Professional Documents
Culture Documents
Marketing 4000 Group Project - U-Lease
Marketing 4000 Group Project - U-Lease
II. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
A. Company Background 3
B. Market Strategy/Marketing Mix 4
C. Company Analysis 9
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Marketing Plan Team Project
U-Lease
I. Executive Summary
apartment complexes and subleases to help college students find housing options that might
otherwise be difficult. Currently, students have to explore multiple avenues to find housing
solutions. For example, an individual may have to physically travel to various apartment
complexes or spend countless hours researching online for a resolution. Additionally, youth may
only need housing solutions for a short amount of time. For example, students may be graduating
a semester early or studying abroad for six months. Also, students may need to find a renter for
their existing lease or need to sublease from someone who already has a contract.
As students, we have noticed our peers struggle to find semester-long housing options.
With seeing many college students posting on Facebook or other forms of social media, asking
for other students to spread the word of their need for a subleaser, or vice versa, we decided to do
something about it. The best solution to this problem is U-Lease. Our website and app are
designed to make it easier for individuals to search for an apartment complex and find current
leases who have spaces available for rent. Consumers in need of a housing solution can look in
one place to view their available options. Users can also pay their apartment complex directly
through the app, eliminating the hassle of exchanging money through leasing offices. U-Lease
will include the original leaser and the subleaser throughout the entire process to ensure smooth
execution.
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The photo above shows an example of a sublease listing that was posted on FaceBook by
a fellow student. This method of advertisement does not guarantee that the content will be
viewed by the desired audience. Additionally, users that are interested in the content may find it
difficult to find content that they viewed earlier in the day due to Facebook algorithms. As the
founders, we believe that posting online is a powerful tool that can reach many users. However,
the current method of advertising rental spaces are time consuming and not practical. U-Lease is
II. Introduction
A. Company Background
U-Lease was founded in 2019 by four business students, Halle Hunter, Bailey Van Beers,
Haley Schaefer, and Kiley Williams, at the University of Missouri - Columbia and serves as a
prime avenue for college students to easily access available housing options. After experiencing
our own struggles to find a place to live off-campus, we saw a need for a service that would be
able to bridge the gap between a college student and various apartment buildings. This service
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provides students with a software that helps combat the problem of finding a part-time or full-
time lease in the Columbia, Missouri area. U-Lease’s mission is to provide convenience to a
busy college student while implementing solutions to find off-campus housing easily.
U-Lease strives to provide the best service for customers so that they have all the
resources they need right at their fingertips. As the founders, we will encourage individuals to
download the U-Lease app. U-Lease also has a website available to provide more information to
consumers. Since college students are always on the go, the app will be an easy and convenient
way for them to check listings rather than having to stop at each leasing office or spend hours on
the internet searching for the perfect subleasing opportunity. Individuals who have a place to
lease will first create a profile by uploading pictures of the unit with details about the space and
contact information for more information. The lister is responsible for determining the price, but
there are suggested price points to help them based areas around the listing. An individual who
needs a space will simply go onto the app and filter their search based on their preferred price
point, location, square footage, and number of rooms or bathrooms in the complex. This filtration
make the search process more manageable because it eliminates the time of manually sorting the
complexes ultimately saving time for the consumer. U-Lease will bridge the housing gap for
Competition in the online apartment rental industry is high. Because of the intense
competition, U-Lease needs to create a sense of excitement within our target market. U-Lease
plans to attract consumers by partnering with popular apartment complexes, indirect and direct
marketing strategies, and by simple branding to catch the eyes of consumers. Through our
marketing strategies, we hope to increase brand awareness, create a positive brand image, and to
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differentiate ourselves from online competitors. U-Lease will project the image of simplicity,
convenience, and availability. Our vision will appeal to our target market of college students who
are looking for housing facilities. Our app will eliminate the hassle of going into various leasing
offices or spending countless hours of searching online for a current renter offering a sublease.
We plan to represent our ideas of convenience and availability through an app and website that
features available apartment units with all of the information needed for consumers to make
informed purchasing decisions. Information required includes location, price, square footage, as
In a college town where there are many apartment complexes and housing options readily
available, U-Lease must stand out. To create a more distinctive brand, we have partnered with all
of the downtown apartment complexes, starting in Columbia, MO, at the University of Missouri.
