Marketing Plan - Local Agency Manual by First National Real Estate

LOCAL AGENCY M

B o o k l e t

MARKETING P

06 LONG 97 L

E IF

TAL CHLORINE EN F M

E RE

ELE

ISO I400I

IS O

Creating a comprehensive marketing plan for your office.

ECF

This product is printed with the environment in mind. Please visit www.kwdoggett.com.au and look for these logos to find out more.

F I R S T

N A T I O N A L

MARKETING D I S T R I B U T I O N P R I N C I P A L ( S )

L I S T

89 Hoddle Street Richmond VIC 3121 Phone : 1800 032 332 Fax : 1800 832 332 marketing@firstnational.com.au

S A L E S

P R O P E R T Y M A N A G E M E N T

O T H E R

www.fngateway.com.au

MARKETING P

SECTION 1 1

CREATING YOUR OFFICE MARKETING PLAN 1.

Executive Summary and Vision

Situation Analysis

Strengths, Weaknesses, Opportunities and Threats

(SWOT) Analysis

Critical Success Factors and Marketing Objectives

Marketing Expenditure / Budget

Action Plan

Marketing Calendar

SECTION 2 19

SAMPLE MARKETING PLAN 1.

Executive Summary and Vision

Situation Analysis

Strengths, Weaknesses, Opportunities and Threats

(SWOT) Analysis

Critical Success Factors and Marketing Objectives

Marketing Expenditure / Budget

Action Plan

Marketing Calendar

MARKETING P

SECTION 1

C R E A T I N G Y O U R O F F I C E M A R K E T I N G P L A N

2 CREATING

YOUR

OFFICE

MARKETING

PLAN

The Marketing Plan LAM booklet (Revised Version) focuses on developing a comprehensive marketing plan for your office. It is essential that you take the time to read through this booklet to assist in your planning. This booklet is split into three sections: 1.

How to write an office marketing plan;

Sample marketing plan; and

Marketing plan template.

SECTION 1 : HOW TO WRITE AN OFFICE MARKETING PLAN This section details the information that is required in each area of your marketing plan. It provides definitions and examples that could be of assistance when preparing your own plan. SECTION 2 : SAMPLE MARKETING PLAN This section is a detailed marketing plan for a fictitious member office, â&#x20AC;&#x2DC;First National Real Estate Richmondâ&#x20AC;&#x2122;. This has been provided to demonstrate how a completed plan should look and the level of detail that is required. Many of the areas within this plan have been modelled off the definitions outlined in Section 1. SECTION 3 : MARKETING PLAN TEMPLATE This section is a template of the plan used in Section 2. This template can be used to complete your own office marketing plan.

3 WHY

HAVE

OFFICE

MARKETING

PLAN?

A marketing plan is a written document that details the actions necessary to achieve a specified marketing objective(s). It can be for a product or service, a brand, or a product line. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. There is no doubt that planning is important. This section of the LAM will detail how your office can produce a marketing plan so that you and your team have a clear goal and expenditure outline for the coming year. In general terms, a marketing plan must contain the following information: •

A description and explanation of your current situation.

•

Expected results and objectives.

•

Identification of the resources required to achieve the desired results (including financing, time, and skills).

•

Identification of the action to be taken to achieve the desired results (objectives).

•

A clear methodology for monitoring results and adjusting the plan where necessary.

4 1 . E X E C U T I V E

S U M M A R Y

A N D

V I S I O N

A marketing plan must have an Executive Summary as an overview. It highlights the main objectives and goals, as well as key elements within the plan. It also acts as an introduction to your strategies for the coming year. You cannot prepare an Executive Summary prior to writing the marketing plan - it should be constructed once the entire plan has been completed.

Key questions to answer in an Executive Summary include: •

Where do you want your business to be in three years time?

•

What is your mission statement?

•

What are your business values?

•

What are the your business policies?

•

What are the key issues your business will face over the next 12 months?

5 2 . S I T U A T I O N

A N A L Y S I S

A Situation Analysis is divided into three main sections - internal analysis, competitor analysis and environmental analysis. Each section allows you to explore the environment in which your business operates - both internally and externally. You must consider all elements that affect your business and the way it operates on a daily basis. 2.1

INTERNAL ANALYSIS

An internal analysis looks at elements that are, to a certain extent, within your control. These elements are directly related to your specific business and the area in which it operates. When preparing an internal analysis, you should review your current situation as well as any changes that have been made in the past, or that will take place in the coming 12 months. A number of questions have been listed within each sub-section to help you prepare your internal analysis. The answers to these questions will assist in setting strategies later in the plan. 2.1.1

Market share and size

•

How many people reside within your business area?

•

What percentage of these are potential customers?

•

What percentage of these are your customers?

•

What is your market share goal over next 12 months - 3 years?

2.1.2

Office staff

•

How many staff in total?

•

How many sales agents?

•

How many property managers?

•

Administration staff?

•

How is the business structured?

•

What skills do your staff specialise in? Rural Property? Prestige Real Estate? Commercial Property?

6 2 . S I T U A T I O N

A N A L Y S I S

2.1.3 Demographics •

What are your trading suburbs?

•

Who resides within your trading suburbs?

•

Age?

•

Family make-up?

•

Income?

•

Ethnicity?

2.1.4 Commissions •

What is the average commission for your office?

•

How do your commission rates compare with competitors’ rates?

•

How often do you review your commission rates?

•

How often do you adjust your commission rates?

2.1.5 Advertising •

What form of office/brand advertising do you conduct on a regular basis?

•

How do you currently promote your office’s ‘points of difference’? Suggest

methods of improvement for future advertising.

•

What avenues do you use on a regular basis to advertise property?

For example eMagazines, local paper, state paper, letterbox drop.

