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Marketing Management

Final Exam

Marketing Plan

Fine Home Real Estate LLC

EMBA Strategy and Leadership Program

Instructor: Dr. Rami Saleh

Student: Mohammed Nasser

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Marketing PlanMarketing Plan.................................................................................................................................................. 21. Executive Summary:..................................................................................................................................... 32. Situation Analysis:........................................................................................................................................ 3

2.1. Market Summary:.............................................................................................................................. 32.1.1. Market Demographics:........................................................................................................... 32.1.2. Market Needs:.........................................................................................................................42.1.3. Market Trends:........................................................................................................................ 62.1.4. Market Growth:.......................................................................................................................6

2.2. SWOTAnalysis:.................................................................................................................................72.2.1. Strengths:................................................................................................................................ 72.2.2. Weaknesses:............................................................................................................................ 72.2.3. Opportunities:......................................................................................................................... 72.2.4. Threats:....................................................................................................................................7

2.3. Competition:.......................................................................................................................................82.4. Product/Service Offering:.................................................................................................................. 82.5. Keys to Success:.................................................................................................................................82.6. Critical Issues:....................................................................................................................................9

3. Marketing Strategy:.......................................................................................................................................93.1. Mission:..............................................................................................................................................93.2. Marketing Objectives:........................................................................................................................93.3. Financial Objectives:....................................................................................................................... 103.4. Target Markets:................................................................................................................................ 103.5. Positioning:...................................................................................................................................... 103.6. Strategies:.........................................................................................................................................103.7. Market Program:.............................................................................................................................. 11

4. Financial:.....................................................................................................................................................124.1. Break-Even Analysis:.......................................................................................................................124.2. Sales Forecast:..................................................................................................................................134.3. Expenses Forecast............................................................................................................................13

5. Controls:...................................................................................................................................................... 145.1. Implementation:............................................................................................................................... 145.2. Marketing Organization:..................................................................................................................145.3. Contingency Planning:.....................................................................................................................14

6. References:..................................................................................................................................................14

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1. Executive Summary:

Abu Dhabi has ambitious plans to become a truly sustainable world class city, based oninfrastructure investment, large scale of real estate development, world class cultural facilitiesand major events and underpinned by significant population and employment growth. As partof this plan, the Abu Dhabi government has published a number of strategies to set directionof growth to 2030 covering urban planning, economic development and transportationinitiatives. Over the past five years, Abu Dhabi has achieved strong economic development,with a growth rate averaging over 9% per year. Urban growth challenges, resulting fromdemographic, population shifts, etc...

The current global and regional economic conditions ask for Governments, Privet andRegulatory authorities to take a more active role in creating a framework that can rectify andsolve real estate issues. This commitment is at the origin of the Abu Dhabi real estate forecastwith primary aim to follow the needs, challenges and opportunities of the real estate sector inAbu Dhabi. With this Forecast, Fine Home Real Estate LLC contributes to the strengtheningand more transparent regulatory environment by adding a new method to help all sidesthroughout buying and selling properties as well as give them high security and highsatisfaction. Fine Home seeks fair and responsible profit, enough to keep the companyfinancially healthy for the long term and to fairly compensate owners and investors for theirinvestment and risk.

2. Situation Analysis:

2.1. Market Summary:

2.1.1. Market Demographics:

Population growth in Abu Dhabi reflects a mixture of the natural increase in the citizen’spopulation and the expansion of the non-citizen (or expatriate) population. Abu Dhabi’scitizen population has increased and growing by around 4% per annul between 2001 and2009. Having seen higher natural growth rates in the 1990’s the composition of the citizenpopulation in 2009 was dominated by the under-15 category (which accounted for 42% of thetotal population), while the working age population (15-64 year olds) accounted for 55% ofthe total. This age mix and a relatively high birth rate will drive the projected growth of thecitizen population (above 4% per annum) between 2009 and 2014.However, growth in the citizen population has been, and will continue to be outstripped bythe increase in the expatriate (non-citizens) population of Abu Dhabi. Between 2001 and

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2009, the non-citizen population is estimated to have grown by an average of almost 4% perannum despite a fall in 2009 as a result of the recent economic downturn. The previousgrowth rate is expected to be maintained between 2009 and 2014. This will lead to increasethe number of expatriates rising from 1.2 million in 2009 to 1.5 million in 2014, these growthin both part citizen and non-citizen will lead to increase the demand for properties.

