Marketing - BUSN 319 - Final-Course Project

Running head: J & J CUSTOM HOME BUILDERS MARKET PLAN 1
J & J Custom Home Builders Market Plan
Gagandeep Bedi
Professor Heather Teague
DeVry University
BUSN 319
March 27, 2016

J & J CUSTOM HOME BUILDERS MARKET PLAN 2
Table of Contents
1) Executive Summary.............................................................................................................................. 4
2) Company Description ........................................................................................................................... 5
3) Strategic Focus and Plan....................................................................................................................... 6
Mission/Vision Statements.................................................................................................................... 6
Mission Statements .......................................................................................................................6
Vision Statements .........................................................................................................................6
Goals ..................................................................................................................................................... 6
Financial........................................................................................................................................6
Nonfinancial..................................................................................................................................7
Core Competency and Sustainable Competitive Advantage................................................................. 7
4) Situation Analysis................................................................................................................................. 8
SWOT analysis ..................................................................................................................................... 8
Internal Strengths and Weaknesses: Management, Offerings, Marketing, Personnel, Finance,
Manufacturing, and Research and Development (R & D)............................................................8
External Opportunities and Threats: Consumer/Social, Economic, Technological, Competitive, and
Legal/Regulatory................................................................................................................................... 9
Industry Analysis .......................................................................................................................................... 9
Competitor Analysis ................................................................................................................................... 10
Customer Analysis...................................................................................................................................... 11
5) Market-Product Focus.........................................................................................................................11
Marketing....................................................................................................................................11
Product Objectives......................................................................................................................12
Target Markets............................................................................................................................12
Points of Difference ....................................................................................................................13
Positioning ..................................................................................................................................13
6) Marketing Program............................................................................................................................. 14
Product Strategy..................................................................................................................................14
Price Strategy ...................................................................................................................................... 14
Breakeven Analysis for ..............................................................................................................15
J& J CUSTOM HOME BUILDERS ..........................................................................................15
See the Breakeven Analysis Data is shown in Appendix D .......................................................15
Place (Distribution) Strategy............................................................................................................... 16
Promotion Strategy ............................................................................................................................. 16

Promotional Campaign...............................................................................................................17
7) Financial Data and Projections ........................................................................................................... 19
Past Sales Revenues............................................................................................................................19
Five-Year Projections.......................................................................................................................... 20
8) Organizational Structure..................................................................................................................... 20
9) Implementation................................................................................................................................... 21
10) Evaluation and Control.......................................................................................................................22
Possible Deviations............................................................................................................................. 22
Possible Solutions ...............................................................................................................................22
Appendix A - SWOT analysis definition....................................................................................................... 25
Internal Forces..................................................................................................................................... 25
 Strong market stance adds an aggressive edge ...................................................................25
 Establishes an mid to upper-income position......................................................................25
 Attention on operational proficiency contributes to improvement in margins ...................25
Weaknesses......................................................................................................................................... 25
 Lawsuits might blacken company’s name ..........................................................................25
 J & J Custom Home Builders relies on subcontractors for building of homes ...................26
 High financial influence contributes to increased business risks........................................26
External Forces ................................................................................................................................... 26
Opportunities...............................................................................................................................26
 Growing immigrant population is likely to provide a demand for housing........................26
 The developing housing building industry in Houston, Texas...........................................26
 There is a rising demand for green buildings .....................................................................26
Threats................................................................................................................................................. 27
 A weakening in the growth rate of global real estate management and development
industry .......................................................................................................................................27
 Intense competition might lead to a decline in revenue and margins .................................27
 Governmental rules may increase construction costs .........................................................27
Appendix B - Segmentation list................................................................................................................... 28
Appendix C - Price Strategy......................................................................................................................... 29
Appendix D - Breakeven Analysis................................................................................................................ 30
Appendix E - Segmentation list Promotional Campaign............................................................................. 31
11) References........................................................................................................................................... 37

1) Executive Summary
J & J Custom Home Builders has established an office in the Houston market, since the
Dallas housing market has been on a steady decline for years. J & J Custom Home
Builders anticipates great demand for their homes in Houston, Texas, and the research
shows that the target market would like to buy a custom built home. J & J Custom Home
Builders is also involved in developing their product line into Houston, Texas with new
innovated floor plans to draw in potential customers. The framework of this market
proposal is designed to demonstrate how J & J Custom Home Builders will market the
company, and the various types of analysis needed to enter the Houston market. J & J
Custom Home Builders foresees achieving its mission and vision statement. J & J
Custom Home Builders will strive to be the leading custom home builder in Houston, and
be an inspiration to customers by helping them achieve their desire in choosing a well-
designed custom built home. J & J Custom Home Builders has a list of financial and non-
financial goals that it wants to achieve within a five year time period. J & J Custom
Home Builders understands that its competitors have been operating in the Houston
housing industry for many years, and will face some challenges to gain a market share
into the Houston housing industry. J & J Custom Home Builders fundamental principle is
to attain a competitive advantage, and deny the same advantage to its competitors. J & J
Custom Home Builders has a set fundamental principle to help them offer a high quality
product that will make its product more noticeable than its competition.
J & J Custom Home Builders has assessed the position of the business both internally and
externally, and also has conducted an environmental study which has helped to focus
attention on social, economic, technological, competitive, and regulatory forces. J & J

Custom Home Builders has identified both the positive and negative trends and has built
a strategy to counter-balance the environmental study. J & J Custom Home Builders has
identified their Potential Customers as single individuals, married couples, with families,
move up customers, and customers who have an income from $195,000 to $1,000,000+. J
& J Custom Home Builders has provided a procedure for handling issues that do not go
as planned, and they have identified their break-even point and how they will reach it.
The current marketing situation has been very open to J & J Custom Home Builders high
quality products, and is looking to gain a foot hold in the Houston housing industry.
2) Company Description
J & J Custom Home Builders is a custom home builder that uses new construction, and
new design techniques, such as AutoCAD Rivet to model customer’s homes, closed
celled spray-foam insulation, Energy-efficient windows, Energy-Efficient Lighting,
Flexible Plumbing, Energy Star appliances, and Heating, Cooling and Fresh-Air
Management, to enhance the home-owning experience. This has resulted in having more
individual, cooperative, and an empowered feeling from our homebuyers. J & J Custom
Home Builders continually pushes the limits of what’s possible in homebuilding, and this
has propeled them to become the 4th largest private home builder in 2015 with sales
reaching over ten million dollars in the Dallas area. In order to expand their business,
they have decided to expand into the Houston housing market.