An example of some of our partnerships include Brookside Downtown, District Flats, TODD, U-
Center, and The Lofts of Columbia. U-Lease’s partnership with the apartment complexes will be
mutually beneficial for the parties involved. U-Lease and the complexes are able to attract
consumers to their listings. This will ultimately fill units with tenants. U-Lease will also allow
for students who are only here for one semester to sublease their unit or to find someone in the
To increase brand awareness, U-Lease will use indirect marketing strategies like the use
of online social media platforms and spreading information through public relations. Our
company will be widely present and active on social media platforms, as well as on the
University of Missouri’s campus. We will post content regarding what living options are
available through a variety of social media channels to reach the maximum amount of users.
College students are very active on social media, making this an easy way to reach the primary
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market while doing so at little to no cost. We have also chose to use direct marketing strategies
like student ambassadors. We will utilize college students to serve as ambassadors to make
U-Lease also focuses on branding that aligns with its core values. Our logo is a modern
apartment building with the brand's name listed beneath it. U-Lease’s logo is straightforward to
eliminate confusion when consumers download the app. The logo aligns closely with U-Lease’s
core value of simplicity. Below is more information about U-Lease’s marketing mix.
Product
The product that we have created is an app called U-Lease. The app will be very user-
friendly and will have many different features for consumers to use. Users will be able to search
through listings in their desired area to find the right housing for them.
Features:
● Easy to use
● Pictures of housing
App Design:
The image to the left is a visual picture of how the app will be
set up. Across the top bar, you can see all the filters that help to
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narrow down the search. Along the bottom bar, you can see a search option and other features to
either favorite your top apartments or access your listing. In the center, it shows a map of all the
available listings in the Columbia, MO, area that falls under the set filters. The app allows two
different ways to view the listings. To get a better idea geographically where the listing is, the
user can use the dots to click on each listing. If location isn’t as important, there is a list button
up top, which will allow all the listing to come upon one screen.
Place
In the first year, U-Lease will offer services to individuals in the Columbia, Missouri
area. People can access this service on the app on their phones or on the U-Lease website. Since
we are partnering up with local apartment buildings who will allow us to share listings available
in their complexes, information about U-Lease will be shared when people go into leasing
offices. Customers will also be able to engage with us on social media platforms such as
Price
The initial U-Lease app in the app store will be free. When a customer is trying to list a
house or apartment for someone to rent, it will cost them $10/month per listing that they have the
listing posted on the app/website. After the living space gets rented, U-Lease and the apartment
complex will make 5% of the total amount of rent that the renter would pay. Obtaining 5% of the
lease as well as charging $10 per month for a listing is one way that U-Lease will be able to
make a profit from its customers. People who are looking to rent a living space will get to use the
Promotion
U-Lease will utilize three main avenues for their promotions. Advertisements, direct
marketing, and public relations will help to create a powerful brand image for U-Lease. We will
advertise for U-Lease mainly through social media but will also utilize mail ads from time to
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time. Our social media advertising will consist of a strong social media presence as well as ads
that we will pay for through Instagram and Facebook. Since Generation Z has grown up with and
consistently uses social media, this will help target college students in the best way possible. We
will also promote campus-wide with the use of campus ambassadors. Our campus ambassadors
will reach out to the student body by handing out flyers, promoting giveaways, and posting on
social media about U-Lease and how it would have helped them solve their own housing
struggles.
C. Company Analysis
SWOT Analysis
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you are listing a property or trying to rent
A. Overview
The online apartment rental services industry is relatively new, with a majority of growth
in the past five years. Companies in the sector primarily operate through a website, but the use of
mobile sites and mobile apps are present. There are low barriers to entry, which means the
industry has a high level of competition with a high level of technological changes. Also, there is
a medium level of revenue volatility. Overall, growth has occurred due to increased internet
usage and augmented demand for apartment complexes. The initial startup cost is low.
