Cozy Nest Tiny Homes

Rosedale, Oregon

Background:

Samantha Greene is the owner of Cozy Nest Tiny

Homes of Rosedale, Oregon. Her background lies in
architecture and environmental science. Samantha
studied sustainable design and green building
practices in college, where she developed an
interest in creating spaces that were not only
aesthetically pleasing but also environmentally
friendly and resource-efficient. After graduating,
she gained experience working for an architecture
firm specializing in eco-friendly residential designs.

However, Samantha felt a growing sense of dissatisfaction with the traditional housing market, which
often prioritized size and luxury over sustainability and affordability. She became drawn to the tiny house
movement, seeing it as a revolutionary way to challenge the status quo and provide people with an
alternative, more sustainable way of living.

Driven by her passion for tiny homes and sustainable design, Samantha decided to take the leap and
start her own company, Cozy Nest Tiny Homes. Her goal was to combine her expertise in architecture
and environmental science to create beautifully crafted, energy-efficient tiny homes that would not only
minimize environmental impact but also offer individuals the opportunity to live more simply and
affordably.

Stephanie has spent the first year putting together her

business including purchasing an old warehouse and some
land in Marion County near Salem, Oregon where she can
build the homes protected from the elements, have a sales
office, and a few tiny home models. Also, based on the
recommendations of a marketing professor at a local
university, put together a survey and sent it to local
subscribers of “Tiny House” and similar magazines hoping
to learn a bit more about the local market and what they
were looking for in a house.

She is having trouble gleaning much information from the

raw data so has turned to the professor for help. She would
like to understand the market soon so that he can start
working on her marketing program and the building of several model homes designed to appeal to the
local market.

For more on the Tiny Home Movement, learn more here.

Assignment:
We are going to help Stephanie out by analyzing her data, determining the structure of the tiny home
market, and making some recommendations for her marketing program including the specifications for
the model homes she is going to build. Keep in mind, model homes are expensive so the fewer the
better as long as it appeals to the more attractive segments of the tiny house market.
Case Analysis: Individual
Step 1: Run Descriptive Statistics to understand the structure of the data.

 Determine the nature of each variable (continuous vs. discrete)

 Draw some conclusions about the tiny house market in the Rosedale area.

Step 2: Do a Cluster Analysis to determine the different segments in the tiny house market.

 Use two-step and k-means cluster to determine the number and structure of the different
market segments (clusters).
 Describe each market segment you found and give each an appropriate label/name.

Step 3: Analyze the market attractiveness of these different segments.

 Evaluate the potential profitability of each segment (size x margin)

 Analyze the competitive intensity for each of the segments. This step will require doing extensive
research not only identifying other tiny home builders in the Northwest but also identifying
which segment each is tapping into.

Step 4: Select 1, 2, or 3 segments for Cozy Nest Tiny Homes to target.

 You decide both the number and which specific segments to target keeping in mind synergies
between the segments, costs associated with marketing to each segment, and the market
attractiveness of each segment.

Case Strategy: Groups

Step 5: Create a marketing strategy (4 P’s) based on your target market. Prepare a 15 minute client

presentation for Stephanie and present to the class.

 Product: Come up with the specifications of the tiny home for each segment. Be creative...I love
to see idea boards including floorplans, sketches, and even a materials list.
 Place: where is the best location for the showroom....does the Rosedale location work?
Should Stephanie consider buying a tract of land and making a tiny home community of her
own?
 Price: What should be the price point for the different homes you designed?
 Promotion: Design a complete Integrated Marketing Communications campaign using
multiple channels for advertising but with a unified message for each target market.
Tiny House Survey Questionnaire

1. How large a tiny home are you looking for (sq. feet)?

2. How many people will sleep in your tiny house?

3. How much storage do you need (sq. feet)

4. Where do you plan on parking/building your tiny house? (family or friends property, leased property,
own property, RV park, tiny home community)

5. Are you looking for a tiny home on wheels or on a foundation? Foundation = 0; Wheels = 1

6. Do you want a totally off-grid house? (On Grid -0; Off Grid = 1)

7. Do you want a Loft or Main floor bedroom? Main Floor = 0; Loft = 1

8. Which of the following appliances do you want in your tiny home? 0= No; 1 = Yes

1. Refrigerator

2. Stove

3. Microwave

4. Oven

5. Washer/Dryer

6. Dishwasher

7. Other

9. Do you want full sized appliances or ¾ sized appliances? (Full Sized = 1; ¾ sized = 2)

10. Which of the following feature would you be willing to pay extra for?

1. Deck

2. Slide out

3. Solar power

4. Composting toilet

5. Fireplace or stove

6. Build from sustainable materials

11. What is your age?

12. What is your gender? (1=Male; 2=Female)

13. What is your education level?

14. What is your income?

15. What is your debt?

16. Household size?

17. What are your reasons for going tiny?

1. Reduce/eliminate debt

2. Downsizing

3. Own your own home

4. Simplify life

5. Spend more time travelling

6. Reduce carbon footprint

18. What is your budget for a tiny home?

* items in yellow are for classification (cluster analysis) and items in blue are for Discriminant analysis