BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen

A Management Plan for Houzit's Marketing Activities
1. Marketing Activities

The market for home-wares in Brisbane is estimated last year at $175 million per annum
with an anticipated growth rate of the percent in the coming year. The marketing plan for
Houzit are to capture 12% market share and an increase in sales by 8.5% over last year's
result. No expansion stores are planned during this phase of consolidation and on average
the stores achieved $24680 per week for the year.
After reviewing Houzit's marketing activities, there are the marketing activities that show
potential for the organization's growth in seasonal demand that occurs during this period:
Increased marketing- focus on magazine advertising and PR
In -store promotions, in-store displays will feature advertising visuals and ink the featured
products with other areas in Houzit's assortment
Web based promotions,
For the next six months the marketing plan calls for increased marketing to match the
growth in seasonal demand that occurs during this period. Focus in bathroom fittings and
mirror categories with linkages to the other two categories of bedroom fittings and
decorative items.
Magazine Advertising and PR
Key driver in achieving the marketing objectives is through the opportunity of having
advertising space together with a PR write up in one of the leading home-ware magazines
and their website. Some popular magazines that we can cooperate with : Home Beautiful,
Vogue Living Australia, and Australian House and Garden. Magazine advertising can
introduce our products to our customers more easily, and build our public relations with our
customers and the publishers as well. It is the way to expand Houzit's market, and attract
different ranges of customers.
For customers that who have knowledge of our magazine advertising , we can have some
market promotion for these magazine reader customers. The 10% discount coupon that
attached to the advertisements, it would be the way to encourage our customers. But the
discount coupon should have limited period, so in this particular period, we can increase our
sales. If the customers purchase the magazines that with our discount coupon in our store, it
still can be used to get 10% off for the transaction. It would be the good way for some our
customers that walk in store without 10% discount coupon. In this way, our magazine
advertising would not miss any non magazine reader. Magazine advertisement can attracting
new customers through brand awareness and expand our market to gaining competitors'
customers.
In-Store Promotions
Retail stores can be an extremely competitive environment,in-store promotions can help
Houzit differentiate their products from the competition. It can utilize in-store promotions
to increase product visibility and brand awareness with consumers. In-store promotions can
also increase a products consumption rate, or the average quantity of a product used by
consumers in a given time period. Furthermore, effective in-store promotions can enlarge a
products market segment penetration, or the products total sales in proportion to the
categorys competition. Moreover, Houzit can use in-store promotions to improve

BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen
distribution of their products at retailers and strengthen relationships with retailers. Lastly,
in-store promotions can be leveraged to introduce new product launches into retail stores.
Customers are able use the 10% discount coupons during the promotion period in any
Houzit stores.
Wet-based Promotions
Currently, the disadvantage for Houzit's webpage is boundedness of facility for customers to
order and make online purchases. The online purchases are going to be one of the most
popular shopping way for most ranges of customers, the results of our customer survey
shows that as well. So createing and improving the facility of online sales should be
considered as one of the most important distribution channel for Houzit.
Online store can reduce long term costs, Houzit do not need to pay for expensive shop
premises, running costs and sales staff. Also the products can be sold to customers all over
the country or world, and not just in the area where the shop is based. Houzit,as a homewares company, the key word such as stylish bathroom, exotic mirrors and bathroom
fittings can be add to Houzit home pages. These keywords will also be secured via pay-perclick traffic directing.
2. Integration of Marketing Activities
Integration relates to how the different areas of the company coordinate
their operations. A highly-integrated company has strong connections
between departments and product lines, with each section working under a
cohesive set of rules and strategies. Integrated companies are highly
vertical and hierarchical in nature. These companies operate from a "topdown" mindset, where the management dictates the structure of each
department rather than allowing the individual departments to set their own
agendas.
Some of the integrated of organizational activities for Houzit are:
visual advertising links throughout
web address on all material
PR copy used in all mediums
key word throughout.
3. Monitor Progress
In order to ensure that Houzit is successful and they are meeting the organisation's
marketing objectives, they need to monitor, measure and evaluate the progress of its
marketing activities and campaign. Marketing metrics are statistical measurements by which
companies judge the effectiveness of their individual marketing efforts. These metrics vary
depending upon the size and type of marketing campaign initiated and the goals of the
company for the specific campaign. In terms of financial information, marketing metrics
focus on the return on investment of campaigns by comparing their cost to the amount of
business that they return. Other metrics focus on how well a campaign creates awareness of
a company and its brand, how many new customers were attracted, and how many old
customers were retained.

BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen
Return on Market Investment (ROMI)
The purpose of ROMI is to measure the degree to which spending on marketing contributes
to profits. Marketers are under more and more pressure to show a return on their activities.
Return on Marketing Investment (ROMI) = incremental Revenue Attributable to
Marketing ($)/Marketing Spending($)
Customer Satisfaction
Customer satisfaction is a marketing term that measures how products or services supplied
by a company meet or surpass a customers expectation. Customer satisfaction is important
because it provides marketers and business owners with a metric that they can use to
manage and improve their businesses.Houzit should foucus on measuring customer
satisfaction, build customer loyalty to increase customer satisfaction. Avoid making these
customer retention mistakes, set customer expectations early, and leverage action based
emails.
Market Share
The percentage of an industry or market's total sales that is earned by a particular company
over a specified time period. Market share is calculated by taking the company's sales over
the period and dividing it by the total sales of the industry over the same period. This metric
is used to give a general idea of the size of a company to its market and its competitors.
Market share increases can allow a company to achieve greater scale in its operations and
improve profitability. Companies are always looking to expand their share of the market, in
addition to trying to grow the size of the total market by appealing to larger demographics,
lowering prices, or through advertising. This calculation is sometimes done over specific
countries such as Canada market share or US market share.
Houzit will have to examine the statistical and data answers to the following questions:

what is the sales volume during and after the promotional activities?