•

What percentage of property advertising is business-paid?

•

What percentage of property advertising is vendor-paid?

•

Do you need to increase the level of vendor-paid advertising? If so, to

what extent? For example, will you implement a vendor-paid advertising

package system?

7 2 . S I T U A T I O N

A N A L Y S I S

2.1.6

Database Marketing

•

What is the size of your database?

•

How is your database utilised?

•

Who is responsible for database maintenance and management?

•

How do you use your database to advertise your business?

2.1.7

Market Research

•

What methods do you currently employ to find out more about your local market?

•

What were the results of recently conducted research?

•

How have you used this information to better your business practices?

•

What plans do you have for future research?

2.1.8 Training •

How often do you or your staff attend training?

•

How often do you or your staff attend training conducted by First National Real Estate?

•

What are the current qualifications held by yourself and your staff?

•

What opportunities exist for future training of staff?

2.1.9

Public Relations

•

How often does your business issue press releases to your local papers?

•

Does your office integrate the network’s public relations program into your office?

•

How will your office use public relations in future?

8 2 . S I T U A T I O N

A N A L Y S I S

2.1.10 Corporate Identity •

What steps have you taken to improve the corporate image of your office?

•

Do you regularly update your stocks of generic signboards?

•

Do your newspaper layouts comply with the specifications highlighted in the First National Real Estate

Style Guidel? What difficulties have you experienced?

•

Is your office signage compliant with the corporate brand guidelines?

•

Will you be conducting any major renovations or redecorating in the near future?

•

What steps will you take in future to improve your brand image?

9 2 . S I T U A T I O N

2.2

A N A L Y S I S

COMPETITOR ANALYSIS

The purpose of a competitor analysis is to gather and analyse information about the current activities and future plans of competitors. Knowing your competitors well will help you devise strategies to increase your market share in your local area. When conducting a competitor analysis you should first look at the company itself, for example, Competitor 1. Competitor 1 is a franchise operation with approximately 700 offices worldwide (international branches located in New Zealand, Fiji, Indonesia and China). This will help determine the type of competitor you are dealing with - whether it is a multi-national with high-level support or an independent with no support. When reviewing a competitor’s ‘points of difference’, you must consider what the competitor has that sets them apart from all others. For example, Competitor 1’s point of difference may include their involvement with Qantas and its Frequent Flyer program, access to referrals, and metropolitan television and radio campaigns. ‘How they advertise’ allows you to list all advertising avenues the competitor employs in your local area - including national activity (should they be part of a larger group). For example, Competitor 1 conducts brand advertising on national television - metropolitan and regional areas. When preparing a competitor analysis, it is advisable to set it in a table format for ease of reference (please see below).

Company Competitor 1 l 700 offices worldwide l Branches in Australia, New Zealand, Fiji, Indonesia, China

Points of difference l Qantas Frequent Flyer program

How they advertise l National TV l Radio

10 2 . S I T U A T I O N

2.3

A N A L Y S I S

ENVIRONMENTAL ANALYSIS

An environmental analysis reviews all external issues that concern the real estate industry as a whole. It looks at State, Federal and local council conditions, issues and laws that have a bearing on the way the real estate industry conducts itself. It is advisable to keep abreast of all industry issues as they arise throughout the year. Often, businesses keep a file of all newspaper or journal articles they have read relevant to the real estate industry or changes in legislation. Other important documents such as council notices may also be useful when writing an environmental analysis. When writing reviewing the environment in which you operate, it is essential to also consider the network in which you belong to. Issues surrounding First National Real Estate as a group would also be relevant in this section, e.g. fee increases, member retention issues, etc.

11 3 . STRENGTHS, WEAKNESSES,OPPORTUNITIES AND THREATS (SWOT) ANALYSIS To complete a SWOT analysis, you must identify and evaluate your businessâ&#x20AC;&#x2122; most significant strengths, weaknesses, opportunities and threats. Evaluating your own capabilities will assist in devising marketing strategies to help achieve the objectives set for the year ahead. STRENGTHS List the key strengths of your office.

STRENGTHS l 30 years in real estate

What it means l Local recognition

Action l Advertise years in business

WEAKNESSES List your offices weaknesses, whether they include fierce competition in local areas, staff or resource shortages etc.

WEAKNESSES l Corporate Identity compliance

What it means

Action

l Brand presented differently in local papers

l Use fusion2.0 to prepare all advertising

l Outdated material still being used in office

l Review all office material (including stationery and signboards) and update accordingly

l Outdated signboards still being used on property

l Ensure brand is presented correctly every time OPPORTUNITIES What opportunities exist to improve your business?

OPPORTUNITIES l Greater Community Involvement

What it means

Action

l Extension of advocacy role will lead to increased exposure of our brand in local community

l Review new opportunities with charitable organisations l Sponsor First National Foundation - Australian Red Cross l Hold public fundraising activities

12 3 . STRENGTHS, WEAKNESSES,OPPORTUNITIES AND THREATS (SWOT) ANALYSIS THREATS What are the threats currently facing your business? A ‘threat’ can include anything from competitors poaching staff to downturns in the real estate market.

THREATS l Downturn in the real estate market

What it means l Property sales will decline

Action l Develop strategies to increase brand awareness in local area and become top of mind l Implement Utopia to better target buyers and listings

13 4 . C R I T I C A L

S U C C E S S

F A C T O R S

M A R K E T I N G

A N D

O B J E C T I V E S

Taking into account all of the information gathered in Section 1, 2 and 3 of the marketing plan, you now complete a list of the major goals for the year. For example : •

Plan four major campaigns utilising the ‘We put you first.’ creative offered through National Marketing.

•

Increase local paper advertising from a half page to a full page every week.

