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BSBMKG603B-Manage the Marketing Process (Assessment Task 1: Marketing Plan Management)
Submitted by Fan Chen
so that the customers can order and pay online. The online retail business model provides a
foundation for delivering products to consumers and generating revenue for Houzit to gain
more market share. Online retail business opportunities are numerous and choosing the
appropriate business model for selling Houzit's products can make or break a business
opportunity. The distribution of Houzit Products via the online store can be monitored for
the number of sales.
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. In the next six months, Houzit has to monitor very closely whether
it needs to lower its retail prices in order to compete with its competitors, or keep the prices
as they are but offer a premium with that price. This premium could be in the form of quality
service, and or/ free delivery or installation of bathroom fitting products and mirrors.
5. KPIs
A performance indicator or key performance indicator (KPI) is a type of performance
measurement. KPIs evaluate the success of Houzit in which it engages. Often success is
simply the repeated, periodic achievement of some levels of operational goal and sometimes
success is defined in terms of making progress toward strategic goals. Accordingly, choosing
the right KPIs relies upon a good understanding of what is important to Houzit. 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 8.5% increase in sales revenue has be set by Houzit's board of Directors.
It can be calculated using growth in sales divided by previous year's sales.
Market Share
The percentage of an industry or market's total sales that is earned by a particular company
over a specified time period. 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. This metric
is used to give a general idea of the size of a company to its market and its competitors. For
Houzit, the benchmark has be set by board of Directors of 12%.
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. Customer Acquisition Cost is the cost associated in
convincing a customer to buy a product/service. This cost is incurred by the organization to
convince a potential customer. 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. The online retail business model provides a
foundation for delivering products to consumers and generating revenue for Houzit to gain
more market share. Online retail business opportunities are numerous and choosing the
appropriate business model for selling Houzit's products can make or break a business
opportunity. The distribution of Houzit Products via the online store can be monitored for
the number of sales.
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. In the next six months, Houzit has to monitor very closely whether
it needs to lower its retail prices in order to compete with its competitors, or keep the prices
as they are but offer a premium with that price. This premium could be in the form of quality
service, and or/ free delivery or installation of bathroom fitting products and mirrors.
5. KPIs
A performance indicator or key performance indicator (KPI) is a type of performance
measurement. KPIs evaluate the success of Houzit in which it engages. Often success is
simply the repeated, periodic achievement of some levels of operational goal and sometimes
success is defined in terms of making progress toward strategic goals. Accordingly, choosing
the right KPIs relies upon a good understanding of what is important to Houzit. 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 8.5% increase in sales revenue has be set by Houzit's board of Directors.
It can be calculated using growth in sales divided by previous year's sales.
Market Share
The percentage of an industry or market's total sales that is earned by a particular company
over a specified time period. 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. This metric
is used to give a general idea of the size of a company to its market and its competitors. For
Houzit, the benchmark has be set by board of Directors of 12%.
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. Customer Acquisition Cost is the cost associated in
convincing a customer to buy a product/service. This cost is incurred by the organization to
convince a potential customer. This cost is inclusive of the product cost as well as the cost
