1. 1. Sales Forecast
2. 2. Revised Sales Projections 2008 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 REAL ESTATE DIVISIONUNITS SOLDFounders Village Homes 0 0 000 0 0 0001 1Founders Custom Lots 0 0 011 2 0 0010 0Founders Signature Lots0 0 000 0 0 0000 0AV Ph 3 Village Homes1 0 111 2 0 0144 3AV Ph 3 Custom Homes 0 0 104 3 010114 4AV Ph 3 Signature Homes0 0 000 0 0 0000 0Posadas0 0 000 0 0 0060 0Beach Club 0 0 000 0 0 0000 0Hotel Site 0 0 000 0 0 0000 0Casa Nopolo(1) 0 (1)00 0 0 0000 0AV Condo 1 0 0 000 0 0 0000 0AV Condo 2 0 0 000 0 0 0000 0Custom Lots 10 0 000 0 0 0000 0Custom Lots 20 0 000 0 0 0000 0AV Village Homes 1 0 0 000 0 0 0000 0AV Village Homes 2 0 0 000 0 0 0000 0AV Village Homes 3 0 0 000 0 0 0000 0Total Units Sold 001 26 7 0102 129 8 57
3. 3. Revised Sales Projections 2009 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 REAL ESTATE DIVISIONUNITS SOLDFounders Village Homes00000 00 00000Founders Custom Lots00000 00 00000Founders Signature Lots 00000 00 00000AV Ph 3 Village Homes 37500 00 00 1655AV Ph 3 Custom Homes02111 10 00112AV Ph 3 Signature Homes 00000 00 00000Posadas 00000 00 00000Beach Club0 95444 44 44444Hotel Site00000 00344444Casa Nopolo 00000 00 00000AV Condo 100000 00 00000AV Condo 200000 00 00000Custom Lots 1 00000 00 00000Custom Lots 2 00000 00 00000AV Village Homes 100000 00 00000AV Village Homes 200000 00 00000AV Village Homes 300000 00 00000Total Units Sold 3104 1055 54388 25 14 15236
4. 4. Sales Initiatives and Programs
5. 5. What well cover Current direction and tactics (prior to executing newidentity and storyline elements) Laying a new foundation for the future - the importance of the right storyline for the project The Replay process Long term strategies and tactics
6. 6. Current Direction and Tactics Change in sales strategy Discount program on selected lots - Tempo sales v. Event sales Inn Programs and Packages drivetourism - Pooling commissions Pulling product off the market Sales office installations limited supply story - On and off site directional On line initiatives and promotions signage program in progress - Replay news to prospects Targeted classified ad campaign price driven - Inn promotions Limited PR Campaigns in Canada- Using PR to leverage socialand targeted markets in the US networking(before Replay gets announced).
7. 7. Where have we been?
8. 8. Where have we been? Text Home Page 2004
9. 9. Where have we been? Home Page 2005 - Present
10. 10. What was the original story?
11. 11. Where it all began Sustainability as the Big Idea Walkable, Seaside Community Authentic Mexico The Anti-Cabo
12. 12. Where it all began What Worked? - Sustainability - Affordability What Didnt? - Unfulfilled promises - Vision wasnt financially viable What Else Happened - Sustainability became ubiquitous - Economic downturn - Storyline lacked sound economic logic
13. 13. Where Do We Go From Here?
14. 14. Replay Process Begins
15. 15. Address Current Reality Economy Current perception of Loreto Bay today, by owners andprospects. We need raving fans. Airlift challenges Still a developing destination resort town. Needs avibrancy all its own that truly resonates with people. Cant abandon our core audience to date, but peopletend to resist change including visual identities.Evolution of the project must be enticing, exciting, andexecuted in a timely fashion.
16. 16. How do we tell a better story?
17. 17. Step 1 Refocusing Session
18. 18. Refocusing: What is It? 15-25 wheredocument It is page the new story begins to develop Idea blueprint that translatesfrom an earlier Two-day process to move in tangible blueprints, drawings, to a new onemarketing strategy plans, spreadsheets and manuals Critical in responding to new market conditions It is a written contract among all members of the team that are driving this project forward.
19. 19. Refocusing: What is It, cont. Began as process of envisioning Used with great success to invent new forms ofresort real estate The outcome of an envisioning session was aStoryline
20. 20. Refocusing: How Has Process Evolved Participation limited to a team of the industrysmost knowledgeable and wisest in their chosenfield We will leave agreeing the story (vision) isachievable within budgetary realities Actionable outcome - vision will be based inreality, but still cutting edge Magic will be balanced with logic
21. 21. Refocusing: Our Session/The Objective Will take place in June About 20-25 people The objective will be to re-examine and rethinkevery aspect of the planning, design andoperation of Loreto Bay in the context of currentand anticipated market conditions.
