PMT - Property Martketing in the Tube

Transcript

1. P.M.T. London March 2008 Terry Fenner-Leitao Mark Smith P.M.T. Property Marketing in the Tube Conceptual Scope of the Business [Last updated 12th December 2009]
2. P.M.T. Page 2 P.M.I.T.T. - Rayhan Rafiq Omar Introduction  A New Media Company, that just happens to specialise in property – Focus on centring information around consumer movements – Updating industry practices on spreading work (and revenue) between skilled professions – Hugely increasing transparency and assistance to bottom of the ladder clients – Business model will be based on providing services for, but not competing with, established players  3 and a half businesses – Marketing system , based around touch screens within transport networks  free of charge for anyone who wants to advertise – Internet based property selling  The half business is creating a renewal energy maintenance company – Property Buying Assistants – free of charge to anyone  Aim to dominate our markets through free of charge services & superior innovation – Revenue from third party commissions, advertising and new ventures developed – By not charging upfront, we can build a large user base who trust our services, which will make us appealing to the property industry as partners and advertisers
3. P.M.T. Page 3 P.M.I.T.T. - Rayhan Rafiq Omar Executive Summary Flowchart (travelling on public transport in a modern metropolis) Normal Person (Sitting on a computer anywhere) Buying/Renting Selling Surveyors/Lawyers (marketing properties they receive instructions for) Ancillary Services (Board companies, Interior design, Home Information Packs, Photography) Private Vendors (Wanting to cut out the middle sales person) Estate Agents (Especially small, local enterprise) Our Shop Window (in every Tube, Subway, Metro Station) Estate Agents (To show people around, provide a high- street presence) SellYours.com (Pick’n’mix services, and local estate agent cost comparison ) Surveyors/Lawyers (providing services, as they normally would) Print Media (Local newspapers, property supplements, magazines) Web (Portals, newspaper websites, classifieds) 1 3 2 1 3 2
4. P.M.T. Page 4 P.M.I.T.T. - Rayhan Rafiq Omar Our Shop Window In Detail  If you are looking to buy or rent, your search usually focuses on a specific area – Current search methods are to walk up and down the high street, or on the web from home  Our Shop Window provides a happy medium to bring the normal person to the area they want to buy/rent in – without having to make their feet hurt looking for what they specifically want to go and see  Local agents are marketed to, so that they can upload new instructions in real time, so that they are displayed on Our Shop Window in their local Tube Station/s - FREE – They have an option to upgrade their listing, for a small fee – All data on how popular their entries have been, and how many people in total have looked, can be seen, for a small fee – We charge for access to valuable data; simple, cost-effective packages  We partner, initially with one of the big web based property search engines – Findaproperty/Primelocation, Rightmove, Zoopla, Globrix  We use this platform to market our subsequent businesses and utilise the data to identify where and what businesses we should focus on
5. P.M.T. Page 5 P.M.I.T.T. - Rayhan Rafiq Omar SellYours.com In Detail  When you want to sell your house, you go to a high street agent – they ask for 1.5% to 3% of the price of the property – If you ask them what you get for that, the sums will never add up – If there are services you won’t use, the price is the same  Building on the success of Our Shop Window, we market our own sales method  The Normal Person visits Sellyours.com from the comfort of their own surroundings: – Ticks which services they want (anything from just advertising on the web and in print, to the whole hog) – Are displayed with live price comparisons with local agents (“hmm, so I am still saving £5,000 compared with Fectons, maybe I’ll go for the interior design service to try and achieve a higher price…”) – Can monitor in real time, or over the phone with a friendly assistant, what stage they are at with the sale  Our advantage: – Low overheads – almost everything is referred to third parties – where demand is high is where we set up on the ground – We can significantly undercut high street agents, while still giving business to the nice, local agents
