Executive Summary

Turner Riverwalk is a collection of buildings and businesses attempting to be financially successful in the city of Riverside, California. The city is the 12th most populated city in the state and by far is the biggest city within the Inland Empire where it is located. Riverside is unique in the fact that although many cities within the

Inland Empire are associated with labor defined by distribution or production, Riverside is known for affluence and a varying job market. The US Census quick facts describes that the average household income for the city is $41,646 a year while the most comparable city in the Inland Empire in terms of size, San Bernardino, is $31,140 a year. This shows a market within the area with the most disposable income of any other city listed within the Inland Empire. The city of Riverside’s official website www.riverside.ca.gov actually lists the 2010 numbers to be much higher at $67,299 a year for the same average household, whether this be an embellishment or the truth it shows more than double the average income of the second largest city in the Inland Empire and the 19th biggest population in the state. It is their clear intention within their own website to show that Riverside is a beautiful place to live and is different than the cities located around it. It is in this affluent city however, that location plays a key.

Turner Riverwalk is located off the 15 freeway on Riverwalk Parkway in a bustling area for consumers. The Tyler Mall is within walking distance of the area, as well as a hospital in Kaiser Permanente, and different strip malls located around the Tyler Mall. The 15 freeway also allows for several stores within a 5 mile radius of the shops to also be a reasonable choice for competition. It is through our own studies that we have found that there are a few ways to improve the failing sales at

A Proposal To:

Riverwalk Plaza

December 6, 2011

JOHN PABUSTANLA SIERRA UNIVERSITY

SAVING RIVERWALK: A MISSION FOR THE AGES

the stores at Riverwalk if the retailers and professionals successfully chose a target market. It is possible to improve the overall financial stability of the shops through simple promotions and advertising, yet to keep sales consistent it seems that Riverwalk must employ the use of niche marketing to corner consumers. The competition in the area is fierce and clearly staying the course is not working. Given the situation and the way we see the problem, Riverwalk must market itself as a unit and work towards bringing in consumers as a whole. The varying array of options at a consumer’s disposal in the area makes the Riverwalk option unappealing because of its lack of convenience in comparison to other areas. The key to marketing Riverwalk against its competitors is creating an area where amenities are available throughout the plaza as individual appeal is clearly not working. The basic concept of company competition is meaningless when they are vying for only a few customers at a time. We propose that Riverwalk can be changed by defining a target market, making simple changes to the format, and making Riverwalk “the experience” the centerpiece of the formula.

Situational Analysis

Turner Riverwalk was originally a project by the Turner Development Company to make an industrial development in a section of Riverside that lacked any sort of classification. It was reported in the August 29, 2005 Real Estate Journal that the original layout of the entire complex changed as the area changed. Riverside as stated before has the highest amount of disposable income within the Inland Empire and while in production a series of high end houses were built in the area directly around Riverwalk. The average home in Riverside ranges from $300,000-$500,000 with the newer homes being built in the area being $500,000 or more. The homes around Riverwalk were selling for extremely more than the normal new home and an opportunity to cash in from these high end consumers seemed apparent. It was also in 2005, when a trend was emerging where a shortage of office buildings for the booming city prompted several other developments to add both retail and office components. Riverwalk although, still being built as a sort of industrial development, attempted to follow the trend trying to create more profit. Riverwalk’s aesthetics today still look as if the original intention was to build industrial developments, but no one could have predicted the housing market to crash as well as a lack of entrepreneurship to take the office spaces. The current setup of the buildings is very unformidable as many buildings face backwards to the

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street and a lack of eye-catching aesthetics make consumers only drive past. The location is dominated by the nearby Galleria at Tyler that since 1970 has only seen one anchor store fail in its many years.

The Tyler mall is Riverwalk’s biggest competitor. It offers several amenities and stores that range from car washes to safety escorts for female consumers. It has three anchor stores which consist of big name retailers Macy’s, J.C. Penney, and Nordstrom’s. It has every conceivable type of store ranging from a movie theatre to nearly every kind of ethnic food. It has great communication between stores as it even offers a store wide gift card. People are greeted with internet access, a kid’s club, and even a postage area. It is a one stop shop for all who come to the mall. It is aesthetically pleasing as well as has parking available for most consumers. This is a competitor that is time tested and well recognized. Riverwalk must focus on its advantages and attempt to be as competitive with the Galleria at Tyler as possible.

