Marketing Assignment

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1.

Executive Summary
Today, starting up the new real estate agency in Malaysia is very challenging in this
current market, KS Properties perform well trained, good discipline, and provide the
higher professionalism real estate standard for reliable, trusted and experience leading
property agency in the market.
KS Properties specialize in Bukit Jalil area and mainly on new development project and
secondary market as well.
Bukit Jalil in Kuala Lumpur is a property hot spot and the landscape of Bukit Jalil has
changed tremendously over the year, it is become the attractive integrated development
for local Malaysian and expatriate. Beside, the upcoming land mark in the area is Bukit
Jalil City (BJC), a 50 acres freehold integrated development. It will feature a regional
shopping Mall that has been named Pavilion 2. In addition, it is create a lot of population
and job opportunity coming in.
KS Properties aim the upcoming new project from developer and handle the secondary
market for the vicinity residential property.

2.Macro Environment Analysis


Economic Environment-

Real estate market plays an important role in Malaysia, from job opportunities to
economic growth. Due to continuous uprising on construction cost, and thus, increase on
price of real estate, Malaysia government has created a few initiatives to build affordable
homes such as PRIMA, RUMAWIP and Selangorku, to allow Malaysians, who do not
own any property, to be able to own a house
With reference to the attached graph (pls indicate graph no.), it is evident that the
transaction of RM1million property and above is experiencing rapid decrease. Demand
for such property is decreasing, specifically on the year 2015 to 2016.
Property price between RM200,000 to RM500,000 is indicating steady increase instead,
reflecting rising demand from middle-income households (income earning?), as
compared to high-end property at the price of RM1million and above.

PoliticalIn May 2014, Goods and Service Tax (GST) Act 2014 has been enacted, an additional tax
cost of 6% borne by consumers for most consumption of goods and service, with a few
items exempted. Such additional tax burden on construction materials have negative
impact on construction cost, and thus, price of property. GST implementation has also
discouraged property buyers to delay their purchase decision.
Throughout year 2010 to 2016, Real Property Gains Tax (RPGT) scale rate has increased,
this dampens property sellers profit gained from sale of property. This also demotivates
property investors from investing in property.

Social- The population is the most element of demographic environment. Nowaday, land
become lesser and lesser especially in City Center, cost of living and standard become
higher and higher. Most of the low-middle income group decided to move out from City
and shift into outskirt for living, prevent traffic congested, make life more relax and
reduce pressure.
For the youngster and family stay at City Center, mostly lifestyle is depended on Internet
convenient such as Face book, Instagram, Twitters and so on.

TechnologicalAs technology continues to improve, there is a rising demand for Smart Home System
among property buyers, especially buyers who constantly travel, allowing them to
manage their house through mobile devices, related to house security and utilities.
Be it high-rise or landed, multi-tiered security system becomes a necessity among
property buyers when making a property purchase decision.
Property developers nowadays should consider of enhancing Smart Home System and
Multi-tiered security when developing new properties. For existing properties without
Smart Home System, property agents should recommend and advise on such technology
while marketing such properties.
3.Competitor Analysis
Reapfields Properties Strenghts and Weaknesses.

Reapfield, being one of market challengers in real estate agency industry, emphasizes
heavily on training and personal development of its real estate negotiators. It has always
been Reapfields top priority to focus on promoting exclusive (Sole Agency) properties
through various forms of Advertisements. Reapfield also commands a strong customer
database and customer loyalty.
However, Reapfield is specialised on high-end condominium in Bukit Jalil, at the price of
RM1million and above instead of mid or low-end property. Many of its negotiator work
on individual sales basis, instead of teamwork. Individual performance basis is not
suitable in marketing new project development, mainly from property developers.
Another practicing is make a property value survey paper and do print the flyer, put at the
post box for residential area. This is one of the effective way to get lead and response. In
fact, this firm customer database is strong and have own customer referral for loyalty.
This firm usually target those high end market and seldom market for low to middle
range property especially condominium in Bukit Jalil area. Most of the negotiator are
running personal sales and not many practice work on team basis, it will affected the
company sales volume and lower down for the new development project marketing.

Homegates Realty Strenghts and Weaknesses.

Different from Reapfield, Homegates Realty is a smaller real estate agency, comprised of
a few teams operating in it. Homegates primarily focuses on secondary residential
market, emphasizing on teamwork and profit-sharing and team manager overriding.
Respective team managers are committed to train and improve their team negotiators.
Each team will be stationed to specialise at selected condominiums in Bukit Jalil,
allowing them to be fast responsive in key collection from property owners. Relying on
property master list, team members are assigned to perform cold-calls and text message
blasting on weekly basis to source of property owners in sale or rent of property.
However, Homegates Realty does not emphasize on training and personal sales
development on its negotiators. There is a high turnover rate on negotiators, requiring
them to constantly recruit fresh and inexperienced negotiators. Without well-experienced
negotiators to represent the company, it is difficult for Homegates Realty to retain
existing customers in the long-term.
4.SWOT Analysis
Strength KS Property aims to provide long-term professional real estate consultancy and
services to property owners in Bukit Jalil, with well-equipped latest property information.
Also, to market Bukit Jalil properties in appropriate manner.
KS Properties aims to increase existing customer base and to increase customer
satisfaction while working close-relation with property developers to obtain exclusive
new project marketing. On secondary property, KS Properties will provide more property
listings for negotiators to follow-up with.