6. P.M.T. Page 6 P.M.I.T.T. - Rayhan Rafiq Omar Environmental Prerogative The half business and our future  With SellYours.com, free of charge, we will provide all new homeowners with an environmental audit  We will deliver a report of what can be done to save, conserve and improve on: – Energy Consumption, Waste Disposal, Energy Generation, Insulation and more  Free of charge, we will action some of those findings, if the new owner consents  PR – Our Message will be simple: – We are doing what the government should have been doing long ago, and is still not doing – We are taking it upon ourselves to educate the Normal Person of the real costs of renewal energies, recycling, energy savings methods – This isn’t just a business – this is our livelihood, and what we have to hand over to the next generation  We can then go in one of two directions: – Set up an endowment fund for other altruistic types to invest into – Or we can become the single biggest supplier, in our markets, of residential:  Solar panels, wind generators, kinetic generators, electrical rewiring, recycling fixtures…
7. P.M.T. Page 7 P.M.I.T.T. - Rayhan Rafiq Omar Buyers’ Angels Dominating Our Markets  Free of charge, the Normal Person buying a property can receive full service assistance  We will hold their hand through the whole scary process of buying a home  Help them negotiate a fair price, keep legal fees to a minimum and avoid pitfalls  REDUCE STRESS  We will tell them that we clearly will make a loss, but if they want, they can help us make some revenue by using our recommended: – Lawyers, Surveyors, Financial Advisors, etc  This service will ensure we are at the very pinnacle of market changes, are trusted implicitly but the general public and are in prime position to launch market dominating ancillary services, such as: – Financial advisory, Property Law Firms, New Media initiatives, etc
8. P.M.T. Page 8 P.M.I.T.T. - Rayhan Rafiq Omar Comparison Big Picture  Assets – Fixed shop window, website, sales staff cold calling, and Physical Office Location  Costs – Local rent, advertising, staff, staff commissions, admin  Advantages – Physically THERE – Tradition = less scepticism  Disadvantages – Staff not professionals – young sales horses, high fixed costs, high bonus costs  Assets – Shop Window touch screens (in transport hubs), website portal, large network of 3rd party suppliers  Costs – Centralised rent + display rent in transport hubs, minimal staff, admin  Advantages – Reach, low ongoing costs, less waste, speed of action, cool factor, costs do not rise significantly with revenue  Disadvantages – No aggressive staff to badger for new instructions Traditional Estate Agent Our New Platform
9. P.M.T. Page 9 P.M.I.T.T. - Rayhan Rafiq Omar SellYours.com Services Offered – via 3rd Party Suppliers  Surveyors – Valuations, HIPs  Print Advertising – Magazines – Newspaper Supplements  Web Advertising – Portals, Classifieds  Legal – Conveyancing  Interior Design – Before – After (for Purchaser)  People to assist on viewings – Trained to give better than normal service – walk around property with vendor to know it well  Professional Photography  Boards  Open House Days  Financial Advisors – Mortgages, Insurance
10. P.M.T. Page 10 P.M.I.T.T. - Rayhan Rafiq Omar Page 10 Page 10 Key Issues (1)  Need to have technology specified, bring in partners and prototype. Solution: xx  Contract with CBS Outdoor Solution: xx  People travelling in the tube are always in a rush Solution: Even if they just glance and notice the system, it’s a bonus for us. Our core clientele are those actively looking, as well as those travelling day-in, day-out.  Xx  Xx  Recruitment Solution: Strong venture capital partners – contacts with the right people for management roles
11. P.M.T. Competition Analysis
12. P.M.T. Page 12 P.M.I.T.T. - Rayhan Rafiq Omar Page 12 Sector International Competitors Local Competitors Print - Magazine  xx  Foxtons, Web  xx  xx Fixed Posters  xx  xx Print - Newspaper  xx  xx  London-wide agencies dominate with marketing magazines, flyers, newspaper supplements  Web based search portals provide little, if any, assistance – but do provide one stop convenient search  Print is still strong with property professionals and non-professionals London Our Competitors
13. P.M.T. Operational Thoughts
14. P.M.T. Page 14 P.M.I.T.T. - Rayhan Rafiq Omar Our Values Expertise  Champion of Local Businesses  Making sustainability normal  Property is not an emerging segment – But that doesn’t mean the market shouldn’t change for the advantage of the Normal Person  Room for growth – There are way too many traditional estate agents – the wealth does not spread amongst trained professionals – Sales people get an extraordinarily large cut of the property sales revenue – This undermines skills in the economy, in general – We will look to put in systems that redistribute wealth more evenly, and especially to skilled people
