Market Analysis for Divergent.
5.1 Opportunities for Divergent.
Commercial real estate trends have revealed a new live/work/play lifestyle that is taking precedence in the Greater Los Angeles Area and Ventura County. The idea behind the live/work/play lifestyle is that you can do exactly those things in one area. Instead of commuting long distances to work and spending more time in the car than your destination, the new lifestyle trend gives people the opportunity to work near the area in which they “live and play.”
Los Angeles is known for higher price points and a more expensive lifestyle to keep up with. However, it would be convenient to move your commercial space to an easily commutable area in the Los Angeles and Ventura Counties
Las Vegas is known globally as the Entertainment Capital of the World. It faces social, economic, and sustainability challenges just like every other large urban area worldwide. By 2045, the population of Southern Nevada is expected to grow to 3 million residents from 2 million. Rapid growth and urban sprawl is expected to put a strain on existing infrastructure, public services and public transit capacity; thus making the safety and mobility of city residents and visitors a priority. In 2016, Las Vegas City Council designated an Innovation District in the downtown core to focus on evaluating emerging technology in the areas of public safety, mobility and social infrastructure. This District is a proving ground for collaborative efforts between the city and advanced technology partners. The focus is safe, efficient, sustainable and environmentally conscious solutions for the future.
5.2 Identification of Customers for Divergent.
Potential customers of Divergent will be consisted of following
We will find the customers through the following ways.
•We will establish our websites, so our customers can reach us through the website.
•We will enter into alliance or partnership with lending companies for referring us customers against specific commission based.
•We will provide our corporate profile to different corporate companies.
•We will formulate different marketing activities for the promotion of our company and searching for customers.
•We will provide online platform for customers to reach us for live/work incubators.
5.3 Market Size and Market Characteristics
Having undertaken thorough and comprehensive research of the market, we realized that there is a vast opportunity for a live/work incubator, with less than a handful currently on the market. The population and lifestyle of Las Vegas is trending younger and obviously this is the desired environment for that demographic. The Las Vegas real estate market in Nevada is closer to long-term stability than it has been in the last five years. Over those five years, the region has seen significant improvements. Current trends in the area indicate no significant fluctuations, suggesting true normalcy may be on the horizon. The city’s stimulation is due, in large part, to a heavy presence of foreign and domestic investors looking to capitalize on the buy and hold market. Since the last recession, Las Vegas is the only major city that has a huge equity margin. This means that the all-time high price has not been reached, and there is historical potential for gain.
30% of Las Vegas home buyers come from California. Las Vegas has no personal income tax, and property taxes can be up to 70% less.
Las Vegas has experienced several booms in its history and it saw an incredible real estate bust during the Great Recession. Las Vegas’ recovery hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away.
For savvy investors, the Las Vegas real estate market is both stable and predictable. In 2019, the Las Vegas housing market was the hottest in the United States. For buyers looking at relocating and buying property in southern Nevada, the Las Vegas real estate market 2020 offers a great opportunity for finding your dream home: Zero tax income state verses the 12% income tax in California.
The real estate data from Zillow shows that the median home value in Las Vegas is $273,800, which is above the national average. Las Vegas home values have gone up 1.8% over the past year and looking forward into the coming year, the Las Vegas real estate market forecast is that home prices will continue to rise by 0.8%.
The median list price per square foot in Las Vegas is $169, which is lower than the Las Vegas-Henderson-Paradise Metro average of $170.
The median price of current listings in Las Vegas is $299,998 while the median price of homes that have sold is $271,700. The median rent price in Las Vegas is $1,500, which is lower than the Las Vegas-Henderson-Paradise Metro median of $1,525.
The Las Vegas real estate market is entirely brimming with new businesses. It’s friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends with Amazon’s human resource headquarter coming here and Google’s offices, and the first hyper loop.
The new businesses are propping up at a much faster rate than the national average. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices).
Currently, Trulia has 8,421 resale and new homes for sale in Las Vegas, NV, including open houses, homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median price of a sold home is Las Vegas is $289,000 and homes are selling for about $165/sqft.
