Marketing Assignment -Mai Thi Kim Ngan

8/2/2019 Marketing Assignment -Mai Thi Kim Ngan

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MARKETING PLAN 2012 FOR SAIGON RESIDENCE APARTMENT

MAI THI KIM NGAN

OPEN UNIVERSITY MALAYSIA

Author Note

Mai Thi Kim Ngan, MBA Class, Open University Malaysia

Mai Thi Kim Ngan is now at MBA Class, Open University Malaysia

Correspondence concerning this article should be addressed to Mai Thi Kim Ngan, MBA Class,

Open University Malaysia. Contact: [email protected]

mailto:[email protected]

mailto:[email protected]




ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Professor Tran Anh Dung for his supervision and

guidance. Also I would to thank colleagues in helping me to broaden my view and knowledge.

And my deepest gratitude to my parents in supporting me.




TABLE OF CONTENTS

Executive Summary ……………………………………………………………………. Page 4

Current Marketing Situation…………………………………………………………….. Page 5

SWOT Analysis…………………………………………………………………………. Page 8

Marketing Strategies…………………………………………………………………….. Page 11

Action Programs………………………………………………………………………….Page 21

Projected Profit & Loss Statement (2012-2015) …………………………………………Page 26

Control………………………………………… …………………………………………Page 35

References………………………………………… ……………………………………..Page 36




EXECUTIVE SUMMARY

This paper explores Marketing plan 2012 for Saigon Residence Apartment. It includes the

analysis of current marketing situation of the real estate market, product and competitors.

After that, this paper would analyze SWOT to create great marketing plan. We should set

Objective like a key performance index to see how effectively our marketing plan achieved

and this is a motivation for us to do. And we develop our Marketing strategies to meet the

marketing plan objectives. This step needs the strategic and logical thoughts . Having

Marketing strategies, the next step is Marketing actions, detailed activities in Marketing

strategies, who/when/where/what and how is the questions we should make to Marketing

actions. In Marketing plan, we have to calculate profit and loss , specifically the projected

profit and cost when this plan is implemented. It also involves the survival and development

of business. Finally, we have to evaluate Marketing process to estimate Marketing plan or

adjust when necessary.




CURRENT MARKET SITUATION

Real estate market is freezing due to lack of the capital of business and the demand of market. Real

estate companies don’t have enough financial budgets to continue construction of the project. They

have to make a loan from a bank but they don’t have any ability to mortgage.

According to Dr Vu Dinh Anh (2011), “Vietnam’s inflation will be increased approximately by 20%

in this year and rank the first country in inflation in the year of 2012. The reason to lead this cause is

high investment (spend 40% GDP in investment) and low ROI. Because of inflation, Vietnamese

people limit in consuming thereby Vietnam economy has to face not only inflation but also deflation.

Banking interest with the inflation thereby real estate companies can’t hope to the decrease of

banking interest”

Asset bubbles are deflated, the projection of real estate market has increased tens of percentage and

not get the bottom. There have the projection of real estate increase by 50%. This is a good signal to

customers, they can buy real estate with the acceptable price.

The high-lass segmentation in apartments is increased. Because young people earn much more

money and they have preference in living high-class apartments. Beside that, foreigners are working

in Vietnam and their income is around 2000 USD above. They have a demand of staying in luxury

apartments. The standard of luxury apartments is in central city, the interior is luxury and expensive,

the condition of environment is pure, the infrastructure is modern.

Moreover, 71st Decree of Housing Law instructs concretely to make real estate market more

transparent and professional. Therefore, those investors who have real potential can develop in the




future. In the long run, luxury apartments is still a good choice to customers. Because there are more

rich people in Vietnam and they want to live in luxury houses.(Baomoi.com, 2011)

The projection after crisis:

- Real estate investors can’t unite the general working regulation: launching at the same time,

high competitiveness, not be able to sell at the high price, low profit.

- Higher demand of customers and in fact, the quality of product must be good, stable, and

investors sell completely physical product, not a product on the paper.

