Marketing Project

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University of Texas, Permian Basin *

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4309

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Marketing

Date

Feb 20, 2024

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docx

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Uploaded by bhagvatbhakta

Buyer Segmentation Holiday Rental Co marketing efforts are divided into four categories of marketing segmentation: Demographic, psychographic, geographic, and behavioral. The demographic segmentation is based on income and occupation. The demographic segmentation for Holiday Rental Co would be suburban families making more than $100,000 a year because research has shown that families or individuals who make more than six figures have a higher chance of decorating their housing area during the holiday seasons (Statista). The same research has also shown that occupation determines whether families decorate their housing area during holidays. The domains include Real Estate Broker, plumber, radiologist, and successful YouTube blogger (Statista). The psychographic segmentation Holiday Rental Co focuses on people passionate about holiday seasons and having decorations outside of their housing area during the holiday season. Based on research by the US Census Bureau, people who are passionate about holiday seasons are more likely to rent holiday decorations equipment rather than buy new ones each year (US Census Bureau). The target geographic location Holiday Rental Co is planning to use as their market segment is Collin County, which is located in the Dallas-Forth Worth-Arlington metropolitan statistical area surrounded by Denton, Grayson, Fannin, Hunt, Rockwall, and Dallas County. In the county of Collin, there are 436,096 housing units, of which 92% of the housing unit makes more than $100,000 a year . Statistical data shows that roughly 2.80 people per family and 63% of those households decorate their houses during holiday seasons (Statista and US Census Bureau). The last segment Holiday Rental Co focuses on is behavioral segmentation, in which the Holiday Rental Co focuses on people who are passionate about decorating their houses during the holiday season.

Targeting The specific target market for Holiday Rental Co is suburban housing units in Collins County. There are 436,096 housing units in the county of Collins, from which 274,740 houses are decorated in the holiday season and more than 90,000 are suburban houses (US Census Bureau). The residences of those 90,000 suburban housing units have been voted the number 1 drive-through light shows in the state of Texas (Horan). The Texas US Census Bureau has reported that suburban families spend roughly $2500 a year for new Christmas decorations because the old decorations usually break or will not be in a presentable condition (Horan). To target this market, Holiday Rental Co will show these potential buyers that they can save tons of money each year on Christmas decorations alone by simply renting them through Holiday Rental Co. Merely looking at the target market of Holiday Rental Co estimates their sales to peak during Thanksgiving and Christmas. The Holiday Rental Co will also target other suburban houses that decorate in different holiday seasons such as Easter, Spring, Hanukkah, and Diwali. These are all the other holiday seasons where people living in Collins County decorate their homes. Positioning The positioning of a company is very important in the current marketing period because people and influencers are becoming well aware of the marketing position of a company, and that dictates whether a company will be successful within its industry or not (Yec). In order for Holiday Rental Co to achieve the best positioning in the market, Holiday Rental Co plans to implement four positioning strategies: competitive positioning, product positioning, situational positioning, and perceptual positioning. The competitive positioning of Holiday Rental Co is that Holiday Rental Co will provide all sorts of decoration rental for its customers, not just for Christmas but for all the holidays happening in the United States. Most of our competitors only

provide rentals for their customers; however, Holiday Rental Co will also offer an option where an employee of the company will come out to the customer's house and decorate their housing with their personally owned decorations, not the rentals the Holiday Rental Co provides. The second positioning strategy Holiday Rental Co plans to focus on is the product positioning strategy, in which Holiday Rental Co will use eco-friendly decorative equipment, which includes recycled plastic decorations and LED lights for lower light pollution. The critical focus of Holiday Rental Co products will be to stand out compared to other competitors because Holiday Rental Co's products will be unique and have various products for different holidays. The third positioning strategy will be the situational positioning strategy, which is for the Holiday Rental Co to market before the holidays. Hence, the consumers become aware of rental decoration services available for them to use. The situational positioning is crucial for Holiday Rental Co because the type of service and decorations varies from season to season. In the winter season, Holiday Rental Co will have the highest customer volume because of all coming back-to-back on Halloween, Thanksgiving, Christmas, and New Year. The marketing effort will begin around late August and early September in order for Holiday Rental Co to capitalize on future opportunities. The last positional strategy the Holiday Rental Co will implement is the perceptual positional strategy. The perceptual positional strategy allows a person to look at any marketing position from three viewpoints: self, observer, and others. Holiday Rental CO focuses on perceptual strategy by allowing opinions about the company from employees, customers, and others such as potential customers. Getting feedback from people working in the company will enable the company to improve its employment turnover and keep a healthy environment. Customer feedback is the key to improving the product availability and the service performance. Lastly,

