Development of marketing strategy for real estate condotel da nang

Marketing objectives: Objectives:  Determine the target customers/consumers  Product positioning and developing  Build up Marketing strategy 4ps to push sales and gain benefits  En

TABLE OF CONTENT

INTRODUCTON 1

CHAPTER 1 COMPANY INTRODUCTION 5

1.1 About T&T Group 5

1.1.1 Vision 7

1.1.2 Mission 7

1.1.3 Core value 7

1.1.3 Company organization structure 8

1.2 Marketing Activities of the Company 9

1.3 Marketing objectives: 9

1.3.1 Objectives 9

1.3.2 Content of Marketing Strategy: 9

1.3.3 General idea product 10

CHAPTER 2: METHODS OF IMPLEMENTATION 12

2.1 Real estate and Marketing of Real estate 12

2.1.1 Definition of Real estate 12

2.1.2 Definition of marketing and Marketing in Real estate 12

2.1.3 What is a 'Marketing Strategy' 13

2.2 Method of implementation (research) 14

2.2.1 Definition of Secondary & Primary research: 14

2.2.2 Qualitative research 19

CHAPTER 3: COLLECTION AND ANALYSIS OF INFORMATION 23

3.1 Collection and analysis from Secondary Research 23

3.1.1 Condotel Real estate in DaNang Market 23

3.1.2 Market Analysis for Real Estate Project 24

3.1.3 ANALYSIS SWOT 32

3.1.4 Conclusion USP of Product: 33

3.2 Collection and analysis from Primary Research 34

3.2.1 Primary research to identify the target customers 34

3.2.2 Result and conclusion 40

CHAPTER 4: DEVELOP STRATEGY MARKETING MIX 45

4.1 Product 45

4.1.1 Product Positionning 45

4.1.2 Develop Product 47

4.2 PRICE (The amount of money paid by customers to purchase the product.) 54

4.2.1 Definition of price: 54

4.2.2 Pricing strategy 55

4.3 PLACE (channels, coverage, assortments, locations, inventory, transportation, logistics) 63

4.3.1 Definition of Place Marketing 63

4.4 PROMOTION (Promotion: advertising, personal selling, sales promotion, public relations 65

4.4.1 Promotion strategy for T&T Twin Towers (Condetel in DaNang) 65

CHAPTER 5: CONCLUSION 72

5.1 Fiding from the Intership Report (Research and Marketing strategy): 72

5.1.1 Research finding 72

5.1.2 Marketing strategy 78

5.2 Recommendation for Marketing Activities of T&T Land Company: 80

REFERENCE: 82

INTRODUCTON

Development strategy of Marketing take an important role in each Company, so does our Company T&T Land A marketing strategy helps Company create products and services with the best chances for making a profit This is because marketing strategy starts with marketplace research, taking into consideration your optimal target customer, what your competition

is doing and what trends might be on the horizon Using this information, you determine the benefit customers and clients want, what they‘re willing to pay and how you can differentiate your product or service from the competition T&T Land – a member of T&T Group is in the field of real estate, our products range from medium to high grade, including ground floor, apartment and vacation real estate Some of project that our Company have successfully implemented such as T&T Riverview Project - Hanoi ( Apartments), Long An Project in HoChiMinh City – in the South of VietNam (ground land), T&T Victoria in Nghe An (Luxury Apartment with 45 utilities and services in the middle of VietNam)… Continue to inherit that success, in this time, we focus on investing Vacation Property, especially in DaNang province – the most living city in Vietnam (owns MyKhe Beach is one of six most beautiful beach in the World)

According to Statistics from the General Department of Tourism VietNam, in 2017, the country receives 12.9 million international visitors and

50 million domestic visitors This figure exceeds the target of 2025 and is forecast to continue to grow in 2018

According to Ms Nguyen Hoai An, representative of CBRE Limited, The number of tourists increased each year In 2016, tourist growth of 30%, in

2017 also grew over 29% The rapid growth of tourists has caused the supply shortage This is the reason why the vacation property and specially Condotel (Apartment combine Hotel) is boomming development

According to the statistics of the Vietnam National Administration of Tourism, in May 2018, total visitors to Da Nang are estimated at 3,208,315,

of which international visitors are estimated at 1,356,272, an increase of

51.3% over the same period of 2017 Total revenue is estimated over 11,000 billion, up 53.6% over the same period in 2017 Therefore, DaNang is potential market for investing vacation property

The Marketing Problem of T&T Company is:

How to develop an effective Marketing strategy for the Vacation Real estate project in DaNang

Marketing objectives:

Objectives:

 Determine the target customers/consumers

 Product positioning and developing

 Build up Marketing strategy 4ps to push sales and gain benefits

 Ensure product in the market

Content of Marketing Strategy that I must do in this Intership report:

 Researching market to determine targeted customers

 Developingthe marketing strategy and the 4ps program

Approaches and problem solving method: in this Report I use

Secondary data and Qualitative research (interview focus group) Combination of 2 methods increases reliability and gets the most successful results With Secondary date, I search information through internet document

as Savill or CBRE, which are reputation Company in Research Market in VietNam and in the International In addition, I collect information from Sales, Competitors, professional in Property I use secondary data to analyze market (PESTEl), analyse SWOT of the Project

