Syntax Literate: Jurnal
Ilmiah Indonesia p–ISSN: 2541-0849 e-ISSN: 2548-1398
Vol. 9, No.
9, September 2024
PROPOSED
STRATEGY FOR MAINTAINING A SMALL-FAMILY-BUSINESS ENTERPRISE IN A COMPETITIVE
PROPERTY MARKET
Aliya Mayendra
Institut Teknologi Bandung,
Bandung, Indonesia
Email:
[email protected]
Abstract
This study addresses the growing
challenges faced by small family businesses in the competitive property market
by proposing strategic interventions specifically designed to sustain and
enhance the viability of Allure Realty Group, a family-run enterprise
established in 2012 in Jabodetabek. With increasing complexity in the property
sector due to urbanization, shifting consumer demands, and stringent regulatory
environments, the research aims to develop a robust strategic framework. The
methodology involves a combination of qualitative and quantitative approaches,
including surveys and interviews, to identify key problems and collect data.
Analytical tools such as the Marketing Mix 7P, VRIO Framework, and STP Analysis
for internal factors, and PESTLE Analysis, Porter’s Five Forces, Competitor and
Customer Analysis for external factors are used to conduct SWOT and TOWS
analyses for strategic development. The study hypothesizes that targeted
strategies will significantly improve the business's resilience and competitiveness
in the market. Key objectives include identifying challenges faced by Allure
Realty Group, developing strategies to address these issues, and implementing
actions to improve operational efficiency, customer satisfaction, and market
expansion. The expected outcomes are enhanced operational frameworks, increased
customer satisfaction, and a larger market share, contributing to the
business's long-term sustainability. This research contributes to business
management theory by providing insights into strategies for small family
businesses in rapidly evolving markets. The findings aim to bridge traditional
business values with modern management practices, offering valuable guidance
for both academic researchers and business practitioners in navigating the
complexities of the property industry.
Keyword: Small Family Business, Apartment,
Property, Marketing, Strategy
Small-family
businesses face a variety of complex issues in the ever-changing global
property market, which necessitates a flexible and strategic strategy
The
challenges of sustaining small-family enterprises in a particular area are
increasing in the competitive market
Proposed
strategies become clearer after being influenced by these local and global
perspectives. Small family businesses in the property sector must adopt
technology to improve customer experiences and expedite operations.
Simultaneously, the value of community participation emphasizes that companies
who actively engage in neighborhood events and foster close relationships with
the community are more likely to prosper in the face of competitive pressures
The
global problem of maintaining small-family businesses in a competitive property
market is complex and influenced by both local and global economic trends
The
Colliers reported that there were 220,451 apartment units in Jakarta in the
fourth quarter of 2022. This number grew 0.4% from the same period last year
(year-on-year/yoy). Based on location, West Jakarta has the most apartments in
the capital. The percentage reached 25% of the total number of apartments in
Jakarta last year. The distribution of the next largest number of apartments is
in North Jakarta and South Jakarta, each with 19%. Then, Central Jakarta has an
apartment distribution of 15%. Next, the Central Business District aka CBD area
has a distribution of apartments in Jakarta as much as 13%. The remaining 9% of
apartments are spread across East Jakarta (Databooks, 2022).
As
of Q4 2023, the occupancy rate in the Jakarta serviced apartment market
remained relatively stable at 60.4%. The primary demand drivers continue to be
short-stay leisure guests, particularly those attracted to newly opened
projects where operators typically offer promotions and discounts to entice
guests. Further, despite the lifting of COVID-related restrictions globally,
2024 is expected to be a dynamic environment characterized by economic
uncertainty and heightened volatility amid complex geopolitical situations (Colliers,
2023).
Small-family
businesses face significant obstacles in the ever-changing Jabodetabek property
market as they work to thrive in the face of intense competition
To
effectively address the complex challenges faced by businesses today, it is
necessary to pursue the goals objectively. In the context of this research, it
is essential to undertake a comprehensive analysis of the current situation
within Allure Realty Group and make some improvements to propose a strategic
framework tailored for small family-business enterprises to enhance their
competitiveness and sustainability in Jabodetabek's property market. Research
Questions for this topic are:
1)
What
is the internal & external analysis of Allure Realty Group in the apartment
business?
2)
What
is the proposed marketing strategy for Allure Realty Group to increase the unit
rental?
3)
What
is the implementation plan for the marketing strategy?
