Marketing Home Products

Our diverse population makes the ‘average American’ increasingly harder to define.  Witnessing this shift, marketers have turned away from mass marketing in favor of niche marketing, which consists of a tailored approach to smaller, more targeted markets and attitudinal groups. For those who market home products, we must understand the desires of our audiences and determine how media segmentation can be used to address different groups.

“Non-Traditional” Households are Taking a Leading Position
The growth of “non-traditional” households requires an appreciation for attitudinal market segmentation that addresses each group’s unique preferences and buying patterns.

Single-sex households and Gayborhoods

• Single-sex relationships, gay communities or gayborhoods, and families with single-sex parents comprise a group with great influence in urban renewal.
• This group’s buying power is expected to hit $2 trillion by the year 2012.
• When reaching out to gay consumers, focus on their enhanced affluence and interest in style, brands, luxury and travel.
• Speak to their individual identity, which is oftentimes ignored by mainstream media and marketing.

Mounting Hispanic Population

• The Hispanic population includes 46 million people with more than $700 billion in spending power.
• Industry insiders say U.S. builders are addressing this niche with home designs that recognize Hispanics’ inclination to house multi-generational families living under one roof.  Recent trends in Hispanic home building include greater numbers of smaller bedrooms, convertible garages, generous parking space and easy indoor-outdoor access.
• Savvy home industry marketers can capitalize on this trend by having a clear understanding of the audience and ensuring messages are culturally relevant.

  (See the link below for our white paper on marketing home products to Hispanic Americans.)

Ruppies . . . Shattering Post-Retirement Stereotypes

• Ruppies, or “retired urban professionals” are 40 million strong, with an estimated $2 trillion in annual spending power.
• Ruppies seek high-density, bustling communities in large cities that make them feel young.
• There is emphasis on accessibility and a continued importance on increased informal space in the home including open space layouts and flexible floor plans.
• Consider media segmentation beyond traditional media outlets. Recent studies reveal that Ruppies are attracted to social media and networking sites.

Young Professionals

• Generation X and Generation Y represent the fastest growing homebuyer segment in the country.
• Renovations are popular among younger generations who see an opportunity to personalize their homes and make a statement.
• When marketing to young professionals, know that they are price-conscious, skeptical and sophisticated in their purchasing decisions.
• Use the Internet and online marketing tactics to target young professionals.

What’s Next for the Housing Market?
Successful marketers are making the shift from broad, generic messaging to pointed, targeted communications.

The pressure of a down economy causes a crucial need to connect with each consumer emotionally. Offer them solutions, avoid stereotyping and look to a personalized marketing approach that serves the needs and desires of each cohort.

In the home and building channel, it is critical to remember that the home represents who we are and how we define ourselves.

K&A’s Marketing Home Products to Hispanic Americans White Paper can be seen here.

Updating your flooring is one of the best investments you can make in your home. Two popular trends to consider when marketing home products are the move toward sustainability and the move to environmentally friendly versions of old favorites.

What are eco-conscientious consumers looking for now?

Seeing Green
Sustainable products are those developed to maximize environmental safety, conservation of resources and recycling of raw materials during manufacturing.

Although oak still accounts for nearly two-thirds of all installed hardwood flooring in the U.S., more exotic and environmentally savvy crops like bamboo and palm are gaining wide popularity. Because it is a renewable resource, bamboo has become a favorite among green building proponents. The material is also extremely hardy and durable. Many homeowners buy bamboo merely for its aesthetic appeal.

Wood from coconut palm trees is also becoming another popular, earth-friendly flooring option. Palm is a renewable resource made from plantation-grown palm trees that no longer produce coconuts. Palms yield a darker color than bamboo but are just as sturdy.

Linoleum is also making a comeback and in doing so is boasting various green features. This versatile material can be installed in the kitchen, basement and/or bath as a durable, toxic-free alternative to regular linoleum.

Retro Revival
While buying green is a strong force in the flooring market, the retro modern craze is also gaining ground.

Cork flooring, once popular in the 1920s, is seeing quite a revival. The product is once again becoming popular because of its comfort, durability and no-fuss nature. And since cork is more than 50 percent air, it is extremely lightweight and acts as a natural sound absorber. Cork is also extremely resilient—it doesn’t show dents or grooves like traditional wood flooring and is impervious to pests and rot.

Once considered a campy throwback from the 1960s, shag carpeting is getting newfound attention. Product designers say it’s an extension of the current trend to imitate natural materials.

Inventive Alternatives
Another hot trend to consider is leather tiles for flooring. With many offerings available including such exotic skins as zebra, leopard and snakeskin, homeowners can make a bold statement in any environment. Glued directly to AC plywood, the tiles are easily maintained and suppress sound. Leather tiles, however, are not recommended for the kitchen, bath or high traffic areas.

The use of metal flooring tiles is also gaining popularity, especially in lofts and other modern living spaces. Metal tiles can be expensive and are mostly used as accents in the kitchen and bath. They can come embossed to add interesting details to any floor design.

A Future of Change
Flooring trends will change from year to year, but these options have staying power. Designers are taking cues from their surroundings to create products that represent a connection with nature and a fondness for its preservation.

Forecasters Predict Recovery Next Year

Good news: An overwhelming majority of economists and forecasters feel quite optimistic about where the economy is headed.

Not-so-good news: There is great discrepancy between these optimists regarding when the economy will truly get back on its feet.

While it’s impossible to predict exactly when an economic turnaround will take place, the consensus is a positive one. Many economists expect to see a recovery about halfway through 2010. Others, however, are wary to predict we’ll see improvement that quickly.

The housing market is the first place most look to for signs of improvement or decline, and for the first time in a while housing experts are speaking optimistically about the upcoming months.

Referring to our economic state as “The Great Recession,” Chief Economist for Moody’s economy.com Mark Zandi said he expects it to end fairly soon, citing the federal stimulus package and adjusted consumer spending as contributing factors.

Zandi believes a “substantial pickup in economic activity” won’t occur until 2011 or 2012, but that housing starts should return to normal by fourth quarter of next year.

Others, such as NAHB Chief Economist David Crowe, expect a recovery sooner. According to an article by Builder, Crowe predicts single-family housing starts to increase to 517,000 next year – a 36 percent improvement – and that “the economy will grow during the second half of the year as stimulus spending begins to have an impact.”

Bryan Banish, president of iGlobal Strategies LLC, wrote in a recent blog post that we’re starting to see consistent results that are bringing us closer to recovery. July yielded “almost universally positive” results:

• New homes sales jumped 11 percent
• Mortgage rates have remained at low levels
• Existing home sales climbed for the third straight month
• House prices as measured by the Case-Shiller Index showed the first month increase since their peak in 2006.

Because the housing market has likely hit its bottom, the only way to go now is up. Signs of stabilization such as increases in housing starts and home sales are strong indicators of an economic rebound. This transition will continue to take time, but if we focus on positive factors (such as those listed above) and work on contributing toward those trends, a recovery is in near sight.

What is your company doing to focus on positives? Contact me at sk@kleberandassociates.com or on Twitter @stevekleber.