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Assessment 2 Boutique Build Australia was established in 2014 and is a boutique building company based in Sydney. It specialises in the design and construction of high quality designer homes for the Sydney metropolitan and surrounding areas. The company currently employs a number of staff including CEO, Operations Manager, Marketing Manager, Administration Officer, Site Manager and two sales consultants. Boutique Build Australia has recently developed a Strategic and Operational Plan as part of a new focused approach to the business. There is a strong emphasis on green building services. The Strategic Plan will also be used to formulate a marketing plan as to date, limited investment and staff time have been put into marketing. The role of Marketing Manager (your role) has recently been established within the business, as it the importance of the marketing function has been recognised. The CEO has also indicated it may be possible to recruit a new marketing officer to assist with marketing functions. To date, most business is generated through word of mouth. The company has a website which has also generated some business. At the beginning of the year a SEO expert was employed with the objective of increasing web traffic by 20%. The most recent data about customers visiting the web site during the preceding six months is as follows: Jan Feb Mar April May June Number of web site visits 20 30 30 35 40 50 Number of email enquiries from customers about products 10 15 30 45 60 70 The company has also placed a number of advertisements in local community newspapers. The CEO has indicated that, during the time that the advertisement was placed (three times during consecutive three weeks), there were a number of enquiries about the company’s products and services but not leads. The CEO is unsure that this is the right medium for the company’s target group who are high income earners, seeking homes that are stylish, of high quality and innovative. Currently, about 1% of total revenue is spent on marketing. The company’s total revenue for the financial year 2014/2015 was $2,000,000 and gross profit was $40,000. Marketing costs to date comprise of ongoing website maintenance and the newspaper advertisements referred to. The CEO recognises that he is committed to spending more on marketing and has indicated that the percentage could rise up to 3% depending on your recommendations. Research shows that competitors are spending at least 5% of their budget Regarding awareness of the company, market research has recently been conducted which showed that 4 out of 30 customers interviewed recognised the Boutique Building Australia name. Write a briefing report. Review the scenario information and the Strategic and Operational Plan to conduct a strategic analysis and a review of the company’s marketing performance. Use this to identify marketing opportunities, as this will inform the development of marketing objectives for the company. Your report must include the following: An overview of the company’s mission, vision and values, key products and services as well as strategic objectives and operational priorities as set out in the Strategic Plan. An assessment of the company’s current situation and the range of factors impacting on the company’s directions and targets. Use the information included in the SWOT analysis and market conditions to inform your assessment. Ensure that your analysis includes an outline of key market opportunities and the strengths and weakness of current products and services. An assessment of the company’s legal and ethical requirements in relation to marketing. Conduct research to identify requirements using the following website: http://www.accc.gov.au/accc-book/printer-friendly/29527 An assessment of the company’s marketing performance, including current marketing activities and positioning and effectiveness in relation to previous marketing objectives. You will also need to calculate the marketing return on investment for the figures provided. You may use examples of marketing plans and strategies and market analysis contained within these plans to assist you in in developing your performance review. A range of plans that can be used as examples are included at www.mplans.com An investigation of at least three potential marketing opportunities for the company based on your strategic analysis and marketing performance review including an outline of each opportunity that discusses: Alignment with the company's objectives and goals and the objectives and goals described in the Marketing Plan Overall benefits to the business of pursuing the opportunity Anticipated effect of the marketing opportunity on sales, profitability, growth and market share. Estimated effect on return on investment. This should be an approximate estimate taking into account how much the likely cost of the opportunity would be against anticipated return. How market conditions impact on the marketing opportunity How any external factors such as technological or legal factors may affect the marketing opportunity. Risks associated with the marketing opportunity. Identification of suitable marketing objectives based on your strategic analysis, marketing performance review and identification of marketing opportunities. The objectives you recommend must be SMART objectives and you must explain how the objectives you recommend are achievable and realistic for the company in terms of marketing budget and staff resources. In recommending each of the marketing objectives, you should also explain how these link to the