Establishing a marketing strategy for luxury hotel and residence project of tms group join stock company in quy nhon city, binh dinh province

Scholastic: 2017-2018 ESTABLISHING A MARKETING STRATEGY FOR LUXURY HOTEL AND RESIDENCE PROJECT OF TMS GROUP JOIN STOCK COMPANY IN QUY NHON CITY, BINH DINH PROVINCE Author: Nguyen Thi Mai Anh Advisor: Dr Dao Van Tien Release year: 2018 EXECUTIVE SUMMARY Under the Subject "Establishing a Marketing Strategy for Luxury Hotel and Residence Project of TMS Group Join Stock Companyin Quy Nhon city, BinhDinh Province", the report consists of main parts: Firstly, introduce need, objective and values of the report Secondly, provide an overview about the TMS Group Joint Stock Company Thirdly, set up a marketing strategy for Luxury Hotel and Residence Project of TMS Group Joint Stock Company in Quy Nhon city, BinhDinhprovincethroughcollecting primary data and conducting preliminary research on the real estate market in Quy Nhon city, then assessing the demand of customers for real estate products such as land, apartment, hotel apartment,ect.Whereby, proposing a development plan of TMS Group real estate products which is suitable to market demand After that, makinganalysis of above project in a comparative relationship with competitors, which helps to position products, identify target customers, build competitive factor and price for the product and ultimately building a marketing strategy for that project in order to promote the business effectively and gain market share for TMS Group in Quy Nhon market Finally, providing conclusion, recommendations and limitations of the report INTERNSHIP CERTIFICATE This is to certify that the Internship Report entitled "Establishing Marketing Strategy for Luxury Hotel and ResidenceProject of TMS Group Joint Stock Company in Quy Nhon city, BinhDinhprovince"submitted by Mrs Nguyen Mai Anh is research work for the award of the MastersofMarketing& Prospective in IAE Nantes Economie& Management at the Universite De Nantes, that the report has not formed thebasis for the award previously of any degree, diploma, associate ship, fellowship or anyother similar title of any university or institution Also, it is certified that the report represents an independent work on the part of the candidate The data presented in the report are entirely collected and analyzed by author which are reliable and accurate at the time of report Place: Ha Noi, Vietnam Date: Signature of Author: Signature of the Advisor: ACKNOWLEDGEMENT Situated in an area oriented to develop tourism in the South-Central region, Quy Nhon is a charming natural place with many famous places such as EoGio, Ghenh Rang Tien Sa, Champa Twin Towers, Ky Co island, Cu Lao Xanh, Phuong Mai Peninsula…ect Along with the general trend of the country, more than ever, BinhDinh in general and Quy Nhon in particular are determined to increase investment attraction in a sustainable way through open policies, creating open and transparent environment for investors Recognizing the advantages of landscape and culture, BinhDinh province has been issuing many policies and orientations for tourism development In particular, there are plans for infrastructure and transport development Key projects such as: upgrading and expanding National highway 1A, National highway 1D, National highway 19, Nhon Hoi - Tam Quan coastal road, ThiNai bridge; to build and expand the civil aviation area - Phu Cat airport; Quy Nhon seaport has been investing and building When these works are completed, not only tourism but the economy, real estate here also promised to have a breakthrough growth According to BinhDinh Department of Culture, Sports and Tourism, in 2016, BinhDinh has welcomed 3.2 million visitors, accompanied by the tourism revenue growth of 44%, reaching 1,500 billion VND It is expected that from now to 2020, the province will attract 5.5 million visitors In which, there are about 800,000 international passengers, with an average annual growth rate of 15%/ year, the total tourism revenue will reach 10.000 billion VND, with an average annual growth rate of 25%/year (BinhDinh Statistical Office; Statistical Year Book 2016; 2017) According to the BinhDinhtourismoriented development in general and Quy Nhon in particular, vision to 2030, the province will focus on investment, exploiting tourism resources towards professional, branded, sustainable development, tourism products with high quality, competitive and bold identity Simultaneously, Quy Nhon city is planning to become one of the central cities of the Central Coast, development-oriented industries - ports - services - tourism to become one of the typical destinations like Da Nang, Nha Trang and Phan Thiet… However, according to the survey, the entertainment venues, shopping centers and resort facilities in Quy Nhon are still very few and not meet the increasing demand of tourists Up to the end of the 2017 first quarter, the province has 150 accommodation facilities with 4,000 hotel rooms, including four-star hotels and only one five-star hotel (BinhDinh Statistical Office; Statistical Year Book 2016; 2017) This modest figure shows a huge shortage of luxury apartments for tourists coming to BinhDinh as the number of tourists is two times higher than Phu Quoc and equal with 70% of Nha Trang Taking advantage