The photograph below is of an advertising signboard on a new
residential development (four units) in Queen Victoria Street, Claremont. The developers of this property are not
satisfied with the marketing efforts of the agents, and have requested that
your team devise a new marketing strategy and plan for the development.
In the next 90 minutes, using the input your have received
in the last two lectures on marketing (check Vula for slides and additional
support readings), your team should prepare the following: -
1.
A strategy as to how you will market the
property (the various things you will do to create awareness and generate sales)
2.
A new signboard for the property
3.
An A4 brochure marketing the property.
Think carefully about your target market, the benefits of
the property, and how you will communicate this to your prospective buyer.
I will be available in the lecture venue for any assistance,
input and advise.
Strategies for Marketing:
ReplyDeleteAs we are looking at marketing a residential property we will have to devise a strategy whereby we attract the attention of local buyers. The Queen Victoria Street property should not be difficult to advertise as it is a main street and there will be many passing cars and pedestrians. As these are 3 bedroom and 3 bathroom apartments it is likely to assume that this development is targeting a small/new starter family. Our marketing strategy will be as follows:
1. Have sale promoters: these promoters will be dressed in the colours of the developing firm and will stand on various corners in close proximity to the development. They will hold large ‘pointing hands’ which they will wave towards the developing property. This will attract passing cars to possibly go look at the development and also slow down passing traffic, be it cars or pedestrians.
2. Handing out flyers: Handing out of the flyers will give people the opportunity to get all the relevant information in one formal document. Information included on these flyers will incorporate information such as contact details (i.e. phone numbers, email addresses, website details, details of head office whereby they can pre-purchase etc.), relevant development pictures – showing the potential buyer the great investment they will be making, the company logo – this will give the buyer a point of reference and lastly relevant details of the development (i.e. the price range, the number of bedrooms and bathrooms, square metreage, viewing days etc.) These flyers should be handed out in nearby shopping centres as well as nearby man street traffic lights. As this is a 3 bedroom, 3 bathroom and study apartment the target market is probably not students but rather a family. For this reason shopping centres which have a Woolworths or any other family grocery store would be appropriate.
3. Planting Flyers: As well as physically handing out flyers in devised locations we will also be planting flyers in real estate offices. This will allow potential buyers to consider our development when searching for a new home. The flyers could also be distributed to nearby houses post boxes. This will allow for greater awareness to be created than just close vicinity awareness.
4. Small signboards: These signboards will be grounded signboards that will lead up to the development. The signboard will have simple text as so to attract passing traffic’s attention, an example may be, “NEW CLAREMONT DEVELOPMENT” and an arrow pointing in the direction of the property. This signboard must be bright and easily readable in order for passing traffic to read quickly and efficiently.
5. The large billboard: this bill board will be located outside the development and generally located in line with the building. The billboard must incorporate only the necessary information that is needed – the price, a picture of the building, the company name, and contact number etc. Again this must be easily readable and be able to be read quickly for passing traffic.
6. A newspaper advertisement: If budget allows us to, we could also publish a small advertisement, similar to that of the brochure, in the local gazette. This advertisement will allow the local community to become aware of the development and possibly pass on the news, as well as consider buying in themselves. A local newspaper advertisement would have to be smaller than that of the gazette, as these are often costly. The newspaper advertisement will reach more people, but not necessarily our buying market.
GROUP 3
ReplyDeleteForty Seven Queen Victoria Street
Basic Description:
4 Units – (3bedrooms, 3bathrooms and Study per unit)
Suburb – Claremont
Price – R2 100 000 – R2 500 000
Marketing Strategy:
Claremont, in the heart of the southern suburbs and situated only 9.5kms south of the city centre, is a bustling and popular suburb of Cape Town. This vibrant district, an important commercial and residential area, well known for its extensive shopping, dining and entertainment facilities - its biggest attractions - is currently experiencing significant growth and development. Home to Cavendish Square Shopping Centre and several corporate head offices, Claremont has entrenched its position as one of the most sought after residential, professional and commercial trading areas in the Western Cape.
We at ABC Properties understand the needs of modern living. As a result we strongly believe that the Claremont area is perfectly suited for the young working individual or family. The ultimate feel and layout of these units is perfectly suited to family living. In addition, given the availability of the study and the ever increasing need to work from home, we believe this to be a major drawing factor of the property. As a result we intend to target middle – high income earners with young children. Another drawing factor of this property is the availability of education facilities in the area – from primary to high school all the way through to tertiary education is catered for within a 5km radius of the property.
As we know, property tends to be aspirational in need, meaning that people generally aim to increase their standard of living as they get older. For this reason, we intend to market and communicate the sale of this property in areas where the assumed general standard of living is equal to, or lower than that of the Claremont area. For this reason, we intend to market this property in areas such as Kenilworth and Rondebosch.
The form of marketing we intend to use will be hands on in the sense that we will hand out the brochure we have created at robots around these areas. Additionally we will have stands set up in Kenilworth Centre, Riverside Mall and Cavendish Square where we will have knowledgeable agents which will be able to walk the potential buyers through the property by means of a virtual tour. In addition to this, ABC Properties will hold open viewing days on Sundays for potential buyers.
