marketing plan

Juecan Zhao (Ruby)

GERO 502

October 4, 2020

Juecan Zhao (Ruby)

GERO 502

October 4, 2020

Mission, Vision & Values

Mission Statement

“Our residents are our family and it means so much to us to make them happy with life.”

As children, they are willing to choose a senior living facility with a good living environment and excellent management services for their parents; as elderly people, they all want to entrust their later life to a quiet, comfortable, and happy place.

Through complete supporting facilities and caring service equipment, Ashley Place let the elderly residents not only enjoy high-end services, but also feel the warmth of home. What the community brings to the elderly is a sense of security and happiness in life. Ashley Place hopes that through their efforts, they can help children to fulfill filial piety, contribute to the development of society, and share worries for the nation and the government.

Vision Statement

The Ashley Place will innovate the service concept for the elderly, lead the new life of the elderly, and become the leader of the elderly care industry. They hope that they can let the elderly spend their twilight years in a harmonious and warm environment, and let them live a happy life, a longevity life, and age gracefully.

The Ashley Place takes the needs of the elderly as aspirations and the satisfaction of the elderly as the goal, make unremitting efforts to improve the quality of life of the elderly, and strive for a life-long struggle for a harmonious aging.

Organization Values

A person’s life has to go through different periods from infancy to the elderly. To respect the elderly is to respect the laws of life and social development. The elderlies are the precious wealth of the society. They work hard and selflessly in different jobs and contribute to the construction of the nation. Without the contributions of old people in the past, there would be no

present.

Peace and love are two essential values of the Ashley Place. Life is short. The employees in the Ashley Place hope to pass on the faith of love and peace to the residents in the community through their warm and thoughtful service. They treat residents as family members and do their best to care and support all the elderly in the community.

Overview of Community

Property Description

The Ashley Place is an assisted living facility located in Lodi, California, which covers an area of 2.03 acres, with a community building area of 37,227 square feet, where is adjacent to an independent skilled nursing facility. The community is facilitated with 73 units and 145 beds, including 39 studio units, 32 one-bedroom units and one half-room unit, in which all units are equipped with private toilets and showers.

The community is a single-story building with a parking lot located on the south side of the facility. The dining area, kitchen and social hall are located beside the corridor of the main entrance, adjacent to the administrative office and staff lounge. The western section of the building is a wing consisting of 17 units connected by a corridor, with renovation to include a small kitchen, the western wing could potentially be converted and secured to provide memory care services.

(See Floor Plan in next page)

Basic Services

The Ashley Place provides round-the-clock service, and the staff is awake 24 hours a day to meet the daily needs of residents and respond to emergencies. They provide living assistance and can take care of elderly people with limited mobility to complete daily tasks, including bathing, cooking and cleaning the room.

The community provides a wealth of convenient facilities and services, and they also provide residents with delicious meals every day. Ashley Place encourages the elderly to participate in sports and exercises and maintain social contact with their peers to keep a healthy lifestyle. Recreational activities in the community include re-education, health and wellness programs, and handicraft projects. There are also convenient facilities such as beauty salons, libraries, laundry rooms, living rooms, and convenience stores.

Additional Services

The Ashley Place provides different levels of care for residents in the community, so that the elderly will not affect their living experience in the community because of their own physiological problems. In addition to daily auxiliary services, the community can provide standby assistance for residents in need, such as helping them to complete the transfer from bed to wheelchair. For diabetic patients, monitoring insulin levels is an important task, and AP staff can help residents complete this task.

Current financial situation

From https://www.senioradvice.com/providers/view/the-ashley-place-lodi-ca

Looking at the assets with determined cash flow, the EBITDAR of Ashley Place in 2017 was $274,629, an increase of $13,477 compared to 2016, and the profit margin was 15%, which was an increase of 1% compared to 2016.

The occupancy rate of Lodi’s community (AL/MC) reached 97.0%, which is 25.8% higher than Ashley Place’s 2017A occupancy rate of 72.1% and 4.9% higher than Stockton MSA’s 90.8%. In addition, the average rent for the AL/MC community in Lodi is $3,690, which is $145 lower than the average rent of Stockton MSA of $3,835, and $903 lower than the average rent of Stockton MSA, and the average rent of the Ashley Place in 2017 is $2,932, is lower than the average level of the local market in Lodi and even in California.

The operating expenses of the Ashley Place are very high. In 2017, for example, operating expenses accounted for 85% of total revenue. Specifically, their expenditures are mainly used for employee salaries, dietary and basic utilities, which account for 34.6%, 12.7%, and 7.9% of total expenses respectively. Among them, employee wages are divided into variable wages and salaries, including the wages of all hourly workers in all departments and the fixed administrative wages and salaries composed of administrative staff’s wages. It is worth mentioning that the facility owner currently acts as the primary administrator.

In addition, property, plant, and maintenance expenses include all other supply expense categories, which are mainly room cleaning and laundry.