Riverwalk has one major advantage in comparison to the Galleria at Tyler but it involves tapping into one major market. The shops are located adjacent to La Sierra High School and La Sierra University. The University has an untapped market that does have disposable income, in the under recognized college student. One of the biggest success in the Riverside area is the University Village located near the University of California, Riverside that caters to college students. The University Village offers office buildings, retail, and specialty stores much like Riverwalk yet is more successful in every aspect. The official website lists the amount of students,

faculty, and staff that are possible customers as well as the enormous amount of traffic that is produced on just an everyday basis. The site lists 531, 118 cars daily which can be millions of people considering that it is only the number of cars not the

number of people within those cars. This does not name the number of students walking to the facility or other patrons who might frequent the area. The model shows a simple idea, have several flagship type stores located on the outside perimeter visible to the many consumers. Denny’s, Del Taco, and Starbucks are among the first stores visible on the premise. Educational or office type suites such as the Kaplan facility are usually located on the 2nd floor of the premise with other stores being the focus. These flagship stores are posted prominently on the website and even more are extremely visible at University Village. The premise also clearly caters to college students and we feel with the right know we can implement this same model to Riverwalk.

Turner Riverwalk clearly cannot change the formation of their stores but can offer La Sierra University students the same type of amenities that University Village offers UCR students. We feel that with better word of mouth, better advertising, and with all shops working in unison much like University Village that Riverwalk can be La Sierra’s area for college students to congregate. There is a lack of recognition of

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the name “Turner Riverwalk” and as such we need to focus on creating brand awareness. The following sections provide further details about our market study, the demographics, trends, SWOT analysis, and keys to success in the macro/micro environment.

Market Summary

Turner Riverwalk’s market consists of both business users attempting to find a lucrative location in the city of Riverside and a consumer market that consists of nearby residents especially La Sierra University college students. The particular segments being targeted are first and foremost college students, local residents, and possible entrepreneurs in the healthcare as well as the retail industry.

Market Demographics

Turner Riverwalk focuses on both the consumer market and business market. It should specialize in a target consumer of the normal college student and any business that will bring in further patrons to their shopping center.

Consumer Market

Within the consumer market, the primary target is the normal middle to upper-income college student. This target market often varies incredibly from individual to individual but for the most part many have a lower income than most normal consumers. The key to this market is they are often strapped for time and use much of their income on school related activities. It would be most profitable to offer things such as Wi-fi, study areas, and quick food to increase consumer loyalty. The secondary market of residents would be drawn if the area became popular and

word of mouth spread of a great place to shop. The primary age range we are looking to attract is from 17-25 with other residents coming because of the atmosphere.

Business Market

Within the business market, the primary target is finding willing entrepreneurs to take some of the empty store fronts that will in turn attract more customers. The problem begins in the fact that as a whole, Riverwalk is not seen as a lucrative place for business and finding willing entrepreneurs is easier said than done. It will take showing that the new model for Riverwalk will be successful and that shops will be profitable. Secondly, once a series of entrepreneurs decides to take the real estate and customers are flowing through the premise a healthcare provider must be found to take the medical building. The order of entrepreneurs vs. a healthcare provider is not set in stone but we feel that with the growing competition from the adjacent Kaiser Permanente a health care provider would

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want to see established results before coming to the shops. The series of statistics we have taken from La Sierra Students shows that more modern amenities such as Yogurt which received 80% of our student vote and Wi-fi which received 76% percent of the vote would make the shops more appealing. The most appauling stat is that14% of students have never even heard of Riverwalk. Statistically because of the total revamping of Riverwalk’s advertising a certain market trend cannot be produced but the numbers from our research show that in all likelihood a focus towards students will lead to consumers. These consumers would lead to more businesses wanting to be a part of Riverwalk.

Market Needs

Our target consumer the college student has two real needs that encompass the entire college experience. They need to be able to 1) maximize time and 2) experience an inviting atmosphere. The first measure entails that things such as store openings follow their needs. The average store opening at Riverwalk is 11am which does not take into the early and late night of a normal college student. Students are usually up early and stay up later than most people in the area. The average close time of the shops is 11pm when most college students are admittedly up late studying. Students would love a place to study at all hours that has Wi-fi, groceries, ATMS, and even prescriptions yet all these amenities fall short at Riverwalk. There is no unified way to get around the shops in a time productive manner for a student. We feel that if all stores worked in conjunction with one another much like the Galleria at Tyler and offered longer hours students would feel at home studying at the shops. It would also provide the second need which would

be a better atmosphere as students would be surrounded by other students. This is the secret formula of University Village, if students are catered to naturally a better atmosphere will be created making better word of mouth.

