Aim:
A large investment bank and a municipality needed to determine the chances of success for developing residential sites. Both the investment bank as well as the municipality own several potential building sites and need to determine the potential of each site before spending funds to develop it.
Important marketing questions:
• What is the economical potential of the building site in terms of sales and profit?
• What would be an optimum mix of residential building types?
• How large is the potential in terms of potential buyers/ tenants?
• What are the thresholds (sale of former house, financing, psychological barriers, etc…
• How can the potential buyers/ tenants be reached and concerted into buyers/ tenant
Approach:
• 12 expert interviews with brokers in the area, with politicians and other stakeholders.
• We approached by phone app 5.000 potential buyers/ tenants (living within a radius of max 10 km around the site), who fitted the criteria (family situation, time of last move, etc…) and established whether they are considering to move to another house within the coming year.
• Those who complied (n=1100), where invited to finish an online questionnaire of app. 15 minutes.
• The data were analysed by means of our propriety statistical model ‘Develop by Data’’. Social, emotional, psychological and economic variables are taken into account for calculating the likelihood of actual transactions.
Results:
We were able to prove that there was a substantial potential for the residential site among the target group (the demand exceeded supply considerably)
• specific subgroups of consumers were identified and linked to specific residential building types an economical optimum combination of residential building types within the site was constructed
• The clients have followed our advice and the study results matched our forecast completely.
• The clients have decided to apply “Develop by Data’ structurally for each relevant potential project in future.