Case Code : CLSM020
Publication date : 2005
Subject : Services Marketing
Industry : Real estate and housing
Length : 04 Pages
Price : Rs. 100
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Housing Market, Active Adult Community, Pulte Homes, Home Builders, Del Webb, Segmentation, Customer Needs, Sun City, Age-Restricted Communities, Baby Boomers, Sun City Grand, Country Club Lifestyle, Solera, Positioning, Corte Bella, Anthem
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The caselet gives an overview of the housing market in the US. It talks about Pulte Homes, a leading home builder in the US. In 2001, Pulte Homes acquired Del Webb, the market leader in 'active adult communities' homebuilding segment. The caselet provides details about Del Webb's segmentation of the housing market, with a focus on the adult segment. Finally, it examines various service offerings of Del Webb catering to various segments of 'active adult communities'.
Analysts attributed this growth in the demand for housing to the increase in the number of immigrants and the fall in mortgage rates. The demand from immigrants constituted nearly 8% of the total new home market and 11% of the existing home market during 1998-2001.
Another major factor that contributed to the continued growth was the interest shown by the baby boomers (numbering 50 million) in purchasing new homes that would provide them with a resort-like lifestyle...
Questions for Discussion:
1. What were the reasons that led to the increase in demand for 'active adult communities' in the US real estate industry? What should a company like Pulte Homes do to identify the evolving needs of their customers?
2. Do you think that Pulte Homes has selected the right segment to target? If so, why? Evaluate the STP marketing strategies adopted by Pulte Homes.