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Marketing Plan for Real Estate Company

Executive Summary

The condominium is one of the most significant projects of Fortlife real estate company, and Fortlife is willing to sell 50% of its units in the pre-sale period. The condominium located right on the river and offers 1 and 2-bedroom condominiums priced between $225,000 to $350,000. The building has underground heated parking, an assigned storage unit per condo, and an indoor pool and gym. It also offers an ice-skating rink for winter use by residents, which overlooks the river. We, Falcons company, are the marketing consulting agency that is targeting to win a contract to promote the launch of Calgary’s newest downtown condominiums. 

Objectives

  • To sell 50% of the condominium units (104 condos) in the pre-sale period starting from Aug 1st and ends on Jan 31st.
  • The revenue objective of this marketing communication is $9,360,000.
  • To position Fortlife company as a convenient luxury brand. 

Situation Analysis

Market analysis (include future trends)

  • 12% (1.6 million households) of dwellers live in condominium either owners or renters, 72%   of them are owners, and the rest 28% are renters. 
  • The market for detached homes sales decreased in June by 12%, and that is of attached homes fell by 16%. 
  • The market for apartment-condos slightly decreased in June by 3%, which is significantly less affected in comparison to attached and detached homes. (Brennan Doherty, 2018)
  • Housing sales showed a significant growth year-to-date by 8% vs. 2017, and this growth is led by the growth of condos sales, which shows 36% YTD vs. 2017. (Bob Dugan, 2018)
  • The home prices in Calgary are expected to increase by 1.9% in the third quarter compared to the second quarter, 2018. 
  • Prices will continue to grow in 2018 but with a flow rate not exceeding a 10% increase. 
  • Condos demand shows steady performance in the short run. The downtown area is seemingly attractive to young professionals because of their lifestyle. Meanwhile, the need for smaller units is showing an upward trend. 
  • In respect of seasonal trend, may have the highest number of residential listing and of course have the most top sales during the year. December has the lowest quantity of residential listing and selling. 

Competitive analysis

The market is considered to be a competitor to attached houses market, and detached houses as dwellers buy only one of them to live in. So, all residential homes are considered competitors.

The supply of condos increased significantly in 2018 to 116.036 from 111,198 in 2017 and 108,016 in 2016.

The sales of luxury condos fell by 37% from 2017, whereas the sales of homes cost $1 million-plus increased by 11%, led by stable oil prices since then. (Natale Wong, 2018)

The supply of houses increased from 3,753 to 3,869 in June 2018 YTD, which accounts for a 3% growth of supply. The inventory also increased from 6,669 to 8,820 in June 2018 YTD These facts clarify that there is negative growth in house sales for the same period.

Apex home is one of the leading real estate development companies in Alberta and has 27-condominiums located in the Beltline downtown area, which is finally launched its project 

Only 4200 houses have been sold this year so far out of 9500 homes listed, making the sales-per-listing ration is only 44%.

SWOT analysis

Strengths;

  • The amenities of the condominium, like the underground heated parking, the assigned storage unit per condo, and the indoor pool and gym, are also very valuable to customers and not easily imitated by rival real estate developers, especially in the downtown area, which makes these advantages to be competitive. 
  • The condominium also has a very rare facility of indoor pool and gym. It also offers an ice-skating rink for winter use by residents.
  • The condos size – 1 or 2-bedrooms – and price options the company has, offers excellent flexibility to customers with diversified needs and financial budget to buy a new condo.
  • The flexibility of financing credit terms has been set in accordance with RBC bank, a TD bank that makes buyers have an easy application process and low-interest rate over a long time. 
  • The excellent reputation of the developer as it was established in 1993 with many sound projects in Alberta. Also, this long history makes the company have an economy of scale to get the best prices from suppliers and can make the sale price is highly competitive.
  • The long experience of engineers working in the project makes the quality of everything in the condominium is durable and luxury. 

Weaknesses;

  • High liability of the company towards suppliers and banks, which put the company under pressure to must sell 50% in the pre-sale period to cover the running expenses and to pay liabilities before due time to avoid charging a higher interest rate.
  • No availability of 3-bedroom condo for more prominent families. So, the target market will be limited to small families or bachelors. 

