SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

Bachelor of Quantity Surveying (Honours)

Construction Supply Chain Management
(QSB 2433 / MGT 60803)
Assignment (Individual Assignment)

STUDENT NAME

STEWART CHAN KIT HONG

STUDENT ID NO.

0319096

LECTURER

TAY SHIR MEN

DATE OF SUBMISSION

4 NOVEMBER 2016

TABLE OF CONTENT
1.0 Company Profile

1.1 Company Background

1.2 Major Past Projects

2.0 Proposed Project Detail

2.1 General Detail

2.2 Geographical Area

3.0 Market Segmentation

3.1 Introduction

3.2 Aim and Objective

3.3 Targeted Market

3.4 Segmentation Tabulation

3.5 Data Analysis

11

3.6 Development of Project Idea

12

4.0 Marketing Strategies

13

4.1 Rebate and Promotion

13

4.2 Perpetual relationship with Customers

13

5.0 Constraint and Future Development

14

6.0 Reference List

15

1.0

COMPANY PROFILE

1.1

Company Background

TU Property Development is a public listed company in Malaysia involving mainly in

property development. The brand is lay out across the economic regions in Malaysia with 16
development projects in total including new townships, luxury high-rise condominiums,
cohesive commercial developments and green business parks. The Company has
approximately 7,863.5 acres of landbank with a total gross development value (GDV) of
RM79.8 billion.
The Company is wheel by few of the most established industry players in Malaysian
property development with a vision to fabricate the future dominance by a positive and
experienced team. In years to come, it is set to ascend even higher.

1.2

Major Past Projects

TUHaven
This integrated township offers 1,300 acres of life guarantee opportunities to fabricate
an ideal home with a vision to uproar a flourishing community and be pleased by the beautiful
nature to cultivate good life.

Figure 1.1: TUHaven

TUSanctum
This gated and guarded shelter within a short drive from Kuala Lumpur provides a
reviving environment that is closest to nature yet modern at this stage. A rewarding experience
furnishing a conservation and green architecture.

Figure 1.2: TUSanctum

TURoyal

This 1,015 acres of majestic and elegant township compile the exquisite design to
generate an extraordinary timelessness. It bestows a place that is forever elegant and relaxed
as if time itself has stopped.

Figure 1.3: TURoyal

2.0

PROPOSED PROJECT DETAILS

2.1

General Details

TUGreen is a proposed 40 storeys luxurious condominium beside One Utama Shopping

Mall. The vision of TUGreen is to demonstrate a piece of art in the sky and fabricate a unique
and aspirational benchmark of architectural. It takes up to approximately 10 acres coming in 3
layouts to choose from whereby the most luxurious unit comes with welcoming outdoor spaces
within stunningly landscaped courtyard and roof gardens. Facilities includes 50m infinity-edge
pool, children pool, splash pool, Jacuzzi, function room, yoga room, gym and alfresco dining
pavilion. It is safe as 24-hour security is administered.

2.2

Geographical Area

Due to its strategic location beside One Utama Shopping Mall, residence of TUGreen
will enjoy great access to many main roads as it is connected through Kota Damansara,
Tropicana, TTDI, Jalan Duta, Mont Kiara, Desa Hartamas, Bandar Utama, Bangsar, Kuala
Lumpur, PJ, Sungai Buloh, Bandar Sri Damansara and Shah Alam via existing flyovers,
exchanges and highways such as LDP, PLUS and Penchala Link. All the places are within
15km radius where most of it are actually within 5km from the location.
TUGreen is located in Petaling Jaya in which Damansara Specialist Centre Hospital is
just within 5 km away. The Kuala Lumpur Golf & Country Club (KLGCC), one of Malaysia's
premier country clubs sits within close proximity. Adjacent to this is the Bukit Kiara Golf &
Equestrian Country Club Resort, with its wide range of facilities such as indoor and outdoor
tennis courts, squash courts, swimming pools, bowling alleys, polo ground and an equestrian
stadium. The Royal Selangor Club Kiara Sport Annexe and Kelab Golf Perkhidmatan Awam
(KGPA) are also located next to KLGCC. It is places in a location whereby permits 5 minutes
drive to One Utama Shopping Mall, TESCO, The Curve, IKEA, Citibank and other attractions.
Overall, TUGreen is located at a very crucial and strategic site.

3.0

MARKET SEGMENTATION

3.1

Introduction

Market segmentation is the undertaking of splitting a broad market which usually

composed of existing and prospective customers into subsets of consumers also generally
known as segments that display some type of shared characteristics. The aim of market
segmentation is to identify true clients needs, which can be combined together to identify the
best segments on which to focus marketing efforts. The criteria must refer to difference in
demand by each customer group. For example, the needs and requirements of development
directors of retailers are different to development directors specializing in commercial office
buildings. The features of an organizations range of services benefit different clients in
different ways and so organizations must distil the benefits they experience and promote
tailored messages to each segment group.
Basically there are four (4) types of segmentation namely demographic, behavior,
psychographic and geographic segmentation.

