EXECUTIVE SUMMARY

SM Development Corporation (PSE: SMDC) is the real estate arm of the SM Group of

Companies. At the end of 2009, it has employed a total of 162 regular employees. As of

December 6, 2010, its total market capitalization is P63.4 billion and its share price is P8.66.

SM Development Corporation was incorporated in 1974 as Ayala Fund, Incorporated, a

closed-end investment company. It was listed on the Philippine Stock Exchange in March 1975.

In 1986, the SM Group of Companies became the majority shareowner and renamed it to SM

Fund, Incorporated, an investment company that provides investors with professional-managed

vehicle to invest in diversified businesses. In 1996, SM Fund was renamed SM Development

Corporation and its primary business was to pursue real estate investment opportunities.

However, its business of securities investment was retained to provide regular flow of earnings

from the interest and dividends.

In 1997, SM Development Corporation established the SM Synergy Properties Holdings

Corporation to develop the 4.7 hectare mid-rise residential condominium, Chateau Elysee in

Bicutan, Paranaque. Its second project was the development of the Mezza Residences, located

just across SM City, Sta. Mesa.

In 2007, SMDC began developing the residential subdivision, Lindenwood Residences in

Muntinlupa City. The same year, the Berkeley Residences, a 35-story residential condominium

along Katipunan Avenue; and the Grass Residences, a three-tower condominium located near

the SM City North EDSA, were also launched. The Grass Residences is the biggest project to

date by SMDC. Upon completion, it will boast of 5,390 units but still with ample space for its

residents to enjoy the amenities.

In 2008, SMDC launched Sea Residences and Field Residences. Sea Residences is a mid-

rise residential condominium located near the Mall of Asia Complex. For this particular project,

SMDC incorporated SM Residences Corporation in August 2008 and acquired the 1.85 hectare

of land. Field Residences is also a mid-rise condominium located in Sucat, Paranaque. In 2009,

SMDC launched the Princeton Residences along Gilmore Avenue, Quezon City, and the “Big

Four” namely: Jazz Residences (Jupiter Street, Makati), Sun Residences (Welcome Rotonda,

Quezon City), Wind Residences, (Tagaytay, Cavite) and Light Residences (Pioneer, EDSA).

Towering amidst the cityscape, Filipinos can now see various SM Development

Corporation condominium projects – aptly called SM Residences – rising tall and grand above

other structures. SM Residences give options that complement the luxurious and stylish

lifestyle Filipinos aspire for, and giving them greater value for their investment.

Though SM Residences caters mainly to the middle-income market, its products are no

less than five star, high-value investments. Add in the fact that these first-class residential

developments are situated right next to your favorite SM mall or at prime, strategic locations

accessible anywhere within the metropolis make it a truly amazing deal.

SM Residences offers Property Management Services: unit leasing, general maintenance,

and chambermaid services. Units may be leased in your absence or according to your own

terms and conditions. The staff offers general maintenance and chambermaid services upon

request, all for a nominal fee. These value-added services are consistent with a 5-star living

experience.

Inspired by the overwhelming response of the market, SM Residences will soon launch

six new projects in Quezon City, Mandaluyong City, Manila, Makati City, Cainta, Rizal and

Tagaytay City.

VISION AND MISSION STATEMENT

VISION

We envision SM Development Corporation to be a leading developer of world-class residences

in the Philippines, uplifting Filipino lifestyles into one that is convenient, upscale yet affordable,

and environment friendly.

