THE MARKETING STRATEGY FOR "VALLEY PARK"

Abstract

With a potential supply of 29,000 private housing coming onstream, including 10,000 existing unsold units, 1994 will be a very competitive year for residential property developers. In such a scenario, inexperienced developers who have hopped onto the bandwagon may face cashflow problems if their projects do not sell well. This will especially be the case if they are ignorant of the principles of marketing, which emphasizes the needs of the consumers, as opposed to selling, which focuses on the seller. This research examines the marketing strategy of "Valley Park", a condominium residential development during the year's competitive market situation. It uses this case study to show the successful application of the marketing principles. The subject property is a huge development consisting of 728 units located along River Valley Road. It is developed by River Valley Properties Pte Ltd, a subsidiary of F & N, a public listed company. Prior to formulating any strategies, a developer needs to undertake research. The market situation has to be studied and analyzed to single out existing untapped niches and also to identify a certain target market that is capable of generating maximum profits to the developer. At this stage, the developer has to manipulate the four marketing tools of Product, Price, Place and Promotion to entice this targeted market. Valley Park offers the purchasers a close to ideal set of attributes such as prime locality, a 999-year tenure, and a wide range of facilities. The developer has also satisfied the consumers' intangible desires such as prestige and class by packaging the development into one of exclusivity and individuality. Taking into consideration market forces and competitor pricing, its pricing strategy is able to capture the desired market and reap maximum profits at the same time. Engaging a suitable marketing agent and employing appropriate promotional media and tools, including television advertising, which befits the status of such a development, also contributes to the success of the development. Launching the development at the soonest possible time is another clever calculation on the part of the developer that places the property ahead of competitors. From this case study, it can be seen that success is achieved only with an understanding and application of the marketing principles. As such, it can therefore be seen that success is by no means a coincidence for Valley Park.