MEDIA MARKET MATTERS: Your brand of real estate
Ivan Vatahov
Can real estate be branded and does it need it? In a series of articles, The Sofia Echo has tried to prove the importance of the brand concept and the benefits a person, an entity or even an entire state could have from its application.
The answer to the riddle of whether branding can be fitted for the needs of real estate is actually hidden in all three of the above-mentioned aspects. In other words, branding in the property sector should be made by and for persons, entities and countries.
Starting with the bigger picture, the national branding of Bulgaria - as a tourist destination, as a second-home spot, as a place for investing money in whatever industry, including property development - is probably the key factor in branding this country’s real estate.
It is clear now that there is an enormous interest towards acquiring property in Bulgaria and it is explained by a number of reasons, including the opportunity to have a second home in a country where prices are lower and nature and climate are suitable for any taste, the possibility to achieve a high yield on the property one buys today and sells tomorrow, and others.
But, is it enough? Is this all that can be achieved by this state in popularising itself as a property-investment destination? Probably not. Maybe the state should also think about spreading good news like safety from criminals, law-abiding citizens, a properly working justice systems, investment in developing infrastructure, and so on.
Naturally, these things have to first be addressed and successfully handled before they could be advertised as existing in Bulgaria. In the words of a PR specialist, “building a positive image of a country is similar to a PR strategy: without the concrete progress behind it, it would not work”.
Bulgaria is expected to join the European Union soon and this is certain to make it even more attractive for property investors. This has already happened in the former communist countries that joined the EU in 2004. Truth, this may solve many of the troubles that the Bulgarian government has in promoting this country.
But after that comes the matter of branding real estate at a company level. And it will be fair to admit that the process is not going smoothly and definitely needs improvement.
Some of the biggest Bulgarian real estate agents have already bent to the force of branding. Sad to say, most of them are parts of or supported by larger foreign companies operating in the sector. Address (and their new venture Forton International), Colliers, and Norman Partners, as well as some locals like Yavlena and Orvitex are among the leading firms that want customers to identify their names with a consistent standard.
Even big local property developers like Bokar, Glavbolgarstroy, Lindner Bulgaria and Sofia Building Company find it honourable to put their names on buildings that they have built or invested in.
Branding might be vital for property companies to compete in an uncertain future, but one of the big problems in assessing its importance is defining exactly what the process involves. On one level, it is a label on a single product.
Business Park Sofia, for instance, is a powerful brand. It offers a perception of a revolution in office location and development. Other examples could be seen in projects for building large shopping malls. They are one-stop-shop places where all kinds of services - from consumer goods to cinemas - can be found, giving out a message about large-scale, comfortable retailing.
But a brand is more than a name. It is a management process. And it involves many tough decisions.
The next stage is deciding whether a brand can be reproduced. Buildings are not like Coca-Cola bottles or a Snickers bar. Providing the same look or feel to an office or residential building, no matter where you are, is neither feasible nor appropriate. Even putting the same brand name on developments has its flaws.
The vital thing about any realtor is to identify the company name with a standard of service behind the product, regardless of whether it sells it or develops it.
This is another aspect of branding, involving a more subtle and complex process than uniformity of labelling. It involves building loyalty so a customer will rent or buy a property because he or she identifies the company with particular treatment.
Proper branding increases the value of any asset, yet many realtors ignore this principal when marketing properties, especially commercial ones.
Similar to marketing a brand, a property should be marketed with a consistent message, in line with the ownership’s strategy for its image and that of the building - from ads in strategic publications, to lobby aesthetics, to the online presence that becomes the front line of communication between prospective tenant and broker.
Owners rely too often on the marketing staff of affiliated brokers or third parties, rather than providing the information and tools necessary to brand their property effectively. Without a permanent marketing presence online, owners are missing an opportunity to increase occupancy and add value.
To properly market and brand a property, an owner needs marketing expertise, leasing specialists and information technology. Unfortunately, the three speak different languages in Bulgaria. And if a potential customer tries to find a website to obtain all the needed information, the miscommunication becomes apparent.
It is difficult to identify a single property website in Bulgaria, even among the ones hosted by the large agents and developers mentioned above, that offers a full scope of services to investors browsing the web.
A step ahead was the launch of websites of some UK realtors, who made quite a lot of money on selling property in Bulgaria. But, even these sites are poor in terms of the number of offers they provide to the customers.