This research employs a
mixed-methods approach with a convergent design, combining both quantitative
and qualitative methods to gain a deeper understanding of the research problem
The study population
consists of residents of Jabodetabek aged 15-64 years who are potential
apartment renters. According to data from the Badan Pusat Statistik, the total
population is 9,032,187 people. The sample size was determined using the Slovin
formula with a margin of error of 7%, resulting in a minimum sample of 204
respondents. However, the questionnaire distributed through Google Forms
successfully gathered responses from 230 respondents, exceeding the required
minimum. For the qualitative side, interview participants were selected
purposively based on their roles and knowledge related to the issues being
studied.
The collected data is
analyzed using a convergent mixed-methods approach, which consists of three
phases. First, the qualitative data is analyzed by coding and identifying major
themes. Second, the quantitative data is analyzed statistically, including cluster
analysis to identify key consumer segments. Third, the results from both
analyses are compared and integrated to determine whether there is convergence
or divergence between the qualitative and quantitative findings. This approach
provides a more comprehensive and valid view of the research problem and the
proposed solutions.
Results and Discussion
1) Segmenting, Targeting, Positioning
The
author will utilize the STP framework to analyze the characteristics of the Allure
Realty Group market, identify potential target customers, and determine the
appropriate positioning. The current STP will be determine from the interview
conducted with Allure Realty Group Management and the propose STP will be
determine from the survey distribution. For the proposed STP, later will be
explained by the cluster analysis.
Allure
Realty Group has strategically segmented its market based on several criteria,
including apartment class, customer demographics, and geographic locations.
They manage a diverse portfolio of apartments ranging from simple to luxury
accommodations, catering to a broad demographic. Apartment classes are
segmented into simple, middle, and luxurious, located in various high-demand
areas across Jabodetabek. This segmentation allows them to cater specifically
to different needs, from students to working professionals, factoring in
elements like proximity to public transport, business districts, and
educational institutions.
In
targeting its customers, Allure Realty Group focuses on several distinct
groups. Middle to upper-class customers are a primary target, drawn to yearly
rental contracts that provide a steady income stream and require less frequent
management. Students and young professionals are also targeted for their
preference for affordable and conveniently located studio apartments near
universities and city centers. Additionally, Allure Realty Group caters to
tenants who prefer short-term commitments, offering flexible rental agreements,
including monthly and quarterly options. This strategy ensures a wide appeal,
accommodating the varying needs and commitments of potential tenants.
Allure
Realty Group's positioning in the market is built around its commitment to
service quality and flexibility. Emphasizing fast response times and high
service standards helps retain tenants and encourage lease renewals. The
variety of rental options from fully furnished to unfurnished apartments allows
Allure Realty Group to attract both tenants who desire move-in-ready homes and
those who prefer to customize their living spaces. Strategic marketing through
platforms like OLX and ApartemenJakarta.com, coupled with promotions such as
"rent for 12 months, pay for 11," positions Allure Realty Group as an
accessible and proactive rental business. Furthermore, by highlighting security
features and amenities like gyms, pools, and convenient transportation links, Allure
Realty Group enhances its appeal to higher-paying segments who prioritize
safety and quality of life.
The
marketing mix 7P analysis purposes are conducted to analyze all aspects of the
marketing strategy are considered and aligned to meet the needs and
expectations of target customers. The marketing mix analysis of Allure Realty
Group as below:
1.
Product:
Allure Realty Group offers a range of apartment units with different levels of
amenities and furnishings. The product offering includes various apartment
types from simple to luxurious, accommodating different needs, preferences, and
budgets. Options include fully furnished, semi-furnished, and unfurnished
units. This range allows Allure Realty Group to cater to diverse customer
groups including students, single professionals, and families looking for both
short-term and long-term accommodations.
Table 1. Product
Classification
|
Categories |
||||
|
Social Class Apartment |
Bedroom Quantity |
Facilities |
Building Height |
Interior |
|
Low Middle High |
1 2 >2 |
Swimming Pool, Parking Area, Gym, Salon, Playground,
Laundry, View, Security |
2-4 floor 4-8 floor >8 floor |
Unfurnished Semi Furnished Fully Furnished |
2.