Situation of real estate market in Danang by secondary research:

The condotel on Da Nang market is rising rapidly, making the market become hot and competitive Currently tourism resort is still a potential development segment and a very important role for the economy of Da Nang city, in which coastal projects dominate over (about price and absorption)

When it comes to primary research, I conduct interview focus group (qualitative research)

I conduct Quanlitative research because by taking survey, I can look at the numbers to quantify customer opinions, attitudes and so on to create results from a larger sample size with investing Condotel in DaNang I am looking forward to finding the bahaviour and tendency of customer investing

or buying Condotel

From the researching market and behaviour of customer in Real estate

field, I conduct interview focus group include 3 groups:

Group1: A group of professional real estate investors

They are not limit their age may be from 30 to 55 years old They are very smart, sophisticated and careful when they decide to buy or invest They usually invest in surfing, it means they gain benefit from buy and sell real estate quickly

Group 2: The young rich family

They are from 30 – 40 years old with high income They want to invest

to gain more benefit and accumulate assets for children In whole, they invest

to accumulate for future

Group 3: The group wants to assert social status

They are emerging rich people who quickly be the rich thanks to the online business, store owners, stock investors, bitcoin… They are quite young from 28-45 years old They want to assert themselves by showing their property real estate

Almost question in the interview is open – question, which will encourage interviewee share their point of view and comfortable to generate ideas The interview will be control by me It includes two part:

Part 1: Administration introduces about topic and asks interviewee

about their information and some of general question These questions relate

to the bahaviour of customer of Condotel

Part 2: Administration ask question from Interview guide, interviewee

focus on question about: product, the Price, the demand of customer for Condotel and experience of consumers…

After doing qualitative research by interview focus group I find: Awareness of Condotel

Factors affect the customer's decision to buy Condotel

Five factors to consider when investing Condotel:

 Location of project:

 Legal certainty

 Profitability assessment

 Design & scale

 Investor - Management unit

Customer’s concern:

Factors related to the project

- Price for sublease? - Location, traffic

- Delivered furniture, utilities and services

- Progress of the handover?

- The time of hand-over determines the time when the apartment they invest into exploited profits, so this is also the factor investors consider

CHAPTER 1 COMPANY INTRODUCTION

1.1 About T&T Group

LEGAL REPRESENTATIVE:

Mr Do Quang Hien - General Director

QUALITY OF SUBSIDIARIES, MEMBER COMPANIES, JOINT VENTURES COMPANIES:

More than 60 companies

―The goal of becoming a leading economic group in the country and in the region; Doing business in many fields and sectors.‖

T&T Group is a multi-disciplinary group, which is famous and reputious company in Vietnam The scope business of T&T Group involves Finance & Investment, Transport Infrastructure, Port & Logistics, Agriculture, Forestry & Fisheries, Industry and Trade, Minerals, Energy & Environment, Health, Education & Sport and specialy Real estate

Real estate is one of the key sectors of the T&T Group, which is

managed by T&T Land Urban and Industrial Park Development JSC (T&T

Land) - a member of T&T Group

With strong financial strength, T & T Group is currently the owner of major real estate projects such as:

Apartment, trade center building, office for rent in Hanoi and

1.1.1 Vision

T & T Group is constantly striving to become a nation's richest

economic organization, bringing great value to the social community and enhancing the value of our employees' lives through the material and spiritual development conditions

1.1.2 Mission

To become a strong, multi-national, sustainable economic corporation, and develop the brand name of T&T Group be prestigious and competitive in the country and internationally

1.1.3 Core value

"Solidarity and Cooperation" creates the strength of the corporation

"Dedication and Prestige" for every customers and partners

"Innovation in each product, service and field of activity

"Profit and Efficiency" is the basic value of business activities

"Professional and standardized" is the core value of corporate cultu

1.1.3 Company organization structure

Organizational chart T&T Land (Real Estate Company belongs to T&T Group)

,

,

Chairman of T&T Group

Chairman of T&T Land

General Director

Legislation Department

Procedure Department Vice General Director

Responsible business

Assistant team

Sale 2 Department

Sale 1

Department

Marketing Department

Sale 3 Department

t

R &D Department

Accounting department

Human resource

1.2 Marketing Activities of the Company

I work in Marketing Department of our Company Marketing Department plays a vital role in promoting the business and mission of the Company It serves as the face of T&T Land, coordinating and producing all materials representing the business It is the Marketing Department's job to reach out to prospects, customers, investors and/or the community, while creating an overarching image that represents your company in a positive light

We We have done quite a lot of successful projects such as T&T Riverview in HaNoi, T&T Victoria in Nghean (the middle of VietNam), T&T Long Hau in Hochiminh City (the South of Vietnam),…And now we do strategy marketing for Condotel DaNang project

1.3 Marketing objectives:

1.3.1 Objectives

Object:

 Determine the target customers/consumers

 Product positioning and developing

 Build up Marketing strategy 4ps to push sales and gain benefits

 Ensure product in the market

1.3.2 Content of Marketing Strategy:

Research market to determine targeted customers

1.3.3 General idea product

Cognitive problem: The tourism, resort real estate market in some

coastal areas such as Da Nang, Nha Trang, Phu Quoc have flourished, attracting the attention of investors in and out nation