3) Strategic Focus and Plan
J & J Custom Home Builders is comprised of an enthusiastic team who brings growth to
our communities by maintaining existing companies in the community, and assisting our
clients in making their ideas become a reality.
Mission/Vision Statements
Mission Statements
J & J Custom Home Builders, Inc. mission is to deliver the highest-quality
workmanship conceivable; and, the way we will accomplish this mission is by
using reliable subcontractors, and by providing our staff with a solid work
environment. It is our desire for remaining up-to-date with cutting-edge
innovations within the housing industry, while being responsive to the
environment.
Vision Statements
J & J Custom Home Builders, Inc. is an enthusiastic team determined to bring
growth to our communities by maintaining existing companies, and assisting our
clients in making their ideas become a reality.
Goals
Financial
 To gain a market share of 20% during the first five years.
 To keep track of expenditures and find innovative ways to reduce cost
to build a home so that they remain competitive.

 To evaluate how much is spent on advertising and determine the most
effective ways to spend money on the market plan.
Nonfinancial
 To achieve a 100% of customer satisfaction.
 Keeping customers satisfied provides the opportunity for repeat
business. Satisfied customers are more likely to tell their friends or
associates about the positive experience they had. This would generate
additional customers.
 To introduce various types of architectural designs into the Houston
housing market.
Core Competency and Sustainable Competitive Advantage
J & J Custom Home Builders strives to achieve its core competencies defined below,
which will help them to be more competitive in the Houston housing market. Their core
competencies are the following:
1. Always offering a high-quality product so their name gets associated
with high-quality homes.
2. J & J Custom Home Builders will develop a list of A+ suppliers,
vendors, and manufactures for a quicker turnaround time for the
delivery of materials.
J & J Custom Home Builders can have a sustainable competitive advantage over its rivals
by developing strong ties with their suppliers and vendors.

4) Situation Analysis
SWOT analysis
SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a
framework for classifying and examining the internal and external influences that
can have an effect on the sustainability of a project, product, place or person.
Internal Strengths and Weaknesses: Management, Offerings, Marketing, Personnel, Finance,
Manufacturing, and Research and Development (R & D)
SWOT analysis
Internal
Forces
Strengths Weaknesses
Strong market stance adds an
aggressive edge.
Lawsuits might blacken company’s name.
Establishes a mid to upper-income
position.
Reliant on subcontractors for
the building of homes.
Attention on operational proficiency
contributes to an improvement in
margins.
A high financial influence contributes to
increased business risks.
External
Forces
Opportunities Threats
A growing immigrant population is
likely to provide a demand for
housing.
A weakening in the growth rate of global
real estate management and development
industry.
The developing housing building
industry in Houston, Texas.
Intense competition might lead to a decline
in revenue and margins.
There is a rising demand for green
buildings.
Governmental rules may increase
construction costs.
The SWOT analysis definition is shown in Appendix A
Opportunities of the future
There are many opportunities for J & J Custom Home Builders in the Houston housing
market.
1. The immigrant population in Houston, Texas continues to grow, which will
provide J & J Custom Home Builders with a steady source of customers, and
tend purchase homes in the same subdivisions.

2. J & J Custom Home Builders is looking to exploit new green tech as it
becomes available so that they maintain a competitive edge over their rivals.
External Opportunities and Threats: Consumer/Social, Economic, Technological, Competitive, and
Legal/Regulatory
Environmental Scan
Environmental
Force
Positive Trends Negative Trends
Social When people are looking for a new
house some people look for the quality
of the education available for their
children.
If people are in low-paying or dead-end
jobs it is likely they will not be able to
pay for the basic necessities.
Economic Personal income levels are vital in the
valuation in buying real estate.
When mortgage rates rise the housing
sales falls.
Technological When a realtor list a home on the
Internet it gives the average home a
deep penetration into the local
marketplace, thus accelerating “the
pace of home sales” (Schroder, 2016).
Using new technology can be more
expensive.
Competitive “Firms strive to secure a competitive
advantage over their rivals”
(Articles.bplans.co.uk, 2016).
In the housing market there is a lot of
competitor rivalry especial on the price
of a house.
Regulatory When people are looking for a new or
a used home they will look at the
demographics of the area such as
school test scores to see what
percentage finish and go on to college.
The ratio of students to teachers are
vital factors in determining the quality
of schools.
In many states, the housing market is
affected by the local taxes which can
have an effect on the supply and demand
for homes in certain areas that people are
looking to move into.
Industry Analysis
The new home market in Houston, Texas continues its strong performance in the fourth
quarter of 2015, “with builders starting construction on 6,591 new homes,” (News, 2015)
and there has been a 7.3% increase from the fourth quarter of 2013. According to
Houston Association of Realtors, "In January, existing home sales totaled 3,454. That is
up 3.8 percent from the same month last year. The average sales price climbed 8.1

