Market Assessments and Consumer Research for Mid-Market Life Plan Communities
York Place, an Intergenerational Mid-Market Life Plan Community, York, SC
The Client
Still Hopes Episcopal Retirement Community (“Still Hopes”) and The Episcopal Diocese of South Carolina engaged WellPointe to conduct a market feasibility assessment, consumer research and due diligence planning related to the formation of a comprehensive development plan for a potential Mid-Market residential community.
Still Hopes is an Episcopal-sponsored, non-profit Life Plan Community in Columbia, SC, that serves 700+ members on- and off-campus with 650+ staff members. Still Hopes’ vision is to “exemplify a new expectation for senior living.” In 2021, they began a partnership with The Episcopal Diocese of South Carolina to explore the development of a senior living community for the middle market on an 80-acre campus previously occupied by The Episcopal Church Home for Children in York, SC. To honor the historic use, purpose and mission of the children’s home, a component of the community will continue to serve children.
The new community will be called York Place, an Intergenerational Life Plan Community.
York Place provides an opportunity for Still Hopes to expand its mission and fulfill its vision of serving a broader member-base, providing product-line diversification, and serving a new and different geographical and socio-economic market in Upstate South Carolina that is presently underserved.
Market Assessment & Feasibility Study
WellPointe worked with Still Hopes leadership to define the project and its scope, with special attention to appropriate housing values, as well as annual income and net worth of prospective members. WellPointe presented a comprehensive report that defined and mapped the Primary Market Area (PMA) and included:
Demographic profiles for the market area
A review of competitive and comparable communities within the market area
Market area segmentation and demand analysis
Market analysis report
Conclusions and recommendations
The market assessment’s major conclusion supported 200 – 220 independent living residences in an initial phase of development well within an acceptable project penetration rate of ~5% and market absorption rate of <10%.
Consumer Research
Following the positive outcome from the market assessment, WellPointe conducted consumer research with seven in-person discussion/survey groups at a central location in York, SC, meeting over two weeks with 150 interested, qualified mature consumers. With input from Still Hopes leadership, WellPointe developed a PowerPoint presentation to facilitate discussion and explain and illustrate information about the potential community. Throughout the discussion, each participant completed a confidential survey booklet designed to collect personal information, answers to questions, expressions of opinions, ranking of potential characteristics, features, benefits, products, services, programs, and facilities, as well as 15 unique positioning elements specific to the York Place project.
The survey included questions about health and care services, entrance fees, types of preferred residences, and responses to preliminary pricing. The survey also explored preferences for amenities such as dining, wellness and life enrichment, and philosophical approaches to a development and operational plan.
WellPointe’s customized process was designed to:
Validate the market demand for the proposed community and
Generate, evaluate and refine key planning elements for the York Place development plan
Unique aspects of Mid-Market Research
When developing a Mid-Market Life Plan Community, certain operational efficiencies and planning considerations must be incorporated to achieve the necessary moderate, mid-market pricing model. WellPointe considered the following while testing potential initiatives, amenities, housing preferences and special features for a mid-market community:
Shared organizational elements
Shared governance & management
Shared corporate resources
Shared central services
Shared services through partnerships
More moderate cost considerations
Architecture
Engineering
Specifications
Equipment
Construction
Amenity spaces
Furnishings
Finishes
Marketing approach
Moderate service levels
Specifically, the survey tested and gathered responses to the following 20 key elements:
Life Plan Community Concept
Sponsor, Owner, Developer & Manager
Location & Site
Types of Residences & Designs
Amenities & Common Areas
Potential Dining Styles
Open Dining Concept
Outdoor Amenities
Architectural Design Vernaculars
Services & Programs
10.a. Intergenerational Children’s Program
Future Health & Care Services
Entrance Fee Plans
1Preferences of Type of Residence, Entrance Fee Plan and Price Range
Home Care Services
Positioning
Brand Name
Personal Levels of Interest
Timing of Personal Moves to York Place
Referrals and Friends to Receive Information
Comments
Benefits of Discussion Group Research
Discussion groups are collective by design. Unlike individual interviews, the discussion group method of consumer research allows participants to interact and influence each other in a group setting and during discussion and consideration of concepts, ideas, and perspectives. Different than the use of a mailed survey or interview, discussion groups offer a distinct advantage in that they are flexible by design and produce substantial qualitative data and desirable information.
Further, WellPointe’s in-person approach to consumer research builds an initial marketing platform for later marketing leads. The personal experience fosters opportunities for education and buy-in as potential future residents learn about trends related to creating, planning, developing, marketing, and operating such a community, and they are able to contribute their own valuable ideas, insights and advice.
WellPointe’s comprehensive support for the York Place consumer research included tabulated data and a report of key findings, major conclusions and recommendations that will become the basis of a due diligence development and multi-year marketing, brand and sales plan.
Conclusions and Recommendations
In addition to verifying market demand and predicting the probability of success, the combined research studies guide the sponsoring organization on:
Project scope & scale
Phasing scenarios
Pricing plans
Residential unit sizes (square footages) and mix of types of residences
Architectural design vernacular(s)
Prioritization of amenities
Service & program offering
Thoughts on assembling a professional development team to carry out the planning
Product positioning & potential branding elements
Regulatory considerations
Preliminary marketing & sales advisory
Additional potential product-lines to be offered (e.g., home care, concierge physician clinics, behavioral health services, etc.)
Philanthropy formation