of the beginning opportunities and development, exploring the potential of tourism and the increasing number of tourists in the locality, many big, reputable and strong financial strength investors have quickly chosen Quy Nhon as the place to "take off" resort real estate development, including TMS Group For the business which is putting their first foot in the field of real estate investment under a strong competition market, TMS Group needs to have a breakthrough strategy to gain competitiveness and market share Especially, for potential emerging markets such as Quy Nhon, there is not much competition from big markets such as Hanoi, Ho Chi Minh City, Da Nang and Nha Trang… a proper marketing strategy will not only helping the company to dominate the market, creating competitive advantage but also helps to create brand value and solid position for the corporation Marketing strategy is one of the key determinants of the business, project or product success Effective marketing strategy is one of the most important factors for Samsung to become one of the fastest growing brands in recent years The brand value of Samsung in 2000 was $ 5.2 billion After Samsung continued to invest 508 million USD for branding promotion in 2001, the company's brand value rose to $ 6.3 billion, after 13 years, Samsung brand’s value, rose to $39.6 billion, top 8th World Brand (Thanh Tú, Why Samsung Surpasses It’s 8th World Brand, Dantri, 2013) Recognizing the importance of a marketing strategy, the subject poses the need to develop a marketing strategy for the project as one of the most important tasks that determine the success of the project, in addition to a good product and effective business strategy THANK YOU First, I would like to express my gratitude to Economy & Management, Université de Nantes and International School, Vietnam National University for giving me the opportunity to accomplish this Master of Marketing & Prospective course It has been a valuable experience in my life, especially for my career I am also appreciation to my supervisor, Dr Dao Van Tien on his guidance, encouragement and companion with me through this report Without his valuable advice and assistance, I may not materialize and complete this report timely Secondly, I would like to give thankful for TMS Group Join Stock Company, where I work during the completion of this report until now My collage, especially Ms Nguyen Ngoc Hoa – Vice CEO of TMS Group, who is responsible for all Sale & Marketing activities at TMS Group, she gave me all the best condition to finish this report, shared with me all her experiences, deep knowledges in this field Hopefully this report will contribute something to the group and its development Finally, I would like to express my best regards to my family, who always beside me and be my infinite momentum to complete this report TABLE OF CONTENTS EXECUTIVE SUMMARY INTERNSHIP CERTIFICATE THANK YOU TABLE OF CONTENTS LIST OF CHARTS & FIGURES Error! Bookmark not defined LIST OF TABLES Error! Bookmark not defined CHAPTER 1: INTRODUCTION Error! Bookmark not defined 1.1 Need of the report Error! Bookmark not defined 1.2 Objectives of the report Error! Bookmark not defined 1.3 Values of the report Error! Bookmark not defined CHAPTER II: THEORETICAL BASIS OF Error! Bookmark not defined MARKETING STRATEGY Error! Bookmark not defined 2.1 Definition of marketing strategy Error! Bookmark not defined 2.2 Necessity of marketing strategy planning Error! Bookmark not defined 2.2.1 Importance of marketing strategy planning Error! Bookmark not defined 2.2.2 Objective necessity to develop a marketing strategy for businesses in the market economy Error! Bookmark not defined 2.3 Levels of strategy: Error! Bookmark not defined 2.3.1 Corporate level strategy: Error! Bookmark not defined 2.3.2 Business unit level strategy: Error! Bookmark not defined 2.3.3 Functional strategy (Operational strategy): Error! Bookmark not defined 2.4 Strategic planning Error! Bookmark not defined 2.4.1 Concept Error! Bookmark not defined 2.4.2 Contents of the marketing strategy planning process Error! Bookmark not defined 2.5 Marketing strategies: Error! Bookmark not defined 2.5.1 Cost leadership strategy Error! Bookmark not defined 2.5.2 Product differentiation strategy Error! Bookmark not defined 2.5.3 Focus strategy Error! Bookmark not defined 2.5.4 Generic strategy combinations Error! Bookmark not defined 2.6 Marketing strategy development process Error! Bookmark not defined 2.6.1 Marketing goal determination: Error! Bookmark not defined 2.6.2 Marketing environment analysis Error! Bookmark not defined 2.6.2.1 Macro environment: Error! Bookmark not defined a / Economic environment: Error! Bookmark not defined b/ Socio-cultural environment: Error! Bookmark not defined c/ Political-legal environment: Error! Bookmark not defined d/ Technological environment: Error! Bookmark not defined e/ Demographic environment: Error! Bookmark not defined f/ Natural environment: Error! Bookmark not defined g/ Global environment: Error! Bookmark not defined 2.6.2.2 Micro-environment: Error! Bookmark not defined a/ Industry environment analysis: Error! Bookmark not defined b/ Internal analysis: Error! Bookmark not defined c/ Analysis of SWOT matrix in the formation of business strategy: Error! Bookmark not defined 2.7 