Marketing Plan for Flipping houses in Cincinnati, Ohio
Situational Analysis
Business Context
House flipping business is currently going through a significant and dynamic transformation through the increased awareness of the ability of flipping houses to generate income as well as a cheaper strategy of acquiring homes. House flipping business has been a popular practice ever since individuals realized that houses or better referred to as homes cannot only be utilized as a source of shelter provision as it can also be utilized in generating profit (Boardman, 2013). Houses flipping business is the act of buying houses that require to be repaired or renovated and then handling the repair before selling them at a higher price. Profits from houses flipping are generated from the act of buying houses that are characterized by low prices and then selling them at an increased price often when the market is characterized with rapid rising.
On the other hand, these profits can be obtained through buying of properties that requires being repaired thus making the necessary fixes before a sale. According to Boardman, (2013), Flipping houses in Cincinnati, Ohio is characterized with high benefits since most individuals are in need of obtaining a home. In addition, the market is characterized by high rapid changes. However, over the last few years, houses flipping for generation of profits have not been a beneficial activity since most of the investors bought the houses when the prices were very high and now the houses prices have declined. Marketing is thus important in attaining the success of the business as well as planning for better generation of profits in the future. The current m housing market necessitates products that are well equipped and maintained. The corporation offers quality and affordable goods that are effective in meeting the general needs of the consumers.
With the changes that have been brought by modernity, there is a necessity to offer housing products that are highly innovative to cover the needs of the young generation which is covering an essential part in the flipping market today in Cincinnati, Ohio. Deacons housing investment is a licensed and a registered property corporation that is based in Cincinnati, Ohio. The corporation looks forward to assisting an increased number of people to acquire housing at an affordable price. Currently, the business is going through some preparation and the business is set to be opened to the entire public soon. The corporation provides sophisticated approaches in enhancing the entire need of consumers being fully satisfied. The necessity of flipping houses for the corporation is justified and validated on its general ability to offer long-term value to the consumers (Boardman, 2013). From research, it is clear that flipping houses business is linked with increased profits generation and particularly in Cincinnati, Ohio where the population is rapidly growing in the recent years. This can thus be described as a direct connection between homes and consumers. However the flipping business in Cincinnati, Ohio cannot be regarded as the best as it requires some developments in areas of prices as well as innovativeness. In the purchasing trend of houses in Cincinnati, Ohio the young generation between the ages of 25 to forty years is leading. This thus raises the general necessity of using strategic strategies in marketing the business as the availability of house that can be flipped is still high. The e-commerce marketing approach for the business is currently not the best and thus there is a necessity to generate strategic directions on how the corporation can be successful and particularly to the young people.
Corporation Description
Vision Statement, Strategic Intention, and Mission Statement
Deacon's investment company is a corporation that is aiming at delivering excellent services to the consumers in the context of helping individuals to own homes and manage them. The corporation plans on the provision of favorable surrounding to all the consumers at affordable prices. The business will be focused on facilitating houses fixing after buying them and before selling them to the consumers, sale facilitation, maintenance of property and the provision of the houses sellers with an adequate guide.
Vision Statement
The vision of the corporations is to become the preferred option for consumers and those that wish to sell their houses to the corporation in the entire United States by the end of the next five years.
Mission Statement
Our corporation is mainly established with the objective of assisting houses buyers and those that sells to us. This is through ensuring that they acquire housing properties of their personal options with affordable prices and preferences. The corporation will additionally be helping them in effective housing management. The corporation, therefore, aims at offering unique housing experience through giving property convenience and offering an increased variety of products to select from. In addition, the corporation is objected at offering exceptional deals through the sale of quality and affordable houses. Consumers are the main priority of the corporation and the corporation will strive to ensure that it becomes the housing destination that is widely trusted. Lastly, the corporation wishes to respect all the involved associates via developing chances for personal growth and as teamwork development simultaneously in a rewarding and an environment that is full of joy.
Market Goals
It is factual that the flipping housing market in Cincinnati, Ohio can indeed be described as a booming market. This, therefore, implies that the involved investors will at all times remain attracted by the market based on the acquired benefits as well as growth. It is no doubt that there is a difficulty in viewing multi-millions who holds no slight interest in investing in the flipping market (Ripaldi, 2015). Most individuals think that the flipping business is characterized by unprofessionalism but that is not true because the business is doing well and it is being conducted by experts.
