Riverwalk Marketing Plan
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Riverwalk Marketing Plan

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A market research plan developed to save a struggling strip mall in Riverside, California.

A market research plan developed to save a struggling strip mall in Riverside, California.

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    Riverwalk Marketing Plan Riverwalk Marketing Plan Document Transcript

    • SAVING RIVERWALK: A MISSION FOR THE AGES A Proposal To: Riverwalk Plaza JOHN PABUSTAN LA SIERRA UNIVERSITY December 6, 2011
    • Executive Summary Turner Riverwalk is a collection of buildings and businesses attempting to befinancially successful in the city of Riverside, California. The city is the 12th mostpopulated city in the state and by far is the biggest city within the Inland Empirewhere it is located. Riverside is unique in the fact that although many cities withinthe Inland Empire are associated with labor defined by distribution or production,Riverside is known for affluence and a varying job market. The US Census quickfacts describes that the average household income for the city is $41,646 a yearwhile the most comparable city in the Inland Empire in terms of size, SanBernardino, is $31,140 a year. This shows a market within the area with the mostdisposable income of any other city listed within the Inland Empire. The city ofRiverside’s official website www.riverside.ca.gov actually lists the 2010 numbers tobe much higher at $67,299 a year for the same average household, whether this bean embellishment or the truth it shows more than double the average income of thesecond largest city in the Inland Empire and the 19th biggest population in the state.It is their clear intention within their own website to show that Riverside is abeautiful place to live and is different than the cities located around it. It is in thisaffluent city however, that location plays a key. Turner Riverwalk is located off the 15 freeway on Riverwalk Parkway in abustling area for consumers. The Tyler Mall is within walking distance of the area, aswell as a hospital in Kaiser Permanente, and different strip malls located around theTyler Mall. The 15 freeway also allows for several stores within a 5 mile radius ofthe shops to also be a reasonable choice for competition. It is through our ownstudies that we have found that there are a few ways to improve the failing sales atthe stores at Riverwalk if the retailers and professionals successfully chose a targetmarket. It is possible to improve the overall financial stability of the shops throughsimple promotions and advertising, yet to keep sales consistent it seems thatRiverwalk must employ the use of niche marketing to corner consumers. Thecompetition in the area is fierce and clearly staying the course is not working. Giventhe situation and the way we see the problem, Riverwalk must market itself as a unitand work towards bringing in consumers as a whole. The varying array of options ata consumer’s disposal in the area makes the Riverwalk option unappealing becauseof its lack of convenience in comparison to other areas. The key to marketingRiverwalk against its competitors is creating an area where amenities are availablethroughout the plaza as individual appeal is clearly not working. The basic conceptof company competition is meaningless when they are vying for only a fewcustomers at a time. We propose that Riverwalk can be changed by defining a targetmarket, making simple changes to the format, and making Riverwalk “theexperience” the centerpiece of the formula. 2
    • Situational Analysis Turner Riverwalk was originally a project by the Turner DevelopmentCompany to make an industrial development in a section of Riverside that lackedany sort of classification. It was reported in the August 29, 2005 Real Estate Journalthat the original layout of the entire complex changed as the area changed.Riverside as stated before has the highest amount of disposable income within theInland Empire and while in production a series of high end houses were built in thearea directly around Riverwalk. The average home in Riverside ranges from$300,000-$500,000 with the newer homes being built in the area being $500,000 ormore. The homes around Riverwalk were selling for extremely more than thenormal new home and an opportunity to cash in from these high end consumersseemed apparent. It was also in 2005, when a trend was emerging where a shortageof office buildings for the booming city prompted several other developments to addboth retail and office components. Riverwalk although, still being built as a sort ofindustrial development, attempted to follow the trend trying to create more profit.Riverwalk’s aesthetics today still look as if the original intention was to buildindustrial developments, but no one could have predicted the housing market tocrash as well as a lack of entrepreneurship to take the office spaces. The currentsetup of the buildings is very unformidable as many buildings face backwards to thestreet and a lack of eye-catching aesthetics make consumers only drive past. Thelocation is dominated by the nearby Galleria at Tyler that since 1970 has only seenone anchor store fail in its many years. The Tyler mall is Riverwalk’s biggest competitor. It offers several amenitiesand stores that range from car washes to safety escorts for female consumers. It hasthree anchor stores which consist of big name retailers Macy’s, J.C. Penney, andNordstrom’s. It has every conceivable type of store ranging from a movie theatre tonearly every kind of ethnic food. It has great communication between stores as iteven offers a store wide gift card. People are greeted with internet