22. 22. Step 2 Creation of a StorylineIn a million channel world, brands whoseconsumers tell the best stories, win
23. 23. The mind best understands facts when theyare woven into a conceptual fabric, such asa narrative. Disconnected facts in the mindare like unlinked pages on the web: they might as well not exist.Steve PinkerHarvard University Department of Psychology
24. 24. Storyline: What is a Storyline? 15-25 page document Idea blueprint that translates in tangible blueprints, drawings, plans, spreadsheets and manuals It is a written contract among all members of the team that are driving this project forward.
25. 25. Storyline: Why do we need one? A well executed storyline will not only informmarketing and sales - rather it touches everyaspect of programming and development onsome level. It drives the resort.
26. 26. Step 3 Anticipated Storyline Elements
27. 27. Storyline Elements: What we are becoming1. Create a new, broader, more relevant definition ofsustainability. Focus on economic and social aspects, notprimarily environmental. 2. Must become a destination for tourists - not just a real estatedevelopment. Visitors either become buyers, or spread theword. 3. Allow the notion of regenerative development to apply tobody, mind and soul, as well as the land. Loreto Bay is aplace to come and get revived. Renewed. Reenergized. 4. Take full advantage of all nature has provided, Own the landand the sea for miles. Being an attraction as well as adevelopment also allows us to create an ongoing revenueannuity for the owners. Programming is critical. 5. Become better experience providers. Must expedite thedestinations viability and create a there, there.
28. 28. Storyline Elements: What we are becoming, cont. 6. The recreational capital of Baja. Position Loreto Bay as adeparture point, an Experience Concierge, to countlessexperiences within the region, not just the resort itself 7. Based upon the concept of exploration, we are the guide tothose discoveries throughout the region 8. New members program will be known asThe Corts Explorers Club 9. Develop different forms of real estate products that are moreattuned to market conditions - like the Beach Club 10.Build a more symbiotic relationship with the historic town ofLoreto to try to ensure that it remains relatively unspoiled -something no other Mexican resort has really achieved.
29. 29. Step 4 Visual Languaging
30. 30. Creative Examples: Creative Rationale Signal that changes are occurring within Loreto Bay Confirm that the resort is becoming more experienceoriented (versus just real estate) Establish an icon that allows us to begin exploring abroader definition of sustainability Take ownership of an existing UNESCO WorldHeritage site, Cousteaus Worlds Aquarium andSteinbecks exuberant fierceness of life. Give meaning to the word bay as in Loreto Bay
31. 31. Creative Examples: Creative Rationale Sea (and Loreto Bays position as a soft edgebetween mountain and sea) Exploration and discovery Mythology. The giantess of the mountain. The giantsof the deep (including the worlds largest squid, rays,and whales) Stewardship of both the land and the sea
32. 32. Creative Examples: New Visual Identity
33. 33. Creative Examples: New Visual Identity
34. 34. Creative Examples: New Visual Identity
35. 35. Creative Examples: New Visual Identity
36. 36. Creative Examples: New Visual Identity
37. 37. Creative Examples: New Visual Identity
38. 38. Creative Examples: New Visual Identity
39. 39. Creative Examples: New Visual Identity
40. 40. Creative Examples: New Visual Identity
41. 41. Creative Examples: New Visual Identity
42. 42. Creative Examples: New Visual Identity
43. 43. Storyline Elements: New Web SiteText Target Launch May 15, 2008
44. 44. Storyline Elements: New Web SiteTarget Launch May 15, 2008
45. 45. Creative Examples: Web Site Sample CopyIt begins in the teeming tide pools of Loreto Bay and is abundant in the reefs; it spills into the mangrove estuaries and climbs the mountain canyons into the rose-tinged blue of twilight. In this precious geography on the Sea of Cortez, you are the Explorer.As an explorer, you need to get your bearings. Loreto Bay the Bahia de Loreto sits in the spectacular embrace of the Sierra de las Gigantes mountains facing onto the glassy Sea of Cortez on the eastern coast of the state of Baja California Sur. Its at 26 degrees N latitude and 111 degrees W longitude, approximately 550 kilometers (340 miles) north of both busy Cabo San Lucas. The resort is 8,000-acres, stretching from a three-mile beachfront to a 5,000-acre Nature Preserve in the mountains. The town of Loreto, the oldest mission in North America, is just moments away. Clearly, there can be no better base camp for the adventure of life.
