Diamond island Getting through the difficult time of real estate market in Vietnam

  ACKNOWLEDGEMENT It is a pleasure to thank all of those who gave us the possibility to complete this project. First, we owe our deeply gratitude to all the professors who gave us invaluable encouragement and knowledge during two years at Solvay Brussels School and HCMC Open University. Then, we would like to express our best gratitude to our tutor, Mr Serge Bywalski and Prof. Alain Van Den Eynde for all their support; inspiration and encouragement as well as discerning advices, during the months it took us to complete this project. We are really appreciate the great support of Ms. Nguyen Thanh Thuy – Marketing Manager of Diamond Island in providing us many valuable information that help us fulfill this project with real statistic value and information. We would like to express our best gratitude to our family for all the love, encouragement and sacrifices they made for us. Lastly, we offer our regards and blessings to all of those who supported us in any respect during the completion of the project.   CONTENT PART 1: DESCRIPTION OF THE DIAMOND ISLAND AND THE MARKETING & ADVERTISING STRATEGIES 6 I A BOUT DIAMOND ISLAND PROJECT & THE INVESTOR 6 1. Di amond Island Project 6 2. B TA 8 II M ARKETING & ADVERTISING STRATEGIES IN THE PAST 9 1. Pr e-launch Period : 2008 – early 2009 9 a Th e Objectives 9 b. P R Strategy 9 c P R Campaign 9 2. La unching: June 2009 – 2010 9 a Th e Objectives: 9 b. Ta rget Audience – Demographic: 10 c M essage to Deliver 10 d. P R & Marketing Strategy 11 e M arketing Campaign 11 3. Af ter Launch: 2011 -2012 14 a Th e Objectives 14 b. M essage to Deliver 14 c M arketing Campaign 14 III. DI AMOND ISLAND PROJECT – THE PUBLIC RELATIONS CRISIS 21 PART 2: ANALYSIS OF THE CURRENT POSITION AND SITUATION 22   I IN DUSTRY ANALYSIS 22 1. Re al Estate Market in Vietnam 22  Fo recastoftheEconomyandRealEstateMarketin  II C USTOMER ANALYSIS 26  W hoarethecustomers  W hatdocustomersdowiththeproduct   W heredotheybuytheproduct  W hydodonttheybuy III. C OMPETITIOR ANALYSIS 29  Th eUniqueSellingPropositionsofDiamond)sland   Co mpetitivePowers  IV. B RAND ANALYSIS 35  Br and)dentityPrism  Cu rrentBrandAwareness V. DI AMOND ISLAND PROJECT ANALYSIS – SWOT 39 1. St rength 39 2. W eakness 39 3. O pportunities 39 4. Th reats 39 PART 3: NEW MARKETING AND ADVERTISING PLAN FOR YEAR 2013 – 2015 41   I Pr oblem summary 41 II N ew marketing and advertising plan for year 2013-2015 41 1. O bjective: 2013-2015 42 2. M arketing Campaign 42 a. C RM system developing 42 b. Di stribution system developing 43 c. Cr isis management 44 d. A dvertising 45 e. Di gital marketing 50 f M arketing Schedule 53 g. C onclusion 54   TABLE Table 1: The rates of USPs of each project: 30 Table 2: Diamond Island – SWOT Analysis: 40 Table 3: Marketing schedule: 53   DIAMOND ISLAND GETTING THROUGH THE DIFFICULT TIME OF REAL ESTATE MARKET IN VIETNAM EXECUTIVE SUMMARY Diamond Island is an only island located at District 2, next to the new strategic urban area, Thu Thiem, a new finance and administration center, taking 7 minutes to the center of Ho Chi Minh City. The projects will include approximately 1076 apartments, 24 sky villas ad 144 hotel rooms. Diamond Island was developed and excuted by Binh Thien An Property Joint Stock Company. The company was established under business license issued by Ho Chi Minh City Department of Planning and Investment on December 12, 2005. Diamond Island’s mission is to bring every of its resident to the most amazing experiences with a top living style in an ideal living environment, where outstanding architecture and top luxurious facilities are blended with romantic landscape, prosperous fengshui, and humane resident community. It was launched in June 2009 and become an impression point of urban architecture with the international stature within Ho Chi Minh City particularly and in Vietnam. Diamond Island generally has a good marketing strategy and campaign. They have created a strong and recognizable brand identity with Diamond Island as the project with luxury apartments and sky villas and BTA as the Reputable developer and manager. They’ve also built up awareness and adorability of a high-class community at Diamond Island in near future. With luxury events, the message to deliver is that Diamond Island is a thriving place for living with the ideal community for intellectual and successful people. It also has the privilege to have an elite community of being successful and top notch in society. However, from 2011 to 2012, after PR crisis happened and the real estate value started the downward trend, Diamond Island had to face to a lot of difficulties and challenges to get through and reach proposed target business. Recommended marketing strategy in 2013 will focus on great location with fresh air and green environment as well as increase Diamond Island brand value by environment responsibilities and activities. In 2014, strategy will focus on ideal and unique fengshui location of Diamond Island to attract effectively target customers. Improving crisis management process and developing CRM and distribution systems may increase opportunities to explore the huge potential market, and then enrich target customer data and support sale team and brokers could reach successfully to prospect. With this recommended marketing campaign using suitable marketing strategy and effective marketing tools such as events, social media, E-news…would help Diamond Island overcome through the difficult time of real estate market in Vietnam.   