access, a kid’sclub, and even a postage area. It is a one stop shop for all who come to the mall. It isaesthetically pleasing as well as has parking available for most consumers. This is acompetitor that is time tested and well recognized. Riverwalk must focus on itsadvantages and attempt to be as competitive with the Galleria at Tyler as possible. Riverwalk has one major advantage in comparison to the Galleria at Tyler butit involves tapping into one major market. The shops are located adjacent to LaSierra High School and La Sierra University. The University has an untapped marketthat does have disposable income, in the under recognized college student. One ofthe biggest success in the Riverside area is the University Village located near theUniversity of California, Riverside that caters to college students. The UniversityVillage offers office buildings, retail, and specialty stores much like Riverwalk yet ismore successful in every aspect. The official website lists the amount of students,faculty, and staff that are possible customers as well as the enormous amount oftraffic that is produced on just an everyday basis. The site lists 531, 118 cars dailywhich can be millions of people considering that it is only the number of cars not the 3
    • number of people within those cars. This does not name the number of studentswalking to the facility or other patrons who might frequent the area. The modelshows a simple idea, have several flagship type stores located on the outsideperimeter visible to the many consumers. Denny’s, Del Taco, and Starbucks areamong the first stores visible on the premise. Educational or office type suites suchas the Kaplan facility are usually located on the 2nd floor of the premise with otherstores being the focus. These flagship stores are posted prominently on the websiteand even more are extremely visible at University Village. The premise also clearlycaters to college students and we feel with the right know we can implement thissame model to Riverwalk. Turner Riverwalk clearly cannot change the formation of their stores but canoffer La Sierra University students the same type of amenities that University Villageoffers UCR students. We feel that with better word of mouth, better advertising, andwith all shops working in unison much like University Village that Riverwalk can beLa Sierra’s area for college students to congregate. There is a lack of recognition ofthe name “Turner Riverwalk” and as such we need to focus on creating brandawareness. The following sections provide further details about our market study,the demographics, trends, SWOT analysis, and keys to success in the macro/microenvironment.Market Summary Turner Riverwalk’s market consists of both business users attempting to finda lucrative location in the city of Riverside and a consumer market that consists ofnearby residents especially La Sierra University college students. The particularsegments being targeted are first and foremost college students, local residents, andpossible entrepreneurs in the healthcare as well as the retail industry.Market Demographics Turner Riverwalk focuses on both the consumer market and businessmarket. It should specialize in a target consumer of the normal college student andany business that will bring in further patrons to their shopping center.Consumer Market Within the consumer market, the primary target is the normal middle toupper-income college student. This target market often varies incredibly fromindividual to individual but for the most part many have a lower income than mostnormal consumers. The key to this market is they are often strapped for time anduse much of their income on school related activities. It would be most profitable tooffer things such as Wi-fi, study areas, and quick food to increase consumer loyalty.The secondary market of residents would be drawn if the area became popular andword of mouth spread of a great place to shop. The primary age range we arelooking to attract is from 17-25 with other residents coming because of theatmosphere. 4
    • Business Market Within the business market, the primary target is finding willingentrepreneurs to take some of the empty store fronts that will in turn attract morecustomers. The problem begins in the fact that as a whole, Riverwalk is not seen asa lucrative place for business and finding willing entrepreneurs is easier said thandone. It will take showing that the new model for Riverwalk will be successful andthat shops will be profitable. Secondly, once a series of entrepreneurs decides totake the real estate and customers are flowing through the premise a healthcareprovider must be found to take the medical building. The order of entrepreneurs vs.a healthcare provider is not set in stone but we feel that with the growingcompetition from the adjacent Kaiser Permanente a health care provider wouldwant to see established results before coming to the shops. The series of statisticswe have taken from La Sierra Students shows that more modern amenities such asYogurt which received 80% of our student vote and Wi-fi which received 76%percent of the vote would make the shops more appealing. The most appauling statis that14% of students have never even heard of Riverwalk. Statistically because ofthe total revamping of Riverwalk’s advertising a certain market trend cannot beproduced but the numbers from our research show that in all likelihood a focustowards students will lead to consumers. These consumers would lead to morebusinesses wanting to be a part of Riverwalk.Market Needs Our target consumer the college student has two real needs that encompassthe entire college experience. They need to be able to 1) maximize time and 2)experience an inviting atmosphere. The first