Assignment 2: LASA 2—Presentation of Strategy Audit Findings- Due 10/21

Running head: MARKET POSITION ANALYSIS

MARKET POSITION ANALYSIS

M1 :A3 Market Position Analysis

Market Position Analysis

Ashton Woods is the company that I have selected for the purpose of this assignment. Ashton woods is a company that is known to be the top homebuilding companies in the country. They focus on building for its models and allowing detailed personalization to provide that homes are as unique as the people who will live in them. The company has been in the market for over 25 years, time in which Ashton Woods designers has provided more than conventional opportunities for homeowners to own a home build with exceptional design (Ryko Development, Inc., 2015). The company has been recognizing with multiple awards, among them is the 2014 awards as the Most-Trusted Builder in America for the second year in a row. Ashton Woods’ collaborative approach has earned the company high scores in terms of customer support (Ryko Development, Inc., 2015). This paper compares the company’s product at a certain community with the product offered by one of its closest competitor Perry Homes.

Interview

The selected interviewee is the Assistant Manager for an upscale building community, where various builders compete to sell brand new model homes.

Manager’s Perception of the Business Unit’s Product Portfolio

Manager’s perception of the business unit’s product portfolio is that the company remains at the top of the market after 25 years because it offers quality products and prices them accordingly. The interviewee considers that the builder may not be the most affordable one; however, the quality of the products overcomes any pricing issues the customer might have. The company offers as many as 17 different floor plans in just one single community. In addition, Aston Wood offers a series of incentives, like front lake prime lots, that cannot be compared with its closest competitor Perry Homes.

Part II: Analysis

Target Customers

According to the interviewee, Aston Wood does not target a specific group of customers, as the company cannot discriminate against any person or family that wants to purchase one its model homes. However, the company’s products can be enjoyed by families or individuals with high income that enjoy living in luxury affordable homes. On the other hand, mortgage companies will have strict requirements for those interested in buying a home. Among those requirements are credit scores, employment history and income, down payment and closing costs. Marketing strategies are tailored to the different communities where Aston Woods build its models. For instance, according to the interviewee, in this particular community customers are interested in features like price, incentives to build, upgrades, floor plans, quality, guaranty, energy efficiency, design, customer service, and location. Customers can be reached using various marketing strategies, for instance, customers prefer their friends and relatives to purchase a house with the company, this is a great strategy as it grants opportunities for the company to sell other homes, and other forms of marketing campaigns involve social media, public relations events, and traditional advertizing. In terms of buying habits, customers purchasing a home have diverse buying habits as their needs in terms of a home differ. some customers purchase a home as an investment, others to live in or rent it.

Customer Wants and Needs

Customers have different wants and needs when they buy a home. In terms of needs, customers look for a floor plant that provides them with enough square footage to live comfortable and have the necessary rooms to accommodate all family members. Most families are seeking for at least two bathrooms, large eat in kitchens, a two car garage for storage or car parking, a big backyard, location (close to school, shopping, or away from main freeways), and living areas according to the homeowner needs. However, when it comes to purchasing a home customers are looking for reasonable price tags that grant them possibilities of personification their investment in terms of their wants. Some examples of wants are lake view lot, stainless steel appliances, high ceilings, media rooms, wood or ceramic tile floors, certain elevation or exterior color or material.

Customers buy a house for many reasons; the most common reasons are the pride of ownership and appreciation. Ownership provides homeowners with liberties like making choices in terms of decoration. In addition, offers a sense of pride as it offers permanence and protection as customers are investing in monthly payments for their future. Customers also invest in homes that will appreciate and seek the experience as an investment.

Customer Satisfaction

According the interviewee and the survey, Aston Woods homes products satisfies most if not all customer needs and wants. The company builds quality homes with floor plan designs that suit the needs and style of most families, and provides extensive incentives to build new homes. In addition, the company offers a considerable amount of free upgrades like energy efficiency, and guaranty of the company’s brand name that covers any foundation damages for an extensive period, and other needed repairs in various terms. Lastly, the company offers the most relevant aspect when it comes to Real Estate investment, location, as the builder purchases lots in master planned communities that offer families the possibilities of sending their children to good schools. However, there is one need that is not covered, price affordability, as Aston Woods offer a series of advantages for homeowners that come attached to a price tag justify by the quality of their products.

Product Position in the Market

Aston Woods is regarded as one of the top building companies in the country. When comparing the offered product to a closest competitor, Aston Wood price/quality combination persists being a decisive fact in influencing the customer’s choices. Among the closest competitors for the company are Perry Homes, the Lennar Corporation, and David Weekly.

Product Differentiation & Competitive Advantage

The product differs from its closest competitor in term of the features offered in the different models at the community, where the company offers plans to suit the needs of many customers, the products were designed considering that people seek for diverse features when purchasing a home. When it comes to quality and price, the company offers the most balanced combination because it gives customer more for their investment. The brand image also differentiates the products offered by Aston Woods as customers’ appreciation for the company reflects in many surveys. All the aforementioned aspects influence a customer’s decision when purchasing a home, which creates more opportunities for Aston Woods to continue being at the top of the home building industry. Definitely, the source of competitive advantage for the Aston Woods products is the quality and innovative efforts included in the models build by the company, this source of advantage is sustainable in the long term, as the company is well known for building high-efficiency models. According to the interviewee, the company grants customers savings ranging from 40 to 50% in their energy bills. According to the Aston Woods website “energy-efficient homes provides homeowners with significant savings in their utility bills(Aston Woods, n. d.). In addition, the company offers quieter interiors and improved temperature control to provide customers with greater comfort (Aston Woods, n. d.). Aston Woods also offers homeowners fresh air ventilation as a way to achieve a healthier living (”(Aston Woods, n. d.). All the features makes of investing in an Aston Woods home the opportunity to invest in a “better-built, healthier and more comfortable home” (Aston Woods, n. d.)

Part III: Matrix

	Aston Woods	Perry Homes
	Naples Floor Plan	4929S Model
Price Affordability	0	2
Incentives to build	2	1
Upgrades	2	1
Floor plan	2	1
Quality wise	2	1
Guaranty	2	2
Energy Efficiency	2	1
Design	2	1
Location	2	2
Total

· scale of 0–2.

· 0 = need not met

· 1 = need partially met

· 2 = need fully met

References

Aston Woods ( n. d.) Quality That Speaks For Itself. Retrieved from http://www.ashtonwoods.com/quality

Ryko Development, Inc.(2015) Ashton Woods Homes. Retrieved from

http://www.lakesofbellaterra.com/new-home-builder/ashton-woods-homes/index.html