Marketing Plan for Callan Property - Case Study Example

Table of Contents Table of Contents 1 CALLAN PROPERTY 2 (MARKETING PLAN) 2 SITUATION (S.W.O.T) ANALYSIS 2 Strengths: 2 Weaknesses: 3 Opportunities 3 Threats: 4 OBJECTIVES AND STRATEGY 4 Marketing and Financial Objectives 4 Strategy Statement 5 Target markets 5 Product positioning 5 MARKETING MIX 6 Product design and development: 6 Place (location): 7 Promotion plan: 7 Pricing / Rate: 8 PROJECTED INCOME STATEMENT 8 REFERENCES 9 CALLAN PROPERTY (MARKETING PLAN) SITUATION (S.W.O.T) ANALYSIS Strengths: The 10 houses that are under-construction are strategically-located across Perth metropolitan with the furthest being in Joondalup, 25-minute train ride to Perth's CBD. This location will be so attractive to people working in Perth’s Central Business District hence a preferred option for this category of people. All the ten houses are within a 15-minute-walk to the railway station. This assures the prospective tenants of the availability of transport unlike in other settlements that are far from train station and thus inconveniencing them. These houses will thus be the best option for people who wish to have quick access to the train station. The houses will be a unique type in Perth as it will consist of a house with four self-contained-apartments units. This will thus be attractive to tenants who want to have some level of privacy and also avoid the problems of having to share some sanitary with the other tenants (Cohen, 2006). The P-04 house has a covered 4-car car pod. The tenants will be ensured of an ample parking of their cars and also ensure their security. The backyard is landscaped with a sheltered entertainment area for the use of the tenants. The potential tenants will have a spacious ground to welcome and entertain their visitors without having to go miles to look for these facilities. Each tenant will have their own sub meter and therefore, they will not have to cost share the electricity usage bill. The tenants will prefer this as they will be able to utilize these facilities well and also be cost effective through proper use and control. Callan Homes is recognized as one of the most exclusive luxury home builders in Perth. As a matter of fact Callan Homes has a portfolio of over 30 home choice from which a prospective house buyer can make a choice. Weaknesses: The Callan home designs or the concepts are seldom proprietary. It is therefore not worth registering these designs since it is very easy for the competitors to get around it possibly by making only slight modifications to the original designs. This will mean that their competitive edge will be lowered for the competitors will come up with a similar design and pose competition in the same sector. Opportunities There is the possibility of high return given the unique-nature of this property-rental concept, business model. If this property is rent for business use the management can raise the rent and this will mean high return from the investment. There exists a niche for rental-accommodation with a difference to suit the varying needs of the tenants. The preferred choice of rental premises for most tenants have not been met by the previous apartments and Callan property will offer this kind of accommodation to suit the varying needs of these types of tenants. The current rental-homes are average houses which have been purchased by investors in order to lease them out. They are usually not designed for numerous strangers living below one roof. The parking difficulty is also among the problems and the inconveniences faced by the individual tenants Threats: The rate of occupancy can be cyclic and categorically depends on the location and the types of the tenant. Determination of an average occupancy-rate is usually not possible. Some of the properties often remain unoccupied for many months. This poses a threat to the Callan houses as they are uncertain of the occupancy of their rental premises and furthermore their rent income cannot be adequately predicted. OBJECTIVES AND STRATEGY Marketing and Financial Objectives To develop Callan’s house reputation to the potential tenants, the management expects to rent a huge variety of rental-accommodation for different target-market. The objective of Callan Property is that it can have a bit high rental - charge $250 per week (for a room in a tenant-sharing apartment that is close to the CBD of Perth) and the low rental charge of $75 per week for two people sharing a room out in the commuter zones of Perth. The name Callan Homes portrays the fact that the Callan Property is a home is really a nice accommodation far above the usual accommodation (Kennedy, 2000). Strategy Statement Target markets Callan Homes provide their rental accommodation to tenants who can either be college students who study