Maintaining marketing efforts as well as purchasing the website platform is the main cost
According to our research, growth is expected to slightly slow down due to competition
causing the market to become somewhat saturated due to the low barriers to entry. IBIS world
mentions that improvements in technology and the demand for apartment complexes will most
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Products and services are segmented between websites, mobile sites, and mobile
apps. According to our research, websites make up 42.1% with mobile sites making up 33.5%,
and mobile apps in the other 24.4%. According to IBIS World Report, “Over the past five years,
the rental vacancy rate has declined at an annualized rate of 2.0%, prompting growth in rental
The online apartment rental services are in the growth stage, according to IBIS World. “It
is expected to grow at an annual rate of 15.4% rate to 2024.” The chart below shows the
percentage of growth in the share of the economy in relation to the percentage of growth in a
number of establishments. The table shown below shows the online apartment rental services
about growth, maturity, or decline. Currently, the industry is in the growth stage when compared
publishing, and search engines. According to IBIS World, “Most industries move
counterclockwise around the chart segments: from growth to maturity and then to decline.”
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B. Porter’s 5 Forces
1. Competitive Rivalry: The online apartment rental industry is split between internal and
successful if it attracted landlords to the platform to list apartments rather than receiving
revenue directly from renters. This type of success would be considered internal
competition. On the other hand, external competition consists of hard copies of listings in
newspapers or print advertisements. IBIS World also mentioned that “Industry companies
compete with rental alternatives like subletting and long-term rentals listed on websites
2. Supplier Power: The apartment complexes determine the set amount that rent costs for
the original leaser. Then when someone needs to find a subleaser, they may charge the
same amount, or go down on price and still pay some of it themselves. The amount will
vary depending on each unit for rent. It varies based on the apartment complex or the
individual posting the listing on the app due to the apartment complex it is in and the
3. Buyer Power: In this situation, the buyer has little power. They may be able to negotiate
on a subleasing price, but for the most part, the amount listed on the app will be the price
4. Threat of Substitution: There are currently no apps on the market that offer the same
service as U-lease. The most comparable would be websites such as Zillow. However,
they primarily list houses and apartments for sale. The big difference with U-Lease is that
it acts as a middle man for subleasing, filling a large void, especially with college
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students. Our app is a convenient way for consumers to find online rental services at the
5. Threat of New Entry: The barriers to entry are relatively low. The initial cost consists of
website costs. With this in mind, the market is highly competitive. Eventually, it will
This industry provides internet listings and search functions for residential rental
properties. In addition to connecting potential renters with apartment owners and managers, these
websites often offer targeted advertising services. Increased use of the internet has led to massive
growth in this industry. The primary activities of this industry are presenting apartment listings
The Online Apartment Rental Services industry is a relatively young industry that has
increased over the last five years. Companies in this industry primarily operate websites that
provide renters with listings for apartments. Through these websites, renters can view photos,
search according to desired amenities and apartment buildings, and contact landlords and
brokers. Industry operators generate revenue by charging landlords and brokers a fee to list their
properties, promoting listings, and including advertisements on their websites. Over the five
years to 2019, industry demand has skyrocketed as people have become increasingly comfortable
using the internet for their apartment hunt. As a result, more people have become aware of rental
websites, and industry services have become more useful in the process.
Companies have joined the industry due to high demand; however, they have also joined
because of the substantial number of rental websites. Early in the industry's life, rental websites
were only available in certain cities and regions. However, as more companies have entered the
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industry, sites have been established for most parts of the country. Additionally, as a percentage
of services conducted online has rapidly risen, it has become more natural for renters to use
industry services during the search process. As a result, industry revenue is expected to grow at
an annualized rate of 15.7% to $446.2 million over the five years to 2019. This growth includes
an anticipated increase of 11.2% in 2019 alone. Furthermore, industry profit margins are
Over the five years to 2024, growth is expected to slow slightly, as competition causes
the industry to become somewhat saturated. Additionally, the industry's initial boom will begin
to normalize as most renters have already incorporated rental websites into their search process.