In a real sense the more that individuals acquire housing the higher the opportunity of Housing Corporation to secure more deals and the higher the housing prices. In addition, as long as consumers are continuously in search of houses and some getting better houses then there will always be a business for the flipping houses corporation (Ripaldi, 2015). We hold perfected marketing and sales strategies and the business will reach the ground in a high run. The corporation is very optimistic that it will meet and even pass the general target of creating profits from the first operation month and then the business will gain the capability of growing above Cincinnati, Ohio in America within a time period. The corporation has been able to examine the flipping houses market and the chances in the industry particularly in Cincinnati, Ohio has been established thus developed the sales forecast that is very strategic and consumer friendly.
The corporations aim at being listed amidst the top five flipping houses corporation in America within a span of at least five years. In addition, the corporation hopes on becoming the number one priority in regard to flipping housing business services in Cincinnati, Ohio within the next two years. Finally, the corporation needs to build a self-sustaining flipping houses business that will encourage and contribute to the general development of the United States economy.
Marketing Budget
For the flipping housing company, the marketing budget is 10,000 dollars for the first year after the official of the business to the market. This is done so because the corporations have thoroughly studied the market and thus the business entirely understands that in order to win consumers at ease there must be trustworthiness as well as adequate competent (Smilansky, 2009). A good relationship is an additional key aspect when it comes to attaining and surpassing the target market and for the corporation, it will be fully objected at gaining young individuals who want to own houses in Cincinnati, Ohio as they are the major target for the corporation. Moving forward the corporation will budget for about 5 and 10 percent of the general annual income that will be focused on promoting and marketing the business in Cincinnati, Ohio so that it can attract more investors from the domestic and the global regions.
Market Analysis
From the recent report, it is clear that the flipping housing investment is on the rise. In the year 2009 statistics reveals that the general revenue that was collected from the flipping market was approximately 9 billion dollars in America (Smilansky, 2009). Regardless of the continuing expectation of the slow of housing prices in 2015 the industry was still characterized by adequate growth (Smilansky, 2009). During the third quarter of last year flipping, apartment housing sector grew very high in the United States. This resulted.
Despite the fact that the sales that are developed from houses flipping are less as compared to that that is generated from actual estate housing it is no doubt that this sector is still experiencing development in Cincinnati, Ohio. In Cincinnati, Ohio the flip houses investment market is highly fragmented and based on statistics it is clear that the involved companies generate less than twenty-five percent of the housing industry general revenue (Stanyer, 2014).
In the year 2014, the federal government of Cincinnati, Ohio spends close to a hundred million dollars on residential properties particularly in the coordination of repairing facilities. The involve flipping corporation in the year totaled to 12 in Cincinnati, Ohio (Stanyer, 2014). The operation condition in the industry as we move on is expected to remain as positive in the following five years and there is growing prediction that thereafter the condition will slow in the future due to trends and preferences changes that will be influenced by increased modernization. This is the rationale as to why in the following few years the value of construction and sale houses is likely to experience huge growth based on developed consumer confidence as well as low rates of interests which will generally cause a rise of the housing stock in general. It is additionally significant to note that the Cincinnati, Ohio houses ownership level will additionally rise.
However with the changing preferences, more consumers will require equipped and well-structured houses and the housing business may be required to adopt additional measures in development (Stanyer, 2014). It is thus significant for flipping houses corporations to make a diversified market position so that their operation in the future can be sustained. Accommodation is ranked among the top requirements of humans and this is the reason as to why young individuals are striving to acquire houses. This is the major factor that drives individuals to operate housing businesses (Stanyer, 2014). In addition flipping housing business unlike real estate it necessitates less starting a fund and good revenues can thus be generated within the shortest period.
Target Market
The flipping housing company targets individuals from different social classes as it offers affordability. However, the business is more objected on young individuals who are amid the ages of 25 and 40 years’ as they are currently the highest buyers of flipped houses in Cincinnati, Ohio. It is easy to say that most of the individuals are currently in need of houses but establishing reliable and trustworthy consumers can be difficult (Villani, & Davis, 2007). It is thus important to establish that attracting the target market goes beyond online advertisement as there has to be evidence on the ground. The corporation will rely mainly on developing better relationships with individuals in the community. This will thus be achieved through social responsibility as well as the word of mouth from the well-trained employees. The current market requires more dynamism and this can only be achieved through being a consumer-centered organization.
Marketing Plan: SWOT Analysis
It is without a doubt that the flipping housing business is the cheapest and simplest form of getting into housing actual investment (Villani, & Davis, 2007). In fact, all that is necessarily is to be a holder of housing knowledge as well as hold a better understanding of the changing trends in the market. As a corporation, we are mainly objected at maximization of our general strengths as well as chances and solve the existing threats and weaknesses.
Strengths
The corporation primary lies on the fact that we hold a healthy working association with individuals who sells and acquires housing properties in Cincinnati, Ohio, and America in general. In addition, we are characterized by trust, better management of relationships as well as honesty which is highly required in business.