Marketing strategy Error! Bookmark not defined 2.7.1 Expansion Marketing Strategy (By Product - Market): Error! Bookmark not defined 2.7.2 Competitive Marketing Strategy Error! Bookmark not defined a / Market leader strategies: Error! Bookmark not defined b / Market Challenger Strategies: Error! Bookmark not defined c / Market follower strategies: Error! Bookmark not defined d / Market nicher strategy: Error! Bookmark not defined 2.8 Marketing - mix program (for each SBU) Error! Bookmark not defined 2.8.1 Product: Error! Bookmark not defined 2.8.2 Price: Error! Bookmark not defined 2.8.2.1 What is the price? Error! Bookmark not defined 2.8.2.2: Pricing methods Error! Bookmark not defined 2.8.3 Distribution: Error! Bookmark not defined 2.8.3.1 Concept, role and function of distribution Error! Bookmark not defined 2.8.3.2: Distribution Channel Error! Bookmark not defined a/ Distribution Channel concept: Error! Bookmark not defined b / Channel Design: Error! Bookmark not defined 2.8.4: Advertising - Communication: Error! Bookmark not defined 2.8.4.1: Basic concepts Error! Bookmark not defined 2.8.4.2: Implementation Tools: Error! Bookmark not defined a / Advertising: Error! Bookmark not defined b / Promotion: Error! Bookmark not defined c / Public Relations: Error! Bookmark not defined d / Direct marketing Error! Bookmark not defined e / Direct Selling: Error! Bookmark not defined CHAPTER 3: OVERVIEW OF THE TMS GROUP Error! Bookmark not defined 3.1 History, vision, mission and core values Error! Bookmark not defined 3.1.1 History Error! Bookmark not defined 3.1.2 Vision Error! Bookmark not defined 3.1.3 Mision Error! Bookmark not defined 3.1.4 Core values Error! Bookmark not defined 3.2 Structure of the TMS Group Joint Stock Company Error! Bookmark not defined 3.2.1 TMS Edu Error! Bookmark not defined 3.2.2 TMS Travel Error! Bookmark not defined 3.2.4 TMS Commercial: Error! Bookmark not defined 3.2.5 TMS International School Error! Bookmark not defined 3.2.6 TMS HR Error! Bookmark not defined 3.3.2 Function and duties of marketing department Error! Bookmark not defined a/ Research to establish marketing strategy: Error! Bookmark not defined b/ Market forecasting research: Error! Bookmark not defined c/ Product research and implementation organization of new product development program: Error! Bookmark not defined d/ Price research: Error! Bookmark not defined e/ Research marketing support tools and measures: Error! Bookmark not defined 4.1 Research on Real Estate Market in Quy Nhon, Binh Dinh Error! Bookmark not defined 4.1.1 Landscape Error! Bookmark not defined 4.1.2 Apartment market Error! Bookmark not defined 4.1.3 Condotel market Error! Bookmark not defined 4.1.4 Conclusion Error! Bookmark not defined 4.2 Introduction about The stars Complex TMS Luxury Hotel and Residence of TMS Group in Quy Nhon Error! Bookmark not defined 4.2.1 Project overview Error! Bookmark not defined 4.2.2 Competitive focus (USP) Error! Bookmark not defined 4.2.3 Product Positioning Error! Bookmark not defined a/ Positioning according to competitors Error! Bookmark not defined b/ Product Positioning through the image of the customer Error! Bookmark not defined c/ Product Positioning based on the characteristics of the product Error! Bookmark not defined d/ Position by quality / price Error! Bookmark not defined 4.2.4 SWOT analysis Error! Bookmark not defined a/ Strength: Error! Bookmark not defined b/ Weakness: Error! Bookmark not defined c/ Opportunity: Error! Bookmark not defined d/ Threaten: Error! Bookmark not defined 4.3 Target customers Error! Bookmark not defined 4.3.1 Customers purchase Apartment Error! Bookmark not defined a/ Segment by geography: Error! Bookmark not defined b/ Segment customers by demographics: Error! Bookmark not defined c/ Segment by purpose: Buy to stay, own a second home, sublease; speculative Error! Bookmark not defined d/ Segment by psychology, buying behavior Error! Bookmark not defined 4.3.2 Customers purchase Condotel Error! Bookmark not defined a/ Segment by Geography Error! Bookmark not defined b/ Segment by demographics: Error! Bookmark not defined b/ Segment by Purpose: Error! Bookmark not defined c/ Segmentby psychology & buying behavior Error! Bookmark not defined 4.4 Competitor analysis Error! Bookmark not defined 4.4.1 Analysis of competitive factor for condotel product Error! Bookmark not defined a/ Branding criteria Error! Bookmark not defined b/ Product Criteria Error! Bookmark not defined c/ Trade criteria Error! Bookmark not defined 4.4.2 Analysis of competitive factor for Hometel product Error! Bookmark not defined a/ Branding criteria Error! Bookmark not defined b/ Product Criteria Error! Bookmark not defined c/ Trade criteria Error! Bookmark not defined 4.5 Marketing strategy for TMS Luxury Hotel & Residence Quy Nhon Error! Bookmark not defined 4.5.1 Products Error! Bookmark not defined a/ Product classification Error! Bookmark not defined b/ Product development strategy Error! Bookmark not defined 4.5.2 Price Error! Bookmark not defined a/ Condotel sale price: Error! Bookmark not defined 4.5.3 Sales and buying process Error! Bookmark not defined 4.5.3.1 Phasing Sales Plan Error! Bookmark not defined 4.5.3.2/ Sale policy Error! Bookmark not defined a/ Apartment sales policy with profit commitment (Condotel) Error! Bookmark