Nonetheless, the steady demand for apartments and improvements in industry software will
likely result in strong revenue growth during the period. Over the five years to 2024, industry
Despite rising demand for industry services, the industry is likely to become slightly
saturated over the next five years. During the previous period, new companies successfully
established themselves in previously underserved areas, thus growing revenue. However, most of
the country now have access to rental websites with comprehensive listings and large viewer
numbers, which means more companies entering the industry will likely have little effect on
industry revenue. Additionally, as more companies enter the area, the competition will increase,
causing operators to lower the prices they charge to landlords and brokers. While continued
revenue growth will prompt new operators to set up operations, the rate of entry is expected to
reduce. Over the five years to 2024, the number of industry operators is projected to increase at
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As competition increases and industry companies lower their prices, profit margins are
likely to be hindered by the average industry operator. However, average industry profit margins
are projected to increase due to the company Zillow Group (Zillow), which currently is estimated
to account for more than 50.0% of industry revenue. Due to its significant revenue share, the
investing heavily in merger and acquisition activity over the past five years, Zillow is expected to
begin generating high-profit margins over the next five years. As a result, the average industry
profit margin, measured as earnings before interest and taxes, is expected to account for 14.4%
of revenue in 2024, up from 11.2% in 2019. The industry exhibits significant revenue and profit
potential for those able to command a substantial share of total online traffic, as a single website
that can market to a majority of potential renters can charge renters and brokers a more
significant fee for services. Online traffic has been a powerful driver behind Zillow’s operating
strategy, which aims to generate the highest possible number of users by acquiring smaller,
Moving forward, another factor that is likely to support industry revenue growth is
improve their services; these investments will likely pay off over the next five years. For
example, companies have invested in interior design software that enables users to decorate an
apartment virtually. Once applied to list software, these companies would allow renters to
explore how they could decorate and furnish an apartment before renting it, which is often a
useful sales tool for listers. Improvements such as this are expected to boost industry revenue
over the next five years. However, to increase research and development expenditure, companies
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are likely to raise wages to attract skilled employees. As a result, over the five years to 2024,
The Online Apartment Rental Services industry is currently in the growth stage of its life
cycle. This is best illustrated by the industry's industry value added (IVA), which measures an
industry's contribution to the overall economy. Over the ten years to 2024, this industry's IVA is
expected to increase at an annualized rate of 15.4%. During the same period, US GDP is
expected to grow at an annualized rate of 2.1%. IVA growth that is significantly faster than GDP
level of technological innovation. Companies in this industry are continuously investing in new
software to improve their ability to present apartment listings virtually. Companies have also
recently developed mobile apps to reach a wider audience of renters. Overall, industries with
rapid technological change are often in their growth stage. Industry participation is also expected
to grow significantly over the ten years to 2024, which is typically a sign of a growing industry.
As partnership expands rapidly, it is often the case that an industry is growing in size rapidly,
which is exemplified by the expected growth in revenue during the period. Furthermore,
increasing participation can often be the result of expanding markets, as the industry continues to
appeal to new consumers and industries. Over the ten years, the number of industry enterprises is
D. Consumer Analysis/segmentation
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Part-Time Lease Students Ages 18-22 These will be students that
Education Level: College already attend the University
Income: $2,000-$7,000/yr of Missouri. These students
will need a part-time lease for
either over the summer to get
in-state tuition or if they don’t
plan on going home for the
summer.
Marketing Strategy
A. Product decisions
U-Lease is a service that is accessible through an app/website that users are able to access
in the app store and on the internet. This product design was chosen to provide convenience so
that customers no longer have to go directly into leasing offices to access housing. We chose to
create an app because of the focus around apps using today. Many companies rely solely on
doing online business and do so through the making of an app for sheer convenience to the
consumer. Having an app right there on your phone or tablet makes U-Lease accessible from
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anywhere at any time of day. Our app is very easy to use and is visually pleasing for the younger
generation.