According to the report of 16 coastal provinces and cities have scale resort projects, in 2017 there are 77 projects with 16,437 hotel rooms, 11,174 villas, 12,056 hotel apartments (Condoltel) has been invested in construction

large-Idea product: There for, We will develop the Resort Project (Condotel

5*) in Da Nang with a total area over 20,000 m2, located by the coast of Da Nang City The first step we just on building CT1 + CT2 Towers on the land with an area of 5,000 m2 The Project on the Vo Nguyen Giap street, which

is thought that billion-dollar street This is the most prime location in DaNang

Definition of Condotel: A condo hotel, also known as

a Condotel, hotel-condo or a Contel, is a building, which is legally a Condominium but which is operated as a Hotel, offering short term rentals, and which maintains a Front Desk

Condo hotels are typically high-rise buildings developed and operated

as luxury hotels, usually in major cities and resorts.These hotels have condominium units which allow someone to own a full-service vacation home When they are not using this home, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as

it would any other hotel room

CHAPTER 2: METHODS OF IMPLEMENTATION

2.1 Real estate and Marketing of Real estate

2.1.1 Definition of Real estate

Real estate is property made up of land and the buildings on it, as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water and mineral deposits Although media often refers to the "real estate market," from the perspective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial Examples of residential real estate include undeveloped land, houses, condominiums and town houses; examples of commercial real estate are office buildings, warehouses and retail store buildings; and examples of industrial real estate include factories, mines and farms

2.1.2 Definition of marketing and Marketing in Real estate

- ―Marketing‖ is a social and managerial process by which individuals

and groups obtain what they need and want through creating, offering, and exchanging products of value with others – Philip Kotler

This is more of an old-school, college-professor definition, which while accurate, is fairly cold

- ―Marketing‖ is the process by which companies create customer

interest in products or services It generates the strategy that underlies sales techniques, business communication, and business development It

is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.‖ — Wikipedia

I like how this is so focused on both the strategic and functional aspects

of marketing, but especially that it‘s so customer-focused – the word customer

is in it three times, more than any other word!

―Marketing‖ is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings that have

value for customers, clients, partners, and society at large.‖ — American Marketing Association

This definition took the AMA years of debate to create It is a very comprehensive, yet concise definition, encompassing the product development, marketing communications, pricing, and strategic aspects of marketing

“Marketing” is not only much broader than selling; it is not a

specialized activity at all It encompasses the entire business It is the whole business seen from the point of view of the final result, that is, from the customer‘s point of view Concern and responsibility for marketing must therefore permeate all areas of the enterprise.‖ — Peter Drucker

Management guru Drucker also advocates that marketing is everything, plus he provides reasons to back it up

"Marketing of Real Estate" is a social and managerial process by

which individuals and groups obtain what they need and want through offering and exchanging land and creating, offering and exchanging buildings directly and indirectly to others In order to understand and analyze this definition, as well as the concept of this dissertation the various terms will be defined in this chapter

2.1.3 What is a 'Marketing Strategy'

2.1.3.1 Definition of Marketing Strategy

A marketing strategy is a business's overall game plan for reaching people and turning them into customers of the product or service that the business provides The marketing strategy of a company contains the company‘s value proposition, key marketing messages, information on the target customer and other high-level elements

The marketing strategy informs the marketing plan, which is a document that lays out the types and timing of marketing activities A company‘s marketing strategy should have a longer lifespan than any individual marketing plan as the strategy is where the value proposition and

the key elements of a company‘s brand reside These things ideally do not shift very much over time

2.1.3.2 Marketing mix

I have read a lot of Marketing Document Some of authors say that marketing involves 4ps: Product, Prcie, Place and Promotion However, others say that Marketig mix is 7ps: Product, Prcie, Place, Promotion, People, Process, and Physical enviroment

The marketing mix definition is simple It is about putting the right product or a combination thereof in the place, at the right time, and at the right price The difficult part is doing this well, as you need to know every aspect of your business plan.Marketig The marketing mix is predominately associated with the 4P‘s of marketing, the 7P‘s of service marketing

The marketing mix is The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market - Kotler and Armstrong (2010).The marketing mix indicates the appropriate combination of four P‘s—product, price, promotion, and place—for achieving marketing objectives The components are also known as marketing mix variables or controllable variables as they can be used according to business requirements In 1960, E Jerome McCarthy in his book, Basic Marketing, popularized a four-factor classification, the so-called four P‘s—product, price, place, and promotion

Conclusion: In my opinion, we should focus on Marketing mix 4p

because it is suitable with our Product We sell product – Condotel apartment not service Marketing 4ps is well enough and figured out what they exactly want However, we also consider with 3 elements People, Process, and Physical enviroment in marketing mix to combine

2.2 Method of implementation (research)

Method: in this Report I use both Secondary data and Primary research (interview focus group).I combine 2 methods to increase reliability and get the most successful results

