Brand auditing of Havelock City Real estate development project

1. BRAND STRATEGY &
PLAN 2017

2. AGENDA
Introduction to Havelock City
Brand Audit – Where are we now?
Brand Strategy for 2017 – 2018
 STP Strategy
 Brand Marketing Objectives
 Brand Marketing Strategy
 Brand Marketing Mix
 Brand Competitive Strategy
 Brand Development Strategy
 Brand Marketing Budget
 Evaluation and Controls
Q&A

3. INTRODUCTION
Largest’ residential and commercial real estate development project
in Sri Lanka
Luxurious life style
“Welcome to your metropolitan lifestyle, Welcome to Havelock City”

4. BRAND AUDIT

5. CURRENT BRAND
POSITIONING
HC positions themselves as
the “best apartments for sale
in the heart of Colombo
Unparalleled experience of
luxury living that combines
residential, commercial and
industrial uses

6. PRESENT MARKET
SEGMENTS
Geography: Sri Lankans, Expats (Non resident Sri Lankans) living in
US, UK, Canada, Australia, Foreigners working in Sri Lanka
Age Group: 40 and above
Income: High income earners (above LKR 500,000 a month)
Occupation: Directors, CEOs, General Managers, Business owners, etc.

7. IDENTITY
 One of the largest and most expensive mixed used real-estate development project
in the world
 Recognized at Asia Pacific Property Awards
 A comprehensive and urban living arrangements in Colombo city

8. BRAND IMAGE
 Associated with the luxury and comfort
 Plush accommodation, exclusive recreational facilities and unique features such as
the roof garden
 Image of luxury living

9. PERSONALITY
 Sophistication and competence
 Parent Company-Overseas Realty (Ceylon) PLC
 Competitive edge of calling itself a “City” rather than merely “apartments”

10. BRAND FEATURES AND
BENEFITS
largest residential project in Asia Pacific.
 owns largest underground car parks, size of three rugger fields
 8 residential towers
 Number of plush penthouses in residential towers
 commercial component consist office tower and largest shopping mall
Recreational Facilities
 play ground
 cycling track
 Rain forest garden with cascading pools and lake
 boulder gardens with water falls
 Residential apartments with good ventilation and sunlight
 Realty services

11. BRAND FEATURES AND
BENEFITS
Commercial retail building
 shopping mall
 hypermarket
 multiplex cinema
 shops, café, restaurant
Club house features
 Function rooms
 swimming pool
 spa
 mini cinema
 pool bar
 mini super market
 Gymnasium

12. BRAND NAME APPROACH
 Corporate name -> Overseas Realty (Ceylon) PLC
 Individual brand name -> Havelock City
 Individual brand name conveys the values associated with the project such as
luxury and the concept of a city have resulted in creating brand equity rather than
using the corporate name Overseas Realty

13. SALES PERFORMANCE
Overall performance in terms of the number of apartments.
 Phase 1 – 217 units – sold
 Phase 2 – 217 units – sold
 Phase 3 – 297 units – 40% sold
 Phase 2 – 315 units – 10% sold

14. BRAND MARKET SHARE
In 2009, the luxury housing stock stood at 783 units and
by 2015 the number has gone up to 2,657 units
By 2009, Havelock city held nearly 30%
of the total market demand in the
luxury
segment

15. FINANCIAL PERFORMANCE
Rs. 4.3 billon revenue recognized from sale of apartments
 Rs. 321 million Gross Profit from sale of apartments in 2015
 More than 22% of units reserved with deposits in Phase 3

16. SHARE PRICE MOVEMENT

17. KEY ISSUES
Difficulty in maintaining its positioning and attracting sales for the
new apartment complex (planned to be completed by mid 2018),
 New and elevated levels of luxury introduced by renowned brands such as Shangri
La, Cinnamon and ITC
 HC located in Colombo 6
 Phase 3 complex to be developed facing the Wellewatta flats
 Competitive parts of the HC project such as the Office complex and Shopping Mall
still not developed

19. STP STRATEGY -
SEGMENTATIONCriteria Variable Segments
Geographic Local/Foreign Local Sri Lankan permanent residents
Expats Sri Lankans who are living abroad (NRI)
Foreigners Foreigners living in Sri Lanka and abroad
Demographic Age 18-24 Youth
25-34 Young Adults
35-54 Mid Aged
55+ Senior Citizens
Income level Less than 15,000 Low income earners
15000-74,000 Middle income earners
75,000-120,000 Moderately High income earners
120,000-500,000 High income earners
Above 500,000 Very High income earners
Family Size 1-2 members Living alone, couples without children (newly married, retired, etc)
3-6 members Nuclear families
More than 6 Extended families

