1.Use Exh. 2, 4, and 5 to assess how Maison Bouygues is doing.
Exhibit 2 New Homes Sales by Four Largest French Home Builders: 1979-1989 Exhibit 4 1990 New Home Buyer Usage and Attitude Survey New Home Sales (in units) The sample comprised 520 couples throughout France between the ages of 25 and 40 who 1979 1984 1989 had purchased a newly built home within the past six months. The sample was balanced such that roughly 25% of respondents had bought their homes from each of the following four sources: MB, Maison Bouygues founded 4,000 3,200 multiregional builders, regional/local builders, and craftsmen. Data was collected through a one- Maison Phenix 15,000 7,500 1,800 hour interview with each couple. Maison Familiale 8,000 3,00 1,200 Bruno Petit 3,000 2,800 600 4A. Buyer Characteristics Source: Company records. . Habits of buyers of newly built homes included the following: Do not visit cinema, theater, and restaurants frequently. Avid television watchers. Average: three hours/day. Value spending time with friends. Exhibit 3 Number of New Homes Built by Size of Builder (1989) Frequently read newspapers and television magazines. The average monthly household income of MB buyers was FF15,300, the same as for Number of Homes Built in 1989 all buyers in the sample. 1-20 21-50 51-100 101+ Total 24% of the sample had owned their previous residence. 66% had previously lived in Number of builders 5,150 500 110 5.829 a house as opposed to an apartment. New homes built 40,850 19,500 7,100 23,550 91,000 of new homes built 45% 21% 8% 26% 100% 4B. New Home Characteristics Source: Company records. 1990 Note: To be read, 5, 150 "referenced"builders built between one and twenty homes in 1989. In 1989, 91,000 new homes were 1987 built by these referenced builders who had exhibition homes, one or more salespersons or, at least, a listing in the Average home size (in m )a 106 126 telephone Yellow Pages. About 49,000 other new homes were built by unlisted "one-man shops" or by homeowners themselves. Average home price (not including land) FF387,000 FF480,000 Average land site price FF189,000 FF240,000 Homes with two or more bathrooms 22% 14% Homes with two or more stories 47% 62% Traditional design 43% 24% "Square meters 4C. Maison Bouygues versus Other Suppliers: New Home Characteristics (1990) Regional MB Buyers Multi-Regional or Local Craftsmen Average home price (in 1,000 FF) 448 435 49 533 Average land price (in 1,000 FF) 228 230 254 249 Average size (in m') 111 114 132 140 Homes with two or more bathrooms 39% 29% 47% 54% Homes with two or more stories 59% 51% 62% 66% Average monthly salary of buyer (in FF) 15,300 14,200 16,000 15,500 1041. Maison Bouygues Brand Image: 1987 versus 1990 4D. Land Plot Procurement 1987 1990 Regional MB Buyers Multi-Regional or Local Craftsmen MB brand image (10 = high, 1 = low) Plot suggested by builder 75% 58% 46% 10% All new home buyers 6.3 5.7 Plot procured independently by buyer 25% 42% 54% 90% MB new home buyers 8.0 5.7 Multiregional buyers 6.1 6.1 Regional/local buyers 6.0 5.2 4E. Information Search Craftsmen buyers n/a 5.6 36% of MB home buyers, compared with 17% of non-MB home buyers, reported receiving information about new homes via mail. . Customers' Builder Selection Criteria 62% of all buyers reported that their initial contact with their builder was either at Total MB Multi- Regional an exhibition or over the phone Sample Buyers Regional or Local Craftsmen Only 3.5% of MB buyers, compared with 10% of non-MB buyers, reported that they Stated as Most Important Criterion (%) (%) (9%) (%) (9%) were referred to MB by a friend or associate. Low price 9 6 10 10 10 Among non-MB buyers, 28% had seen an MB catalog; 27% had visited an MB home; Quality of builder 23 29 29 38 and 24% had met with an MB salesperson Floor plan 7 10 . 