percent year-over-year to $242,220 while the median sales price rose 7.4 percent to
$175,000” (www.yourwoodlandsnews.com, 2016).
Competitor Analysis
The Houston housing market has many competitors such as Toll Brothers, Meritage
Homes, Lennar, Darling Homes, Beazer Homes, David Weekley Homes, Ryland Homes,
Plantation Homes, and many more. These companies offer many different floor plans and
numerous selections to choose from. There are many different options & upgrades that
can be used to personalize a client home from each of these builders. The Houston
housing industry presents J & J Custom Home Builders with several positive
opportunities to enter the Houston market:
1. As a designer and builder of green homes in the Dallas Texas area, J & J
Custom Home Builders has steadily noticed arise in the demand for
affordable home in Houston Texas.
2. J & J Custom Home Builder will use environmental friendly products
whereas their competitors may not (i.e. future lawsuit).
3. Federal Deposit Insurance Corporation views J & J Custom Home
Builders favorably by allowing them to acquire distressed residential
communities worth near one billion dollars.
4. J & J Custom Home Builders can easily access low-cost capital due to the
strength and transparency of their balance sheets, and they have also
created associations with the banking industry and capital markets.
There are many competitors that offer the same type of product to the single, married, the
well-educated, and couples who are looking to have kids or raise their kids in a good

community. J & J Custom Home Builders will have to offer discounts, promotional
upgrades, and competitive prices so they can attract the consumers who are looking to
build new homes in the Houston area.
Customer Analysis
The customers of J & J Custom Home Builders will be anyone who is looking to build a
new home in the Houston area, and the customers will represent single, married families
who are raising kids, and well-educated individuals whose salaries annually range from
$40,000 and up a year.
5) Market-Product Focus
This section describes J & J Custom Home Builders marketing and product development
for the Houston area, and it also provides information regarding the marketing and
product objectives, target markets, points of difference, and positioning for J & J Custom
Home Builders.
Marketing and Product Objectives
Marketing
J & J Custom Home Builders strategy is to fill a void between inexpensive, and the most
expensive homes on the market by targeting the single, married, the well-educated, and
for people who are looking to have kids or raise their kids and income category, a group
that values technology and the outdoors and the environment they live in. J & J Custom
Home Builders will use a design-build approach, where they will design a home to fit a
customer’s budget and then build it.

As changes occur during construction, J & J Custom Home Builders will adjust the
design, products, as necessary to make sure the primary budget is upheld. J & J Custom
Home Builders intends to use several non-traditional, environmentally-sound materials
and methods to strive for the highest energy efficiency, and use a design approach to
maximize energy efficiency and functionality.
Product Objectives
Builders will take pride in the principles by which J & J Custom Home Builders run its
business, and build its homes. While J & J Custom Home Builders anticipate a growing
demand for our product and services, we will maintain our mission to produce the
highest-quality workmanship possible; and the way we have achieved this is by using
trustworthy subcontractors and by maintaining a solid work environment.
Target Markets
J & J Custom Home Builders will primarily pursue the people who are looking to build a
new home, and commercial construction projects in Houston, Texas which has continued
to grow for many years. (See segmentation list shown in Appendix B). J & J Custom
Home Builders has a unique offering of 100% ENERGY STAR certified appliances.
Which are twice as energy-efficient as the traditional homes that are of the same size.
J & J Custom Home Builders offers many money-saving features:
1. Uses a closed celled spray-foam insulation
2. Energy-efficient
 Windows
 Lighting

 LED bulbs.
3. Flexible Plumbing
4. Heating, Cooling and Fresh-Air Management
o Merv 8 to 13 Air Filtration
o Pressure-Balancing Enhanced Air Flow
o Minimum Seer 14 HVAC
o Fresh-Air Management
5. ENERGY STAR appliances
The average homeowner will save approximately $50,000 over his or her 30-year
mortgage by using energy-efficient windows, energy-efficient heating and cooling
system, by using ENERGY STAR appliances that use less water and energy.
Points of Difference
Market Segments of
Potential Customers
Points of Difference New ideas for the product
Single people Green design. Closed celled spray-foam
insulation.
Married couples Reduce radon emissions. Radon Gas Testing and
Mitigation.
With Families Different lot choices that are
available.
Some of the communities are
gated and located near top
school districts.
Move up customer bigger selection of floor plan innovative floor plan
anyone who has the
income from $195,000
to $1,000,000+
Many types of floor plan that
people can choose from.
Integrate technology into the
home.
Positioning
J & J Custom Home Builders would like to offer extraordinary homes to its customers for
their pleasure for many years to come. J & J Custom Home Builders has many base
models that can be modified to meet the customer’s expectations and desires. J & J

Custom Home Builders prefers to be acknowledged as a company that fulfills our
customers’ wishes to improve our customers’ lives.
6) Marketing Program
Product Strategy
J & J Custom Home Builders is a contractor focusing in providing quality,
comfortable, and affordable homes for the buyer who are concerned about the
environment, the future, and streamlining the way they live. J & J Custom Home
Builders blends sustainable construction methods, and renewable energy sources
to form a systems approach to home design in the Houston area.
Price Strategy
J & J Custom Home Builders uses a simple formula to compute how much to
charge for different types of homes they build.
Square-foot home * Price/Square Feet = Home price
For example: 2,400 sq. ft. * $ 120 = $ 240,000
Home price / Square-foot home = Price/Square Feet
For example: 240,000/2,400 = $ 120
(See segmentation list shown in Appendix C).