- Other services include: especially services of apartment increasingly standardized, friendly in

environment, civilization




Table 1

The strengths and weaknesses of competitors

Saigon Residence Saigon M&C Vincom Plaza Sailing Tow

Strengths Permanent property

Acceptable price

Suitable area => easy to

buy, easy to sell

No complex zone => offer

absolutely quiet

Central location –

beautiful view from

Saigon River

High quality in

construction

Located in Dong

Khoi street

Launched

period tim

real estate

Weaknesses Launched in declining

time of real estate

High price (7.000$)

50 years possession

Complex zone =>

noisy place

Very high price

(9.000$)

50 years

possession

Complex zone =>

noisy place

50 years

possession

In figure above, we can identify more detailed about the strengths and weaknesses of competitors,

Now we can analyze the competitors to know their strengths and our strengths to strengthen

advantages and know their weaknesses and our weaknesses to decrease disadvantages.




SWOT ANALYSIS

Strengths

- Suitable area apartment

- No complex zone

- Good price

- Permanent Possession

- Good Service Management

- Favorable location

- Luxury, modern design

Weaknesses

- Launch in the violence time of real estate

Strategy to strengthen: Noisily promotion =>

create brand awareness

Strategy to increase weaknesses: this is real

people, real demand, not virtual ones

Opportunities :

- Difficult things happen but real demand

- Rare luxury aparments in district 1

- 0ld apartments in district 1, mostly

leasing, 50 years possession

Threats:

- The most difficult real estate market in

over 10 years

- Changeable real estate policy

- Dreary picture lasts in the next 10 years,




- Increasingly Foreign investors,

marriage involving foreign factor

- Second-home: successful officials who

have remoted home and they want the

demand of central house

influence buyers, investors, stuck capital

thereby not invest in our project

Strategy to increase opportunities: Identify

proper target customers

Strategy to decease threats: Acceptable price

with quality and the ability of buyer

Reference:

Dr Vu Dinh Anh - Former Deputy Director of the Ministry of Finance (2011, August 1st) Real

Estate Market will hit the bottom in 2012. Retrieved from

http://land.cafef.vn/2011080101001687CA43/thi-truong-bat-dong-san-cham-day-vao-nam-

2012.chn

(2011. Luxury Apartment – Demand is increasing . Retrieved from http://www.baomoi.com/Thi-

truong-chung-cu-cao-cap-Nhu-cau-dang-tang-cao/147/5701681.epi)

http://land.cafef.vn/2011080101001687CA43/thi-truong-bat-dong-san-cham-day-vao-nam-2012.chn


http://www.baomoi.com/Thi-truong-chung-cu-cao-cap-Nhu-cau-dang-tang-cao/147/5701681.epi









OBJECTIVES

Achieve the target sale: sale out 211 apartments after launching in June 2012

Build Saigon Residence brand awareness as a luxury, high-class apartment in Ho chi minh Citizen’

mind.




MARKETING STRATEGY

• Market Segment:

According to The Ministry of Construction. 2008, we can divide apartments into 4 segmentations:

1. 1st Rank Apartment (luxury) is the highest quality apartment: Ensuring the requirements of

planning, architecture, infrastructure, social infrastructure, quality after construction,

equipment and the supply condition of service management are perfect.

2. 2nd

Rank Apartment is the high quality apartment: Ensuring the requirements of planning,

architecture, infrastructure, social infrastructure, quality after construction, equipment and

the supply condition of service management are relatively perfect.

3. 3rd Rank Apartment: the quiet high quality apartment: Ensuring the requirements of planning,

architecture, infrastructure, social infrastructure, quality after construction, equipment and

the supply condition of service management are quite.

4. 4th Rank Apartment: the middle high quality apartment: Ensuring the requirements of

planning, architecture, infrastructure, social infrastructure, quality after construction,

equipment and the supply condition of service management are medium.

Those classifications above are objected not detailed in standard, lead to misunderstanding in

customers’ mind, they feel difficult to identify what 1st

rank or 2nd

rank,..is.