Demographic Analysis

Population Analysis (Age segmentation)

Lodi is also very active in the local elderly population statistics. Within a 5-mile radius around the Ashley Place, there are 5,921 residents over 75 years old, accounting for 7.3% of the total population, and there are 2,025 residents over 85 years of age, 2.5% of the population within a five-mile radius. In addition, there are a large number of adult children’s demographic information within a five-mile radius around the community, to be specific, 24.0% of the population within this distance are between 45 and 64 years old (19,556 residents). By 2022, the population of 65 and over within five miles of Ashley Place is expected to grow by 14.7%, in other words 2.7% per year; the population of 75 and over is expected to grow by 9.5%, which represents an annual growth rate of 1.8%.

Income Status

The median home value within a five-mile radius of Ashley Place is $296,165, and it is expected to increase to $332,176 in 2022. Within a five-mile radius of the community, the average annual income of all residents is $54,762. Among them, the average income of adult children

(between the ages of 45-54) is $69,724, which is expected to increase to $76,626 in five years. Within this distance, the average annual income of 65 to 74-year-olds is $55,752, which is expected to increase to $60,298 in 2022.

Customer Profile

Judy Lee: Woman over 70 years old with Alzheimer’s disease.

Judy is 74 years old and lives in Lodi. She raised three children with her husband, two sons and one daughter. Judy’s husband passed away more than 20 years ago. She has no job, so after the death of her husband, she has been living with her eldest son and helping him take care of his daughter (Judy’s granddaughter).

Judy and her family realized that her memory began to decline a few years ago, and sometimes even forgot to turn off the tap; according to the specialist’ diagnosis, Judy was suffering from Alzheimer’s disease. Judy’s children are very good and filial to her, but they are busy with work every day and do not have much time to take care of her. At the beginning of her disease, her son invited a housekeeper for Judy to take care of her daily life including cooking meals.

However, as Judy’s condition continued to deteriorate, she could not recognize the people around her ever her children. Her family is more and more aware that the home care provided by a caregiver is starting to appear unprofessional or incompetent, and it can no longer reassure children at work.

Judy’s children hope to find a community that provides memory care near their home so that they can visit their mother during the weekend. Currently, there are only 30 units for memory care in Lodi, and they are all fully occupied. Therefore, when the Ashley Place makes the conversion of 17 units to memory care, it will become Judy’s first choice.

Competitive Analysis

In Lodi, the Ashley Place has four main competitors, who are Brookdale Kettleman Lane,

Brookdale Lodi, Arbor Place Residential Care, and River Fountains of Lodi, among them,

Brookdale Kettleman Lane and Brookdale Lodi are from the same national operator Brookdale Senior Living. When pulsing the seniors housing in the Stockton area, there are also The Commons on Thornton, Wagner Heights Residential Care, Brookdale Stockton, and Rio Las Palmas. The focus of this analysis is on four facilities in the same area Lodi with the Ashley Place.

The Ashley Place is the earliest senior housing facility established in Lodi, which was established in 1976 and is operated by the local operator. One year later, a regional facility River Fountains of Lodi was established, while the other three are all running with national operator. Currently, the occupancy rate of the Ashley Place is the lowest in the local area, at only 72%. Of the five senior housing facilities, the only one Brookdale Kettleman Lane provides memory care service, others are assisted living facilities including the Ashley Place. Obviously, the rent of memory care facility is much higher than that of assisted living.

The five properties in Lodi are operated by four operators. In terms of operators’ comp share, the 104 units of the two properties operated by Brookdale Senior Living accounted for

31.2%, and the River Fountains of Lodi operated by Individual has 80 units, accounting for 24%. The 76-unit Arbor Place Residential Care operated by Covenant Care and the 73-unit The Ashley Place operated by Ilgenfritz accounted for 22.8% and 21.9%, respectively.

SWOT Analysis

Strengths	Weaknesses
The oldest one with the longest operating time, has been generally recognized by local residents.	It's just a local brand, while the competitors are national brand or regional brand which are more likely to attract new customers.
Have the lowest price under similar living conditions.	Only has assisted living facilities, which is less competitive in the market.
Amenities and services are rich in content, beautiful environment surrounded by greenery.	There are very few parking spaces for visitors here, which may cause trouble for family visits.
The profit margin has increased year by year.	No memory care services and activities.
Abundant infrastructure and entertainment activities.	The building is old because of the long opening years.
Each unit has private toilet and shower.	Only one building restricts activities.

Opportunities	Threats
The 17 units in the west wing can be converted into memory care, which can enhance competitiveness.	With high capital investment and slow return, it may face challenges in turnover.
Cooperate with surrounding churches and medical institutions.	The market is fierce and even cruel.
There is a big gap in the memory care market in Lodi.	The professionalism of the new memory care service may be questioned.
Cooperate with USC and other universities to carry out research and care for residents with dementia.	Competitors also have the possibility of converting to memory care and have more resources.