Of all, KS Properties aims to employ well-qualified trainers to train KS Properties


Negotiators constantly, allowing them to be equipped with latest information on property
and sales closing skills.
Weaknesses- KS Properties faces a lack of well qualified trainers to operate a training
class for negotiator and limited negotiators to market large number of property listing.
Besides, less of the funding factor will effect company position down of the scale and
hard to build a connectivity to all parties.

Opportunity- KS Properties aims to be an area specialist to increase the sales volume of


the new development project for high rise condominium and so on. Implement the new
technologies in an effective way such as VR 360 and upload actual property environment
view to You-tube website.
In addition, sharing the property information listing to all real estate agency firm for coagency and built the strong networking among the agency. Make a useful value listing
deliver prompt selling or renting.

Threat- In Malaysia, the main economic environment is facing downturn and bank loan
regulations are tightened whereby more property buyers are facing more difficulties in
securing bank loan, and thus, higher bank loan rejection rate. This directly affects the
property sales of the industry transaction slow down.

Developer nowadays are also delaying many new project launches until Malaysia
economy recovers. Some have also reduced high end property development. At worst,
they are changing property developments and concept to a mid-end property development
and at lower property price. Developers now are changing their concentration in building
mid-end and/or affordable property at the price range of RM 200,000.00- RM
500,000.00.
In addition, the Real Property Gain Tax (RPGT) is a form of capital gain tax that is
imposed on the disposal of property, this will be have changes in the real estate market.

5.Marketing Strategy
Target- From the segmented demographic and psychographic variables, KS Properties is
targeting potential customer and prospects that are classified under middle and upper
middle income class age at 25-45 year old and working bachelor, family and expatriates.
Therefore, focus on new development market at Bukit Jalil and spread over radium
within 5-10KM location such as Taman OUG, Sri Petaling and Bandar Kinrara, Puchong
for secondary market with property value at RM 500,000.00 above.

Differentiation- KS Properties primary objection remains offering one stop real estate
service provided to customer such as assist pre-approve bank loan from banker, arranging
solicitor for any legal services, market selling and renting for existing customer for long
run. In addition, built customer relationship and maintain networking thru send message,
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email or phone call. At the property owners side, KS Properties is able to provide latest
market transactions and realistic property price and rent rate.
Positioning- In point of positioning, KS Properties heavily emphasizes on fast response
services to both the buyers for property viewing and owners for key collection, and
property-related consultancy. As such, customers will then be well-served without delay.
With strong customer satisfaction, KS Properties can then be able to achieve stronger
customer retention, benefiting KS Properties in long-term basis.
----------------------------------------------------------------------------------------------------------6.Marketing Program
Product Strategy- In real estate industry, product strategy basically is a service and
provided all the updated correct information to customer, dealing selling and renting in
property market.
For new property development, KS Properties aims to market high-rise properties,
condominiums and serviced-apartments, at the price range of RM500,000 to RM800,000,
primarily in Bukit Jalil.
For secondary property development, KS Properties will then aim to market landed
properties, including Terrace Houses, Semi-Detached Houses and Bungalows situated
primarily in Bukit Jalil.
Properties listing and sources is important to figure out the accurate and get expectation
for the profit returns. Define the niche and worth selling property to market and use short
time to get more gain.
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Pricing Strategy- For this current real estate market condition, pricing remains a main
issued between seller and buyer. Therefore, the best ideal concepts to setting the
professional fee of selling property at RM 1 million below targeting to collect 3%
commission and RM 1 million above is 2% commission. Due to higher commission
receivable, KS Properties will be focused on marketing properties with higher
commission rate of 3%.
With this attractive professional fee payout scheme for negotiator, offering 70% and team
leader will be enjoy 80% plus over-writing from junior negotiator.

Promotion Strategy- KS Properties will create the one stop online advertising website to
post the property listing and helping check property value for customer. Deliver the best
service and convenient for customer, further, offering the meal or cash vouchers for any
customer referral to successful close deal.
Provided an event party for resident for any property issue and helping each other to
settle the problem, maintain the customer relationship for future networking.

Marketing Channels Strategy- In reaching the target customer at a closer proximity, KS


Properties will station at Bukit Jalil Commercial Office which is facing to main road,
attract more customer to get know this location by easy access to major link road and
highway. This is also a location whereby KS Properties are able to hire more employees
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to work at. Location of work plays an important role to attract potential employees to
work at KS Properties.
It is visible and convenient place close to public transport for customer visit, between
convenient for negotiator reach to office on time and save time for any traffic jam
problem, fast delivered property service to customer around. Bukit Jalil Commercial Hub
is situated at the centre of Bukit Jalil. Make work more efficiency.

7.Conclusion
In real estate market, property is all dealing with human business, for this business can
create a lot of opportunity for jobs, chances, wealth, and making better life for successful
people. Further, helping and full fill every people needs in real estate industry, contribute
the success elements and build a strong brand name in future.
Final, KS Properties make dream become a top five leading real estate agency in
Malaysia.

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