Executive Summary
Students have prepared a Marketing Plan based on Houzit Home wares based in Brisbane QLD Australia, with Head Office in Milton QLD. Houzit Home wares supply home wars to the marketplace and are looking to expand.
The marketing strategies outlined by the CEO are to obtain:
● Increased 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.
To accomplish the above listed objectives, they strategies the students have chosen are:
1) Establishing a Joint Venture
2) Current profit maximisation
3) Market-Share Leadership
To choose Market Skimming Pricing or Price skimming, for current profit maximisation, Houzit Home wares is in a position to ‘skim’ revenues layer by layer from the market. In order to achieve the sales of an extra $5 million from the market, Howzat Home wares can use this strategy to achieve its goals of maximising profit.
For example, by discounting a particular products price-instead of advertising outside and lose money, by marketing to the loyalty program customers (txt, e-mail, snail mail etc.), Howzat Home wares can get these customers to come into the store and probably make another purchase, not just the discounted product. This strategy could in-turn increase the customer loyalty program and bring more customers into the store to join up, and purchase more products.
For Market Share Leadership, Howzat Home wares can use this strategy by setting price based on buyer’s perceptions of value, rather than the sellers cost. Perception of value is based on what buyers perceive to be the best price. A value based proposition can enhance profits an increase the competitive advantage of Howzat Home wares.