Breakeven Analysis for
J& J CUSTOM HOME BUILDERS
Parade of Homes Sales for the month of
September 2016
SALES
AVGRAGE SALES PRICE $911,087.70
SALES VOLUME PER PERIOD
(UNITS) 100
TOTAL SALES $91,108,770.00
VARIABLE COSTS
COMMISSION PER UNIT $3,000.00
DIRECT MATERIAL PER UNIT $100,000.00
SHIPPING PER UNIT $40,000.00
SUPPLIES PER UNIT $1,500.00
OTHER VARIABLE COSTS PER
UNIT $500.00
VARIABLE COSTS PER UNIT $145,000.00
TOTAL VARIABLE COSTS $14,500,000.00
UNIT CONTRIBUTION MARGIN 766,087.70
GROSS MARGIN $76,608,770.00
FIXED COSTS PER PERIOD
ADMINISTRATIVE COSTS $1,200.00
INSURANCE $500.00
PROPERTY TAX $150.00
RENT $800.00
OTHER FIXED COSTS $750.00
TOTAL FIXED COSTS PER PERIOD $3,400.00
NET PROFIT (LOSS) $76,605,370.00
See the Breakeven Analysis Data is shown in Appendix D
($20,000,000.00)
$0.00
$20,000,000.00
$40,000,000.00
$60,000,000.00
$80,000,000.00
$100,000,000.00
0 10 20 30 40 50 60 70 80 90 100
DOLLARS
SALES VOLUME (UNITS)
Breakeven Analysis Chart
FIXED COSTS PER PERIOD TOTAL COSTS TOTAL SALES NET PROFIT (LOSS)
$3,000.00 , 2%
$100,000.00 ,
69%
$40,000.00 ,
28%
$1,500.00 , 1%
$500.00 , 0%
Variable Costs per Unit
COMMISSION PER UNIT DIRECT MATERIAL PER UNIT
SHIPPING PER UNIT SUPPLIES PER UNIT
OTHER VARIABLE COSTS PER UNIT
$145,000.00 ,
16%
766,087.70 ,
84%
Unit Contribution Margin
VARIABLE COSTS PER UNIT UNIT CONTRIBUTION MARGIN

Place (Distribution) Strategy
J & J Custom Home Builders manufacturing network consist of contracted suppliers,
vendors, and subcontractors who supply the necessary materials for the contracted home.
J & J Custom Home Builders fixed costs are approximately $80,000 per year, and they
have to factor in approximately five to ten percent for all the supplier and vendors. They
have also had to factor the subcontractor’s labor, loan payments, equipment costs, and
selling and administrative costs into the cost of the home.
J & J Custom Home Builders uses the following formula, to calculate the break-even
point for J & J Custom Home Builders:
((Suppliers/vendors)*5% to 10%) + ((subcontractor labor cost)*2% to 5%)) = price of the house
Promotion Strategy
J & J Custom Home Builders will use direct and digital marketing, sales promotion, and
advertising to promote their home designs in the Houston market. These networks are
vital to J & J Custom Home Builders, and they allow J & J Custom Home Builders, to
lessen capital requirements, and provide a faster access to established distribution
networks. The overall marketing plan for J & J Custom Home Builders is created on the
following:
 J & J Custom Home Builders wants to target consumers who are
looking for new homes in the Houston market.
 To capture a piece of the Houston housing market over a fixed period
of time.

 The distribution channels that J & J Custom Home Builders plans to
use so that they can reach the different Houstonian markets is the
following: television, radio, sales associates, and mail order.
J & J Custom Home Builders wants to capture 20% of the housing market over the next
three years, and has created a promotional campaign. J & J Custom Home Builders is
aggressively dedicated to a widespread promotional campaign, and it has set two
important sales goals, as follows:
1. To attract home buyers who are looking or renting apartments, first
time home buyers, families with kids, families who want to raise their
child in one of the tops ranking school district, and people with pets.
2. To draw experienced sales personnel who have a desire to be
successful.
Promotional Campaign
J & J Custom Home Builders has created a few promotional programs that sales
personnel can use to entice the home buyers to buy one of their homes instead one of
their competitors, and will use special offers, military discount, refer a friend, and realtors
party. J & J Custom Home Builders will use a wide range of promotional strategies such
as hiring experienced realtors, using the Internet media, paid advertising, events, printed
materials, direct mail, limited-time-only promotion and a staged home will help to them
promote their green home designs to the Houston home buyers. (See Promotional
Campaign list shown in Appendix E).

Sales promotion schedule
January February March April May June July August September October November December
Sales promotions
Direct marketing
Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail Bulk mail
Email Email Email Email Email Email Email Email Email Email Email
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Personalized
letters
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays
Point of sale
displays Point of sale displays
Point of sale
displays
Point of sale
displays
Digital marketing
Company websites Company websites Company websites Company websites Company websites Company websites Company websites
Company
websites Company websites Company websites
Company
websites Company websites
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
Social media -
Facebook
YouTube YouTube YouTube YouTube YouTube YouTube YouTube YouTube YouTube YouTube YouTube YouTube
Advertising
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Outdoor banner
and flags
Business directories Business directories Business directories Business directories Business directories Business directories Business directories
Business
directories Business directories Business directories
Business
directories Business directories
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers
Magazines /
newspapers Magazines / newspapers Magazines / newspapers
Magazines /
newspapers
Magazines /
newspapers
TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema TV / cinema
Radio Radio Radio Radio Radio Radio Radio Radio Radio Radio Radio Radio
Offers by J & J Custom Home Builders
Special offers
$10,000 off $10,000 off $15,000 off $15,000 off $20,000 off $20,000 off $25,000 off $25,000 off $25,000 off $30,000 off $30,000 off $35,000 off
$1,000 towards the
buyers closing cost
$1,000 towards the
buyers closing cost
$1,000 towards the
buyers closing cost
$2,000 towards the
buyers closing cost
$2,000 towards the
buyers closing cost
$2,000 towards the
buyers closing cost
$2,500 towards the
buyers closing cost
$2,500 towards
the buyers
closing cost
$2,500 towards the buyers
closing cost
$3,000 towards the buyers
closing cost
$3,000 towards
the buyers
closing cost
$3,000 towards the
buyers closing cost
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$2,000 off if
they use Bank
of America
$3,000 off if
they use Bank
of America
$3,000 off if
they use Bank
of America
$3,000 off if
they use Bank
of America
Military discount
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military personal
15% off to all
working
and retired
military
personal
15% off to all working
and retired
military personal
15% off to all working
and retired
military personal
15% off to all
working
and retired
military
personal
15% off to all
working
and retired
military personal
Parade of Homes upgrades
upgraded paint upgraded paint
Standard Edge Granite in
Kitchen
Standard Edge Granite in
Kitchen
Free $1,500 Tile
Backsplash Allowance,
Free $1,500 Tile
Backsplash Allowance,
Free Soft Close Wood
Dove Tail Drawers with 5
Piece Front
Free Soft Close Wood
Dove Tail Drawers with 5
Piece Front
Realtors incentives
Inventory home $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
contracted client $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,500 $4,500 $4,000 $4,000