not defined b/ Sales policy for Apartment which is not committed to profit (Hometel) .Error! Bookmark not defined 10 2.1 invitation guests are entitled to exchange nights at hotels in the TMS system SALE POLICY DETAIL Option (customers not borrow from the Bank) 2.2 - Offering SH 150i ABS worth 110 million VND for one bed-room apartment - Offering 04 gold trees for 02 bed-room apartments Option (customers borrow from the Bank) - Preferential interest rates of 0% and grace period for original loan of customers borrowing from the Bank - Preferential Term: Until the customer received apartment handover or 20 months from the date of disbursement, whichever comes first - In cases where customers borrow 95% from their bank, right after signing sale contract, the customer will be entitled to receive the renting profit immediately after paying 95% of the purchase price with the condition that the customer pay the bank interest themselves and still receive the discounts or gifts under Option of this sales policy * Applying Conditions - When the project meets the requirements of the Bank - Customers have signed sales contracts (SC) or documents of equivalent value as stipulated by the investor (during the period from applying date of this sale policy to the time having other alternative sale policy…) - The discounted value will be directly deducted from the contract value and will not be included in the value of the lease contract and asset management b/ Sales policy for Apartment which is not committed to profit (Hometel) Table 22: Sale policy for Home-tel 1.1 RE-RENT POLICY Commitment to income from RENTING PROGRAM (CTCT) DETAIL - Revenue from renting program is divided by the proportion of clients 80% - Investors 20% - A lease management contract has a term of at least months - Payment period: Once every months, within 10 (ten) days from the end of each half year when The apartment of customer when handovers has to meet the interior standard condition of the investment or the furnishing of the investor 1.2 2.1 Condition of customers joining RENTING PROGRAM (CTCT) SALE POLICY DETAIL Option (customers not borrow from the Bank) 2.2 - Offering a package of VND 150 million (minus in contract value - GTHD) for one bedroom apartment - Offering 220 million VND interior package (minus in contract value) for bedrooms apartment - 02 years free of charge for operation management Option (customers borrow from the Bank) - Discount 5% contract value (Value not included VAT, maintenance fee) - Preferential interest rate 0% and grace period for original loan of customers borrowing from the Bank - Preferential Term: Until the customer received apartment handover or 20 months from the date of disbursement, whichever comes first - 02 years free of charge for operation and management services 80 * Applying Conditions - When the project meets the requirements of the Bank - Customers have signed sales contracts (SC) or documents of equivalent value as stipulated by the investor (during the period from applying date of this sale policy to the time having other alternative sale policy) DISCOUNT FOR EARLY PAYMENT DETAIL For Condotel customers paying from 70% of contract value upwards (not applicable to condotel customers paying 95% of contract value) For Condotel customers paying from 50% to 70% of the contract value For Condotel customers paying from 30% to 50% of the contract value Discount 5.0% contract value of Discount 3.0% contract value Discount 1.8% contract value of of c/ Discount policy when buying bulk Table 22: Wholesale policy (in bulk) Product Quantity 2-3 products Discount rate Additional 1% discount/ product 4-6 products Additional 2% discount/ product 7-9 products Additional 3% discount/ product From 10 products Additional 5% and above discount/ product Applying Condition - Customers order multiple products in the same day - A customer buys from the second product (different time of the first appartment), the discount is calculated basis on the second ones Note: - The commitment renting profit is calculated on the sale price of the apartment after the discount Group discount policy / bulk purchase is applied concurrently with other current programs / policies 4.5.3.3 Sales strategy and distribution system development Project distribution options Table 24: Project distribution options OPTION Main partner Advantages Disadvantages OPTION AN EXCLUSIVE DISTRIBUTOR AGENT CEN GROUP or CENTRAL GREEN LAND - These are two of the largest real estate distributors in the market today, having large sales force and many of the F2 units - Unify the policy and implementation plan - Sharing MKT fee with investors OPTION OPTION MANY AGENTS 20% Investor DISTRIBUTION 80% Distribution Agents 3-4 Local agents 1-2 Hanoi agent - Commission costs are often lower than Option and Distributors have less claims to the investor - Local distributors who are familiar with the market, have experience in distributing FLC Group projects - These distributors have - It is often difficult to strengths in the North agree on the - Be proactive to the Investor in cases where the Distributor has failed to meet sales expectations - Minimize commissions compared to the two previous plans - Invest the cost of direct sales personnel 81 market and has not been involved in distributing real estate