2.1.2. Market Needs:

Real Estate market in Abu Dhabi trend to increase properties supply in next 3 years to facethe desire demand in the future up to reach the equilibrium point as following data for supplyand prices:

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2.1.3. Market Trends:

Real Estate Market prices have been rising steadily in the emirate following the UAE's strongeconomic growth during the last few months. The market has repaid investor confidence.Real estate transactions in the emirate were up 63 per cent year-on-year in the first quarter of2014, reaching $16 billion.

2.1.4. Market Growth:

The Abu Dhabi government are keen to concentrate its development of the many naturalislands lying close to the mainland and limit land reclamation to a minimum. The relaxedproperty laws in Abu Dhabi are tempting the interest of local and foreign investors and nowthe popularity is for ready-to-move-in housing then off plan projects. The outlook for oilprices and productivity remain positive, driving GDP growth and generating revenue

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surpluses that can partially be re-invested into the economy. As investor and consumerconfidence is restored, liquidity returns and the government's economic development andother nation building initiatives take hold, Abu Dhabi's market prospects will be favorable.Abu Dhabi has witnessed the emergence of a mid scale market in the past year with theopening of outlets such as Yas Island. The opening of these leisure facilities and the futuredevelopment of new projects is expected to simulate the tourism industry and significantlyenhance and diversify demand. Some of the Residential and Commercial future projects andattractions landscape in Abu Dhabi: Saadiyat Island (2018) Masdar City (2016).

2.2. SWOTAnalysis:

The following analysis highlights the internal strengths and weaknesses of our organizationand the opportunities and threats facing the company in our external environment. We mustwork to improve our areas of weakness. Organizational strengths must be leveraged in orderto capitalize on external opportunities as they arise, and contingency plans formulated inorder to deal with threats presented by the environment.

2.2.1. Strengths:

Strategy: established differentiation strategy. Structure: flat, decentralized structure. Skills: diverse range of service skills within management and staff. Staff: specialized and experienced staff that are motivated and highly skilled. Shared Values: clear and well communicated. strong reputation in UAE market for reliability, perfect service and quality. Solid understanding of real estate market and legal issues Access to high level of reach people Connections with a good hard-money lender like ADIB, NBAD, UNB , ALHilal Bank

2.2.2. Weaknesses:

Strategy: differentiation strategy needs to be more clearly communicated externally. Staff: seasonal turnover requires ongoing training and orientation of new staff. Managing new broker waste time Face a lot of unserious client. No exclusive properties under our management

2.2.3. Opportunities:

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Market: returning growth after a period of slump and get more chance with AbuDhabi vision 2030

Suppliers: strong, long-term relationships established with developers and contractioncompany

Become eligible for broker’s license this year

2.2.4. Threats:

Interest rates on the rise Perfect companion market that will allow a lot of new entrants to get the market A lot of cheaters in the market with unlegal properties for sale or rent

2.3. Competition:

Fine Home is the best company that introduce real estate services in Abu Dhabi thuscompetition is insignificant in this field. Even though here exists some competitor but we canovercome it by the services offered by the company which are offered to vendors, and buyers.All services offered provide this corporation with a competitive edge, as well as we know ofno other firm offering the extensive services we provide. Our competitors performs the realestate service on the properties of the Judicial Department only differing from Fine Homewhich targets all types of properties and client and present totally different product.

2.4. Product/Service Offering:

Fine Home specializes in the real estate market, buy and sale it in the emirate of AbuDhabi and targeting the luxuries and new properties as well as invest and manageproperties form owners directly.

Finding legal solutions for the distressed real estate loans with the banks, anddeveloping mechanisms to avoid legal disputes, which negatively impact the nationaleconomy in the long run.