•

Introduce vendor-paid advertising packages.

•

Sponsor the First National Foundation - Red Cross Emergency Services.

•

Develop greater online and social media campaigns.

•

Adopt an energy efficiency stance.

Following on from identifying the goals, you should now write a list of objectives to answer the question ‘what is the aim of the above goals?’ •

To increase marketing by 3% over the next 12 months.

•

To increase staff levels to focus on specialist areas of operation.

•

To introduce a set vendor-paid advertising fee.

•

To develop a reputation as a community-minded local business.

•

To create goodwill.

14 5.MARKETING

EXPENDITURE

BUDGET

It is essential that you prepare and maintain a strict budget for marketing. Your budget allocation must reflect the objectives set out in Section 4. 5.1

MARKETING EXPENDITURE

Below is an example table that, when complete, should highlight the expected sales and income and subsequent advertising

Income (Not inc. vendor paid)

Applications Listings Sold Average Commission Total Vendor Paid Expenses Brand Advertising Promotional Average Vendor Paid Advertising

December

November

October

September

August

July

June

May

April

March

February

January

for a 12 month period.

15 5.MARKETING

5.2

EXPENDITURE

BUDGET

MARKETING BUDGET

The following table should be used to highlight the proposed marketing spend for the plan period. This table can be tailored easily to suit your business - simply add or delete headings as they apply to your advertising plans and strategies.

Marketing Budget for First National Richmond (Insert Year) Account Description Proposed Budget Advertising Brand Advertising Radio Local Newspaper Television Signage Online Other

$6,500.00 $6,200.00 $7,200.00 $9,400.00 $4,000.00 $1,800.00

SUBTOTAL Properties National eMag Local Newspaper Signage Magazines Website realestate.com.au domain.com.au Photography

$35,100.00

SUBTOTAL Promotional Material

$53,000.00

Promotional Products (SHOPfirst) Posters Lead Generation guides Database Mailout Product Underwriting Other

$6,750.00 $200.00 $850.00 $2,000.00 $1,700.00 $2,500.00

SUBTOTAL Other

$14,000.00

Christmas Party Sponsorship - Local football team Commercial Property Management The First National Foundation / Australian Red Cross Auction Fundraiser Event x 2 Show Day Marquee/Giveaways Distress Funds

$800.00 $5,00.00 $6,000.00 $4,080.00 $1,000.00 $3,000.00 $800.00 $14,000.00

SUBTOTAL

$30,180.00

TOTAL

$132,500.00

$2,000.00 $19,300.00 $14,800.00 $3,900.00 $5,100.00 $3,200.00 $3,000.00 $1,700.00

16 6 . A C T I O N

P L A N

The below table of promotional activities is designed to help achieve the marketing and business objectives as specified in Section 4. You should complete the table in as much detail as possible, listing all promotional activity to be carried out over the plan period.

Activity l

Insert activity

Timing l Insert

Focus/Aim

Australian Red Cross and First National Foundation

Ongoing

Objective

Insert the focus/aim of the proposed marketing activity

Insert how the business will implement the proposed activity

Refer to your office-specific objectives in Section 4

Increase enthusiasm for fundraising in office

Expand advocacy relationship to include Red Cross fundrasing events (First National Foundation)

Utilise national advertising material in local papers and in office

Offer incentives to staff for involvement in fundraising.

To create good-will and enhance reputation as communityminded business.

Arrange fundraising activities such as an Auction night and sausage sizzle at local school fete

Structure a PR plan and contact local media

time period

Action

Gain greater media exposure

17 7 . M A R K E T I N G

C A L E N D A R

Use this table below to map out your 12-month marketing activity schedule. It is recommended that you co-ordinate your office activity with state, zone and national campaigns in order to leverage off existing brand exposure.

Insert promo item

December

November

October

September

August

July

June

May

April

March

February

Program

January

A marketing calendar is basically a visual representation of an action plan (as presented in Section 6).

MARKETING P

S A M P L E

SECTION 2

M A R K E T I N G

P L A N

Your Company

MARKETING PLAN

F irst National Real Estate Richmond

Please note: The information contained in this Marketing Plan is of a fictitious nature.

1 Sample Street, Richmond, Australia

MARKETING P

EXECUTIVE SUMMARY AND VISION 24

SITUATION ANALYSIS

2.1

Internal Analysis 25

2.1.1

Market share and size

2.1.2

Office Staff

2.1.3 Demographics

2.1.4 Commissions

2.1.5 Advertising

2.1.6

Database Marketing

2.1.7

Market Research

2.1.8 Training

2.1.9

2.1.10 Corporate Identity

2.2

Competitor Analysis

2.3

E nvironmental Analysis 33

STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT) ANALYSIS

Public Relations

CRITICAL SUCCESS FACTORS AND MARKETING OBJECTIVES

35 39

MARKETING EXPENDITURE / BUDGET

5.1

Marketing Expenditure 40

5.2

Marketing Budget 41

ACTION PLAN 42

MARKETING CALENDAR

24 1 . E X E C U T I V E

S U M M A R Y

A N D

V I S I O N

The following Marketing Plan outlines the marketing objectives, strategies and actions to address the issues raised within First National Real Estate Richmond. First National Real Estate Richmond aims to have increased market share by 25% and be the market leader in real estate in Your Suburb and the surrounding suburbs. This will come about with a concerted development of the commercial side of the business. The â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite will also play a significant role in where the business will be in three years time. Presenting high-end properties using this logo will seek to provide the business an advantage over rivals. The mission statement for the business is: First National Real Estate Richmond exists solely for the purpose of providing a quality sales, property management and commercial service for its clients and general public to enable the business - through a common and easily recognisable brand - to supply the best possible real estate and property related services to their customers. To this end, First National Real Estate Richmond is committed to its continued growth and ongoing development of all staff in both performance and ability, through the establishment and maintenance of strategies outlined in Quality Assurance, designed to achieve optimum market share. First National Real Estate Richmondâ&#x20AC;&#x2122;s business values are to provide the best customer service, and extend above and beyond the call of duty to assist buyers and sellers. In addition, the business policies are the introduction of Quality Assurance has provided First National Real Estate Richmond with the policies and practices to run the business day-to-day. The key issues the business will face over the next 12 months are fluctuations in market conditions. Therefore, the Property Management department and expanding Commercial facet of the business will become important throughout the year. Also the increasing presence of competitors in the local area will become a major issue to resolve in the next 12 months.

