Renovation of houses, as a business, has a great potential in the market and targeting the particular market segment will by the strategies explained in this paper help our business proposition grow and with high profitability. This paper will disclose the information that what value we, as a business, are offering to our customer and why would they crave for those values. Maintaining and retaining customers by giving them the best experience is always the key expand and grow a business. Our proposed housing renovation assumes to undertake a strong Customer Relationship Management strategy. The paper will also explain the environment where our company shall be operating. The marketing environment has its impact on business and its operations. So, coping with the marketing environment is always fundamental to remain competitive and expand market share. A well balanced 4 P’s of our marketing, key products, initial pricing strategy, value chain, and the advertising plan are very crucial for our business. This paper aims to cover all these aspects and develop a better understanding of how our marketing strategy is going to help us pitch this business in.
Value for Customer
Customers’ perceived value is what lays the foundation for our strategy regarding value delivery. Matching the perception of customers or exceeding it by providing better experience would leave our customers satisfied. By our research in this industry, we aim to deliver the following major values for the customers.
The kitchen is the King of a house. And some say it is the heart of a home. Upgrading kitchen is the top priority of every household (customer) as per the trends and research were done in this industry. We aim to provide our customer different way of upgrading from installing new appliances to knocking down the wall between living room and kitchen – to make it look more spacious and be in touch with the people gossiping in the living room.
Revamping the Bathroom
Bathrooms are prone to look old, cracked, or dirty more than any part of the house. Keeping a clean bathroom is what a customer who wants to renovate his house would want in priority. We offer different renovation ideas for our customers. Improving lighting, adding or changing window, and replacing tub are few we deliver to the customers.
Tom Frestl, an appraiser of residential and commercial real estate at Valuation Services in Little Rock, says that there has been a growing demand for green housing. People love nature, and they feel nice with a greenhouse. So this would be among the significant values we tend to offer to our customers.
Customer Relationship Management is the key to success in the modern business world where customers have got more alternatives and substitute products. Our customer relationship management strategy will help us retain our customers for long term. The plan includes:
- Customer Value Added
Suitable value proposition will be delivered to the customers to match or exceed their expectation.
- Customer Centricity
We aim to respond he ever-changing needs of the customer by utilizing all our resources at any time. Customer-centricity may cost more but it will more to customer loyalty and create future business prospects.
- Training of internal staff
A satisfied customer is a walking advertisement and one good employee would give you multiple satisfied customers. We aim to train our staff on customer orientation.
- Voice of Customer
Obtaining the pulse of customers and involving them in new product/service development would help us maintain strong CRM.
Marketing Environment Consideration
The marketing environment includes the evaluation of Internal, External and Macro Environment. An internal mix of fives Ms – Men, Material, Machinery, Money, Markets will be coordinated based on their capacities to ensure the delivery of customers’ perceived products. The external factor, though could not be controlled by marketing management but, seem to be in ideal conditions for our business. In Micro Environment, suppliers would be our key business partners providing us the right quality material on good terms. This will smooth our business operations.
Overall Marketing Strategy
Overall marketing strategy although is explained by this whole paper, if we are specific on the target market, research plan, and customer behavior, it is vital to mention that our target market will be the class of people who own house of $5 million to $15 million. Market research will be done through both primary and secondary sources. Magazine reports and other articles could provide us worthy information to make right business decisions.
Our 4 P’s
We do not offer standardized products. The services we provide will vary customer to customer as per their renovation needs. As discussed above, we assume to ensure customer-centricity and offer complete renovation services from kitchen to exterior.
Prices will be market competitive but lower at the beginning to capture a sizable market share.
We plan to offer our customer complementary services. For example, working on a customer’s order, we will offer extra decoration pieces and place some flower pots in the garden.
We focus on the nearest clients in early stage and gradually expand it to other cities or states.
Social media seems very reasonable channel of advertising our services and products. We plan to hire social media experts who would hit our target customers in particular and then in other places. Later on, different modes of advertisements would be used including billboards, newspapers and TV commercials.