Introduction of Eco-Friendly Flat Pack Housing Facilities into the Market - Case Study Example

 Introduction of Eco-Friendly Flat Pack Housing Facilities into the Market Executive summary Environmental conservation is paramount in all spheres of life in the modern dispensation. Business people should, therefore, think about modeling their businesses, especially in the Housing sector to match the need for environmental conservation. This report looks at the prospects of introducing Eco-friendly flat pack housing facilities in Switzerland. The report will focus on market research, SWOT and PEST analysis not to mention the market mix strategies to be employed. Consequently, the report focuses on the market segmentation and the target group. The report winds up by summarizing the details and giving recommendations on how the success of the business can be ensured. Introduction Climate change is a phenomenon that cannot be ignored in the modern dispensation. Everywhere across the world, there are efforts being made on a daily basis to ensure that the environment remains stable. Wide ranges of initiatives are being taken and will continue to be taken in the coming years. Switzerland is one of the nations in Europe that boost of a number of environmentally friendly housing facilities (Gaan, 2008). All through Switzerland, different buildings have been developed to resemble the theme of the environmental policy of ensuring a green nation. Throughout the generations, numerous changes have been experienced and will continue to be experienced with respect to having green facilities. Even though there are a numerous initiatives being undertaken to ensure that the environment is secure, a lot more needs to be done in the housing industry in Switzerland. There is a need to introduce eco-friendly flat pack housing facilities in Switzerland. Flat pack facilities are environmentally friendly parts that are built and packaged and then transported to the destination for which they are to be used. Introducing the eco-friendly flat pack facilities will largely have an impact on the wellbeing of the housing sector with respect to the environmental stability. The housing sector will be largely diversified with many people seeking to try their hand on the Eco friendly flat pack houses (Kocsis, 2010). To bring the facilities in the market, a number of issues will have to be taken into consideration. One critical advantage about the eco-friendly housing facilities is that the individual flat packs are built in different locations and the inherent task that remains are just but to fix them at the site of the construction (Runde and Thoyre, 2010). This is a new phenomenon that would be introduced into the market. Market research In Switzerland there is no doubt that the environmentally friendly facilities are numerous in the market. There is a gap in the market concerning the Eco friendly housing facilities with respect to flat-pack housing facilities (Hawthorne & Exhibition, 2005). Most of the houses are built through the conventional way where everything is built from scratch right at the site. This is quite different from the eco-friendly flat-pack housing facilities that are to be introduced in the Swiss market. Moreover, it is clear that a number of housing facilities though unique to the market do not offer a significant challenge to the rest of the market players. In Switzerland, there is need for enhanced research work to ensure that the consumers are given the right products needed in the market. Through the different research, studies have shown that the eco-friendly facilities are relatively cheaper than the traditional housing facilities where concrete is the order of the day. The green houses cost about 30% less than the conventional houses that cost about 60% more (Wiid & Diggines, 2009). The statistics about housing facilities are skewed to the extent that a number of disparities are a reality. Statistics have shown that a majority of those in the middle class are ever willing to change to better housing facilities aimed at conserving the environment. This can also be said for the elder people. The only issue that has to be dealt with in so far as introduction of the eco-friendly flat-pack housing facilities is concerned has all to do with knowing the number of people who would be willing to shift to the hosing facilities that are to be introduced in the market. Though the market share for the eco-friendly facilities are basically at zero, it would be in crucial to determine how many of the people would be willing to adapt to the new facilities (McDonald, 2007). Market share for the housing facilities SWOT analysis One of the major strengths is that people in Switzerland are environmentally conscious. This makes it easier for one ton introduce a concept in the market and have the people adapt to it as appropriate. Consequently, the environmental policies lay emphasis on the need of people to protect and conserve the environment. Consequently, the housing market is vibrant with many people constantly seeking opportunities to have housing facilities that are eco-friendly. The eco-friendly flat-pack facilities are easy to assemble to the extent that it would so much attract the attention of the people who have the intentions to have new housing facilities. A weakness that is rather obvious is the fact that not so many people are alive to the flat pack housing facilities. While a number of people are aware of the green housing facilities, it is clear that not many have the knowledge concerning the flat pack elements. A number of opportunities laid bare all across the Swiss nation. There is a possibility of new markets coming up as a result of introducing the housing facilities in the market. On the other hand, there are few places where the flat pack facilities are established and this could be a serious challenge