Replay Board Presentation

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Transcript of Replay Board Presentation

Sales Forecast

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 DIVISIONREAL ESTATE DIVISIONREAL ESTATE DIVISION

UNITS SOLDUNITS SOLDFounders Village Homes 0 0 0 0 0 0 0 0 0 0 1 1Founders Custom Lots 0 0 0 1 1 2 0 0 0 1 0 0Founders Signature Lots 0 0 0 0 0 0 0 0 0 0 0 0AV Ph 3 Village Homes 1 0 1 1 1 2 0 0 1 4 4 3AV Ph 3 Custom Homes 0 0 1 0 4 3 0 10 1 1 4 4AV Ph 3 Signature Homes 0 0 0 0 0 0 0 0 0 0 0 0Posadas 0 0 0 0 0 0 0 0 0 6 0 0Beach Club 0 0 0 0 0 0 0 0 0 0 0 0Hotel Site 0 0 0 0 0 0 0 0 0 0 0 0Casa Nopolo (1) 0 (1) 0 0 0 0 0 0 0 0 0AV Condo 1 0 0 0 0 0 0 0 0 0 0 0 0AV Condo 2 0 0 0 0 0 0 0 0 0 0 0 0Custom Lots 1 0 0 0 0 0 0 0 0 0 0 0 0Custom Lots 2 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 1 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 2 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 3 0 0 0 0 0 0 0 0 0 0 0 0

Total Units SoldTotal Units Sold 0 0 1 2 6 7 0 10 2 12 9 8 57

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 DIVISIONREAL ESTATE DIVISIONREAL ESTATE DIVISION

UNITS SOLDUNITS SOLDFounders Village Homes 0 0 0 0 0 0 0 0 0 0 0 0Founders Custom Lots 0 0 0 0 0 0 0 0 0 0 0 0Founders Signature Lots 0 0 0 0 0 0 0 0 0 0 0 0AV Ph 3 Village Homes 3 7 5 0 0 0 0 0 0 16 5 5AV Ph 3 Custom Homes 0 2 1 1 1 1 0 0 0 1 1 2AV Ph 3 Signature Homes 0 0 0 0 0 0 0 0 0 0 0 0Posadas 0 0 0 0 0 0 0 0 0 0 0 0Beach Club 0 95 4 4 4 4 4 4 4 4 4 4Hotel Site 0 0 0 0 0 0 0 34 4 4 4 4Casa Nopolo 0 0 0 0 0 0 0 0 0 0 0 0AV Condo 1 0 0 0 0 0 0 0 0 0 0 0 0AV Condo 2 0 0 0 0 0 0 0 0 0 0 0 0Custom Lots 1 0 0 0 0 0 0 0 0 0 0 0 0Custom Lots 2 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 1 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 2 0 0 0 0 0 0 0 0 0 0 0 0AV Village Homes 3 0 0 0 0 0 0 0 0 0 0 0 0

Total Units SoldTotal Units Sold 3 104 10 5 5 5 4 38 8 25 14 15 236

Sales Initiatives and Programs

What we’ll cover

• Current direction and tactics (prior to executing new identity 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

Current Direction and Tactics

• Change in sales strategy

- Tempo sales v. Event sales

- Pooling commissions

• Sales office installations

- On and off site directional signage program in progress

• Targeted classified ad campaign – price driven

• Limited PR Campaigns in Canada and targeted markets in the US (before Replay gets announced).

• Discount program on selected lots

• Inn Programs and Packages – drive tourism

• Pulling product off the market – limited supply story

• On line initiatives and promotions

- Replay news to prospects

- Inn promotions

- Using PR to leverage social networking

Where have we been?

Where have we been?

Text

Home Page 2004

Where have we been?

Home Page 2005 - Present

What was the original story?

Where it all began

• Sustainability as the Big Idea

• Walkable, Seaside Community

• Authentic Mexico

• The Anti-Cabo

Where it all began

• What Worked?