measure entails that things such asstore openings follow their needs. The average store opening at Riverwalk is 11amwhich does not take into the early and late night of a normal college student.Students are usually up early and stay up later than most people in the area. Theaverage close time of the shops is 11pm when most college students are admittedlyup late studying. Students would love a place to study at all hours that has Wi-fi,groceries, ATMS, and even prescriptions yet all these amenities fall short atRiverwalk. There is no unified way to get around the shops in a time productivemanner for a student. We feel that if all stores worked in conjunction with oneanother much like the Galleria at Tyler and offered longer hours students would feelat home studying at the shops. It would also provide the second need which wouldbe a better atmosphere as students would be surrounded by other students. This isthe secret formula of University Village, if students are catered to naturally a betteratmosphere will be created making better word of mouth. We feel that the stores must simply implement more ways to maximizestudent time at the shops creating a consumer with loyalty to Riverwalk. A studentwho is treated well at the shops will most likely continue to frequent them and bringothers to the area. If all stores were to forget their competition with one anotherand focus on creating loyal student customers through discounts as well as studentinteraction through on campus ventures, Riverwalk would most likely thrive. SALSU 5
    • the student union at La Sierra University as well as faculty events could provelucrative to helping the La Sierra community recognize that it is in their best interestto visit Turner Riverwalk. The business community would have to follow suit ifclearly students frequented the area because of all the changes made for the targetmarket. It is very clear that students are unaware of Riverwalk but with the righttype of advertising as well as directive things would improve in the area.Target Market Growth La Sierra University has only been established as a University since 1990 andbecause of this an actual growth trend or amount of consumership is hard topredict. The true actuality of the situation is that the number of students at theUniversity has increased exponentially in the last year. The school for the first timeever has topped 2,000 students and this is a record for attendance since the 2003year when approximately 1,900 students attended. The school’s budget projectionsare through the roof according to the official La Sierra University (citehttp://www.lasierra.edu/index.php?id=3738) and with all the publicity currentlysurrounding the school because of graduate and undergraduate programs theschool is certain that the number of students will increase in upcoming year. It iswithout a doubt, a lucrative market and the risk is seemingly minimal as La Sierrawill at least continue to replenish students creating a consistent market forRiverwalk. The only down-side is the fact that students are often unpredictable asthey follow trends while competition from other strip malls may also contend withRiverwalk’s appeal, but this appeal can be increased if time is invested in creating a“full” student experience. The real immediate weakness to the plan is how muchmoney can be invested to make this change in experience.SWOT Analysis By using the SWOT analysis, various areas of the Turner Riverwalk projectcould be analyzed into more details. Turner Riverwalk has several strengths onwhich it could build on and weaknesses that could be improved. There are severalopportunities for Turner Riverwalk to undertake and threats that could harm thecompetitive advantage of the business.Strength Good Location: Turner Riverwalk is within driving distance to the nearest highway and has a nearby recreation park. Facility been built: The buildings are new and it is a conducive area for customers. Close proximity to University, residential, and active adults home: Potential customers to the retail business. Provide state-of-the art facility: The buildings are equipped with the latest technological infrastructure. 6
    • Weaknesses Lack of Awareness: Most people area unaware of the existence or the purpose of the Turner Riverwalk. Insufficient or inadequate marketing campaign: The developer has not done enough advertisement or decoration in order to promote the plaza. Vacancy of buildings: The vacant buildings do not bring revenue for the developer and gives a bad image for the area. Unwilling to add changes to current buildings: Inflexibility of the developer to add or make changes to the original buildings. No anchor stores or potential stores to attract customers: Lack of key stores that would generate a stream of loyal customers. Premium leasing rates: The leasing rates are higher as compared to other plaza. Poor building layouts: For example, the hotel is located inside the plaza, behind all the major buildings.Opportunities Economic recovery: The pickup in economy should improve the current condition of the businesses in the plaza and the possibility of attracting new tenants. Growth in certain business sectors: Certain businesses that are expanding might be interested in finding a place to lease. Increase in consumers: If new retail stores were being introduced or the current stores offered better deals, more customers would be coming in.Threats Other plaza offering better terms: A potential threat that might draw current or potential customers away from Turner Riverwalk. Current customers moving after contract is over: A possible threat as current customers might look for better lease terms. Close proximity to hospitals, supermarkets, and shopping malls: Fierce competition from places that might offer similar services as the plaza. 7
