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  • 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
  • Pride22

    1. 1. P.R.I.D.E“We take PRIDE in helping you create the home of your dreams”.<br />By: Blake Dudek, Adam Hauff, Yana Klebanov, Leo Martinez, Shanil Patel & Katherine Patton<br />
    2. 2. Introduction<br />Company/Product Overview:<br />Targeting online real-estate industry<br />360° Panoramic view<br />Real time virtual tour<br />Customization (home-furnishings industry)<br />Add Furniture<br />Wall Color<br />24-hour technical support team<br />P.R.I.D.E<br />Progressive. Remote. Innovative. Design. Experience.<br />Mission Statement: “Provide customers with the comfort, flexibility, and innovation to experience a revolutionary property search, on an online customizable platform.”<br />
    3. 3. Primary Market Research<br />
    4. 4. PEST ANALYSIS<br />
    5. 5. Secondary Market Research<br />Market Assessment:<br />Real Estate Sales & Brokerage<br />$87.7 billion revenue<br />Residential Sales = 50% of Product & Services segmentation<br />Annual growth 5.0% next 10-15 years<br />Industry expected to grow in 2011 by 3.6%<br />
    6. 6. Secondary Market Research Continued:<br />Current Market Competitors<br />Top 10 Virtual Tour Vendors<br />Source: - Real-Time Competitive Intelligence. All data shown from March, 2010. *Custom subcategory defined.<br />Top Competitor Market Prices:<br />Visual Tours (direct competitor)<br /> $199 starter kit, $29.95 monthly cost<br />Tour Factory<br /> $1458.60 (annual subscription costs+ add on features per home)<br />
    7. 7. Primary Target Market<br />
    8. 8. Tactical Launch Decisions<br />Launch Tactic: Price<br />Introductory Pricing: Exclusive Realtor<br />Market Research shows: Coldwell Banker will pay $1000 flat rate fee per house <br />Charging home-furnishing company $5,000 per month<br />IKEA chosen for home-furnishing host<br />
    9. 9. Tactical Launch Decisions<br />Launch Tactic: Place<br />Located on realtors website <br />Website description <br />Home on the left of screen <br />Catalogue and paint colors on the right<br />PRIDE logo and realtor logo’s side by side<br />Distribution Channel: Direct distribution between Realtors and PRIDE<br />
    10. 10. Tactical Launch Decisions<br />Launch Tactic: Promotion<br />Sampling: Best places=conventions:<br />Real Estate BarCamp (Boston, MA)<br />Inman Real Estate Connect (New York, NY)<br />Purpose of Sampling:<br />Attract realtors<br />Visual confirmation of product<br />Sophistication and reliability established <br />After 5 Years, branch out to other realtors & increase profitability:<br /><ul><li>Beta Test Sites: Stimulate “sampling” phase as a reference for other potential buyers</li></li></ul><li>Tactical Launch Decisions<br />Launch Tactic: Promotion (continued)<br />Social Media: Facebook + Twitter to stimulate hype and awareness of product<br />Mass advertising placement on realtor Facebook Pages<br />“Like” feature along with videos being placed on realtor pages to help consumers understand product<br />Set up competitions for best designed homes<br />Share links on friend’s walls<br />Mass following on realtor Twitter accounts<br />Direct communication with consumers and realtors <br />Understand what consumers demand<br />Guide consumers and help set up their homes in a convenient manner<br />
    11. 11. Tactical Launch Decisions<br />Launch Tactic: Promotion <br />Search Engine Optimization<br />When users search for us we want to be first<br />Cost Calculated for such achievement <br />Estimated Number of Pages with PRIDE in their name: 7,600,000<br />Business with name PRIDE: 116,923<br />Cost Estimate to be number 1: $11,135.35/month<br />
    12. 12. Test Marketing<br />Test parameters: <br />Location: Boston (local based and established networks)<br />Median Income Level 2009: $59,979<br />Median house or condo value in 2009: $375,700<br />Median gross rent in 2009: $1,196<br />Demographics: <br />Average age living in city is 24-55. <br />Median is 32.5 years. <br />Completed level of college degree: 60.9%<br />Easy barriers to entry<br />Duration 24-36 months<br />Type of consumer: Mediocre spender who is educated and technological capable of adapting to product<br />
    13. 13. Assumptions for Pro Forma<br />Assumption 1: Average Sales Price $627,000 (Trulia)<br />Assumption 2: Realtors Sales are assisted 70% by internet listings (Baltimore City)<br />Assumption 3: One agent sells on average 7 homes per year (Bureau of Labor Statistics) <br />Assumption 4: Inflation at 5% per year (Inflation Rate)<br />Assumption 5: Taken into account for predicted revenue that IKEA will pay a maximum of $5,000/month for catalog on website<br />Assumption 6: 200 apartments per year per city<br />Assumption 7: Expand by 1 city per year <br />
    14. 14. Pro Forma Plan<br />
    15. 15. Contingency Plan<br />
    16. 16. Questions<br />
    17. 17. Exhibit 1:Design Adjustments <br />
    18. 18. Exhibit 2: Distribution<br />Distribution: Large Realtors <br />(Hammond Residential,<br />Pembroke Real Estate, Re/Max<br />& Coldwell Banker*)<br />Realtors gain competitive advantage<br />Consumers would have better visibility<br />Seamless integration with website-users would not have to visit a new URL <br />
    19. 19. Exhibit 3: Customer Research: Realtor Survey Results<br />
    20. 20. Exhibit 4: Customer Research: Realtor Survey Results<br />
    21. 21. Exhibit 5:Test City Market Research<br />Boston, MA<br />
    22. 22. Exhibit 6: Boston Real Estate Market<br />Total number of properties: 65,854<br />
    23. 23. Exhibit 7: Home Sales in Boston, MA<br />Average Home Sales in Boston, MA<br />
    24. 24. Exhibit 8:Customer Survey Results<br />
    25. 25. Bibliography (MLA):<br />"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. <>.<br />"Boston Real Estate." Real Estate MarketConditions. Web. 19 Apr. 2011. <>.<br />"Boston Average & Median Listing Prices -" Trulia - Real Estate, Homes for Sale, Sold Properties, Apartments for Rent. Web. 19 Apr. 2011. <>.<br />Flat Fee MLS Listing, For Sale By Owner - FSBO, Home Buyer Rebate. Web. 19 Apr. 2011. <>.<br />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. <>.<br />"Average Home Sales Prices in All Regions of the United States." Real Estate ABC - Information on Buying & Selling A Home. Web. 19 Apr. 2011. <>.<br />"Real Estate Brokers & Sales Agents." U.S. Bureau of Labor Statistics. Web. 19 Apr. 2011. <>.<br />