2.2.1 Definition of Secondary & Primary research:

2.2.1.1 Secondary research

Secondary research is a type of research that has already been

compiled, gathered, organized and published by others It inc ludes reports and studies by government agencies, trade associations or other businesses

in your industry For small businesses with limited budgets, most research

is typically secondary, because it can be obtained faster and more affordably than primary research

A lot of secondary research is available right on the Web, simply by entering key words and phrases for the type of information you‘re looking for You can also obtain secondary research by reading articles in magazines, trade journals and industry publications, by visiting a reference library, and by contacting industry associations or trade organizations One excellent source

of secondary research data is government agencies; this data is usually available free of charge On the other hand, data published by private companies may require permission, and sometimes a fee, for you to access it

Pros of secondary research:

 Saves time

 It is cost effective

 The data is usually very extensive

It gives the basis of primary research

 Easy to access

May help in clarifying the research question

 It gives insights into the primary research:

 It is easy to compare data

It is easy to mine data

Cons of secondary research:

Primary definition: Secondary research contains data that requires the user to understand the primary research definition of terms before they can comprehend the data

Data inaccuracy: The data collected in a Secondary research can often be inaccurate and not up to date which means that it may not always be relevant

Time lag issues: There are issues of delay and stale data when dealing with secondary data and it may not apply to the current situation

It may not be specific: The data collection using Secondary research methods may not be specific to the subject under study which means additional research needs to be done

The information may be incomplete: The data collected when conducting Secondary research will not always be sufficient or complete Quality of the researcher: Secondary research requires that the primary researcher should have been very qualitative and that the data available is of high quality and can be used in a proper and relevant manner

The data is not timely: The data collected during Secondary research is not timely and in most cases the data may be outdated

The data may be inappropriate: The data available during Secondary research can always be inappropriate and this makes the process of conducting Secondary research irrelevant

Lack of control over the quality of the data: It is difficult to control the quality of the data available during Secondary research as opposed to primary research where you do most of the work

The data is biased: The data available in secondary research is often biased owing to the fact that the primary researcher was trying to satisfy his/her own data needs

With Secondary date, I search information through internet document

as Savill or CBRE, which are reputation Company in Research Market in VietNam and in the International In addition, I collect information from Sales, Competitors, professional in Property I use secondary data to analyse market (PESTEl), analyse SWOT of the Project

Situation of real estate market in Danang by secondary research: The condotel on Da Nang market is rising rapidly, making the market become hot and competitive Currently tourism resort is still a potential

development segment and a very important role for the economy of Da Nang city, in which coastal projects dominate over (about price and absorption) Price:

The average price of 39 - 60 million / m2

The most traded price range is 40-50 million VND / m2

The highest price (location) 70tr / m2 - central location, sea view, the management of prestigious hotel in the world – Whyndham

The most expensive area: My Khe Beach, the center of the DaNang city This area concentrates may Condotel, five-star resorts, hotels, in the center of Da Nang city, regular activities of entertainment and festival, specially is Apec conference

2.2.1.2 Primary research

I conduct myself (or hire someone to do for you.) It involves going directly to a source —usually customers and prospective customers in your target market — to ask questions and gather information Examples of

primary research are:

 Interviews (telephone or face-to-face)

 Surveys (online or mail)

 Questionnaires (online or mail)

 Focus groups

 Visits to competitors' locations

Pros of Primary research:

Targeted Issues are addressed The organization asking for the research has the complete control on the process and the research is streamlines as far

as its objectives and scope is concerned Researching company can be asked

to concentrate their efforts to find data regarding specific market rather than concentration on mass market

Data interpretation is better The collected data can be examined and interpreted by the marketers depending on their needs rather than relying on the interpretation made by collectors of secondary data

Recency of Data Usually secondary data is not so recent and it may not

be specific to the place or situation marketer is targeting The researcher can use the irrelevant seeming information for knowing trends or may be able to find some relation with the current scenario Thus primary data becomes a more accurate tool since we can use data which is useful for us

Proprietary Issues Collector of primary data is the owner of that information and he need not share it with other companies and competitors This gives an edge over competitors replying on secondary data

Cons of Primary Research:

High Cost Collecting data using primary research is a costly proposition as marketer has to be involved throughout and has to design everything

Time Consuming Because of exhaustive nature of the exercise, the time required to do research accurately is very long as compared to secondary data, which can be collected in much lesser time duration

Inaccurate Feed-backs In case the research involves taking feedbacks from the targeted audience, there are high chances that feedback given is not correct Feedbacks by their basic nature are usually biased or given just for the sake of it

More number of resources are required Leaving aside cost and time, other resources like human resources and materials too are needed in larger quantity to do surveys and data collection

When it comes to primary research, I conduct interview focus group (qualitative research)

2.2.2 Qualitative research

I choose Quanlitative research because by taking survey, I can look at the numbers to quantify customer opinions, attitudes and so on to create results from a larger sample size with investing Condotel in DaNang I am looking forward to finding the bahaviour and tendency of customer investing

or buying Condotel

To determine targeed customer I conduct qualitative research: Interview focus group to understand the demand, behaviour and trend

of customer about Real Estate Condoel in Danang – Tourist city

2.2.2.1 What is Qualitative research?

Qualitative research is designed to reveal a target audience‘s range of behavior and the perceptions that drive it with reference to specific topics or issues It uses in-depth studies of small groups of people to guide and support the construction of hypotheses The results of qualitative research are descriptive rather than predictive

