Current situation and action to plan for ascendas protrade singapore tech park

Solutions To Build Effective Marketing Strategies For Ascendas-Protrade Singapore Tech Park UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Dinh Thi Thanh Thuy CURRENT SITUATION AND ACTION TO PLAN FOR ASCENDASPROTRADE SINGAPORE TECH PARK ID: 22130076 MASTER OF BUSINESS ADMINISTRATION Supervisors: Dr Tran Ha Minh Quan And Dr Nguyen Thi Nguyet Que Solutions To Build Effective Marketing Strategies For Ascendas-Protrade Singapore Tech Park Table of Contents Acknowledgements Abstract Chapter 1: Problem Identification Company Introduction and Background Problem Symptoms Problem Identification Verifying The Existence of The Problem The Importance of The Problem Potential causes 11 Cause and Effect Map 15 Chapter 2: Alternative Solutions 16 Root cause 16 Alternative Solutions 18 Establish relationship with strategic partners and retain customers’ relationship .19 Applying technology to business 19 Penetrate the market deeply 21 Chapter 3: Selected Solutions and Implementation Plan 23 Selected Solutions 23 Implementation Plan 24 Chapter 4: Supporting Information 27 Transcript 1: Interview with Sales and Marketing Manager to get the symptoms of the problem 27 Transcript 2: Interview sales and marketing staff to find obstacles they face up in their sale and marketing activities 30 Transcript 3: Interview Mr Han – General Director and Ms Eriko – Head of Sales and Marketing Department to find out the central problem 33 Questionnaire 1: Survey to confirm the central problem 40 Questionnaire 2: Survey to confirm the root cause 47 Questionnaire 3: Tenants Feedback 47 Literature Reviews Summary 49 Conclusion 52 References 53 Acknowledgements This study builds on reality of a joint venture Vietnam Singaporean real-estate company which I am working for I should therefore begin my acknowledgements to my colleagues and partners who supported and provided useful information so that I can analyze and find out the root cause of company problems to complete this paper Acknowledgment for permission to use materials and data from Mr Han, the general director of Ascendas-Protrade Co., Ltd It’s my grateful to Ms Thuy, sales and marketing manager, who spent her time to exchange information, joined the interview and help me realize problem symptoms, get the potential causes and find company problems I am also indebted to my supervisors; Dr Tran Ha Minh Quan and Dr Nguyen Thi Nguyet Que, for their valuable comments, instructions and advices to help me understand the thesis structure more fully and complete this thesis I also express my appreciation to the members of the group and staff of ISB for their friendliness and enthusiastic My thanks, too, to my family and friends for their motivation and supports 3|Page Abstract The existence of appropriate marketing strategies in industrial land lease is generally attributed to the successful of deal close and occupancy rate in industrial real estate field This study is identifying the Ascendas-Protrade Co., Ltd.’s core problem, finding and prioritizing capacities as well as examining the use of high value added strategies to allow firm get higher performance then enable pushing Ascendas-Protrade Singapore Tech Park occupancy rate Key members of the company have been selected to respond a questionnaire and their answers have been use as data for analyzing to figure out the company’s problem From the point of view of experts, Board of Director and managers of the firm, the results of the interview inclines toward strategic marketing and integrated customer solutions Therefore, they deserve special attention in relation to brand, marketing campaign and image deal with market communication that aims to strengthen the brand, the image and the reputation, to increase the company's awareness and to promote the customer's emotional engagement In this study, raising solutions reflect various capacities of understanding customers’ needs, product differentiation, and competitive advantage so that such solutions can associate and align to corporate strategies to meet the firm’s challenges and goals in upcoming years The study provides practitioner insights into the practices and trends in the use of valuable strategies in industrial land market In determining appropriate marketing plan for industrial landlease, many factors need to be weighed as to the influence on a particular subject properly Chapter 1: Problem Identification Company Introduction and Background As an Asia's leading provider of total business space solutions with more than 30 years of experience Ascendas specializes in master planning, developing, managing and marketing IT parks, industrial & logistics parks, business parks, science parks, hispecs facilities, office and retail spaces Leveraging on its track record and experience, Ascendas has introduced new business space concepts such as integrated communities and solutions which seamlessly combine high-quality business, lifestyle, retail and hospitality spaces to create conducive human-centric work-live-play-learn environments Ascendas has