46. 46. Step 5 The Storyline in Action
47. 47. In Action: The Corts Explorers Club The Club is an example of how theStoryline and the identity have alreadybegun to drive the vision for Loreto Bayand will continue to do so. The Sea of Cortez was named in honorof Hernn Corts (Hernando Cortez),Spanish conquistador and explorer Exploration and discovery are recurringthemes in the Storyline
48. 48. In Action: The Corts Explorers Club The concepts of exploration and guidingare based with Abercrombie & Kent, theworlds most illustrious experiential travelcompany The theme of community is manifestedin the concept of club, as it will also soonbe in the on-line community that we arebeginning to build as a real estatemarketing and sales tool.
49. 49. In Action: The Corts Explorers Club Members of the club will have privileged access torecreational, mind-filling and even life-alteringexperiences not only in the resort itself but alsothroughout the region, both on land and in the sea Membership is a passport to adventure andmembership is the only way to obtain that passport
50. 50. In Action: The Corts Explorers Club The two golf-courses associated with the clubwill be named Azul Grande (Big Blue) for theenormous Blue Whales that migrate annuallyto the Sea of Cortez and La Giganta, for themountains (Sierra de la Giganta) which formpart of the site Members of the club will also serve asstewards of the land and of the sea, includingthe resorts own 5,000-acre nature preserve
51. 51. In Action: The Corts Explorers Club Establish Loreto as the recreational capital of Baja. The Training Center will be tailored to help guestsachieve greater fitness levels in specific areas thatwill best serve their activity or quot;explorationquot; of choice,be it kayaking, mountain biking etc. Eventually someof the world's best coaches and trainers may elect tobe part of the programs on a seasonal or quot;coach inresidencequot; basis. Establish strategic partnerships with the worlds topvendors (i.e. Trek mountain bikes, North Face,Patagonia) to reinforce the notion that Loreto is, infact, the recreational capital of Baja. Brand specificprograms and components where appropriate (i.e.the Trek or Gary Fisher trail).
52. 52. Launching the New Loreto Bay
53. 53. Launching: The First Event Tuesday, June 10th in Vancouver Wall Centre Hotel Attendees will include: - Vancouver's most influential people - Previous purchasers of resort properties - Loreto Bay owners in Western Canada - Local, regional and national media
54. 54. Launching: The First Event
55. 55. Launching: The First Event
56. 56. Launching: The First Event Strategy - Introduce the room to Replay and the companys long-termstrategy and near-term plans - Transition into the story of Loreto Bay as Replays first resortproperty - Extend an invitation to visit Loreto now or as a special guestof Replay and of the resort for the official opening of TheCorts Explorers Club. - A Loreto Bay real estate exhibit will be strategically placed inthe ballrooms reception area. There is a long-establishedmarket for Mexican real estate in Western Canada
57. 57. Launching: The First Event The Offer - A persuasive one. Were working on that. Based on somecombination of price and membership that provides anincentive to be interested now
58. 58. Launching: The First Event Follow-up - Immediate follow-up within a few days of the event with thosewho have expressed an interest in Loreto Bay real estate - Ongoing followup with all 750 attendees re chartered travel tothe Fall launch of The Corts Explorers Club - Use this first wave of 750 people to begin creating secondand third circles of Replay and Loreto insiders
59. 59. Rollout of a New Story Prior to event, introduce to employees, current homeowners,strategic partners and Loreto prospects. A re-skinned website (which will continue to be refined overthe next nine months) will be first real evidence of the newstoryline, look and feel. Collateral The launch of The Corts Explorers Club. Early news of theClub position will reinforce the story The launch of The Beach Club as our first Replay-era realestate offering Integration in to all traditional and new media marketingelements
60. 60. Rollout of New Story, cont. Resort signage Gear and garb (merchandise) A series of pivotal events
61. 61. Who is Our Market Today?