We feel that the stores must simply implement more ways to maximize student time at the shops creating a consumer with loyalty to Riverwalk. A student who is treated well at the shops will most likely continue to frequent them and bring others to the area. If all stores were to forget their competition with one another and focus on creating loyal student customers through discounts as well as student interaction through on campus ventures, Riverwalk would most likely thrive. SALSU the student union at La Sierra University as well as faculty events could prove lucrative to helping the La Sierra community recognize that it is in their best interest to visit Turner Riverwalk. The business community would have to follow suit if clearly students frequented the area because of all the changes made for the target market. It is very clear that students are unaware of Riverwalk but with the right type of advertising as well as directive things would improve in the area.

Target Market Growth

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La Sierra University has only been established as a University since 1990 and because of this an actual growth trend or amount of consumership is hard to predict. The true actuality of the situation is that the number of students at the University has increased exponentially in the last year. The school for the first time ever has topped 2,000 students and this is a record for attendance since the 2003 year when approximately 1,900 students attended. The school’s budget projections are through the roof according to the official La Sierra University (cite http://www.lasierra.edu/index.php?id=3738) and with all the publicity currently surrounding the school because of graduate and undergraduate programs the school is certain that the number of students will increase in upcoming year. It is without a doubt, a lucrative market and the risk is seemingly minimal as La Sierra will at least continue to replenish students creating a consistent market for Riverwalk. The only down-side is the fact that students are often unpredictable as they follow trends while competition from other strip malls may also contend with Riverwalk’s appeal, but this appeal can be increased if time is invested in creating a “full” student experience. The real immediate weakness to the plan is how much money can be invested to make this change in experience.

SWOT Analysis

By using the SWOT analysis, various areas of the Turner Riverwalk project could be analyzed into more details. Turner Riverwalk has several strengths on which it could build on and weaknesses that could be improved. There are several opportunities for Turner Riverwalk to undertake and threats that could harm the competitive advantage of the business.

Strength

Good Location: Turner Riverwalk is within driving distance to the nearest highway and has a nearby recreation park.

Facility been built: The buildings are new and it is a conducive area for customers.

Close proximity to University, residential, and active adults home: Potential

customers to the retail business. Provide state-of-the art facility: The buildings are equipped with the latest

technological infrastructure.

Weaknesses

Lack of Awareness: Most people area unaware of the existence or the purpose of the Turner Riverwalk.

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Insufficient or inadequate marketing campaign: The developer has not done enough advertisement or decoration in order to promote the plaza.

Vacancy of buildings: The vacant buildings do not bring revenue for the developer and gives a bad image for the area.

Unwilling to add changes to current buildings: Inflexibility of the developer to add or make changes to the original buildings.

No anchor stores or potential stores to attract customers: Lack of key stores that would generate a stream of loyal customers.

Premium leasing rates: The leasing rates are higher as compared to other plaza.

Poor building layouts: For example, the hotel is located inside the plaza, behind all the major buildings.

Opportunities

Economic recovery: The pickup in economy should improve the current condition of the businesses in the plaza and the possibility of attracting new tenants.

Growth in certain business sectors: Certain businesses that are expanding might be interested in finding a place to lease.

Increase in consumers: If new retail stores were being introduced or the current stores offered better deals, more customers would be coming in.

Threats

Other plaza offering better terms: A potential threat that might draw current or potential customers away from Turner Riverwalk.

Current customers moving after contract is over: A possible threat as current customers might look for better lease terms.

Close proximity to hospitals, supermarkets, and shopping malls: Fierce competition from places that might offer similar services as the plaza.

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Competition

The competitors of the Turner Riverwalk Plaza would be compared based on the location, lease rates, building class, lease type, and year built of the office, medical, and retail buildings. By comparing Riverwalk Plaza with similar types of buildings, it could be benchmarked against the industry standard.

Retail Competition

Riverside is a hotbed for several businesses because of the high amount of income for normal residents. The main competitor as explained above for the Riverwalk shops is the Galleria at Tyler. Vendors and merchants located around it are left to fend for secondary business that may be drawn from the mall or that might see stores in passing. Riverwalk is not visible from the Tyler Mall meaning it cannot even get this secondary market that seems to thrive several businesses visible from the Galleria’s location. It is therefore, very important to spread word of mouth for the Turner Riverwalk just to stay competitive. The mall offers every amenity that a college student would want especially the maximization of time. It has Wi-Fi, food, valet parking, and even a place to take one’s children while working. It dominates the local area in terms of sales and is one of the most known locations in Riverside. The stores all work together and it creates an incredible product.