20. SEGMENTATION CONT.
Criteria Variable Segments
Occupation Senior Managers and above
Middle Level Managers
Executives
Psychographic Social Class High Class
Upper Middle Class
Lower Middle Class
Behavioural Occasion Getting married
Job related relocation
To admit children to city based schools
Caretaking of aging parents (children living abroad)
Affordability of homes
Tax benefits
Benefits Sought Desire for a home in a better residential area
Convenient access to schools, shopping, health facilities, office and other facilities
(gym, pool, etc)
Value for money
Large living space and luxury comforts

21. TARGETING
Geographic: Sri Lankans living in Sri Lanka, NRIs, and foreigners living
in Sri Lanka
Demographic:
 Mid aged & senior citizens
 High income earners & above
 Family size – any
 Occupation – Middle level managers & above as well as business owners
Psychographic: Upper Middle Class & above
Behavioral: All of the above mentioned occasions and benefits

22. POSITIONING
Reposition brand to “semi
luxury, contemporary and
modern” apartment provider
in Colombo with value for
money and unique and
distinctive features

23. BRAND MARKETING
OBEJCTIVES
 Reposition the brand as aforesaid by end of Q2 2017
 Execute branding and communications strategy to create awareness, interest,
desire and action between Q3 2017 to Q2 2018
 Complete selling all apartments by Q2 2018
 Achieve a market share increase by 2% by Q2 2018

24. BRAND DEVELOPMENT
STRATEGY
Nature of construction projects
 Critical factors: Capital, Time & Expertise
 Risk: Dynamic environment, Innovations, Competition
 Opportunities: Govt policies on FDI & BOI, Raise in disposable income
Havelock City project life span
 Launched in 2008, pioneer to introduce modern living concept
 Asia Pacifica Awards
 Is brand sustainable?
 Meaning of Luxury living & Modern projects
Product Development
 Brand identity: Is it luxurious anymore?
 Disadvantages for HC: New entries, Competition, location
 Changes in target market: High income earners to Upper middle class
 roduct development: Luxury to Semi luxury apartments

25. PORTER’S GENERIC
STRATEGIES
Current Strategy
Competitors: Astoria, Altair,
Fairway holdings..
Commercial office building
and commercial retail
building in the early stage
of 2017.
Focus differentiation
 Target segments : SriLankans,
Nonresident SriLankans living
in US, UK, Canada, and
Australia and Foreigners
working in SriLanka
 unusual needs or serve them
differently
 “city within city”.
Proposed Strategy
New competitors:
Shangri-La, Cinnamon
Life and ITC..
Focus differentiation with
shift in target segments
 Upper middle class, senior
managers
 Semi luxury, contemporary
apartments

26. BRAND MARKETING MIX
(4P’S)
Core benefit
•Comfortable & Safe living
spaces
Actual product
•304 semi-luxury apartments
•Garden or sea view
•2,3 or 4 bedroom units
Augmented product
•Exclusive access to facilities at
HC (i.e. gym, pool, club house)
•Easy access to retail, dining &
entertainment options
•Security systems
•Maintenance
Product

27. BRAND MARKETING MIX
(4P’S) CONT.
Price
 Competitive pricing using market-oriented pricing strategy
 Pricing will be not increased drastically due to revised positioning
Place
 Both towers are constructed under the HC premises in Colombo 6
Promotion
 Branding & comm. Plan developed based on AIDA
 ATL -> radio and TV advertising, print media advertising and billboard campaigns to create
awareness
 BTL ->more targeted campaigns : direct email marketing, SEO/PPC, Social Media marketing,
trade shows & catalogs

28. BRAND DEVELOPMENT
STRATEGY
Line Extensions:
 Phase 3 is an extension to Phase 1 and Phase 2 -> two new towers
 Considerable amendments to the unit size, finishing and other equipment’s used
 Reduced pricing

29. BRAND DEVELOPMENT
STRATEGY
Brand Stretching:
 Mixed development project ->
not only residences but also
Commercial office,
Retail mall
and service units

30. BRAND DEVELOPMENT
STRATEGY
Brand Stretching:
 Mixed development project ->
not only residences but also
Commercial office,
Retail mall
and service units

31. BRAND MARKETING BUDGET

32. EVALUATION & CONTROL
Return on investment (ROI)
to assess whether the marketing expenses used for each campaign has brought sufficient amount of
sales.
Actual sales
The tracking of the increase in the actual sales will also indicate whether the brand plan is in fact
working.
Customer Response
Carrying out surveys online and in person and general customer service feedback is also essential for
the purpose of assessing the success of the brand plan.
Competitor Response
The response of the competitors such as Astoria, Altaire as well as the new competitors in the semi-
luxury apartment developers
Market share
The change in the market share must be closely monitored.

33. Q&A