Reference no: EM133171735
You are the founder of a startup called Welcome Homes. Welcome Homes is trying to make it easier for home buyers to build a newly constructed home without having to deal with delays and headaches. Their slogan is "Order your dream home, online." They promise prospective buyers that they can "build the home you want, where you want for a guaranteed, all-in price." Homes come with select customization options with new homes in the New York metro area starting at $670,000, not including the land the homeowner has to purchase.
The $670,000 model is their smallest and most affordable option, but they have two other options, the most expensive at $880,000 (not including the cost of the land).
You have received $1 million in funding from investors to launch this marketing plan.
Figure 1
|
Target Audience
|
Audience #1
|
Audience #2
|
|
Segment Size
|
450,000
|
125,000
|
|
Segment Adoption Percentage
|
0.25%
|
1%
|
|
Purchase Behavior
Purchase Price
Purchase Frequency
|
1
$670,000
1
|
1
$750,000
1.5
|
|
Profit Margin
|
25%
|
30%
|
|
Fixed Costs
|
$5,500,000
|
$4,500,000
|
|
Segment Profit
|
?
|
?
|
As part of this plan, identify what characteristics are important for your target audience.
What criteria will you use to segment your market?
Decide how you will position your offering using the 4Ps .
First, do the math to decide if either of these audiences is profitable.
Please explain how to find segment profit
Specify whether you would put all of the $1 million into one audience or how you would split it up between the audiences.
Discuss the findings