Riverwalk will not topple the Galleria at Tyler and must instead attempt to be competitive with the nearby smaller retailers for the secondary market created by both the Riverwalk’s traffic and a keen marketing sense. There is enough room in the market for two primary retailers but Riverwalk must make itself that second retailer. First, Riverwalk must control the La Sierra University market and then somehow promote itself enough to defeat all the secondary strip malls in the area. It is the maximization of convenience that no other strip mall has cornered that will set Riverwalk apart. Riverwalk just needs to be able to offer some of the best amenities in comparison to other areas vying with the Galleria at Tyler. The model created by the University Village will allow for Riverwalk to be highly successful if they have a consistent customer base from the University.

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Business Office Competition

Turner Riverwalk

Downtown Riverside

Ontario Business Centre

Lease Type Modified Gross Full Service Modified GrossBuilding Class A A AYear Built 2008 1984 2004Location Close to residential

& LSULocated in Dowtown & close to UCR

Located in the business district

Rental Rate: SF/Month

$2.85 $2.00-2.35 $1.15-1.35

Rental Rate: SF/Year

$34.20 $24-28.20 $13.80-16.20

From the table above, it can be seen that the lease rate of Riverwalk plaza is considerably higher than its competitors. The building class of all the buildings is identical, only the year in which they are built is different. Furthermore, the competitors of the Riverwalk plaza are strategically located in a busy hub. It would be tough for Turner Riverwalk plaza to attract more tenants unless it makes changes to its price policy.

Medical Business Competitors

The Medical Park at RiverwalkRiverside, CA

16465 Sierra Lakes ParkwayFontana, CA

Corona Medical Arts PlazaCorona, CA

The Village Medical CenterRiverside, CA

Lease Type NNN Modified Gross NNN NNNBuilding Class A A A AYear Built 2008 2006 2010 2010Location Located near 91

& 15 Freeway, residential, businesses, schools, & hospitals

Located near 210 Freeway, residential, golf club, & hospital

Located near 91 & 15 Freeway, residential, school, & hospitals

Located near 215 Freeway, residential, & businesses, hospital

Rental Rate: SF/Month

$2.15 $2.35 $2.00 $2.00

Rental Rate: SF/Year

$25.80 $28.20 $24.00 $24.00

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The above table shows that the lease rate of the Medical Park at Turner Riverwalk is considerably competitive in terms of pricing with similar building qualities. The building classes are identical and the years built and completions are roughly within the past 4 years. The competitors of Turner Riverwalk Medical Park are strategically located in areas with expected medium to high population growth, high traffic, and near major hospitals. In order to attract perspective tenants, Turner Riverwalk could negotiate lower pricing or other promotional deals to make the Medical Park more appealing.

Product Offering

Our product offering are office, medical, and retail building spaces, with the following features:

Turner Riverwalk

Situated on 73 acres in Western Riverside and Corona market A one million-square foot premier mixed-use business development that

incorporates high quality office, medical office, R&D, and flex industrial buildings Employee-oriented amenities including meandering trails in a scene setting of

lakes, streams, outdoor gathering areas, gazebos, and basketball courts. Only a few minutes away from the 91 and Interstate 15 interchange Cross commute accessibility

Office

One of the largest master-planned office campuses in the Inland Empire Approximately 500,000 square feet of newly constructed office space Two 4 story Class “A” office buildings with the latest in technology and design Office buildings are visible from the 91 Freeway but set in the serene award

winning landscape environment of Turner Riverwalk Class “A” office space for sale or lease from 1,300 to 200,000 square feet

Medical

Eight state-of-the-art medical buildings for a total of 100,000 square feet of medical office space

Fully customizable suites in phase II ranging in size from 1,300 to 20,000 square feet

Array of ownership options: purchase, lease, or lease-to-buy Two 2 story buildings conveniently located within walking distance to the Shops

at Riverwalk and the Hampton Inn and Suites Hotel

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Located with convenient access to Riverside Community Hospital, Corona Regional Medical Center, Kaiser Permanente of Riverside and Parkview Community Hospital

Strategically located in close proximity to La Sierra University, senior housing developments, and over 2,300 new housing units

Retail

Newly completed Shops at Riverwalk Approximately 100,000 square feet of upscale shops, high quality restaurants,

and a 132 executive hotel Set among the award winning lushly landscaped and park-like settings of Turner

Riverwalk

Keys to Success

A major key to success in the marketing of Turner Riverwalk is the proper implementation of an advertising campaign. Turner Riverwalk is one of many choices for the consumer markets and business markets.

The second key to success is the proper promotion of these building spaces that are vacant as well as the ones that are in use.