7) Financial Data and Projections
Past Sales Revenues
Twelve Months Ended October 31, Nine
Months
Ended
July 31,
20152010 2011 2012 2013 2014
Earnings
(loss):
Income (loss)
before income
taxes $(117,187) $ (29,366) $112,942 $267,697 $504,582 $318,019
Interest
expense 106,997 80,282 90,521 115,238 142,851 98,069
Rent expense 5,528 4,135 3,728 3,658 4,128 3,099
Amortization 1,374 1,347 1,782 2,952 3,639 2,655
$ (3,288) $ 56,398 $208,973 $389,545 $655,200 $421,842
Fixed charges:
Homebuilding
Interest
incurred $ 114,975 $114,761 $125,783 $134,198 $163,815 $117,896
Rent expense 5,528 4,135 3,728 3,658 4,128 3,099
Amortization 1,374 1,347 1,782 2,952 3,639 2,655
$ 121,877 $120,243 $131,293 $140,808 $171,582 $123,650
Ratio (a) (a) 1.59 2.77 3.82 3.41

Five-Year Projections
Forecasted Sales for the next five years
2016 2017 2018 2019 2020
Earnings (loss):
Income (loss) before
income taxes $ 250,187 $ 400,366 $ 550,942 $ 700,697 $ 850,582
Interest expense 56,997 120,282 150,521 115,238 142,851
Rent expense 2,528 4,135 3,728 3,658 4,128
Amortization 2,000 2,347 3,782 2,952 3,639
$ 188,662 $ 273,602 $ 392,911 $ 578,849 $ 699,964
8) Organizational Structure
J & J Custom Home Builders is a family run business which was founded in 1995 in
Dallas, Texas. The chief executive officer (CEO) is Colin Jameson, and he has two sons
Stephen and Roy. Stephen Jameson has a Bachelor of Arts in Business Administration
with a Project Management specialization. Roy Jameson has a Bachelor of Arts in
Management with a General Management specialization. Recently, the daughters of
Stephen and Roy Jameson have joined the J & J Custom Home Builders family. Maddie
Jameson has Bachelor of Arts in Business Administration with a Global Supply Chain
Management specialization; and Ruby Jameson has Bachelor of Arts in Business
Administration with Business Intelligence, Analytics Management, and Accounting
specialization.

9) Implementation
J & J Custom Home Builders is rapidly establishing new marketing associations with
industry forerunners, and pursuing new home sales in the Houston market. J & J Custom
Home Builders market strategy is to capitalize on their relationships by securing land at
market value, and continuously looking for new products and techniques to help lower
overhead expenditures.
J & J Custom Home Builders will adhere to Occupational Safety and Health Administration
(OSHA), the international building code (IBC), and any city or states codes while they are
constructing the customer's home such as scaffolding access for the framework. J & J
Custom Home Builders corporate strategy is devoted to improving the performance of their
critical path of its customers' projects. J & J Custom Home Builders will do this by
structuring the company on its core strengths: innovations, design engineering expertise, and
project and site management. J & J Custom Home Builders customer service philosophy is
ingrained in the organization of the company, which starts at the top and is a critical success
factor. J & J Custom Home Builders customer service can be split into two areas: equipment
and people. J & J Custom Home Builders is on the cutting edge of technology, and this has
enabled them to maintain excellence when it comes to managing their inventory,
shipments/deliveries, damage/loss, and invoicing. J & J Custom Home Builders will deliver a
highly skilled and well- organized labor force. This will guarantee that schedules and
deadlines are met.

10)Evaluation and Control
J & J Custom Home Builders is trying to meet their objectives and goals. In the event the
goals and objectives are unachievable or the original plan does not follow through, J & J
Custom Home Builders will use corrective actions, and preventive measure including
solutions to follow through:
Possible Deviations
 J & J Custom Home Builders has established goals for capturing
20% of the market in a five-year expansion plan. These goals may
take more than five years to achieve.
 J & J Custom Home Builders may face high competition for their
product within the Houston market.
Possible Solutions
 J & J Custom Home Builders needs to develop a five-year plan in
order to devote time to the market plan and get a contribution from
all managers. When the Houston housing market is in a downturn,
J & J Custom Home Builders will have to work with their vendors,
and suppliers to create better designs that can reduce the amount of
waste and speed up construction in the field.
J & J Custom Home Builders use Construction Agreement that provides answers to most
problems that are due to inconsistencies between documents such as incorrect custom
orders, subcontractors working off of an old set of blueprints, additional occurring cost in
the course of construction such as the following: bad soil, termite damage or dry rot,