    • Competition The competitors of the Turner Riverwalk Plaza would be compared based onthe location, lease rates, building class, lease type, and year built of the office,medical, and retail buildings. By comparing Riverwalk Plaza with similar types ofbuildings, it could be benchmarked against the industry standard.Retail Competition Riverside is a hotbed for several businesses because of the high amount ofincome for normal residents. The main competitor as explained above for theRiverwalk shops is the Galleria at Tyler. Vendors and merchants located around itare left to fend for secondary business that may be drawn from the mall or thatmight see stores in passing. Riverwalk is not visible from the Tyler Mall meaning itcannot even get this secondary market that seems to thrive several businessesvisible from the Galleria’s location. It is therefore, very important to spread word ofmouth for the Turner Riverwalk just to stay competitive. The mall offers everyamenity that a college student would want especially the maximization of time. Ithas Wi-Fi, food, valet parking, and even a place to take one’s children while working.It dominates the local area in terms of sales and is one of the most known locationsin Riverside. The stores all work together and it creates an incredible product. Riverwalk will not topple the Galleria at Tyler and must instead attempt to becompetitive with the nearby smaller retailers for the secondary market created byboth the Riverwalk’s traffic and a keen marketing sense. There is enough room inthe market for two primary retailers but Riverwalk must make itself that secondretailer. First, Riverwalk must control the La Sierra University market and thensomehow promote itself enough to defeat all the secondary strip malls in the area. Itis the maximization of convenience that no other strip mall has cornered that willset Riverwalk apart. Riverwalk just needs to be able to offer some of the bestamenities in comparison to other areas vying with the Galleria at Tyler. The modelcreated by the University Village will allow for Riverwalk to be highly successful ifthey have a consistent customer base from the University. 8
    • Business Office Competition Turner Downtown Ontario Riverwalk Riverside Business CentreLease Type Modified Gross Full Service Modified GrossBuilding Class A A AYear Built 2008 1984 2004Location Close to residential Located in Located in the & LSU Dowtown & close business district to UCRRental Rate: $2.85 $2.00-2.35 $1.15-1.35SF/MonthRental Rate: $34.20 $24-28.20 $13.80-16.20SF/Year From the table above, it can be seen that the lease rate of Riverwalk plaza isconsiderably higher than its competitors. The building class of all the buildings isidentical, only the year in which they are built is different. Furthermore, thecompetitors of the Riverwalk plaza are strategically located in a busy hub. It wouldbe tough for Turner Riverwalk plaza to attract more tenants unless it makes changesto its price policy.Medical Business Competitors The Medical 16465 Sierra Corona The Village Park at Lakes Medical Arts Medical Riverwalk Parkway Plaza Center Riverside, CA Fontana, CA Corona, CA Riverside, CALease Type NNN Modified Gross NNN NNNBuilding Class A A A AYear Built 2008 2006 2010 2010Location Located near 91 Located near Located near 91 Located near & 15 Freeway, 210 Freeway, & 15 Freeway, 215 Freeway, residential, residential, golf residential, residential, & businesses, club, & hospital school, & businesses, schools, & hospitals hospital hospitalsRental Rate: $2.15 $2.35 $2.00 $2.00SF/MonthRental Rate: $25.80 $28.20 $24.00 $24.00SF/Year 9
    • The above table shows that the lease rate of the Medical Park at TurnerRiverwalk is considerably competitive in terms of pricing with similar buildingqualities. The building classes are identical and the years built and completions areroughly within the past 4 years. The competitors of Turner Riverwalk Medical Parkare strategically located in areas with expected medium to high population growth,high traffic, and near major hospitals. In order to attract perspective tenants, TurnerRiverwalk could negotiate lower pricing or other promotional deals to make theMedical Park more appealing.Product Offering Our product offering are office, medical, and retail building spaces, with thefollowing features:Turner Riverwalk Situated on 73 acres in Western Riverside and Corona market A one million-square foot premier mixed-use business development that incorporates high quality office, medical office, R&D, and flex industrial buildings Employee-oriented amenities including meandering trails in a scene setting of lakes, streams, outdoor gathering areas, gazebos, and basketball courts. Only a few minutes away from the 91 and Interstate 15 interchange Cross commute accessibilityOffice One of the largest master-planned office campuses in the Inland Empire Approximately 500,000 square feet of newly constructed office space Two 4 story Class “A” office buildings with the latest in technology and design Office buildings are visible from the 91 Freeway but set in the serene award winning landscape environment of Turner Riverwalk Class “A” office space for sale or lease from 1,300 to 200,000 square feetMedical Eight state-of-the-art medical buildings for a total of 100,000 square feet of medical office space Fully customizable suites in phase II ranging in size from 1,300 to 20,000 square feet Array of ownership options: purchase, lease, or lease-to-buy Two 2 story buildings conveniently located within walking distance to the Shops at Riverwalk and the Hampton Inn and Suites Hotel 10