MISSION STATEMENT

SM Development Corporation will realize its vision by:

Ensuring that its homebuyers enjoy the best value for their investment with an upscale

lifestyle, generous amenities, and a safe, secure, and friendly neighborhood;

Providing an excellent after-sales and maintenance service that will preserve and

enhance the long-term value of its residences;

Delivering sustainable long-term growth and increasing shareholder value by exercising

prudence in resource management based on the principles of good corporate

governance;

Becoming an employer of choice, offering comprehensive opportunities for career

growth and enhancement; and,

Assisting and nurturing the communities in which it operates by progressively building

on its role as a responsible corporate citizen;

EXECUTIVE OFFICIALS

HENRY SY, SR., Chairman (non-executive) -- Mr. Sy is the founder of the SM Group of

Companies and the Chairman of SM Investments Corporation, SM Prime Holdings, Inc., SM

Land, Inc. (formerly Shoemart, Inc.) and Highlands Prime, Inc. He founded and opened the first

Shoemart Inc. in 1958, which department store has evolved into a dynamic group of companies

with five lines of businesses–retail, shopping malls, banking, property and hotels and

conventions.

HENRY T. SY, JR., Vice Chairman and Chief Executive Officer -- Mr. Sy, Jr. graduated with

a Management degree from De La Salle University. He is responsible for the real estate

acquisitions and development activities of SM Land, Inc. and SM Development Corporation

which include the identification, evaluation and negotiation for potential sites as well as the

input of design ideas.

ELIZABETH T. SY, ELIZABETH T. SY, Director -- Ms. Sy primarily oversees the SM Group’s

increasing involvement in the tourism and hospitality industry sector. Ms. Sy is also the

President of SM Hotels and Conventions Corporation; Director of SM Land, Inc. and BDO

Private Bank; and Adviser to the Board of SM Investments Corporation.

MS. ROSALINE Y. QUA, President and Chief Operating Officer. A Bachelor of Science

graduate and a consistent dean’s lister of the College of the Holy Spirit. She started her career

in banking and eventually transferred to real estate that saw her working for some of the

industry’s major players in a career that spans more than 20 years.

OCTAVIO V. ESPIRITU, Independent Director -- A three-term former President of the

Bankers Association of the Philippines(BAP) and former President and Chief Executive Officer of

Far East Bank and Trust Company, Chairman and President of MAROV Holdings Inc., Chairman

for Delphi Group, Inc. He is also the Independent Director of Bank of the Philippine

Islands, Pilipinas Savings Bank, Inc., Digital Telecommunications Philippines Inc., Int’l Container

Terminal Services, Inc., Netvoice, Inc. and Pueblo de Oro Golf and Country Club

ATTY. RICARDO J. ROMULO, Independent Director --Atty. Romulo is a Senior Partner of

Romulo Mabanta Buenaventura Sayoc & De Los Angeles Law Firm. Currently, Atty. Romulo is

Chairman and Director of Cebu Air, Inc., Digital Telecommunications, Inc., Federal Phoenix

Assurance Co., Inc., Interphil Laboratories, Inc. and Manchester International Holdings

Unlimited Corp. He also serves as Director of Beneficial- PNB Life Assurance Co., Inc., Goulds

Pumps (Phils.), Inc., Honda Philippines, Inc., Johnson & Johnson (Phils.), Inc., Kraft Foods (Phils.),

Inc., Maersk-Filipinas, Inc., Phil. American Life & General Insurance Co., Planters Development

Bank and Zuellig Pharma Corporation.

ATTY. RICARDO J. ROMULO, Independent Director --Atty. Romulo is a Senior Partner of

Romulo Mabanta Buenaventura Sayoc & De Los Angeles Law Firm. Currently, Atty. Romulo is

Chairman and Director of Cebu Air, Inc., Digital Telecommunications, Inc., Federal Phoenix

Assurance Co., Inc., Interphil Laboratories, Inc. and Manchester International Holdings

Unlimited Corp. He also serves as Director of Beneficial- PNB Life Assurance Co., Inc., Goulds

Pumps (Phils.), Inc., Honda Philippines, Inc., Johnson & Johnson (Phils.), Inc., Kraft Foods (Phils.),

Inc., Maersk-Filipinas, Inc., Phil. American Life & General Insurance Co., Planters Development

Bank and Zuellig Pharma Corporation.