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potential customer feedback will allow the company to enter potential new markets, generating more revenue and profit. Marketing Mix Product Holiday Rental Co's product is a service provided to the consumers of the business. The service provided by Holiday Rental Co is that it will give the customers decoration rentals for any given holiday. The decorations range from inflatable Christmas decorations to Thanksgiving turkey decorations to Halloween skeletons, lights, and any other decorations rentals a customer may need. The decorations will also include ornaments, stockings, garlands, roping, swags, ribbons, poinsettias, plastic bats, skeletons, spiders, cobwebs, animatronics, vibrant flowers, bunny figures, oil lamps, torans, and other holiday rental items. The decoration product will be purchased from G&G distributors at a wholesale price. The estimated cost to buy all the inventory for the holiday season is roughly $100,000, including all the decorations the company will need to start the business. Once merchandise is depleted, needed items will be purchased. Customers will also have an option to buy the rental equipment if they want to. These decorations rentals are not the only service provided by Holiday Rental Co. because they also offer a team of helpers to help you set up your own decorations or rentals through Holiday Rental Co. The team will also come to help you take everything down once the holiday season is over, and along with that, they will also help you safely store your rentals so you will be able to reuse your decorations next year. Price

The pricing strategy for Holiday Rental Co will be a mixture of cost-plus pricing, price skimming and price penetration. Upon starting the business, the company will base its pricing on cost-plus pricing, which is adding up all the costs to run the business plus a markup and price penetration which is offering a lower price than competitors to attract business. The price penetration strategy will help the company start its business endeavors by attracting the competitors customers plus new customers which will help the company grow. Once the company is started, it will shift its pricing strategy to price skimming, which is changing its prices as the market evolves. For instance, during the months of October, November, and December, the costs will be relatively higher than in off-season months because it will allow the company to maximize its profit. The rental for an average customer will be roughly $650, which includes the installation cost. However, the pricing will vary from month to month. Also, if a customer requests only for installation service, the average price for that service will depend on the size of the service, but it is estimated to be $150 an hour or $500 for the service. This also depends on what the job requires the installers to do, and any access labor will be charged accordingly. The price for buyable items will be purely based on a cost-plus pricing strategy, allowing the company to make a small profit selling decorations. Lastly, Holiday Rental Co will have variable pricing throughout the year, and the earlier the request for the service is given, the cheaper it will be for the customer because it will allow the company to estimate its sales volume ahead of time so it can redirect the resources as needed. Place The place of distribution for Holiday Rental Co will be a warehouse with displays of different types of rentals provided by the company. The displays will have prices per item and prices per package written on them so the customer knows how much their cost will be to rent

the equipment. Holiday Rental Co’s distributor is G&G Distributors, they will provide will sample decorations for display and the actual product that the customer will be renting. The executive employees of Holiday Rental Co will manage the warehouse and the installers will also be present at the warehouse and they will be dispatched to where they need to be going to decorate. The warehouse size required for a smooth operation process and storing all of the inventory is roughly 15,000 square feet. The location of the rental will be in Collins county because it will help the company stay in the same market as their consumers and it will be convenient for consumers to come see the decoration rental display. Promotion Holiday Rental Co promotional strategy is to advertise through social media, television advertisement, and mail order marketing. These promotional strategies will help the company obtain a lot of business as long as they have a direct channel with their target market. Holiday Rental Co will make many promotional efforts regarding their services such as giving holiday special discounts, giving huge discounts during off-season or any other time business is slowing down. The promotional effort will be a very big part of Holiday Rental Co because the business depends on people finding out about the services provided by them. The social media marketing will have pictures and videos of the rental decorations and previous services provided. The television advertising will have a motion picture of how the decorations are installed and our pricing for the rentals. The promotional activity will also consist of customer feedback in which the company will value its customers feedback and implement the feedback into the business in order to provide 100% customer satisfaction.

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https://homesourcedallas.com/reports/collin-county-real-estate-market-report/ https://www.census.gov/quickfacts/fact/table/collincountytexas/POP010220 https://www.statista.com/statistics/243361/affluent-americans-who-said-they-regularly-take-on- home-diy-projects/ https://www.jumperbee.com/blog/collin-county-christmas-events/ https://www.forbes.com/sites/theyec/2022/01/14/what-brand-positioning-is-and-why-its- important-for-your-business/?sh=232701055a63 https://datacommons.org/place/country/USA/? utm_medium=explore&mprop=amount&popt=EconomicActivity&cpv=activitySource,GrossDome sticProduction&hl=en

Marketing Project

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