- Sustainability- Affordability

• What Didn’t?

- Unfulfilled promises

- Vision wasn’t financially viable

• What Else Happened

- Sustainability became ubiquitous- Economic downturn- Storyline lacked sound economic logic

Where Do We Go From Here?

Replay Process Begins

Address Current Reality

• Economy

• Current perception of Loreto Bay today, by owners and prospects. We need raving fans.

• Airlift challenges

• Still a developing destination resort town. Needs a vibrancy all its own that truly resonates with people.

• Can’t abandon our core audience to date, but people tend to resist change – including visual identities. Evolution of the project must be enticing, exciting, and executed in a timely fashion.

How do we tell a better story?

Step 1Refocusing Session

• 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.

Refocusing: What is It?

• It is where the new story begins to develop

• Two-day process to move from an earlier marketing strategy to a new one

• Critical in responding to new market conditions

Refocusing: What is It, cont.

• Began as process of “envisioning”

• Used with great success to invent new forms of resort real estate

• The outcome of an envisioning session was a Storyline

Refocusing: How Has Process Evolved

• Participation limited to a team of the industry’s most knowledgeable and wisest in their chosen field

• We will leave agreeing the story (vision) is achievable within budgetary realities

• Actionable outcome - vision will be based in reality, but still cutting edge

• Magic will be balanced with logic

Refocusing: Our Session/The Objective

• Will take place in June

• About 20-25 people

• The objective will be to re-examine and rethink every aspect of the planning, design and operation of Loreto Bay in the context of current and anticipated market conditions.

Step 2Creation of a Storyline

In a million channel world, brands whose consumers tell the best stories, win

“The mind best understands facts when they are woven into a conceptual fabric, such as a narrative. Disconnected facts in the mind

are like unlinked pages on the web: they might as well not exist.”

Steve PinkerHarvard University

Department of Psychology

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.

Storyline: Why do we need one?

• A well executed storyline will not only inform marketing and sales - rather it touches every aspect of programming and development on some level.

• It drives the resort.

Step 3Anticipated Storyline Elements

Storyline Elements: What we are becoming

1. Create a new, broader, more relevant definition of sustainability. Focus on economic and social aspects, not primarily environmental.

2. Must become a destination for tourists - not just a real estate development. Visitors either become buyers, or spread the word.

3. Allow the notion of “regenerative development” to apply to body, mind and soul, as well as the land. Loreto Bay is a place to come and get revived. Renewed. Reenergized.

4. Take full advantage of all nature has provided, Own the land and the sea for miles. Being an attraction as well as a development also allows us to create an ongoing “revenue annuity” for the owners. Programming is critical.

5. Become better experience providers. Must expedite the destination’s viability and create a there, there.

Storyline Elements: What we are becoming, cont.

6. The recreational capital of Baja. Position Loreto Bay as a departure point, an Experience Concierge, to countless experiences within the region, not just the resort itself

7. Based upon the concept of exploration, we are the guide to those discoveries throughout the region

8. New members’ program will be known as The Cortés Explorers Club

9. Develop different forms of real estate products that are more attuned to market conditions - like the Beach Club

10.Build a more symbiotic relationship with the historic town of Loreto to try to ensure that it remains relatively unspoiled - something no other Mexican resort has really achieved.

Step 4Visual Languaging

Creative Examples: Creative Rationale

• Signal that changes are occurring within Loreto Bay

• Confirm that the resort is becoming more experience oriented (versus just real estate)

• Establish an icon that allows us to begin exploring a broader definition of “sustainability”

• Take ownership of an existing UNESCO World Heritage site, Cousteau’s “World’s Aquarium” and Steinbeck’s “exuberant fierceness of life.”

