Marketing Strategy for DAMAC

Marketing Strategy for DAMAC Introduction DAMAC Properties is a Dubai based company established in 2002. It is a private, commercial and leisure developer with â€Å"iconic† improvements and developments in staggering areas in significant urban communities in the Middle East has helped DAMAC construct image and repute for making lavish and alluring properties. Previously DAMAC Properties has extended its network within a few years of success, in to regions of North Africa, Qatar, Jordan, Lebanon and Saudi Arabia. Since its establishment in 2002, DAMAC has conveyed 9,318 units to date and as of now has an advancement arrangement of in excess of 25,000 units at different phases of advancement and arranging conveying DAMACs vision of extravagance living with amazing private, accommodation, and relaxation and business improvements. At the heart of the Groups society lies the yearning to convey this vision for its clients, with the Companys c.1,400 workers dealing with the whole process – from the determination of improvement accomplices, for example, designers, planners and foremen, the distance to the handover of keys. To guarantee improvements are conveyed to the most elevated conceivable measures, DAMAC gives the privilege working environment to capable workers chooses just the privilege accomplices and creates ventures in prime areas. Continuously at the bleeding edge of visionary ideas, DAMAC has associations with â€Å"Paramount Hotels Resorts†, the official licensee of Paramount Pictures, Italian design houses Versace Home and FENDI Casa for marked private condo and manors and the Trump Organization for the advancement and operations of the Trump International Golf Course, Dubai and the Trump Estates inside the AKOYA by DAMAC improvement. As DAMAC keeps on innovating and bring new ideas to the business sector, the Company is resolved to expand on its compelling execution to date. With vision and energy, DAMAC is building the up and coming era of Middle East extravagance living. The Company issued Global Depositary Receipts (GDRs) which are recorded on the London Stock Exchange. Citibank N.A. goes about as the depositary for the GDR. The projects by DAMAC Properties include; Marina Terrance, Executive Heights, Lake View, Lake Terrance, The Waves, Smart Heights, Park Towers and DAMAC Maison, The Summit. These projects deliver a luxury and undergo desire for design and quality. Mission: DAMAC states its mission as â€Å"delivering value to its customer†. Basically it aims to deliver. DAMAC ensures that the developments and establishments of buildings are delivered with the highest possible standards from the creative employees, architecture and contractor and designers. Since its history starting from 2002, it has maintained a record of building delivery with its vision of luxury developments. Market Description: Market serves as a medium for interaction of buyer and seller. It can be highly unpredictable. Throughout the world market with the perspective of buyer differs from seller’s point of view. Market changes daily whereas from business perspective it creates a daily challenge. Throughout the world, organizations are confronting the challenge of global rivalry and with the effects of globalization on political, financial, economic and society; patterns of purchasing and offering are changed. The organizations in worldwide business sector are attempting to profit by the favorable circumstances that have been made because of globalization. In this present period of globalization the organizations are attempting to execute progressed innovation so as to expand their core competency and business yields. Because of immense rivalry in worldwide business associations are selecting competitive workers and executing a few extraordinary marketing techniques. The organizations ought to be learned enough about different components of promoting process to exhibit the understanding of overseeing marketing. There are diverse components of marketing process and strategic implementation of these processes, for example, strategic plan for marketing mix implementation, strategies for targeting, segmentation, positioning based on focus and cost effective methodologies. Market segmentation is used to identify the different segments of consumers with respect to different product line. (Kotler, 2009)Targeting strategy is used to recognize the target audience for the particular products. Product positioning is used to identify the region in which the products will compete in a market place. These different elements of marketing process are elaborated in this study in order to understand managing marketing. Dubai is a major and attractive marketing hub and since the developments in Arab nations and Muslim world, opportunities for business investments are growing higher. The global recoveries in 2003 of Dubai, the economic conditions of Dubai region are improved with a growth of GDP. This recovery has led to benefit the housing scheme and real estate business around Dubai where people has a clear change in their life styles. The market changing perspectives of Dubai housing and building schemes are identified in this report with the help of marketing strategies adopted by DAMAC Company. DAMAC Properties introduction and mission is also discussed previously, further the report will discuss about its current marketing details and future marketing plans. Strategic Implementation: DAMAC business strategy and objectives are aligned to its vision of leading and creating innovation thus its strategy revolves around the core steps as follows: Buy: DAMAC identifies the golden opportunities of premium lands and buy the property. It reviews the economic and favorable business opportunities in other countries outside of Dubai. Create: DAMAC creates a highly valuable and luxurious and innovative lifestyle through its buildings and value added projects. Sell: It sells the premium quality property while creating business associations and relationships with the leading housing and hotel brands. Build: DAMAC has built efficient projects through proper utilization of strategic planning, budget controlling and maximizing the profits. Marketing Mix Marketing mix of anorganizationis the spine of any organizations promoting system. Each heading association needs to examine the showcasing blend productively keeping in mind the end goal to do the method development (Jobber, 2012) Product:  DAMAC introduces the innovative and luxurious houses and properties. Its projects are alliances of other leading brands