delays in construction, and well-intentioned mistakes. J & J Custom Home Builders has
solved this by creating a Construction Agreement that helps the project manager
communicate any conflicts between contract documents or delays in construction to the
client.
Incorrect custom orders
J & J Custom Home Builders has clearly defined construction specifications for eliminating
incorrect order. If a custom order was not completed properly, J & J Custom Home Builders has
two options:
1. That they can accept the order the way it is avoiding delays in the
schedule thus pushing back your completion date.
2. J & J Custom Home Builders understand that taking an improper
custom order usually turns into some benefit for the homeowner
because they have to give up something else in return for the
homeowners accepting what they didn't order.
Subcontractors working off of an old set of blue prints
J & J Custom Home Builders has come up with solutions to ensure that contractor have the most
recent plans working while they construct a house; thus eliminating any confusion on which set
of plans is most current, and the final set of plans are noted in Construction Agreement and
responsibility falls on the subcontractor to verify that they have the latest plans.

Delays in construction
J & J Custom Home Builders has an acceptable list of reasons for delays. When major problems
arise, which can impact the project need to be tackled as quickly as possible regardless of whose
mistake. “The biggest sin with construction delays is not talking about the delays because it
allows homeowner fears to manifest and grow,” ("How to Solve Common Construction
Problems", 2016).
Well-intentioned mistakes.
Sometimes carpenters and subcontractors often believe that there is a more efficient way to
complete their task, but unfortunately doing this may deviate from the blueprints. If this happens,
J & J Custom Home Builders has a strict policy that all unapproved alteration must be torn out
immediately at the expense of the subcontractor.
If carpenters and subcontractors have a better way of doing the task quicker, they can approach
the project manager and explain and demonstrate the new technique for J & J Custom Home
Builders approval thus help with the bottom line.

Appendix A - SWOT analysis definition
Internal Forces
 Strong market stance adds an aggressive edge
o J & J Custom Home Builders will hold a leading position, and take advantage
of changes in economic business cycles in the Texas homebuilding industry.
 Establishes an mid to upper-income position
o J & J Custom Home Builders wants to target middle to higher-income clients
such college graduates' who desire new homes over existing construction, and
often want customized floor plans to reflect their personal expression.
 Attention on operational proficiency contributes to improvement in margins
o J & J Custom Home Builders is dedicated on capitalizing on operational
competence by reducing “cycle times, increasing number of floor plans
offered for sale, renegotiated costs, reduced its direct cost by an average of
25%” (Lennar Corporation SWOT Analysis.: EBSCOhost, 2016), and J & J
Custom Home Builders has become cautious when they are purchasing land to
avoid competitive bid situations which can drive the land price over market
value.
Weaknesses
 Lawsuits might blacken company’s name
o Litigation can damage the company's reputation and make it harder to raise
money in the future. It might also tarnish company's image in the eye of the
customer.

 J & J Custom Home Builders relies on subcontractors for building of homes
o J & J Custom Home Builders presently has to depend on subcontractors for its
home construction, as well as in choosing and procuring construction
materials. Therefore, J & J Custom Home Builders does not have any control
over their quality.
 High financial influence contributes to increased business risks
o When interest rates rise, J & J Custom Home Builders net profits decreases
which can lead to the inability to control production-to-cash.
External Forces
Opportunities
 Growing immigrant population is likely to provide a demand for housing
o Over the last few years there has been a large influx of African, Hispanic, and
Asian immigrants moving into the Houston area. This has contributed to the
first-time homebuyer market, and this trend continues to rise which contribute
to J & J Custom Home Builders potential customer base.
 The developing housing building industry in Houston, Texas.
o J & J Custom Home Builders predominantly operates in the Texas area, and
their sales are projected to be $300 million dollars. J & J Custom Home
Builders is looking to expand into neighboring states.
 There is a rising demand for green buildings
Green building design is a universal idea that creates understanding that
the built environment can have profound effects, both positive and
negative on the environment, as well as the people who inhabit buildings

every day. Green building design, “is an effort to amplify the positive and
mitigate the negative of these effects throughout the entire life cycle of a
building” (Kriss, 2016).
o Over the last few years, J & J Custom Home Builders has been incorporating
green building designs into their homes, and this has helped them reduce their
operating costs by 13.6%, and it also has helped increased the home value by
10.9%.
Threats
 A weakening in the growth rate of global real estate management and development
industry
o When real estate and development in the housing industry decrease could
affect J & J Custom Home Builders business undesirably.
 Intense competition might lead to a decline in revenue and margins
o When prices of construction materials go up it can put pressure on J & J
Custom Home Builders bottom line.
 Governmental rules may increase construction costs
o J & J Custom Home Builders has to deal with many complex regulations
which range from “federal, state and local laws and regulations, including
zoning, density and development requirements, building, environmental,
advertising and real estate sales rules and regulations,” (Toll Brothers Inc,
2014)

Appendix B - Segmentation list
Basic of
Segmentation
Segmentation
Variables
Typical Breakdowns
Geographical
Region Houston, United States
City size 656.3 square miles
Statistical area Metropolitan area
Media-television 17 designated market areas
Density 3,515 people per square mile
Demographics
Gender Male, Female
Age 25-50
Race/ethnicity Life
stage
Adults; first-time home
buyers
Birth era Generation X; Boomers II or Generation
Jones
Household size
Never married; married; separated,
divorced; widowed; domestic partner
Income $25,000-$34,999 and up
Education
People who have Associate;
bachelor; master; doctorate Degrees
Occupation
Managerial & professional; technical, sales;
etc.
Psychograrhic
Lifestyle
Blue Blood Estates; Movers & Shakers;
Young Digerati; Money & Brains; New
Empty Nests; Young & Rustic; Greenbelt
Sports
Needs
Quality; service; price/value;
health
Behavioral
Direct marketing
Mail order, Internet, direct response, mass
merchandiser
Product features Situation-specific; general
Awareness/intentions
Unaware; aware; interested; intending to
buy; purchaser; rejection