• Give meaning to the word “bay” – as in Loreto Bay

Creative Examples: Creative Rationale

• Sea (and Loreto Bay’s position as a soft edge between mountain and sea)

• Exploration and discovery

• Mythology. The giantess of the mountain. The giants of the deep (including the world’s largest squid, rays, and whales)

• Stewardship of both the land and the sea

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Creative Examples: New Visual Identity

Storyline Elements: New Web Site

Text

Target Launch May 15, 2008

Storyline Elements: New Web Site

Target Launch May 15, 2008

Creative Examples: Web Site Sample Copy

“It 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. It’s 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.”

Step 5The Storyline in Action

In Action: The Cortés Explorers Club

• The Club is an example of how the Storyline and the identity have already begun to drive the vision for Loreto Bay and will continue to do so.

• The Sea of Cortez was named in honor of Hernán Cortés (Hernando Cortez), Spanish conquistador and explorer

• Exploration and discovery are recurring themes in the Storyline

In Action: The Cortés Explorers Club

• The concepts of exploration and guiding are based with Abercrombie & Kent, the world’s most illustrious experiential travel company

• The theme of “community” is manifested in the concept of club, as it will also soon be in the on-line community that we are beginning to build as a real estate marketing and sales tool.

In Action: The Cortés Explorers Club

• Members of the club will have privileged access to recreational, mind-filling and even life-altering experiences not only in the resort itself but also throughout the region, both on land and in the sea

• Membership is a passport to adventure – and membership is the only way to obtain that passport

In Action: The Cortés Explorers Club

• The two golf-courses associated with the club will be named Azul Grande (Big Blue) for the enormous Blue Whales that migrate annually to the Sea of Cortez and La Giganta, for the mountains (Sierra de la Giganta) which form part of the site

• Members of the club will also serve as stewards of the land and of the sea, including the resort’s own 5,000-acre nature preserve

In Action: The Cortés Explorers Club

• Establish Loreto as the recreational capital of Baja.

• The Training Center will be tailored to help guests achieve greater fitness levels in specific areas that will best serve their activity or "exploration" of choice, be it kayaking, mountain biking etc. Eventually some of the world's best coaches and trainers may elect to be part of the programs on a seasonal or "coach in residence" basis.

• Establish strategic partnerships with the worlds top vendors (i.e. Trek mountain bikes, North Face, Patagonia) to reinforce the notion that Loreto is, in fact, the recreational capital of Baja. Brand specific programs and components where appropriate (i.e. the Trek or Gary Fisher trail).

Launching the New Loreto Bay

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

Launching: The First Event

Launching: The First Event

Launching: The First Event

• Strategy

- Introduce the room to Replay and the company’s long-term strategy and near-term plans

- Transition into the story of Loreto Bay as Replay’s first resort property

- Extend an invitation to visit Loreto now or as a special guest of Replay and of the resort for the official opening of The Cortés Explorers Club.

- A Loreto Bay real estate exhibit will be strategically placed in the ballroom’s reception area. There is a long-established market for Mexican real estate in Western Canada

Launching: The First Event

• The Offer

- A persuasive one. We’re working on that. Based on some combination of price and membership that provides an incentive to be interested now

Launching: The First Event

• Follow-up

- Immediate follow-up within a few days of the event with those who have expressed an interest in Loreto Bay real estate

- Ongoing followup with all 750 attendees re chartered travel to the Fall launch of The Cortés Explorers Club

- Use this first wave of 750 people to begin creating second and third circles of Replay and Loreto insiders

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 over the next nine months) will be first real evidence of the new storyline, look and feel.

• Collateral

• The launch of The Cortés Explorers Club. Early news of the Club position will reinforce the story

• The launch of The Beach Club as our first Replay-era real estate offering

• Integration in to all traditional and new media marketing elements

Rollout of New Story, cont.

• Resort signage

• Gear and garb (merchandise)

• A series of pivotal events

Who is Our Market Today?

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

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

Who is Our Market Becoming?

• What Will Drive Recreational Real Estate?

- One Person’s 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

Who is Our Market Becoming?

• One Person’s 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.