Marketing Strategy
ReplyDeleteWe believe that the most important thing when trying to sell property is to locate our target market. The most distinguishing thing about a target market in the property industry is their income. The household income will dictate what price bracket that household will be able to afford. Therefore a simple calculation on a financial calculator will reveal the income bracket that we are targeting in our marketing strategy.
Unit price = R2 100 000 to R2 500 000
Assuming…
20% deposit = R420 000 to R500 000
Therefore, loan amount = R1 680 000 to R 2 000 000
Interest = 11% (prime +2%)
Period = 30 years
Therefore, monthly payments = R16 000 to R19 000
Banks will only allow the mortgage to be about 25% of the persons’ income therefore meaning that the combined income for this household would need to be between R64 000 and R76 000. With a selling price of between R2 100 000 and R2 500 000 we believe that our target market would be middle to upper middle income households.
In this income bracket there people such as; students with wealthy parents and young working couples (who are sometimes called DINK’s; double income, no kids). These two groups will form our target market.
Now knowing our target market we can start thinking about where to market the property. Obviously these two target markets do require different marketing strategies and different places to market.
With young couples we need to try and remember what they are thinking as getting into ‘the mind of the buyer’ is our main priority. As we found out, the units have 3 bedrooms therefore making it perfect for a young couple if they are thinking of having children or already have children. The area is ideal for them as there are lots of schools in the area such as; Rondebosch, Bishops, Herschel, Grooteskuur High School and Rustenburg Girls. We believe that the best place to find these young couples would be in and around Rondebosch at shopping centers. Another good place to market this property to this target group might be at junior schools to try and promote these units as family homes. Each unit has the attributes of a family home (3 bedrooms, space for children to run in the garden, safe apartments etc.).
Next are the students. We know that there are some apartment blocks in Claremont already that house such students so this may be a more difficult market to get into. However we believe that dropping a brochure in the mail boxes of Intaba, The Claremont and Mont Clare would be a good start. Another way to reach out to students is possibly on Linked In. A lot of students in Claremont also utilize the Virgin Active gym so we could put a brochure up on their notice board. Finally, with the permission of some of the high schools in the area (such a Bishops and Herschel) we could put and advert in the newsletter to appeal to the parents of these students. We could also try to appeal to their business sense and the opportunity for investment of the three bedroom flat generating rental that could cover the mortgage.
This is Group 5's from contribution...
DeleteMarketing Strategy GROUP 4
ReplyDeleteThe Forty Seven development is aimed towards the younger family either with or without kids as well a young professional. It would also appeal to the established investor who is looking for property that will earn him consistent returns through renting it to the abovementioned or students.
In terms of the marketing strategy there is certain information that will need to be communicated initially in order to receive interest from potential buyers. Only after this has occurred would the more specific details be conveyed as we would not want to bombard the customer with information or seem too eager to sell.
The strategy can be divided up into several interlinked processes: Product, Promotion, Price and Place. These steps are outlined in the strategy below.
The type of product advertised is essential to communicate as one does not want customers to be confused as this may lead to them becoming disinterested. However, in the same breath one does not want to communicate too much information as this may eliminate a large percentage of buyers before they have a chance to view the property.
It would be important to stress that the units for sale are under sectional title and not separate title as this will eliminate buyers looking for similar developments of the same scale under separate title agreements.
Promotion can be divided up into three sub-categories:
a) Advertising – it essential that the advert reach a large audience without incurring costs above the marketing budget. Mass media such as print media is a good resource to use because the information is conveyed to a large body of potential buyers. In the case of property classifieds found in weekend newspaper supplements this is especially true. Online property classifieds such as Prop24.com and privateproperty.co.za could also be implemented to reach buyers who perhaps do not have access to localised property advertising. Estate agencies would also be employed as they have their own established networks that deals specifically with property transactions. There is a mutual interest when using agents and therefore it can be assumed they would fast-track the sale as much as possible. Lastly billboards and brochures will be used as a means of reaching the large audience mentioned above.
b) Publicity – publicising the product need to be effective yet cheap. It is something that is not easily achieved and relies heavily on the advertising process employed and the effectiveness of it. Word of mouth is a key factor in relaying the information about the product as it costs nothing yet is as effective as paid advertising. Promotions in shopping malls with models and brochures could also be used although there may be a small cost incurred. The reputation of the developer or estate agent is essential to convey as this creates peace of mind for the customer.
c) Sales promotion – the fundamental goal of sales promotion is to highlight the positives of the product that is for sale. In this case we would need to outline the proximity of the property to schools, shopping centres and road networks. It is key to promote these attributes to the type of customer or target market. Lastly we would need to be careful not to over-promote the product as this may create negative impressions about why the property is not selling i.e.: developer has a bad reputation, delays etc.
To conclude this process must be done in the context of the current market environment as this will affect how quickly or slowly the units sell regardless of the quality of the product. If each step is effectively executed then the sale of the units given its location, attributes and price should be successful given a reasonable time period.