66% of MB buyers developed their first financing plan with MB. Most space 8 10 Maximum warranties 35 24 16 66% of Craftsmen home buyers developed their first financing plan with a bank. Competent salesperson 10 11 Othera 11 11 12 4F. Selling Process Includes "Best Equipped Home" (2% for MB) and "Best Land Plot" (7% for MB). 10% of non-MB buyers in the sample had received an MB home price quote. 33% of all buyers considered no alternative price quotes to that of the builder they 4K. Market Segmentation bought from. 36% considered one alternative price quote. 31% considered two or more. 1. Wealthy Savers (24% of sample) Average time from initial contact to closing the sale was 9.5 weeks for non-MB MB Presence Index: 123 buyers and 7.5 weeks for MB buyers. Able to make large down payment. . Often owned previous home. Prefer to buy land site from builder. 4G. Buyer Motivations Average size of new home: 135 m. The most frequently stated reason for buying a new home: "To acquire a home Average salary: FF18,100. where we can feel comfortable-a place that we will own, not rent." Average age: 36. . The second most frequently stated reason for buying a new home: "A home which 2. Wealthy Spenders (16%) we can pass on to our children." MB Presence Index: 44 Warranties expected by buyers (in order of frequency of mentions): Able to make large down payment. 1. Proper construction warranty. Comfortable using debt/credit. 2. Building delay warranty. . Very dependent on builder. 3. Builder bankruptcy warranty. . Average size of new home: 143 m. Average salary: FF19,700. 4H. Maison Bouygues' After-sale Service Average age: 36. 28% of MB buyers were dissatisfied with after-sale service, compared with 18% of all buyers. 12 133. Autonomous Independents (19%) Exhibit 5 Unaided and Aided Brand Awareness: Major Builders (1984-1989) MB presence index: 53 Unaided Awareness High social level. Often former renters. Question: "What are the names of the individual home builders that you know?" Often beneficiaries of family money. Value orientated. Builder Nov 84 Dec 85 Dec 86 Dec 87 Dec 88 Dec 89 . Want input on design. Maison Phenix 39% 379 34% 33% 31% 28%% Average size of new home: 136 m . Maison Bouygues 20% 24% 32% 50% 48% 19% Average salary: FF16,600. Bruno Petit 15% 11% 13% 22% 12% 11% Average age: 33. Maison Familiale 9% 8% 9% 8% 7% 6% 4. New Anxious (25%) Aided Awareness MB Presence Index: 138 Question: "On this list (of major builders), what names of individual home builders do you Qualified hard-workers. recognize?" Often renters who want to stop renting. Do not have much money. Builder Nov 84 Dec 85 Dec 86 Dec 87 Dec 88 Dec 89 Develop financial plan with builder. Maison Phenix 85% 84% 87% 88% 85% 88% Use builder for land site selection. 58% 61% 71% 14% B5% 14% Want to leave property to children. Maison Bouygues 47% 44% 49% 59% 56% 49% Demanding on warranties, price, & quality. Bruno Petit Need to be reassured and assisted during buying process. Maison Familiale 50% 34% 39% 35% 43% 30% Average size of new home: 109 m. Source: Company records. Average salary: FF12,700. Average age: 33. 5. New Responsible (16%) MB Presence Index: 123 Intermediate professionals. Exhibit 6 Maison Bouygues Product Line (1990) Hard workers. Living Area Number of Average Gross . . . Younger. Models Average Price Margin % Sales (units) Shoppers. Compare builders. Home Size (in m) Want to leave property to children. Small 80-100 B FF360,000 FF140,000 55% Sensitive to warranties. Medium 101-145 11 FF448,000 FF162,000 35% Value-orientated Large 146-200 FF650,000 FF200,000 10% Average size of new home: 112 m . Source: Company records. Average salary: FT14,000. Note: Average prices do not include land prices and taxes. Average age: 33. bMB Presence Index = (% of MB unit sales from segment)/(% of total industry unit sales from segment). The higher the index, the greater MB's presence in that segment
