Marketing Plan Management and Small Business Growth - Case Study Example

Name Grade course Tutor Date Marketing plan management 1. Executive Overview Houzit is a chain of home ware stores based in Brisbane. As the name suggests, the chain deals with products which are used in home care. The current marketing plan was prepared over one year ago and hence is not doing much to help the company achieve its objectives. Owing to the continued poor performance, the marketing manager was instructed by the CEO to come up with a marketing strategy which enable the chain of stores shall achieve its objectives of achieving a 12% market share and an increase in sales by over 8.5% when compared to last year's results. The marketing manager is assisted in the marketing role by two people. Marie is in charge of advertising and Public Relations while Tony is a specialist in search optimization and design for websites. 2. Situational Analysis 2.1 Marketing Activities Marketing activities for the chain of stores shall include advertising through various media. The first avenue for advertising shall be use of some of the most popular magazines in home ware. The magazines shall provide an opportunity for Marie, who is in charge of advertising and public relations to write about the services offered by the chain of stores. The write up shall be published both in the printed magazines and the magazines' websites. The write up shall concentrate on highlighting the strong point of the chain of stores and giving reasons to potential clients why they should make their purchases from the stores and not anywhere else. The chain of stores shall strive to have a very strong web presence. This shall be achieved through Tony who is a specialist in search engine optimiser and he doubles up as a webpage designer. Through Tony, the chain of stores shall come up with a very interactive websites which shall inform potential clients of the goods offered by the chain, their prices and any discounts that may be on offer. The webpage designer shall strive to ensure that the company's site gets as many hits as possible through web search optimization. The chain of stores shall have a presence in the social networking sites such as facebook and twitter. Through the social media, people shall have access customer friendly information and they shall be in a position to know where the stores are located. The store shall make its customer experience unforgettable by offering delivery services whenever a customer purchases goods worth a certain amount. Applying such techniques shall ensure that the company is able to reach more audience and hence the result should be increased sales. The advertisements that the company shall be running on home care magazines shall also be replicated in the stores and direct clients to other products that Houzit stores offer. The keywords that shall be included in webpage optimization are 'stylish bathroom' and 'exotic mirrors'. The keywords are also to be secured through pay per click traffic directing which shall mean that the company shall earn more income whenever potential clients access its web pages in the internet. The advertising and public relations materials shall carry the Houzit's web address line of "Find us at www.houzit.com." The web company's website shall be upgraded to ensure that customers can order for goods and also make payments for the same online. 2.2 Integration of organizational activities Houzit intends to integrate marketing, promotional and sales activities so that the chain can achieve its goals of marketing. Houzit appreciates the fact that attainment of its goals for increased sales depend on a number of activities which cannot be taken in isolation but must be done concurrently to ensure that the optimal results are obtained. In the advertisement space that the chain shall purchase in magazines that focus on home care products, there shall be a place where the public relations manager shall set out the various other marketing strategies being applied by the company. The write up should also include offers that the companies may be offering and discounts in addition to other services which ensure that customers are able to better appreciate the goods offered by the company. The chain's website shall also include information about various promotional activities that the company provides. This approach shall achieve a number of objectives which include ensuring that customers get 'the whole package' other than getting information bit by bit. 2.3 Monitoring the Progress The Houzit chain shall maintain all important data to ensure that the key indicators are put under check. The company shall maintain data relating to all the relevant factors. There shall be data maintained about the different types of products, distribution and pricing of goods relative to market changes. Keeping of such data shall ensure that the company is all the time kept on its toes so to speak with regard to the prevailing market conditions (Boone and Kurtz 52). Information regarding the current markets needs can be deduced through the volumes that are traded. This data shall be utilized by the company to know what products to order and in what quantities. The company also needs to keep tabs on the means of communication which is most effective. This could be obtained by obtaining feedback from clients about how they came to know of the products and services offered by the company. 2.4 Distributing and Pricing There is need to review the model used in distribution and pricing of the products that the company deals in. Markets are always changing and therefore any business organization must be keen to adjust their prices accordingly (Gitman and McDaniel 31). Failure to observe this would result in the company being thrown out of business. Distribution and pricing can be monitored through maintenance of an electronic database which can provide, at the touch of a button, the direction that the company is taking with regard to volumes of goods moved (Gitman and McDaniel 33). There would be a need to have a weekly review of the sales made. The company should also monitor what the competitors are offering and hence ensure that they offer competitive prices. As provided in the case study, a strong Australian dollar makes imports cheaper. This development would mean that the company could make more orders from outside the country and continue monitoring changes in the strength of the dollar and prices offered by the competitors. 