Cooperating with the developers to market their projects through advertisements Fine Home cooperate with major international Insurance companies to offer insurance

as required by the buyers. Offering buyers a help to get a bank loan to be able to purchase their properties, the

company has already signed an agreement with major banks in the UAE such as AlHilal Bank.

Assure that property will be sold at true market value.

2.5. Keys to Success:

The key success in the real estate business are: Continue to develop ongoing relationships with frequent and new client.

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Continue ongoing staff training and skill development to ensure the highest standardsof service.

Our vast networking capabilities enable us to generate large, well-qualified potentialseller pools, and when teamed up with our superior marketing team, we can ensureonly the best results.

Our process are held in an orderly and professional manner. Our clients can alwaysexpect the best service possible with no exceptions.

Proposing a provision in the real estate regulatory act, which is expected to be enacted,concerning the organization of real estate in the emirate of Abu Dhabi.

Having a steady and huge database of properties buyers and sellers. The ability and knowledge to be updated with the real estate market prices. A reliable and professional way for conducting the transaction process between buyer

and seller Strong senior management with extensive experience.

2.6. Critical Issues:

Critical issues for the Fine Home Real Estate include: Continuing to differentiate from our competition and offering added value to our

clients Retaining our current levels of repeat business and developing further customer

loyalty in a competitive market. Attract new market sectors such as Dubai, Sharjah, etc....Continue to be perceived as

3. Marketing Strategy:

3.1. Mission:

Fine Home Real Estate aims at being the first and one of the largest Real Estate companies inin UAE, with the totally new concept about properties transaction cycle and adding 360 videowhich allow to see your dream propensities from your laptop or mobile at your home toprovide our clients with a swift, strategic, marketing process that will achieve highest valuefor their properties with no contingencies and to execute an aggressive global marketingcampaign to engage qualified national, and international buyers for our real estate marketshare.

3.2. Marketing Objectives:

To continue to communicate our strategic objectives to our target markets effectively. To accomplish our growth targets within the given time and budget.

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Cover the demands of Real Estate in UAE and try to make balance between supplyand demand to achieve equilibrium point in the future..

After the completion and the success of the project a part of the net revenues will bededicated for charity projects.

Expanding the base of the company by converting it into a join to big company andattracting major developers as strategic partners and founders of the company.

3.3. Financial Objectives:

Increase overall company revenue by 15% on the last year. Accomplish growth within the given budget with out exceed. Keep payroll expenses down and reduce the level of turnover within the workforce.

3.4. Target Markets:

Our primary targets is high reach people within all the area in Emirates of Abu Dhabiincluding sub-rubs and islands.

3.5. Positioning:

The Fine Home is positioned as a high reputation real estate company in Abu Dhabi, with ourgreat history of accomplishments and offering a high level of services. Our focus is onoffering our clients added value and differentiating ourselves in our levels of services. Weprovide a high quality properties where clients are valued.

3.6. Strategies:

We cannot survive just waiting for the customer to come to us. Instead, we must get better atfocusing on the specific market segments whose needs match our offerings. Focusing ontargeted segments is the key to our future. Therefore, we need to focus our marketingmessage and our services offered. We need to develop our message, communicate it, andmake good on it. Vehicle advertising: Fine Home will have 10 cars for the agents that will be moving

around all Abu Dhabi. Vehicle ads are the most cost-effective technique foradvertising; they reach a larger audience more often, about 75% of the people feel acompany is more established and more successful when this form of marketing isinvolved.

Brochures: The Company will distribute the high quality brochures and will utilize anewspaper where the brochures are placed in the journal and delivered tosubscribers, sales agents will be distributing brochures. That is a fantastic way too ofbuilding up a valuable prospect list so that you are able to market to them over

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and over. Fine home should also distribute its brochures widely at trade shows andexhibitions.

Newspaper advertising: The Company will create an ad in all the major nationalnewspapers that offer special advertising features. Newspapers are generally boughtby all segments of the population thus newspaper ads reach the majority of homes.