established a strong regional presence, settle up Ascendas Vietnam Co., Ltd in Vietnam and cooperated with a Vietnamese state-own company, Protrade, to invest and develop an industrial park in Southern Vietnam, named Ascendas-Protrade Singapore Tech Park (APSTP), primarily serving multi-national companies, leading local companies and research institutions The project is set within 500 and consists of phases in which the area of phase and phase is 150 ha, fully completed infrastructure and launched into market to sell It offers a vibrant work-live-play-learn industrial hub that blends high quality business space and reliable solutions with a conducive business lifestyle and provides customers with excellent range of options for industries in electronics, precision engineering, IT, pharmaceutical, food and beverage and general industries There are plenty of competitors running their businesses in this industry in Vietnam Some of them are successful and assessed as mature industrial parks such as VSIP, Amata, Long Duc, Nhon Trach, Kizuna, etc while some other parks operated for long time but their positions in the market really matter The most appeared failure is low growth rate APSTP is one of them and is a perfect case to study on this kind of failure Problem Symptoms According to sales reports and financial statements from the date the project opened for sale (2007 to 2016), it shown that company has spent a lot of money to run marketing campaigns for branding and attract prospects to push sales but it still couldn’t meet break-even point and the project can be sold to another development while it probably made profit in the first years as planned During years, from 2007 until 2016, the occupancy rate of the first phases of the project is about 36% They encountered an issue of pushing land sales though their team is skillful and worked extremely hard and enthusiastic After interviewing financial controller, sales manager and staff, parameters were given as follows: Sales (ha) Before Project target sale (ha) Project Cumulative (ha) 73.8 73.8 Q1 2014 20 93.8 Actual Sales (ha) Actual Cumulative (ha) 25.5 25.5 1.5 27.0 Q2 2014 12.2 106 Q3 2014 9.5 115.5 Q4 2014 15 130.5 Q1 2015 24.2 157.4 Q2 2015 11.6 169 Q3 2015 17 186 Q4 2015 11.5 197.5 Q1 2016 18.5 216 29.0 5.5 34.5 3.5 38.0 2.0 40.0 3.5 43.5 5.0 48.5 3.5 52.0 1.7 53.7 Table 1: Sales Target and Sales Actual from 2014 to 2016 of the project The actual sale compare with the plan is a big gap In 2014, project target sale is 56.7 while actual sale is 12.5, equivalent to 22% of expected goal The sales volume 7|Page Solutions To Build Effective Marketing Strategies For Ascendas-Protrade Singapore Tech Park is very low despite of the team’s effort The value of contract is not big, below The project hardly finds a queen bee to attract other supplementary industries to build up a supply chain Big customers often get aware of APSTP at the last minutes of their final decision Normally, oversea investors get information of industrial parks in Vietnam through consultants or agents website or meeting and have them help in analysis before going further steps Ascendas-Protrade hasn’t built strong and close relationships with agents, consultants as well as advertised the project on their websites Besides, working with marketing department (Head of Marketing Department, Marketing Manager and Marketers) to get more information, a collection of data was given hereunder: Items Visual Branding Collateral Event Advertising Website Digital Sponsorship/Exhibition Festive Gifts Budget (USD) 30,000 15,000 20,000 30,000 3,000 10,000 80,000 12,000 Table 2: A&P Budget FY2016 (Provided by Marketing Department) Annually, the marketing department spends USD 200,000 on marketing campaigns for investment promotion activities and hosting However, the outcome obtained is not satisfactory and the team doesn't have enough qualified leads According to transcript 1, they stated that the team worked very hard with passion and enthusiasm, applied to many channels to market the products, on an average, there were about 14 prospects came to visit the project each month but the real buyer is just a few Asking of Solutions To Build Effective Marketing Strategies For Ascendas-Protrade Singapore Tech Park which channels to approach prospects, the Head of Marketing Department shared that, they signed contracts with International Property Companies (CBRE, Savills, Colliers, etc.) sub-brokers to get more chance to increase leads and customers However, this channel is very week Besides, the number of 14 prospects visiting APSTP each month derives from their relationship with associations, the real demand is nearly equal to zero and the name of the project is really not familiar with them Each year, company set up balance-scored-card to monitor their activities and target The prospects they expect to come to their site is 175 per year They spent a lot of money to host groups of investors from consulates and associations to reach the site visit target but the contracts signed is just 2-3 each year and the land plot sold is not big Compare with other