The marketing feasibility study will analyze the competition and demand for key senior living needs, such as independent living, assisted living, or memory care. A senior living manager can utilize a marketing feasibility study to help determine appropriate pricing for new or expanding services in their facility.
The study works by focusing on a specific area in senior living, such as memory care or independent living, and then analyzing the demographics of both potential residents and current competition. A comprehensive study will draw from reported data, telephone surveys, and discussion with area planners and agencies geared toward elderly services. It will also include a personal mystery shop of the competition to evaluate strengths, weaknesses, or identify what unique marketing positions are.
Marketing feasibility studies can be done by senior living consultants and are truly a valuable tool for determining not just the competition and approximate price point of a senior service, but also the opportunity based on the market absorption and upcoming projects.
No marketing feasibility is truly complete without the following points of data: interviews and analysis of psychological, natural and economic demographics and site visits. Senior living consultants can utilize multiple methods of identifying primary and often secondary service areas of a senior living development. One way they do this is by extrapolating a radius from a defined site.
Most often, the competitors are assessed within local limits, such as city, township or zip code where the subject property is located and add surrounding cities, townships or zip codes in the primary service area where we expect the majority of senior living or assisted living residents to reside. Occasionally, the distance from a proposed site is expanded for a secondary service area where we expect the minority of residents for a new or expanded senior living community.
One element that can’t be overlooked in the study process is the impact local elements will have on a site, including geographic boundaries like highways, rivers, or mountains. A site should be easy to access by major transportation, however also should not be hindered by the noise, congestion, or inaccessibility of such factors. A senior living manager should evaluate the ease of access to services and materials carefully before finalizing the project plan.
A good marketing feasibility plan will also impart recommendations, upgrades, and plan adjustments to the senior living ownership company where appropriate regarding matters like overall project size, services and care levels, as well as the sizing and mixing of units, their pricing, and potential add-on services and amenities. Additionally, a demographic segmentation analysis that includes age, income, and amenity needs is included.
Senior living consultant studies also reviews expected timeframes to obtain stable occupancy should the developer proceed with the senior living project and specific recommendations on niche opportunities available. Additionally, the marketing feasibility study also provides a way to address any unique challenges in your senior living market area. It will also support your business plan’s forecasts, and how to attract investors after the report is complete.
Contact Us to speak to a senior living consultant for more information or if you need help with any aspects of studying and planning for your next senior living management project.