The following paper aims to provide a synopsis analysis of DAMAC Properties, a real estate business in the United Arab Emirates (UAE). The paper specifically shall endeavor in analyzing how the market function can aid the company in becoming a successful leader in the industry. Additionally, the document shall also focus on segmenting, targeting and positioning aspects based on its products. Principles on BCG matrix and four Ps for marketing as a base for the business.
Mission and Vision
DAMAC property is a corporation situated in the United Arab Emirates. Its purpose is to provide residential, commercial as well as leisure properties across the Middle East. So far, the business has delivered more than 24, 000 homes and has a portfolio of more than 40, 000 units under development (DAMAC Properties, 2018). As such, its vision is to become a leading luxury developer in the region with specificity to the United Arab Emirates.
The marketing purpose is a role which aids a business to identify as well as source potential positive products for the marketplace it operates on and then endorse through differentiating them from comparable products. Marketing function has different concepts that include pricing, product/service management as well as distribution, to mention a few. Marketing function aids the business in promoting its products and ensuring that its marketing portfolio is different from the competition. Inherently, the pricing of the products that the ————————-business provides for its customers and the market are above standards (DAMAC Properties, 2018). High criteria mean that the company only offers high-end products including commercial an residential homes. Pricing is regarded as the crucial aspects of marketing functions whereby setting and interactive value of crops and services which is set at the right level. For DAMAC properties, the least amount of price for residential houses starts from USD 210, 000 with a high amount set at USD 1, 000, 000. The pricing strategy runs parallel with the types of products the business provides for its market. In this approach, the company ensures that its products target a specific demographic (DAMAC Properties, 2018). Due to the pricing, the amount only segments the market based on the amount of money for the products. As such, this means that the business only targets a different type of disposable income that is high maintenance and high income.
Moreover, the aspect of market information management is another aspect of the marketing function. The factor is based on procurement, managing and using info about clienteles want to improve commercial decision making, the presentation of marketing activities as well as defining what will sell. The company’s ability to achieve its mission and vision meshes in the market information management which couples and improves on aspects of pricing and product factor (DAMAC Properties, 2018). Based on its goals, the business ensures that it collects customers feedback is used as a decision-making tool to improve on its strategies as well as goals to provide the best services and products in the market.
Segmenting, Targeting and Positioning
Segmentation is the identification of purchaser needs and segments the market to profit as well as ensure the needs of the customer are met (Schlegelmilch, 2016). In DAMAC properties, the market segmentation is on the three-pronged basis. This includes residential, commercial and leisure-based properties. The reason for segmenting the market into the aspects is to ensure that all accommodation needs of the customers are met individually. According to DAMAC properties, it is market research reveals that most of its customers, high-end customers, are best suited for high-end properties which make up 70% of customers from overseas (DAMAC Properties, 2018). Therefore, the business model places that its segments are based on the demand for high-end properties in the Middle East region as well as associated regions including the United Kingdom.
As such, the aspect of target marketing is pivotal to the business. Target marketing is the evaluation and select target segments. This is done through demand analysis. According to DAMAC Properties, the target segments are based on open and free systems that are found in the United Arab Emirates including government controlled and private sector; strategic location and world-class infrastructure (Schlegelmilch, 2016). These are among the main reasons as to why the business chose high-end customers who are specific about the necessities they desire. From this premise, the company allocates different types of development units that ensure the needs of the customers are met. As such, the business segments that target market into commercial, leisure and residential (Camilleri, 2018). Therefore, the business contributes to its success through positioning. Positioning is the identification of a proposition for each segment. DAMAC properties ensure that its core brand proposition is well acquainted with the customers and target market. For example, the business engages in trade forums from which it provides the world is knowledgeable about the company and its brand. Forums such as The World Economic Forum’s Global Competitive forum and Dubai 2020 Expo (DAMAC Properties, 2018). Moreover, the company, DAMAC Properties ensures its online value is enhanced to show that the customers and market segments are aware of its online presence. The company has a complete presence in social media platforms and has a lucrative website that ensures the customers can access any unit be it commercial and residential.
Products of the Business and Application on BCG Matrix
A BCG matrix is a business planning instrument that is used to depict a business’s brand collection. DAMAC Properties comprises of several products that include residential units, commercial units, leisure units and developmental units (Schawel & Billing, 2018). Each group targets a specific market from which its customers are unique and demanding of certain standards within the Middle East and Europe. According to the BCG Matrix, businesses possess ‘cash cows’ which ensure that a company is profitable (Schawel & Billing, 2018). According to DAMAC Properties, its most profitable entity is the units in development which place the market at a total revenue of USD 6.80 bn. So far, the company has 24, 000 residential homes and 40, 000 developmental units (DAMAC Properties, 2018). Cash cows are the large segments of the market that is capable of innovating new products for DAMAC Properties through product development and diversification of the real estate.
Moreover, the company also offers commercial properties which are mostly located in the Middle East and Europe. This is the ‘star’ portion of the business. Star is a BCG Matrix which is regarded as the portion a company should invest in to enjoy profits. Therefore, the firm does not invest as much in commercial units compared to leisure and residential units. This is portrayed through its website which shows an emphasis on its residential and leisure units compared to industrial units.
The final product is the developmental units. These are the question mark aspect of the business. Question marks are a concept of the BCG Matrix which requires much closer consideration (Schawel & Billing, 2018). The developmental units according to DAMAC Properties are considered as the highest revenue generating units but, the dump-off into the market is steady but not as high as the residential units. However due to the hope that the business’ revenue is highest when it comes to the developmental portfolio. Therefore, the company ensures its strategic investment in the developmental units around the world.
Four Ps in Marketing
The Four Ps of Marketing entail price, product, promotion, and place. The four products of the business include residential, commercial, leisure and developmental units. Based on the four Ps of marketing, the price is the amount the end user is expected to pay for the products. DAMAC Properties manages the different products from which the prices differ significantly. As noted, the developmental units are considered the lowest ranking priced units compared to leisure and residential properties.
The products phase on Four Ps entails tangible goods. The business invests in different units which are the basis of operation and profitability of the company. As mentioned before, products are of four concepts (Todorova, 2016, p. 368). The place, as proposed for the Four Ps of Marketing, entail the place or placement where the customer can access the products. The units are found around the world with specificity to the Middle East region as well as the United Kingdom. To ensure that the business is profitable, aspects of promotion are critical. The communication strategies and techniques provide that the company stays afloat and ahead of its competitors (Todorova, 2016, p. 368). Due to the high aspects of the company to invest advertisements, the business enjoys 7-10% global rental yields compared to other markets at 2-3% (DAMAC Properties).
The paper has presented the case study on DAMAC Properties based on the analysis comparison with models and principles of Four Ps in Marketing, BCG Matrix and segmenting, targeting and promotion model.
DAMAC Properties. (2018). About DAMAC. Accessed 18th March 2018 from https://www.damacproperties.com
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Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer, Cham.
Camilleri, M. A. (2018). Market segmentation, targeting, and positioning. In Travel Marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.