Question

Topic: Strategy

Marketing Competition With Other Development Companies

Posted by Anonymous on 3/24/2009 at 9:29 PM ET 250 Points
We as a established housing development company have come up with a new apartment project. However, sales wasn't as good as we expected as there's another company doing a similar project around the same area but with a lower price than us. I realized that we're focusing on the same market and niche customer on affordability housing.
How should i attract customers into buying my project? Should I spend a little more on giving extra built in furnitures, or promote my project constracting to the concept of the other company?
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RESPONSES

  • Posted on 3/25/2009 at 7:47 AM Accepted
    Focus on the advantages you offer (compared to the other company). You may not even need to refer to your competition by name, just stress the specific features and benefits you offer (that they don't).

    Since your apartments cost more than theirs you need to give prospective customers some perceived benefit(s) to justify the higher price. And you need to make sure they understand that you're the only place that can deliver those benefits.

    Good luck.
  • Posted on 3/25/2009 at 2:40 PM Accepted
    Find out the pulse of the customers in that particular area,about what they are actually looking for.Based on that try to do it in smarter way.pricing will not get the business continuously.
  • Posted by Peter (henna gaijin) on 3/30/2009 at 9:31 PM Accepted
    I agree with mgoodman. Even if you and your competitor are both in the "affordable housing" market, you don't want to end up competing on price. Better to promote the value of your house (why would someone want to spend the slightly higher price to buy your house over the competitor). Is it larger, have better appliances, in a better location, etc. Make sure that whatever value you have is listed out on spec sheets for the units and such.
  • Posted by jstiles on 4/1/2009 at 12:10 PM Accepted
    I concur, you need to focus on any additional value you provide. Keep it customer focused... is it closer to shopping? highways access? do you provide more storage space? parking? parks, schools?

    Customer may be willing to pay a little more if they perceive that they are getting more value in return.

    Best of luck!
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