Opportunities;

  • Soaring prices of houses shift customers’ preference towards condos because of their affordable prices in comparison to houses. 
  • The premium location of the condominium, which is located right on the river. This sustainable competitive advantage is highly meeting the scariness or rarity concept of resources evaluation. Also, this location provides easy access to Ctrain stations and bus stations in the downtown area. This location full of the vast majority of restaurants and bubs in Calgary, so the condominium can visit most of them at a convenient time, even without a car.
  • Alberta moves to license builders to protect home buyers from unscrupulous companies, which put the condominium in a good position against the many non-licensed contractors. 

Threats;

  • The shift towards rental condos. 
  • The aggressive competition between real estate companies increased the inventory.
  • The unemployment rate raised to 6% in June 2018 for the first time since the 6.2% rate in October 2017. 
  • The Bank of Canada started to raise the interest rate in July.

Brand profile

the brand here is quite different from the traditional brands like clothes or FMCG products so that the brand will be the developer company itself rather than units.

  • Sales volume trend
  • The developer company has a compounded annual growth rate (CAGR) of 8% in value from 2012 to 2017. 
  • Units Sold in 2017 were 182 condos, which accounts for 6% growth vs. 2016.
  • The total revenue of 2017 was $14,018,000, which accounts for 5% growth vs. 2016. 

Market share trend

  • In terms of condos units sold downtown, the company is a market leader in this regard, which accounts for 23% market share.
  • In Calgary, the market share was 9% of total condos sold in 2017. The full condos sold in 2017 was 2083 units.
  • The market share in the downtown increased significantly from 20% in 2016 to 23 in 2017.
  • After selling 50% of this new condominium, the market share forecasted to be 25%.

Marketing communication

  • The Fortlife company was outsourcing the marketing of its projects in 2017 and previous years too many local consulting marketing agencies, which depends on sales promotion by giving 5% discounts for buyers willing to buy two units and more.
  • The former consulting agencies also had their own Facebook page to promote the company’s projects; plus, it had its strategy of Facebook and YouTube sponsored ads.
  • Neither of the former marketing agencies had experience in experiential marketing nor public relation activities, their strategies less these tools were fair enough for small projects, that is why the developer company decided to look for another marketing agencies have experience in those aspects because this new project necessitates more efficient marketing efforts.

Target market profile

  • Age: 30-44. Which are 360,030 out of the 1,498,780 of the total population in Calgary? (Statistics Canada, 2017) 
  • Gender: males or female
  • Family size: small families with one or two children.
  • Income: $80,000+ annually
  • Occupation: professionals, entrepreneurs, executives who are working in the downtown.
  • Education: College or university graduate
  • Lifestyle: Adventurous people, love living within elite communities, dislike the separated quite home lifestyle, ice-skating amateurs, already renting an apartment, or a condo in Calgary. 

Marketing communication objectives

  • Develop the market of condominiums by changing the attitude of house seekers towards condos.
  • Increase the awareness of Fortlife real estate company’s current and coming projects.
  • Attracting the small to medium families to live in Fortlife downtown condominium.
  • Influence purchase intent by emphasizing on the superior benefits of the condominium and its unique location on the river. 