Appendix C - Price Strategy
J & J Custom Home Builders based model
House Plan Square Feet Price/Square Feet Home's price
Saint Charles 1,950 $ 100 $ 195,000
Venice 2,400 $ 120 $ 240,000
Raven 3,250 $ 140 $ 455,000
The Eagle 3,550 $ 150 $ 532,500
Sophie 4,550 $ 164 $ 746,200
Bellingham 5,000 $ 164 $ 820,000
Richard 6,000 up to 7,000 $ 250 $ 1,500,000
Margaret 8,000 $ 350 $ 2,800,000+
J & J Custom Home Builders based model
House Plan Square Feet Price/Square Feet Home's price
Saint Charles 1,950 $100 $195,000
Venice 2,400 $120 $240,000
Raven 3,250 $140 $455,000
The Eagle 3,550 $150 $532,500
Sophie 4,550 $164 $746,200
Bellingham 5,000 $164 $820,000
Richard 6,000 up to 7,000 $250 $1,500,000
Margaret 8,000 $350 $2,800,000
Total House Price $7,288,700
Total House Price /
House plan $911,088
Avg. Sales Price Per Unit

Appendix D - Breakeven Analysis
SALES VOLUME ANALYSIS:
SALES VOLUME PER PERIOD (UNITS) 0 10 20 30 40 50 60 70 80 90 100
SALES PRICE PER UNIT $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70 $911,087.70
FIXED COSTS PER PERIOD $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00 $3,400.00
VARIABLE COSTS $0.00 $1,450,000.00 $2,900,000.00 $4,350,000.00 $5,800,000.00 $7,250,000.00 $8,700,000.00 $10,150,000.00 $11,600,000.00 $13,050,000.00 $14,500,000.00
TOTAL COSTS $3,400.00 $1,453,400.00 $2,903,400.00 $4,353,400.00 $5,803,400.00 $7,253,400.00 $8,703,400.00 $10,153,400.00 $11,603,400.00 $13,053,400.00 $14,503,400.00
TOTAL SALES $0.00 $9,110,877.00 $18,221,754.00 $27,332,631.00 $36,443,508.00 $45,554,385.00 $54,665,262.00 $63,776,139.00 $72,887,016.00 $81,997,893.00 $91,108,770.00
NET PROFIT (LOSS) ($3,400.00) $7,657,477.00 $15,318,354.00 $22,979,231.00 $30,640,108.00 $38,300,985.00 $45,961,862.00 $53,622,739.00 $61,283,616.00 $68,944,493.00 $76,605,370.00

Appendix E - Segmentation list Promotional Campaign
J & J Custom Home Builders will use Integrated Marketing Communications so that they put out
a consistent message about their green home. This will save their homebuyer’s money.
 Direct and digital marketing
1. Direct marketing
 Bulk mail
 J & J Custom Home Builders uses postal mail for direct mail marketing
campaigns. Sending a postcard to residents of the area in which the homes
are located in, or renter households in a certain income range, could be a
useful supplement to other marketing techniques.
 Email
 J & J Custom Home Builders will develop an e-mail list of contacts from
people who are looking to be homebuyers so that they can send e-mail
“blasts” about new property listings, open houses, and so forth.
2. Digital marketing
 Company websites
 J & J Custom Home Builders will work with the real estate agent’s
website to promote their homes in the areas that they are located.
 Social media applications such as Facebook or Twitter.

 YouTube
 “YouTube.com has become a popular place for video home tours.
They can be as simple as a silent sweep of different rooms or a hosted
tour of the home with the host pointing out key selling features”
(Marketing Strategies and Tools, 2016).
 Advertising
 Outdoor banner and flags
 J & J Custom Home Builders will create large outdoor banners
placed on the front lawn of your homes for sale so that it can
draw attention to them.
 Magazines/newspapers
 Newsletter:
o J & J Custom Home Builders may still find people who
may want to communicate by reading a printed
neighborhood newsletter.
 Magazines / newspapers
o J & J Custom Home Builders plans to use the local
newspapers, magazines and newsletters to create print
media for “home sales might be the weekly real estate
guides that are published by your local Board of
REALTORS® and distributed free in grocery stores
and other retail businesses” (Marketing Strategies and
Tools, 2016).

 TV
 J & J Custom Home Builders tends to use the cable television
stations increases awareness about the product. Television
advertising, because it is a very targetable medium.
 Radio
 J & J Custom Home Builders will use the radio to spread the
news about the green technology that they are using for their
homes, because of the fact that it has a wide range of audiences
and the number of stations.
 Other advertisement
 J & J Custom Home Builders will use billboards to promote
housing developments.
 Listing Sheet:
 J & J Custom Home Builders will work with real estate agents
so that they can create a customized listing sheet that points out
the home’s best features. This can be used by the agent, and
your team as a handout during marketing events.
 Events
 Open houses
o J & J Custom Home Builders will make use of open
houses which are a time-honored method of getting
serious buyers into your home to see the characteristics

of their home firsthand. Interested buyers can also get a
tailored tour from someone experienced at determining
their interests and presenting the benefits most relevant
to them.
 Home Tours:
o J & J Custom Home Builders will partake in Parade of
Homes to showcase their homes to the Houston market.
o Sales promotion
 Special offers
 Up to $30,000 off the list price of constructing a new home.
 Up to $5,000 off if they use Bank of America (BoA).
 J & J Custom Home Builders will pay up to $2,000 towards the buyers
closing costs as long as they use BoA.
 The point of a limited-time-only promotion is to create a sense of
urgency among potential buyers, giving them a reason to act now
instead of later. It can be particularly useful to incentivize the first
buyers in a neighborhood that is considered a little high-risk.
 Military discount
 J & J Custom Home Builders will offer 15% off the base price of a
home to all working and retired military personnel.

