Market Research Report

Ashley Jobe | Gabriela Aschenberger | Kristen Hockenberry | Nick Lawrence | Sara NaegelinApril 14th, 2013

Executive summaryBackground

Objectives

Methodology

Findings

Conclusion

Recommendations

Appendix: Questionnaire

Secondary Research

Topic Areas

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b

Executive summary

Our goal is to unveil the needs, wants, and desires of Bay Area homeowners as pertains to their outdoor living space, as well as, uncover the experiences that homeowners want to have in those spaces.

Through our Market research we were able to identify 5 different experiences Bay Area homeowners would like to have in their outdoor living space.• Community• Harmony• Validation• Beauty• Oneness

Terra Ferma Landscaping provides design, construction, and maintenance services in the Bay Area.

Executive summaryThose 5 experiences correlate with 5 customer segments in the Bay Area who are well-educated and have a household income of $100,000+:• The Budding Family is looking for community• Balanced Bonsai are looking for harmony• Aspiring Japanese Maples are looking for validation• Rooted in Knowledge is looking for beauty• Soulful Sunflowers are looking for oneness

For all 5 customer segments, maintenance is a common need and pain point.For the customer segments seeking Community, Beauty and Oneness; guidance and knowledge are also very important.

A majority of homeowners want their outdoor space to be low maintenance. They desire a space that is landscaped and contains a garden, in addition, these outdoor living spaces are typically described as kitchen or entertainment areas.

• TFL started as landscape construction company and evolved into landscape design and architecture

• Owner has a passion for design and landscape architecture• Business has three departments: design, construction, and maintenance

BackgroundHistory

• To identify archetypal clients to pursue• A strategy for reaching new customers

Challenge

• Currently TFL does not have a marketing plan• Marketing collateral is limited• New customers come primarily from referrals

In order to stay in business, TFL needs...

• Analyze customer needs and desired experiences

• Identify different customer segments

• Understand if there is opportunity that TFL is missing with the customer segments we’ve identified:

• Existing services for existing customer segments• Existing services for new customer segments

OBJECTIVES

Secondary research defining landscape architecture, design/build and maintenance

Methods

Interviews with management, partners, clients and staff from TFL

Street intercepts, 15 minutes each at San Francisco parks and nurseries+

Personal network of people in Portland, OR, Santa Fe, NM, Denver, CO, Bedford, NY and Montauk, NY

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FindingsFrom our interviews, we unveiled 5 most recurring meaningful experiences that people want to have in their outdoor spaces:

Community: by spending time with family and friendsHarmony: to balance with work lifeValidation: to reinforce self imageBeauty: the pleasure from how it looks

Oneness: the connection with everything around Based on these experiences, we created 5 customer segments.

5 Customer Segments

Budding family

“Nothing makes me happier than seeing my kids, family and friends having a good time outside.”

Meet Cynthia Woodside• Married, mid-30’s • Has two kids• Household income: $100k+• Stay at home mom, maintains and manages the household

• Outdoor spaces are extension of her home

• First-time homeowner

What would complete the experience? • Would like larger patio to entertain• Privacy and sense of security are very important

Community

Balanced Bonsai

"I need a place to unwind after a long day, where work is the last thing on

my mind."

Meet Jack Harrison• Single man in his late 30s• Household income: $150k • Works many hours at high stress job• When he is home, his yard is a place for relaxation

• The visual aspects of his outdoor space bring him harmony

• He wants a well maintained, aesthetically pleasing space, but doesn't have the time

What would complete the experience? • Someone who understands ways to enhance the visual and harmonious experience within his space

• More than a blow and go service he wants attentive, detail-oriented care

Harmony

Aspiring JapAnese MapLES

"We need an extravagant outdoor space and vista to share with our

guests at our famous garden parties."

Meet Brent and Laura Campbell• Married, in their 40‘s• Household income: $300k• Concerned about image, wealth & status• Need space to impress friends & guests• Feel sense of fulfilment when they receive compliments about their landscaped space

• High regard for function & aesthetics

What would complete the experience?• An award-winning firm to complete design, build, and maintenance in order to affirm their personal net worth and prestige

• Require thorough, attentive, and consistent services and hand-holding to meet their high demands

Validation

Meet Paul and Marie Friedrich• Married, early-50s• Household incomes: $150K+• Avid gardeners & grape growers • Large outdoor space is hard to maintain• Derive peace & joy from outdoor space• Approach the cultivation & planting process as an immersive & enriching learning experience

What would complete the experience?• Seasonal help with maintenance• Guidance from an expert• Hardscapes, defined areas for relaxation and entertaining

Rooted in knowledge

“I would rather be tending to the vegetable and herb garden than be spending time pruning the hedges.”

