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Assessment Instruction
Develop a Marketing Plan - BSBMKG609
Instructions
You are advised to commence work on your assessment from week 1 and all tasks must be submitted by the due dates provided.
1. All assessments must be completed and delivered individually. Where an assessment involves group discussions, you should consider the input of your group but submit an individual assessment to your trainer.
2. Please read all instructions on completing each assessment. Instructions for completion are provided at the beginning of each assessment.
3. All written answers must be typed in a word document using Arial font, 12 size and single spacing if similar instructions are not provided in the assessment.
4. Your trainer will not be able to assist you in answering questions. However, your trainer will address any issues concerning questions requiring further explanation.
5. You may refer to your student learning resources or any other relevant resources when completing your assessment.
6. Assessments are due for submission as specified in the assessment schedule. Any variations to this arrangement must be approved by your trainer prior to the due date for submission.
7. You have access to computers which are equipped with Microsoft suite of products or any other relevant software and printing facility.
8. Use assessment templates if provided, to complete relevant sections of the assessment. You can also create your known templates for assessment evidence.
9. You must achieve a satisfactory result for all tasks to achieve competency in this unit.
10. All assessment answers should be submitted to the trainer in required format (soft or hard copy) as per trainer instructions with completed assessment cover sheet (if required).
Assessment Schedule
Task
Due Date
Learning Activity Only
Week 1
Task 1
Week 2
Task 2
Week 3
Task 1: Devise strategies and plan marketing tactics
Performance objective
In this assessment task, you are required to review and evaluate marketing opportunities for an organisation and develop marketing activities that reflect strategic directions of the organisation.
Assessment description
For the organisation outlined in the case study provided, identify two marketing opportunities and evaluate each opportunity for risks, strengths, weaknesses and alignment with organisational objectives. After you have reviewed the opportunities, select the best-fitting opportunity for the organisation and develop marketing strategies, approaches and activities to take advantage of the opportunity.
Procedure
You are required to submit a report that addresses all of the elements listed in the procedure. The report should be structured using the headings below.
Organisational overview
1. Develop an organisational overview that:
a. Outlines the strategic direction and organisational objectives
Houzit is a Brisbane-based home wares chain that specialises in bathroom and bedroom fixtures, mirrors and decorative accessories. The company needs to hire marketing manager and must now assess the organisation and develop marketing plans to help to achieve its strategic goals.
Main objectives of the organisation is:
· To have a substantial retail presence in home wares in every country in Australia and Asia by 2020
· to increase revenues from $15 million to $20 million furthermore, in the following three years
· To increase their list of loyal clients from 10,000 to 15,000 people
· To establish brand awareness in Brisbane so that, in an 18-month random poll, at least one-third of the people recognise their brand
b. Outlines the current size, capabilities and resources of the organisation, including any notable strengths and weaknesses
The average Houzit store is in a commercial, 1,000–1,500 m2 space in a suburban neighbourhood or an urban retail district. It employs 15 to 20 full-time staff, as well as numerous casuals and operates on 60% cash, 40% long-term payback scheme. The average transaction price is $1,000. According to the case study, due to a lack of critical mass and shop coverage, there is a restricted marketing budget of an organisation to create brand recognition.
Similarly, due to a shortage of access to credit from banks, the number of unsecured loans has increased and leads to rise in the amount of debt that they will be able to pay off over the following few years. These are some noticeable weaknesses. Perhaps, to balance out, there is some strength as well. Houzit has been awarded one of the top retailers in the world for its great customer service and strong brand recognition among regular customers. In New York City's Chinatown, the store is in the middle of a bustling urban neighbourhood. It provides a wide selection of items that outperform competitors in terms of quality, variety and accessibility.
c. Identifies any gaps between the objectives and the current capabilities and resources.
As per the study shows, low budget of marketing is the main factors that can create a gap to achieve desired brand awareness in 18-month period. Furthermore, the strength of the city's small, independent retailers can drive down prices for customers, which can make it difficult to achieve loyal customers in such a huge numbers. These two mentioned factors will stretch the gap between the objective and the current resources available. This will eventually slow down the progress and the objective of increasing the revenue in three-year span will even be delayed.
Opportunities
1. Identify two marketing opportunities that meet the objectives, and evaluate the risks and benefits of each opportunity.
The two marketing opportunities that will help the Houzit its objectives are:
i. Marketing in a developing market :
a) Benefit- Launching marketing campaigns in a rising market in a high development location, with a large portion of the target audience still unaware of Houzit's product will helps in spreading brand awareness.
b) Risk - It will encourage small firms to operate with chain retailers, which do have fewer operational costs than employees-run stores.
ii. Expanding sales outside the Brisbane:
a) Benefit- Expanding sales potential beyond their targeted market will help them in achieving substantial retail presence in Australia and Asia. Along with increasing revenue.
b) Risk- This may increase the cost of production and company may have increase in debts too.
2. Recommend the opportunity that best addresses organisational objectives and:
a. develop a marketing mix strategy that fits within the capabilities and resources of the organisation
The Marketing mix is then written into a quarterly, six-monthly or annual marketing plan. The Marketing mix comprises four elements (sometimes known as the ‘4 Ps’): product, price, promotion and placement.
i. Product- A Houzit should add functionality to its product and that functionality will benefit users. Customers will be attracted by these benefits; therefore, the customer value proposition must advance the interests of the product itself. Common product benefits include durability, safety, convenience and price, buyer's self-esteem in owning the product or receiving services and access to ongoing benefits through participation in loyalty points or other benefits.
ii. Price- As a first step, Houzit products should be sold at a discount in the new market; this will create demand for the product or service. However, it also generates sufficient sales volume to generate revenue to cover costs and generate profit for the business.
iii. Placement- Houzit must make the product or service accessible in store, online, through a call centre, through a reseller or agency. There can be multiple distribution channels to make a product or service accessible to customers. Channels can have intermediaries such as in the supply chain, where the manufacturer sells to the wholesaler and the wholesaler itself to the retailer. The organisation can expand to national and international sites, including sites with global markets.
iv. Promotions - Houzit needs to expand communication and messaging channels to attract customers. Advertising, discount offers, signage, press releases and digital marketing are all examples of different types of promotions that need to be done. Messages must be created and promotional activities carried out to create a perception of value by the customers.
b. describe how your strategies align with the strategic direction of the organisation, and give justifications for your selection
The pricing strategy is the component of the marketing mix that will generate the maximum money for Houzit; all other components will incur expenditures. As a result, the pricing strategy becomes a compromise between what the company needs to earn (to cover costs and recoup profits) and what customers are prepared to pay. The organisation should charge a price that compensates all of its costs associated with producing, distributing and marketing the goods while also providing an adequate return on the organisation's ability and risks. A successful marketing strategy accomplishes two primary corporate goals:
• It generates consumer demands by acquiring...