Critical Issues

Turner Riverwalk faces several critical issues:

Increased competition Gradual recovery of an economic recessionPossible escalating costs to meet certain requirements for buildings

Macroenvironment and Microenvironment

Macroenvironment: According to the 2010–2011 Southern California economic forecast, certain industries are expected to grow despite the slowdown in economy. The outlook for Riverside-San Bernardino County shows that the Health services, Educational services, and Finance & Insurance are the only industries that would create new jobs. As consumers spending are starting to pick after the recession, retailers are showing positive growth. Hence, the macroeconomic environment is showing signs of growth despite the slowdown in economy.

Microenvironment: Factors that are likely to affect Turner Riverwalk include competitors and customers (consumer and business)

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Marketing Strategy

The marketing strategy is to design a plan that would support the future success of Turner Riverwalk Plaza. Furthermore, this strategy would create awareness and image while sustaining the long-term growth of the business. Through the use of the marketing mix and other tactics, it would reach out to the targeted market segment and educate them on the benefit and value of the product. Due to the budget constraints, we would reach out to our targeted segment through magazines, newspaper advertisements, flyers, and personal marketing. In the next section, it would explain the mission, marketing and financial objectives, target markets, positioning, strategy, marketing mix, and marketing research plan.

Mission

Our mission is to promote the long-term success of Turner Riverwalk Plaza by creating the much-needed image and awareness of the product. This plaza offers state-of-the art facility that is conveniently located within close proximity to a residential, highway, and a university. There is a high potential for growth for this Plaza if we could build on its competitive advantage and promote it.

Marketing Objectives

Create awareness of the product and build on its image. Attract targeted market segment into leasing the buildings. Create a student-centered lifestyle in the shops area. Develop a loyal stream of consumers.

Financial Objectives

Develop an affordable marketing plan. For the 1st and 2nd year, attract tenants through aggressive promotion of lease

term. For subsequent years, generate sufficient revenues for developer.

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Target Markets

Retail Target Markets

On the consumer side, the target market is the normal La Sierra college student who needs a place that maximizes their time in terms of food, study, and leisure. These consumers prefer trendier places to reside that look to cater to them in things such as internet connectivity and affordability. They are extremely picky in the sense that they have several options but other than the University Village near the University of California Riverside, no other strip mall takes the time to make their experience beneficial to their lifestyle.

The business market, that we would target in terms of becoming retailers are one’s that we feel could not only afford the rent but would be willing to work with the other retailers already on site. The only way Riverwalk would survive is if collectively all shops worked as one to get students to come to the area. Businesses would all love to be a part of such an expanding market but selectivity would allow for the new entrepreneurs to buy into a system much like University Village. We are looking to bring in a healthcare provider that would use the whole health facility and entrepreneurs with the right type of products for students. It would be an ideal situation for any retailer if the student market becomes cornered.

Business Target Markets

For the office buildings, the target market is businesses that specialize in the service industry. The size of the business is generally small to mid-sized company. According to the 2010–2011 Southern California economic forecast, certain industries are expected to grow despite the slowdown in economy. The outlook for Riverside-San Bernardino County shows that the Health services, Educational services, and Finance & Insurance are the only industries that would create new jobs. Furthermore, with the new Financial Regulation & Health Reform being in placed, there would be a need for more services in areas such as Accounting and Law. Due to the increase in infrastructure projects in the State, there is a demand for Architecture & Engineering firm. So, the target markets for the Turner Riverwalk office buildings are the Educational, Finance & Insurance, and Business & Professional Management businesses located in Inland-Empire.

Medical Target Markets

For the medical office buildings, we have separated and categorized the targets on the consumer side and the corporate business side. On the consumer side, the primary target markets are upper-income private practice medical professionals and medical specialists from hospitals and mid-size medical groups. We target these individuals who need practicing space or expansion needs. These consumers would prefer a competitive low-priced lease or sales tag in an area with high demand for specialists and reasonable population growth. On the corporate business side, the target markets are mid-sized medical groups to large-sized hospitals who want to

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expand their service area. These are buyers or leasers who would want to expand their services away from their primary service location or would likely start a new medical group.

Positioning

Retail Positioning

Using the correct set of advertising and changes to the area, we are positioning the Turner Riverwalk as the most college student friendly area near the Galleria at Tyler. We are focusing the ability for students to make it a one stop place to shop as the key and showing that all students will maximize their time on the premise.