Logo
ReplyDeleteWe created our logo from scratch as we did with the logo for ‘Forty Seven’. We felt that this would set us apart from the other groups and give our Brochure and Sign Board a unique look. Also by having logos that are similar we managed to have a concurrent colour scheme and image in both the sign and the brochure. Therefore when people see our brochure and the sign together we want to create a one image in the mind’s eye of our prospective buyers.
Brochure
From the lecture in class we remembered that the most important thing to remember is to leave one piece of information off. Seeing as this income bracket is pretty high, we felt that it is necessary to include the number of bedrooms, and its safe location. We are leaving out the square meterage of the units and any pictures of inside of the units. It is for this reason that prospective buyers will have to give our agents a call. We believe that it is this personal contact that will enable our agents to ‘hard sell’.
Sign board
The sign board is important to keep simple and bold. We wanted to catch the eye of passers-by. Modern simplicity is an important image for us to create for prospective buyers. They need to trust that we are good agents and able to handle their money efficiently.
This is a continuation from Group 5's contribution above...
Delete1: Marketing Strategy – Group 1
ReplyDeleteTaking the selling price of R2 100 000-R2 500 000, the size of the dwelling being – 3 bedrooms, 3 bathrooms, - study. and the location of the property in Queen Victoria Street, Claremont into account, we believe that the market which would be most attracted to this type of residential dwelling are middle to upper income earners ie a couple for example where both parties are earning an income. Most likely target group would be a married couple with a child and have stable well earning jobs.
Price -
R2 100 000 – 2 500 000, 10% deposit (210 000-250 000) prime interest rate is 9.5 so due to risk increase prime + 1 or 2 (10.5-11-11.5) therefore monthly payments will if paid over a period of 30 years at 10.5% interest would be R20 581.00 .
Product-
The explanation of the dwelling is something which plays a crucial role in deterring or attracting potential buyers. We will therefore emphasise the certain attributes of the property which would relate to and attract our target market of middle- upper income earners/family couple style living. The residential dwelling accommodates for the needs of this target market as it consists of 3 bedrooms, 3 bathrooms, and a study well suited for family style living.
Place –
Property is located in Queen Victoria Street, Claremont. This property offers brilliant views of Table Mountain and is situated in a quiet peaceful suburb which is a stone- throw away from Claremont CBD and is in walking distance from prominent schools around the Claremont, Rondebosch and Newlands area offering its owners
Potential buyers will be able to meet and get in depth information with agents at Upton estate agency.
Promotion –
Ways of advertising:
Logo: We have created a simple but effective logo to ultimately differentiate ourselves from our competitors whilst capturing the attention of our target market.
Sign boards: Our small sign boards will be strategically positioned in surrounding areas with all the relevant information about the property. They will be eye-capturing to potential buyers and promote easy viewing and therefore create clear communication lines between those interested and agents involved.
Billboards: Large billboards promoting the company with a small insert of the Claremont property will be placed in close proximity to main transport routes.
Internet: We will utilize the internet to effectively and comprehensively promote the sale of the property as well as generate awareness of the sale for those individuals living outside of Cape Town. E-mails will be sent to the potential buyers within our target market. A virtual tour of the property will be able to be accessed through property sites, e-mails, and the website of agents involved.
Newspapers: Advertisements will be constantly updated in newspaper articles and on pages which our target market are most likely to look at.
Brochures: These will be handed out at robots, placed in post boxes of the potential target market
Strategy
ReplyDeleteGroup 2
Signboard:
The strategy behind the sign board is that it will be a series of 4 signboards that will cover the street front while the development is in course. This will block out the view of the construction site and the tactic is to create awareness through repetitive viewing of the development company and the contact details so that if the prospective client wants to find out more information the details are imprinted as such in their minds. The use of multiple pictures through the 4 sign boards will generate a good perception of what they are investing into. Each board has a background colour, red, green, blue and yellow. The picture of the family and couple show that it is targeted at two sectors of the market being up and coming families and young couples/ newly married. We went with the “from” price range so that the sign will give an indication of the value of the property.
Brochure:
The brochure will be 6 fold type of document. It will give details of the site of the development stating the amenities of the area. It will also give you the details of the many features. This brochure is intended to be distributed to the many affiliated estate agents in the Rondebosch area. We will also leave the 6 fold brochure at various stores at the Palmyra Juction centre, Claremont shopping centre. This strategy will hopefully attract the intended target market to the development within a certain period as we would prefer not to have the development on the market for a long period as the market can fluctuate.
Group 5 has emailed you our Marketing Strategy, Brochure and Sign Board.
ReplyDelete3B Challenge
ReplyDeleteUnfortunately the work that we produced could not be uploaded on the blog so we have opted to send it via email through to your email address, Jonathan. It consists of a feasibility, strategy summary as well as the brochures and billboard model. Enjoy!
The “team challenge” was enjoyable and gave the group an opportunity to apply concepts taught this week as well as some practice with visual media and the communication thereof. The group worked well together, quickly dividing into pairs and proceeding with different sections while at the same time cross-communicating to get a new point of view and fresh ideas. We were therefore able to complete the assignment on time and with exceptional results.
ReplyDeleteGroup 6