Develop marketing strategies Essay

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective In this assessment task you are required to review and evaluate marketing opportunities for an organisation and develop marketing activities that reflect the strategic directions of the organisation. Assessment description 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. 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 1. Develop an organisational overview that: a. outlines the strategic direction and organisational objectives b. outlines the current size, capabilities and resources of the organisation, including any notable strengths and weaknesses c. identifies any gaps between the objectives, and the current capabilities and resources. Opportunities 1. Identify two marketing opportunities that meet the objectives and evaluate the risks and benefits of each opportunity. 2. Recommend the opportunity that best addresses organisational objectives and: a. develop a marketing mix strategy that fits within the capabilities and resources of the organisation b. describe how your strategies align with the strategic direction of the organisation, and give justifications for your selection 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 d. include the metrics to be used in measuring marketing performance. 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. 2. Outline any legal and ethical requirements that impact on the selected tactics. 3. Describe how the tactics fit within identified organisational resources and capabilities. Specifications This assessment can be completed in your own time, as you work through the related topics in either the Student Workbook, or under the guidance of your assessor. The assessment is due for completion at the completion of Section 2 of the Student Workbook unless another submission time/method is suggested by your assessor. Check with your assessor whether it is appropriate to use a computer for the submission of the report (electronic), or if the assessor requires a hardcopy (printed) version. You must provide: a report containing documents that support all of the instructions outlined in t he procedure above. Your assessor will be looking for whether you have: identified a suitable marketing opportunity conducted research to assess and analyse the market prepared a report outlining your marketing strategies to best take advantage of the identified market opportunities organised your report under the headings suggested in the procedure. Adjustment for distance-based learners: No variation of the task is required. A follow-up interview may be required (at the discretion of the assessor). Documentation can be submitted electronically or posted in the mail. Case study Houzit is a chain of homewares stores in Sydney that specialise in bathroom fittings, bedroom fittings, mirrors and decorative items. They currently have 15 stores spread across the greater Sydney 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 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 Sydney 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 Sydney area and growing to 100 Australia wide. Objectives 1. Increase sales from $15million per year to $20million per year in the next three years. 2. Increase our loyalty customers list from 10,000 to 15,000. 3. Establish brand recognition in Sydney so that at least 1 in 3 people recognise our brand in a random 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 Sydney. 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 Sydney market. A slump in the economy reducing customer’s disposable income spent on homewares.