Market
Segmentation

Demographic
Age
Gender
Sex
Family
Education
Income

Behavior
User status
Usage rate
Benefits
sought
Occasions
Loyalty
Attitude

Psychographic
Life style
Social Class
Personality

Geographic
Countries
Nations
States
Regions
Cities
Neighborhoods

Figure 3.1: Types of Market Segmentation

Demographic Segmentation
This type of segmentation is the simplest and widest type to be used. Many companies
use it to obtain the correct population in defining their market based on variables. Usually it
relates to age, gender, sex, family size, education, income, races and nationality.

Behavior Segmentation
This type of segmentation divides the population based on their behavior, usage and
decision making pattern. For example, when there are shopping mall, a condominium is built
in term of shopping style.

Psychographic Segmentation
This type of segmentation uses people lifestyle, their activities, interests and opinions
to define a market segment. For example, lifestyle of youngster and elderly are widely
contrasting as to what development are suitable beside a university of a family based location.

Geographic Segmentation

This type of segmentation divides population based on geography. Different geography

the population are placed in may have different needs therefore determining what kind of
development.

3.2

Aim and Objectives

Business Resouce Software, Inc. (1994) mentioned that it is crucial to establish a

category of need that satisfies the customers requirement in term of businesses and individual
consumer. Fundamentally, there are three (3) classifications for businesses that the companys
offering need to satisfies:

Strategic

Class of project offering is important to the enterprise missions,

objectives and operational mistakes that may ruin the companys
reputation.

Operations

Class of project offering affects the general operating policies

and procedures. For example, type of procurement methods to
use, contractors and sub-contractors to approach, suppliers to
advance towards and others.

Functional

Class of project offering deals with a specific function within the

enterprise such as accounting, human resources, plant
maintenance, engineering design, manufacturing, materials
control, etc.

As for individual consumer, there are two (2) classifications namely social esteem or
pleasure and functional.

Social Esteem -

Class of project offering satisfies a purely emotional need in the

Consumer. For example, a luxurious or a low cost apartment.

Functional

Class of project offering meets a functional requirement of the

Consumer such as dwelling.

3.3

Targeted Market

TUGreen condominium development will emphasized on two (2) desired potential

consumers to be specific, the upper class consumer and middle class consumer. The most
luxurious unit with a layout that comes with welcoming outdoor spaces within stunningly
landscaped courtyard and roof gardens are targeted towards the upper class consumer whereby
a more basic layout with a slightly affordable units are aim towards the middle class consumers.
Over and above that, due to its strategic location with all the shopping malls, facilities and
accessibility of road through highways this project also focus on targeting foreigner or
individual with strong investment background to increase the sales.
Overall, the main targeted group are still the upper class consumers as a benchmark to
raise the image of the condominium as a luxurious project. The sales generated comes with a
high return of income but low volume in the market. Hence, middle class consumers are desired
to maintain the sales as a strategy for financial return.

3.4

Segmentation Tabulation

Based on the targeted population in term of upper class and middle class consumers,
the market segmentation can be identified.
As mentioned on top, there are four (4) types of segmentation. With regards to behavior
segmentation, the population depends on the usage and benefit of making the decision whether
to invest on this project. There are various shopping malls such as One Utama Shopping Mall,
The Curve and Ikea nearby the project, hence a dwelling place wise project such as
condominium will definitely be considered.
Moreover, geographic segmentation ignites the population for a dwelling places due to
the facilities and accessible of roads through highways. Due to high price and limitation of
land, a 40 storeys condominium is preferable and profitable as compare to landed housing
development.
Demographic and psychographic segmentation approaches will be tabulated as follows
to identify the potential consumers in a way of recognize their interest and needs.

Psychographic Segmentation Approach

LifeStyle
Interest

Table 3.1: Psychographic Segmentation Approach Tabulation

Demographic Segmentation Approach

o 30 35
o 36 40
Age

o 41 45
o 46 50
o 50 Above

Gender
Marital Status

o Male
o Female
o Single
o Married
o Chinese

Race

o Malay
o Indian
o Others
o Christian

Religion

o Islam
o Hindu
o Others

Nationality

o Malaysian
o Others
o 3 or Below

Family Size

o 45
o 6-8
o Below RM3,000
o RM3,001 RM4,000

Income

o RM4,001 RM5,000
o RM5,001 RM6,000
o RM6,001 Above

Table 3.2: Demographic Segmentation Approach Tabulation

10

3.5

Data Analysis

Based on the demographic segmentation approach tabulation, a investigation is carried

out to determine the preference of the population regarding the layout of the units proposed in
TUGreen Condominium. A data analysis of preference is obtained and classified in Table 3.2.