PART 1: DESCRIPTION OF THE DIAMOND ISLAND AND THE MARKETING & ADVERTISING STRATEGIES I. ABOUT DIAMOND ISLAND PROJECT & THE INVESTOR 1. Diamond Island Project Diamond Islands is a high quality residential apartment development with river access and view. The projects will include approximately 1076 apartments, 24 sky villas ad 144 hotel rooms. Total build space is approximately 300,000 sqm (Construction Floor Area CFA). Diamond Islands also consists of high class commercial and service center (including restaurant, supermarkets, retail stores, cinemas, swimming pools, marina, etc.) and a kindergarten, which is targeted to provide the best facilities for residents of Diamond Islands. It comprises of 5 zones name Zone A, Zone B, Zone C, Zone D and Zone E. Each zone will be built once after another, starting with Zone B in 2008. Total construction floor area of this Zone B is 67038 sqm. Some development data of Diamond Islands: • Site Area: 79944 m2 • Area within setback lines: 48032 m2 • Allowable Gross Floor Area: 215600 m2 (does not include car parks, etc) • Maximum number of floor per tower: 29 floors • Car park requirements: 1.1 covered car parks/dwelling units (minimum 1094 lots) Diamond Islands is bounded by Thanh My Loi quarter in the East, the Giong Ong To River and Thu Thiem quarter in the West, the Sai Gon River and Tan Thuan Export Processing Zone in the South and An Phu Quarter in the North. With this unique location, Diamond Islands can be easily accessed via water traffic such as water taxies and river ferries to and from the city. It is located of a 8 hectare island with a beautiful landscape setting, the island provides a natural exclusivity and yet is still very close to the center of Ho Chi Minh City. Being surrounded by Sai Gon and Giong Ong To Rivers in district 2, the green forest and clean water here make the location highly desirable with regards to Feng Shui. The island is just like a diamond inside a dragon due to Saigon River shape is just like the Dragon outline. Geomancer appreciate such location is the most unique and rare to find, and supposed to provide wealth and growth for people living in. This hence gives the Feng Shui to the whole project in particular, unlike the competitors' when buyers can only create Feng Shui inside their apartments. Additionally, the island is located among important traffic systems such as Thu Thiem Tunnel and the   East West Highway, Thu Thiem Bridge, District 1 Bridge, District 4 Bridge, Phu My Bridge, Ho Chi Minh - Long Thanh - Giau Day highway. Therefore transportation access to and from the island is extremely easy. The architect approach for this project is based on the following concepts: • Porosity: Creating a porous atmosphere in all scales of the project, and open facade for natural ventilation and taking advantage of the river breeze. With voids, double height living rooms, terraces and louvers the concept of porosity is achieved. Each residential cluster is made of 6 towers which are pulled apart, creating open corridors and maximizing the exterior views and privacy. • Elevated Green Mound: A two stories high structure with sloped edges creates the appearance of a green mound and at the same time hides all parking, MEP and infrastructure areas. • Urban concept of an archipelago: The entire island is treated as an urban island within the context of a larger development of additional islands. • Mountain shaped skyline: With the tallest towers at the south side the towers' height descents towards the north side on a two - to four floor modules. • Sky villas: Because of the lack of ground area, the villas are located at the top of the towers with one villa at each individual tower. Each villa is to have maximum river views and a private swimming pool. • Green belt: At the perimeter of the island with the aim of preserving the natural vegetation. Riverside leisure facilities: Small yacht harbor along the west side of the island on the Giong Ong To River. Diamond Island also aims to create a luxury living condition for its inhabitants. Before the zoning of the project, the wind was studied with NASA equipment for a year to segment the wind before allocating buildings. Careful studies have also been done from the style studies and product concept test to make sure Diamond Island is a luxury resident project in term of iconic architecture and interior