15. P.M.T. Page 15 P.M.I.T.T. - Rayhan Rafiq Omar General Operational Ethos Musings  When you order, you should know when things are happening, be comfortable with timeframes and be supported throughout the process. The worst thing for a customer is not knowing what is happening, whether they are paying money or not. Make the customer feel in control.  If you were going to create a revolutionary property business, how would you go about it? – Ideally you would start from scratch, avoiding all the issues of a traditional business. Then you would build a brand new service entirely around your customers' needs. You would make sure this service saved people time, effort and stress. We want to change people's habits with the wonderful convenience of being in control and having the assurance to move ahead with confidence. We will build this business to address the needs of busy people in the 21st Century, without compromising on the things you would usually get as standard anywhere else.  The technology side of things will dictate our operating margins – do we load up our balance sheet with touch screens and servers, or find a way to lease them. – On the software side, we want to use as much proprietary software / hardware as possible, with large corporation backing. e.g. using Microsoft interfaces means that we do not have to develop it solely  The key to the business is having influence over the market – that is our profit margin, and that is our survival as a business – to stay not only a step ahead, but to point to where the next step will be, and draw others in to follow as a critical mass
16. P.M.T. Page 16 P.M.I.T.T. - Rayhan Rafiq Omar General Operational Ethos Environmental Impact  What does the general public know about the cost and implications of conservation of resources and energy? – How much does a solar panel cost, and how much money does it save? – What difference does it make to your bills if your home is properly insulated? – How much can you save by having plug points that switch off idle devices automatically?  We have a responsibility to future generations – free of charge, we will help provide environmental consultancy for your new home – aid in small improvements, such as recycling, solar heating, intelligent electricity saving measures, etc  For a further cost, we will install: – Solar panels, wind generators, rewire, intelligent home, GPS tracking, etc – which we can demonstrate long term cost savings for  Other companies try to minimise their environmental impact. We want to INCREASE our environmental impact, on every home we are involved with, in a good, considerate and positive manner.
17. P.M.T. Page 18 P.M.I.T.T. - Rayhan Rafiq Omar General Operational Ethos Employee Network  Outstanding members of the community – Employees MUST contribute in the community (geographical and business)  E.g. Sitting on board of companies and charities  Knowledge is Power – So empower the future: TEACH – Universities and schools are filled with people who couldn’t do, so they teach – ALL employees must educate themselves – ALL employees must focus on what they are good at, and develop that focus – ALL employees should have a roadmap to them giving that skill to others through:  Lecturing  Visiting Teacher positions  Community Work / Volunteering
18. P.M.T. Page 19 P.M.I.T.T. - Rayhan Rafiq Omar Technology  Input application for agents – Easy to download and interfaces with their in-house software – Web based version for those who cannot download  but light of some features, to encourage download and install – Interfaces with ALL current property websites  Needs to be THE tool for estate agents  Makes sure information is organised and flexible – to our standards  Front end for Our Shop Window – Multitouch – Possibly utilising Windows 7 – needs to be supported by a proprietary software developer  Most companies report quarterly figures – We want to report by the second  Like Google has a counter for the increasing Gmail storage, our systems should update the investor relations website, in real time, with details of our inputs (revenues) and outputs (costs)  Good Reporting = Solid grasp of business, transparency and risk mitigation  Great Reporting = Being faster and more profitable than the competition, as well as more innovative