Qualitative research methods originated in the social and behavioral sciences: sociology, anthropology and psychology Today, qualitative methods in the field of marketing research include in-depth interviews with

individuals, group discussions (from two to ten participants is typical); diary and journal exercises; and in-context observations Sessions may be conducted in person, by telephone, via videoconferencing and via the Internet

In this research, I choose Quanlitative research because by taking survey, I can look at the numbers to quantify customer opinions, attitudes and

so on to create results from a larger sample size with investing Condotel in DaNang I am looking forward to finding the bahaviour and tendency of customer investing or buying Condotel

Methods of qualitative research:

Qualitative researchers use their own eyes, ears, and intelligence to collect in-depth perceptions and descriptions of targeted populations, places, and events Their findings are collected through a variety of methods, and often, a researcher will use at least two or several of the following while conducting a qualitative study There are many kinds of qualitative research methods, such as Direct observation, Open-ended surveys, Oral history, Participant observation, Ethnographic observation, Content analysis, Focus group and In-depth interviews (Introduction to Qualitative Research Methods:

A Guidebook and Resource By Steven J Taylor, Robert Bogdan, Marjorie DeVault)

In this research, I choose Focus group in Hanoi, Hochiminh and Danang City, which is the target customer market In a focus group, i engages 3 group of participants in a conversation designed to generate data relevant to the research question Each focus groups can contain 12 participants who are real estate investors and potential customers After

conducting focus group interview with them I can find the trend investing that occurs within a specific community

2.2.2.2 Pros and cons of quanlitative research

Qualitative research has both benefits and drawbacks On the plus side, it creates an in-depth understanding of the attitudes, behaviors, interactions, events, and social processes that related to investing in real estate specially in Vacation real estate When doing vacation real estate research, we find that the

advantages of qualitative research are that we are able to discover the ―why‖ behind certain behaviors; this is because instead of analyzing numbers, we are able to use language and behavior of the consumer Another advantage of qualitative research in doing research is that there is a great deal of flexibility involved For instance, if a focus group is taking place and the client decides they would like to add a question or explore a certain idea further, they can have the course of the focus group changed This is because unlike an online survey, the client is able to watch the focus group as it happens

On the other hand, we know that the downsides of qualitative research are that its scope is fairly limited so its findings are not always widely generalizable We also have to use caution with these methods to ensure that they themselves do not influence the data in ways that significantly change it and that they do not bring undue personal bias to their interpretation of the findings

I Conduct Interview focus group base on 3 group and guideline question for these interviewees:

Group1: A group of professional real estate investors

They are not limit their age may be from 30 to 55 years old They are very smart, sophisticated and careful when they decide to buy or invest They usually invest in surfing, it means they gain benefit from buy and sell real estate quickly

Group 2: The young rich family

They are from 30 – 40 years old with high income They want to invest

to gain more benefit and accumulate assets for children In whole, they invest

to accumulate for future

Group 3: The group wants to assert social status

They are emerging rich people who quickly be the rich thanks to the online business, store owners, stock investors, bitcoin… They are quite young from 28-45 years old They want to assert themselves by showing their property real estate

Conclusion:

With the combination of primary and secondary research, I have an accurate assessment of the DaNang market situation, the demand and behavior of customer,get information of Competitives

In addition, I know the tools of marketing to tough the Customer‘s journey From that, I can define target customer, build up product to meet the demand of customers, and set up suitable marketing strategy

So that is the reason why I use both of method secondary research and primary research

CHAPTER 3: COLLECTION AND ANALYSIS OF

INFORMATION 3.1 Collection and analysis from Secondary Research

3.1.1 Condotel Real estate in DaNang Market

From the statistic of Savills and CBRE Company – which are professionors in analyzing Real estate Market in VietNam and in theInternational:

With the explosion of the Condotel, DaNang will be overshadowed by high-end resorts However, the experts said that there is still room for development of 4 to 5 stars hotels and resorts because the exploiting capacity

is currently very good (about 70%)

Expected, the Condotel segment will continue to increase to 3,800 rooms by the end of 2017 from 21 hotels, bringing the total number of rooms

in this segment to more than 16,800, up 40% from 2016 By 2019, it is estimated that 19,600 rooms of 3-5-star hotel will be launched

The growth of visitors to Da Nang in Q2 / 2017 has boosted the business results of the hotels in the area increased significantly with the average room rate of 4-5 stars to reach 117.6 USD / room / night, up 3% per year and average room occupancy was 62%, up 2% per year Leading this

segment is the four-star hotel having revenue has increased by an average of

37% over the same period last year

3.1.2 Market Analysis for Real Estate Project

I research market by myself (going to Danang to investigate local market and competitors) and through Secondary data Secondary research is

the process of gathering, analyzing and interpreting information about a

market, about a product or service to be offered for sale in that market, and

about the past, present and potential customers for the product or service;

research into the characteristics, spending habits, location and needs of your

business's target market, the industry as a whole, and the particular

competitors you face

Steps of doing marketing research

3.1.2.1 External analysis: PESTEL

P- Politial:

- The political situation:in Danang is always stable Da Nang has

many policies to support and develop resort real estate

E – Economic

- The potential for economic development:

DaNang is in the top places with the highest economic growth in the country From 2012 to 2016, the local GDP growth rate is now 8-9%, much

higher than the national GDP growth rate

Contributing to Da Nang's growth in recent years has been mainly driven by the tourism service and the industrial-construction sector

Define

objective &

problem

Determine research design

Design &

prepare research instrument

Sampling Date &

Collection

Visualize &

Communicate result

Analyze data

Comment [1]: Trong phần này bạn ko nên

dùng từ Market Research ở Title lớn, mà chỉ nên để là Market Analysis Sau đó giửi thích cụ thể hai nguồn thông tin sử dụng gồm Thứ cấp (thu thập từ các nguồn sẵn có) và Sơ cấp (thông qa nghiên cứu định tính)

Sau khi có thông tin sẽ tổng hợp thông tin dạng PEST và SWOT

Major real estate companies invest to Da Nang include: Vingroup, Sun Group, Novaland, Alphanam Group

Da Nang economic targets:

Economic growth: maintaining economic growth rate of 12-13% / year,

making Danang a place to promote economic development in the vicinity

Economic structure: shift towards services - industry, construction - agriculture The expected economic structure of the city up to 2020 is: services: 55.6%, industry and construction: 42.8%; Agriculture: 1.6%

By 2020, the city's GDP accounts for about 2.8% of the country's GDP; Export turnover in the period of 2011-2020 will increase 19-20% / year on average; GDP per capita reached 4,500 - 5,000 USD; maintaining the proportion of budget revenue to 35-36% GDP; The average annual technology innovation rate is 25%

S - Social

- Geographical location:

Da Nang is located at 15o15‘ to 16o40‘ in the latitude North, 107o18'30

" to 108o20'00" east longitude, bordered by Thua Thien Hue province to the north, Quang Nam province to the south and west , East sea bordering the east With the central position of the whole country, Danang is 765km far from the north of Hanoi and 964km far from the south of Ho Chi Minh City, connecting the Central Highlands via Highway 14B and the gateway to the sea of Central Highlands and Lao Country The trading centers of Southeast Asia and the Pacific are located within a radius of 2000 km from Da Nang city, Vietnam

Da Nang is an economic center and one of the largest cultural, educational, scientific and technological centers in Central Vietnam - the Central Highlands DaNang is also the Vietnam's fourth largest city, behind Chi Minh, Hanoi, Hai Phong City The city is located along the South Central Coast Danang is one of the first three centrally-run cities in Vietnam (along with Hai Phong and Can Tho)

T- Technological

Local infrastructure and technology are developed in a consistent and modern way.

There are more and more big Investor such as Vingroup, Alphanam Group, The Empire Group are investing in DaNang in the field of Infrastructure, Real esteate, applying smart device in Hotel, Condotel,…

E – Environmental

The real estate market in DaNang

The condotel on Da Nang market is rising rapidly, making the market become hot and competitive Currently tourism resort is still a segment of the potential development and a very important role for the economy of Da Nang

city, in which coastal projects dominate over (about price and absorption) Tourism potential:

Da Nang is known as one of the most desirable cities, an ideal tourist destination, the city has the most beautiful beach on the planet And most of all, DaNang is now one of the domestic tourist destinations that attract a lot of domestic and foreign tourists After being voted as one of the most attractive destinations in Asia, it is said that Da Nang tourism is booming, increasing in number of domestic and foreign tourists, diverse types of services, travel products

MyKhe Beach is voted one of the six most beautiful beach in the Earth

Danang is a city with a great potential for tourism development, a major tourist center of the Vietnam The northern part of the city is surrounded by high mountains with the Hai Van pass - The most beautiful landscape mountain in Vietnam In the west, the Ba Na tourist resort is located at an altitude of over 1000m, with a cable car system of four world records, and the largest indoor Fantasy Park in South East Asia Son Tra peninsula is north-east with 400 hectares of primeval forest, rich in flora and fauna In the south-east is Ngu Hanh Son mountain The city also has a system of temples, pagodas, oriental architecture, churches in Western architecture, the most typical museum is Cham Art This is the largest museum exhibiting Cham artifacts in Vietnam

DaNang to be host of major tourism events such as: The International Fireworks Show has been staged continuously since 2008 In May 2012, Da Nang launched the International Parachute Competition June is the annual

"Summer Appointment" event, gathering many activities of marine recreation The city is also surrounded by three world cultural heritages: Hue, Hoi

An, My Son A little further is the Bach Ma National Park, and the natural beauty of the Phong Nha Ke Bang Da Nang is considered as the center of the Central Heritage Road

Tourism statistics

Da Nang tourism has developed rapidly

According to the Da Nang Tourism Administration, in June 2017, the total number of visitors to Da Nang was 3,229,476, an increase of 33.2% over the same period last year, reaching 51.3% the plan for 2017; of which, international visitors were estimated at 1,222,398 arrivals, an increase of 72.2% over the same period last year Domestic visitors were estimated at 2,007,079 arrivals, an increase of 17.1% over the same period last year VND 9,494,661 billion, up 35.1% over the same period in 2016, reaching 51.3% of the plan in 2017