5.4 Market Segmentation or Target Market
Live/work apartments are in high demand, and we are looking to build a project that targets young professionals in Las Vegas.
5.5 Marketing Plan
The real estate industry of Las Vegas is a competitive market, and many companies are already providing live/work apartments. We can compete in the market through the application of a marketing plan. For providing high quality services and raising the profile of the company, it is essential for Divergent to understand its uniqueness. Our focus is to adopt the best and most effective marketing strategies which can promote our business by improving our website at the international level. We will use the following marketing strategies to promote our website and to increase our number of customers which will increase our sales and profits.
•We will use Google My Business. It is one of the most powerful marketing strategies for small businesses to promote business. Our business listing will get a promotion on Google My Business. For targeting local markets, this platform is a powerful marketing medium. The listing appears at the top half of the search page ahead of the search results.
•We will pair our strategy with Google AdWords. AdWords is a marketing tool to get the results immediately. For maximum output, we will pair this channel with our other marketing strategies.
•We will explore content marketing by creating relevant content showcasing our business values and the care we take to resolve people’s problems with our services. Then, we will distribute the content through a wide range of channels online. This way of content marketing is a proven tactic to drive the traffic towards our business from varied sources.
•We will create Facebook ads by placing redundant ads to target our specific set of consumers based on their location, online behavior, sex, age, etc. It will be among our top marketing strategies for our business. Facebook Ads Manager will guide us to create, run and test many ad tests so that we can find out which ad formula is catching the attention of our consumers.
•We will make partnerships with other companies so that we can reach out to more people by collaborating with other ventures. This will be an effective way of marketing our services as we will be using the consumers of the other ventures for promoting our services.
•We will use social media because most of our target audience is using social media for customer support. Our live/work apartment business will be present on all the major social platforms like Twitter and Facebook.
•We will advertise in print media such as magazines because they have a broad readership. In this way, our advertisements for services will catch the attention of people who rely more on print media for detailed news and information.
•We will explore webinars. A webinar is a seminar conducted online in varied forms such as demonstration, discussion, and presentation. Webinars are used to generate a more extensive email list. People who join a webinar have to give their details such as name, phone number, and email. Our custom stylish live/work apartments will generate a more significant number of emails this way. We will then use these emails to promote our services. As compared to simple videos, webinars are far more engaging because of the live Q&A sessions for the subscribers. When they get answers to their specific queries, they will feel special and satisfied and heard.
•We will help others by offering a free consultation. People want help from experts. We will use their urge for help by offering our expert views on a problem free to them. By offering our free consultation, we will help our real estate business in making the right purchasing decision. Also, we will use referral software such as Omnistar through which our customer would refer our company to others.
•We will setup an inter communication method to post job wanted and what you do for the community.
•We will build up an online platform and forum for our customer where customers can build up direct contact with us, and also communicate with each other. This will help us grow our company fast.
•We will use email marketing. It is a low-cost strategy that we will use to enhance our global reach of the business. We will automatically send emails without wasting our time. Emails are easy to set up and run, and we will establish communication with our consumers immediately.
5.6 Marketing Objectives
•Increase sales: To attain a reputed position in real estate business by quick services to customers in Las Vegas, with a focus on generating revenue.
•Build brand awareness: Marketing strategy to grab and captivate consumers from day one, and continue to make them return often and be deeply engaged with our live/work apartments.
•Enhance customer relationships: To maintain customer relationships through emotional offerings deeply valued as essential lifestyle accessories, multi-online marketing tactics, digital distribution partnerships and effective marketing strategies and cleverly crafted live/work models, and contingency plans.
•Partner with the Soho house.
5.7 Marketing Strategies
Our crucial marketing strategies will be through Click Funnels/ Landing Pages/ For Sub Boxes:
Facebook, Pinterest, Instagram, Twitter, Google, YouTube.
