Taylormade/Copernicus services to the Leisure, Hospitality and Real Estate Industries

Contents

1. Target market identification

2. Assessment of market size

3. Concept development

4. Brand development

5. Measurement of purchase intent

6. Unit Mix optimisation6. Unit Mix optimisation

7. Pricing strategy

8. Fine tuning product offering/tradeoff analysis

9. Targeting

10. Positioning strategy

11. Sales forecasting

12. Tracking communications effectiveness

13. A Complete research-led development plan

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1. Target Market Identification

As a first step in any real estate project, we will research existing secondary data in order to identify the components of

demand for residential and commercial real estate in the relevant country/region.

In addition, we will hold brainstorming sessions with key management and/or industry experts to identify:

► From which “feeder” markets may this project source its residential and/or commercial buyers?

Opportunity Search

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► For what purpose (e.g., primary home, secondary home, or investment) will the property be purchased initially?

Longer-term?

► What other criteria (e.g., income eligibility) should be established?

2. Assessment of Market Size

The above will allow us to identify the hypothesized “buyer profile,” and therefore the sample plan for quantitative research. From this we will produce a snapshot of overall market size and the value of specific market segments.

► As part of the Simulated Test Market, respondents will be exposed to stimulus materials to give them an idea of what will be offered. Initially written “concepts” describing the overall project idea will be utilised to explore reaction to several options for the property.

� Descriptions will be developed based upon multiple sources: project team guidance, existing plans and/or collateral materials, qualitative research, etc.

� Competitive “concepts” may be shown as well.

► Examples of candidate positionings for a new mixed use project

• Positioning 1. Feel the Buzz. To young aspirers and new families , XXXX is the real estate development in Dubai that provides the ultimate in excitement, adventure, and energy.

3. Generation and Exploration of “Concepts”

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• Positioning 2. Set the trends. To young aspirers and new families XXXX is the real estate development in Dubai that enables you set the trends in style, fashion, culture, design and technology.

• Positioning 3. Live better. To young aspirers and new families, XXXX is the real estate development in Dubai that offers everything you need for a better balanced, stimulating and healthier lifestyle.

• Positioning 4. The Complete Masterplanned Community. To Young Aspirers and New Families Sabboura is the real estate development in Damascus that has been carefully planned to meet all of the modern living needs of visitors, residents and workers

• Then, we will ask respondents a wide variety of questions about this brand story in order to truly understand what they think about it.

• Overall Impression • “Purchase Intent”

• Likes/Dislikes • Unit Type Preference

• Uniqueness • Perceptions/Ratings

► Subsequently these will be woven into a brand story which ads value and credibility to the original concept and may explain the provenance of the brand and detail all the components – such as shopping, leisure, living and work facilities as well as the details of living accommodation eg units styles/floor plans, pricing cards, geographic map which make the brand story believable. Often a mood board will be used to add a “feel” for the development’s architecture and landscaping.

► Brand story and mood board are often used in research to test out the appropriateness of elements of brand identity such as name and logo

► Taylormade/Copernicus will prepare these materials, in collaboration with its client.

4. Brand Development

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► Based on this concept description, we will ask respondents how likely they would be to purchase real estate. We will use our validated Demand Prediction Model to translate these self-reported responses into estimates of actual, real-world demand (aka “purchase intent”).

Certain will buy (99 chances in 100)

Almost certain will buy (90 chances in 100)

Very probably will buy (80 chances in 100)

Probably will buy (70 chances in 100)

Good possibility will buy (60 chances in 100)

Fairly good possibility will buy (50 chances in 100)

Superior to Alternative Scales

- More discriminating

- More reliable

- Enhances serious thinking by respondents

- Clear interpretation

5. Measure “Purchase Intent”

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► Based on empirical evidence of respondent “overstatement,” we

apply weights� The lower the “self-reported

intent,” the less we believe

it.

Fairly good possibility will buy (50 chances in 100)

Fair possibility will buy (40 chances in 100)

Some possibility will buy (30 chances in 100)

Slight possibility will buy (20 chances in 100)

Very slight possibility will buy (10 chances in 100)

No chance will buy (0 chances in 100)

- Clear interpretation across respondents and researchers

- Reminds us to deal in probabilities rather than “top box ” cutoffs

- Greater validity

► Based on this methodology, we can estimate demand – and the number of leads/contacts it may take to occupy all units.

# Units “Purchase Intent” Contacts Needed for Full Occupancy:

5. Measure “Purchase Intent”

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1000 UnitsRequires 4000+ Leads, among

Target Universe

24% of the target universe will purchase property (if aware and available)

► We also will estimate demand for each of the unit types. Ultimately, we will recommend the optimal mix of units.

Optimal Unit OfferingOptimal Unit Offering

6. Unit Mix Optimization

1 BR 5%

2 BR 10%

3 BR 10%

2 BR 20%

3 BR 15%

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Penthouse 5%

2 BR 10%

3 BR 20%

4 BR 10%

4 BR 5%

► By exposing respondents to several different price levels, we will be able to build a “demand curve,” to calculate “price elasticity,” and to identify the “optimal” price level.

“Purchase Intent”“Purchase Intent”

7. Pricing Strategy

Price Elasticity

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28%24%

12%

8%

Low Price Mod Price High Price High-High

Price

Revenue-Maximizing

Price

-0.5

► We may expose respondents a variety of alternative features, services, amenities, etc. that the portfolio team is considering.