25 2 . S I T U A T I O N

2.1

INTERNAL ANALYSIS

2.1.1

Market share and size

First National Real Estate Richmond has a strong market share and will be carrying out a brand awareness survey to further determine this. It must be noted that it is anticipated that the share of the market will increase with a greater focus on prestige and commercial listings. There are 5 other agents competing for business in the local area including 3 independent agents and 2 franchises. These are: l

Steven Cail Estate Agents (Richmond)

Abbotsford Real Estate (Abbotsford)

Buchanan & Stanton Real Estate (Richmond)

Burkley Real Estate (Burkley)

Jone Smith (Richmond)

First National Real Estate Richmond has a rent roll of 600. First National Real Estate Richmond trades in the following suburbs: l Richmond

l Stamford

l Yale

l Abbotsford

l Harvard

l Burkley

l Oxford

l Cambridge

The business aspires to increase current market share by 10% in the next 12 months. This will be fuelled by an increasing rent roll, expanding the commercial side of the business and use of the â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite to promote prestige listing. With 5 other agents competing for business in the local area, this anticipated increase is a realistic and achievable goal.

A N A L Y S I S

26 2 . S I T U A T I O N

2.1.2

A N A L Y S I S

Office Staff

First National Real Estate Richmond currently has a total staff of 19. It is anticipated that this will need to increase by 5 to cater for increased commercial and property management activity for the business. Spanning from this are 4 property management staff, 6 residential sales staff, 4 commercial sales staff, 3 administration staff, 1 receptionist and the principal of the business. 2.1.3 Demographics The business has a strong sales presence in Richmond, Yale and Burkley and is expanding with the commercial side of the business to Harvard and Stamford. Regarding rental property, the business has an even spread of the roll across all suburbs currently trading in. With Richmond and surrounding suburbs predominantly comprised of young couples, the business will continue to target this area. Areas such as Ford are dominated by professionals and young families, and are generally settled and are not looking for rental property. This has been reflected on the lack of rental property in the Ford area. It must also be noted that residential property in Richmond and surrounds is generally occupied by people with a high disposable income. This has been one of the major determinants in introducing use of the â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite to the business. Finally, some property in Richmond is dominated by people and families of various ethnic backgrounds. This must be a consideration when the business segments the market into regions to target for providing service and there are opportunities within First Nationalâ&#x20AC;&#x2122;s multi-lingual marketing collateral to exploit. 2.1.4 Commissions The commission rate is set at 2.75%. For properties that are valued under $200,000, the commission rate is increased to 3.5%. At this stage, the business does not seek to increase the average commission to sales staff. However, with the anticipated increase in team members in residential sales and commercial sales, future sales meetings will determine if an increase in average commission is passed. Fluctuating market conditions will also play a role in determining the level of commission to be paid.

27 2 . S I T U A T I O N

A N A L Y S I S

2.1.5 Advertising With vendor paid advertising becoming a stronger feature within the business, commissions should remain steady through 2007. The business advertises on fnrichmond.com.au and uploads property to firstnational.com.au. Further to this, the business has accounts with realestate.com.au, domain.com.au and homehound.com.au, which are regularly used to advertise residential property. The business also owns the following domain names: firstnationalrichmond.com.au realestaterichmond.com.au fnrichmond.com.au fnr.com.au Leader newspaper and The Chronicle are regularly used to advertise property for our customers. Also, the Preview magazine frequently used for property. The business also benefits from run-off brochures that provide a great advertising medium for customers. Regarding brand advertising, the business advertises point of sale material in-house, deploys dropcard campaigns frequently as well as local radio advertising with scripts provided by National Office. This has been a successful means of communicating to the public and we will continue this avenue of advertising. First National Real Estate Richmond, as previously mentioned, will have a greater focus on commercial properties, and seek to penetrate the market in the Richmond area. Furthermore, the business will leverage off the â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite to promote and advertise high-end property for its clients. The business has researched supporting the local community to expose the brand in the Richmond area. Sponsorship for the local football team will commence to enhance brand awareness. This is an ideal fit with our target market, and will assist with positioning the business in the local community.

y n a p m o C r u 2 . S I T U A T I O N

A N A L Y S I S

Another option the business will look at is increasing the size of signboards in the local and surrounding area. An increase in size can provide the perception that First National Real Estate Richmond is ‘everywhere’. This may sound too simple, but it has proven to work in the past. A large signboard offers strength and power, and can

alter perceptions of the general public. The extra cost in producing larger boards may be offset by the benefit received in increasing brand awareness in the Richmond area. From this, the business will also focus on installing community boards throughout the year, and will form part of the action plan towards the back of this document. With council approval, the business seeks to utilise its sponsorship of the local football team and initiatives with local primary schools to have designed and installed community boards. First National Real Estate Richmond will also promote such facets of the business including the ‘Fine Home’ suite and a strong focus on the expanding commercial side

E L A OR S

of the business. Lead Generation guides will also be further promoted to clients and the general public to entice them to maintain or embark on business with First National Real Estate Richmond.