SMS Marketing: Company will carry out properties withdrawal contest, just bysending an SMS to the company's number. The aim of this marketing process is tohelp collecting a large clients' database and increase the company's revenues.

Website Marketing: More people are spending more time online than ever before.Fine Home aims at ensuring that the company is listed on the major websites andsearch engines, such as Google, yahoo, MSN, Facebook, Linkedin as well as manymunicipalities and major companies in the UAE that offers business listings on theirsites.

Radio Advertising: Radio is perceived as the most intimate of advertising mediums,because people are so often alone when listening to the radio, such as when driving toand from work.

Email Marketing: Fine home has already established an in-house mailing list, emailadvertising can be very effective in marketing. This advertising idea as more of a wayto communicate with current customers than to bring in new ones.

3.7. Market Program:

New marketing campaign efforts will be focused for 2015 year, aimed at the launch of thenew website. We will continue to track the results of this campaign for the remainder of theyear.

Advertising Start Date End Date Department

Vehicle advertising: 1/1/2015 31/12/2015 Marketing

Brochures 1/1/2015 1/5/2015 Marketing

Newspaper advertising 1 5/1/2015 8/1/2015 Marketing

Newspaper advertising 2 5/2/2015 8/2/2015 Marketing

Newspaper advertising 3 5/3/2015 8/3/2015 Marketing

Website Marketing 1/2/2015 1/4/2015 Programmer

Radio Advertising One time in week Marketing

Email Marketing Every day Marketing

SMS Marketing2 time in month = 24 time in

the yearsCall Center

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4. Financial:

4.1. Break-Even Analysis:

In our company we do this analysis to help us for allow us to make some profit and knowwhen that will happen in the future, In addition, the main reason from this analysis is to giveus some idea of how much we need to sell before we can start making a profit, if the numberyou are trying to get is too difficult, and increasing your price or cutting your cost and thefigure below show all the details about our Break-Even analysis:

VC + FC = TC1,218,800 + 940,000 = 2,158,800Profit = TR – TC = 7,000,000 – 2,158,800 = 4,841,200

FC

VC

TC

TotalRevenue& Cost

Total VC

Total FC

More

Higher

Loss

Profit

Break evenPoint

TR

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4.2. Sales Forecast:

Our sales target for the first year is 5,000,000.00 AED commission form sale properties and2,000,000 AED commission from rent properties in the first year. These revenues amountsare expected to increase 15% the second year, 25% for the third year, 40% for the fourth yearand 50% for the fifth year.

4.3. Expenses Forecast

Marketing Expenses per YearS.No Description Total1 Dubizzle and property finder 29,0002 Newspaper 120,0003 Radio Media 600,0004 Brochure - Business card - Logo 100,0005 Web advertisements 90,0006 Email Advertisement 2,000

Total Marketing Expenses 940,000 AED

General Expenses per Year (Fixed Cost)S.No Description Total1 Phone & Fax Expenses 48,0002 Salary 250,0003 Offset Printing 4,0004 Entertainment 12,0005 Vehicle Petrol 42,0006 General Maintenance 18,0007 Water & Electricity 8,4008 Miscellaneous Expenses 4,0009 Computer Maintenance 4,00010 Office Rent 350,00011 Car Maintenance 8,40012 Company Website 120,00013 10 Vehicle 350,000

Total 1,218,800 AED

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5. Controls:

5.1. Implementation:

All figures these mentioned before will be monitored on an ongoing basis in relation toprojections versus actuals, and the ongoing plan will be altered or manipulated as necessaryin order to react to and, wherever possible, anticipate external changes to the environment.Annual results will be evaluated at the General Manager's meeting where the structure of theplan for the approaching year will also be established.

5.2. Marketing Organization:

Our marketing department, leads our marketing team in all advertising, promotional andpublic relations related activities. And works closely with the members of the team, toimplement and monitor the effectiveness of the marketing plan and evaluate results.

6. References:

http://www.jll-mena.com/mena/en-gb/

http://upc.gov.ae/?lang=en-US

Fine home international group archive