in the institutions nearby, University students who would wish to reside outside the University dormitory-accommodation with their parents, workers who have been posted to Perth for a very short duration and would like a very suitable fully furnished accommodation facilities instead of staying in the hotels that are too expensive or staying with their friends, and a family that has sold their house and are in need of a temporal accommodation in the time lag between the sale of their house and the purchase of their new house. In addition, Calln Homes expect to make a development to their target market extend to anyone for whatever accommodation need, age group or any other reason (Debelak, 2000). Product positioning Callan Homes have over 30 different homes and has 10 new houses that are under construction. It is known for exclusive building of luxury homes in Perth. Moreover, Callan Homes charge for rent will be relevant and also quiet cheap and affordable. Consequently, their tenants have more wide choice for their accommodation preference. However, the P-04 house is new and its designs are most likely simple. As a result, Callan Homes will present the accommodation in a very new way as compared to its competitors. The P-04 major attributes are; Bedroom that have a king-sized bed, or two single-bed, and a built-in wardrobe Bathroom or toilet with a washing machine and a dryer Lounge quarter with sofas, work or dining table and a TV connection Kitchen quarter with a refrigerator, a stove oven, a microwave oven and a dishwasher A small balcony A reverse-cycle air conditioner Each tenant has his own sub-meter that records the electricity-usage which tenants have to pay. MARKETING MIX Product design and development: Callan House will consist of a block house on a 500 m2, single storey or 300m2, 2-storey building. There will also be a house with four self contained apartments. The slogan of Callan Homes, “investment home of the future”, will attract the attention of many tenants and make them have an interest in the P-04 houses. The houses close to colleges and the University will be designed in an exiting and creative so as to attract the attention of the students. This will be geared towards tenants acknowledging that Callan Property is a unique kind of accommodation in Perth. Different houses will have different facilities to meet the category of the intended tenants. This will be aimed at meeting the preferences of the tenants (Hiebing, 2004). Place (location): The 10 houses that are under-construction are strategically-located across Perth metropolitan with the furthest being in Joondalup, 25-minute train ride to Perth's CBD. This location will be so attractive to people working in Perth’s Central Business District hence a preferred option for this category of people. All the ten houses are within a 15-minute-walk to the railway station. This assures the prospective tenants of the availability of transport unlike in other settlements that are far from train station and thus inconveniencing them. These houses will thus be the best option for people who wish to have quick access to the train station. Promotion plan: The promotional objectives include: 1. Informing the tenants of the P-04 houses. 2. Promote rent or leasing for a excellent cause. 3. Change the accommodation through old and un-refurbished mindset and replace it with P-04. 4. To create a recurring tenant-base through good tenant relations (Westwood, 2005). Pricing / Rate: The 10 houses that are under construction will have an average cost of $700,000. Callan Homes will be renting the ten houses will range from high rental - charge of $250 per week (for a room in a tenant-sharing apartment that is close to the CBD of Perth) and the low rental charge of $75 per week for two people sharing a room out in the commuter zones of Perth. PROJECTED INCOME STATEMENT $ $ Income $ Rental income (5% * 700,000) 35,000 Total Income (A) 35,000 Expenses $ Marketing manager (salary) (25% *80,000) 20,000 Sales consultants (4) 50,000 Office overheads (allocated) 20,000 Council rates, water usage, sewerage, insurance, regular maintenance and cleaning 80,000 Total Expenses (B) 170,000 Net Profit/(loss) (A-B) (135,000) REFERENCES Cohen, W. A. (2006) “The Marketing Plan” New Delhi: John Wiley and Sons. Debelak, D. (2000) “Streetwise marketing plan: winning strategies for every small business” New York: Adams Media. Hiebing, R. G. (2004) “The one-day marketing plan: organizing and completing a plan that works” New Delhi: McGraw-Hill. Kennedy, D. S. (2000) “The ultimate marketing plan: find your most promotable competitive edge, turn it into a powerful marketing message, and deliver it to the right prospects” New York: Adams Media. Westwood, J. (2005) “The Marketing Plan Workbook” Pretoria: Kogan Page Publishers. Read More