projects in Quy Nhon - TMS depends entirely on the distribution unit - In case of unsuccessful implementation, changing distribution strategy will be time consuming and costly - Great commissions Propose selection implementation plan, disturb the market information - Distributors can compete unfairly with each other Option Considering the advantages and disadvantages of the distribution options, the marketing department proposed to choose option 1: distribution on two main sales channels including distribution channel through agents (F1) and distribution channels via the direct sales department of the investor Specific breakdown rates are as follows: Table 25: Distribution of project rate 736 Ratio (%) Distribution the number of sales (Appartment) F1 Sale TMS Condotel 62 8.4 50 12 Hometel 674 91.6 539 135 80 20 Total number apartments: of project Ratio of selling appartment/ total fund (%) 4.5.4 Promotion 4.5.4.1 Key message/Slogan/Tagline a/ Slogan: The project brings to customers a new, unique product, being the combination of apartments for living and apartments for investment Therefore, the slogan of the project shows both outstanding features of the product: "Wise Investment - live 5-star standard" The project slogan represents two important meanings: First of all, investing in TMS Luxury Hotel & Residence Quy Nhon is a smart choice, a secure, sustainable and high profitable financial solution Second, for customers to buy for staying, will enjoy living 5* standard in their own home with the service of high end facilities, international standards In addition, the project's communication message is tied to the Unique Selling Score (USP) of the product to highlight the competitive point of the product comparing to its competitors in the market: 82 - TMS Luxury Hotel & Residence Quy Nhon is a complex of * hotel & apartment of * beach resort ideally for living in QN, ideal resort, smart investment - TMS Luxury Hotel & Residence Quy Nhon - Experience an upstream lifestyle, living with 5* standard in your own home - TMS Luxury Hotel & Residence Quy Nhon - A problem of rental investment & potential increase price in future - TMS Luxury Hotel & Residence Quy Nhon - A convergence of high-class community including successful businessmen, officials, model families with status, education and prestige position in society 4.5.4.2 Media Chanels a/ Analyze customer behavior on the Media channels Table 26: Customer behavior on the Media channels Obj ect Details Local officials BEHAVIOURS Picked up by Goverment ️ Car: working hours 7:30 ✔ am-11am, 1:30 pm-5pm Moving by personal cars, working hours in accordance with business hours Move by private car, working hours are not fixed Regularly moving by ️ plane, check-in in the nick ✔ of time Regularly traveling by plane / private car ✔ ️ Local Business man Nationwide Investors - - ✔ ️ ✔️ Approached channel for information Local radio, hour frames are 6:30 am-8am, 5pm6:30pm Advertising at famous car showroom in Quy Nhon VOV transport, VOV real estate news Magazines on the plane, VIP lounge at the airport ✔ ️ ✔ ️ ✔ ️ ✔ ️ ✔ ️ Lunch at the restaurant to increase the relationship ✔️ VIP lounge airport, airplane magazines like magazines Ads on Flight: magazines, pictures at cabin and luggage waiting areas Visual advertising at some restaurants which are frequently selected as QN's official reception venues: (standee, table stand ) 83 Dinner at home, often eat late (if not welcome guests) ✔ ️ ✔ ️ ✔️ Read newspapers in the morning, after arrival to the office ✔ ️ Play Golf, tennis ✔ ️ Like fashion, branded goods, make up, travel ✔ ️ HOBBIES Shopping at major local trade centers ✔ ️ ✔ ️ ✔ ️ ✔ ️ ✔ ️ Frequently using mobile / ipad for entertainment and work ✔ ️ HABITS Using mobie proficiently, tends to assert themselves on the social network in a clever way Have lunch at restaurant with friends, colleagues, and participate in local and central associations ✔ ️ such as Quy Nhon business association, businessmen association, ✔️ ✔️ ✔ ️ Television: local news at the end of the day (BTV), local and international news (7pm8pm), financial / social news in the evening VTV financial news, end day’s local and international news (7 pm-8pm) and 10pm Advertising / PR in local and central newspapers which are popularized in state agencies such as People, BinhDinh Newspaper Golf & Tennis Course Advertising at local famous hair salons / spas; Advertising at local and international travel consultancy sites Visual advertising and information at some major Trade centers Advertising at high-end stores (fashion, watches, accessories ) Advertising through internet applications: entertainment news channels, DSP connection channels (connect 1000 web sites and all internet applications including skype, FB, GDN admicro, coccoc same type of display) Advertising using mobile ads and popular applications / social networks (FB, zalo, viber, android app, apple app) Restaurants are regularly selected, as location for receiving guess, lunches, MKT directly through the associations 84 OTHERS Salary is stable, but not high, income comes mainly from other "sources" (demand for ✔ ️ high confidential life information/ real estate/ assets) Pay attention to health and family ✔ ️ Performing privately events for this audience, they will not engage crowded event