However, Saigon Residence believes in our standard of planning, infrastructure, conditions of

environment, nature, geography, interior and exterior design to position it “1st Rank – high-class

and luxury)




• Target customers:

- The Artist class needs an apartment to go to the show places conveniently.

- General directors who earn 2000 USD/month want to have central houses to go to work

easily

- Marriage involving foreign factors

- Investors who lease and sell to customers

References:

(The Ministry of Construction. 2008. Circular of classification of apartments. Retrieved from

http://www.chinhphu.vn/portal/page?

_pageid=578,33345598&_dad=portal&_schema=PORTAL&docid=67938)

http://www.chinhphu.vn/portal/page?_pageid=578,33345598&_dad=portal&_schema=PORTAL&docid=67938







PRODUCT STRATEGY

Saigon Residence is located in 11D Thi Sach St,

Ben Nghe Ward, District 1, HCM City

- It has 25 floors:

1st to 4th Basement: Vehicle parking

1st to 5th Floor: Trade Center

6th to 24th Floor: Luxury Apartment

25th Floor: Penthouse

Construction Time: January 2012

Completion Time: December 2013

- Transportation:

In this area, customers can go on foot, by motorbike or car. Traffic jam rarely happens because

there are many 1st direction streets.

There is no complication of transportation, no noise and fit to the model of luxury, quiet, central

residence area




- Faculty:

Intelligent Building Management System (IBMS) is the latest generation. All of air-conditioner,

fire alarm, safety, security is centralized control with IBMS. Those systems are integrated fully

information , communication and automated office.

Swimming Pool: 5 star with 80m2 area, it will bring to building citizen comfortably

Barbecue Restaurant: placed at 13th Floor, with excellent grilled food is cooked by 5 stars chef

Gym: equipped with modern machines, placed at 13th

Floor, where people can practice to be

healthier.

Table 2

Apartment Scheme

25 25-01 25-02

24 24-01 24-02 24-03 24-04 24-05 24-06 24-07 24-08 24-09 24-10

23 23-01 23-02 23-03 23-04 23-05 23-06 23-07 23-08 23-09 23-10

22 22-01 22-02 22-03 22-04 22-05 22-06 22-07 22-08 22-09 22-10

21 21-01 21-02 21-03 21-04 21-05 21-06 21-07 21-08 21-09 21-10

20 20-01 20-02 20-03 20-04 20-05 20-06 20-07 20-08 20-09 20-10




19 19-01 19-02 19-03 19-04 19-05 19-06 19-07 19-08 19-09 19-10

18 18-01 18-02 18-03 18-04 18-05 18-06 18-07 18-08 18-09 18-10

17 17-01 17-02 17-03 17-04 17-05 17-06 17-07 17-08 17-09 17-10

16 16-01 16-02 16-03 16-04 16-05 16-06 16-07 16-08 16-09 16-10

15 15-01 15-02 15-03 15-04 15-05 15-06 15-07 15-08 15-09 15-10

14 14-01 14-02 14-03 14-04 14-05 14-06 14-07 14-08 14-09 14-10

13 13-01 13-02 13-03 13-04 13-05 13-06 13-07 13-08 13-09 13-10

12 12-01 12-02 12-03 12-04 12-05 12-06 12-07 12-08 12-09 12-10

11 11-01 11-02 11-03 11-04 11-05 11-06 11-07 11-08 11-09 11-10

10 10-01 10-02 10-03 10-04 10-05 10-06 10-07 10-08 10-09 10-10

9 09-01 09-02 09-03 09-04 09-05 09-06 09-07 09-08 09-09 09-10

8 08-01 08-02 08-03 08-04 08-05 08-06 08-07 08-08 08-09 08-10

7 07-01 07-02 07-03 07-04 07-05 07-06 07-07 07-08 07-09 07-10

6 06-01 06-02 06-03 06-04 06-05 06-06 06-07 06-08 06-09 06-10

This is the scheme of Saigon Residence apartment which has 211 apartments at 6th to 25th Floor.