•Word of Mouth Marketing: Despite the existence and fast-growing social media platform, WOMM cannot be ignored. An offline strategy like WOMM is needed by the recommendation of our brand by people (our loyal customers) sharing their experiences about our services/services with friends over the phone or face-to-face. Survival Flow will put this strategy to its full advantage. The advantages are limitless to mention a few, we will:
•Offer a referral campaign where our clients can send new tenants our way
•Provide an email campaign where we stimulate our customers to forward a message to their friends
•Create shareable content on our website
•Create an event marketing to have our top customers or clients bring their friends
•Web-advertising using targeted e-mail and auto-responders: E-mail will be used as one of the oldest forms of digital marketing and one of the most effective and cost-effective media or marketing strategies. With e-mail, our targeted market can be reached straight in their inboxes. This is very vital as it is a tool that can help raise responsiveness about our services.
•Related media publications: We will likewise make utilization of media distribution to tell individuals outside the objective area about our services, services, offers, and objectives to help increase additional customers.
•Search Engine Optimization: Sending potential investors to the wrong website is a nightmare for a brand’s reputation. The best solution is to get our website ranking higher in Google or Bing search results. If we find a spoofed website infringing on our brand, we can report those sites to Google.
•Utilize social media: The use of social media cannot be undervalued. There are so many good uses and so much useful data to be found on the plethora of platforms, and all the tools can be used to promote our services, events, trade shows, stories, shares, likes, etc.
•Promotion of Short Augmented reality (AR) or Virtual reality (VR) clips on YouTube and social media: This will project our image as an experienced real estate company with new abilities as AR and VR are used to make clients have a close-to-reality feel of services.
• We communicate and chat with our customers through all online channels.
Build a Facebook page and group.
Opt for Facebook sponsored ads.
Maximize the audience targeting system of the platform to reach our exact
Generate likes for our Facebook page.
Use the FB button feature to enhance accessibility to the app.
Contact influencers to promote the page.
Build a twitter profile with the relevant following.
Engage followers about the benefits of the apartments.
Daily advert using sponsored tweets.
Automatically generate retweets to encourage our followers to talk about
Contact influencers to promote the page.
Build an Instagram account with the relevant following.
Post attractive features of our services at regular intervals.
Post successful withdrawal processes and clients’ testimonials.
Use Instagram sponsored ads (targeted).
Contact Influencers to promote the page.
Join relevant networks (groups) that resonate with our target customers and service offering.
Use paid sponsored ads to direct the brand’s posts to individual’s LinkedIn.
Contact influencers to promote the page.
Engage customer with compelling images and colorful infographics.
Pin pictures of employees to help customers identify our management staff.
Facilitate conversations about our brand.
Contact Influencers to promote the page.
Build a target email list; we will purchase email lists of leads that can then
be converted to actual customers.
Send emails to our email list.
Send short and compelling contents.
Timing – to get interests of recipients, we will send emails at night and
weekends when most recipients are off work.
5.8 Pricing Strategy for Divergent.
Price is the amount of money charged for a product. Nowadays, even though non price factors have increasingly gained importance, price still remains to be one of the most important elements that determine a firm’s market profitability. Price is the only element in the marketing mix that produces income, and other elements represent costs. Price is also a very flexible element. Unlike services feature and channel elements, prices can be changed quickly. Although pricing has been concerned as the number one problem or a big headache, smart managers could use pricing as a key strategic tool for creating and capturing customer value. Moreover, in order to achieve pricing objectives, several pricing methods are employed such as cost-plus pricing, target return pricing, value-based pricing and psychological pricing.
We have set our pricing strategy as follows
5.9 Sales Strategy for Divergent.
The bulk of sales come from word of mouth. Our services shall initially be sold mainly through personal selling and referral business, with relationships and customer experience being, by far, the most critical factor. Relationships in this regard mean the establishment of links with the various related property management and real estate brokers companies which often order or require our apartments for their customers. Invariably, the experience a customer has with our apartments will go a long way toward influencing the intermediary to continue placing deals with us, and whether they should refer their friends to create rent out our property. We intend to position ourselves as a desirable alternative source of the live/work apartments in Las Vegas. The service strategy will also be based on quality, combined with making the service readily available to the customers. We need to realize that it does actually take effort. We will make sure our cash buyers are in place.A crucial competitive edge will be our assembly strategy. This will be based on good quality, such that service and delivery are not only a pleasure but also a feature that enhances the sense of quality and perception by clients.