JOSE T. SIO, Adviser to the Board of Directors -- Mr. Sio is the Executive Vice President

and CFO of SM Investments Corporation. He is a Director of China Banking Corporation,

Generali Pilipinas Holding Company, Inc., Belle Corporation, and SM Keppel Land, Inc. as well as

other companies within the SM Group. Mr. Sio is also adviser to the Board of Directors of Banco

De Oro Unibank, Inc. Mr. Sio holds a master’s degree in Business Administration from New York

University, is a certified public accountant and was formerly a senior partner at Sycip, Gorres,

Velayo & Co. (a member practice of Ernst & Young).

SMDC RECENT PROJECTS

DESCRIPTION OF THE PRODUCT/SERVICE:

Joy Residences is an exclusive mid-rise condominium complex inspired by a

contemporary theme. This three tower landmark has an area of 10,364.75 square meters and

has 15 residential levels. It has a podium parking with 342 parking slots with an average ratio of

487 per slot. It is complete with sufficient amenities such as numerous fire exits, automatic fire

sprinkler system, and centralized cistern tank. It has also sewerage treatment plants, cable

ready units and stand-by generator set for common areas. The security is 24/7 with the electric

and water utilities supplied by Meralco and Maynilad.

Situated in the flourishing area of Paranaque City, this development is in close proximity

to important establishments, government and private alike. It is just a minute walk from

Bicutan’s Transportation Hub and will just take one ride to reach your respective work and

entertainment places such as Makati, Alabang, Lower Bicutan, Sucat, Pasay and Lawton.

FLOOR PLAN:

LOCATION:

The property is located at Dona Soledad Ave., Bicutan, Paranaque City at the back of SM

City Bicutan.

TARGET CUSTOMERS:

The potential target prospects of this residential project are families who are looking for

a condominium unit where workplace, entertainment centers and other essential places are all

nearby and easily accessible.

SWOT ANALYSIS:

STRENGTHS

SM Development Corporation, its developer, is owned by a well known businessman

and managed by a famous holding firm. The people will hardly distinguish its brand for it

sticks with the name of the most famous department store in the country.

The SMDC projects before became famous and successful so it will not be hard to

introduce Joy Residences to target prospects.

WEAKNESSES

The site is behind a big establishment so that it is not seen by motorists driving along

the great Dona Soledad Ave. that’s why it will not create awareness unless advertising

and sales promotion strategies will be implemented.

Compared to other condominium residences, there have few price variations offered by

the property. It is true that customer taste preferences are varied in several customs.

Segmenting this may narrow the market, but it will cater more kinds of customers.

Natural and accidental disasters such as earthquake and fire are great issues to face by

the developers and settlers of a condominium unit. Those who will occupy the higher

parts of the condominium building must be taught safety procedures very well during

these disasters.

OPPORTUNITIES

There have many industrial sites, government agencies, and business establishments

around so that the top executives of those institutions who are looking for a condo unit

to live in will primarily consider the residence.

The travel time from the residence to main workplaces such as Makati, Bonifacio Global

City, and Alabang is so short that it will greatly attract potential buyers even from the far

places. Entertainment centers are also nearby such as malls, amusement parks and

other places of leisure so that it will be suitable for families that are hardly getting time

to bond together.

Although smaller in area compared to single detached residences, it is complete in

amenities such as clubhouses, grand lobbies, playgrounds and swimming pools that are

accommodating that’s why it has a great competitive edge along other residential

developments.

Its flyers and advertisements as well as other promotional tools are available in every

SM Supermalls especially in Southern Metro Manila Area. We know that these malls are

visited by several people. With that, they create awareness among the target prospects.

THREATS

The risk of high competition cannot be eliminated. The sprouting number of residential

homes developed by several real estate companies are continuously increasing that’s

why it is hard for the customers to choose between these properties.

Many people still prefer to build own house because they can’t afford to acquire a

condo unit or they don’t like the design or maybe they just don’t want to live in an

elevated place.

