Brand building for real estate
New Straits Times (Property Times), 18 October 2003
TRENDS
By Lim Lay Ying
The final article in a series on the importance of developing a reputation
Things we previously discussed on branding:
· Branding helps to reinforce the identity of a real estate development and distinguish it from its competitors.
· Branding ensures that a project’s presence is felt in the real estate marketplace.
· A positive brand perception gives the developer more leverage than any other asset.
· Branding helps a project (and hence the company behind it) to build long-term growth, increase asset value, and gain loyal customers and users.
· There are tremendous opportunities in the real estate industry for developers to build themselves into successful brands.
Today on branding, let’s take an inside look at the brand building process for real estate and consider the elements that should be addressed along the way. They include:
The image
Real estate branding is built from a foundation of market research. The process begins with a review of everything pertinent about the project and its mastermind, aided by tapping on feedback from customers and employees. After all, in order for a developer to portray a future brand position for its project, it must first understand where it is today.
Well-executed market research will reveal where the company stands in the minds of the target audience, what differentiates its products and services from its competitors, and how it should serve its customers better.
This forms the basis of a powerful set of information needed to formulate the barnd strategy.
It is this that distinguishes the winners from the losers and creates leaders in the real estate industry. Emerging outfits such as YTL Land, Gamuda Land, and SP Setia, are raising the bar in the industry and will continue to do so as they are constantly in touch with the market.
Content and vision
A brand is developed based on a development’s existing content as well as on a vision of what should be there.
Quite often, the content comes in the form of various components such as residential precincts, business (retail, commercial, industrial) areas, health and education facilities and all other functions supporting the project.
While it is the interaction of various functions and a development’s physical aspect that builds a brand and brings it to life, priorities must be given to the qualities that radiate the image the developer wants to portray.
For example, if a retail venture wants to be branded as a glamour centre, it should include stores such as Chanel, Versace and Armani. In the same sense, a residential project desirous of a similar image should have houses with up-market appeal together with well-maintained parks that should incorporate fountains and public art.
Sentul West and Sentul East in Sentul, Kuala Lumpur, by YTL Land & Development Bhd., and Sierramas in Sungai Buloh, Selangor, by Tan & Tan Development Sdn. Bhd., for instance enjoy enhanced brand equity compared to many others in their respective localities because of the added value associated with the avant-garde and sophisticated.
People add the value in their minds which in turn reinforces the brand for the project.
SP Setia Bhd’s new townships, Bukit Indah I & II in Johore Baru, have also created more than just ripples down south, and are setting new benchmarks for property developers there.
The brand strategy
One reason that brands such as McDonald’s, Disney, and Starbucks have been successful for so long is that they are constantly in touch with their customers’ changing tastes and demands.
In the words of Larry Light, McDonald’s executive president and global chief marketing officer, it is “a competitive race with no finishing line” – hence the brand building strategy is never a static one.
McDonald’s recently launched a global campaign on Sept 2 in Munich, Germany, to project a new brand image that is aimed at propelling it into the 21st century.
Three weeks later on Sept 23, National Panasonic also embarked on a global exercise to drop the “National” name in favour of only “Panasonic” worldwide.
The underlying rationale behind their moves is founded on the aim of invigorating the brands and make them appealing to customers globally.
Real estate developers in the country are beginning to realize that branding pays and the smart ones are building their brands by getting their advertisements to market an entire lifestyle rather than just products. As an example, DRB-Hicom member Glenmarie Cove Development Sdn Bhd is highlighting a “riverfront lifestyle” for its venture in Klang to communicate the resort living concept.
The brand blueprint
The brand should become a driving force behind a project’s development and marketing efforts.
It should be effectively communicated to key market segments so that its differentiation and positioning can be understood, and the tangible and intangible benefits realised. This is achieved with the help of a blueprint to engineer the intended brand perception.
The effectiveness of a blueprint is determined by five basic components :
1. The uniqueness of a name and the ease with which it is recalled;
2. The graphic representation of the name through a distinctive logo, symbol, or icon;
3. The byline usually accompanying the name that is used to describe the project to the target audience;
4. The tag line, often in the form of a slogan expressing the tangible and intangible benefits to consumers; and
5. The story which relates the project’s history and hence its authenticity.
Brand ownership is something that can be possessed by every project and developer. Many destinations have successfully incorporated brand ownership in their niches. Bintang Walk in KL, Times Square in New York City, Fisherman’s Wharf at Pier 39 in San Francisco, Sanctuary Cove in Brisbane, and Covent Garden in London, are some outstanding ones.
Hence, there’s every reason to believe that branding pays in the real estate marketplace and is not the exclusive domain of consumer products.
Lim Lay Ying is the managing director of Research Inc (Asia) – a marketing research and consultancy firm affiliated to Insignia Brooke (HK). Readers can also access this article at www.research-inc.com.my. For inquiries, call +603-2092 4966. |
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