such as Paramount Hotels. DAMAC’s projects include Marina Terrance, Executive Heights, Lake View, Lake Terrance, The Waves, Smart Heights, Park Towers and DAMAC Maison etc. AKOYA is a luxurious villa, and a future business plan of DAMAC. Price: DAMAC has set premium prices for its products and services. One reason include its target market i.e., highly innovative and lifestyle oriented. Other reason is the scope of housing and building schemes in Dubai. In long run, the business could benefit from the increasing rates and opportunities of growth. In 2020 the prices are expected to show increasing trend for housing projects in Dubai. Place:  DAMAC has located the areas of Middle East, North Africa and others with a major hub in Dubai. It has a geographical focus on worldwide opportunities. Primarily it operates in residential sector but it also aims to create market in commercial development and co-brands of hotel and apartments. It has international and national offices for dealing and other matters. Promotion: It uses face to face market tools through its presence in Dubai Malls. It also uses technology and electronic media for its promotion. Target Customer: DAMAC has targeted the customer with; innovative lifestyle and luxury seeking attribute. It has focused mainly on the high income that does not bother to pay high for their niche requirements. Market Segmentation There are severalkeyelements in marketing strategies. Market segmentation is one of those key elementsthat have been implemented in maximum time. Behavioral Segmentation:  Based on behavioral segmentation, Customer behavior include the luxury and relaxed life style, need of housing style as in western nations. The company has built projects with premium quality and luxurious life styles and a never ending experience. Profile Segmentation:  A customer who is well cultured and has a good educational background with higher earnings level comes under this segment. Trade and commerce related background people are top most targeted customers. Young married couples and old ones are mostly targeted. Geographic Segmentation:  On the basis of geographic segmentation, it has eyed upon the regions of premium and worthy lands which can create a desire in people who want a standard and premium lifestyle. Psychographic segmentation: DAMAC has targeted the customers of middle age; young couples with energy and fun element seeking for spending time with high enduring tastes and values depending upon social class. Old aged based on their living style of being prestigious and with high standards.   Market Opportunities: Consumer Behavior The consumer behavior analysis relies on the relationship of people with the assistance of marketing mix. Additionally, pay level of individuals and socio-cultural variables assume a huge part on purchasing conduct of consumers (Pride Ferrell, 2011).In term of profits, business of DAMAC can lead to go up as the consumer needs of luxurious life style as adopted by Western culture has increased in Dubai and Middle East. Since this desire, the marketing for middling ranged income group is another opportunity to look forward. Since DAMAC focus of premium price, it also needs to look forward and create luxury life style opportunity for affordable range. In future, housing scheme and land prices are expected to grow up with double or triple rates. Thus, it may suggest business growth and future investment opportunities as DAMAC reports for 2013 shows its profits and success, thus the growth continues to rise. (DAMAC Annual Report, 2013) The graph below presents the current leading situati ons to opportunities for growth in hoteling and related requirements. Because Dubai is a major hub for many international events, people will seek the facility of hoteling for stay such as for events like Dubai expo. Towards the end of 2020, pattern for hoteling and housing scheme shows an upward trend. Source: (Dubaitourism.ae) Market Research: Secondary Research:  All the data is collected from the sources available on net, the journals, news and annual report of the company. Also the theories from scholarly sources are also present to back up the marketing report. Primary Research:  Primary research is conducted on the basis of survey. The respondents were selected and their response is collected through the designed questionnaire present in the Appendix A at the end. Bibliography DAMAC Annual Report. (2013). Retrieved from http://www.damacproperties.com/en/general/download/file/damac-real-estate-development-limited-annual-report-2013-final?id=12200type=report. Dubaitourism.ae. (n.d.). Retrieved December 25, 2014, from www.dubaitourism.ae Jobber, D. (2012). Principles and Practice of Marketing. New York: McGraw-Hill Education.http://oro.open.ac.uk/36359/ Kotler, P. (2009). Principles of Marketing. Pearson Education India.http://books.google.com.pk/books?hl=enlr=id=KN6PqQMnFBACoi=fndpg=PR34dq=Kotler,+P.+(2009).+Principles+of+Marketing.+Pearson+Education+India.ots=UhHdTbDNHzsig=CYs0TJTf7gnth-JsooXTBZ2R3Fg Pride Ferrell. (2011). Marketing. . Stamford: Cengage Learning.http://books.google.com.pk/books?hl=enlr=id=3dp0cR45FZcCoi=fndpg=PR3dq=Pride++Ferrell.+(2011).+Marketing.+ots=OwFuTk_15Tsig=WQxHkWpC6oD22ezjFSdPU1spd4o#v=onepageq=Pride Ferrell. (2011). Marketing.f=false Appendix A Questionnaire: Demographics: (Mandatory) Name: Age: Occupation: Income: Question Strongly Agree Agree Moderate Disagree Strongly Disagree The changing trends and globalization has impacted the lifestyle of people in Arab nations, more particularly in Dubai? The market need of customer is changing due to increasing trend of social class and society standards The increase in income is one source of change in need of life style. Present market conditions suggest that there is a need to focus on housing trends and styles Luxury is a need to today’s world. How convinced is a middle class person to buy a luxury life style: Greatly Moderately Depends upon his income Depends on his needs Depends on his income and other social factors Why would you prefer, a luxury home in attractive location: Due to increase in income Due to societal trends and need of standards and lifestyle Other Factors: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Open Ended Questions: What do you think about DAMAC and its success? Have you ever visited or a client at DAMAC Properties? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ How far DAMAC Properties has fascinated the clients based on its vision of delivering luxury? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