Question

DR Horton Business Strategy

Assume that D. R. Horton is exploring new revenue growth opportunities while also seeking to reduce its marketing costs.

Q.1. Which geographic area(s) makes the most sense for D R Horton to expand and with which type of homes (e.g., first time/move up; entry level; luxury; active adult

Q.2. Develop a brief marketing promotion plan (include elements of the marketing mix) that can help drive sales while also reducing SG&A expenses further for D R Horton

Answer 1

Assuming that D. R. Horton is exploring new revenue growth opportunities while also seeking to reduce its marketing costs, following are my answers looking at the trends of globalization:

Answer 1:

D. R. Horton is the largest homebuilder in the U.S. Although it is largest builder nationally, they consider home building as a local business for obvious reasons. The geographic area(s) that makes the most sense for D R Horton to expand will be Asia. To be specific China will be the profitable market for D. R. Horton. The reasons for my suggestion are as follows:

• Population of China is growing exponentially; therefore requirement of new homes is maximum over there.
• China market is proven to be the most profitable for such companies as it has promising opportunities.

Entry level, housing should be the first objective for D. R. Horton for expanding their operations in China.

Answer 2:

Brief marketing promotion plan in order to drive sales while also reducing SG&A expenses further for D R Horton will have following elements:

Based on the target market the components of the marketing mix will be as follows:

• Product: Entry level housing,
• Price: Affordable by lower to upper middle class.
• Place: In upcoming suburbs.
• Promotion:
  • Advertising,
  • Word of Mouth,
  • Print media,
  • Social media