The Marketing Project Phase
Excerpt from :
Slice of Heaven and Associates
Tiny Homes Market Plan
Slice of Heaven Marketing Plan
Market Size and Growth
Target Market Segments
Integrated Marketing Communications Strategy
Appendix 1 Positioning Map
Appendix 2 Marketing Organization
Founded in 2016, Slice of Heaven is a community of small economic homes set in an urban setting that are both environmentally friendly and aligned with your values for low cost. We build small homes using recycled materials such as reclaimed lumber and generate power through the use of solar energy. Our homes are situated in a gated community which allows for a shared community experience through gardens and play areas, as well as, community centers that help to create meaningful relationships with those around us. Slice of Heaven exist to create experiences where passion and purpose come together.
Slice of Heaven and Associates seeks to make first-time home buyers, of small homes and gardens comfortable, happy, and worry-free both during the home buying process and even after their closings. By doing this, Slice of Heaven hopes to build a reputation as the company for first-time home buyers of small homes, effectively branding its name in the small homes and energy efficient market in an urban setting.
These tiny homes will allow the average American to enjoy a slice of heaven.
People ... Neighborhoods ... Community
2.2 Product Description
Slice of Heaven & Associates is planning to develop a "tiny homes" gated-community in an urban setting. This will allow members of the community to be mostly "off-the-grid" without having to move to a rural area, yet still have access to the amenities of an urban lifestyle -- balancing the best of urban and rural living in one community.
The community will feature tiny homes that are environmentally friendly, costing much less to build and leaving a smaller carbon footprint on our planet. Home-owners will also benefit from lower bills for maintenance and repairs, energy, food and water. They will get to enjoy shared community spaces that include a community garden and outdoor play-areas, and will still have access to luxury amenities found in the typical urban housing development, such as a community center for entertaining, with a gym, climbing wall, and pool area. The community center will have ample space for residents to entertain their guests. Having tiny homes will allow for more outdoor community areas.
The homes will be made of recycled or reclaimed lumber. Homes will have solar panels for roofing that will provide natural lighting and meet the energy needs of the home, and rainwater catchment and filtration will be done for household water usage. Wind energy will be used to supplement solar energy generation. Buyers will have the option to choose from a range of homes sizes starting from 200 sq. ft. to 500 sq. ft. with a price range of $150 to $300 per sq. ft. depending on design features and size.
Having these homes in a gated-community will provide safety and encourage residents to explore outdoors as much as possible (especially within the community). This will give residents the opportunity to interact and build connections with others in a healthy environment, rather than sitting indoors interacting with devices.
And since a larger number of people should be able to be housed in the tiny home community than on the typical urban housing development, this allows for more efficient use of land. The community will be certified by the WELL Building Standard (http://delos.com/about/well-building-standard/). A certification based on human health and wellness.
This sort of community will attract buyers who are looking to downsize, yet still want their own "home" rather than an apartment, those who want to spend more time outdoors than indoors without going completely off-the-grid, and those who want to be "mortgage-free" and able to have disposable income for other uses. It will also attract buyers who want to gain a sense of "community" by being with like-minded residents.
Currently the tiny-home market is in its infancy stage. A niche market of millennials is moving into tiny homes to be
able to have more disposable income for travel and entertainment. Another niche market of community-based welfare agencies is using tiny homes as a cost-effective option for housing homeless and low-income groups.
However, the broader market of the average American home-owner that could downsize for social, environmental, or economic reasons has not been aggressively targeted. This market is the bulk of the U.S. population, and by targeting this group, impactful socio-environmental and financial changes should also lead to more savings for healthcare, travel, retirement -- and this should reduce reliance on public assistance.
2.3 Value Proposition
The value proposition will be "Tiny Homes, Big Savings" Own a home today that cost less and environmentally-friendly.
The Price -- Tiny homes cost a fraction of larger homes. Cost will range from $15,000 to $60,000 depending on the design features and size.
Cost Savings -- Tiny homeowners will have huge savings in their utility bills, maintenance and repairs through the use of renewable energy and water.
Eco-friendly: - The tiny house will be environmentally-friendly since it will be built of recycled or reclaimed lumber, and will use solar as the main source of energy. This will create leave a smaller carbon-footprint on the environment.
Spend less time cleaning and maintaining the house
Excellent customer service that will lead to a lifetime relationship with our customers
Our product is made of unique materials that will appeal to customers who are conscious about the preservation of the environment
Tiny homes have little market presence or reputation
Initial investment will also be a challenge since this is a new trend in the housing industry
This will be an ideal home for millennial's since most of them will graduate with high college loans. Therefore, it will be ideal to own a tiny home rather than a traditional house, which will increase their debt.
The home will also be ideal for retirees and baby boomers who desire affordable homes with minimal maintenance.
Our tiny homes can be purchased or rented as a vacation home at a lower cost
Although the tiny home is unique in nature in terms of the materials, there is a concern of strong competition in the industry for market share.
2.5 Critical Issues
There are a couple of critical issues that were identified in the SWOT analysis. The first is that this is a relatively new, untested concept. Tiny homes are a niche, and while they have piqued some interest, the market for them is, well, tiny. The idea of a tiny home community is even less tested. The biggest critical issue therefore revolves around how Slice of Heaven will be marketed. It could be packaged as an economical solution, which would appeal to two of our major target markets. But ultimately, if the Slice of Heaven concept is to have legs in the marketplace, it needs to appeal to people on more than just the basis of cost. There is also the possibility of presenting the community as more of a community of like-minded people. This will make for a stronger community, because there will be a higher level of commitment among the people that choose to live there, but again, this is a niche market. There are few benchmarks -- the earth ships in Taos, NM and the community of Findhorn in Scotland -- but these are very small places with narrow appeal, and neither concept has won any traction in the market. So finding the right marketing message and branding to present Slice of Heaven will be essential to cultivating a strong community of people to build around.
The second key issue is licensing or zoning requirements. For all practical purposes, this is a multi-home community, but cities typically do not zone that way. In most places, the zoning for such a concept does not exist. There are certainly cities where the local government would grasp the concept right away and be able to get the right zoning in place -- something in between a multi-unit building and a single family lot -- but this is going to be a challenge in many jurisdictions. The best course of action is to launch somewhere that is going to be amenable -- Portland is a good place to start, but there are others.
The third critical issue for Slice of Heaven is to raise capital. On one hand, the DIY nature of such a community means that capital requirements are not that great. On the other hand, it still requires money and people to get things done, even with this sort of concept.…
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