This issue of accurately assessing your target market and communicating with your ideal clients on their wavelength is crucial to your success as a luxury real estate marketing professional. In Part 1 of this article series, we wrote about Louis Vuitton and Ruth Chris closing their doors in Santa Barbara because they misjudged their target market, which cost them both dearly.
In nearby Thousand Oaks, known for its strong community and excellent school system, an “Asian fusion” restaurant opened after an extensive, long term and very expensive build-out in an upscale shopping center there. Located directly across from the family-friendly and extremely popular Cheesecake Factory (over 160 restaurants in the chain) it closed within one year.
Again, the demographics of Thousand Oaks supported the potential success of this restaurant. But, they completely missed their psychographic target. The décor was dark and uninviting. The menu was a mélange of Asian cuisines, which works at their other locations in Los Angeles but not here. The name of the restaurant, Buddha’s Belly, did not help its cause.
Ironically, in the high-end shopping center of Century City, which is adjacent to Beverly Hills, the owner of the Cheesecake Factory opened an Asian fusion restaurant, Rock Sugar, with a magnificent, inviting décor replete with beautiful and exotic Asian furniture and water features. You feel transported to the Far East the moment you approach the front door.
This restaurant is thriving because it hit its mark both in demographics and in psychographics. The shopping center is surrounded by office buildings and is particularly suited for power lunches. The food is fabulous. It is a great date restaurant that is also perfect for special family gatherings.
Take the time to carefully understand both the demographics and the psychographics of your target market. Doing so can save you a considerable amount of time and money!
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