design, and with exclusive community for top notch Vietnamese people who value the new luxury living style concept. Customers have the choice and the opportunity to actively participate in the design, look and feel of their home. They desire their home to be personal, unique and tasteful as well as communicate a message about what is important to them. The project has all facilities and services from the finishing of the home for customers to daily living needs such as free secretarial service, highest security, community style development programs such as regular meetings, training for adult and children as classy behaviors, etc. This enables customers to benefit from living in a community of both wealthy and classy people, and daily networking for both life and work. The project combines a range of finest quality apartments in the guise of a city resort, and provides excellent living conditions to enrich the life essence of its most fortunate residents. Combined with the calming riverside environment and relaxing lush landscaping, that underlines the natural beauty of the island, the Diamond Island development is positioned as the safest of investments readied to appreciate in value through time.   The exquisite living conditions have been carefully considered to ensure all needs are satisfied for the privilege residents. The premium facilities include those to support leisure activities such as the unique Princess Marina Yacht Club, a professional standard gymnasium, and the 5 star Health and Beauty Spa. Support facilities include the international standard kindergarten, general and specialist shopping, dental and healthcare clinics, secretarial services, and international property management to ensure the seamless integration of state of the art back of house activities, and highest security assurance. The external environments are as equally inviting as the luxurious apartments themselves. The landscapes have been carefully crafted as a living green belt that envelops and welcome all to visit in peace and relax. For the business and social minds there are intimate spaces within the landscape for entertaining and to create special community activities and networking opportunities. The lucky children will enjoy the excellent living conditions, with ample space for play inside and out within the gardens and fresh air, plus benefit from growing and developing among this privilege and elite community. 2. BTA Binh Thien An Property Joint Stock Company is the investor of Diamond Island Project. The company was established under business license issued by Ho Chi Minh City Department of Planning and Investment on December 12, 2005. To develop and execute the project, the company has set up a new legal entity which is Diamond Island Development one member limited company on March 25, 2008. It is planned that once BTA obtains Land use Rights it will contribute it into charter capital of Diamond Island Development. The cost related to the project will accordingly be transferred to DID. BTA Investment Management Vietnam Co. Ltd, a professional project management company shall provide general management services, administrative support and sales & marketing services for the project. The number of employees of BTA Property at December 31, 2006 and 2007 and August 31, 2008 was 3, and 11 respectively. The number of employees of BTA Investment Management at December 31, 2006 and 2007 and August 31, 2008 was 1, 11 and 37 respectively.   II. MARKETING & ADVERTISING STRATEGIES IN THE PAST 1. Pre-launch Period : 2008 – early 2009 a. The Objectives: The objective in this period of pre-launch is to create the brand awareness for Diamond Island. b. PR Strategy: Focus on the unique location of Diamond Island and the special investment on the project to create the most luxury apartments in Ho Chi Minh City c. PR Campaign: HO CHI MINH CITY WILL HAVE DIAMOND ISLAND Diamond Island - a luxury housing project - will be built on an 8 hectare island near the Sai Gon River. This project is invested and managed by Binh Thien An Co with the capital of 300 million USD. ARCHITECTURE COMPETITION FOR DIAMOND ISLAND (Source: vnexpress - Excitement grows about Diamond Island project in Sai Gon) To find the most efficient solution for Diamond Project, BTA invested 1 million USD in the International Architect Contest with contestants come from famous architecture firms around the world including Arata Isozaki, Wood Head, AS&P and PTW. The winner finally awarded to a German architecture, Arata Isozaki only came second place however he was chosen for the project because BTA thought his style is fit for this particular project (Asian style with Fengshui). 2. Launching: June 2009 – 2010 a. The Objectives:  Create a strong and recognizable brand identity: The objective is creating a strong and recognizable brand identity with Diamond Island as the project with luxury apartments and sky villas and BTA as the reputable developer and manager. The goal of this stage is to reach minimum 80% of target customer's awareness in the time of 3 month after this communications stage was launched.  