Each floor has 11 apartments. It marks from 01 to 11 together with the ordinal number of floor.

Model Apartment:




BUILDING BRAND STRATEGY

In above figure, we can see Brand structure. It has Brand Belief which is the reason to believe

that Saigon Residence is a luxury, desirable apartments: no complex zone, permanent

possession with acceptable price and suitable area. Customers feel brand benefit including

Functional benefit and Emotional benefit. A place to live is functional benefit and emotional

benefits consist comfortable feeling and the status of luxury apartment ownership. Brand

Attributes are Logo, Name-card, Brochure and main theme color.

Brand personalization:

Luxury, High-class

Brand Belief

No complex zone

Permanent possession, acceptable

price

Suitable area

Brand Benefit:

***Functional benefits: a place to live

***Emotional benefits:

Comfortable feeling, prove the status of

ownership

Brand Attributes:

Logo

Namecard

Brochure

Color




PLACE STRATEGY

We have the commission 2% per total revenue to Business Development Department to

encourage them to sell out.

Not sale noisily, only in small drops in the

progress of construction, not support credit

banking

Creating scarcity to push price higher

Use Trading Floor service only making valid

housing documents, Business Development

Department will sale.

TARGET

CONSUMERSInconvenient location, no beautiful view will

sell first, beautiful and convenient location

sell after




PRICE STRATEGY

Pricing formula:

Total Building Floor Area 2000 m2

Land Cost 2000 USD/m2

Construction Cost 2500 USD/m2

Operation Cost 500 USD/m2

Total Cost 3700 USD/m2

3700 USD/ m2 above is the floor price. But we did research in competitors’ prices, such as:

Vincom (9000 USD/1m2), Saigon MC (7000 USD/m2), Sailing Tower (5000 USD/m2) and the

differentiation of Saigon Residence, compared to competitors is located in district 1, luxury

infrastructure, quiet and good environment. Hence we feel confident to set the price 6000

USD/m2.

Beside that, we calculated the service prices when customers use those services of Saigon

Residence.

Service Price

Car parking 100 USD/ month

Motorbike parking 20 USD/ month

Trade center rental fee 30 USD/ month




PROMOTION STRATEGY

We don’t need to invest a lot of money in promotion. But at each appearance of Saigon

Apartment, we must make it luxury and outstanding.

We have 4 channels to promoted our product:

1. Event:

Re-launching Saigon Residence Luxury Apartments event

Scale: 150 participants

Location: 11D Thi Sách

Time: June/2012

Objectives:

- Introduce to target customers about Saigon Residence

- Inform to customers that Saigon Residence is re-constructed

- Revenue at event: 10 apartments

Selling event

Scale: 200 participants

Location: Caravelle Hotel




Time: December/2012

Objectives:

- Introduce to customers about Saigon Residence

- Inform to customers that the project has been finished

2. Word of mouth

Brochure: send 3.000 brochure to target customers

Old customers introduce to their friends, families

3. Newspaper:

Published on High-class newspapers as Heritage, Doanh Nhan Sai Gon

Time: 1 month before re-launching Saigon Residence event




ACTION PLAN

Project: Saigon Residence

N

oContent

De

c

Ja

n

Fe

bMar

Ap

r

Ma

y Jun Jul BUDGET

I

Build Brand for

Saigon

Residence

50,0

00,0001 LOGO

+ Final Design+ Edit and

feedback+ Approval

2

Brand Identity:

Namecard,

Brochure+ Summit design+ Edition

+ Approval

design+ Choose

materials+ Print test+ Printest

approval & carry

out3 Building Fence

+ Summit design+ Design

Approval+ Choose

constructor




+ Print test+ Execution

4 Press Release+ Design

+ Approval

II Brochure

5,

000,000

1

Layout &

Picture:+ Summit Design

2 Copywriting+ Summit Content

3

Layout, Picture

& Copywriting

4

Drawings:

(insert)+ Request layout

from Project

Department+ Project

Department gives

layout+ Standardized

Layout in

accordance with

Brand Identity+ Approval layout

5 Printing

+ Choose paper

material+ Printest

6 Delivery

III Website

7,

000,000




1

Summit layout &

Design

2

Summit

Copywriting

Conten

3

Select

Programming

Organization

4

Approval of

website maker

5

Summit domain,

hosting and

quotation

6

Approval of

domain, hosting

7

Upload website

online

V Event

50,0

00,000Relaunching

Saigon ApartmentDesign : banner,

background,

invitation, main

theme

Human ResourceProductionBuffet Preparation

VI Human ResourceInternal Human

Resource+ Set up Internal




Human Resource

+ Submit

Organization Chart

(human, scope of

work, salary,

commision)+ Approval of

Human Resource+ Interview and

Recruitment

VII Finance

1

Set up apartment

price policy

2

Submit apartmnet

price policy

3

Set up service fees

for apartment

4

Aproval service

fees5 Sale Forcast




Projected Profit & Loss Statement ( 2012 –2015)

Unit: USD Year 2011 2012 2013 2014 2015Number of

year 1 2 3 4 5

Total

Revenue of Trade Center

7,7

61,250 2,511,000 2,586,330 2,663,92

Area 6,975 6,975 6,975 6,975

Rental fee 30.0 30.0 30.9 31.8

Revenue of apartment

130,2

00,000 91,140,000 39,060,000 -

Area

2

1,700 15,190 17,360 -

Price

6,

000.0 6,000.0 6,180.0 -

Revenue of Service

7

32,543 237,000 244,110 251,43

Number of Car 50 50 50 50

Rental fee 100.0 100.0 103.0 106.1

Number of Motorbike 1,000 1,000 1,000 1,000

Rental fee 20.0 20.0 20.6 21.2

Total Revenue

138,6

93,793 93,888,000 41,890,440 2,915,35

Project Cost4,3

86,041 - - - - -

- Management Cost

- - - - - -

- Service Cost 4,38 - - -




6,041 - -

Operation Cost

8,6

10,429 -

5,

600 1,091,855 1,264,605 1,264,60

Land Cost

4,00

0,000 - - - - -

Service Cost of Trade Center

62

0,900 - - - 310,450 310,45Management Cost of Trade

Center

93

1,350 - - 310,450 310,450 310,45

-

Service Cost of Apartment

52

6,326 - - 175,442 175,442 175,44Management Cost of

Apartment

52

6,326 - - 175,442 175,442 175,44

-

-

Manangemnet cost of parking

1,48

7,539 430,521 36,627 36,62

Maintaince Cost

51

2,388 - 256,194 256,19

Marketing Cost 5,600

5,

600

Total Cost

12,9

96,470 -

5,

600 1,091,855 1,264,605 1,264,60

Total Profit

125,6

97,324 -

(5,

600) 92,796,145 40,625,835 1,650,74

FINANCIAL ANALYSISSAIGON RESIDENCE

Unit: USDA. GIẢ ĐỊNH VỀ

XÂY DỰNGTheory of Construction

- Land Area 2,000. m2




0

- Construction Coefficient 80%

- Number of basement 4 floor

- Number of construction

25 floor

- Total floor construction

area

42,6

99m2

- Total basement area6,3

68m2

- Total floor construction

area

(not including basement)

36,3

31m2

B. GIẢ ĐỊNH VỀ

CHI PHÍTheory of cost

1/ Land Cost4,000,

000USD

3/ Construction CostArea

(m2)

Unit(usd/

m2)Total

51,238,

800USD

42,69

9

1,200

51,238,8

00

4/ Other costs

Ratio % *

Constructio

n Cost

4,386,

041 USD

5/ Prevention Costs 5,562,

484

USD

*Total Cost ( 2 + 3 +

4 + 5 )

61,187,

325

USD

C. GIẢ ĐỊNH VỀ

KINH DOANHTheory of Revenue




Trade Area CFA tỷ lệ KD NFA

- Trade Service 6,193 65% 4,025 m2

- Apartment21,70

0

82% 17,794 m2

- Rental fee

30

USD/mont

h

-Service cost 4% revenue

- Management Cost 4% revenue

- Apartment Revenue6,0

00USD/m2

-Service cost 4% revenue

- Management Cost 4% revenue

- Number of Car 50 units

- Number of Motorbike 1,000 units

- Rental fees for Car1

00

USD/mont

h.