competitors in the same industry like VSIP, Long Hau, the sales volume of APSTP is much lower and slower Besides, there isn’t any local investor locates in APSTP Although there’s a budget for marketing activities, they don’t get high achievements of sales and awareness, for instance, when a consultant or partner of them take prospects to APSTP, the prospects know Amata, VSIP, ect but not know this project Each year, they tried to find more channels to approach more prospects but they were still caught in a vicious circle Problem Identification Entering Vietnam market at the end of 2007, one year later, they faced the difficulty of economic recession At that time, Ascendas-Protrade was a young company without strong relationships with relative partners, agents and government; they couldn’t Solutions To Build Effective Marketing Strategies For Ascendas-Protrade Singapore Tech Park Strongly Disagree Please choose one number for each item Strongly Agree I’m satisfied with my decision to locate in APSTP If I could it again, I’ll locate in another park I’m satisfied with your host I’m satisfied with the company sales & marketing team 5 The company events are creative and interesting I’m satisfied with the project management and customer services at APSTP I’m satisfied with overall quality of APSTP I’m happy with amenities and integrated customer solutions of APSTP I’m satisfied with company procedures and supports 10 Base on your awareness of APSTP, it’s better than other brands of industrial park? Table 6: Results from tenants’ survey (25 tenants in the park) I’m satisfied with my decision to locate in APSTP If I could it again, I’ll locate in another park I'm satisfied with company's host I’m satisfied with the company sales & marketing team The company events are creative and interesting I’m satisfied with the project management and customer services at APSTP I’m satisfied with overall quality of APSTP I’m happy with amenities and Strongly Disagree (1) 4% Disagree Neutral Agree (2) 12% (3) 44% (4) 36% 4% 56% 28% 12% 0% 2.48 0% 0% 0% 4% 8% 16% 60% 44% 32% 36% 4.24 4.12 4% 48% 20% 20% 8% 2.8 8% 16% 0% 52% 24% 3.68 0% 16% 8% 76% 0% 3.28 8% 52% 8% 32% 0% 2.64 Strongly Agree (5) 4% Mean 3.24 integrated customer solutions of APSTP I’m satisfied with company procedures and supports 0% 36% 4% 40% 20% 3.44 Figure 2: Results from tenants’ survey Literature Reviews Summary In order to find out the root causes that lead to the problem of Ascendas-Protrade Singapore Tech Park, researches on scholar literatures were made to find out factors influence marketing plan Table 7: Literature Review – Factors influencing marketing plan Author Borders (2006) Site UK Walsh & Lipinski (2009) US Homburg, Workman, & Krohmer US, Factors - Integrated solutions (synergy), incentives, company culture, channel of communication, target customers - target customers, choice of strategic partners, integrated solutions, customer satisfaction - choice of strategic partners, integrated (1999) Capik (2007) Germany Europe Campbell (1997) Xie (2012) Kirmani & Campbell (2004) Tse, Sin, Yau, Lee & Chow (2004) 10 Rasouli, Jamaati-e-Somarin & Jahan (2015) Tay (2001) 11 Fuchs & Diamantopoulos (2010) Europe 12 13 14 15 16 17 Ranjbar, Shirazi & Blooki (2014) Li & Davies (2001) Roth (1995) Yeh, Lee & Pai (2012) Li, Kinman, Duan & Edwards (2000) Chittenden & Rettie (2003) UK UK US Taiwan UK UK 18 19 Shaw (2012) Jocumsen (2004) 20 Tu (2011) US UK US China Iran UK UK Australia China solutions, market research, market analysis - promotion, PR activities, business relationship, networks - Business relationship, partnership - Local market knowledge - Agent relationship - integrated marketing organization, enhance relationship with customers, marketing channels relationship - Culture - Customer retention, marketing differentiation (communication, brand image…), market research - Brand perception , brand position, target customers, marketing communication - Communication, culture, commitment - Information system, communication - Brand image, advertising, market research - Information technology - Communication of information - digital communication (direct mail), customer retention - Market segmentation, market penetration - taxation, industrial relations policies and legislation, exchange rates, political instability (domestic and overseas) - market research, industry clusters, dissemination of information Table 8: Evaluate and Compare The Alternative Solutions Result Solutions Market research and provide integrated product and services Strength The company can deliver service excellence by taking full advantage of its ability to create effective solutions for customers Weakness Need to give initiatives and creation in work regularly Take a lot of time Build strong relationship with associations and partners Information sharing, supporting, connecting from many partners in in time and save time Take time to maintain Opportunity To bring benefits for company and customers as well It can shape an organization to become futureproofed for further evolution as service standards continue to develop, adapt and