► Then, through a tradeoff exercise, we can “isolate” the impact on demand—and selling price—of each specific option .

34%+10 pts in Demand or

+100K AED in Selling Price

“Purchase Intent”“Purchase Intent”

8. Fine Tuning Product -Trade-Off Analysis

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24%

15%

2 Parking

Spaces

1 Parking Space No Parking

Space

# PARKING SPACES

+100K AED in Selling Price

-9 pts in Demand or -90K AED in Selling Price

► We will identify the most likely buyers of real estate property, and we will profile them extensively, across a

variety of dimensions. These will include demographics, country of origin/residence, buyer type, needs/wants,

and media habits.

► In the end, we will be able to determine which potential Buyers offer the highest Return-on-Investment.

Most Likely Buyers% of Market % of Buyers ROI

9. Targeting - Identification of Most Likely Buyers

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Unique Demographically

Unique Attitudinally

Unique in Needs/Wants

Unique in Media Habits

24% 26%

38%

57%

17%

38%

% of Market % of Buyers

GCC Nationals

Asians

Westerners

ROI

45%

150%

110%

► We can test a variety of different attributes and benefits (or “USPs”), in order to determine how “motivating”

these are to respondents.

� This determination is made by asking respondents how “desirable” each attribute is, but also by seeing which

attributes/benefits truly drive purchase.

� This approach will ensure that rational items are not exaggerated in their importance and, conversely, that the

influence of emotional/aspirational items are not underestimated.

10. Positioning Strategy

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Using our “Brand Strategy Matrix” as a blueprint, we will assess USPs on three criteria, simultaneously, in order to identify the most powerful positioning and communications strategy:

► How motivating is the USP to the target buyers?

► How credible it is for our property to claim?

► How ownable it is (i.e., competing projects are not perceived to already offer)?

10. Positioning Strategy

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Finally it is possible to forecast sales revenues under the “optimal” project offering:

11. Sales Forecasting

No of Units # # #

x

(e.g.)Moderate Pricing Levels $ $ $

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(e.g.)Moderate Pricing Levels $ $ $

+

Additional Parking Spaces $ $

Total Revenues $ $ $ $ $

Taylormade Copernicus can instigate tracking studies to assess the results of communications activities in reaching relative and/or stand alone milestones. Typical factors measured are:

• Brand Awareness

• Share of Top of mind awareness (1st mentioned brand) compared to peer group developers

• Project awareness (compared to peer group project)

12. Tracking Communications Effectiveness

• Project awareness (compared to peer group project)

• Source of awareness (where messages seen)

• Performance on specific image dimensions (% of audience thinking that xxxx is the developer that is most:

o Environmentally responsible

o Has good quality designs

o Provides extensive amenities

o Provides everything needed in one place

o etc

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Taylormade/Copernicus can combine the above services into a comprehensive plan help real estate companies test and refine their projects, and to optimize the respective marketing and launch plans:

Opportunity SearchUsing Secondary Data, Define Market SegmentsQuant research to size those with Potential

Generation of ConceptsQualitative Research among Investor and/or End-Users: to identify unmet needs

Review Competition and Develop Alternative “Concepts” “Joint” agreement of Concepts: Marketing Department, Project Team, and TM/C

Concept Exploration and Refinement•Conduct Qualitative Research among Investors and End Users• Identify Features, Services, Prices, etc. to Test Quantitatively

13. A complete research-led development process

Simulated Test Market and Strategy Optimization

Show “Concept”: (and describe competition too)

Measure “Purchase Intent”

“Trade-off” Analysis Identify Best Configuration of Features

Identify and Profile the Most Likely Buyers

Develop the Optimal Positioning Strategy

Select the Optimal Pricing Strategy

Sales Forecast

Identify Financially-Optimal Offering

Creative Development and Communications

Marketing and communications planning

Develop and test identity options

Develop and test communications ideas

Integrated Marketing and Sales Plan to Attract Investors

Announce/Begin Investor Marketing and Sales

Integrated Marketing and Sales Plan to Attract End Users

Roll-Out end-User Marketing and Sales Plan

Adjustments to plan according to sales results

Tracking study to measure impact of communications

ROI Analysis

Taylormade/Copernicus is a research-driven marketing consulting firm in the business of transforming companies. We provide actionable, customized, and growth-oriented insights, recommendations and programmes, that have changed brand trajectories, career paths, sometimes entire companies and even industries.

We have applied our state-of-the-science approaches for companies with business and consumer targets, resulting in high-return programs and stronger brands. Our services include market segmentation and targeting, positioning, new product research, brand development, guided programme implementation, media optimization, customer satisfaction/loyalty research, and performance evaluation.performance evaluation.

Contact usContact usContact usContact us

Mr. Samer Shahin

President / CEO - Taylormade Group

+971 50 644 6400

Tel: +9714 3351 661

Fax: +9714 3351 771

306 Al-Nakeel Building Zaabeel Road,

Mr. Kevin Storey

Senior Consultant Taylormade

00971 50 558 6260

Tel: +9714 3351 661

Fax: +9714 3351 771

306 Al-Nakeel Building, Zaabeel Road,306 Al-Nakeel Building Zaabeel Road,

P.O Box 397 Dubai UAE

samer@taylormade.ae

306 Al-Nakeel Building, Zaabeel Road,

P.O Box 397 Dubai UAE

kevin@taylormade.ae

www.taylormade.ae