Business Positioning

Turner Riverwalk Plaza offers Class A office buildings that is equipped with state-of-the art facility which could accommodate the need of the customers. The office building has a stunning design and is currently one of the larges office campuses in Inland-Empire. Furthermore, it is within driving distance to the freeway and has nearby amenities. The office campus of Riverwalk Plaza differentiates itself from the competitors by providing superior values at a convenience location.

Medical Positioning

In utilizing the location and the availability of different types of building spaces within Turner Riverwalk, we are positioning the medical office buildings as the most convenient, modern, resourceful and versatile buildings for consumer and corporate business use. We are positioning our focus on these reasons:

Convenience: strategically located with access to major surrounding hospitals (Riverside Community Hospital, Corona Regional Medical Center, Kaiser Permanente of Riverside, and Parkview Community Hospital), near major freeway interchanges (91 Freeway and Interstate 15 Freeway), and within a mixed use business development of Turner Riverwalk (Shopes of Riverwalk and Hampton Inn)

Modern: state-of-the-art medical buildings with a modern design setting Resourceful: strategically located within newly developed community and close

proximity to schools (La Sierra University, La Sierra Academy, La Sierra High School, and California Baptist University), population growth within the area is expected to increase 7.3% in 5 years

Versatile: fully customizable suites ranging in sizes from 1,300 to 20,000 square feet, different options of ownership (purchase, lease, or lease-to-buy).

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Strategy

Retail Strategy

Because of the intensely competitive nature of the market within the region, our most clear strategy is to make sure that we corner the La Sierra student market. It is an expanding market and can prove to be quite lucrative. The best way to tap that market is to offer things that no other area can offer other than the nearby Galleria at Tyler.

This includes:

Internet access ATMs from major banks Longer Store Hours Earlier store openings Student Discounts Student Coupons Riverwalk wide offers More Places to Study Convenience

Business Strategy

In order to attract businesses to the Turner Riverwalk office buildings, various marketing strategies should be implemented. The strategies would differentiate Turner RiverWalk from its competitors and draw potential customers.

Advertising in the Inland-Empire business magazines would expose Turner RiverWalk to businesses that might be interested in a finding a place to lease.

Advertising in the local education magazine would expose Turner Riverwalk to institution or private educator that might be interested in finding a place to lease.

Advertising in the Inland-Empire newspapers classified section would cater to a wider range of customers that might be interested in finding a place to lease.

More awareness to be done over the Internet by promoting the Turner Riverwalk website and making it more interactive for possible customers.

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Medical Strategy

There are new competitive opportunities which will arise from new health care reforms and the changing demographics of baby boomers. Hence, there will be a growth in the medical care industry as more health care will be available to new patients. In order to attract the attention of consumers and large businesses, strategic adverting should be implemented that would promote Turner Riverwalk Medical Park and its amenities that are available in the area. Some suggestions in relation to advertising would include the following:

Websites: using internet websites (i.e. loopnet.com) that list the information about Turner Development and/or Turner Riverwalk Medical Park

Internet/Mobile Phone ads: advertisement shown on various websites that is relevant to new development, medical offices, medical industry related, etc.

Yellow pages: used for local coverage, wide reach, and low cost in terms of advertisement

Newspapers and community ad postings: using newspaper and community ad postings can get a good local market coverage

E-mails and direct mails: using this type of advertising, we would gain the advantage in no ad competition from other competitors. The reader would be more aware of Turner Riverwalk.

Billboard signs and outdoor signs: using signs near high traffic and close proximity of Turner Riverwalk Medical Parkway.

Magazines: advertising through magazines mean high geographic and demographic selective. This could bring more attention to Turner Riverwalk by those aspects.

Real estate: using real estate could help in advertising through agents which may have connections in other areas around the state and country.

City commerce: listings of newly developed areas and vacant buildings that is available. Consumers and Businesses can look into these listings to find out more information

Community/County fairs: bringing business and consumers together at a location for potential growth and knowledge base of Turner Riverwalk.

Conferences: using conferences by real estates and health organizations to offer information.

Hire a marketing firm: using an external source to do help advertise.

Marketing Mix

The next section is the marketing mix, where different tactics would be suggested and implemented for the Riverwalk Plaza.

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Product

Turner Riverwalk Plaza offers three different types of buildings that cater to the business, medical, and retail customers. The plaza is a well-designed business park with amenities such as a water park, fountains, outdoors tables & benches, and beautifully landscaped environment. Furthermore, there is adequate parking space throughout the plaza.

The two Class A four story towers is equipped with the latest technology that could accommodate the need of the business customers. The space for lease or sale ranges from 1,300 to 200,000 square feet in the Business Towers. Lastly, the office building has a modernistic design and is currently one of the largest office campuses in Inland-Empire.

