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 product’s 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 product’s market segment penetration, or the product’s total sales in proportion to the category’s competition. Moreover, Houzit can use in-store promotions to improve the results of our customer survey shows that as well. the disadvantage for Houzit's webpage is boundedness of facility for customers to order and make online purchases. 3. “exotic mirrors” and “bathroom fittings” can be add to Houzit home pages. in-store promotions can be leveraged to introduce new product launches into retail stores. and how many old customers were retained. they need to monitor. Customers are able use the 10% discount coupons during the promotion period in any Houzit stores. Integrated companies are highly vertical and hierarchical in nature. Wet-based Promotions Currently. Houzit do not need to pay for expensive shop premises. the key word such as “stylish bathroom”. and not just in the area where the shop is based. . Integration of Marketing Activities Integration relates to how the different areas of the company coordinate their operations. These keywords will also be secured via pay-perclick traffic directing. So createing and improving the facility of online sales should be considered as one of the most important distribution channel for Houzit. Other metrics focus on how well a campaign creates awareness of a company and its brand. In terms of financial information. 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.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. running costs and sales staff. These metrics vary depending upon the size and type of marketing campaign initiated and the goals of the company for the specific campaign. These companies operate from a "topdown" mindset. Online store can reduce long term costs. Houzit. marketing metrics focus on the return on investment of campaigns by comparing their cost to the amount of business that they return. Lastly. measure and evaluate the progress of its marketing activities and campaign. where the management dictates the structure of each department rather than allowing the individual departments to set their own agendas.as a homewares company. Also the products can be sold to customers all over the country or world. The online purchases are going to be one of the most popular shopping way for most ranges of customers. A highly-integrated company has strong connections between departments and product lines. 2. with each section working under a cohesive set of rules and strategies. Monitor Progress In order to ensure that Houzit is successful and they are meeting the organisation's marketing objectives. how many new customers were attracted. Marketing metrics are statistical measurements by which companies judge the effectiveness of their individual marketing efforts. Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their businesses. Market Share The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. build customer loyalty to increase customer satisfaction.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. Market share increases can allow a company to achieve greater scale in its operations and improve profitability. Distributing and Pricing Distributing Online retailing a new distributional channel. in addition to trying to grow the size of the total market by appealing to larger demographics. 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. 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. Avoid making these customer retention mistakes. lowering prices. set customer expectations early.Company have decided to update the webpage . 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 customer’s expectation. and leverage action based emails. If consumers are willing to pay more for a generic product than for a branded one. This metric is used to give a general idea of the size of a company to its market and its competitors. or through advertising. Mass marketing campaigns can also help to create brand equity. Companies are always looking to expand their share of the market. Marketers are under more and more pressure to “show a return” on their activities. Houzit can create brand equity for their products by making them memorable. however. easily recognizable and superior in quality and reliability. This might happen if a company had a major product recall or caused a widely publicized environmental disaster. 4.Houzit should foucus on measuring customer satisfaction. the brand is said to have negative brand equity. In the next six months. the benchmark has be set by board of Directors of 12%. or keep the prices as they are but offer a premium with that price. KPIs evaluate the success of Houzit in which it engages. 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 so that the customers can order and pay online. Accordingly. Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. KPIs A performance indicator or key performance indicator (KPI) is a type of performance measurement. The distribution of Houzit Products via the online store can be monitored for the number of sales. This premium could be in the form of quality service. Houzit has to monitor very closely whether it needs to lower its retail prices in order to compete with its competitors. 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. and or/ free delivery or installation of bathroom fitting products and mirrors. This cost is incurred by the organization to convince a potential customer. This metric is used to give a general idea of the size of a company to its market and its competitors.5% increase in sales revenue has be set by Houzit's board of Directors. Online retail business opportunities are numerous and choosing the appropriate business model for selling Houzit's products can make or break a business opportunity. 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. It can be calculated using growth in sales divided by previous year's sales. For Houzit. Often success is simply the repeated. The online retail business model provides a foundation for delivering products to consumers and generating revenue for Houzit to gain more market share. Market Share The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. choosing the right KPIs relies upon a good understanding of what is important to Houzit. 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. 5. 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. periodic achievement of some levels of operational goal and sometimes success is defined in terms of making progress toward strategic goals. and accessibility costs. 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 . Communication Strategies Marketing communications is a rather generic term for a very important function of marketing. The calculation of customer valuation helps a company decide how much of its resources can be profitably spent on a particular customer. marketing. it helps to decide the worth of the customer to the company. This is an important business metric. product positioning and brand messaging. the role encompasses much more. 6.BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management) Submitted by Fan Chen involved in research. • Tony – he is a specialist search engine optimizer and webpage designer • Marie – advertising /PR • Lamberts consulting – market research and marketing audits 7. In general terms. While public relations is a form of marketing communications. 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. It plays a major role in calculating the value of the customer to the company and the resulting return on investment (ROI) of acquisition. Communicating and disseminating information has become increasingly important. including content development. 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. • Other staffs. James Yong. 3. Marie should use contrasting colors for fonts and backgrounds to make sure that your copy is readable. or missing information. she need to have more communication with Tom. Marketing Manager Meeting notes: 1. The best combo is dark type on a light background because it’s easier to read. especially products and promotions-10% discount voucher and values added service) Object 1 . CEO Ms. Tom Watkins.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. they can read over the advertisements to make sure there aren’t spelling errors. incorrect information.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.