1. P.R.I.D.E“We take PRIDE in helping you create the home of your dreams”. By: Blake Dudek, Adam Hauff, Yana Klebanov, Leo Martinez, Shanil Patel & Katherine Patton
2. Introduction Company/Product Overview: Targeting online real-estate industry 360° Panoramic view Real time virtual tour Customization (home-furnishings industry) Add Furniture Wall Color 24-hour technical support team P.R.I.D.E Progressive. Remote. Innovative. Design. Experience. Mission Statement: “Provide customers with the comfort, flexibility, and innovation to experience a revolutionary property search, on an online customizable platform.”
5. Secondary Market Research Market Assessment: Real Estate Sales & Brokerage $87.7 billion revenue Residential Sales = 50% of Product & Services segmentation Annual growth 5.0% next 10-15 years Industry expected to grow in 2011 by 3.6%
6. Secondary Market Research Continued: Current Market Competitors Top 10 Virtual Tour Vendors Source: Hitwise.com - Real-Time Competitive Intelligence. All data shown from March, 2010. *Custom subcategory defined. Top Competitor Market Prices: Visual Tours (direct competitor) $199 starter kit, $29.95 monthly cost Tour Factory $1458.60 (annual subscription costs+ add on features per home)
8. Tactical Launch Decisions Launch Tactic: Price Introductory Pricing: Exclusive Realtor Market Research shows: Coldwell Banker will pay $1000 flat rate fee per house Charging home-furnishing company $5,000 per month IKEA chosen for home-furnishing host
9. Tactical Launch Decisions Launch Tactic: Place Located on realtors website Website description Home on the left of screen Catalogue and paint colors on the right PRIDE logo and realtor logo’s side by side Distribution Channel: Direct distribution between Realtors and PRIDE
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11. Tactical Launch Decisions Launch Tactic: Promotion Search Engine Optimization When users search for us we want to be first Cost Calculated for such achievement Estimated Number of Pages with PRIDE in their name: 7,600,000 Business with name PRIDE: 116,923 Cost Estimate to be number 1: $11,135.35/month
12. Test Marketing Test parameters: Location: Boston (local based and established networks) Median Income Level 2009: $59,979 Median house or condo value in 2009: $375,700 Median gross rent in 2009: $1,196 Demographics: Average age living in city is 24-55. Median is 32.5 years. Completed level of college degree: 60.9% Easy barriers to entry Duration 24-36 months Type of consumer: Mediocre spender who is educated and technological capable of adapting to product
13. Assumptions for Pro Forma Assumption 1: Average Sales Price $627,000 (Trulia) Assumption 2: Realtors Sales are assisted 70% by internet listings (Baltimore City) Assumption 3: One agent sells on average 7 homes per year (Bureau of Labor Statistics) Assumption 4: Inflation at 5% per year (Inflation Rate) Assumption 5: Taken into account for predicted revenue that IKEA will pay a maximum of $5,000/month for catalog on website Assumption 6: 200 apartments per year per city Assumption 7: Expand by 1 city per year
18. Exhibit 2: Distribution Distribution: Large Realtors (Hammond Residential, Pembroke Real Estate, Re/Max & Coldwell Banker*) Realtors gain competitive advantage Consumers would have better visibility Seamless integration with website-users would not have to visit a new URL
25. Bibliography (MLA): "Boston, Massachusetts (MA) Profile: Population, Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News, Sex Offenders." Stats about All US Cities - Real Estate, Relocation Info, House Prices, Home Value Estimator, Recent Sales, Cost of Living, Crime, Race, Income, Photos, Education, Maps, Weather, Houses, Schools, Neighborhoods, & More. Web. 19 Apr. 2011. <http://www.city-data.com/city/Boston-Massachusetts.html>. "Boston Real Estate." Real Estate MarketConditions. Web. 19 Apr. 2011. <http://ziprealty.typepad.com/marketconditions/boston_real_estate/>. "Boston Average & Median Listing Prices - Trulia.com." Trulia - Real Estate, Homes for Sale, Sold Properties, Apartments for Rent. Web. 19 Apr. 2011. <http://www.trulia.com/real_estate/Boston-Massachusetts/market-trends/>. Flat Fee MLS Listing, For Sale By Owner - FSBO, Home Buyer Rebate. Web. 19 Apr. 2011. <http://www.bloomkey.com/negotiate_real_estate_commission_rates.php>. Baltimore City Real Estate - Free Online Guide to Buying Selling Renting Houses, Condos, Homes, Apartments, Commercial,& Investment Property in Charm City, Maryl&.Web. 19 Apr. 2011. <http://www.baltimorecityrealestate.com/investors.htm>. "Average Home Sales Prices in All Regions of the United States." Real Estate ABC - Information on Buying & Selling A Home. Web. 19 Apr. 2011. <http://www.realestateabc.com/outlook/overall.htm>. "Real Estate Brokers & Sales Agents." U.S. Bureau of Labor Statistics. Web. 19 Apr. 2011. <http://www.bls.gov/oco/ocos120.htm>.
Notes de l'éditeur
Coldwell Banker- want to gain advantage over Re/MaxIKEA-interested in innovative marketing and put 70% of budget in product catalogue marketing
Motivating distribution: Reduction of the distributor’s cost of doing businessBy increasing efficiencies of agents we have helped the agencies gain profit because the agents are able to show more homes per day
Generate interest initially, that’s how we get our actual investor