The Medical Park of Riverwalk is a state-of-the-art facility and has a total of 8 buildings for the medical space. The buildings are two stories high and the size of each suite ranges from 1,300 to 20,000 square feet. It is also within close distance to the Hampton Inn & Suites Hotel and the restaurants at Riverwalk Shops.

The Shops at Riverwalk offers a wide range of retail services in the area. Currently, twelve out of the twenty-one suites are occupied with restaurants, a fitness center, a physical therapy, a spa, and a nail shop. The space for lease ranges from 1,002 to 1,434 square feet in the retail suites.

Place

Turner Riverwalk Plaza is situated in an area where there is potential for future growth. It is nearby the 91 Freeway and the estimated traffic count per day for vehicles passing by Riverwalk Parkway and Collett Avenue is around 37,630. Furthermore, the plaza is adjacent to La Sierra University and the Esplanade Apartments. The plaza is also within driving distance from the surrounding residential homes and the new Active Adults Apartments. The estimated population within a five-mile radius from the plaza is 228,553 with an average annual income of $ 64,354. From a study done being conducted by the developer, the population within the 92505 area code is expected to grow by 3.6% in the next five years. As for Riverside County, the growth is 10.6% and 1.3% for the State of California. The plaza is located nearby four hospitals such as Parkview Community Hospital, Kaiser Permanente, Riverside Community Hospital, and Corona Regional Medical Center. Lastly, the surrounding area of the plaza has amenities such as a water park, fountains, outdoors tables & benches, and beautifully landscaped environment.

Pricing

Retail Pricing

The idea of pricing for the retail aspect of Riverwalk, is clearly up in the air as it would depend on how much cohesion would take place among businesses. The businesses currently residing in the area must buy into the idea that they must all

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work together to corner the student market. It would take an overall price decrease and the ability to have area-wide savings. All retailers must work to use their resources to band together in the most important aspect of the situation which is advertising. Riverwalk must market itself as an experience and as such the benefits for all stores involved would lead to more customers. It is imperative that all stores buy in and the benfits would be great as advertising expenses would be lessened by all involved. Market trends and comparisons are not available for the region but because of the rapidly expanding La Sierra University population it would undoubtedly lead to more customers if done effectively.

Business Pricing

The lease rate of the Turner Riverwalk office buildings is higher as compared to its competitors. The annual lease rate for Riverwalk office building is $34.20 per square foot while in Downtown Riverside it would cost $24-$28.20. It would be tough for Riverwalk plaza to attract new tenants as the competitors are strategically located and are offering attractive prices. In order to be competitive in this field, Riverwalk plaza should look at the option of reducing its price or matching to that of the competitors. Apart from the reduction of lease rate, Riverwalk plaza could offer promotional value to its current or prospective tenants.

Medical Pricing

The lease rate of the Turner Riverwalk Medical Park buildings is priced competitively when looking at other competitors with similar qualities and amenities. The location and the amenities that the Turner Riverwalk offers has an advantage over other competitors in that the location is just walking distance to The Shops at Riverwalk and the Hampton Inn Suite. Turner Riverwalk could have the option to negotiate lower pricing policies to help attract new medical businesses. Another option is to formulate a promotional strategy with their pricing should Turner Riverwalk decide to keep their current pricing.

Promotion

Consumer Promotion

The main promotional objective is to get students to have a higher brand awareness to the name “Turner Riverwalk” as it does not even seem to register to some La Sierra students. We would need a collective effort from Riverwalk to work with SALSU and to have things such as emails/flyers to give to students just to know it exists. Student discounts are the only way a student would look twice or if the promotion was to focus on the type of needs that student’s have on campus. It would take messages filled with Wi-Fi, longer hours, earlier openings, and student success that would entice a student just to go the premises. Signs, flags, and even brighter colors could be used to catch the eyes of students passing the area. It would just take some capital as well as a united Riverwalk for these types of ideas to take fruition.

Business/Retail and Medical Promotion

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In order to attract new tenants into the Riverwalk Parkway plaza, the developer needs to promote heavily by offering attractive leasing terms. By changing the current lease terms and making it more favorable towards the tenants, it could potentially draw more tenants. This Plaza offers superior buildings and is strategically located in a high-growth area, the only factor lacking is price promotion. Below are some recommended lease terms in which the developer might choose to undertake.

Lease Term A

New Tenants

Lower current lease price by 35%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 8 -10 yrs. 1st year: Offer Free Rents. 2nd year: Offer Free Rents. 3rd year: Start Full Payment.

