Assessment1

Organizational overview:
The company is named Houzit Pty Ltd, it is a retailer for home wares. Houzit is a chain of
homewares stores in Brisbane that specializes in bathroom fittings, bedroom fittings, mirrors
and decorative items.. It is a growing business. It has 15 stores in Brisbane area, with all
stores being managed and coordinated from their head office in Milton. It has 150 staff
members. The analysis of each of the aspect of the company overview is provided under the
following heads. Strategic direction and Organizational objectives
STRATEGIC DIRECTION
The strategic directions of Houzit can be ascertained from the company's vision and
mission. Houzit is a national retail brand that is satisfying the home makers' needs by
providing them unique, wide variety of quality homeware products with an easy payment
procedure.
The mission of the company asserts that the organization is planning to move towards
enlargement of its business by ensuring its presence in all the major cities of Australian
market by the year 2020.
The basic focus of the company is on three parameters: Quality, Unique items and
Selection In this postmodern era every organization should direct their marketing strategies in
way that the strategic goals could be achieved smoothly and efficiently. Strategic direction is
a course of action that leads to the attainment of the set goals of a company. It is also the
vision of the company that is necessary for success in giving direction for employees to
follow in order to achieve set goals. Setting strategic direction involves finding a target
direction and committing to get there. It begins with developing a clear vision for a company
thereby increasing its competitive advantage. Mission and vision of a firm
Organizational objectives

Increase sales from $15million per year to $20million per year in the next three years.
Increase our loyalty customers list from 10,000 to 15,000.
Establish brand recognition in Brisbane so that at least 1 in 3 people recognise our brand in a
random survey taken in 18 months time.
Current size, capabilities and resources of the organization
Houzit has completed almost five years of its operations. This part basically relates to
the characteristics of each of the store that is under the platform of Houzit.
Current size of each of the Houzit store: 1000-1500 m2
Capabilities: Each of the Houzit store has a capacity to generate the following sales breakup
Bathroom fittings: 30%
Bedrooms furnishings: 35%
Mirrors and decorative items: 20%
Lighting fixtures: 15%
Resources: 15-20 fulltime employees along with number of casual workers

Houzit currently has 15 stores spread across the greater Brisbane area and the head
quarter is in Milton. The strengths of Houzit are having the excellent staff that is highly
skilled and knowledgeable about homewares, having a great retail space that is bright,
functional and efficient for a commercial urban district, having high customer loyalty among
repeat customers, having assortment of offerings that exceed competitors in quality, range
and accessibility. However, the weakness of Houzit are a limited marketing budget to develop
brand awareness due to the lack of critical mass and store cover and the struggle to
continually fund the growing long-term repayment plans taken out by our customers.
The gaps between objectives and current capabilities and resources

The objective of growing to100 Australia-wide, currently only 15 stores in Brisbane and none
interstate yet.
The objective of an increase in sales by 20,000 million per year, currently 15,000 million per
year
The objective of an increase of the loyalty customer list by 15,000, currently 10,000
The objective of a brand recognition that 1 in 3 people recognize the brand, currently have
not done any survey yet.
Opportunities
The marketing opportunities identified to meet the objectives are franchising and joint
venture. However when applying those 2 marketing opportunities we need to identify its risks
and benefits.
Benefits
Products and services will have already
established a market share. Therefore there
will be no need for market testing.
A franchise enables a small business to compete
with big businesses, more so than an
Franchising
independent small business, due to the pool of
support from the franchisor and network of
other franchisees.
Organisation can benefit from communicating
and sharing ideas with, and receiving support
from, other franchisees in the network.
Joint venture Gaining access to expertise without the need to
hire more staff.
Leveraging existing technologies and patents
developed by other companies.
Sharing the risk of high-leverage, but uncertain
ventures.

Risks
Costs may be higher than expect. As well
as the initial costs of buying the
franchise, you pay continuing
management service fees and you may
have to agree to buy products from the
franchisor.
After time ongoing franchisor monitoring
might become intrusive
Other franchisees could give the brand a
bad reputation, so the recruitment
process needs to be thorough
Coping with differing cultures,
management styles, and working
relationships that prevail in each
company.
Managing communication with senior
managers and employees in both
companies so theres a consistent
understanding of the objectives of the
joint venture.
Making poor tactical decisions caused by

a misunderstanding of the roles of each

company.

As the Marketing Manager, the franchising are recommended as the best addresses objectives
according to the objectives and the benefits of franchising mentioned above and the
marketing mix strategy will be used and applied in order to fits within the capabilities and
resources of Houzit. Marketing is integral to the success of a business, large or small, with its
primary focus on quality, consumer value and customer satisfaction.
1. A strategy commonly utilized is the "Marketing Mix". This tool is made up of four
variables known as the "Four P's" of marketing. The marketing mix blends these
variables together to produce the results it wants to achieve in its specific target
market.
The following describes the four P's of marketing:

Product
Products are the goods and services that your business provides for sale to your target
market. When developing a product you should consider quality, design, features,
packaging, customer service and any subsequent after-sales service.

Place
Place is in regards to distribution, location and methods of getting the product to the
customer. This includes the location of your business, shop front, distributors,
logistics and the potential use of the internet to sell products directly to consumers.

Price
Price concerns the amount of money that customers must pay in order to purchase
your products. There are a number of considerations in relation to price including
price setting, discounting, credit and cash purchases as well as credit collection.

Promotion
Promotion refers to the act of communicating the benefits and value of your product
to consumers. It then involves persuading general consumers to become customers of
your business using methods such as advertising, direct marketing, personal selling
and sales promotion
2. Value chain analysis
A value chain is the full range of activities including design, production, marketing and
distribution. As Houzit is specializes in bathroom fittings, bedroom fittings, mirrors and

decorative items. We need to know what are the raw materials used to make the products and
what is added to it before it is sold to customer so we can deliver the best value to the
customers.

The metrics to be used in measuring marketing performance of Houzit include

1. By monitoring and analyzing marketing performance metrics, brands can increase
their competitive intelligence, assess their market strengths and weaknesses, and make
calculated budgetary decisions across the marketing mix.
2. Return on marketing investment (ROMI), marketing return on investment (ROI) and
return-on-marketing-objective (ROMO) are examples of marketing performance
metrics used by major brands to prioritize and allocate marketing investments.