to the upcoming business. On the other hand, there are a few people who have the expertise and the relevant knowledge on how to fix the flat pack facilities. This is a serious challenge that the new business will face to a larger extent. Threats are eminent from all directions in the housing sector. Case in point is that of late, a number of companies have initiated programs that will ensure that different the flat pack facilities are introduced into the market. This trend will bring about intense competition for the new business. The fact that the other companies are well established will pose a serious competitive challenge to the business in so far as introduction of the new facilities in the market is concerned. PEST analysis The government has in the recent past supported initiatives aimed at bringing about environmentally friendly housing entities in the market. Though, the government has done a little bit of enhancing the possibilities in the housing industry, there have been a lukewarm embracement of the green houses in the Swiss nation. The government offers tax reprieve to people who have the will to bring some green facilities in the market (Organization for Economic Co-operation and Development, 2010). To this end, the government has to some extent helped tremendously in supporting the housing facility in the country and it is hoped that more will change with the commitment of the government to support different initiatives aimed at bringing about better eco-friendly housing facilities. Switzerland is by far one of the countries in Europe that has got a stable economic system. The monetary value in the Swiss nation is very strong and has a better track record against other world currencies. The economy of the country will be of great value to the business. It therefore means that the newly to be introduced business will find it easy to make ends meet in the housing sector. Consequently, borrowing from banks and other financial institutions will be relatively easier. Under normal circumstances, where there is low economic value preposition, the financial institutions give loans on high interests hence making it difficult to borrow. The social nature of the Swiss cannot be overemphasized. Men and women in Switzerland like better housing facilities. None of the people either from the middle class or higher life would wish to live in houses that are not of substance (Banfi, 2008). In fact a majority of the people stay in posh housing facilities. Moreover, a number of the people stay in the eco-friendly houses and this is a huge advantage. In the modern dispensation, there are a number of technological advances that have been witnessed over time especially in the housing industry in Switzerland. Different technological advances continue to dominant the housing sector and this will be an advantage for the business entity. In the event that the business is able to find an appropriate technology for the flat-pack facilities, it will be easy to develop the appropriate materials capable of ensuring that the facilities are up to the necessary technological standards (Petitpierre, 2004). Market mix for the business to be established Price an important factor to consider before going into the market. For this reason, the business enterprise will develop a price penetration strategy that will ensure that the housing facilities fare well in the market. Even though the prices will be set to some affordable levels, the prevailing market prices will be checked to some extent. Competitive advantage of the prices will be key in ensuring that the business does not suffers loses once it is established. The business will, however review the prices occasionally to ensure that the sales objectives are met as appropriate. Promotion is very essential for any business entity. This is the only way through which people can get to know the existence of an enterprise and the various dealings. To this end, the business will seek to employ various forms of advertisements to ensure that a majority in the nation knows the business operations. Case in point is that the business will employ the use of the mainstream media such as Television and radio in order to ensure that the many people are reached. On the other hand, billboards will be placed in strategic places to ensure that people are able to read the details of the business. Social media will be used as a means of reaching a diverse range of audiences throughout the nation (Codita, 2011). The product that is the eco-friendly flat pack facilities will be designed to have some unique features able to appeal to the customers. The different flat-packs that are to be made will be designed to reflect on the theme of ensuring that the nation adopts the grain facilities to ensure there is no environmental degradation. Coming up with enhanced products will ensure that the customer’s loyalty is enhanced to a greater extent (Codita, 2011). Accessibility is one of the most critical entities that consumers consider before they can have a product. It is important for businesses to set up bases where customers are able to access with relative ease. For the housing facilities to be built, the business will ensure that accessibility to the facilities do not have barriers (Codita, 2011). Market segmentation The purpose of segmentation in a given market is scale down on a particular place for the sake of enhancing the business (McDonald & Dunbar, 2012). Market segmentation can be done for a particular place based on the profitability rate of the place.in this case, the program will be spread all across Switzerland. The major cities in the region will be the focus of attention. This initiative, the business will have a market base that is wide and diverse. On the other hand, the segmented market will be drawn in a manner that they are of essence to the business entity. Target market The