advance brand management havelock city
TRANSCRIPT
BRAND STRATEGY & PLAN 2017
AGENDA Introduction to Havelock City Brand Audit – Where are we now? Brand Strategy for 2017 – 2018 STP Strategy Brand Marketing Objectives Brand Marketing Strategy Brand Marketing Mix Brand Competitive Strategy Brand Development Strategy Brand Marketing Budget Evaluation and Controls
Q&A
INTRODUCTION Largest’ residential and commercial real estate development project in Sri Lanka
Luxurious life style “Welcome to your metropolitan lifestyle, Welcome to Havelock City”
BRAND AUDIT
CURRENT BRAND POSITIONING HC positions themselves as the “best apartments for sale in the heart of Colombo
Unparalleled experience of luxury living that combines residential, commercial and industrial uses
PRESENT MARKET SEGMENTS Geography: Sri Lankans, Expats (Non resident Sri Lankans) living in US, UK, Canada, Australia, Foreigners working in Sri Lanka
Age Group: 40 and above Income: High income earners (above LKR 500,000 a month) Occupation: Directors, CEOs, General Managers, Business owners, etc.
IDENTITY One of the largest and most expensive mixed used real-estate development
project in the world
Recognized at Asia Pacific Property Awards
A comprehensive and urban living arrangements in Colombo city
BRAND IMAGE Associated with the luxury and comfort
Plush accommodation, exclusive recreational facilities and unique features such
as the roof garden
Image of luxury living
PERSONALITY
Sophistication and competence
Parent Company-Overseas Realty (Ceylon) PLC
Competitive edge of calling itself a “City” rather than merely “apartments”
BRAND FEATURES AND BENEFITS largest residential project in Asia Pacific. owns largest underground car parks, size of three rugger fields 8 residential towers Number of plush penthouses in residential towers commercial component consist office tower and largest shopping mall
Recreational Facilities play ground cycling track Rain forest garden with cascading pools and lake boulder gardens with water falls Residential apartments with good ventilation and sunlight Realty services
BRAND FEATURES AND BENEFITS Commercial retail building shopping mall hypermarket multiplex cinema shops, café, restaurant
Club house features Function rooms swimming pool spa mini cinema pool bar mini super market Gymnasium
BRAND NAME APPROACH Corporate name -> Overseas Realty (Ceylon) PLC
Individual brand name -> Havelock City
Individual brand name conveys the values associated with the project such as luxury and the concept of a city have resulted in creating brand equity rather than using the corporate name Overseas Realty
SALES PERFORMANCE Overall performance in terms of the number of apartments. Phase 1 – 217 units – sold Phase 2 – 217 units – sold Phase 3 – 297 units – 40% sold Phase 2 – 315 units – 10% sold
BRAND MARKET SHAREIn 2009, the luxury housing stock stood at 783 units and by 2015 the number has gone up to 2,657 units
By 2009, Havelock city held nearly 30% of the total market demand in the luxury segment
FINANCIAL PERFORMANCERs. 4.3 billon revenue recognized from sale of apartments Rs. 321 million Gross Profit from sale of apartments in 2015 More than 22% of units reserved with deposits in Phase 3
SHARE PRICE MOVEMENT
KEY ISSUES Difficulty in maintaining its positioning and attracting sales for the new apartment complex (planned to be completed by mid 2018),
New and elevated levels of luxury introduced by renowned brands such as Shangri La, Cinnamon and ITC
HC located in Colombo 6 Phase 3 complex to be developed facing the Wellewatta flats Competitive parts of the HC project such as the Office complex and Shopping
Mall still not developed
STP STRATEGY -SEGMENTATION
Criteria Variable Segments
Geographic Local/Foreign Local Sri Lankan permanent residentsExpats Sri Lankans who are living abroad (NRI)Foreigners Foreigners living in Sri Lanka and abroad
Demographic Age 18-24 Youth25-34 Young Adults35-54 Mid Aged55+ Senior Citizens
Income level Less than 15,000 Low income earners15000-74,000 Middle income earners75,000-120,000 Moderately High income earners120,000-500,000 High income earnersAbove 500,000 Very High income earners
Family Size 1-2 members Living alone, couples without children (newly married, retired, etc)
3-6 members Nuclear familiesMore than 6 Extended families
SEGMENTATION CONT.Criteria Variable Segments
Occupation Senior Managers and aboveMiddle Level ManagersExecutives
Psychographic Social Class High ClassUpper Middle ClassLower Middle Class
Behavioural Occasion Getting marriedJob related relocationTo admit children to city based schoolsCaretaking of aging parents (children living abroad)Affordability of homesTax benefits
Benefits Sought Desire for a home in a better residential areaConvenient access to schools, shopping, health facilities, office and other facilities (gym, pool, etc)Value for moneyLarge living space and luxury comforts
TARGETING Geographic: Sri Lankans living in Sri Lanka, NRIs, and foreigners living in Sri Lanka
Demographic: Mid aged & senior citizens High income earners & above Family size – any Occupation – Middle level managers & above as well as business owners
Psychographic: Upper Middle Class & above Behavioral: All of the above mentioned occasions and benefits
POSITIONING Reposition brand to “semi luxury, contemporary and modern” apartment provider in Colombo with value for money and unique and distinctive features
BRAND MARKETING OBEJCTIVES Reposition the brand as aforesaid by end of Q2 2017
Execute branding and communications strategy to create awareness, interest,
desire and action between Q3 2017 to Q2 2018
Complete selling all apartments by Q2 2018
Achieve a market share increase by 2% by Q2 2018
BRAND DEVELOPMENT STRATEGY Nature of construction projects Critical factors: Capital, Time & Expertise Risk: Dynamic environment, Innovations, Competition Opportunities: Govt policies on FDI & BOI, Raise in disposable income
Havelock City project life span Launched in 2008, pioneer to introduce modern living concept Asia Pacifica Awards Is brand sustainable? Meaning of Luxury living & Modern projects
Product Development Brand identity: Is it luxurious anymore? Disadvantages for HC: New entries, Competition, location Changes in target market: High income earners to Upper middle class roduct development: Luxury to Semi luxury apartments
PORTER’S GENERIC STRATEGIES Current Strategy Competitors: Astoria, Altair, Fairway holdings..
