The use of clicking and collect technology will attract more customers as the consumer market is digitalized and they want to do easy shopping. The availability of flat pack furniture makes it a convenient store for consumers as many prefer to have furniture that can fit in their car and be easily assembled when needed. The increasing population in the UK means that in future the market activities for the Home base (Bunnings) will be favorable. The current legal policies endorsed are convenient for business growth. Regarding the tax policies and the legal requirement s to run a business. The growing popularity will see the expansion of the company to other countries.
The company has not been making stable earnings that will fully fund the transition from Homebase to Bunnings the transition will take time and probably even require loans to be considered. Currently, the store is experiencing high operating costs regarding the transport and maintenance costs needed to keep the stores operational. The cost of supply is high due to the transport costs which has an adverse effect on the pricing method as they have to make profits and also retain their customers
The decreasing value of the dollar against the euro is a rising concern over the profit margins to be realized. The increasing oil prices will simultaneously increase the operation cost of the business thus will affect the profit margin. The rising consumer price inflation which poses a threat to the pricing strategies to be adopted that will be favorable to the target market. There is the threat of possible new entrants into the market this will mean that competition will be stiff for the company and various strategies need to be implemented to curb this looming threat. The threat of substitutes being introduced into the market from the new and already existing market suppliers is a significant threat as the sales will reduce.
The company is looking forward to increasing the current sales by at least 20%when they fully transition to Bunnings as the previous sales were meager. Another objective is to increase the profit margin which will be achieved through the increase in sales. The massive marketing which is done mostly through television is in an aim of increasing the market share as there are already several competitors in the market. To be achieved by increasing the popularity of the brand to the market. To be made possible through intense marketing which will be done through the use of the internet and television advertising. They can also prompt to offer discounts on their products. Another essential objective aimed at by the company is an effective pricing model despite the influence by the market conditions — the introduction of a new line of products that will ensure a variety of products for the customers to choose from. These factors will help boost customer loyalty. Customers want to be involved with affordable and quality products, and they will find it convenient if they have a variety of products to choose from. The service level of the Homebase is also a factor that needs to be improved, and this will be achieved through the hiring of skilled staff who will offer the required services at their best.
Segmentation, Targeting and positioning
It is essential for any company to choose a specific market segment that they will compete in Through this the target market is identified, and effort put into providing the necessary quality products to fulfill the needs of the consumer. The marketing segmentation strategy adopted by HomeBase is the selective specialization(Project Management). They chose a variety of brands to focus on and thus target the consumers in the market who regularly use these products. These products include Decorating, Home and garden products as well as DIY products. The primary target is that of homeowners in the UK. The marketing positioning of any company plays a crucial role in its survival there are several concepts to approach this but the best to be adopted by home base is rebranding to Bunnings(CFI 2019). The current market position for home base is not favorable, and thus changes need to be made to save the company.
These are strategies that will see to it that the home base (Bunnings) will grow and expand its market share and also profits realized. This will only be through the increase of the sales in the currently existing market. Meaning that better services and quality products offered to achieve this. The company should seek to find new markets to penetrate apart from the already existing one, and this will only be through advertising. New products need to be introduced into the market to prove a diverse variety for the consumers to choose from. Achieved through the current addition of children’s play area and a café. The company could also consider venturing into a new market with a new set of target consumers. A move that will highly boost the brand name. Price discounts should also be incorporated to attract more consumers(Hanlon 2013)
There should be the introduction of an online platform where the consumers could choose a variety of the products that they need and if possible get the option of home delivery. Which will be a tool to expand its market base. There should be new products introduced such as toys for children and even organic food products for the increasingly health cautious population. Homebase should embrace technology and do most of the marketing through the creation of their website and also other online accounts such as Facebook and Instagram. Another effective marketing strategy is through discounts on certain products that would run for a specific period. The sales during this period will significantly increase.
The marketing budget should be drafted and funds allocated effectively. These funds should be distributed effectively to all areas of marketing such the introduction of new products, online marketing and hiring of qualified staff. In case the company does not have qualified staff to be involved with the online services to be offered another agency should be contracted, and this will consequently increase the final marketing budget to be drafted. The activities can be planned on the Gantt Chart(Smartdraw 2019)
|Activities||Cost for the First month(£)||Cost for the Second month(£)||Total cost(£)|
Evaluation and Control
There are several measures in which the progress of the marketing plan adopted by the company can be evaluated. To know whether the company is on the right track. Such an evaluation basis lies on the market expansion, profit margin increase and customer response(Chron 2019). The evaluation is strictly based on the objectives of the company. The customer services offered and the marketing strategies should have positive feedback. Control mechanisms should also be put in places such as rules and regulations. An open communication system between the staff and the management should also be established to know the customer feedback and the necessary change to be made to meet the company’s objective.
“7 ways of evaluating your marketing plan”, Chron,2018 Retrieved from https://smallbusiness.chron.com/7-ways-evaluate-marketing-plan-58331.html Accessed 8 January 2019
“Marketing Plan Gant Chart” Readingrat.org,2018 Retrieved from https://readingrat.org/marketing-plan-gantt-chart/ Accessed 8 January 2019
“The pricing-Quality Model,” Annmarie Hanlon,2013 Retrieved from https://www.smartinsights.com/marketing-planning/marketing-models/pricing-quality-model/ Accessed 8 January 2019
“Ansoff Matrix,” Smart draw, 2018, Retrieved from https://www.smartdraw.com/ansoff-matrix/ Accessed 8 January 2019
“Market Positioning”CFI, 2019, Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/strategy/market-positioning/ Accessed 8 January 2019
“Patterns of Target Market Selection ” Project Management, Retrieved from http://analysisproject.blogspot.com/2015/07/patterns-of-target-market-selection.html Accessed 8 January 2019
“SWOT Analysis “Mind tools, 2018, Retrieved from https://www.google.com/search?q=target+market+for+homebase&oq=target+market+for+homebase&aqs=chrome..69i57j69i60.6718j0j9&sourceid=chrome&ie=UTF-8 Accessed 8 January 2019