RMIT Buyer Behaviour LP04 Group 63 PDF

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Buyer Behavior Assignment 1...

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Cover sheet for submission of work for assessment DEPARTMENT/SCHOOL:

SIM GLOBAL (RMIT) MARKETING Office use only

Course/unit code

Assignment/

Due Dat Date/ e/ Time

MKTG1052 Buyer Behaviour

Assessment no no.. Assessment 1: Product Review

1st October 2020, 23:59

Campus Class day SIM – RMIT Monday Name of lectur lecturer/teac er/teac er/teacher her MS. PERLYN SIM

Class time 19:00 -22:00 Dept/school date stamp

STUDENT/S Full Name

(1) (2) (3) (4) (5)

Student number

NUR AZIEMAH BINTI JOHARI SING NAH TAY WANG SHUAN RONG @ CRISTALLE WEI QI VICKI HO YEO QIN NING YSEULT

S3772105 S3809629 S3809707 S3833981 S3809760

DECLARATION AND STATEMENT OF AUTHORSHIP 1. We hold a copy of this work which can be produced if the original is lost/damaged. 2. This work is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due ac- knowledgement is made. 3. No part of this work has been written for me/us by any other person except where such collaboration has been authorised by the lecturer/teacher concerned. 4. We have not previously submitted this work for this or any other course/unit. 5. We give permission for this work to be reproduced, communicated, compared and archived for the purpose of detecting plagiarism. 6. We give permission for a copy of my/our marked work to be retained by the school for review and comparison, including review by external examiners. We understand that: 7. Plagiarism is the presentation of the work, idea or creation of another person as though it is my/our own. It is a form of cheating and is a very serious academic offence that may lead to exclusion from the University. Plagiarised material can be drawn from, and presented in, written, graphic and visual form, including electronic data and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited. 8. Plagiarism includes the act of assisting or allowing another person to plagiarise or to copy my/our work. Student signature/s We declare that I/we have read and understood the declaration and statement of authorship.

Nur Aziemah Binti Johari Wang Shuan Rong @ Cristalle 5. Yeo Qin Ning Yseult

1. 3.

2. 4.

Sing Nah Tay Wei Qi Vicki Ho

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Cover sheet for submission of work for assessment

POL/2009/00134 0211 page 1 of 1

MKTG 1052: Buyer Behaviour

Product Review Report Kallang Word Count:Riverside 5,984 words Submission Due Date: 01 October 2020 Class/ Group: LP04/ Group 63 Lecturer: Perlyn Sim

Students Name/ ID (1) Nur Aziemah Binti Johari / (2) Sing Nah Tay / (3) Wang Shuan Rong Cristalle/ (4) Wei Qi Vicki Ho / (5) Qin Ning Yseult Yeo /

S3772105 S3809629 S3809707 S3833981 S3809760

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Table of Contents Executive Summary...........................................................................................................6 1. Market............................................................................................................................8 1.1 Background..............................................................................................................8 1.2 Market Size & Share................................................................................................8 1.3 Market position.........................................................................................................8 1.4 Product Positioning..................................................................................................9 1.5 Depth & Breadth of Product Range........................................................................10 1.6 Company’s Principal Product.................................................................................10 1.7 Product Life Cycle..................................................................................................11 2. Competitors.................................................................................................................12 2.1 Direct Competitor...................................................................................................12 2.2 Indirect Competitors...............................................................................................12 3. Identification of Target Market(s):................................................................................13 3.1 Identification of Target Market for Kallang Riverside..............................................13 3.2 Identification of Target Market for Royce Residences............................................16 3.3 Potential Market Segment......................................................................................19 4. External Influences......................................................................................................21 4.1. Culture and Subculture..........................................................................................21 4.1.1. Type of Culture in Singapore..........................................................................21 4.1.2. Home Characteristics Desired by Consumers................................................22 4.1.3. Influences by the COVID-19 pandemic..........................................................22 b. Leisure Habits....................................................................................................24 c. Adopter Category...............................................................................................25 4.2. Demographics...........................................................................................................26 4.2.1 Income.............................................................................................................26 4.2.2 Gender.............................................................................................................26 4.2.3 Type of Housing...............................................................................................26 4.2.4 Socioeconomic influences...............................................................................27 3

4.3 Group Influence......................................................................................................27 4.3.1 Informational influence.....................................................................................27 5. Internal Influences.......................................................................................................28 5.1 Needs and Motives.................................................................................................29 5.1.1 Physiological Needs.........................................................................................29 5.1.2 Safety and Security Needs..............................................................................30 5.1.3 Love and Belonging Needs..............................................................................30 5.1.4 Self-Esteem Needs..........................................................................................30 5.1.5 Self-Actualization Needs..................................................................................30 5.2 Perception..............................................................................................................31 5.2.1 Exposure..........................................................................................................31 5.2.2 Attention...........................................................................................................32 c.