grow The chance to approach new customers is much higher so the opportunity to get new leads is higher, too Threat Outdated, old-style thinking need to be omitted Information trust need to be checked to save time and cost Technology and With technology Production cost is It is a Can be targeting advertisement (website, social media) and advertisement, the market can be expanded This is also a supportive channel for salesman Table 9: Implementation Plan Objectives Actions People Change Organization Communication Plan high It may confuse the buyer communication tool in business between seller and buyer so sale can be increased wrong endconsumers Build strong relationship with associations, agents and partners Set up relationship with local associations Set up strong and good relationship with Government Set up closely relationship with International Associations, Banks and Embassy Set up relationship with agents, partners, sub-brokers and international property companies Set schedule to meet up with international associations, local associations, banks, agents, sub-brokers, international property companies on route Maintain these relationships by hangout, catchup regularly Besides, exchange information to each other on market, projects, occupancy rate Meet up with authorities and embassy to update information and retain relationship Set budget of Tet gift for those connections Engaging in associations to become their member to take part in event, network Celebrate factory tour/event to invite members of local associations to join to promote project Send quarterly newsletter to those connection to keep them updated of the project Managing Director Head of Sales and Marketing Department Sales and Marketing Manager Sales and Marketing staff Increase new leads Increase site visit Increase deal closed and company turn over Staff motivation enhancement More activities and creations have been made - Informing the plan to head of sales and marketing department then set up meeting to discuss to examine the feasibility of the plan - Department meeting to get feedback, comments for a complete plan - Sending the final plan and cost estimating to director for approval - After approval signed, implement the plan The whole team will have quarterly, monthly, weekly plan to be easy to carry on and follow up - Team need to prepare quarterly, monthly, weekly report for their activities accordingly - Look back after every month to retrieve the actual result and improve the situation Conclusion Each organisation has their own marketing strategy and marketing plan to follow in order to achieve the best result and maximize profit A marketing action plan for the growing business makes an attempt to appropriate directions to growing firms and to point to relevant marketing action (Butler, 1996) In the case of Ascendas-Protrade, they need to push matketing activities especially in network establishing to improve sales volume and differentiate business in the market It can help generate and sustain competitive advantage for the business The Ascendas-Protrade Singapore Tech Park is a Singaporean standard industrial park which provides a professional working environment develop base on concept of work-live-play-learn It can be developed in a fast pace and strong growth if strong marketing plan would be applied, creating an ideal park with full of creation and entertainments for investors References Aken, J E., Berends, H., & Bij & H V (2012) Problem solving in organizations: A Methodological Handbook for Business and Management Students Berisha-Namani, M (2003) Information technology, internet, and marketing International Journal of Electronic Commerce Studies, 4(1), 103-109 Bond, M., Seiler, M., Seiler, V & Blake, B (2000) Uses of websites of effective real estate marketing Journal of Real Estate Porfolio Management, 6(2), 203-210 Bonnemeier, S., Burianek, F and Reichwald, R (2010) Revenue models for integrated customer solutions: Concept and organizational implementation Journal of Revenue and Pricing Management, suppl Special Issue on Pricing and Revenue Models In The New, 9(3), 228-238 Borders, A (2006) Customer-initiated influence tactics in sales and marketing activities The Journal of Business & Industrial Marketing, 21(6),361-375 Butler, P (1996) A marketing action plan for the growing business International Small Business Journal, 14(4),109 Campbell, A (1997) What affects expectations of mutuality in business relationships? 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Strategies For Ascendas- Protrade Singapore Tech Park problem 31 | P a g e Solutions To Build Effective Marketing Strategies For Ascendas- Protrade Singapore Tech Park For advertising, Ascendas- Protrade. .. to Solutions To Build Effective Marketing Strategies For Ascendas- Protrade Singapore Tech Park Solutions To Build Effective Marketing Strategies For Ascendas- Protrade Singapore Tech Park consider... well as prospects to come to visit the park to understand more their products and services to promote and attract more investors to come to the project Implementation Plan A plan is considered