Beauty

Soulful sunflowersOneness

“I can’t believe we just discovered the pleasures of enjoying our yard.”

Meet Dana & Dan Bracho• Mid-60s, no children• Household income: $100k+• Retired, spend more time at home• Would like to do something with outdoor space

• When the weather is nice, Dana likes reading outside

• Dan would like to garden

What would complete the experience?• A well-designed, relaxing space with comfort in mind

• Design guidance and garden they can maintain themselves

• Lack knowledge and skills to transform outdoor space into a sanctuary

• Good value and low maintenance are important

Opportunities

They need a high quality landscape service that is detail oriented and offers special and unique projects.

Improved quality & extended maintenance services:

Balanced Bonsai

Aspiring JapAnese MaPLES

Having a harmonious and well maintained garden is important, but people in this segment do not have the time tend to their gardens. They need a landscaping service that is detail-oriented, and enhances experience of harmony. They are tired of current mediocre services that only “get the job done."

Opportunities

Outdoor space consistently requires attention as they host many parties outdoors. They need a more customized and tailored approach.

Occasional clients:

Soulful sunflowers

Aspiring JapAnese Maples

They only use the outdoor space during summer. During winter, the maintenance is compromised.

They need seasonal help whenever the maintenance workload increases.Rooted in Knowledge

Opportunities

They approach the cultivation and planting process as an immersive and enriching learning experience.

Guidance for knowledge:

Budding family

Rooted in Knowledge

These are the first-time homeowners and are seeking to learn about landscaping, whether it pertains to design, construction or maintenance.

They would like to understand more about maintenance to be more self-sufficient and independent. 

Soulful Sunflowers

Conclusion

Through our research we have identified 5 customer segments:• The Budding Family is looking for community by spending time with friends and family;

• Balanced Bonsai is looking for harmony to balance home and work life;• Aspiring Japanese Maples are looking for validation to reinforce their self image;

• Rooted in Knowledge is looking for beauty through the aesthetics of their outdoor space;

• Soulful Sunflowers are looking for oneness through a connection with everything around them.

Conclusion

Of the five segments, TFL is already servicing The Balanced Bonsai and Aspiring Japanese Maples through design, build, and maintenance. There's an opportunity to offer more attentive and detailed maintenance services to these segments.

There is an opportunity for TFL to differentiate themselves in the market by focusing on The Budding Family, Rooted in Knowledge, and Soulful Sunflowers.

These three segments need guidance to help attain their desired experiences, and maintenance to help sustain those experiences.

RecommendationWe've identified five customer segments, two of which TFL is already serving. For those two segments we recommend overall maintenance services be offered and improved to retain current clients through attention to detail and thorough consultation.

Currently TFL has positioned their maintenance department as a follow up service, however, by repositioning maintenance to a consulting service it could be an entry point for obtaining new customers who seek knowledge, guidance & direction. These customers could ultimately also utilize their design/build services. In addition to acquiring new customers TFL would also differentiate themselves in the marketplace.

We recommend TFL implement their repositioning with a marketing plan focused on the the three customer segments by utilizing various marketing touchpoints.

Recommendation

Website as a ResourceEx. Through an internet search leading them to TFL website, they would be able to look through the variety of trees that could restore their yard after the winter, viewing TFL more as a resource, guidance and consultant.

Direct Mail Offering Flat-fee ServiceEx. Through direct mail offering a flat-fee for 15x15 patios, the Budding Family would understand they can afford a patio that would allow them to entertain their family and friends.

Direct Mail Educating/ServicesEx. Through direct mail the Soulful Sunflowers could realize that an initial consultation from a licensed Landscape Architect is just what they need to create the relaxing low-maintenance space they need at a good value.