Marketing communication strategies

  • the marketing communication strategy will depend mainly on local radio channels as the primary media of the advertising strategy with a creative message having a lifestyle appeal and comparative appeal about houses. the second strategy will be experiential marketing by sponsoring family events like Calaway Park Family Fun Friday Night which will be held in July, 27th, Calgary Zoo Guardians of the Wild, and Stephen Ave Summer Stage
  • the vital strategy will be the public relation to ensures product publicity of Fortlife company and Tanta condominium. The objective of the public relation will be word-of-mouth to promote the current project and future company projects as well. We will pursue a borrowed-interest strategy by promoting one to two comedy plays or shows which appeal to young families in Calgary as these kinds of shows would have the same theme of the outgoing and happy lifestyle in Tanta condominium. In which, the public relation role will be facilitating an agreement with sound theatres in Calgary like Laugh Shop. Another purpose of public relations in this regard will be press releases having all the promoting data about the project to be distributed to concerned media in Calgary for publication or broadcasting. 
  • Selling also is an important strategy, Falcons company will pursue the personal selling strategy by conducting thorough training to professional salespersons about Tanta condominium and Fortlife real estate company including its futuristic projects and they will be deployed in events we sponsor like the comedy plays, family gatherings in public parks and the downtown hotspots. The salesperson role will be targeting families in these locations and promote the project with them and finally sign a contract after inviting them to view the project. There will be a 0.05% commission for each deal. 
  • The promotion will be performed by the professional sales team by giving 5% off to customers signing a contract promptly as a rebate, or if they buy two condos or more. The decision of such a discount will be taken per each salesperson’s discretion because if the contract is finalized in a short time, it will save the salesperson’s time to target another potential customer. To support the sales representative role, they will be provided by collateral materials including all the data they need in the promotion and price list and access to accompany any family wishing to visit the project
  • mail as a major form of Direct-response communication will be used to target the designated target audience. The targeting will be processed by data mining to analyze the information about the real estate potential customers and transforms these data to be a shortlist of customers with all relevant information about them in pursuit to send them direct mails promoting Tanta condominium and inviting them to attend the launch event and to visit the project. To successfully implement the data mining step, we will depend on external sources of data of people who have a good history of responding to mail offers. And these data will be provided by list brokers who are specialized in circulation lists by collecting such data and compiling those customers geographically, behaviorally, or demographically. Eventually, there are mandatory recommendations in this regard, like the envelope design, which should be attractive for customers to open it and read our marketing message. The envelope will be colorful and have a picture of the project portraying the happy lifestyle of the dwellers, and also, the slogan is written on it. The letter will be personalized as much as possible with the name and title of the recipient. Because of the outgoing and energetic lifestyle of our message, we will use leaflets with one page each, which have the key selling points with the project features and benefits, and all relevant information about the price, location, and sizes. 
  • and Interactive Communication Planning; the targeting in this tool will be performed demographically by people living in Calgary and nearby suburbs, and by daypart targeting in the evening and weekends after parents have finished work. As the internet has the behavioral targeting feature, we will exploit this feature by targeting people who searched real estate at least two times in the previous week. The objective of the online and interactive communication plan is creating brand awareness by advertising on web portals like Google, YouTube, and Facebook. The ads will be displayed in leaderboard style as this display stretches across the entire top of the webpage; it attracts the attention of many customers to visit the company official page. 

Advertising objectives

  • To achieve an awareness level of 50% of Tanta condominium specifically and Fortlife company generally against our main rival, Apex homes.
  • To portray the outgoing lifestyle of people living in condominiums and have easy access to the downtown governmental services, work, restaurants, and pubs.
  • Altering the consumer preferences to condos by deliberately comparing the energetic lifestyle in condominiums versus the tranquil life in houses.
  • To encourage trial purchase, which in this case the trial purchase is by offering viewing visits to both our target audience or anybody wants to see the condominium in pursuit of enhancing word of mouth and eventually improving the company image to attract potential customers for futuristic projects. And salesperson will accompany everyone visiting the project, demonstrating the condominium features and benefits.

Advertising strategies

  • Social media advertising, like Facebook, sponsored and YouTube ads, will be designed to target our target audience determined early.
  • Experiential marketing sponsorship of selected family events. 
  • Outdoors advertising displayed in the downtown area and near parks that attract families.
  • Direct mail response communication by personalized names to the designated target audience of our marketing objective to be delivered by Canada Post.

Creative plan

Positioning strategy statement objectives 

small to medium-size families who want more than just merely a residence, Tanta condominium is the most convenient and friendly choice. Unlike traditional houses and condominiums, the Tanta condominium provides an extraordinary lifestyle full of life and socialites at a cost-efficient price.

Creative objectives

  • Key benefit Statement: to position the Tanta condominium as a social lifestyle and enjoyable life experience inside and outside the condominium. Families and kids can socialize easily inside the condominium and have access to almost all the entertainments in the downtown area.
  • Support Claim Statements: 
    • The condominium has an amazing set of amenities like the underground heated parking, an assigned storage unit per condo, and an indoor pool and gym. It also offers an ice-skating rink for winter use by residents, which overlooks the river. 
  • The location itself in the downtown, makes their life better by saving time when going to work as most of the work in the downtown area, also the abundance of restaurants and pubs which suits almost all preferences of people living in Calgary. The location is near to different types and levels of schools and also in the center of all governmental services.

