The Marketing Group of New England is now offering residential developers a new market research focus group service to help ensure they design and build the right product for the current market.

The focus group programs can be custom developed for both broker and prospective buyer audiences and are designed to provide practical insights and key qualitative findings to inform all of the key elements of residential project design. Through facilitated in-person discussions with small groups of pre-qualified participants, developers become better informed about such critical elements as neighborhood and location impressions, design and unit mix, floor plans, amenities, finish levels, upgrades, and, most importantly, pricing.

The new focus groups are one element in TMG's comprehensive, all-points approach to ensuring developer and project financial success. Provided individually or as part of a complete, integrated marketing and sales program, TMG services include strategic consulting in such key areas as floor plans, unit mix and design, model unit design and planning, sales office infrastructure planning and set-up, branding and marketing communications. TMG offers these services either "a la carte" or as a comprehensive, integrated program.

For more information, contact Diane Maloney at 617-425-0003, or email dmaloney@themarketinggroupboston.com.

Focus Group Research Could Have Helped the W

January 27, 2011

The price a developer pays by building the wrong product — one that is priced too high, that offers wrong amenities package, or the wrong type of floor plans — can be very heavy.

Consider the plight of the W Hotel, examined by writer Michael Blanding in the January '11 issue of Boston magazine. Just 14 months ago, as characterized in the article, it was "the hottest property in the city." Today, the W has filed for bankruptcy protection with the developer facing the possibility of foreclosure by its lender, Prudential Real Estate Investors.

To be sure, as the article points out, the economic downturn has played a major role in the W's struggles, as has the project's theater district location. But, in all likelihood, so has the unit designs — small one- and three-bedroom designs — and the pricing. Trying to charge substantially more than the market's perceived value for a type of design in a questionable location is a reality that even "sweeping views of traditional Boston landmarks" like the Boston Common and State House can't seem to overcome.

As the article, notes, the property "had plenty of stiff competition, primarily two other nearby condo projects: the Clarendon and 45 Province, which feature larger units with more-upscale furnishings....to date, the Clarendon has sold 48 units with an average price of $1.7 million, and 45 Province has sold 26 units with an average price of $1.2 million."

The lesson? To succeed, you have to build to the market. And to really understand the market, you need market research instead of intuition alone. While may be true that "the one thing you can't get in Boston is a one-bedroom with a view" or a "small three bedroom," there's one thing missing from the observation: at the right price.

Just ask a prospective buyer.

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