Interpretation...................................................................................................35

5.3 Learning..................................................................................................................35 5.3.1 Conditioning.....................................................................................................35 5.3.2 Cognitive Learning...........................................................................................36 5.4 Lifestyle..................................................................................................................36 6. Consumer Decision Making Processes......................................................................38 6.1 Problem Recognition and Purchase Involvement..................................................38 6.1.1 Problem Recognition........................................................................................38 6.1.2 Information Search...........................................................................................39 6.2 Purchase Involvement............................................................................................40 6.3 Evaluative Criteria and Purchase Decision............................................................40 6.3.1 Shopping Behaviour.........................................................................................41 6.4 Post-Purchase Behaviour......................................................................................41 6.5 Product Disposal....................................................................................................41 6.6 Loyalty....................................................................................................................42 7. Marketing Strategy.......................................................................................................42 7.1 Marketing Strategy of Kallang Riverside................................................................42 7.2 Competitors’ Marketing Strategy Analysis..............................................................43 7.3 Comparison of Marketing Strategies......................................................................45 4

7.4 Positioning of Kallang Riverside.............................................................................46 7.5 Marketing Mix.........................................................................................................46 7.5.1 Product.............................................................................................................47 7.5.2 Price.................................................................................................................48 7.5.3 Promotion.........................................................................................................49 7.5.4 Place................................................................................................................50 8. Evaluation and Recommendations..............................................................................50 8.1. Evaluation..............................................................................................................50 8.2.1 Improve Marketing Mix........................................................................................51 8.2.2 Improve Product Positioning............................................................................53 9. Conclusion...................................................................................................................54 10. References................................................................................................................55

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Executive Summary Kallang Riverside is a freehold property that is located within District 12, under the Rest of Central Region Market Segment of Singapore. It’s developer, Singapore-Johor Express Pte Ltd (SJE) boast its project with a total of 30-Storey Residential Flat with commercial on the 1st level, with a total of 212 residential units, 7 commercial units’ shops and carpark lots. It’s prime location in the vicinity has allowed the condominium to hold a competitive edge amongst its regional competitors. Within the region, there are several similar properties that post as a threat to Kallang Riverside this includes direct competitors such as Royce Residents and indirect competitors such as The Rivervine and TRE Residence. Furthermore, competition to fight for the consumers from the same pool which includes newlyweds and young families who are self-dependent and has allowed the team to further identify protentional market of married couples with child(ren) for Kallang Riverside. However, inevitably the product does face external and internal influences that affect the consumers decision making which includes culture of Singaporeans, Influences by COVID-19 and personal perceptions based on the Maslow’s Hierarchy of Needs, respectively. When intentional buyers of Kallang Riverside go through the consumer decision making processes, Firstly, the consumer goes through the problem recognition process where they form the need of a new property based on their current life situation, which includes a long-term accommodation for their family. Next, they move on to gather information through various external search sources including independent sources and marketing efforts done by condominium itself through show flats or the property agents such as PropNex and Huttons etc. Moving forward, the awareness set kicks in and consumers categorize their products based on the evoked, inert and inept set, where Kallang Riverside will most probably fall into the evoked set due to its features and property characteristic and marketing mix. Following, the customer moved into the evaluative criteria and finally make the purchase decision of the property depending on the match of criteria. This stage is prominent as buying products such as condominium for your family involves one of the highest levels of purchase involvement. Finally, the post6

