Case Study: Devise Strategies And Plan Marketing Tactics
1. Organizational overview
Australian hardware specialises in supplying mirrors, bedroom and bathroom fittings and decorative items. The company focuses on offering high quality items under easy to manage payment plan.
1. Strategic directions
• Increase in sales and gross profit in the next three years
• Increase its retail and online presence in homewares
• Making the customer more loyal so that they don’t switch to other brands
• Maintain high and unmatchable quality of homewares
• Establish brand recognition among the people of Brisbane
• Secure Australian Hardware towards the fulfillment of social and environmental responsibilities
1.1. Organizational objectives
• To place Australian …show more content…
The company started its business in 1921 and was known to be Percy’s Home Goods till 1952. The business was re-named Australian Hardware and an expansion program commenced that took the business into all states over the next 10 years. The current number of stores being operated by Australian Hardware is 138, and employs approximately 10,000 people across the country. The company plans to expand its stores at the rate of 2 – 3 stores per year. The company’s services range from bathroom and bedroom fittings to mirror and decorative items (Australia Hardware Business Plan, 2016).
Australian Hardware has enough of resources to meet its capability in serving high quality, innovative products with the aim to make people recognize its value and unique offerings to build a huge customer base. Following are the strengths and weaknesses of Australian Hardware:
Resources …show more content…
Marketing opportunities to meet the objectives of Australian Hardware, along with risks and benefits of each opportunity:
(i) Share of Australian hardware industry in expected to grow
According to a research conducted by Brightkite, the hardware industry of Australia is expected to reach $22 billion by 2016-17 (Elle, 2013). According to IBIS, the expenditure by Australian household increased to $2,554 on home renovations and improvements. It is further expected to increase by 4% by 2017 (Australia Hardware Financial Performance Report, 2016).
The firm Australian Hardware should focus on capitalizing this opportunity to increase its sales revenue by building a loyal customer base. The company should focus on capturing majority of the market share over and above its competitors and should target the desired segment of customers.
The benefit of this opportunity is that it will encourage the company in opening 3-4 stores per year in the future in different parts of Australia to cater the maximum target segment. It would also help the company in growing its revenue per store from $27 million/year to $30 million per year by