L – Legal

Da Nang hasbuilt regulation on condotel management and tourist villas

In particular, specific provisions: Responsibility of the Investor, the Owner, form of ownership (long term or fixed term) to ensure the definition of purely tourist apartment

3.1.2.2 Internal analysis (include analysis Market & Competitors)

Definition of internal analysis: An internal analysis is an exploration of the T&T Company‘s competency, cost position and competitive viability in the marketplace Conducting an internal analysis often incorporates measures that provide useful information about strengths, weakness, opportunities and threats (called a SWOT analysis) The data generated by an internal analysis

is important because i can use it to develop strategic planning objectives to sustain and grow your business

 Competitors analysis:

Đà Nẵng

Coco bay Wonderland

Alphanam Luxury Apartment Location Located in front of

My Khe Beach, Vo Nguyen Giap street, Danang City with private beach

Intersection of Pham Van Dong - Vo Nguyen Giap street – prime location in front

of My Khe Beach

ruong Sa road, Hoa Hai ward, Ngu Hanh Son district, Da Nang city

Plot of land A1 - 4 high-class Redstar villa,

Vo Nguyen Giap street, Phuoc My ward, Son Tra district Danang

Key Visual

Communicationmessage Green hotel according

tointernational standards - 5 star

convergence

Named the project with

Cocobay wonder land The direction of communication is aimed

at the busiest

5 star hotel apartment with a permanent property certificate

Dự án Furama Đà Nẵng Whynham Solei

Đà Nẵng

Coco bay Wonderland

Alphanam Luxury Apartment

hotel apartment

No specific communication message

management Whynham and has a large resort exchange system

amusement park, where investment for children with spiritual values

Managed and operated

by Fourpoint Shareaton

Communication tools Social media, PR,

website, OOH, event, advertising, vov, digital marketing

Social media, website,

pr, magazine, won the real estate in Vietnam

They have not promoted marketing &

communication

Quảng cáo truyền hình, OOH, KOL, vov, pr báo chí, social media:

FB, youtube, website, event…

Social media, PR news, website, OOH, event, Tv advertising, vov

Success factor Commitment to high

profit 10% in 10 years, support bank loans 80%, 0%

interest rate in 18 months; prestigious

The location is excellent, sea view, exchange system resort, Hotel management is Whyham – famous in the world

High profit policy, located in entertainment complexes, attractive investment about prices, low-cost entertainment services accompanying

Shaping the hotel brand, Condotel Luxury Beautiful project location, Savill is the management of block apartment, the hotel

Dự án Furama Đà Nẵng Whynham Solei

Đà Nẵng

Coco bay Wonderland

Alphanam Luxury Apartment

owner, beautiful position, interior decoration, exchange system resort

 Establish a 5 star hotel brand

Good communication strategy => impress the customer

block is Fourpoint Shareraton, forming ownership of the apartment longterm

Apart from these projects, Hoa Binh Group's Condotel Hoa Binh Green project was handed over in lately 2017

The message of the project is the first golden hotel in Danang, is beautiful project with location at the Han river bridge, view Gulf and apartment price is quite soft compared to other projects Investor is a prestigious These are competitive advantages

3.1.3 ANALYSIS SWOT

STRENGTH

- The prime location, located on Vo

Nguyen Giap street, opposite to the

East Sea square, has sea view

Locate in the center of DaNang City -

where regularly occurs entertainment,

festival and important events

- The project has not cooperated with famous hotel management units in the world

- Not having resort and tourism complex

- Not form to stay as home

- Average size of Apartment Condotel

is large compared to condotel products

in the market

OPPORTUNITY

- Be profitable from future price

increases

- Da Nang tourism market is still

developing well, so there is a chance to

develop Hotel Appartment or Condotel

- The trend of investing in the coastal

area of My Khe, Vo Nguyen Giap

street is hot, (many large and high-end

projects with high price

in and built streng brand name with customers such as VinGroup, Sun Group, Alphanam Group, Coco Bay, Prestigious investors such as Alphanam, Sungroup and Sovico also cooperate with reputable five star hotel management companies such as Sheraton, Novotel, Wyndham )

- Condotel Danang market also has many projects that own a beautiful location, the resort exchange system, full facilities, services

- The political situation in Da Nang is complicated, some real estate owners are under investigation which can affect the customer‘s deciding to buy/invest

3.1.4 Conclusion USP of Product:

 DaNang Condotel project located in DaNang is the most most livable city in Vietnam

 This project is on MyKhe Beach which is the top of 6 best beautiful beach in the World In addition, in here is the center of DaNang city, Convenient connection to nearby tourist attractions in DaNang & Hoian

Perfect position, ensuring profitability

 Twin towers Condotel with the highest height of 190m are allowed

to be built along the coast

This is an advantage to promote communication and sales.Impress

to Towers Architecture

 Project has fully legal permits and land using rights

 Almost of Condotel Apartments own sea view which is very nature with sea, air, sun, wind

 Equipped with 5 star international quality facilities:

1 Highest seaside Skybar / Sky restaurant in Da Nang,

2 Infinity overflowing swimming pool with 1500m2

3 Automatic underground parking

4 Shophouse center, ballroom sea view

5 The other facility such as: spa, gym, massage, playing ground

3.2 Collection and analysis from Primary Research

3.2.1 Primary research to identify the target customers

3.2.1.1 General identify customer

According to experts and investors in Real estate, nowsaday customers tend to invest to Condotel Real Estate Market

Condotel, the combination of condominium and hotel, is a new type of real estate property that investors can use as a channel of investment, beside their own needs for a new residential home As the market develops, there are

an increasing number of projects appear all around Vietnam, mostly in tourist famous cities, creating many choices for buyers and investors

Because this type real estae brings more benefit to customers Different from ordinary residential apartments, the buyers are suggested to join a rental program with management companies which can rent their units out for short

or long-term period The rent profit is usually to be promised about 12%/year for the owner

8-Therefore, the customer of this kind of real estate produc are the rich with high income or they are professional investor They used to own house, car and valuable asset,

Consumers of Condotel Real Estate can be divided into 3 groups:

Group1: A group of professional real estate investors

They are not limit their age may be from 30 to 55 years old They are very smart, sophisticated and careful when they decide to buy or invest They usually invest in surfing, it means they gain benefit from buy and sell real estate quickly

Group 2: The young rich family

They are from 30 – 40 years old with high income They want to invest

to gain more benefit and accumulate assets for children In whole, they invest

to accumulate for future

Group 3: The group wants to assert social status

They are emerging rich people who quickly be the rich thanks to the online business, store owners, stock investors, bitcoin… They are quite young from 28-45 years old They want to assert themselves by showing their property real estate

3.2.1.2 How to conduct qualitative research (Focus interview)

To determine targeed customer I conduct qualitative research:

Interview focus group to understand the demand, behaviour and trend

of customer about Real Estate Condoel in Danang – Tourist city

Methods of qualitative research:

Qualitative researchers use their own eyes, ears, and intelligence to collect in-depth perceptions and descriptions of targeted populations, places, and events Their findings are collected through a variety of methods, and often, a researcher will use at least two or several of the following while conducting a qualitative study There are many kinds of qualitative research methods, such as Direct observation, Open-ended surveys, Oral history, Participant observation, Ethnographic observation, Content analysis, Focus group and

In-depth interviews (Introduction to Qualitative Research Methods: A Guidebook and Resource By Steven J Taylor, Robert Bogdan, Marjorie DeVault)

In this research, I choose Focus group in Hanoi, Hochiminh and Danang City, which is the target customer market In a focus group, i engages 3 group of participants in a conversation designed to generate data relevant to the research question Each focus groups can contain 12 participants who are real estate investors and potential customers After conducting focus group interview with them I can find the trend investing that occurs within a specific community

Pros and cons of quanlitative research

Qualitative research has both benefits and drawbacks On the plus side,

it creates an in-depth understanding of the attitudes, behaviors, interactions, events, and social processes that related to investing in real estate specially in Vacation real estate When doing vacation real estate research, we find that the advantages of qualitative research are that we are able to discover the ―why‖ behind certain behaviors; this is because instead of analyzing numbers, we are able to use language and behavior of the consumer Another advantage of qualitative research in doing research is that there is a great deal of flexibility involved For instance, if a focus group is taking place and the client decides they would like to add a question or explore a certain idea further, they can have the course of the focus group changed This is because unlike an online survey, the client is able to watch the focus group as it happens

On the other hand, we know that the downsides of qualitative research are that its scope is fairly limited so its findings are not always widely generalizable We also have to use caution with these methods to ensure that they themselves do not influence the data in ways that significantly change it and that they do not bring undue personal bias to their interpretation of the findings

3.2.1.3 Implementation

In order to collect these types of data for a study, a target population, community, or study area must be identified first It is not possible for researchers to collect data from everyone in a sample area or community

Therefore, the researcher must gather data from a sample, or subset, of

the population in the study

The goal of qualitative research is to provide in -depth understanding and therefore, targets a specific group, type of individual, event or process

To accomplish this goal, qualitative research focus on criterion -based

sampling techniques to reach their target group There are three main types of qualitative sampling: purposeful sampling, quota sampling, and

snowballing sampling

Actual deployment

a, Sampling

In this study I chose purposeful sampling

Purposeful Sampling is the most common sampling strategy In this type of sampling, participants are selected or sought after based on pre-selected criteria based on the research question In the fact that, the study is attempting to collect data from customer‘s behavior of investing in resort property in DaNang The sample size is predetermined base on preresearch and experience, understanding of analysts/professionals

With the consulting of Mr Minh - Marketing Manager of T&T and result from researching market, the targeted customers of this project is about

is about from 35 to 60 years old They have high income, own house, car and luxury smartphone, watch, clothes… and tend to invest in real estate or gold,

stock They are deviced into 3 groups: professional real estate investor, young rich family, the group of people want to assert yourself

Number of interviewee: The interview will be presented by a group of

12 people There are three type of interviewee:

People who are professional real estate investor They are not limited by the age, they a lot of expensive property such as Real estate, luxury car, watch & clothes… In addition, these people very smart in investing and have influence on others people They are interested project with have high profitable

Number of interview: 04