organisation’s strategic vision and values, as well as objectives. You should develop a minimum of two marketing objectives. Identification of performance indicators that can be used to measure each of the marketing objectives you have identified Use the Briefing Report Template to guide your work. 1. Develop a risk management plan The purpose of the risk management plan is to identify and document risks for the marketing opportunities that you have identified and determine appropriate risk control measures. Include a description of the risk, likelihood, impact, priority and preventative action/contingency plan. Review the Strategic and Operational Plan to ensure that your risk management measures are in accordance with this, and the Risk Management Policy and Procedures to assess the likelihood and impact of the risks that you have identified. Use the Risk Management Plan Template to guide your work. BSBMKG608 Strategic and Operational Plan Version 5.0 Feb 2019 Vocational Training Institute RTO 41111 CRICOS 03487C Page 1 of 11 Strategic & Operational Plan 2018 - 2020 Boutique Build Australia . BSBMKG608 Strategic and Operational Plan Version 5.0 Feb 2019 Vocational Training Institute RTO 41111 CRICOS 03487C Page 2 of 11 Welcome Welcome to the very first Strategic Plan for Boutique Build Australia. This document sets out our vision for the next three years and how we hope to achieve it. We hope you enjoy reading this document. CEO Boutique Build Australia Executive Summary Established in 2008, Boutique Build Australia is a building company specialising in the design and build of high quality designer homes for the Sydney metropolitan and surrounding areas. Our vision to be the best home builder in Australia drives everything we do, from the friendly greeting we give to customers at our display centre, to our supplier relationships and to our employees’ professional development. Vision To be the best home builder in Australia. Values Core values underpinning our activities are: • Quality • Innovation • Leadership • Respect • Honesty and Reliability Strategic Objectives 1. To increase revenue by 10% annually 2. To expand into the Brisbane and Sunshine Coast market 3. To expand into the environmentally sustainable market 4. To be well led, high performing, profitable and accountable 5. To be an employer of choice . BSBMKG608 Strategic and Operational Plan Version 5.0 Feb 2019 Vocational Training Institute RTO 41111 CRICOS 03487C Page 3 of 11 Operational Objectives The following table identifies the operational objectives we plan to achieve in pursuit of our strategic objectives. 2018 Priorities Key performance indicator June Employ at least 3 permanent site staff Site staff in place July Commence recruiting for key positions in Brisbane and Sunshine Coast Key staff established for Brisbane and Sunshine Coast August Develop and implement work-life balance programs Increased employee satisfaction as measured by surveys. Oct Commence promotions in the Brisbane and Sunshine Coast market Set up display centre in Brisbane and Caloundra QLD Presence in Brisbane established November Staff performance reviews All staff performance reviews conducted 2019 Jan Develop and implement strategies for increasing number of women in the workplace Number of females in company increased by at least 4 by mid-year. March Commence design of environmentally friendly homes Designs completed May Commence marketing environmentally homes Build at least 4 environmentally friendly homes by the end of the year November Staff performance reviews All staff performance reviews conducted 2020 Feb Review other potential markets Potential markets explored Sept Analyse workforce diversity Number of women in workforce continuing to increase Nov Staff performance reviews All staff performance reviews conducted . BSBMKG608 Strategic and Operational Plan Version 5.0 Feb 2019 Vocational Training Institute RTO 41111 CRICOS 03487C Page 4 of 11 The Market The construction industry had been facing a stagnant phase in recent times, however experts predict a turnaround, providing real opportunities in the sector. Although much of the construction industry is expected to see real growth in the coming 12 months, it is the residential building sector that should experience the most. The Housing Industry Association’s National Outlook and announced that this year would see a new record of homes commenced. According to the statistics, a record number of new dwelling commencements are forecast for the next financial year. It is also important to note that this represents the fourth year in a row where residential construction has improved: a vital part of the overall Australian economy. Although last year saw a rise in overall numbers, a significant portion of building approvals never started, sparking further opportunities when these begin this year. Project Managers, Structures Forepersons and Commercial Contract Administrators will be at the top of any wish list for construction businesses this year. Although a number of states are set for an increase, the Sunshine State is set to experience the most growth. The Queensland Government is providing support by offering first home buyer/builder grants as well as easier procedures for development application approvals. If you are to compare all the major industries of Australia - construction, manufacturing, engineering and mining - construction is the only one that is expected to see real growth in the coming years. Situation Analysis Strengths Weaknesses ➢ Value and quality ➢ Strong management ➢ Customer loyalty ➢ Friendly organisational culture ➢ Level of