What is the sales growth?

What is the profit margin/ percentage or was there any loss?

What is the market share?

How effective was the campaign message?

Brand Equity
The value premium that a company realizes from a product with a recognizable name as
compared to its generic equivalent. Houzit can create brand equity for their products by
making them memorable, easily recognizable and superior in quality and reliability. Mass
marketing campaigns can also help to create brand equity. If consumers are willing to pay
more for a generic product than for a branded one, however, the brand is said to have
negative brand equity. This might happen if a company had a major product recall or caused
a widely publicized environmental disaster.
4. Distributing and Pricing
Distributing
Online retailing a new distributional channel- Company have decided to update the webpage

BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen
so that the customers can order and pay online. The online retail business model provides a
foundation for delivering products to consumers and generating revenue for Houzit to gain
more market share. Online retail business opportunities are numerous and choosing the
appropriate business model for selling Houzit's products can make or break a business
opportunity. The distribution of Houzit Products via the online store can be monitored for
the number of sales.
Price
The Price of imports will be monitored against competitors and exchange rate on daily basis
because imports were usually an area of high margins for the company and any loss there
could be a serious issue. In the next six months, Houzit has to monitor very closely whether
it needs to lower its retail prices in order to compete with its competitors, or keep the prices
as they are but offer a premium with that price. This premium could be in the form of quality
service, and or/ free delivery or installation of bathroom fitting products and mirrors.
5. KPIs
A performance indicator or key performance indicator (KPI) is a type of performance
measurement. KPIs evaluate the success of Houzit in which it engages. Often success is
simply the repeated, periodic achievement of some levels of operational goal and sometimes
success is defined in terms of making progress toward strategic goals. Accordingly, choosing
the right KPIs relies upon a good understanding of what is important to Houzit. There are
three key performance indicators (KPIs) will help Houzit measure the progress in achieving
its organisation's marketing objectives:

Increase in sales revenue

Market Share

Cost of customer acquisition

Increase in Sales Revenue
The benchmark of 8.5% increase in sales revenue has be set by Houzit's board of Directors.
It can be calculated using growth in sales divided by previous year's sales.
Market Share
The percentage of an industry or market's total sales that is earned by a particular company
over a specified time period. Market share is calculated by taking the company's sales over
the period and dividing it by the total sales of the industry over the same period. This metric
is used to give a general idea of the size of a company to its market and its competitors. For
Houzit, the benchmark has be set by board of Directors of 12%.
Cost of Customer Acquisition
Houzit's board of Directors has set a benchmark of 15% of new sales generated as an
appropriate customer acquisition cost. Customer Acquisition Cost is the cost associated in
convincing a customer to buy a product/service. This cost is incurred by the organization to
convince a potential customer. This cost is inclusive of the product cost as well as the cost

BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen
involved in research, marketing, and accessibility costs. This is an important business
metric. It plays a major role in calculating the value of the customer to the company and the
resulting return on investment (ROI) of acquisition. The calculation of customer valuation
helps a company decide how much of its resources can be profitably spent on a particular
customer. In general terms, it helps to decide the worth of the customer to the company.
6. Delegation of Staff Roles and Responsibilities

Gurinder I enjoy taking responsibility for the in-store promotions because it keeps me
connected with key personnel and trend in merchandise category sales.

Tony he is a specialist search engine optimizer and webpage designer

Marie advertising /PR

Lamberts consulting market research and marketing audits

7. Communication Strategies
Marketing communications is a rather generic term for a very important function of
marketing. Communicating and disseminating information has become increasingly
important. While public relations is a form of marketing communications, the role
encompasses much more, including content development, product positioning and brand
messaging. Thus we will use the below methods to communicate effectively:

Shared emails

Formal meetings

Informal meetings

Team visits stores

Progress chart

Summary Notes from the Meeting with the CEO

BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)

Submitted by Fan Chen

Meeting date:
Meeting venue:
Attendees:

16 December 2014
Meeting room 1
Mr. Tom Watkins, CEO
Ms. James Yong, Marketing Manager

Meeting notes:
1. Tom approved the marketing activities for the next six months
increase in advertising and PR
hold in-store promotions
web-based promotions
2. Delegation of roles and responsibilities
Marie who focus on the advertisement, she need to have more communication with Tom.
Marie should use contrasting colors for fonts and backgrounds to make sure that your copy
is readable. The best combo is dark type on a light background because its easier to read.
Other staffs, they can read over the advertisements to make sure there arent spelling
errors, incorrect information, or missing information.
3.Communication relating to the marketing activities
Clear communication must be sent out to Marie and Tony
Develop advertisement and PR content with marketing team and communications
department
develop online store with Tony and Accounts departments
Clear communication to staff in stores and store managers ( the marketing activities,
especially products and promotions-10% discount voucher and values added service)
Object 1