Build credibility: Show off all superiorities of Diamond Island compared to competitions such as the Lancaster, Southern Palace, Raffles Residence, Sailing Tower [...]... avoiding another bad impression about an untrustworthy organization, the investor decided to change the name to Kusto Kusto is the name of the original corporation in Kazakhstan – the investor/owner/developer of Diamond Island PART 2: ANALYSIS OF THE CURRENT POSITION AND SITUATION I INDUSTRY ANALYSIS 1 Real Estate Market in Vietnam: The Vietnamese real estate market has been going through cycles of up and... much of the price Influencer: The customers are often getting opinions from every member in their family when purchasing the apartment The key influencers are usually their spouse or their children depending on the purpose of the purchasing For example, they buy to live; the key influencer is their spouse Another important influencer could be friends in their network who has bought an apartment at Diamond. .. considered the most convenient However, the marketing plan still using the location of Diamond Island as a unique one with special Feng Shui those can bring prosperity and sustainable value to customers Environment: If the location is not the advantage of Diamond Island, the environment is one of the best unique selling points of Diamond Island This is because the location in the corner of the crossing rivers... the iconic symbol of Diamond or Jewelry (the mini symbol in the divider of the logo) This symbol also reflects the shining lights spread out from the corner The main font type using in the logo is a handwriting font which convey the contemporary luxury brand of Diamond Island Another image which is used to represent the project is the Dragon with the shape similar to Saigon River and the Pearl in the. .. Citizenship, The World of A Few Series) Culture Although the developer choose the brand name as in the logo Diamond Island (the English version of the name instead of the Vietnamese one), the traditional characteristics of Vietnamese culture are always part of the brand First of all, Diamond Island chooses the image of Dragon – an icon of power, strength and prosperity of the King Besides, the Feng Shui... mouth as the Diamond Island Diamond Island uses this to introduce the unique location as well as the Feng Shui aspects In most of the public advertorial and printing collaterals, Diamond Island follow the color theme of black and yellow or the brown of the Earth to show the sustainability Personality All of the marketing campaigns, co-branding events and PR plans are to build up a brand name with the personality... pre-launching period, Diamond Island announced rumors of a luxury development in District 2 starting from an international architecture competition In this period, Diamond Island focus on the location of the project, this is not the best unique selling proposition of Diamond Island After that, in the launching period, Diamond Island using the “word of mouth” techniques for PR the luxury of Diamond Island – 1... estate market The economy growth rate is only reach 4.38% in the first 6 months, the lowest rate in many years Loan interest rates also rising creates difficulties for both investors and buyers in real estate transactions (the loan rating rates of real estate is currently 16% of the total loaned capital) The increasing interest rate made real estate s company cannot find enough money to operate and the. .. the bargaining power of customers is the most threat to Diamond Island since this is the main reason the whole property market is slowing down and decrease Other than that, all other luxury apartment projects are discounting and decreasing their price range This makes them become threat of substitution for Diamond Island Diamond Island – The Porter Five Forces Analysis CONCLUSION In the pre-launching... If in 2010, 90% income of the company came from real estate, right now it only remains 20% With the economy depression, the distrust of real estate buyers and bad debt from major Vietnamese banks; it seems that the real estate market needs times to recover Right now a lot of companies is experiencing with restructuring to solve short term problems One of the solution is to increasing the percentage of . 2: Diamond Island – SWOT Analysis: 40 Table 3: Marketing schedule: 53   DIAMOND ISLAND GETTING THROUGH THE DIFFICULT TIME OF REAL ESTATE MARKET IN VIETNAM EXECUTIVE SUMMARY Diamond. effective marketing tools such as events, social media, E-news…would help Diamond Island overcome through the difficult time of real estate market in Vietnam.   PART 1: DESCRIPTION OF THE DIAMOND. purchasing Diamond Island units as an end user rather than an investment. The secondary market are real estate business, investors, they are local or expatriate who wants to invest in Diamond Island