Differentiation is the key to successful marketing in any business. This is especially true on the internet where it is easy to get lost in the vast digital ocean. One of the most powerful ways to achieve differentiation is to create a personal online brand - a unique identification by which the target market will recognise and associate the value of your services.
Applying a well thought-out branding strategy is not only a sure way to set your site apart from the growing herd of agent sites, but also to potentially create profitable business activity.
Owing to ever-increasing competition, differentiation holds the key to success in any business today. This is especially true of the real estate brokerage business.
Since there is no entry barrier, anyone can set himself up as a broker. Personal branding is one way through which a broker can differentiate himself from the crowd.
So what should branding be in the case of brokers?
While marketing and promotions involve sending active messages targeted at selling the product, branding is a slow process. It is about building an image in the minds of prospective homebuyers and tenants and creating the perception that you are the best. In the property brokerage business, branding is the equivalent of your promise to your customers.
Branding takes time; it is designed to entrench you strongly in your customers’ minds. Unlike selling and marketing, it is not about closing a deal and earning fast money through commissions. It is about steadily building your image.
Any real estate agent’s goal should not be to place as many classified advertisements or call as many people as possible. The goal should be to create an image that people remember. As an agent, you are selling yourself. So for what reasons do you want people to remember you? The answer to this question brings the success. And it is not an easy answer...
Bulgaria is a small country with small businesses, compared to other larger and richer states. Smaller companies with local and regional markets often accept the dominance of large, national brands in their marketplace. All too often they assume that good branding and targeted marketing is either too complex or too expensive to be within their reach.
It is easy to conclude that only a big company can build a convincing brand. But this is not true. Every enterprise has a brand under which it conducts its business, and, thus, existing brand equities and competencies. These assets can be leveraged to build brand equity, steal shares from big players, prevent the violation of new entrants and achieve marketplace success.
Wise brand managers, those who do not reduce their competitive strategy to price-driven approaches, can obtain the necessary elements of strategic brand management and thus equip their brand for long-term marketplace success.
This is most successfully accomplished by positioning the brand for sustainable competitive advantage, and by developing an intelligent brand strategy that guides ongoing marketing activities and expenditures.
It is through this kind of strategic thinking, and the formalisation that emerges from it, that a small player gains competitive strength and succeeds against large branded players.
http://www.sofiaecho.com/
Can real estate be branded and does it need it? In a series of articles, The Sofia Echo has tried to prove the importance of the brand concept and the benefits a person, an entity or even an entire state could have from its application.
The answer to the riddle of whether branding can be fitted for the needs of real estate is actually hidden in all three of the above-mentioned aspects. In other words, branding in the property sector should be made by and for persons, entities and countries.
Starting with the bigger picture, the national branding of Bulgaria - as a tourist destination, as a second-home spot, as a place for investing money in whatever industry, including property development - is probably the key factor in branding this country’s real estate.
It is clear now that there is an enormous interest towards acquiring property in Bulgaria and it is explained by a number of reasons, including the opportunity to have a second home in a country where prices are lower and nature and climate are suitable for any taste, the possibility to achieve a high yield on the property one buys today and sells tomorrow, and others.
But, is it enough? Is this all that can be achieved by this state in popularising itself as a property-investment destination? Probably not. Maybe the state should also think about spreading good news like safety from criminals, law-abiding citizens, a properly working justice systems, investment in developing infrastructure, and so on.
Naturally, these things have to first be addressed and successfully handled before they could be advertised as existing in Bulgaria. In the words of a PR specialist, “building a positive image of a country is similar to a PR strategy: without the concrete progress behind it, it would not work”.
Bulgaria is expected to join the European Union soon and this is certain to make it even more attractive for property investors. This has already happened in the former communist countries that joined the EU in 2004. Truth, this may solve many of the troubles that the Bulgarian government has in promoting this country.
But after that comes the matter of branding real estate at a company level. And it will be fair to admit that the process is not going smoothly and definitely needs improvement.
Some of the biggest Bulgarian real estate agents have already bent to the force of branding. Sad to say, most of them are parts of or supported by larger foreign companies operating in the sector. Address (and their new venture Forton International), Colliers, and Norman Partners, as well as some locals like Yavlena and Orvitex are among the leading firms that want customers to identify their names with a consistent standard.
Even big local property developers like Bokar, Glavbolgarstroy, Lindner Bulgaria and Sofia Building Company find it honourable to put their names on buildings that they have built or invested in.