with many purchasers Advertising at international hospital, local general clinics Advertising web display on stock investment sites, stock price tables, news channels related to economic finance ✔ ️ Interested in profitable investment information, always following fluctuations of stock exchange & real estate market ✔️ b/ Media channel Chosing the media chanels which are suitable for each kind of the target customers, at each period of project life circle is one of the most important mission of a Marketing Strategy Through the analysis of customer behavior on the Media channels, and “listen” to the trends of marketing in Vietnam, the Marketing Department recommends the use of specific Media channels as follows: Phases Customer Behavior Media chanel (I) Recognize Impression / Attention (II) Interests Favorites / Interests - Direct MKT: deliver leaflets - Tele-sale: Telephone, message - Email MKT - SMS brandname - WOM - Event: training sale, signing ceremony for Distribution Agents - PR Look for information - Search Engine Optimization - Mass Media: PR, Event, TV/R, OOH, DGM (IV) Favorites / Introduction to others (III) Buy / Try Action/ Share/ Interaction loyalty - Event (Launching, open official selling, Seminar, Training ) - Social Media - WOM - Customer Care Figure 9: Media Channels Advertising channel Understanding the importance of advertising in its promotion strategy, TMS Group attaches great importance to creating creativity in presenting images and messages about the project, to impress customers, helping raise its sales revenue On advertising requirements: TMS needs to meet the rigorous requirements that an advertising message needs to achieve Specifically: - As a company with nearly 15 years of experience in the field of labor export, as a leading 85 prestigious partner in the world’s most demanding markets - Japan, TMS group stepped into the field of real estate, with the philosophy of “Prestige” and the goal of bringing customers high quality real estate products However, not due to that reason, the advertising clip of TMS expresses rigid commitments, but it shows soft messages combined with the introduction of the beauty of Quy Nhon, fashionable lifestyle in a luxurious space, which cleverly combines the optimal financial analysis for customers while conveying a clear message to the customers: Investing in apartments at Quy Nhon TMS Luxury Hotel & Residence Project is “Wise investment, 5-star lifestyle” The multi-media marketing campaign aims to help consumers understand the benefits of “luxurious lifestyle, high-end convalescence and smart investment” through the use of beautiful 3D imaging technology, combined with the celebrities and emotional images which have a powerful effect on consumers The advertising campaign is replicated throughout the mass media with a uniform image of TMS Quy Nhon apartments: Great location, top fengshui, subtle, modern and beautiful design; five-star standard; presence of prestigious brands in Vietnam & International, etc to conquer the audience from unknown to know, love, trial, to loyal and share Regarding advertising media: For the purpose of bringing the TMS brand to the majority of customers nationwide, especially customers in Quy Nhon market, TMS uses all forms of central and local advertising (nationwide local), such as: television, radio, newspapers, outdoor advertising, digital marketing, etc In particular, special attention should be paid to television channels - Radio, Digital and OOH In addition to the traditional advertising media channels which still maintain the effect such as broadcasting and billboards, the Internet advertising in Vietnam in recent years are increasingly proving its dominance At the time of Q1 of 2017, Vietnam has 64 million Internet users, 61.73 million mobile Internet users in total 96 million people, accounting for 67% and 64% of the population, respectively Of those, 94% use daily Internet as a means of finding information, work and entertainment Therefore, online advertising will be one of the important communication channels in bringing the project information to target customers (We Are Social, Digital in 2017: Southeast Asia; 2017) Public relation channel 86 The investment in building consumer confidence is a long-term process that requires huge and long-term investments in marketing Therefore, in addition to investing in advertising channels, TMS Group also funds part of its investment in community-based activities: supporting BinhDinh flood victims, organizing major music events TMS Countdown Party 2018, organizing scavenging activities to clean Quy Nhon Sea, etc Through these activities, TMS Group will become closer not only to customers but also to BinhDinh people With a more customer-friendly approach, TMS Group is developing more and more community-oriented programs in the future 4.5.4.3 Phasing the plan of communication & budget Table 27: Phasing the period of communication & cost estimation N o I II ITEMS PHASE I Rumor, Launching & Booming up (From 25/9/2017 - 30/1/2018) PUBLIC RELATION Event 5,220,050,000 PR Article 380,260,000 Diplomatic 704,400,000 ADVERTISING Television/ Radio 1,440,000,000 Production/Printing 2,099,875,000 OOH - POSM 2,481,400,000 Digital & mobile 814,250,000 MKT Contingency cost (5%) 657,011,750 Total Marketing Budget Total