    • Located with convenient access to Riverside Community Hospital, Corona Regional Medical Center, Kaiser Permanente of Riverside and Parkview Community Hospital Strategically located in close proximity to La Sierra University, senior housing developments, and over 2,300 new housing unitsRetail Newly completed Shops at Riverwalk Approximately 100,000 square feet of upscale shops, high quality restaurants, and a 132 executive hotel Set among the award winning lushly landscaped and park-like settings of Turner RiverwalkKeys to Success A major key to success in the marketing of Turner Riverwalk is the properimplementation of an advertising campaign. Turner Riverwalk is one of manychoices for the consumer markets and business markets. The second key to success is the proper promotion of these building spacesthat are vacant as well as the ones that are in use.Critical IssuesTurner Riverwalk faces several critical issues: Increased competition Gradual recovery of an economic recessionPossible escalating costs to meet certain requirements for buildingsMacroenvironment and MicroenvironmentMacroenvironment: According to the 2010–2011 Southern California economicforecast, certain industries are expected to grow despite the slowdown in economy.The outlook for Riverside-San Bernardino County shows that the Health services,Educational services, and Finance & Insurance are the only industries that wouldcreate new jobs. As consumers spending are starting to pick after the recession,retailers are showing positive growth. Hence, the macroeconomic environment isshowing signs of growth despite the slowdown in economy.Microenvironment: Factors that are likely to affect Turner Riverwalk includecompetitors and customers (consumer and business) 11
    • Marketing Strategy The marketing strategy is to design a plan that would support the futuresuccess of Turner Riverwalk Plaza. Furthermore, this strategy would createawareness and image while sustaining the long-term growth of the business.Through the use of the marketing mix and other tactics, it would reach out to thetargeted market segment and educate them on the benefit and value of the product.Due to the budget constraints, we would reach out to our targeted segment throughmagazines, newspaper advertisements, flyers, and personal marketing. In the nextsection, it would explain the mission, marketing and financial objectives, targetmarkets, positioning, strategy, marketing mix, and marketing research plan.Mission Our mission is to promote the long-term success of Turner Riverwalk Plazaby creating the much-needed image and awareness of the product. This plaza offersstate-of-the art facility that is conveniently located within close proximity to aresidential, highway, and a university. There is a high potential for growth for thisPlaza if we could build on its competitive advantage and promote it.Marketing Objectives Create awareness of the product and build on its image. Attract targeted market segment into leasing the buildings. Create a student-centered lifestyle in the shops area. Develop a loyal stream of consumers.Financial Objectives Develop an affordable marketing plan. For the 1st and 2nd year, attract tenants through aggressive promotion of lease term. For subsequent years, generate sufficient revenues for developer. 12
    • Target MarketsRetail Target Markets On the consumer side, the target market is the normal La Sierra collegestudent who needs a place that maximizes their time in terms of food, study, andleisure. These consumers prefer trendier places to reside that look to cater to themin things such as internet connectivity and affordability. They are extremely picky inthe sense that they have several options but other than the University Village nearthe University of California Riverside, no other strip mall takes the time to maketheir experience beneficial to their lifestyle. The business market, that we would target in terms of becoming retailers areone’s that we feel could not only afford the rent but would be willing to work withthe other retailers already on site. The only way Riverwalk would survive is ifcollectively all shops worked as one to get students to come to the area. Businesseswould all love to be a part of such an expanding market but selectivity would allowfor the new entrepreneurs to buy into a system much like University Village. We arelooking to bring in a healthcare provider that would use the whole health facilityand entrepreneurs with the right type of products for students. It would be an idealsituation for any retailer if the student market becomes cornered.Business Target Markets For the office buildings, the target market is businesses that specialize in theservice industry. The size of the business is generally small to mid-sized company.According to the 2010–2011 Southern California economic forecast, certainindustries are expected to grow despite the slowdown in economy. The outlook forRiverside-San Bernardino County shows that the Health services, Educationalservices, and Finance & Insurance are the only industries that would create newjobs. Furthermore, with the new Financial Regulation & Health Reform being inplaced, there would be a need for more services in areas such as Accounting andLaw. Due to the increase in infrastructure projects in the State, there is a demandfor Architecture & Engineering firm. So, the target markets for the Turner Riverwalkoffice buildings are the Educational, Finance & Insurance, and Business &Professional Management businesses located in Inland-Empire.Medical Target Markets For the medical office buildings, we have separated and categorized thetargets on the consumer side and the corporate business side. On the consumer side,the primary target markets are upper-income private practice medical professionalsand medical specialists from hospitals and mid-size medical groups. We target theseindividuals who need practicing space or expansion needs. These consumers wouldprefer a competitive low-priced lease or sales tag in an area with high demand forspecialists and reasonable population growth. On the corporate business side, thetarget markets are mid-sized medical groups to large-sized hospitals who want to 13