Creative strategy 

  • Central Theme: hence the central theme is the glue which binds various creative elements of thecampaigntogether, it will be easily transferred from a medium to another. the central them will portray the happy lifestyle of small to medium-size family and its socialization with other families in the condominium by the Bow Valley river and enjoy a sunny day.
  • Tone and Style: will be upbeat and cheerful Style by the bright colors of the clothes of the actors in the ads, their loud laughs and happiness, and the worm environment inside the condominium. Also, the ads will demonstrate the features and benefits of the ad, either in the tagline or storyline of video ads.
  • Appeal: As the creative mentioned earlier, focusing on connection and socialization within the dwellers in the condominium, the appeal will be a mix of lifestyle emotionally presented and comparative appeal. 

Families in the ad would be presented in a way they are enjoying the modern lifestyle in the condominium with its facilities by making BBQ at the swimming pool, whereas the kids are swimming and playing together in the background. At the end of the ad, a comparison appeal technique will be used to compare the social lifestyle of the condominium to the quiet lifestyle of the house owners, which fits more seniors and more prominent families.  

Creative execution

As the tone and the Style will be cheerful, and the appeal will depend mainly on the energetic lifestyle of families living in the Tanta condominium, we will pursue the Content Marketing strategy to demonstrate as much as possible of our message without the time and money constraints. The execution of the selected plan will be mostly presented in social media like Facebook and YouTube sponsored ads and on the company website as well as our website. The sponsored ads will be devised to target our selected target market in Calgary and will be extended tittle bit to kids as a source of the share of voice to affect their parents to take the decision of moving to Tanta condominium. 

Also, the print ads will have the same central theme of the video advertising of the cheerful and energetic lifestyle and socialization. 

Falcon’s advertising agency will also use the Testimonial technique of families of our targeted target audience telling their fantastic experience of living in the Tanta condominium; this technique will be started in November 2018 as people would be started to live in Tanta condominium and experienced the social lifestyle in Tanta condominium.  

  • We will use a slogan that represents our marketing and advertising strategy. The slogan will be “live better with your family.”

Media Plan

Media objectives 

  • Who: The target audience, as indicated above, will be small to medium-size families, middle class, and their annual earnings $80,000+, adventurous and outgoing lifestyle, and college and university graduates.
  • What: Because of budget limitations, we will not go for TV ads as it will be highly expensive with mass targeting, which is not our marketing strategy. The ads will have a lot of visuals portraying the outgoing and social lifestyles of the condos’ owners.

  • Social media like Facebook, YouTube, and Instagram sponsored ads will be the primary medium in our media plan.
  • The developer company Facebook, YouTube, and Instagram pages will be a mandatory venue for our ads. 
  • Radio ads on local channels that interest our target market will be used per our media plan. 
  • Printed ads brochures to be distributed to potential customers in the downtown area or who are visiting the condominium. 
  • Where: We will mainly target potential customers already living in Calgary city and nearby. And because of the target market is people working in the downtown so the media plan of the printed ads brochures will target offices in the downtown. The sponsored ads of social media will be devised to targeting the people living in Calgary, and nearby fitting in our target market preselected criteria.
  • When: As the plan will cover a total of 6 months and will start Aug 1st, we will begin in August, 1st by social media sponsored ads and the official page ads of Falcon’s advertising agency and Fortlife real estate company. Radio ads will start by Oct 1st and will extend to the rest of our plan till Jan 31st. The radio ads will be in the early morning and after 4:00 pm when people are going to and from work.
  • How: The social media sponsored ads will be devised to target 50,000 people who might be a little bit higher than our target audience, but this will be done to promote the company as well for future projects. As the radio ads will be targeting a limited number of people, the people using cars to go to work and listening to local radio stations, the reach would be 30,000 reaches every month. 

Media strategies 

Target market profile

  • reach our clearly defined target market; the medium also should be studied thoroughly to support this objective. The profile-matching policy will be pursued to achieve our target market. In which, the media selected should be deliberately researched to match our target market. Hence our target market is families, middle-class and parents working in the downtown area, so they most probably reaching their work by car and most of the people going to and from work are turning the radio on. So, local radio channels which attract such people will be an excellent medium to present our ads. Also, the time of these ads will be from 6:00 to 9:00 am and from 4:00 to 6:00 pm on weekdays. 
  •  The social media sponsored ads will be devised in a way to support the targeting objectives. Screening to Facebook users will be pursued based on age, geographical location, and interests. People usually visit real estate companies will be on the top priority of our sponsored ads, mainly if they are located to be in the downtown every working day in working hours. 