Assessment Worksheet TU Development

Target Market Segment
Sector
Gender

Marital Status

Family Size

Segment

TUGreen Condominium
2 Bedrooms

Male

3 Bedrooms

Studio

Female

Single

Married

3 or Below

Penthouse

4 - 5 people

6 - 8 people

Income

Below RM3000

RM3001 RM4000

RM4001 RM5000

RM5001 RM6000

RM6001 Above

Table 3.3: Assessment Worksheet TU Development

11

3.6

Development of Project Idea

Following, planning and project development must be well plan in order to save money
and time in the long-range. Professional and experience team must be organized to add value
to the project as it evolves into the building phase. It can be categories into four major steps.

Advance surveying nearby population in the surrounding or public opinion and

facilitating open forums to assess needs and concerns.

Organizing bond initiatives to generate funding for this project.

Generating public interest and recruiting community involvement.

Exploring unique building methods and materials to achieve the goal of this project.

Moreover, the financial team require to access and measure the return of investment to
ensure the project is worth the shot. Tracking the return on investment can help to measure
how profitable a past expenditure has been and evaluate the potential profit of an expenditure
the company may be considering.

12

4.0

MARKETING STATEGIES

4.1

Rebate and Promotion

Persistence builder programs motivate customers to purchase from over and over again
so that the company dont have to work so hard to develop repeat business. To build customers
loyalty, the company offers special extras and incentives to return and purchase more often.
Programs can take many forms that include point accumulation programs, sticker or punch card
programs, communication programs, preferred customer discounts and sales, special
members-only offers and rewards and gift certificates or rebates based on expenditure.
Lower prices for pre-payment or for long-term or till further notice commitments or contract
prices to high volume customers can be offered.
Moreover, strategies to offer price incentives, bonuses, premiums, upgrades, rebates or
credits to customers who guarantee or commit to buy a certain number of times or a minimum
volume in a year are implemented to breed recurring purchase habits and build a perpetual
stream of contact, income and loyalty.

4.2

Perpetual Relationship with Customers

Invest in the relationship with customers and always do and suggest whats right for
customer, regardless of companys own needs to establish a responsive and profitable customer
relationship. Customers can be continual and predictable source of ongoing revenue and
referrals.
Regular newsletters can be a very effective method of keeping in touch with customers
and building closer and stronger relationships. An effective newsletter has a purpose to focused
on the interests of customers and conveys information of value to them. Once customers feel
acknowledge and valued, the right newsletter will result in significantly higher repeat business.

13

5.0

Constraint and Future Development

Although TUGreen is located in a strategic location in Bandar Utama area, the barrier
of entry exists. It is so much easier to sell more to existing customers than to sell to new
customers. It costs five to FIFTY times more to generate a new customer from the cold
market, than to get further sales or referrals from the existing customers. In such, investment
to promote by advertising this project should not be stingy and marketing strategies should be
well planned.
In places like Bandar Utama area, the competitions are strong coming from existing
competitors and new competitors. To gain a competitive edge, competitors might try to cut
down costs or give promotions to attract customers. However, our company has prepared for
this by providing free legal sales & purchase fees and lowering the down payment requirement.
In closing to, it is important that our company takes into account the cultural groups
and focusing on their needs to operate in global stage and retain customers loyalty. After
suitably researching the market, the process of market segmentation in logical and systematic
manner will definitely align with the project and valuable to our company.
TU Development plan to soar even higher in the time to come by going international.
The brand will reach its extend to London, United Kingdom and Sydney, Australia in 5 years
time and aiming for more respected industry players to join the team.

14

References

Philip Collard (2013) Market segmentation in the construction industry. Available at

https://www.designingbuildings.co.uk/wiki/Market_segmentation_in_the_constructio
n_industry (Accessed: 1 November 2016)
Propwall.my (2016) The Greens, TTDI. Available at http://www.propwall.my/ttdi/the_greens
(Accessed: 1 November 2016)
ECOWORLD (2016) Collection. Available at: http://ecoworld.my/company-profile/
(Accessed: 1 November 2016)
Ibilik (2016) KLwall Luxury Condo Near One Utama
http://www.ibilik.my/short_term_rentals/162375/klwall-luxury-condo-near-oneutama (Accessed: 2 November 2016)
Business Resource Software, Inc. (2016) Market Segmentation. Available at:
http://www.businessplans.org/segment.html (Accessed: 2 November 2016)
Robert Callander (2016) 14 Frequency Builder Strategies. Available at:
http://marketingwizdom.com/strategies/frequency (Accessed: 3 November 2016)

15