pricing strategies to promote the sales. The next step of securing dominance includes involvement of something new and effective such as making products common among another age group people. For that customer feedback is necessary and will allow extension of this market as well as in a new market.

Third step includes restricting of market in such a way that competitors are driven out it can be done by implying aggressive approaches for promotion. The pricing strategy will drive out all the small competitors existing in the market. The final step is the encouragement the use of already existing customers which can be done though loyalty schemes which add value to the organization and strategy hence the technology changes.

The successful penetration in market requires brief knowledge and activities about the competitors and existing functional market. The metrics which are used to measure marketing performance include size of the market, share of the market, penetration in the market, usage of the product, image of the organization and its products, attitude of customers, satisfaction of the customers, awareness of the brand and advertisement of the organizational products.

Tactics of the Houzit

In order to implement the market development and penetration strategy the first requirement is the brief discussion of the strategy with the team and CEO. Attention should be paid and analysis should be done that how the strategy is going to work for the Houzit. The markets which are easy for company to conquer should be selected initially and get developed and recognized over there in order to expand its wings in all over Australia. This can be done by advertising the company ware via web advertisements as well as on television. The annual or seasonal discounts can also play a part and position of our products should be better understood.

The cost of advertisement and promotion of company can be under the annual budget of the company and a suitable portion can be spent upon implying the strategy. The market distributors and advertising agencies require certain amount of money and the product can be sold through online pages and website of the company with brief description of each product. A dedicated team should be there to handle and monitor all the matter online.

The accountability and responsibilities of these products fall on the shoulder of marketing manager and his team whose prime duty is to promote the product. The progress or development in the strategy can be discussed through and made easy by the help of holding meetings with the team and report the senior managers and CEO every second week and discuss essential matters such as manufacturing of the products.

The strategy should be safe and without any deception including all the logical and practical steps. The prices are optimum which is affordable by the customers but there can be a minor issue of privacy as data will be collected from customers based upon their needs and demands. Houzit has well trained and skillful employees and the strategy is under the budget and meets the demand of customers as well objective of increasing sale and growth can be achieved.