Executive Summary HN (Harvey Norman) (established in 1982) is recognised as one of the most efficient businesses in Australia at marketing their products predominantly in regard to knowledge and the implementation of their Marketing Plan and the necessity in regularly monitor the effectiveness of the marketing plan. The role of marketing is to connect a business with their consumer and the potential or future customer base. The role of marketing in HN is a huge part of its success story. Situational Analysis
As at 31 December 2009, there were 195 franchised complexes throughout Australia. They have also rapidly expanded their offshore markets over the past few years, there are 70 company-owned stores located in New Zealand (31 stores), Republic of Ireland (14 stores), Malaysia (6 stores) and Slovenia (3 stores). The Global economy has suffered a severe downturn at the beginning of 2009 which has contributed to HN’s dramatic loss. In response to this HN will need to adjust its marketing plan in an attempt to attract customers to their businesses.Order now
SWOT Analysis StrengthsWeaknesses *Brand name in Australia, no doubt the best in Australia * The company is over reliant on its Chairman, Gerry Harvey *The company continues to adjust to suit market changes * Lack of independence on the board, wrong decisions could be made. OpportunitiesThreats *There will be many more variations of consumer and office * If Gerry Harvey decides to step down Equipment that will be on the market in the years ahead * Bad publicity over pricing and marketing Diagram)HN is – Business declined 40% between 30th June 2008 – 30th June 2009 To address the company’s losses, it plans to review the makeup of the board of directors as many of them have been there for more than 15 years. The property development business and fast track introduction of a full scale online shopping strategy across the brands. Establishing Marketing Objectives HN’s main goal like many businesses is profit. Its aim is to provide a satisfactory share dividend and generates enough profit for the businesses growth. Increased market share • Decreased operating cost • Increased number of customers • Increased customer service • Long term survival of the business • Change product mix • Promote change in product mix Identifying Target Markets HN segments its markets to provide a more personal service to all its customers. Market segmentation allows HN to: *Better meet the needs of all its customers and hence compete more effectively in the market place. HN is segmented into three brand names: *HN – designed specifically for the suburban family. Domayne – typically aimed at the single person, empty nesters families living in luxury homes and apartments *Joyce Mayne – aimed at the bargain hunters and low income families HN monitors the social media networks such as Facebook and Twitter for feedback from their customers on brands and products which helps them better understand their markets and subsequently provide their customers with what they want. Developing Marketing Strategies HN has developed the following strategies: • revised down its projected profits fast track online store and have them operating within 5 years across Harvey Norman brands • Gerry Harvey will personally work with the analysts in the next 6 -12 months to address the concerns regarding his property management business. Product • Aust. Consumers largest spenders on the latest products • Eg. DVD players are now found in many homes • Social influence( new home entertainment phenomenon. Some reasons for this social change could be a result of the following: o Higher stress faced in the work place Increase in street and petty crime o The high cost of entertainment o The increase in working families ? The result of these social changes is that many people now prefer to stay home for their entertainment. Price HN uses several types of pricing concepts: Price skimming: applied to new products that are attractive and which has little or no competition Penetration pricing: charging a very low price initially to generate high volume sales and gain market share.
Promotional pricing: temporary reduction in price on a number of products on offer Competitive pricing: because HN has a large share of the market they are “price leaders” and other businesses follow them Credit terms: using independent Finance Companies which can also offer interest free periods Rental of certain products instead of purchasing e. g. computers Promotion There are several ways that HN promotes products to the consumer. • TV and Radio advertising • Newspaper Advertising High Quality glossy brochures inserted in newspapers and letterboxes • Low budget brochures inserted in newspapers and letterboxes • In-store point-of-sale opportunities Place HN stores are located as Retail Stores across several urban areas of cities where his target markets can conveniently access them. The Stores in all HN brands have their products grouped in Departments (e. g. TV and computers etc) so customers can easily access and compare the product range. Implementation, Monitoring & Controlling
As the economy is in a state of confusion, it is important that HN constantly monitor their marketing strategies. The implementation stage is quite difficult, especially as unforeseen situations may arise that put in jeopardy the success of the entire marketing plan. HN uses the following tools to monitor their performance. *Financial Forecast – Financial predictions can be made using past sales data, statistical models, budgets and surveys. *Controlling – Comparing their actual results with those planned allows them to view their strengths and weaknesses. Revising Strategies – If Harvey Norman is not happy with its position and outcomes, it will revise their marketing strategies so that the marketing objectives can be achieved. Conclusion Harvey Norman will implement the strategies and observe the following • More products will mean more customers can buy and hence more market share and profit. • Harvey Norman will continue to provide good qualities and brands at a variety of prices to target all potential markets. They will continue to promote their products with internet promotions, publicity and advertising and create a name and interest in the company.
Their projected online sales facility will provide greater convenience for their customers and provides maximum profit for Harvey Norman and this feature will only improve with time. As a result of their strategies, Harvey Norman will modify their product mix which will generate an increase in market share and profit. Harvey Norman will be able to continue to return a good dividend to its shareholders as well as continue to maintain growth as a successful, profitable and superior business.