    • expand their service area. These are buyers or leasers who would want to expandtheir services away from their primary service location or would likely start a newmedical group.PositioningRetail Positioning Using the correct set of advertising and changes to the area, we arepositioning the Turner Riverwalk as the most college student friendly area near theGalleria at Tyler. We are focusing the ability for students to make it a one stop placeto shop as the key and showing that all students will maximize their time on thepremise.Business Positioning Turner Riverwalk Plaza offers Class A office buildings that is equipped withstate-of-the art facility which could accommodate the need of the customers. Theoffice building has a stunning design and is currently one of the larges officecampuses in Inland-Empire. Furthermore, it is within driving distance to thefreeway and has nearby amenities. The office campus of Riverwalk Plazadifferentiates itself from the competitors by providing superior values at aconvenience location.Medical Positioning In utilizing the location and the availability of different types of buildingspaces within Turner Riverwalk, we are positioning the medical office buildings asthe most convenient, modern, resourceful and versatile buildings for consumer andcorporate business use. We are positioning our focus on these reasons: Convenience: strategically located with access to major surrounding hospitals (Riverside Community Hospital, Corona Regional Medical Center, Kaiser Permanente of Riverside, and Parkview Community Hospital), near major freeway interchanges (91 Freeway and Interstate 15 Freeway), and within a mixed use business development of Turner Riverwalk (Shopes of Riverwalk and Hampton Inn) Modern: state-of-the-art medical buildings with a modern design setting Resourceful: strategically located within newly developed community and close proximity to schools (La Sierra University, La Sierra Academy, La Sierra High School, and California Baptist University), population growth within the area is expected to increase 7.3% in 5 yearsVersatile: fully customizable suites ranging in sizes from 1,300 to 20,000 squarefeet, different options of ownership (purchase, lease, or lease-to-buy). 14
    • StrategyRetail Strategy Because of the intensely competitive nature of the market within the region,our most clear strategy is to make sure that we corner the La Sierra student market.It is an expanding market and can prove to be quite lucrative. The best way to tapthat market is to offer things that no other area can offer other than the nearbyGalleria at Tyler.This includes: Internet access ATMs from major banks Longer Store Hours Earlier store openings Student Discounts Student Coupons Riverwalk wide offers More Places to Study ConvenienceBusiness Strategy In order to attract businesses to the Turner Riverwalk office buildings,various marketing strategies should be implemented. The strategies woulddifferentiate Turner RiverWalk from its competitors and draw potential customers. Advertising in the Inland-Empire business magazines would expose Turner RiverWalk to businesses that might be interested in a finding a place to lease. Advertising in the local education magazine would expose Turner Riverwalk to institution or private educator that might be interested in finding a place to lease. Advertising in the Inland-Empire newspapers classified section would cater to a wider range of customers that might be interested in finding a place to lease. More awareness to be done over the Internet by promoting the Turner Riverwalk website and making it more interactive for possible customers. 15
    • Medical Strategy There are new competitive opportunities which will arise from new health carereforms and the changing demographics of baby boomers. Hence, there will be agrowth in the medical care industry as more health care will be available to newpatients. In order to attract the attention of consumers and large businesses,strategic adverting should be implemented that would promote Turner RiverwalkMedical Park and its amenities that are available in the area. Some suggestions inrelation to advertising would include the following: Websites: using internet websites (i.e. loopnet.com) that list the information about Turner Development and/or Turner Riverwalk Medical Park Internet/Mobile Phone ads: advertisement shown on various websites that is relevant to new development, medical offices, medical industry related, etc. Yellow pages: used for local coverage, wide reach, and low cost in terms of advertisement Newspapers and community ad postings: using newspaper and community ad postings can get a good local market coverage E-mails and direct mails: using this type of advertising, we would gain the advantage in no ad competition from other competitors. The reader would be more aware of Turner Riverwalk. Billboard signs and outdoor signs: using signs near high traffic and close proximity of Turner Riverwalk Medical Parkway. Magazines: advertising through magazines mean high geographic and demographic selective. This could bring more attention to Turner Riverwalk by those aspects. Real estate: using real estate could help in advertising through agents which may have connections in other areas around the state and country. City commerce: listings of newly developed areas and vacant buildings that is available. Consumers and Businesses can look into these listings to find out more information Community/County fairs: bringing business and consumers together at a location for potential growth and knowledge base of Turner Riverwalk. Conferences: using conferences by real estates and health organizations to offer information.Hire a marketing firm: using an external source to do help advertise.Marketing Mix The next section is the marketing mix, where different tactics would besuggested and implemented for the Riverwalk Plaza. 16
