The Situation
Cristo Homes is a third generation homebuilder operating primarily in the Middletown,
Ohio region. In recent years, Cristo’s marketing message focused exclusively
on low cost. The advertising campaign used a "fire and forget" approach,
with no follow up research conducted as to effectiveness and/or customer perceptions.
As a result, monthly home sales steadily declined to a low of seven homes per
month for the first half of 2002. In addition, Cristo began to experience reluctance
from local zoning commissions for new Cristo developments.
The Proposal
Justice & Young, Inc. was invited to assist Cristo in reinventing their brand
by focusing on quality and value versus cost. J&Y was tasked with conducting
a marketing audit to determine the effectiveness of all marketing tools and to
create a yearlong campaign to address declining sales and brand perceptions.
Concurrent with a renewed emphasis on marketing, Cristo management realigned
sales practices, procedures and incentives, to elevate and reinforce its brand
internally.
Strategy & Tactics
Justice & Young, Inc. identified Cristo’s largest audience to be first
time homebuyers currently residing in apartments, married couples age 25 - 34,
with children, and a combined household income of $45,000 or more. Our research
identified specific neighborhoods representing clusters matching this demographic
profile. A new slogan, "A Place to Call Home", was introduced. The
company’s two home series names were changed from Smart Value and Classic
to the Regency Series and Century Series. Customer incentives generated dozens
of qualified home buyer prospects. Materials developed included targeted direct
mail supported by fresh newspaper, print, literature and outdoor and website
development. In addition, lot signs, sold signs and model décor graphics
were all redesigned to support Cristo's new brand identity.
The Outcome
The new marketing campaign was launched in June 2002. By the end of September,
new home sales had increased by 59% over the previous quarter. Cristo Home’s
success clearly illustrates a company committed to growth and willing to reinvent
their brand both internally as well as with their public. |