Revenue (Not Include VAT) Marketing BUDGET / TOTAL REVENUE RATIO COST DISTRIBUTION Phase I 13,140,235,000 RATE OF 57.80% DISTRIBUTION PHASE II Sale Times (From 1/2/2018 30/8/2018) PHASE III Packeging (From - 1/9/2018 2/2019 TOTAL – 2,630,000,000 532,480,000 352,200,000 1,820,000,000 132,500,000 117,400,000 9,670,050,000 1,045,240,000 1,174,000,000 600,000,000 296,800,000 1,542,400,000 331,125,000 0 45,000,000 123,125,000 2,040,000,000 2,396,675,000 4,068,800,000 1,268,500,000 314,250,250 111,901,250 1,083,163,250 22,746,428,250 1,123,010,778, 989 2.00% Phase II 6,285,005,000 27.60% Phase III 2,238,025,000 9.80% 100.00% Conclusion: The total marketing budget of the project is expected to be 22,746,428,250 VND, equivalent to 2% of total project revenue, of which, 57.8% is focused on the Market Rumor, Launching & Booming up This is an important stage which requires strong and intense communication to build image and enhance the identity of the project to potential 87 customers Stage is the stage where the market has infiltrated the media, the marketing budget will focus primarily on direct marketing channels: organizing sales events to process the endowment funds and package the project: organize sales events to handle the end-of-life inventory and packaging of the project 88 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion Through market researches, the author proposes the marketing strategy of TMS Luxury Hotel & Residence Quy Nhon with the following main contents: Regarding type of product: The project plans to supply to the market two main types of products: condotel and self-service apartment (home-tel), targeted to customers who have the need to buy for accommodation and buyers to invest, in which 90% of customers buying Home-tel to stay in Quy Nhon, 90% of customers buying condotel to invest in Hanoi and Ho Chi Minh City Regarding the area structure, TMS Luxury Hotel & Residence Quy Nhon has an area ranging from 45m2 to 71m2, which is a one bedroom or bedrooms apartments Of which, one-bedroom apartments account for 62% of the total number of products Through the survey of Quy Nhon market, most large apartments (80m2 or more, bedrooms) are difficult to sell 90% of inventory of these projects are large apartments Therefore, the author proposes building the apartments which are small and have low investment suitable for young and medium-income families to opportunities to access & use superior products In addition, the products have love investment rate, high profitability and easiness to attract the attention of investors Regarding selling prices, the author recommends the average selling price of the condotel products VND 46 million and the selling price of home-tel is VND 36 million This is low compared to similar products in big markets such as Da Nang, Nha Trang and Phu Quoc However, this is the suitable price for Quy Nhon market The expected price of the project is just about 5% higher than the selling price of the direct competitor - FLC This is suitable price, which ensure the occupancy capacity of the market Although the product is positioned as high-end customer segment with 5-star standard, the selling price targets to medium and high-grade customers The project has a reasonable price rise roadmap and does not increase for more than 10% in a price revision phase The price revision phase focuses primarily on the Launching & Booming up phase Regarding time of sales: At the time of September 2017, there is no new project launched in Quy Nhon, some old projects such as FLC Sea Tower and FLC Nhon Ly have been sold out and there is only inventory of some large apartments with large area, high investment and difficulty to sell To utilize the heat of the market after the FLC Sea Tower project has been 89 “sold out” while using available sales force to sell to FLC and is no longer available for sales, the marketing department proposes to open production in September of 2017 The project is expected to be distributed on two main channels, including Sales Channel and F1 agents In order to increase efficiency and reduce risk for TMS Group, the author offers parallel distribution on both channels Especially, with the F1 channel, it is suggested to use local F1s, sales teams with knowledge of the market and experience selling project in Quy Nhon and available potential database Agents commit to postpone the progress of sales and share PR-MKT costs with investors, to ensure cash flow and build brand To increase the attractiveness and competitiveness of products, an attractive sales policy will be launched as soon as the product is launched: discount up to 5% of product value, offer gift package worth up to VND 220 million and free 02 years for Home-tel products For condotel products, TMS investor commits to release in 10 years with a profit rate up to 10% of contract value per year 5.2 Recommendations The project has a small scale (2600m2), with a high construction density (over 65%), the apartments have relatively small area (one bed-room apartment from 45m2, two bed-rooms apartment from 60m2) Therefore, to optimize the used space, the author proposed to use Scandinavian design style with the main white color, simple interior to create an airy space In addition, the use of smart furniture will help save the maximum space for the apartment