 Print ad brochures will be distributed to near offices with a high number of employees in   breaks. They will be presented by our salesmen team to those potential customers discussing all the features and benefits of Tanta Condominium. 

Fortlife Website will be thoroughly redesigned to promote Tanta condominium, pictures of the condominium, and a brief about it will be displayed in the front page of the website, links to video ads will also be available in the front page. Also, links of social media pages of Fortlife company will be displayed at the bottom with recommendation to go through it to participate in these social media discussions and be updated to the initial party preparations. If they have any inquiry, a social media agent will be trained to respond to any comment and to reply to any question. 

Nature of the message

  • The emotional life of the appeal, which is blended with a comparative one, the video ads would be the right choice. Video ads are a vibrant medium as it can transfer emotional messages quickly.
  •  Also, the testimonial technique will be started in November, which makes the Facebook page a valuable medium to run any discussion, monitor the reactions of the target audience, and handle any objection which might occur.
  • Geographic market coverage 
  • coverage will be limited to Calgary city and nearby places in terms of radio ads and out-doors ads.

 Timing of the advertising 

  • schedule of the adverting, flight, will be blitz schedule. In which, we will start the advertising plan aggressively in all media types like Facebook and YouTube sponsored ads, print ads, and radio ads. The advertisings will be the highest in August and September in preparation for the launch event which will be held on Sep 1st. The ads will be decreased considerably to reach the minimum level in January 2019, the date of the advertising plan end. So, it is forecasted that the expenses for August and September will be the highest. 
  • The total unduplicated audience would be targeted by the advertising plan in all media is 50% of the target audience based on age range from 30-44 years old which will be 180,015 (50% of the total 360,030)‎. 
  • However, it is quite a highly challenging target, but it is still attainable due to the efficiency of social media efficient profiling and segmentation capabilities. 
  • Because of the decreasing pattern of our advertising timing through the advertising plan, the frequency will be decreasing as well. The frequency target per August and September target is two hits per week and decreasing gradually till January to reach one hit every two weeks. 

Impression: The weight of advertising in our planned media schedule for the first two months – Growth impression points – will be two hits/week multiplied by the reach of these two months, 2*180,015=360,030 impressions/week.

  • The slogan “live better with your family” will be communicated consistently throughout the six months planned flight.
  • People driving cars to and from work and turning on the radio is highly involved in such medium because there is nothing else to do, but driving and listening to that makes radio ads is highly prioritized over tv ads. Also, social media ads have an engagement feature highly if the ads fit the targeted person’s interests.

Media execution 

  • we have defined our target audience to be males and females, their age from 30 to 44 years old, and using cars to go work, the media selected is local radio channels in which they prefer to listen to rock, alternative, electronic and pop music. So, we will present our ads on radio channels like CJAY92 ROCKS, Calgary alternative, and Q107 channels as these channels format present the kind of music interests the predetermined our target-audience preferences. 
  • the advertising we will use billboards on highways heading to the downtown, and we will be using street-level posters near the offices in downtown with high traffic. Also, we will be using transit advertising like door cards and transit posters to target people heading to and from work without using a train or bus.
  • We are targeting families, so it is quite essential to have mall advertising in malls like Chinook center, which appeals to families, especially on weekends. 

The most significant portion ofthe budget will be directed towards Facebook ads, radio ads because of their high cost and our focus on those tools. They will start in August till October and will be discontinued in November and December and will be pursued again in January. 

Out-of-homes ads will start in September till October, and they will not take a significant portion of the advertising budget because these ads will be limited to only two places.

Mall advertising will be used only in October and December as a reminder message in two malls only and will the smallest sum of money.

Appendix

  1. Flexible financing credit terms with RBC and TD banks.
  2. The condominium located on Bow River in Calgary
  3. The company was working since 1993.
  4. The weak economic position of the company
  5. CAGR) of 8% in value from 2012 to 2017. 
  6. Units Sold in 2017 was 182 condos
  7. The total revenue of 2017 was $14,018,000
  8. The market share in the downtown area is 23% in 2017 and 20% in 2016
  9. The market share in Calgary was 4% in 2017
  10. The condominium has a swimming pool and BBQ area close to it.

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