• Authenticity Seekers

– “Authenticity is the new luxury.” Authentic architecture. Authentic places. Authentic experiences. Authentic people. Authentic relationships. And authentic stories.

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.

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 Bay’s commitment to honor the land and sea.

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.

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.

Who is Our Market Becoming?

• The Importance of the Female Buyer

–With real estate uncertainty deepening across America, we’re 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.

Who is Our Market Becoming?

• The Real Value of Real Estate

–Today’s 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.

Who is Our Market Becoming?

What’s next?

Strategic Overview

• Leverage new brand position, expanded market data, fully developed project storyline and marketing infrastructure to launch a comprehensive, fully-integrated marketing effort intended to accomplish the following:

• Establish Loreto Bay as an emerging “must see” destination

• Create buzz in the market place surrounding both home sales and tourism

• Generate leads and traffic required to achieve sales and revenue goals

Going Forward

• Introduce non-traditional methods with refined and re-focused traditional tools

• Leverage tourism efforts for real estate

• Re-Brand Loreto Bay with new look to establish it as a major destination

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

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

The Next 90-Days

• Complete all models and renderings required for Beach Club and Membership Launch

• Initiate marketing for “road shows”

- email announcements, personal communication

• Tactical elements of beach club and membership in full execution

• PR Campaigns taking hold and building momemtum

• On line initiatives going strong

• Advertising, direct mail, etc. elements in place and ready to execute in support of on-going sales

More to Come

• True integration with hospitality

• Home owner referral programs

• Events

• Resales well underway

• Grand Openings in 2009

- Beach Club

- Golf Course

Lead Generation 2008

• Web Inquiry

• Public Relations

• Direct Mail

• Friend/Owner Referral

• Print

• Social Networking

• Resort Guest - Eco Travelers

• Banner Ads

• Realtor

• Walk-In

Traditional Non-TraditionalPrint Advertising Social Media MarketingRadio/TV/Outdoor BloggingPublic Relations Social NetworkingDirect Mail Social MediaEventsNewslettersCommunication and Referral

Traditional vs. Non-Traditional

Advertising

• A combination of base and vertical placements will be used to support overall marketing efforts and Social Media campaign

• 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

Public Relations

• Establish Replay as a respected player and trusted source of information in resort development

• Focus on amenity development and business development 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

The Importance of the Internet

• 65-percent of resort real estate buyers find their next new homes by referral from friends and family

• 65-percent predicate their real estate buying decisions on information they find on the Internet

• Give them something irresistible to talk about in our on-line marketing efforts

• Make a first-time guest visitor to our resort or to our website feel welcomed, feel “a part of us” at the moment of first contact

Website

• Become an interactive community

• Meet people from LB who is sharing the spirit and excitement through conversation

• Fresh and clean

• Easy to navigate

A Myriad of New Web 2.0 Tools to Get Our Message Out Fast!

Don’t “advertise”Join the conversation

Social Media Marketing: Joining the Online Conversation

• Social Network Sites–Facebook

–LinkedIn

–MySpace

–Many more...

• Blogs

• Picture/Video Sharing

Social Media Marketing

• Word of mouth can be encouraged and facilitated.

• It can’t be faked!

• 56% of consumers say they trust their friends and family to influence them 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

Social Network Marketing

• Websites where people can gather to discuss common interests, share media, explore ideas, complain, praise, etc.

• There is a place for everyconceivable interest

It’s About Relationships (wasn’t it always?)

It’s Just Not Child’s Play Anymore

Source: ComScore

Impact of Social Media Sites

Total Web Traffic in Millions July 2007

It’s Not Going Away...

• Facebook

–67 million users

–Average 250,000 new users per day since Jan. 2007

–The fastest growing demographic is those 25 years old and older

• LinkedIn

–Over 18 million users

–More Business Oriented

–Average HHI - $130,000

–Average Work Experience - 15 yrs

Beach Club Launch Timeline

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

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)

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

Gracias