    • Product Turner Riverwalk Plaza offers three different types of buildings that cater tothe business, medical, and retail customers. The plaza is a well-designed businesspark with amenities such as a water park, fountains, outdoors tables & benches, andbeautifully landscaped environment. Furthermore, there is adequate parking spacethroughout the plaza. The two Class A four story towers is equipped with the latest technology thatcould accommodate the need of the business customers. The space for lease or saleranges from 1,300 to 200,000 square feet in the Business Towers. Lastly, the officebuilding has a modernistic design and is currently one of the largest office campusesin Inland-Empire. The Medical Park of Riverwalk is a state-of-the-art facility and has a total of 8buildings for the medical space. The buildings are two stories high and the size ofeach suite ranges from 1,300 to 20,000 square feet. It is also within close distance tothe Hampton Inn & Suites Hotel and the restaurants at Riverwalk Shops. The Shops at Riverwalk offers a wide range of retail services in the area.Currently, twelve out of the twenty-one suites are occupied with restaurants, afitness center, a physical therapy, a spa, and a nail shop. The space for lease rangesfrom 1,002 to 1,434 square feet in the retail suites.Place Turner Riverwalk Plaza is situated in an area where there is potential forfuture growth. It is nearby the 91 Freeway and the estimated traffic count per dayfor vehicles passing by Riverwalk Parkway and Collett Avenue is around 37,630.Furthermore, the plaza is adjacent to La Sierra University and the EsplanadeApartments. The plaza is also within driving distance from the surroundingresidential homes and the new Active Adults Apartments. The estimated populationwithin a five-mile radius from the plaza is 228,553 with an average annual incomeof $ 64,354. From a study done being conducted by the developer, the populationwithin the 92505 area code is expected to grow by 3.6% in the next five years. As forRiverside County, the growth is 10.6% and 1.3% for the State of California. Theplaza is located nearby four hospitals such as Parkview Community Hospital, KaiserPermanente, Riverside Community Hospital, and Corona Regional Medical Center.Lastly, the surrounding area of the plaza has amenities such as a water park,fountains, outdoors tables & benches, and beautifully landscaped environment.PricingRetail Pricing The idea of pricing for the retail aspect of Riverwalk, is clearly up in the air asit would depend on how much cohesion would take place among businesses. Thebusinesses currently residing in the area must buy into the idea that they must all 17
    • work together to corner the student market. It would take an overall price decreaseand the ability to have area-wide savings. All retailers must work to use theirresources to band together in the most important aspect of the situation which isadvertising. Riverwalk must market itself as an experience and as such the benefitsfor all stores involved would lead to more customers. It is imperative that all storesbuy in and the benfits would be great as advertising expenses would be lessened byall involved. Market trends and comparisons are not available for the region butbecause of the rapidly expanding La Sierra University population it wouldundoubtedly lead to more customers if done effectively.Business Pricing The lease rate of the Turner Riverwalk office buildings is higher as comparedto its competitors. The annual lease rate for Riverwalk office building is $34.20 persquare foot while in Downtown Riverside it would cost $24-$28.20. It would betough for Riverwalk plaza to attract new tenants as the competitors are strategicallylocated and are offering attractive prices. In order to be competitive in this field,Riverwalk plaza should look at the option of reducing its price or matching to that ofthe competitors. Apart from the reduction of lease rate, Riverwalk plaza could offerpromotional value to its current or prospective tenants.Medical Pricing The lease rate of the Turner Riverwalk Medical Park buildings is pricedcompetitively when looking at other competitors with similar qualities andamenities. The location and the amenities that the Turner Riverwalk offers has anadvantage over other competitors in that the location is just walking distance to TheShops at Riverwalk and the Hampton Inn Suite. Turner Riverwalk could have theoption to negotiate lower pricing policies to help attract new medical businesses.Another option is to formulate a promotional strategy with their pricing shouldTurner Riverwalk decide to keep their current pricing.PromotionConsumer Promotion The main promotional objective is to get students to have a higher brandawareness to the name “Turner Riverwalk” as it does not even seem to register tosome La Sierra students. We would need a collective effort from Riverwalk to workwith SALSU and to have things such as emails/flyers to give to students just to knowit exists. Student discounts are the only way a student would look twice or if thepromotion was to focus on the type of needs that student’s have on campus. It wouldtake messages filled with Wi-Fi, longer hours, earlier openings, and student successthat would entice a student just to go the premises. Signs, flags, and even brightercolors could be used to catch the eyes of students passing the area. It would just takesome capital as well as a united Riverwalk for these types of ideas to take fruition.Business/Retail and Medical Promotion 18