purchase behaviour includes satisfied residents sharing their joy and recommendations with acquaintances, vice versa. The product disposal stage is relatively lower as most residents would have bought it with the intention of long-stay, however under the circumstances, buyers are able to sell their property as a second hand and pay a seller stamp duty should they decide to dispose of if before fulfilling a 3 year stay period. Kallang Riversides marketing efforts are strategically focused on its target audiences. It is based simply on condominium’s location, quality, accessibility and facilities. When compared to its competitors, most properties in Singapore are likely similar where they market through agents, and highly rely on their show flat as well as conceptual and attractive prints and images on their promotional flyers and websites. In terms of marketing mix, the main product of the property is the property itself. The 212 residential units, several commercial units, as well as its luxury of features and amenities of the condominium. In the aspect of price, when compared to its direct competitor – Royce Residents, it is relatively comparable. However, that being said Kallang Riverside is priced much higher overall due to its larger space, while the property also needs to take into consideration that in order to maintain market position it will therefore need to have a higher standard of services and facilities than its competitors. In terms of promotion, Kallang Riverside did not at any point have exclusive or early bird promotions for its consumers, but rather relied greatly with the use of their website, social media, agents and show flat which was stationed in the heart of the working premises which allowed part of their targeted audience to visit during lunch breaks. The prime location of the property has allowed it to fetch its high value and market share due to its convenience and prestige. The overall evaluation of the Kallang Riverside proves that its selling point is largely based on its location. It’s price is reasonable in the market and likely affordable for their stimulated target audience of newlyweds and young families who are looking to purchase a property within the district. However, the property can further improve its marketing mix by leveraging on their product to include events for their family driven residents and improve its product positioning by advertising attractive images within the Central Business District Areas of Singapore where their target audiences are also situated on most days. 7

1. Market 1.1 Background Kallang Riverside is a freehold condominium in Singapore, that was completed in Mid2018 by Singapore-Johore Express Pte Ltd, and is one of the latest Freehold condo developments in the market. The developer, Singapore-Johore Express Pte Ltd is a bus/train company based in Singapore that has begun diversifying into property. Kallang Riverside, being the first development built on the grounds of the Singapore Johore Factories building. Located right in the heart of Kallang Waterfront, surrounded by offices, hotels and residential units overlooking the view. The condominium boasts 212 units with 7 commercial shops for the convenience of its residents.

1.2 Market Size & Share Kallang Riverside is situated at 51 Kampong Bugis in District 12 under the Rest of Central Region market segment, known to house mid-tier value properties. The segment consists of high-quality condominiums, bungalows, and HDBs developments that hold a higher value in comparison to counterparts located in other regions. With reference to the Urban Redevelopment Authority (URA), there are over 4,000 units sold in the Rest of Central Region (RCR) in 2018 (48.5%) and 2019 (43%). Around a 5% decrease in the RCR area, while there is a boost in sales under the Core Central Region (CCR). The market share for the uncompleted properties for RCR comprises almost half of the total properties sold in the market. (URA, 2020)

1.3 Market position Kallang Riverside is a luxury freehold located at the Greater Marina Bay District with places such as the Sports Hub conveniently linked, and the area that consist of 64-ha 8

Waterfront Precinct of 4,000 residential homes, 3000 prime waterfront hotel rooms and about 400 thousand sqm space for offices, retails and entertainment. Kallang Riverside is situated around amenities and public transportation that is readily available to head into any parts of Singapore. Other major shopping districts and attractions are within minutes away. Kallang Riverside’s direct competitor, Royce Residence is situated further away from the MRT lines making it less convenient for residents and situated further away from popular amenities or attractions.

1.4 Product Positioning

Figure 1: Position Map of Condominiums within the Region of Kallang Riverside As per the diagram above, Kallang Riverside is categorized under the higher valued property in the RCR segment. However, due to the convenience for travelling to the residence, it is placed on the advantage spot, with different nearby MRT stations within walking distance. In addition, the location of the residence is located at the heart of CBD, meaning that leisure activities and shopping malls are at the convenience of potential buyers. While for the direct competitor, it is situated further away from the CBD

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and marketed below the price range of Kallang Riverside, hence, it will take a longer journey to get to the popular areas

1.5 Depth & Breadth of Product Range Singapore-Johore Express Pte Ltd (SJE), a newly developer having it first stint at residential with Kallang Riverside. The SJE was a factory located near Ban San Street in Bugis that used to provide the bus depot services, leased out for rent. Then in early 1990s, the area in Bugis was transformed into a residential land by the government and the initial development for idea were relooked. SJE’s residential project was approved by URA, sitting between Kallang Road and Crawford Street becoming the residential and lifestyle district.

1.6 Company’s Principal Product Kallang Riverside offers a total of 30-Storey Residential Flat with commercial on the 1 st level, with a total of 212 residential units, 7 commercial units’ shops and carpark lots. The design of the building includes elements o...