62. 62. Who is Our Current Market? Current Buyers: Demographic + Geographic- Affluent baby boomers- Young professionals- Ages 35 to 65- Married couples- Well-educated- HHI more than $200,000
63. 63. Who is Our Current Market? Current Buyers: Demographic + Geographic- 44% of buyers are from California- 20% from Canada- 12% from the United States Northwest- 24% are from 26 other States, France, UK,Saudi Arabia and the US Virgin Islands
64. 64. Who is Our Market Becoming? What Will Drive Recreational Real Estate? - One Persons Misfortune - Authenticity Seekers - Youth Wealth - Leaving a Legacy - The New Prime Time - Slowing Down the Speed of Life - The Importance of the Female Buyer - The Real Value of Real Estate
65. 65. Who is Our Market Becoming? One Persons Misfortune- The downturn in the U.S. real estate market is seen as being an opportunity for Canadians to invest not only in U.S. resort real estate (the Palm Desert being an example) but also in markets, such as Mexico and the Baja specifically, that were being fueled by speculation by U.S. buyers. This cooling out period it the ideal time to speak to Canadians, South Americans and even affluent Mexicans themselves about the Loreto Bay story and the proven, long-term ability of this team to change perceptions of market conditions and of value.
66. 66. Who is Our Market Becoming? Authenticity Seekers Authenticity is the new luxury. Authentic architecture. Authentic places. Authentic experiences. Authentic people. Authentic relationships. And authentic stories.
67. 67. Who is Our Market Becoming? Youth Wealth Surprisingly 70-percent of the wealth in the United States has been created in the past 12 years. We are in an Entrepreneurial Age, when someone, regardless of age and, indeed, independent of traditional business acumen, can accumulate RAPID wealth, often in technology-related fields.
68. 68. Who is Our Market Becoming? Leaving a Legacy Many Baby Boomers have sold their souls, and now they want to buy them back. These buyers could be drawn to Loreto Bays commitment to honor the land and sea.
69. 69. Who is Our Market Becoming? The New Prime Time Boomers are also redefining the very word retirement. They see retirement as being an active phase of life physically, intellectually and even professionally, with many of them embarking on second careers (often in search of a second, preferred, more creative career than their first one). Being able to work remotely bodes well for Loreto.
70. 70. Who is Our Market Becoming? Slowing Down the Speed of Life In terms of real estate sales the new urgency is the uncertainty and brevity of life. Baby Boomers in particular want to squeeze as much (meaningfulness) as possible into their lives. They accept that their bodies will age, but mentally they do not want to grow old. The expansion of regenerative development supports this reality.
71. 71. Who is Our Market Becoming? The Importance of the Female Buyer With real estate uncertainty deepening across America, were clearly entering a new era, with new buyers, new buying patterns, and a major paradigm shift is needed. Most marketers know that 70-percent of real estate purchases are finalized by women.
72. 72. Who is Our Market Becoming? The Real Value of Real Estate Todays market presents a different kind of challenge End of skyrocketing prices of real-estate fueled by the speculative buyer and by the seemingly unlimited availability of sub-prime mortgages. developers who over-promised and under-delivered have also caused buyers to now become more cautious Buyers now ask more and expect more of the developer-builder they choose to buy from. This is a crucial part of the new Loreto story.
73. 73. Whats next?
74. 74. Strategic Overview Leverage new brand position, expanded market data,fully developed project storyline and marketinginfrastructure to launch a comprehensive, fully-integrated marketing effort intended to accomplish thefollowing: Establish Loreto Bay as an emerging must seedestination Create buzz in the market place surrounding bothhome sales and tourism Generate leads and traffic required to achievesales and revenue goals
75. 75. Going Forward Introduce non-traditional methods with refinedand re-focused traditional tools Leverage tourism efforts for real estate Re-Brand Loreto Bay with new look to establishit as a major destination
76. 76. The Next 30-Days Introducing Look and Feel Launch New Websites Refine on line strategy to reflect new brand position Send Event Invitation Launch New 2008 PR Campaign - Announce Replay Launch Specific Vancouver/Calgary Campaigns- mini integrated campaigns (PR, ADVT. etc) Completion of New Collateral Material
77. 77. The Next 60-Days Replay/Loreto event takes place in Vancouver Refocusing session takes place Launch strategy for Beach Club finalized Membership launch finalized Continue to nurture prospects from event for fall launch Initiation of on site signage program. Refine on site experience. New creative completed. Toolbox is ready. Strategic partnerships for club being established
