Challenge

The Vine Building was previously introduced to the marketplace but began underperforming following the events of September 11, 2001. Many of the initial pre-sales began rescinding leaving the project 75% developed with negative absorption. At the same time, new competition was luring buyers with high-profile marketing and enhanced design features. How could the developer accelerate sales, without discounting prices, in a high-surplus, low-demand marketplace?

Solution

Consulting with bireM, Dean and Stacy Jones led a plan to immediately reposition the property and strategically suspended marketing and sales efforts for a cool down period of six months. During this time they conducted extensive market research on the impending competition, supply and demand studies, buyer demographics and broker interviews. They also performed test marketing and focus groups amongst fresh condo buyers that were identified via clandestine marketing techniques. These layers of primary research yielded a profile of the potential homebuyer perceptions, preferences and opportunities to reposition the product offering for greater success. The Vine Building’s brand was refreshed and reintroduced to become “The Vine Belltown” drawing on the neighborhood as a primary marketing platform. Recommendations for product modifications were also provided and implemented.

Preferred partnerships were created with neighborhood business to provide reciprocal benefits for both the businesses and The Vine. The marketing program awaited improved market conditions and increased consumer confidences. To generate traffic to the now completed building, The Urban Housing Tour was created, which included the sponsorship of numerous third party interior designers, furniture showrooms and art galleries. Once completed, seven inspired model homes were created on a limited budget each branded as a distinct lifestyle opportunity to attract a wide diversity of buyer profiles. Value was added through the use of intangible attributes such as art, design and lifestyle positioning as opposed to price cuts or improved specifications, neither of which were an option.

Results

The revitalized marketing generated over 6,000 visitors and provided The Vine with inordinate market share for new home sales notwithstanding the increased competition. Sales were encouraged via market-leading financing programs, which included introducing highly successful zero-down payment / zero closing costs / interest only approach. The project not only maintained original pricing expectations but exceeded them selling out well before the formidable competition. In recognition of this effort The Vine was awarded with sixteen regional and national awards including top honors “Best Overall Advertising Campaign” and “Best Sales Office” and “Attached Community of the Year” from the National Association Home Builder’s. Dean Jones was also recognized as “Marketing Director of the Year” for the United States in 2003 by the National Association of Home Builders (“The Nationals” – NAHB).