2.5 Key Performance Indicators (KPIs) These are also known as key success indicators. When an organization makes an analysis on what its mission, comes up with its goals, then such an organization should establish a way of determining whether they are achieving their set goals. KPIs need to be defined and measured with accuracy. There is need to set targets for each KPI. For Houzit, the performance indicators would be arrived at by measuring whether Houzit has attained a market share of 12%. Another performance indicator would be establishing if the company's sales have posted an increase of 8.5% as compared to the previous year's figures. Data would have to be collected and analyzed. Failure to achieve the set goals would mean that the strategies adopted by the company are not working. The only logical thing to do would be to change tact. 2.6 Delegation Houzit needs to delegate some of the duties pertaining to marketing. This is best portrayed by having a marketing manager who is deputised by an expert in public relations and advertising and another one in web design and search optimization. Delegation of duties ensures that a task is handled by a person who is most qualified in a given field. Delegating duties to junior members of staff leaves the top management with only policy matters to handle and this ensures that an organization is able to be run smoothly (Boone and Kurtz 17). In the event where a manager decides to handle all the facets of the organization that he is running, he ends up failing in certain areas as he is not qualified in each and every field. Even if one was qualified in more than one field, it would be untenable to handle different tasks without failing in some. 3.0 Situational Analysis 3.1 (SWOT) Strength Weakness Opportunities and Threats Analysis. Strength Houzit is already an established brand in the state of Queensland. The company has a total of fifteen stores spread throughout the state. Houzit has been in the business of providing home wares for a considerable length of time and many people are loyal customers to it. The modest number of branches works in favour of the company because in its efforts to revitalize its business, it has a strong basis in terms of geographical spread and awareness by potential customers. The company is ISO certified and has previously won various awards in the companies engaged in home care services. The company has also established a good name in providing acceptable services to its clients. The company prides itself as offering its clientele additional services which they never get in any other store in the state. The company has employees from different ethnic extractions and a good number of employees are multilingual. This works in favour of Houzit because about 16% of the population speaks other languages other than English. The diversity in the rank and file of the company ensures that they company is able to assess and deliver according to the needs of every segment in the state. Weaknesses Houzit has a number of weaknesses. This makes its position a little bit precarious. Among the weaknesses of the organization is that it has not fully embraced technology. The company does not have a facility to enable customers to purchase for the products of their choice using means such as the credit card which has been embraced by many companies. The company also fails in the area of keeping records whereby up to date software is not utilized to ensure that its records are able to be analyzed in a very short time. Failure in management of products also means that it difficult to assess the preferences by different clients. The company has also been blind to what the competitors have been charging and this threatens the business for the company. Opportunities Brisbane is the capital of the Australian state of Queensland. In addition to being the most populous city in Queensland, Brisbane ranks third in Australia in terms of population. The Metropolitan area of Brisbane has a population of about 2.1 million people. A population of more than three million people is to be found in an area centred on Brisbane; the South East Queensland urban conurbation. Brisbane has the largest economy of any city between Sydney and Singapore. Due to resources boom, Brisbane has experienced consistent growth in the economy. The economy of Brisbane has been spurred by both the white and blue collar industries. These industries include information technology, financial services, petroleum refining and paper milling (Morrison, Breen and Ali 419). These factors point to a market which is ready to be tapped. Brisbane has a good number of retail precincts not only in the Central Business District but also in the surrounding suburbs. The port of Brisbane is an important port in Australia; it ranks third in terms of value of goods passing through it. The port has modern facilities and it forms part of the Australia Trade Coast. This is the area of the country where the economic development is the fastest. The city of Brisbane has people from different backgrounds and it is estimated that about 16% of households in Brisbane use a medium of communication which is not English (Morrison, Breen and Ali 421). Threats Houzit faces a number of threats. Owing to globalization, there are many factors which determine the value of currencies. The fluctuation of the dollar means that the price of goods imported is not constant and could expose a business to possible losses (Fisher 13). Other providers of the same services as Houzit pose an even greater threat. This is because they are able to offer their services at slightly cheaper prices as a result of the economies of scale which favour those businesses with more outlets. The company is also threatened by the reality that people are able to buy the goods that they want directly from other countries. This removes the need for middle men and this ends up shrinking up the business for Houzit. Conclusion A business in Brisbane is likely to do very well. This is as a result of the fact that it is one of the most populous cities in Australia and is a state which is similarly populous. The government policy is favourable to establishment of business. There are few restrictions when one wants to set up in business. The necessary infrastructure and services needed to ensure success of business are available in Brisbane. Brisbane also happens to be a rich city and the prospects for further growth are very good. This means that businesses established around Brisbane are likely to also grow in leaps and bounds. Works Cited Boone, Louis and Kurtz David. Contemporary Marketing. New York: Cengage Learning, 2011. Print. Fisher, Rod. Boosting Brisbane: Imprinting the Colonial Capital of Queensland. Sydney: Boolarong Press, 2009. Gitman, Lawrence and McDaniel Carl. The Future of Business: The Essentials. New York: Cengage Learning, 2008. Print. Morrison, Alison, Breen John and Ali Shameem. Small Business Growth: Intention, Ability, and Opportunity, Journal of Small Business Management, 41.4 (2006): 417-425. Read More