For apartments to stay, the customers’ primary concern is always the quality of the work Therefore, TMS Group should consider the selection of the contractor for the project Especially, with the height of up to 42 floors on sandy soils with high subsidence level, it is necessary to have a capable and experienced unit to meet the strictest technical and aesthetic standards of the work The priority is given to first-class contractors who have experience in constructing high rise buildings equivalent to the Quy Nhon TMS project To meet and satisfy the maximum demand of customers for an apartment to live, both for convalescence and investment to earn profit, the project needs to integrate services and utilities to satisfy the above needs As of the third quarter of 2017, in Quy Nhon market, there have not been any complex coming into operation and Quy Nhon residents are still waiting for a high-end multi-purpose integrated project for the people to enjoy modern and fashionable lifestyle Besides, taking advantage of TMS in the field of education, the project will integrate the international school with the policy of recruiting priority residents of the TMS Quy Nhon project 90 For the first time, TMS deploys a real estate project in the Quy Nhon market, so TMS needs to deploy the market rumor to measure customers’ interest as well as explore market response with the price of product The market rumor time is expected to be weeks before the official launching In fact, the real estate market of Quy Nhon has witnessed the spectacular occupancy of the FLC brand with the level of product occupancy is always nearly 90% of the total sold products of projects However, FLC gradually loses its advantages due to a series of issues: slow progress of construction, late payment of rental income for customers, etc., resulting in a series of lawsuits and losing the trust of customers Therefore, in order to pull customers back to market, TMS needs to keep up with commitments made to customers on project progress, product quality and commitment to profitability To increase the trust of customers, TMS should cooperate with banks to guarantee progress for the project and guarantee profits for customers and investors 5.3 Limitations Due to the progress of launching the project, the market research was launched shortly in weeks With a limited number of employees, only employees and collaborators have collected data, synthesized, analyzed and made reports The research process is quite difficult due to the large area, the hot weather in Quy Nhon with severe sunshine and regular storms, interrupting the work Meanwhile, the data on the real estate market in Quy Nhon have never been published in an official report and have no secondary data The team must collect secondary data from various sources: authorities, project investors and real estate distribution agents in Quy Nhon With the limited time and lack of personnel, the team has not enough time and human resources to fully study the factors of the market to assess the overall effectiveness of the project The author will have a more comprehensive view of the market when comparing hotel room rates in Quy Nhon market so that it is possible to calculate the efficiency of the project when the project comes into operation with the capacity of more than 300 hotel rooms and hotel room source from more than 700 apartments operated by customers themselves This is an important study; however, it can be done in another marketing task Within the scope of this project, the author focuses on issues related to the real estate market in Quy Nhon, thus recommending and proposing overall marketing strategies and detailed action plans for each stage of the project In fact, this project has been opened for sale in accordance with the planned schedule After more than months of launching, the marketing strategy proved effective when a total of 91 nearly 60% apartments are traded (including condotel and home-tel apartments) With the current sales progress, when the project is handed over and comes into operation, the occupancy rate of the whole project will reach 95% 92 REFERENCES BinhDinh Statistical Office (2017) Statistical Year Book 2016 Thanh Tu (2013) Why Samsung Surpasses Its 8th World Brand The People's Committee of BinhDinh Province (2018).Investment Program of 2018; The People's Committee of Binh Dinh Province (2017).The socio-economic situation in 2016 and the key tasks in 2017 Binh Dinh Statistical Office (2017) Binh Dinh province's socio-economic situation in the first quarter of 2017 BinhDinh Statistical Office (2015)BinhDinh Statistical Socio-Economic Report, BinhDinh Population and Labor 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MARKETING STRATEGY FOR LUXURY HOTEL & RESIDENCE OF TMS GROUP IN QUY NHON CITY, BINH DINH PROVINCE 4.1 Research on Real Estate Market in Quy Nhon, BinhDinh BinhDinh is a coastal province in the South... TMS Group Profile 3.3.2 Function and duties of marketing department a/ Research to establish marketing strategy: Establish marketing and marketing mix strategy, marketing plan and business marketing. .. SUMMARY Under the Subject "Establishing a Marketing Strategy for Luxury Hotel and Residence Project of TMS Group Join Stock Companyin Quy Nhon city, BinhDinh Province" , the report consists of main