Commercial office building and commercial retail building in the early stage of 2017.
Focus differentiation Target segments : SriLankans,
Nonresident SriLankans living in US, UK, Canada, and Australia and Foreigners working in SriLanka
unusual needs or serve them differently
“city within city”.
Proposed Strategy New competitors: Shangri-La, Cinnamon Life and ITC..
Focus differentiation with shift in target segments Upper middle class, senior managers
Semi luxury, contemporary apartments
BRAND MARKETING MIX (4P’S)
Core benefit• Comfortable & Safe living
spaces
Actual product• 304 semi-luxury apartments• Garden or sea view• 2,3 or 4 bedroom units
Augmented product• Exclusive access to facilities
at HC (i.e. gym, pool, club house)
• Easy access to retail, dining & entertainment options
• Security systems• Maintenance
Product
BRAND MARKETING MIX (4P’S) CONT. Price Competitive pricing using market-oriented pricing strategy Pricing will be not increased drastically due to revised positioning
Place Both towers are constructed under the HC premises in Colombo 6
Promotion Branding & comm. Plan developed based on AIDA ATL -> radio and TV advertising, print media advertising and billboard campaigns to create awareness
BTL ->more targeted campaigns : direct email marketing, SEO/PPC, Social Media marketing, trade shows & catalogs
BRAND DEVELOPMENT STRATEGY Line Extensions: Phase 3 is an extension to Phase 1 and Phase 2 -> two new towers Considerable amendments to the unit size, finishing and other equipment’s used Reduced pricing
BRAND DEVELOPMENT STRATEGY Brand Stretching: Mixed development project -> not only residences but also Commercial office, Retail mall and service units
BRAND DEVELOPMENT STRATEGY Brand Stretching: Mixed development project -> not only residences but also Commercial office, Retail mall and service units
BRAND MARKETING BUDGETCategory EstimatedQuantity
EstimatedCost per Unit
EstimatedCost (Rs)
Advertising
TV advertisements 8,000,000.00
Radio advertisements 6,000,000.00 Promotional brochures 10,000 150.00 1,500,000.00 International forums 12,500,000.00
Search marketing and Social media marketing 6,000,000.00 E mail marketing 6,000,000.00
Advertising Costs Total 40,000,000.00
Networking
Affiliations 4,000,000.00
Subscriptions 2,000,000.00
Networking Costs Total 6,000,000.00
Audio/Visual ServicesDigital Screen - 5,000,000.00
Audio/Visual Subtotal 5,000,000.00
Other Costs
Other 3,000,000.00
Additional Costs Subtotal 3,000,000.00 Promotions
Event promotions 60 1,500,000.00 90,000,000.00
Promotions Costs Total 90,000,000.00
Public Relations Charity events 4 1,500,000.00 6,000,000.00
Public Relations Costs Total 6,000,000.00
150,000,000.00 ESTIMATED MARKETING BUDGET
EstimatedQuantity
EstimatedCost per Unit
EVALUATION & CONTROL Return on investment (ROI) to assess whether the marketing expenses used for each campaign has brought sufficient amount of sales.
Actual sales The tracking of the increase in the actual sales will also indicate whether the brand plan is in fact working.
Customer Response Carrying out surveys online and in person and general customer service feedback is also essential for the purpose of assessing the success of the brand plan.
Competitor Response The response of the competitors such as Astoria, Altaire as well as the new competitors in the semi-luxury apartment developers
Market share The change in the market share must be closely monitored.
Q&A