middle class and the elder are some of the people who seek green houses. It is critical to note that a number of people have gotten used to the traditional or conventional houses not to mention the green housing facilities (Mandell and Wilhelmsson, 2011). The eco-friendly flat pack facilities are not yet rife in the market. To ensure that beats its objective concerning the targets, those planning to own homes for the first time will be considered as potential customers for the business (Laroche et al, 2005). On the other hand, the different organizations in the country that would be willing to put up the eco-friendly houses will be targets to ensure that the business meets its sales objectives. Target market in percentages Conclusion Eco-friendly housing facilities are one of the best ideas for dealing with environmental degradation in the housing sector. Switzerland has a number of green housing facilities though there is a huge gap in the market in so far as eco-friendly flat-pack is concerned. The introduction of the new facilities will bring about diversity in the market. The business will depend on its strengths and opportunities while trying to counter the weaknesses. On the other hand, the PEST analysis records will be verified appropriately before the business is initiated. All these will ensue after some serious market research. Market segmentation and target group will be of essence in the business startup. Recommendations Due to the fact that the business is totally new in the market not to mention the product to be introduced in the market that is eco-friendly flat pack housing facilities, the following are recommended: The business takes up initiatives to carry out proper market survey to establish the exact gaps in the market (Bangs, 2002). Come up with a business plan that entails all the things that are supposed to be established. Ensure that the business is quite within the levels for which profits can be made. Develop strategies that will ensure that the business lives up to its expectations Market the flat-pack housing facilities to attract the attention of the majority in Switzerland. Research and planning Journal Date Source Citation information Main information Referenced (N/Y) Comments 19/04/2014 Bangs, D. H. Information used for planning Y Helped in coming up with the recommendations 19/04/2014 Banfi, S., M. Farsi, M. Filippini, and M. Jakob Determines the responsiveness of people wishing to have the energy residential houses Y Pest analysis 20/04/2014 Gaan, N. Marketing mix Y The source helped in analyzing the market mix. 20/04/2014 Hawthorne, C., Stang, A., & Exhibition. Climate Change issues Y Used in the introduction of the paper 20/04/2014 The green house Y Helped in drafting market research 21/04/2014 Kocsis, A. B. Guide to eco-friendly housing Y Used in the introduction 21/04/2014 McDonald, M. Preparing a marketing plan Y Used in the market research 21/04/2014 Mandell, S. and M. Wilhelmsson Paying for sustainable eco-friendly housing Y Target market analysis 21/04/2014 McDonald, M., & Dunbar, I. Market segmentation Y Used in writing the market segmentation part 21/04/2014 Müller, A. Swot analysis Y Used in market analysis 21/04/2014 Laroche, M., J. Bergeron, and G. Barbaro-Forleo Targeting consumers Y Analysis of the target market 21/04/2014 Journal Economic prospects Y Used in the analysis of economic prospects in Switzerland 22/04/2014 Petitpierre, A. Environmental law in Switzerland. Y Used in the pest analysis section 22/04/2014 Runde, T.P. and S. Thoyre Sustainable green housing Y Used in the introduction of the paper 22/04/2014 Wiid, J, & Diggines, Marketing research Used in analysis of the market research References: Bangs, D. H. (2002). The market planning guide: creating a plan to successfully market your business, product, or service. [Chicago], Dearborn Trade Pub. Banfi, S., M. Farsi, M. Filippini, and M. Jakob. (2008). Willingness to Pay for Energy-saving Measures in Residential Buildings. Energy Economics, Vol, 30, 503–16. Codita, R. (2011). Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe. Wiesbaden: Gabler. Gaan, N. (2008). Climate change and international politics. New Delhi: Kalpaz. Hawthorne, C., Stang, A., & Exhibition. (2005). The green house: New directions in sustainable architecture; [accompanies an exhibition held at the National Building Museum in Washington DC]. New York, NY: Princeton Architectural Press. Kocsis, A. B. (2010). The complete guide to eco-friendly house cleaning: everything you need to know explained simply. Ocala, Fla, Atlantic Pub. Group. McDonald, M. (2007). Marketing plans: how to prepare them, how to use them. Oxford, Butterworth-Heinemann. Mandell, S. and M. Wilhelmsson. (2011). Willingness to Pay for Sustainable Housing. Journal of Housing Research. Vol.20, 35–51 McDonald, M., & Dunbar, I. (2012). Market segmentation how to do it and how to profit from it. Chichester, John Wiley & Sons. Retrieved from http://search.ebscohost.com/login.aspx? direct=true&scope=site&db=nlebk&db=nlabk&AN=490585. Müller, A. (2011). "Biopetrol": A swot analysis of non-fossil fuels for cars within Europe. München, GRIN Verlag GmbH. Retrieved from http://nbn-resolving.de/urn: nbn: de: 101:1- 20110822115. Laroche, M., J. Bergeron, and G. Barbaro-Forleo. (2005). Targeting Consumers Who are willing to Pay More for Environmentally Friendly Products. Journal of Consumer Marketing, 503–20. Organization for Economic Co-operation and Development. (2010). Switzerland. Washington: Organization for Economic Cooperation & Development. Petitpierre, A. (2004). Environmental law in Switzerland. The Hague: Kluwer. Runde, T. P. and S. Thoyre. (2010). Integrating Sustainability and Green Building into the Appraisal Process. Journal of Sustainable Real Estate, Vol, 2, 221–48 Wiid, J, & Diggines, C. (2009). Marketing research. Lansdowne, Cape Town, Juta. Read More