78. 78. The Next 90-Days Complete all models and renderings required forBeach Club and Membership Launch Initiate marketing for road shows - email announcements, personal communication Tactical elements of beach club and membership infull execution PR Campaigns taking hold and building momemtum On line initiatives going strong Advertising, direct mail, etc. elements in place andready to execute in support of on-going sales
79. 79. More to Come True integration with hospitality Home owner referral programs Events Resales well underway Grand Openings in 2009 - Beach Club - Golf Course
80. 80. Lead Generation 2008 Web Inquiry Social Networking Public Relations Resort Guest - Eco Travelers Direct Mail Banner Ads Friend/Owner RealtorReferral Walk-In Print
81. 81. Traditional vs. Non-Traditional TraditionalNon-Traditional Print AdvertisingSocial Media Marketing Radio/TV/Outdoor Blogging Public Relations Social Networking Direct MailSocial Media Events Newsletters Communication and Referral
82. 82. Advertising A combination of base and vertical placements will be usedto support overall marketing efforts and Social Mediacampaign In-flight magazines have performed and support tourism Local advertising in support of off-site events Message designed to drive web traffic Print will help establish Loreto as must see Leverage PR and editorial wherever possible
83. 83. Public Relations Establish Replay as a respected player and trustedsource of information in resort development Focus on amenity development and businessdevelopment in Baja - tying back to Loreto Bay Utilize a combination of high level international approach combined with additional emphasis in feeder markets/ especially Canada Continue integrating tourism and home sales messaging Further establish Loreto as a destination the hip, outdoor recreational hub of Baja Consistently reinforce Loreto Bay storyline in PR opportunities
84. 84. The Importance of the Internet 65-percent of resort real estate buyers find theirnext new homes by referral from friends and family 65-percent predicate their real estate buyingdecisions on information they find on the Internet Give them something irresistible to talk about inour on-line marketing efforts Make a first-time guest visitor to our resort or toour website feel welcomed, feel a part of us atthe moment of first contact
85. 85. Website Become an interactive community Meet people from LB who is sharing the spirit and excitementthrough conversation Fresh and clean Easy to navigate
86. 86. A Myriad of New Web 2.0 Tools to Get Our Message Out Fast!
87. 87. Dont advertise Join the conversation
88. 88. Social Media Marketing: Joining the Online Conversation Social Network Sites Facebook LinkedIn MySpace Many more... Blogs Picture/Video Sharing
89. 89. Social Media Marketing Word of mouth can be encouraged and facilitated. It cant be faked! 56% of consumers say they trust their friends and family to influencethem on companies and brands 63% of consumers share content they receive at least once a week 75% of people forward shared content to up to six people
90. 90. Social Network Marketing Websites where people can gather todiscuss common interests, share media,explore ideas, complain, praise, etc. There is a place for everyconceivable interest
91. 91. Its About Relationships (wasnt it always?)
92. 92. Its Just Not Childs Play Anymore
93. 93. Impact of Social Media SitesTotal Web Traffic in Millions July 2007Source: ComScore
94. 94. Its Not Going Away... Facebook LinkedIn 67 million users Over 18 million users Average 250,000 new users per More Business Oriented day since Jan. 2007 Average HHI - $130,000 The fastest growing demographic is those 25 years old and older Average Work Experience - 15 yrs
95. 95. Beach Club Launch Timeline
96. 96. Beach Club Launch Schedule Phase 1 (May 1st August 1st) - Replay/Loreto Bay unveiling event in Vancouver (announcement of fall VIP weekend at Loreto Bay with immediate tours to sell existing inventory)- Loreto Bay envisioning session (key stakeholders to redefine Loreto vision)- Creation of Loreto Bay envisioning piece/full collateral - Create new CRM language system for ranking prospects - Fill pipeline with Beach Club prospects - Conduct full marketing and sales strategy session (written plan as output) - Begin development of new collateral and marketing tools to support Beach Club sales effort
97. 97. Beach Club Launch Schedule Phase 2 (August 1st November 1st) - Beach Club sales office tools complete (overall resort model, graphics, etc.)- Finalize Beach Club renderings and model (working with development team)- Sales team finalized - Begin true whisper campaign - Establish preliminary unit pricing - Launch operations strategy defined (sales office locations, etc.) - Early lead generation (Loreto Bay message with Beach Club mention)- Preliminary sales training (late October)
98. 98. Beach Club Launch Schedule Phase 3 (November 1st March 30th)- Lead generation continues prior to Christmas- Main direct mail (Beach Club specific) first week of January- Begin accepting reservations in mid-January- Preparation of legal documents for Purchaser Guide- Completion of Purchaser Guide (all legal docs, sales contract, etc.)- Final unit price list released in mid-February- Grand Opening Sales Event March 15, 2009
99. 99. Gracias