Why branding matters in property

By PUTERI KAARRIENA 

Branding is one of the vital aspects of any business be it large or small, retail or B2B. With an effective brand strategy it will give the firm a major edge in the increasingly competitive markets. Academics and marketers have unanimously agreed that the evolution and origin of branding has been moved from a commodity-driven model to a value-driven model. The identification system used by consumers was designed to show ownership. It is a tool to navigate their way through the massive offerings of common goods. This allowed them to identify the best products available in the market, and empowers them to repeat the preferred purchase. The concept of branding began to take on a new meaning in the late 60’s and early 70’s. This included a larger concept of image and values. It was pictured in a Harvard Business Review article written by Al Ries and Jack Trout and later it was authored into a book by the same title: POSITIONING: The battle for your mind. The notion is not about the product superiority that mattered but rather the consumer’s perception of a certain brand that cemented the road to success.

In a sense, the most important perhaps, is that a brand is a promise. By thinking some of the top brands such as McDonalds, Apple and Coca-Cola it is immediately embedded what are the products or services they associate with and offers. A promise, look, personality and attributes eventually obtained by a special patina of “me” appeal, when purchasing a certain brand it says many things about the purchaser. For example Apple has that certain patina which lead to sub-brands like the iPhone and iPad which acquires certain aura of the patented brand. This concept is labeled “brand positioning” and to date it still remains the standard for developing successful brands. The branding role has turned increasingly important in the property industry and is a driving force in many other industry as well. Branding should no longer be looked at as another marketing gimmick but a full fledge force in spearheading any strategic planning in any property companies.

When a property company is able to achieve a branding status, they will be able to enjoy a larger market share and brand equity in the current competitive environment.
Branding plays a major role in the initial stage with the buyers’ experience. It is a lifestyle that is being sold, which creates an aspirational life that the buyers’ would want to be a part of. The brand must be appealing to the target audience. Therefore branding in the property develop- ment is catching up at a very fast pace. However from a different prospective, it is a long-term purchase with a much higher financial investment and maybe prone to brand loyalty.

A careful consideration is needed in branding especially on developments with a wide range of properties, for example in a mixed township to appeal towards a variety of demographic.
According to Fishwick (2005) there is an increasing call to have real estate sales agents “brand” themselves. A brand is more in depth than just a name or icon, it is a reflection of the imagery used from the typography and the style and mood of the photography and the color palette used. The need to reference current design trends with the architectural style of the properties being built, the geographical location and the brand guidelines of the property developer must work together and blend seamlessly. For example EcoWorld

Development Group Berhad came out with the tagline “Creating Tomorrow and Beyond” projects themselves beyond builders and would want to change the world with eco developments creating innovative futuristic developments for the new generation with advanced lifestyles.

Dongtan, located near Shanghai and the New Songdo City in South Korea has both integrated branding in their marketing. For the Palm Jebel Ali Resort in Dubai under Nakheel Properties, they have placed a special branding department dedicated to brand the projects on-site as branding is the major driving force in their project development and marketing as stated by Walsh (2006).

According to Knight Frank’s Branded Developments report, developers can increase profits by around a third by building “branded homes” as branded developments are paving the way in terms of price growth in the prime global residential market. While the main city markets from around the world has seen the prices rise by an average of 15.5%, outperforming mainstream markets. Branded residence on the other hand has outperformed them. Hitchcox explains that people identify themselves with the development and the community they are about to move into. It is buying a lifestyle that will enable them to interact with likeminded people.

 Every real estate product is unique and so is the position of each purchasing individual. Many considerations have to be taken into account before the final purchase decision is made. The developers are well aware that above all, the developers brand is important. It is vital to the developers to have solid followings on their repeated purchasers. In order to do so, a high standard of services and products should be of high finishing qualities and product delivery should be on time, and an initiative to organise functions for the community to connect with one another and to sponsor public events by giving back to the community will enhance their brand even more. In return, purchasers are willing to pay a much larger amount for the services.

The best brands are built on strong ideas, ideas that everyone can commit to and can be delivered upon. The brand needs to permeate the entire organisation, and when an organisation is clean on the brand and the promise can be delivered, it will be tremendously fruitful while building brand loyalty among your customer base.
>> Puteri Kaarriena is working at Malaysia Property Incorporated.