B. Brand strategy
We know that college life is very stressful and time-consuming, and making living
arrangements not always a top priority. We strive to brand our company on simplicity and
convenience. It is up to “U” if you want to list your unit on our app, and if you choose to do so, it
is your choice on how you price the unit. We understand that we have competitors, and we need
to brand ourselves in a way that will reach our primary market and target segments. The name U-
Lease truly represents our company since “U” will choose to “LEASE” your unit. We stand
several variables to identify smaller, better-defined target markets. We realized there is a needs-
based segmentation present within our target markets as customers are seeking similar needs in
Geographics Columbia, MO
Our primary market will be aimed towards college students in the Columbia, Missouri
area, between the ages of 18 and 24, who are looking for a place to live or are in need of
someone to sublease their apartment for the semester or summer, but do not have the time nor
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ability to go into a leasing office. or have failed to find someone to take their lease by posting on
different avenues of social media. Many students who will only be on campus for one semester
out of the academic year (for reasons such as graduating early, studying abroad, etc.) are
constantly looking for someone to sublease their apartment for them the other semester. And on
the other hand, just as many students are looking for an apartment from someone who will be
gone. These students are busy and active on social media, and are looking for something easy
and convenient to access. Depending on if they have help from their parents or not, many are
looking for a cheaper option often due to only being present on campus for half of the academic
year.
Geographics Columbia, MO
Our secondary market is aimed towards single families, falling in the range of 24 to 45
years old in the Columbia, Missouri area. This age group is present on social media as well, so
our current marketing and advertising strategy will reach them, too. These single families are
typically busy, have a based income, focused on their family as a whole, and are wanting a space
Our app will be created by the WillowTree App Development Agency. We anticipate the
creation of the app to cost upwards of $250,000-300,000. As we see a need for improvements in
the app, additional capital will need to be spent to make these changes. In order to start making
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this money back, we will include banner ads on our page from local companies offering deals to
For our proposed cost structure and pricing strategy, we have decided to make the app
free to all downloaders. This way, people can look for housing options and explore the app at no
cost to them. For those who are posting apartment listings, they will be charged a fee of
$10/month for each listing they have posted. Once a subleaser claims one of the listings, the
renter will pay an additional 5% of the rent amount as a leasing fee to both U-Lease and the
apartment complex.
U-Lease focuses on indirect marketing strategies to enter the market. We will present the
information online to appeal to our target audiences. Specific information about our indirect
marketing strategy is listed under the promotion, sales, and advertising category. Our primary
market consists of college students in Columbia, Missouri, who value simplicity and
convenience. With that in mind, a social media presence is essential to reach students who need a
place to live or sublease for the semester. U-Lease will also utilize student ambassadors and
influencers to reach the target audience on a more personal level. Ambassadors and influencers
will introduce the product to their network by introducing it to the individuals involved in their
social organizations, classes, as well as their online community. Consumers buy from individuals
they trust.
Additionally, the target market values affordability. U-Lease is a free app available to
consumers. It costs $10 per month to upload a listing; however, the app is free to use for
consumers who are not listing an apartment or house. U-Lease would make 5% of profits when
individuals sign with a property-owner. U-Lease focuses on simplicity and convenience. Our
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goal is to make it as easy as possible to put the product in our consumer’s hands. The app design
With the creation of U-Lease, we plan on engaging our target audience through various
promotional activities. Since we are targeting college students, we plan to be extremely active on
social media as a way to connect to our market and keep customers up to date on new listings.
Social media is important for our company to utilize as it is free and can reach mass audiences.
As our primary market is college students, we will utilize college students on campus to act as
ambassadors to make students on campus aware of our app. Throughout the app, we will feature
banner ads that stretch across the top, bottom or sides of various promotions and deals of local
can be reposted by our partners or customers by utilizing the hashtag, #NewLease. We will be
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sure to post content frequently enough so that our target market always has us in the back of their
mind and so that they can see that we are engaging with the community. An Instagram post may
be posted like so featuring amenities that the apartment complex has to offer.
“LEASING SHOULD BE
CONTACT US
SIMPLE”
Download our app - Available on iOS
TODAY! www.ulease.com
and Android!
We will create Facebook advertisements in order to connect directly with our target
markets. We will create ads that correlate with the demographics and psychographics of our
target markets. A variety of facebook ads will be used to promote different housing facilities and
to represent the convenience of our app. This advertisement will capture the user's attention and
make them well aware of our brand. A Facebook ad gives the leasing agent the ability to share
the ad and make his or her Facebook friends aware of the listing and company. Specifically, we
will use banner ads, carousel ads, and right rail ads.