- Rental fees for motorbike

20

USD/mont

h.

-Management Cost 5% revenue

- Maintainence Cost 0.5% Cc

- Đơn giá cho thuê tăng mỗi năm 3% /year

D. GIẢ ĐỊNH VỀ

VỐNTheory of Capital

Capital5,000,

000USD

Enterprise Cost 25%

Remark

Not including VAT




SUMMARY OF PROJECT PARAMETER




No Content Unit Number Remark

1 Land Area m2 2,000.0

2 Total Floor area construction m2 1,592

3 Construction Coefficient % 80%

4 Number of floors floor 25

5 Number of basements floor 4

6 Total Area m2 42,699

6.1 Basement Area m2 6,368

1st Basement m2 1,592 Parking

2nd Basement m2 1,592 Parking

3rd Basement m2 1,592 Parking

4th Basement m2 1,592 Parking

6.2 Trade Center m2 6,193

1st Floor 1,053

2nd Floor 1,285

3rd Floor 1,285

4th Floor 1,285

5th Floor 1,285

6.3 Luxury Apartments m2 21,700

6th Floor

1 1 a p a

r t m e n t / f l o o r

1065

7th Floor 1065

8th Floor 1065

9th Floor 1065

10th Floor 1065

11th Floor 1065

12th Floor 1065

13th Floor 782

14th Floor 1065

15th Floor 1065

16th Floor 1065

17th Floor 1065

18th Floor 1065

19th Floor 1065

20th Floor 1065

21st Floor 1065

22nd Floor 1065

23rd Floor 1065

24th Floor 1065

25th Floor 1748




CONTROL

• Marketing research

In this step, this called evaluation or marketing control. People usually think that we control

after implementing marketing plan. But actually this process happens before, during and after

marketing plan. Before marketing plan, we have to do marketing research to understand

customers, competitors and market. We have to evaluate how exactly information we collected.

And we draw results from those information, we measure that quality of information after

marketing plan’s execution. In marketing plan, we measure to know whether we have used

human, capital resource efficiently. After execution, we control to know how much budget we

spent to adjust the next plan more suitable.

• Sales analysis.

Revenue and sold apartments, achieve objectives or not

• Budgets.

We have estimated budgets before and after execution how much we have spent on

• Feedback from customers satisfaction surveys.

After purchasing, customers feel satisfied with apartments, service or management or not.

We can do research to understand and solve customers’ comments to make it better

• Customer Relationship Management (CRM) systems.




In real estate, CRM is very important. To make customer satisfied, we have to set up an

efficient CRM systems including personal information, personal ideas, comments to manage. It

is a core value of enterprise asset.




REFERENCES

Dr Vu Dinh Anh - Former Deputy Director of the Ministry of Finance (2011, August 1st) Real Estate

Market will hit the bottom in 2012. Retrieved from http://land.cafef.vn/2011080101001687CA43/thi-

truong-bat-dong-san-cham-day-vao-nam-2012.chn

2011. Luxury Apartment – Demand is increasing . Retrieved from http://www.baomoi.com/Thi-

truong-chung-cu-cao-cap-Nhu-cau-dang-tang-cao/147/5701681.epi

The Ministry of Construction. 2008. Circular of classification of apartments. Retrieved from

http://www.chinhphu.vn/portal/page?

_pageid=578,33345598&_dad=portal&_schema=PORTAL&docid=67938













Marketing Assignment -Mai Thi Kim Ngan

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