Current Tenants

Lower NNN Fees. Lower current lease price by 20%. Duration of Lease Term: Unchanged.

Lease Term B

New Tenants

Lower current lease price by 25%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 5-7 yrs. 1st year: Offer Free Rents. 2nd year: Free rents for the first six months and 50% payment for remaining

six months. 3rd year: Start Full Payment.

Current Tenants

Lower NNN Fees. Lower current lease price by 15%. Duration of Lease Term: Unchanged.

Lease Term C

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New Tenants

Lower current lease price by 15%. Lower NNN Fees. Higher Improvement Allowances. Duration of Lease Term: 3-5 yrs. 1st year: Free rents for the first six months and 50% payment for remaining

six months. 2nd year: Start Full Payment.

Current Tenants

Lower NNN Fees. Lower current lease price by 10%. Duration of Lease Term: Unchanged.

By offering attractive lease terms, it should attract tenants that would be wiling to stay at Riverwalk Plaza for the long duration. The more favorable the lease term, the longer it would be for its duration. The developer should generate adequate revenue from the long-term investment of the tenants.

Marketing Research

The marketing research is conducted in order to support the marketing plan.

Retail Research:

Business Research: According to the 2010–2011 Southern California economic forecast, certain industries are expected to grow despite the slowdown in economy. The outlook for Riverside-San Bernardino County shows that the Health services, Educational services, and Finance & Insurance are the only industries that would create new jobs. So, the target markets for the Turner Riverwalk office buildings are the Educational, Finance & Insurance, and Business & Professional Management businesses located in Inland-Empire. From the research, it indicated that the lease rate of Riverwalk plaza is considerably higher than its competitors. In order to be competitive in this field, Riverwalk plaza should look at the option of reducing its price or matching to that of the competitors.

Medical Research:

Financials

Ever since the completion of the Turner Riverwalk Plaza in 2008, a huge majority of the main buildings have been vacant. The financial goal is to gain new tenants as vacant buildings would not generate revenue for the developer. Due to the current economic recession, Turner Riverwalk has been hard pressed to find viable tenants for the buildings, making it impossible to create a valid break-even

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analysis that would be nothing less than speculation. After corresponding with the developer, it was clear that they rather have any type of tenant as oppose to cutting their losses with a break-even. So, the main focus of this marketing plan is to attract several tenants and in the long run draw more instead of leaving the buildings vacant.

Sales Forecast

If the marketing plan proved to be a success by drawing more tenants into Riverwalk Plaza and transforming the shops into a student-centered hub, it would magnify the image and atmosphere of the Plaza. With an improved image, there is better prospect for future tenants and it would draw more consumers to the retail shops.

Marketing Expense Budget

The marketing expense would be spent on the research, advertisement, sales promotion, events & experience, public relations & publicity, and aesthetic improvement of the Riverwalk Plaza.

Controls

Implementation

Marketing Organization

Contingency Planning

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Works Cited

"California QuickFacts from the US Census Bureau." State and County QuickFacts. Web. 01 Dec. 2010. <http://quickfacts.census.gov/qfd/states/06000.html>.

"Healthcare: Medical Office Growth Is Revitalizing a Moribund L.A. County Commercial Real Estate Market." BlackSwan Zine. Web. 02 Dec. 2010. <http://blackswanzine.com/2009/09/08/healthcare-medical-office-growth-is-revitalizing-a-moribund-l-a-county-commercial-real-estate-market/>.

"LAEDC - Economic Information." Los Angeles County Economic Development Corporation. Web. 03 Nov. 2010. <http://www.laedc.org/reports/ Forecast-2010-07.pdf >.

LoopNet - #1 in Commercial Real Estate Online. Web. 09 Nov. 2010. <http://www.loopnet.com/>.

Mueller, Mark. "Medical Offices Seeing More Leasing, Discounts on Sales | Orange County Business Journal." OC Homepage | Orange County Business Journal. Web. 05 Dec. 2010. <http://www.ocbj.com/news/2010/aug/08/medical-offices-seeing-more-leasing-discounts-sale/>.

Riverside, California | City of Arts & Innovation |. Web. 01 Dec. 2010. <http://www.riversideca.gov/>.

SIOR. Web. 05 Dec. 2010. <http://www.sior.com/data/files/Marketing_Bergsman.pdf >

Turner Riverwalk - A Unique Business Community. Web. 12 Nov. 2010. <http://www.turnerriverwalk.net/>.

 University Village. Web. 05 Dec. 2010. <http://universityvillageriverside.com/>.

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