 Refer a Friend
 J & J Custom Home Builders has just recently launched the Refer a
Friend program in Houston, Texas. This allows the homeowner or
contracted buyer to earn up to $500 for every contracted buyer.
 Realtors party
 J & J Custom Home Builders often holds a party for the realtor so that
they can inform the realtor on the company standing, and the different
type of home that they offer.
 J & J Custom Home Builders will take professional
photographs of the homes interior and exterior for the web site.
 Produce a personalized flyer/listing sheet on your property.
 J & J Custom Home Builders will create a customized Google
map showing your home’s location with the nearby amenities
such as shopping, entertainment, schools, parks, etc.
 Stage the home for sale
 J & J Custom Home Builders will “Hold open houses for other
agents and potential buyers” ("Home Marketing and Sales
Guide", 2016).
 J & J Custom Home Builders will use social media channels to
promote the home.
 J & J Custom Home Builders will keep a front yard sign with a
flyer box filled with flyers.

 J & J Custom Home Builders will work with real estate agent’s
so that they can create a customized listing sheet that points out
the home’s best features, and can be used by the agent, and
your team as a handout during marketing events.
 The Parade of Homes Promotion
 Free Standard Color
 Standard Edge Granite in Kitchen
 Free $1,500 Tile Backsplash Allowance,
 Free Soft Close Wood Dove Tail Drawers with 5 Piece Front

11)References
Exhibit. (2016). Sec.gov. Retrieved 25 March 2016, from
http://www.sec.gov/Archives/edgar/data/89377/000079417015000043/tols3posasr1ex12.
htm
Houston real estate market kicks off 2015 with gusto. (2016). www.yourwoodlandsnews.com.
Retrieved 25 March 2016, from
http://www.yourhoustonnews.com/woodlands/news/houston-real-estate-market-kicks-
off-with-gusto/article_2f8a8c6c-1915-5609-b727-904a8b303241.html
Kriss, J. (2016). What is green building? | U.S. Green Building Council. Usgbc.org. Retrieved 25
March 2016, from http://www.usgbc.org/articles/what-green-building
Lennar Corporation SWOT Analysis.: EBSCOhost. (2016). Web.b.ebscohost.com. Retrieved 25
March 2016, from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=97748772-20e9-4fe1-b0dc-
9a75b7b4829e%40sessionmgr112&vid=12&hid=130
Marketing Strategies and Tools | Home Marketing and Sales Guide. (2016).
Homesales.stablecommunities.org. Retrieved 6 April 2016, from
http://homesales.stablecommunities.org/promoting-product-benefits/marketing-strategies-
and-tools
News, M. (2015). Market Ends 2014 Strong Even as Oil Prices Plummet - Metrostudy | Housing
Starts Here. Metrostudy | Housing Starts Here. Retrieved 25 March 2016, from
http://www.metrostudy.com/market-ends-2014-strong-even-as-oil-prices-plummet/
Porter’s Five Forces. (2016). Articles.bplans.co.uk. Retrieved 25 March 2016, from
http://articles.bplans.co.uk/marketing-a-business/porter%E2%80%99s-five-forces/328
Toll Brothers, Inc.: EBSCOhost. (2016). Web.b.ebscohost.com. Retrieved 25 March 2016, from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=97748772-20e9-4fe1-b0dc-
9a75b7b4829e%40sessionmgr112&vid=17&hid=130

Grading Rubric for Final Plan Submission
Category % Description
Documentation
& Formatting
5/5% Quality work will include a title page, table of
contents, proper citations, and a reference page in
APA format including at least three references.
Your final marketing plan should be between 10-15
pages.
It must have clearly marked headers for each
section and sub-section of the marketing plan
outline.
Organization
& Cohesiveness
20/20% A quality paper will use the marketing plan
outline in Doc Sharing for its organization.
The content will be properly subdivided into
sections (HEADINGS & SUB-HEADINGS ARE
REQUIRED) that follow the Marketing Plan outline
EXACTLY.
The final plan will include a breakeven analysis.
It will incorporate feedback provided from your
instructor on your Week 4 draft (if applicable).
The executive summary will be added, and should
summarize your plan. It should include the
reasoning you employed in your analysis, as well as
any outstanding conclusions you can reach about
the marketing plan for your chosen product or
service.
Editing 5/5% A quality paper will be free of any spelling,
punctuation, or grammatical errors. Sentences and
paragraphs will be clear, concise, and factually
correct.
Content 70/70% A quality paper will have significant scope and
depth of research to support any statements. A
quality paper will cover all the sections outlined
below (from the Marketing Plan Outline doc). The
content presented must demonstrate an
understanding of the material.
Required Sections FOR FINAL PLAN Include:
 Executive Summary (4%)

 Company Description (2%)
 Strategic Focus & Plan (10%)
 Situational Analysis (10%)
 Market-Product Focus (10%)
 Marketing Program (added break-even
analysis to pricing section) (10%)
 Financial Data & Projections (10%)
 Organizational Structure (2%)
 Implementation (4%)
 Evaluation & Control (4%)
 Bibliography / References (4%)
Total 100/100%
220/220
pts
Overall, you wrote an actionable, strategic marketing plan
developed on sound research and market potential.
GREAT WORK!!

Marketing - BUSN 319 - Final-Course Project

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