7 0 3 7 5 8 1 4 0 e w o R Joe

Furthermore, the business will promote Quality Assurance ISO 9001 as a tool to gain an advantage over rivals. This will be promoted through all collateral and with the

3 6 6 2 2 u a . m 5y7ou7 o c . y n a p m o c r

Quality Assurance logo used where appropriate. In addition, the business will be looking at increasing the size of signboards and introducing community boards to further advertise the brand in the local area. For the upcoming year, the business will introduce a tiered structure of vendor paid

n w o T , s s e r Your add

advertising. Although the configuration and launch is uncertain, there will be set options for vendors to take up in relation to advertising their property.

29 2 . S I T U A T I O N

A N A L Y S I S

Refer to Figure 1.1 for an example of how the structure will come into fruition: Figure 1.1

Vendor Paid Advertising

VENDOR PAID ADVERTISING Option available

Benefits of option

Cost Richmond FN

Vendor

STANDARD

Standard signboard richmondfc.com.au advertising firstnational.com.au advertising 1/8 page advertisement in Preview magazine 500 run off brochures for open for inspections and presented at the office

$300

$350

SILVER

Standard photoboard richmondfc.com.au advertising firstnational.com.au advertising 1/2 page advertisement in Preview magazine 500 run off brochures for open for inspections and presented at the office

$450

$500

GOLD

Photoboard with downlighting richmondfc.com.au advertising firstnational.com.au advertising realestate.com.au advertising Full page advertisement in Preview magazine 1/8 page advertisement in Leader Property Guide (weekly) Classified advertisement in The Chronicle Property Guide (every Sunday) 1000 run off brochures for open for inspections and presented at the office

$580

$630

PLATINUM

Photoboard (large) with downlighting richmondfc.com.au advertising firstnational.com.au advertising realestate.com.au advertising justlisted.com.au advertising homehound.com.au advertising Full page advertisement in Preview magazine 1/4 page advertisement in Leader Property Guide (weekly) Classified advertisement in The Chronicle Property Guide (every Sunday) 1000 run off brochures for open for inspections and presented at the office

$800

$850

30 2 . S I T U A T I O N

A N A L Y S I S

2.1.6

Database Marketing

A database of 400 allows the business to promote various aspects to the local community. The business has found that dropcards are a cost-effective means of hitting the local community. However, these cards are often disregarded or thrown directly in the bin by the recipient. A succinct message and a clear â&#x20AC;&#x2DC;call to actionâ&#x20AC;&#x2122; has helped the business ensure the recipient retains the information and will be maintained. The business has found that a catchy, quirky card that has emotional appeal has a much longer shelf life and may potentially prompt the recipient to consider First National Real Estate Richmond for its property needs. A campaign calendar will be prepared to ensure consistent, retainable messages are delivered to the community at regular intervals. 2.1.7

Market Research

To find out more about the market the business is situated in, a survey regarding awareness of agents in the local area is to be carried out. This will provide a good source of measuring levels of brand awareness and uncover the thoughts of the community which the business can act upon. The survey will be set up independently of any association with the business to eliminate any variables associated with the survey. Previous surveys have concluded that the business is in a solid position in the marketplace.

31 2 . S I T U A T I O N

A N A L Y S I S

2.1.8 Training All current and new staff - if not already - will be Quality Assurance ISO 9001 trained and accredited to understand and implement the benefits of Quality Assurance. It is also imperative that all sales and property management staff attend training quarterly. The training offered through National Office will be placed in the diaries of all staff at the beginning of the year. Some training run by the REI is also attended by the businessâ&#x20AC;&#x2122; staff. This is in addition to the training offered by First National Academy. It is at the discretion of the principal what REI training is required. 2.1.9

Public Relations

The business has worked with National Office and Marketing Logic to increase exposure in the local area. The business will continue integrating network programs with current advertising. Proformas updated to Gateway are personalised and will be forwarded onto local newspapers. It is the task of the receptionist to continue to forward these releases to local editors. From this, the business seeks to leverage off the awareness of the First National brand and the range of services and expertise offered by the business through exposure in local and national media. Twice monthly, administration staff send current releases to the local press. It will be a goal to meet with local journalists and build goodwill. This may involve regular meetings or lunch. 2.1.10 Corporate Identity With the assistance of the businessâ&#x20AC;&#x2122; Member Services Manager, all shopfront signage will be made compliant as well as all external signboards and promotional material. All staff have access to Logos on Disk, which can be burnt and forwarded to local suppliers. In addition, the business has and will continue to work with Dulux (the networksâ&#x20AC;&#x2122; alliance partner) in attaining the correct colours for signage. Administration staff also are to report to during team meetings on any corporate identity issues and liaise with the National Marketing department to solve. The business also updates generic signboards on a regular basis as per the agreements with the alliance partner. Furthermore, newspaper layouts are an issue with consistency but will be monitored to ensure compliance across the board with all advertising.

