TOPIC: What is the marketing theory that would explain why every asset has a unique name and brand?

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36460

What is the marketing theory or background in multifamily that would explain why every asset has a unique name and brand? Is there a reason why this is just accepted as common practice?

I can’t think of many examples in other industries where every location takes on a totally new brand, so I’m trying to understand what drives this trend in our industry.

I ask because it sure feels like we put a lot of extra work on ourselves to build unique brands from scratch, when we could get further faster by building off the success of sister properties. Yet only a small handful of multifamily operators are working to build a recognizable portfolio brand like this.

Is it because the industry has traditionally been so fragmented? Is it ownership ego? Are there marketing studies from years ago that found residents all want to feel unique? Is it just the way it’s always been done?

Educate me.

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36461

I feel like current student housing operators are making tremendous strides in changing this practice nationally (The Standard, The Hub, The Retreat, University Village, Liv+, etc)... at least until the asset sells.
  • Anonymous
  • Anonymous's Avatar

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36462

Craig Great point. The interesting thing about that is there typically isn’t the regional concentration – there’s one The Standard or University Village in a bunch of completely different markets. Thanks!

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36463

Mike Whaling give me a little time to research. I feel like I can find regional examples for you. But for the norm, you’re absolutely correct!
  • Anonymous
  • Anonymous's Avatar

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36464

One reason is when builders build a property, lease it up and sell it - they are selling the property not only the brick and mortar, but with its own distinct brand. (Website, social media, monument sign, etc.) Working for a development company, there is lots of discussion surrounding this reasoning.
  • Tony Sousa
  • Tony Sousa's Avatar

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36465

Tony I see that, for sure.

But I would also argue that, in an acquisition, there’s very little real value placed in the marketing assets. Most new owners bring in their own partners – “our preferred manager is a Yardi shop, so we’ll just replace this website with a RentCafe template.” Happens all the time.

I definitely see the thought process from the developer. I just think that there’s a missed opportunity to apply some pre-existing brand equity from previous successful projects. What if you could get rents that were 3% higher simply because of the name on the door? That happens every day in hotels, but it’s not really a thing in apartments.

Appreciate the insights!
Last edit: by Felicia Norman.

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36466

I do feel that most assets do not remain with the same ownership group that bought and created them. That makes it hard for them to stay under the same brand if they are bought and sold around. I think by making them their own standalone brand, you make them buyer agnostic.
  • Bill Szczytko
  • Bill Szczytko's Avatar

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36467

Ownership group are rarely the same so they might want those differences as well.
  • Bill Szczytko
  • Bill Szczytko's Avatar

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36468

Bill Businesspeople buy restaurant franchises and hotel buildings all the time. I know I’m going to have an easier time getting my name out there if I’m running a Chick-Fil-A or Dunkin’ Donuts vs. trying to build a brand from scratch.
I see the “build to sell” mentality, but I think we put a lot of extra work (and extra costs) on ourselves in the meantime, just so some future buyer doesn’t haven’t to change the sign out front.

What is the marketing theory that would explain why every asset has a unique name and brand? 1 year 7 months ago #36469

This is beginning to be a really awesome conversation. Are you suggesting that the name of all the apartment complexes from a single PM company be the same? I do think it creates problems when communities are bought and sold or the firm changes what property management company manages it. You're then going to have to rebrand completely to match the existing PM company. How often is a McDonald's turned into a Chick-fil-A?
  • Bill Szczytko
  • Bill Szczytko's Avatar

Multifamily Discussions

More Topics »