Budding family

Rooted in Knowledge

Soulful Sunflowers

Thank you

AppendixPrimary Question Focus: Outside Space (footprint of home) Duration: 15 min IntroductionObjective: Identification(use the name tag from CCA) "Hi, I am ____, a MBA student at CCA. Can I do a QUICK interview with you? It will take about 5 or 10 minutes. Our questions are going to focus on outdoor space."  Screening Questions: (2-3 question)Objective: Quick (In&Out) Do you have a yard/ outdoor living space? Do you have the ability to make decisions regarding the landscape of your home?What type of dwelling is it?

Questionnaire

Opening QuestionsObjective: Make the respondent comfortable with the interview by starting with some simple questions. How long have you lived here?Are there others who live with you?What do you do for a living?What is the range of your house income? (Please, stop when I get there)up to 50k, 50k - 100k, 100k - 250k, 250k - 500k, 500k plus

Broad QuestionsObjective: Get a good sense of how people interact with outdoor space in life. In a typical week, to what extent is your yard (outdoor space) a part of your life? How would your experience be different if you didn't have your yard/outdoor space?

Specific QuestionsObjective: Understand the experience people want to have with their outdoor living space. How important to you was a yard/outdoor space when you chose the residence you currently live in? Why? What type of feelings does your outdoor space evoke?  What elements contribute to those feelings? 

Questionnaire

Appendix

What do you use your outside space for? Please describe what your yard/outdoor space looks like.  What’s the ideal experience ( that you envision having ) in your yard?  Where does your yard fall short right now?  What types of solutions come to mind? ( if there are any shortcomings ) When thinking about these solutions would you solve it by yourself or look for help? Why? What types of services focused on outdoor spaces have you come across?  Under what circumstances would you hire someone who performs these services?  Let’s say I call those services landscape architecture what does that mean to you? And what about landscape design? And what about landscape construction? And finally, what about landscape maintenance?

Images:Objective: Sometimes images help us to express better than words. Before: Which picture does the best job of capturing what it feels like when you’re having a good time in your backyard? After: What does it represent to you?

Questionnaire

Appendix

 Land-scape Ar-chi-tec-turePronunciation:                               Function:

[land-skeyp] [ahr-ki-tek-cher]       Noun

The cross-functional discipline of design, planning, management, and stewardship of the land for the purpose of achieving desired environmental, social-behavioral, and aesthetic outcomes. It is the science of achieving harmonious interplay between the natural and built environments through the cultivation of

resilient ecosystems, reverence for the site, and sound resource conservation practices. Design-Build------------------------------------------------------------------------------------------Is a method of project delivery, as an integrated approach with a single point of responsibility. The design-build team works under one dedicated contract with the project owner to provide both design and construction services. It is a highly efficient and resourceful alternative to design-bid-build in which all three components are split up into separate entities, separate contracts, and separate work.

Pros: Faster delivery, cost-savings, singular responsibility, higher quality, and reduced risk and litigation claims.

Secondary research

Appendix

ASLA Survey:Top Outdoor Living Trends For 2012 ------------------------------------------------------------------------------------------http://www.asla.org/NewsReleaseDetails.aspx?id=35277118 Landscape Architecture professionals with specialties in residential deisgn responded to survey asking about the estimated popularity of various design elements in 2012. The results indicated there was a preference for an undemanding outdoor space designed for lots of entertaining. Synthesis of Positioning of Elite CompetitorsThe following list of elite landscape architecture firms, through their websites, clearly indicate their unique approach to differentiating and positioning themselves and this could be what Terra Firma is lacking from their comprehensive marketing strategy to successfully connect with their stakeholders. The following insights are a distillation of how these firms promote themselves through their internet experience.

• They value the historic, cultural, and environmental context of the site and use landscape architecture as a technical and artistic tool to provide a sense of equilibrium, versatility, and adaptiveness

Secondary research

Appendix

• Leverage landscape architecture as an immersive learning experience for the customer and the patrons.• Never underestimate the pedagogical influence and power of the natural and built environments to teach and enable us to lead sustainable lives

• Respect for compositional order, approach project as a canvas

• Utilize landscape architecture as a response to the human need for connection with the surrounding environment• Take cues from natural and social processes and provide memorable experiences that engage the senses and the imagination with a lyrical and poetic restructuring of the site

• Approach the project with an artisan's respect for craftsmanship and things well made• Elicit the health and vitality in the site, from the human, and the land• A bespoke or customized experience allowing the customer to be the protagonist in the narrative able to seek out more complex and pleasurable experiences

Secondary research

Appendix