Since it is located in Metro Manila, some people thought it will be a ‘noisy’ place. They

prefer to acquire residential homes in Greater Manila Area such as Laguna, Cavite and

Bulacan because they believe it is quieter there yet the commercial and industrial

development is progressive.

Some people think it’s impractical to live in condo units. No land title, smaller space, less

privacy among neighbors, and higher cost are some implications that may strike

potential buyers in deciding to acquire a property.

SELLING PRICE:

UNIT PRICE AREA PRICE 20% 36 mos.

1 BR 24 sqm. 1,611,000 8,747.80

1 BR w/ Balcony 27 sqm. 1,817,000 9,955.19

1 BR Deluxe w/ Balcony 32 sqm. 2,120,000 11,731.11

MARKETING OBJECTIVES:

Pursuing target sales of at least 100 units a year.

Making awareness similarly with other prestigious SMDC projects.

Building a harmonious relationship with several communities as well.

Assuring a fair competition with other real estate companies.

Attaining international recognitions in different aspects.

MARKETING STRATEGIES:

Create goodwill by sponsoring family planning seminars and giving a guide entitled

“How to buy a first home” that will help those families to think of the practical and

efficient ways to acquire own house.

Designing leaflets that has environmental and medieval theme that are eye – relaxing

that can stimulate the feeling of decompression

Upgrading the advertising strategies in several media such as the television, radio,

magazine, newspaper as well as other medium by crafting bigger and more attractive

print advertisements and producing funny and humorous TV ads.

Hiring more competent salesmen that have more skills of persuasion and wider sales

experience to be able to win possible target customers.

Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Gen. Santos Ave., Upper Bicutan, Taguig City

Republic of the Philippines Polytechnic University of the Philippines TAGUIG CAMPUS General Santos Avenue, Lower Bicutan, Taguig City

Integrate more advertising campaigns in social networking sites such as Facebook,

Twitter as well as other sites.

Reach more possible target customers in E – Mail engines such as Yahoo, Gmail and

MSN and Blogging sites such as Tumblr.

Implement the sales promotion strategy of giving 50% less price Toyota Vios car model

for those who will acquire 1BR unit; 75% if 1BR w/ Balcony and free if 1BR Deluxe w/

Balcony.

Implementing lower installment rates in acquiring condominium units by giving a

privilege to the customers a down payment of 10% instead of 20% and longer payment

term of 72 months instead of 36.

Conducting an open house activity to be attended by some invited people –

businessmen, professionals, families, or students and giving them a commission when

they introduce someone who will purchase a condo unit.

Facilitating a housing project for the poor families who had no own houses especially

the victims of demolition. This will serve as the Corporate Social Responsibility of the

company that will not only create a great goodwill but to help the less fortunate.

Polytechnic University of the Philippi

TAGUIG CAMPUS

General Santos Avenue, Lower Bicutan, Taguig City

Group 6

REAL ESTATE MARKETING MANAGEMENT

A MARKETING PLAN IN SMDC JOY

RESIDENCES

Submitted by;

Froilan A. Celestial

Patrick James Cruz

Paolo Ardiente

Christine Ann Maullon

Jayvee Valdez

Ricky Caberic

Submitted to;

Prof. Danilo Valenzuela

JULY 19, 2011

TABLE OF CONTENTS

Executive Summary…………………………………………………………………………………………………………….1

Vision and Mission Statement…………………………………………………………………………………………….3

Executive Officials…………………………………………………………………………………………….………..………4

SMDC Recent Projects………………………………………………………………………………………………………..6

Description of the Product/Service…………….……………………………………………………………..……….8

Floor Plan……………………………………………………………………………………………………………………..……8

Location………………………………………………………………………………………………………….…………..…….10

Target Customers………………………………………………………………………………………….……………….….10

SWOT Analysis………………………………………………………………………………………….…………………….…10

Selling Price……………………………………………………………………………………………….……………….……..12

Marketing Objectives…………………………………………………………………………………………………….…..13

Marketing Strategies............................................................................................................14