    • In order to attract new tenants into the Riverwalk Parkway plaza, thedeveloper needs to promote heavily by offering attractive leasing terms. Bychanging the current lease terms and making it more favorable towards the tenants,it could potentially draw more tenants. This Plaza offers superior buildings and isstrategically located in a high-growth area, the only factor lacking is pricepromotion. Below are some recommended lease terms in which the developer mightchoose to undertake.Lease Term ANew Tenants Lower current lease price by 35%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 8 -10 yrs. 1st year: Offer Free Rents. 2nd year: Offer Free Rents. 3rd year: Start Full Payment.Current Tenants Lower NNN Fees. Lower current lease price by 20%. Duration of Lease Term: Unchanged.Lease Term BNew Tenants Lower current lease price by 25%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 5-7 yrs. 1st year: Offer Free Rents. 2nd year: Free rents for the first six months and 50% payment for remaining six months. 3rd year: Start Full Payment.Current Tenants Lower NNN Fees. Lower current lease price by 15%. Duration of Lease Term: Unchanged.Lease Term C 19
    • New Tenants Lower current lease price by 15%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 3-5 yrs. 1st year: Free rents for the first six months and 50% payment for remaining six months. 2nd year: Start Full Payment.Current Tenants Lower NNN Fees. Lower current lease price by 10%. Duration of Lease Term: Unchanged. By offering attractive lease terms, it should attract tenants that would be wilingto stay at Riverwalk Plaza for the long duration. The more favorable the lease term,the longer it would be for its duration. The developer should generate adequaterevenue from the long-term investment of the tenants.Marketing Research The marketing research is conducted in order to support the marketing plan.Retail Research:Business Research: According to the 2010–2011 Southern California economicforecast, certain industries are expected to grow despite the slowdown in economy.The outlook for Riverside-San Bernardino County shows that the Health services,Educational services, and Finance & Insurance are the only industries that wouldcreate new jobs. So, the target markets for the Turner Riverwalk office buildings arethe Educational, Finance & Insurance, and Business & Professional Managementbusinesses located in Inland-Empire. From the research, it indicated that the leaserate of Riverwalk plaza is considerably higher than its competitors. In order to becompetitive in this field, Riverwalk plaza should look at the option of reducing itsprice or matching to that of the competitors.Medical Research:Financials Ever since the completion of the Turner Riverwalk Plaza in 2008, a hugemajority of the main buildings have been vacant. The financial goal is to gain newtenants as vacant buildings would not generate revenue for the developer. Due tothe current economic recession, Turner Riverwalk has been hard pressed to find 20
    • viable tenants for the buildings, making it impossible to create a valid break-evenanalysis that would be nothing less than speculation. After corresponding with thedeveloper, it was clear that they rather have any type of tenant as oppose to cuttingtheir losses with a break-even. So, the main focus of this marketing plan is to attractseveral tenants and in the long run draw more instead of leaving the buildingsvacant.Sales Forecast If the marketing plan proved to be a success by drawing more tenants intoRiverwalk Plaza and transforming the shops into a student-centered hub, it wouldmagnify the image and atmosphere of the Plaza. With an improved image, there isbetter prospect for future tenants and it would draw more consumers to the retailshops.Marketing Expense Budget The marketing expense would be spent on the research, advertisement, salespromotion, events & experience, public relations & publicity, and aestheticimprovement of the Riverwalk Plaza.ControlsImplementationMarketing OrganizationContingency Planning 21
    • Works Cited"California QuickFacts from the US Census Bureau." State and County QuickFacts. Web. 01 Dec. 2010. <http://quickfacts.census.gov/qfd/states/06000.html>."Healthcare: Medical Office Growth Is Revitalizing a Moribund L.A. County Commercial Real Estate Market." BlackSwan Zine. Web. 02 Dec. 2010. <http://blackswanzine.com/2009/09/08/healthcare-medical-office-growth- is-revitalizing-a-moribund-l-a-county-commercial-real-estate-market/>."LAEDC - Economic Information." Los Angeles County Economic Development Corporation. Web. 03 Nov. 2010. <http://www.laedc.org/reports/ Forecast- 2010-07.pdf >.LoopNet - #1 in Commercial Real Estate Online. Web. 09 Nov. 2010. <http://www.loopnet.com/>.Mueller, Mark. "Medical Offices Seeing More Leasing, Discounts on Sales | Orange County Business Journal." OC Homepage | Orange County Business Journal. Web. 05 Dec. 2010. <http://www.ocbj.com/news/2010/aug/08/medical- offices-seeing-more-leasing-discounts-sale/>.Riverside, California | City of Arts & Innovation |. Web. 01 Dec. 2010. <http://www.riversideca.gov/>.SIOR. Web. 05 Dec. 2010. <http://www.sior.com/data/files/Marketing_Bergsman.pdf >Turner Riverwalk - A Unique Business Community. Web. 12 Nov. 2010. <http://www.turnerriverwalk.net/>.University Village. Web. 05 Dec. 2010. <http://universityvillageriverside.com/>. 22