Weakness
Our primary is that we are a fresh flipping housing corporation and thus it will require the execution of increased efforts in attracting more consumers to our products as well as awareness creating.
Opportunities
These are many opportunities in the housing market and as a corporation; we are willing to grab each chance that comes our way in proving that we are particularly the best.
Threats
The major threat is competition. In Cincinnati, Ohio there are well established Housing Corporation that may hinder our ability. In addition, there are strict federal policies and international economic housing decrease may also be a major threat.
Competitive Advantage
Deacons’ Housing Investment Corporation is an obvious fresh business in the market. However, the corporation has well researched the market and understands that consumers are best attracted through the utilization of honesty, trust, and excellent consumer relationships management. The corporation is designed in a manner that it can handle increased competition as well as changing market trends.
Sales and Marketing Strategy
Deacons Corporation aims at maximizing profits generation in the flipping housing industry through the deliverance of high quality as well as affordable houses to the esteemed consumers. With the development of the property market, it means that investors will highly be attracted to the market (Villani, & Davis, 2007). These changes will thus help the corporation in securing better deals in the market. The corporation will utilize the internet as well as relationship building as the primary marketing strategies in creating of products and corporation’s awareness.
Pricing Strategy
The primary sector of the business is ensuring that the corporation works within the provided budget in delivering satisfaction to consumers. The pricing of houses in the market is influenced by factors such as location, size, structure, type materials utilizes as well as additional factors (Williamson, 2015). However, the corporation will work on offering affordable houses that will mainly be influenced by value and satisfaction of our consumers. Because the corporation cannot be able to control the general pricing it will work on modification of prices structure based on the market trends.
Unique Sales Superiority
The superiority and uniqueness of the corporation's sales are that it has devised approaches that are aimed at minimizing litigating risks and maximize profits through reducing the buying rates and utilization of high maintenance and repairing strategies. The consumers are bound to gain different advantages when they are patronized with our corporation. This is because the corporation aims at centering on consumers as the major priority thus the property’s value is bound to increase against the depreciation of the market in general. In addition, the corporation will ensure that the consumers are treated with the highest respect and also abide by all the connected housing policies and thus there will not be any outsourcing of any specific demographic (Boardman, 2013). Consumers will thus acquire affordable and high-quality houses, adequate money value as well as a free consultation.
Marketing Strategic Alliance
In reference to the property industry, there is almost a zero possibility of the involved competitors in forming strategic marketing associations (Williamson, 2015). This is because most of the corporations are mainly objected at maximizing their profit as well as the sales of houses. However, Deacons will seek to form an alliance with other corporations in forming better structures to overcome future threats.
The corporation will utilize different approaches in retaining consumers which are basically the main ways of developing consumer experience. In order to retain consumers the corporation will work on effective management of properties, offer affordable prices, ensure that there is a constant relationship with consumers to get their feedbacks or areas that they would want the corporation to develop and create a platform where consumers can gain points for the purchases that they make. In addition, the corporation will ensure that the consumers are involved in decision making. This will help in creating a sense of belonging, trust as well as loyalty amid the corporation and the consumers (Williamson, 2015).
Consumers will additionally be offered with after sales services which may involve repair and maintenance of the houses for a particular period depending on the agreement and structure of the property. The business marketing approach is based on ensuring that consumers are offered with incentives in order to retain them, gain a better reputation and attract more consumers (Williamson, 2015). The certain of loyalty will enable the corporation in retaining consumers without defaulting thus building a better image in the market. This will assist the corporation in becoming the suitable option for consumers who need to acquire properties at reduced prices.
Conclusion
Deacons’ flipping housing investment Corporation has the opportunity of securing a large market segment in with the targeted market and marketing strategies. Through this the corporation will be able to gain and retain consumers as it will be offering quality and affordable properties. This is unlike what the competitors are currently offering thus securing a well strategized position in the market. With this the corporation will be able to attain continuity even in the future which is characterized by numerous uncertainties.
References
Boardman, M. (2013). Fixing and flipping real estate: Strategies for the post-boom era. New York: Apress.
Ripaldi, T. (2015). Wake up, america!. Place of publication not identified: Creation House
Smilansky, S. (2009). Experiential marketing: A practical guide to interactive brand experiences. London: Kogan Page.
Stanyer, P. (2014). Guide to investment strategy: How to understand markets, risk, rewards and behaviour.
Villani, R., & Davis, C. (2007). Flip: How to find, fix, and sell houses for profit. New York: McGraw-Hill.
Williamson, M. (2015). The everything guide to flipping houses: An all-inclusive guide to : buying . renovating . selling.