32 2 . S I T U A T I O N

2.2

A N A L Y S I S

COMPETITOR ANALYSIS

Company

Points of difference

Competitor 1 l Est. 1928

l Qantas Frequent Flyer program

l 700 offices worldwide

l Large Marketing Budget

l Branches in Australia, New Zealand, Fiji, Indonesia, China

l Consistent advertising

Buchanan & Stanton Real Estate l Independent agency

l High concentration on Property Management facet of their business

l Long standing family business since 1916

l Strong community involvement

How they advertise l National TV l Radio l Newspaper l Internet

l Newspaper l Local radio l Billboards (locally) l Community boards

l Covering Residential and Property Management

l Sponsor of Richmond Football Club

l Great ABC Road location

l B & S Real Estate Mag has a strong presence in the local area with distribution in cafes and restaurants

l REI Journal

l Competitor 3 services for building new homes and commercial constructions

l Radio

l 2 separate branch offices in the CBD Competitor 3 l Franchise operation l Established in 1902 l 567 offices across Australia l Has a total of 700 franchise offices across New Zealand, Indonesia and South East Asia l Annual sales turnover of $15 billion l Manage 180,000 rental properties across the group. l Cover Residential, Commercial, Rural, Property Management and Prestige Properties

l Their Magazine provides strong presence l 100 Years of Service l Consistent advertising l Strong advertising brand name

l Marquees

l Internet - large independent internet site in Australasia l Their Magazine l Television l Newspaper

33 2 . S I T U A T I O N

2.3

A N A L Y S I S

ENVIRONMENTAL ANALYSIS

The following section looks at the internal and external issues that concern the general real estate market and First National Real Estate Richmond directly. It looks at State, Federal and local council conditions and laws that have a bearing on the way the real estate industry conducts itself. On July 1 2005, a system of compulsory Continuing Professional Development (CPD) training by the REI came into effect for all Licensed and Agents’ Representative Members. CPD is designed to significantly elevate members’ professional standards and reputation in business and the broader community (REI, 2004). It will enhance members skills and knowledge on an ongoing basis. Members must be certified by the REI as having completed the required annual CPD points to retain membership of the REI. Failure to complete CPD, as required, will result in non-renewal of membership of the REI. The REI will carry out annual audits of members, to confirm CPD has been completed. The CPD will have a bearing the general Real Estate market in that the REI will have a degree of control of the way its members execute their business. In turn, this will affect all First National Real Estate members who are aligned with the REI. Training courses offered by First National Training may be overlooked due to the CPD laws imposed by the REI. The outlawing of Dummy Bidding intends to increase the confidence of vendors and purchasers at an auction. Dummy bidding involves an agent or person acting on the agent’s behalf, making bids on a property as if they are genuinely interested. To deter this practice, all potential bidders at auctions have to give the agent their personal details, which are recorded. Bidders are then given a number that they must display when a bid is made. This reform will have a vast impact on the reliance consumers have of the auctioning system. Furthermore, this will not affect Vendor Bidding, which is still recognised as an ethical and legal process. However, under the new reforms to auction laws, the vendor will be restricted to making one bid only which has to be made by the auctioneer who announces that it is a ‘vendor bid’.

34 2 . S I T U A T I O N

A N A L Y S I S

Two-tier marketing has been a concern in real estate across the country for sometime. Two-tier marketing or pricing refers to having two prices (tiers) in one market. One tier for the local public who understands the value of that market, and another tier for the public and potential buyers, who are not aware of the local market. These people are usually from interstate looking to penetrate a new property market. The REI has addressed this issue and outlawed any form of two-tier marketing. According to REIA, “Real estate agents must not engage in setting different tiers of pricing, with higher prices being charged of consumers who are… unaware of material facts such that they are prepared to pay prices for the property that are higher than the prices that those who are aware of those facts would be prepared to pay” (Ballard, 2004). This will create a uniform system across all real estate in Australia and increase the confidence in consumers that they are acquiring accurate representations of the value of property in areas that are not of their local market. Throughout the year, interest rates have increased twice. Increasing interest rates confirms that it costs more to borrow money, so people buying houses will have increased rates and repayments which slows down the economy. With higher interest rates people tend to steer clear from borrowing money. This will affect the general real estate market with consumers steering clear of purchasing property. In addition, people struggling to meet monthly repayments will have to investigate selling their property if rates increase as they have. In turn the real estate market will slow down, impacting upon all estate agents. The Estate Agents Act 1980 regulates who can work in real estate in Australia. If you buy, sell, lease or manage real estate or a business on behalf of the vendor, landlord, purchaser or tenant you must hold an estate agent’s license. A license authorises an estate agent to operate anywhere in Australia and may be issued to an individual or to a corporation. First National Real Estate members can anticipate a consistent service level as a network with the licensing scheme. This will also help ascertain all agents have an appreciation of the code of conduct within the industry, and help promote nationwide consistency of real estate practice.

35 3 . STRENGTHS, WEAKNESSES,OPPORTUNITIES & THREATS (SWOT) ANALYSIS STRENGTHS Professional Indemnity Insurance

What it means

Action

l Provides greater value for money for the business based on a deal that has economies of scale

l Continue to support Honan Insurance and review contract for renewal

l First National Real Estate is the only large real estate group within Australia with their own professional indemnity scheme Quality Assurance Accredited

l First National Real Estate has a Quality Assurance policy in place, which is in line with industry standards l First National Real Estate Richmond able to leverage off this l Provides a unique point of difference to other agencies and networks

Recognisable real estate symbol (Being part of First National Real Estate)

l Assists in creating greater brand awareness l Provides a unique point of difference with competitors

l Maintain accreditation l Leverage off the accreditation in marketing and advertising material l Train new staff in Quality Assurance and offer current staff a refresher course

l Continue to use and leverage off National Marketing strategies to ensure the success of the First National Real Estate brand l Maintain Corporate ID compliance with assistance from National Marketing and Member Services Manager足

36 3 . STRENGTHS, WEAKNESSES,OPPORTUNITIES & THREATS (SWOT) ANALYSIS WEAKNESSES Commercial facet of the business

What it means

Action

l Offering a commercial sales option on top of residential

l Expand the current commercial facet of the business

l Expanding sales office to cater for commercial team members

l Richmond promising area for commercial real estate

l Greater presence in local community with expanding commercial business

l Opportunities for commercial sales people to become part of the business l Liaise with National Office to setup collateral for commercial facet of business

