The compact, angular shape of the Mercedes Smart Car may not be mainstream, but it sure attracts a crowd. That, and the vehicle's 50-mpg rating and hard-to-get reputation, were behind Lake Oswego, Ore.–based Renaissance Homes' decision to offer a Smart Car to buyers of 29 finished homes scattered among seven area communities. A one-month television and newspaper advertising campaign about the giveaway, including four, 30-second spots during the Super Bowl XLI pre-game show, consolidated the builder's message rather than trying to market the homes separately. The ads also leveraged the cars' fuel efficiency to underscore the builder's in-house Living Green standards for sustainable construction—a message that resonates among Northwest residents.
Working with a local Mercedes dealer that supplied cars for each community's model-home complex on weekends, Renaissance Homes saw sales traffic jump 250 percent during the month of the campaign, launched this past February. Though the initial goal of selling-off standing inventory fell short—only 6 of the 29 Smart Car homes closed escrow by the end of the promotion—overall home sales far exceeded projections. In fact, Renaissance sold a company-record 48 homes that month—thanks to the Smart Car.
ART OBJECT: Renaissance Homes' President Randy Sebastian leveraged the Mercedes Smart Car, labeled by a local dealer as “the most endearing, fun-to-drive, environmentally friendly, and safe micro-car on the planet,” to significantly boost traffic and sales at several Portland, Ore., communities.
“We were literally overrun with people anxious to see the car and our homes,” says Randy Sebastian, Renaissance's president. “The car is an art object that people stop and ask about.” For the half-dozen home buyers who bought Smart Car homes, Renaissance sent them to the Mercedes dealer with a credit amount for a base model, to which they could add options on their own dime.
CAMPAIGN DETAILSProgram: Smart Car giveaway; Builder: Renaissance Homes, Lake Oswego, Ore.; Advertising agency: White, Wykoff & Co., Portland, Ore.; Cost: $150,000 (six cars)
Cooperative Effort
Three divisions of John Laing Homes combine efforts and dollars to spur regional sales.
If you've ever considered—or actually bought—a pair of shoes a size too small because the price was right, you understand what three divisions for Newport Beach, Calif.–based John Laing Homes were trying to counteract when they put their heads and budgets together to combat six-figure discounts being offered by their competitors. The Perfect Fit Living campaign, unveiled in March by the company's three Northern California divisions, promotes the message that the best house is the one that fits lifestyle needs instead of a fire-sale price point. “Other builders had straight retail-type ads offering rock-bottom pricing with ‘buy now or miss out' messages,” says Mark Levens, vice president of sales and marketing for Laing Homes' Sacramento division. “We wanted to get back to selling value.”
With a track record of high customer satisfaction ratings and a wide range of housing at price points from the $250s to $2 million among them, the three divisions were able to hone their message and build a brand for a customized approach to building and selling homes. “We want to know if a buyer even likes the house first, before we talk about enhancements,” says Levens. The new campaign, launched primarily via print ads and billboards, drove prospects to a Web site (www.perfectfitliving.com), which then offered links to Laing Homes communities that matched the buyer's basic parameters for location, home size, style, and price. The concept is being considered for corporate-wide use.
OFF THE CUFF: John Laing Homes poked fun at competitors offering deep sales discounts by sending the message that a home that suits a family's lifestyle—not simply one sold at a bargain-basement price—is actually a better value.
Program: Perfect Fit Living campaign; Builder: John Laing Homes' Northern California divisions (Bay Area, Central Valley, and Sacramento); Advertising agency: EMC Creative, Danville, Calif.; Cost: $1.2 million (six months)
Barn Raising
Oak Leaf Homes is co-branding with Pottery Barn at The Villages at Rivers Bend.
It's a sign of the times: builders leveraging high-end, highly recognized retailers to boost their marketing efforts and cast a wider net for sales traffic and buyers. But it's not as easy as simply slapping a logo on a print ad or Web site. Just ask Maureen McDermott, sales and marketing director for Oak Leaf Homes in West Chester, Ohio, near Cincinnati. After months of being a patient yet squeaky wheel, she successfully navigated the co-branding waters to convince heralded home furnishings retailer Pottery Barn to style and merchandise model homes for The Villages at Rivers Bend. “I found the right person who was willing to risk the Pottery Barn brand, even though it was a new concept for them,” says McDermott. “I convinced them of the uniqueness of the community and how strong the market was for their products.”
The fee agreement was in line with the builder's budget for merchandising, so Pottery Barn sent a team of designers to scout and spec the model homes, then used the experience as a (successful) case study for future ventures to strengthen its channels into new housing. McDermott further leveraged the partnership by hosting a one-day holiday “shopping frenzy” involving more than 30 local retailers. Local businesses set up booths and tables in the walk-out basement of the model homes in return for promotion of the event, which attracted 200-plus shoppers to the project and helped build awareness and inspire word-of-mouth advertising as well as gain some local press. The model homes are also offered free to area groups and businesses for events, further endearing the builder to the community.
PERFECT PARTNER: Oak Leaf Homes convinced retailer Pottery Barn to co-brand on its model-home complex at The Village at Rivers Bend, the first such venture for the home furnishing retailer.
Program: Co-branding with Pottery Barn; Builder: Oak Leaf Homes, West Chester, Ohio; Advertising agency: In-house; Cost: No cost above the builder's existing budget