Campus Ambassadors
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As we are targeting college students, we realize it is important to have other college
students promoting our app and services. In order to do so, we will advertise U-Lease by
company and university. Ambassadors are excited about what U-Lease has to offer and are
knowledgeable on all areas of the app. Our campus ambassadors will plan and host events on
campus, develop campus specific marketing campaigns and collect feedback regarding the new
app. Ambassadors will be present in Speakers Circle throughout the school year showcasing
available leases and educating students on the app and how to use it. Ambassadors will speak to
all grade levels throughout a variety of courses in Bush Auditorium. This will allow students to
Not only will they be physically interacting with the students, they will also be
interacting with them through social media and promoting what U-Lease has to offer. Our goal is
to use platforms like Instagram, Twitter, and LinkedIn to interact with our target market. One
way that campus ambassadors will continually reach out to students is by posting to Instagram
stories. An instagram story can either be a still image, boomerang, a poll, or a live video where
followers can post questions or comments directly to the videos for other users to see.
Ambassadors can post content like the events happening in Speaker Circle or other marketing
campaigns. This will allow us to interact with our users on a more personal level giving them a
behind the scenes look. In addition, U-Lease’s twitter account can consist of microblogging to
help inform our target audience about what is currently going on within the company. On the
other hand, LinkedIn can help us reach users through a professional network. Our goal is to make
all activities available to U-Lease’s online audience. We hope our ambassadors are able to make
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students aware of all business ventures and truly help bridge the gap between finding somewhere
Banner Ads
Throughout the app, we will feature banner ads. These ads will be displayed throughout
the app with deals and promotions with local businesses. For example, local pizza companies
may buy a banner ad featuring a deal on pizza for Friday nights. This would seem like an
incentive to potential sublease renters knowing that there are local food places near where they
may live. We will make a profit off of these ads because Shakespeare’s Pizza will be paying us
Partnerships
In order to be able to post units that individuals are wanting to sub-rent, we will need to
partner with different apartment complexes in order to obtain their permission. In exchange for
them allowing us to post available units on our app, they will receive 5% of the rent price listed
on the app. Another incentive for them to want to partner with U-Lease is the fact that if they
don’t, open units in other complexes will be viewed far more frequently and theirs will be
overlooked. We are hoping to build a relationship with these complexes so that if and when
students enter their leasing offices asking about people who are looking for a subleaser, they can
point them towards downloading our app and searching through all the available options.
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G. Goals and Forecasting
U-Lease plans to expand to other areas in the future. Our goal is to expand to other cities
with large universities to align with our target market of college students with busy lives. We
will start by expanding throughout Missouri and then to surrounding states, hoping to have a
presence in all 50 states eventually. Our main goal is to be present in at least 5 states by 2024.
After becoming an established company in the Columbia, MO area, we hope to have at least
20,000 listings in the first year and a half. In order to reach our goal for listings, we will need to
have an adequate amount of advertisements on our social media platforms. We plan to have at
least 5 different types of ads posted 3-4 days at a time. Based on our ad interaction, we will
either decrease or increase the amount of ads we post. With our ads and listings, we hope to be
able to pay off our app in 3 years. Our app will cost roughly $300,000 so, we will need a
minimum of 10,000 listings per year allowing us to make a minimum of $100,000/yr just from
our listings. Once our app is established, we plan to consistently make updates to make sure that
it is running smoothly. Eventually, we would like to have in-app purchases that frequent users
can buy to make their use easier. Another goal is to have at least 20 campus ambassadors at the
University of Missouri in our first year of being established. Our goal for them individually is to
reach out to at least 10 different clubs or organizations to give a presentation about everything
that U-Lease has to offer. Since we know that apartments aren’t the only thing in demand, we
will be expanding to homes and townhomes that are needing to be subleased. Our partnerships
will increase to not only apartment buildings, but also landlords. By 2024, we hope to have
$500,000 in revenue from all of our listings, advertisements for other companies, and our in-app
purchases.
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