Building greater brand awareness

l Opportunity to generate greater brand awareness via stronger more targeted marketing strategies from National Office l Therefore building greater brand recall and assist with gaining market share in the local area

Greater Community Involvement

l Involving the business in initiatives such as sponsorship and supporting local schools l Resulting in increased awareness of the brand through this advocacy marketing

l Develop and continue marketing strategies out of National Office with focus on consistent brand advertising l Greater, more targeted exposure, which will lead to greater unaided awareness.

l Maintain sponsorship with local netball club and leverage off this with community boards and sponsor days l Provide BBQâ&#x20AC;&#x2122;s using a marquee - review calendar in plan l Work with local primary school - provide colouring competitions (to be outlined in Action Plan)

37 3 . STRENGTHS, WEAKNESSES,OPPORTUNITIES & THREATS (SWOT) ANALYSIS THREATS Downturn in the real estate market

What it means l A decrease in property sales is predicted to continue over the coming years, which will have a great impact on the industry l Greater focus put onto property management

Action l Develop marketing strategies that focus on building brand awareness to ensure First National Real Estate Richmond is top of mind for buyers and sellers l Diversify marketing focus to include property management

Increasing strength of competitors

l The growth in brand presence and size of some major competitors could have an effect on First National Real Estate Richmond’s growth for new listings l Also the potential threat of Competitor 4 who are expanding their network

l Utilise strategies from National Marketing such as ‘We put you first’ that focus on building brand awareness to ensure the business is top of mind amongst clients and potential clients l Focus on unique points of difference between First National Real Estate and competitors

38 4 . C R I T I C A L

S U C C E S S

F A C T O R S

M A R K E T I N G

O B J E C T I V E S

A N D

What are the critical success factors needed to maintain a strong presence in the current year? 1.

Increase current market share by 10% in the coming year.

Due to an expected downturn in the real estate market, increase rent roll by 20% through penetrated promotion of the property management facet of the business.

Develop greater online presence via social mediums.

Introduce First National Commercial to the business to gain greater market share and presence in the Richmond and surrounding area.

Increase staff numbers to 23 to accommodate the expanding commercial facet of the business and the increasing property management program.

Sponsor First National Foundation and co-brand with Red Cross logo to improve goodwill.

Evolve the support of the local community such as local primary school to leverage off the benefits of advocacy marketing.

Implement a tiered structure to vendor-paid advertising, and ensure this reflects the funds allocated to advertising paid for by the business.

Maintain Quality Assurance accreditation and ensure all staff understand the standard requirements.

10.

Continue to develop a stronger brand presence in the local marketplace.

$250

$1,000

$500

$250

$630

Average Vendor Paid Advertising

$630

Promotional

$500

Brand Advertising

$630

$1,500

$2,100

$1,500

$2,000

$2,500

$1,500

Total Vendor Paid Expenses $15,750

$17,010

$11,340

$23,940

$18,900

$17,640

$11,970

$11,340

$17,010

$23,310

$15,750

2.75%

Average Commission

$9,450

$1,000

Applications

$1,500

$236,250

$218,750

$166,250

$358,750

$227,500

$262,500

$148,750

$131,250

$218,750

$306,250

$236,250

$113,750

Income (Not inc. vendor paid)

$250

December

November

October

September

August

July

June

May

April

March

February

January

5.1

$630

5.MARKETING EXPENDITURE / BUDGET

Below is a table outlining the expected sales and income and subsequent advertising for the current year. These figures are

based on results in the previous year. MARKETING EXPENDITURE

Listings

Sold

40 5.MARKETING EXPENDITURE / BUDGET

5.2

MARKETING BUDGET

Marketing Budget for First National Richmond (Insert Year) Account Description Proposed Budget Advertising Brand Advertising Radio Local Newspaper Television Signage Online Other

$6,500.00 $6,200.00 $7,200.00 $9,400.00 $4,000.00 $1,800.00

SUBTOTAL Properties National eMag Local Newspaper Signage Magazines Website realestate.com.au domain.com.au Photography

$35,100.00

SUBTOTAL Promotional Material

$53,000.00

Promotional Products (SHOPfirst) Posters Lead Generation guides Database Mailout Product Underwriting Other

$6,750.00 $200.00 $850.00 $2,000.00 $1,700.00 $2,500.00

SUBTOTAL Other

$14,000.00

$800.00 $5,00.00 $6,000.00 $4,080.00 $1,000.00 $3,000.00 $800.00 $14,000.00

SUBTOTAL

$30,180.00

TOTAL

$132,500.00

$2,000.00 $19,300.00 $14,800.00 $3,900.00 $5,100.00 $3,200.00 $3,000.00 $1,700.00

41 6 . A C T I O N

P L A N

Together with National and State based campaigns, the office action plan is as follows:

Activity The First National Foundation (FNF)

Timing Ongoing

Focus/Aim l

Community Boards

April - May September October

l l

Action

Increase enthusiasm for fundraising in office Expand advocacy relationship to include other FNF fundraising events Educate local community on cancer prevention, early detection and research Gain greater media exposure

Increase brand awareness Promote advocacy and sponsorship initiatives to gain an advantage over rivals Use as an add-on to support the local netball and primary schools

Objective

Utilise national advertising material in local papers and in office Offer incentives to staff for involvement in fundraising Arrange fundraising activities such as an Auction night and ausage sizzle at local school fete Structure a PR plan and contact local media

To create goodwill and enhance reputation as communityminded business

Liaise with local council to ensure permits are granted and sites available Work with supplier to produce boards in line with current promotional activity such as the netball sponsorship Select relevant sites and lock away

