Market and Industry Analysis
Active Adult Retirement Communities
Active Adult Retirement Communities began around 1960 when Del Webb opened Sun City in Arizona, a community which grew to house 46,000 residents in 26,000 homes. The residents are people age 55 and up who are retired or have businesses they can run from home and who are still active and do not need assisted living. There are now thousands of these communities in the United States varying in size from less than 100 residents to as many as 70,000. Most of these are in states friendly to retired people because of the climate (the Southwest), the state income tax situation (Texas, Florida), or access to cultural amenities.
The potential market for Active Adult Retirement Communities is immense and still growing as Baby Boomers move into retirement age. Advances in health have increased the percentage of people who live into their 90’s and stay active and healthy during that time. See the Appendix for links to market data for retirement communities. Also in the Appendix are links to three Active Adult Retirement Communities in the greater Nashua area: The Nevins, Riverwalk at Bedford, and Hickory Woods.
Customer Analysis
Amateur and Professional Musicians
The target market for the Musician’s Retirement Community is the intersection of retired active adults and people who enjoy playing music whether as amateurs or professionals. Among professionals this includes music teachers, orchestral musicians, singers, accompanists, soloists, choir members and directors, church musicians and many others among classical musicians. There are also many players of jazz and other kinds of music who would be interested in the community.
Many of these amateurs are members in organizations such as the Boston Piano Amateurs, a group of about 50 pianists who meet about once a month to perform for each other. The Associated Chamber Music Players is a worldwide organization of 2,500 members, of which about 250 live within 100 miles of Boston. In association with the Appalachian Mountain Club the ACMP puts together an annual “Music and Mountains” weekend at a lodge on the slope of Mount Washington in New Hampshire.
Downsizing
A typical musician, straight out of college, has two priorities: a place to live, and an instrument to play. A violinist or trumpeter may already have a good instrument but will need an apartment where he can practice without disturbing the neighbors. A pianist will typically acquire a 6-foot long grand piano and an apartment with a large living room to hold it.
Musicians, like most people, get married, have kids, and acquire a house big enough for the kids and the musical instruments, frequently with a room big enough to hold a piano party with 25 to 30 people. Our musician now has a detached 2,500 square foot (or larger) house with a lawn to be mowed and a driveway to be show shoveled.
When the kids all grow up and leave, half the house is empty, the mortgage is nearly paid off but the cleaning, mowing, snow blowing and home repairs still need to be done, our musical couple envies their friends who move into a 600-square-foot apartment in a senior community. But there are two problems. There is no room for the piano, and you cannot practice without disturbing the neighbors.
Competitive Analysis
There is only one competitor to the Musician’s Retirement Community in the world, and that is Casa Verdi in Milan, Italy, referenced in the Appendix. Casa Verdi was built by the opera composer Giuseppe Verdi as a home for aging singers, conductors and instrumentalists who were living in poverty after a brilliant career. Of the many applicants, only a few can be selected each year. A committee selects residents based on need as well as the contributions of the applicant to the world of music during his or her active career.
The Musician’s Retirement Community does not directly compete with Casa Verdi, as it is not intended to be a charity home or a non-profit organization. Some active adult retirement communities are in areas where musical activities and communities are readily available, but this will be the first in the United States built around an active musical community.
Marketing Plan
Products and Services
As with all Active Adult Retirement Communities, the product is a lifestyle. We offer a lifestyle reminiscent of a summer at the Tanglewood Music Center or a semester at a college of music, without the auditions, dissertations, and final exams. Making music with your friends is the primary activity. Life is too short to do all the household maintenance yourself.
Pricing
Market research still needs to be done to find the price point that will attract the most buyers. See the Financial Plan for a discussion.
Promotional Plan
Several retirement communities advertise in the Boston Symphony Orchestra program booklets. This is the most obvious place to start. As the only one of its kind in the United States, marketing should include outlets in many major cities and college towns, as well as Internet advertising. See the Appendix for advertisements taken from the Boston Globe and the Boston Symphony program book.