Branding might be vital for property companies to compete in an uncertain future, but one of the big problems in assessing its importance is defining exactly what the process involves. On one level, it is a label on a single product.
Business Park Sofia, for instance, is a powerful brand. It offers a perception of a revolution in office location and development. Other examples could be seen in projects for building large shopping malls. They are one-stop-shop places where all kinds of services - from consumer goods to cinemas - can be found, giving out a message about large-scale, comfortable retailing.
But a brand is more than a name. It is a management process. And it involves many tough decisions.
The next stage is deciding whether a brand can be reproduced. Buildings are not like Coca-Cola bottles or a Snickers bar. Providing the same look or feel to an office or residential building, no matter where you are, is neither feasible nor appropriate. Even putting the same brand name on developments has its flaws.
The vital thing about any realtor is to identify the company name with a standard of service behind the product, regardless of whether it sells it or develops it.
This is another aspect of branding, involving a more subtle and complex process than uniformity of labelling. It involves building loyalty so a customer will rent or buy a property because he or she identifies the company with particular treatment.
Proper branding increases the value of any asset, yet many realtors ignore this principal when marketing properties, especially commercial ones.
Similar to marketing a brand, a property should be marketed with a consistent message, in line with the ownership’s strategy for its image and that of the building - from ads in strategic publications, to lobby aesthetics, to the online presence that becomes the front line of communication between prospective tenant and broker.
Owners rely too often on the marketing staff of affiliated brokers or third parties, rather than providing the information and tools necessary to brand their property effectively. Without a permanent marketing presence online, owners are missing an opportunity to increase occupancy and add value.
To properly market and brand a property, an owner needs marketing expertise, leasing specialists and information technology. Unfortunately, the three speak different languages in Bulgaria. And if a potential customer tries to find a website to obtain all the needed information, the miscommunication becomes apparent.
It is difficult to identify a single property website in Bulgaria, even among the ones hosted by the large agents and developers mentioned above, that offers a full scope of services to investors browsing the web.
A step ahead was the launch of websites of some UK realtors, who made quite a lot of money on selling property in Bulgaria. But, even these sites are poor in terms of the number of offers they provide to the customers.
Differentiation is the key to successful marketing in any business. This is especially true on the internet where it is easy to get lost in the vast digital ocean. One of the most powerful ways to achieve differentiation is to create a personal online brand - a unique identification by which the target market will recognise and associate the value of your services.
Applying a well thought-out branding strategy is not only a sure way to set your site apart from the growing herd of agent sites, but also to potentially create profitable business activity.
Owing to ever-increasing competition, differentiation holds the key to success in any business today. This is especially true of the real estate brokerage business.
Since there is no entry barrier, anyone can set himself up as a broker. Personal branding is one way through which a broker can differentiate himself from the crowd.
So what should branding be in the case of brokers?
While marketing and promotions involve sending active messages targeted at selling the product, branding is a slow process. It is about building an image in the minds of prospective homebuyers and tenants and creating the perception that you are the best. In the property brokerage business, branding is the equivalent of your promise to your customers.
Branding takes time; it is designed to entrench you strongly in your customers’ minds. Unlike selling and marketing, it is not about closing a deal and earning fast money through commissions. It is about steadily building your image.
Any real estate agent’s goal should not be to place as many classified advertisements or call as many people as possible. The goal should be to create an image that people remember. As an agent, you are selling yourself. So for what reasons do you want people to remember you? The answer to this question brings the success. And it is not an easy answer...
Bulgaria is a small country with small businesses, compared to other larger and richer states. Smaller companies with local and regional markets often accept the dominance of large, national brands in their marketplace. All too often they assume that good branding and targeted marketing is either too complex or too expensive to be within their reach.
It is easy to conclude that only a big company can build a convincing brand. But this is not true. Every enterprise has a brand under which it conducts its business, and, thus, existing brand equities and competencies. These assets can be leveraged to build brand equity, steal shares from big players, prevent the violation of new entrants and achieve marketplace success.
Wise brand managers, those who do not reduce their competitive strategy to price-driven approaches, can obtain the necessary elements of strategic brand management and thus equip their brand for long-term marketplace success.
This is most successfully accomplished by positioning the brand for sustainable competitive advantage, and by developing an intelligent brand strategy that guides ongoing marketing activities and expenditures.
It is through this kind of strategic thinking, and the formalisation that emerges from it, that a small player gains competitive strength and succeeds against large branded players.
http://www.sofiaecho.com/
03.04.2006, Real Estates