To increase exposure of the brand and create goodwill

42 6 . A C T I O N

Activity Property Preview Magazine

P L A N

Timing All year

Focus/Aim l

Sponsorship Netball

April September

Action

To provide a further option to advertise property Leverage off the bulk buying discount available through Property Preview To utilise the run-offs provided as part of the contract with the magazine to better advertise a property

To support a community initiative that is similar to the primary target market of the businessâ&#x20AC;&#x2122;s clients To create word of mouth in the local area of goodwill that the business is providing Increase brand awareness in local area

Objective

Liaise with supplier to negotiate a suitable contract for the year Promote this option to clients as an option when selling their property Ensure the business has at least one page in every issue to uphold coverage in the local area

To gain a new avenue for advertising of property and gain state-wide exposure

Liaise with netball club to negotiate contract for the promotional period Confirm signage options and opportunities for the team to attend BBQ events and auction nights Work with external suppliers to provide and install signage at netball facility Promote the initiative in local paper and community boards

To maintain brand image in the local community

43 6 . A C T I O N

Activity

Timing

Enviro Bags

January February August October

Focus/Aim l

Charity Auctions

May and September

Signboard size increase

March December

Action

To offer enviro bags to local public to increase brand awareness at shopping precincts and busy areas of the community Offer the enviro bags as an advocacy initiative to create goodwill amongst the community Generate ‘word of mouth’ through the release of the bags

To provide an enjoyable evening for the general public to attend Create interest from local press and gain PR opportunities Gain local media coverage post-event on monies raised

Combat perception of poor brand presence An increase in size can give the perception that the business is ‘everywhere’ as a larger board is more successfully recognised A large signboard offers strength and power, and can alter perceptions of the general public

P L A N

Objective

Order enviro bags through National Office based off the bulk buying option Promote to public in the lead up to delivery Offer at BBQ days and at reception of office Promote through community board

To support this national initiative and to offer the enviro bags to the local public

Organise and book function room and catering Liaise with PR agency to assist with coverage of event, both pre and post Coordinate invitations and promote through local paper

Bring together the local community and promote the business

Organise and book function room and catering Liaise with PR agency to assist with coverage of event, both pre and post Coordinate invitations and promote through local paper

Bring together the local community and promote the business

44 6 . A C T I O N

Activity Shopfront revamp / repaint

P L A N

Timing May

Focus/Aim l

Brand awareness survey

August September

Quality Assurance

All year

To create a clean, fresh and inviting office environment Align the business with corporate ID guidelines Align signage with network standards and benefit from consistent look of logo

To provide information on measuring levels of brand awareness l Use results and conclusions to compare with statistics from competitors and the whole industry l Measure the level of unaided and aided awareness of the business in the local community l To provide survey annually in order to compare results and reflect on improvements or areas that the business needs to work on

Maintain accreditation and ensure all new and current staff understand Quality Assurance To promote as a point of difference amongst competitors

Action l

Liaise with supplier and National Office to provide final approved artwork Work with alliance partner, Dulux, to purchase blue and red paint at a corporate discount

Seek advice from National Office on conducting, implementing and reporting on a brand awareness survey l Ensure sample size is approx 150 people l Conduct independently l Offer prize or incentive to lure respondents l Report on results and seek to carry out annually to draw conclusions and reflect on improvements l

Implement training from National Office in order to maintain accreditation Promote in press advertising

Objective l

Realign the shopfront with Corporate ID specifications and ensure layout is compliant

To gain a sound understanding of what the local public thinks of the business and local market

To align the business with industry standards

45 6 . A C T I O N

Activity Commercial

Timing January April July - August

Focus/Aim l

Tier structure of vendor paid advertising

December

Action

To promote Commercial facet of business in a push to run all year To maintain a team of 4 staff to provide Commercial operations of real estate in the local area Promote as a point of difference as no local rivals are currently providing this service

To provide vendors with a wide variety of options for promoting their property Make a simple process for implementation To provide a cost saving to the business

l l

P L A N

Objective

Employ further Commercial staff to run department Promote this facet through local press Liaise with National Office to offer Commercial specific business cards, stationery and signboards

To offer another aspect to the business and seek to take a major share of the local market

Implement Standard, Silver, Gold and Platinum tiers for levels of advertising Promote platinum option as most worthwhile Incorporate the â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite option

Make it easier for clients to make a decision on how they wish to advertise their property

46 7 . M A R K E T I N G

C A L E N D A R

â&#x20AC;&#x2DC;Fine Homeâ&#x20AC;&#x2122; suite Radio Community boards Property Preview Sponsorship - Netball Enviro bags Charity Auction Brand newspaper ads Dropcard Campaign Signboard size increase Public Relations Shopfront revamp/ paint Point of sale posters Brand Awareness survey Commercial School Colouring Comp BBQ Days Market research Quality Assurance We put you first. Tier structure of vendor-paid advertising

December

November

October

September

August

July

June

May

April

March

February

Program

January

These are the proposed marketing programs for the next 12 months.

47 N O T E S

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

48 N O T E S

49 N O T E S

50 N O T E S

F I R S T

N A T I O N A L

MARKETING D I S T R I B U T I O N P R I N C I P A L ( S )

L I S T

89 Hoddle Street Richmond VIC 3121 Phone : 1800 032 332 Fax : 1800 832 332 marketing@firstnational.com.au

S A L E S

P R O P E R T Y M A N A G E M E N T

O T H E R

www.fngateway.com.au

LOCAL AGENCY M

B o o k l e t

MARKETING P

06 LONG 97 L

E IF

TAL CHLORINE EN F M

E RE

ELE

ISO I400I

IS O

Creating a comprehensive marketing plan for your office.

ECF

This product is printed with the environment in mind. Please visit www.kwdoggett.com.au and look for these logos to find out more.