Marketing Strategy for a Self-Storage Business
Mayra Ramirez, Alyson Voyles, Suzanne Guebara
Andrew Buckham, Israel Tijerina
Figure 1 - Competitor Pricing
Figure 2 - SWOT Analysis
Figure 3 - Locations and Pricing
WK Investments operates 4 self storage facilities in the Midland/Odessa area. These facilities operate as Loop 250 Self Storage Center and Midkiff Self Storage Center in Midland, and as West County Road Self Storage Center and Grandview Self Storage Center in Odessa. While the company is the market leader in this area, we feel there are certain measures the company can take that will help both maintain a market leader position and possibly attract new customers. WK Investments currently has a strong market position as a leader in the market. They do have higher prices than the competition; however, the current position allows them to be the price setter in their perspective markets and their prices are justified with their superior products/services. In researching the customers that use the facilities most often, we recommend the following market segments to focus on: * Homeowners
* Vehicle Owners
The marketing strategy that we recommend for the company is a strategy of differentiation. We feel that this approach is best suited for the company because their product is superior to competitors in the area. Because we want to highlight the special features of each location as well as the superior service, we feel that the differentiation approach would work best for this company. After a careful analysis of the company’s customer, the competition, and other internal & external factors, we have come up with various tactics to help enhance WK investment’s marketing strategy.
We believe that these self-storage centers offer the best storage facilities available. However, the Midland/Odessa self-storage market is a mature market. There is not very much room for growth. Therefore, an aggressive marketing approach is needed to target customers and let them know that their storage needs are unfulfilled. We need to analyze the competition to see that none of our present business is stolen while attracting new customers. SITUATION ANALYSIS
WK Investments strives to have higher quality storage units than the competition. Their focus is to target the female demographic of the selected target markets. This means making the facilities comfortable for women so they feel safe when they are on the property, especially at night. To achieve this, proper lighting is used as well as soft music to help create a comfortable atmosphere. The self-storage centers’ culture is focused on convenience as well as piece of mind. Prices may be slightly higher than that of the competition however, the prices are justified with the fact that customers are getting what they pay for. There are four self-storage locations which allow the company to serve a better customer base than competitors with only one location. While the staff is trained with the customer in mind, they are able to provide the best customer service available. Customer Analysis
Typical customers are homeowners between the ages of 25 and 65, generally married and living within 3-5 miles of a storage location. The majority of other customers are businesses, in either the service industry or a doctor’s office. Most customers use the storage units to store excess belongings. Some use them while they are in the process of moving and others use the units during a divorce. Based on surveys performed by the company, the majority of customers...
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