19. P.M.T. Page 20 P.M.I.T.T. - Rayhan Rafiq Omar Our Shop Window Front End Hardware  Microsoft Surface – Windows, future support, multiple expansion possibilities at minimum cost  Perceptive Pixel – Flat, interesting, little documentation  I Bar – http://www.i-bar.ch/index.php?id=88&L=1  Others – New Scientist Article – Multi Touch Blog
20. P.M.T. Page 21 P.M.I.T.T. - Rayhan Rafiq Omar Page 21 How We Intend on Managing Our Cashflow Strategy and Goals  Y1 - slow, prototyping and establishing key relationships  Y2 - investment increase, and modest revenue increase  Y3 - dramatic sales drive, coupled with hugely increased expansion  Y4 - expenditure largely same as year before, with focus on increasing current revenues  Allow profitability to pay off debts and safely fuel future expansion  Y5 - all out expansion to establish market dominance in focused areas
21. P.M.T. Page 22 P.M.I.T.T. - Rayhan Rafiq Omar Page 22 Page 22 New York London Moscow Kiev Cyprus Almaty Geneva Nairobi Lagos New York London Moscow Singapore Seoul Geneva Hong Kong Tokyo Dubai Harare Beijing Shanghai Haifa Delhi Stable Emerging Market Mature Market Partnership Opportunity Risky Emerging Market Osaka Kuala Lumpur Taipei Helsinki Paris Berlin Munich Athens Milan Rome Amsterdam Rotterdam Saint P Barcelona Madrid Valencia Toronto Montreal Mexico City San Francisco Chicago Washington Boston Los Angeles REALISTIC Future Expansion Next 10 Years
22. P.M.T. Page 23 P.M.I.T.T. - Rayhan Rafiq Omar xxx Procurement XXX Legal Counsel xxx Sales XXX Sales / Marketing XXX Technology XXX Vision, Structure, Direction First Steps Key People
23. P.M.T. Page 24 P.M.I.T.T. - Rayhan Rafiq Omar Suveyors Transaction Flow Ideal Setup – 5 years later  xx Private Customers Estates Agents  xx  xx The Tube (TFL & CBS Outdoor) Tube Passengers Cro Se Part shi  xx Web-based interface
24. P.M.T. Financial Projections
25. P.M.T. Page 26 P.M.I.T.T. - Rayhan Rafiq Omar Page 26 Business Specific Costs Estimated Totals for 3 years Our Shop Window  Technology (hardware and software), Rent (inside Tube), Maintenance, Sales, Office Space, Admin (incl. Financial and Legal), software development (fixed fee) SellYours.com  Servers, software developers (ongoing), Call Centre, Sales, Admin, Office Space, Environmental Consultancy  Consultant professionals, materials (plug adapters, recycling fixtures, solar/wind generators), Buyers’ Angels  Staff, Research (up-to-date pricings, market info), Office Space (high spec and profile), Financials Estimates of market size and costs  xx
26. P.M.T. Page 27 P.M.I.T.T. - Rayhan Rafiq Omar Page 27 Financials Cost Breakdown – Our Shop Window KEY PERFORMANCE INDICATORS US$ Millions 2008 2009 Y-on-Y 2010 2011 2012 Total Operating Income xx xx xx% xx xx xx% Total Operating Expenses (xx) (xx) (xx)% (xx) (xx) (xx)% Net Income xx xx (xx)% xx xx xx% Net Profit Margin (%) xx% xx% xx% xx% RoE (%) xx% xx% xx% xx% xx% xx% Headcount (average) xx xx xx% xx xx xx%  Operating Income – xx  Operating Expenses – xx  Net Income / Margin – xx  Headcount – xx
27. P.M.T. Page 28 P.M.I.T.T. - Rayhan Rafiq Omar Page 28 Financials Cost Breakdown – SellYours.com KEY PERFORMANCE INDICATORS  Operating Income – xx  Operating Expenses – xx  Net Income / Margin – xx  Headcount – xx US$ Millions 2008 2009 Y-on-Y 2010 2011 2012 Total Operating Income xx xx xx% xx xx xx% Total Operating Expenses (xx) (xx) (xx)% (xx) (xx) (xx)% Net Income xx xx (xx)% xx xx xx% Net Profit Margin (%) xx% xx% xx% xx% RoE (%) xx% xx% xx% xx% xx% xx% Headcount (average) xx xx xx% xx xx xx%
28. P.M.T. Page 29 P.M.I.T.T. - Rayhan Rafiq Omar Page 29 Financials Cost Breakdown – Environmental Consultancy KEY PERFORMANCE INDICATORS  Operating Income – xx  Operating Expenses – xx  Net Income / Margin – xx  Headcount – xx US$ Millions 2008 2009 Y-on-Y 2010 2011 2012 Total Operating Income xx xx xx% xx xx xx% Total Operating Expenses (xx) (xx) (xx)% (xx) (xx) (xx)% Net Income xx xx (xx)% xx xx xx% Net Profit Margin (%) xx% xx% xx% xx% RoE (%) xx% xx% xx% xx% xx% xx% Headcount (average) xx xx xx% xx xx xx%
29. P.M.T. Page 30 P.M.I.T.T. - Rayhan Rafiq Omar Page 30 Financials Cost Breakdown – Buyers’ Angels KEY PERFORMANCE INDICATORS  Operating Income – xx  Operating Expenses – xx  Net Income / Margin – xx  Headcount – xx US$ Millions 2008 2009 Y-on-Y 2010 2011 2012 Total Operating Income xx xx xx% xx xx xx% Total Operating Expenses (xx) (xx) (xx)% (xx) (xx) (xx)% Net Income xx xx (xx)% xx xx xx% Net Profit Margin (%) xx% xx% xx% xx% RoE (%) xx% xx% xx% xx% xx% xx% Headcount (average) xx xx xx% xx xx xx%