Price:
Pricing strategies at Allure Realty Group are flexible and responsive to market
conditions. Rates vary depending on the apartment's size, location, and level
of luxury. Pricing adjustments are made based on the economic climate,
competitive pricing, and customer feedback. Discounts and promotional rates are
also employed to attract tenants, such as offering one month free on a yearly
lease, demonstrating a dynamic pricing approach to maximize occupancy rates.
|
|
Unit |
Location |
Price/month |
Price/year |
|
1 |
Akasa |
Tangerang Selatan |
IDR 1.750.000 |
IDR
21.000.000 |
|
2 |
Ancol
Mansion |
Jakarta Utara |
IDR 5.000.000 |
IDR
60.000.000 |
|
3 |
Aspen
Peak Residence |
Jakarta Selatan |
IDR 6.000.000 |
IDR
50.000.000 – IDR 72.000.000 |
|
4 |
Apartemen
Brawijaya |
Jakarta Selatan |
IDR 14.000.000 |
IDR 168.000.000 |
|
5 |
Cibubur
Village |
Depok |
IDR 2.400.000 IDR 3.000.000 IDR 3.250.000 |
IDR
28.800.000 IDR
36.000.000 IDR
39.000.000 |
|
6 |
Kalibata
City |
Jakarta Selatan |
IDR 2.800.000 IDR 3.000.000 IDR 3.250.000 IDR 3.900.000 |
IDR
33.600.000 IDR
36.000.000 IDR 39.000.000 IDR
46.800.000 |
|
7 |
Kebagusan
City |
Jakarta Selatan |
IDR 2.500.000 IDR 2.800.000 IDR 3.500.000 |
IDR
30.000.000 IDR
33.600.000 IDR
42.000.000 |
|
8 |
Margonda
Residence 3 |
Depok |
IDR 2.800.000 |
IDR
33.600.000 |
|
9 |
Menteng
Park |
Jakarta Selatan |
IDR 5.000.000 |
IDR
60.000.000 |
|
10 |
Park
View Detos |
Depok |
IDR 2.500.000 IDR 3.000.000 |
IDR
30.000.000 IDR
36.000.000 |
|
11 |
Patraland
Urbano |
Bekasi |
IDR 3.500.000 |
IDR
42.000.000 |
|
12 |
Podomoro
Golf View |
Jakarta Selatan |
IDR 3.000.000 |
IDR
36.000.000 |
|
13 |
Saveria |
Tangerang Selatan |
IDR 2.800.000 IDR 3.000.000 |
IDR
33.600.000 IDR
36.000.000 |
|
14 |
Sudirman
Park |
Jakarta Pusat |
IDR 6.000.000 |
IDR
72.000.000 |
|
15 |
Taman
Melati Margonda |
Depok |
IDR 2.800.000 IDR 3.000.000 |
IDR
33.600.000 IDR
36.000.000 |
3.
Place:
The apartments are strategically located across Jabodetabek, ensuring they
appeal to a broad market. Locations are chosen based on accessibility to key
amenities such as transportation hubs, business districts, educational
institutions, and entertainment areas. This geographical spread ensures that Allure
Realty Group can target different segments, from students needing easy campus
access to professionals requiring proximity to business centers.
4.
Promotion:
Allure Realty Group utilizes various promotional channels to market its
apartments. These include online platforms like OLX, ApartemenJakarta.com, and
social media, as well as traditional word-of-mouth. Special offers, such as the
previously mentioned rental discounts, are also used to attract new tenants.
The use of diverse advertising methods helps Allure Realty Group reach a wider
audience and fill vacancies more effectively.
5.
People:
Allure Realty Group's emphasis on customer service is evident in its commitment
to responsiveness and tenant satisfaction. The owner mentions prioritizing fast
responses to tenant complaints and queries, ensuring a high level of tenant
service and care. This focus on service quality helps in retaining tenants and
fostering a positive reputation in the market.
6.
Process:
The rental process at Allure Realty Group is designed to be tenant-friendly,
accommodating various tenant needs for lease terms and furnishing options. The
process includes everything from the initial inquiry to contract renewal, with
an emphasis on ease and convenience. The use of digital platforms for inquiries
and transactions also reflects a modern approach to tenant management.
7.
Physical
Evidence: The physical environment of Allure Realty Group's properties includes
well-maintained apartment buildings with security and additional facilities
like gyms and swimming pools in some locations. The quality of the physical
environment is a critical aspect of Allure Realty Group’s value proposition,
influencing tenant satisfaction and retention.
VRIO
analysis is a strategic planning tool used to evaluate the internal resources
and capabilities of a company to discover whether they hold the potential to
provide sustained competitive advantages. The framework evaluates resources
based on four dimensions: Value, Rarity, Imitability, and Organization.
1.
Value
on Allure Realty Group – Yes
a)
Trust
and Reliability: As indicated in the conversations with Ibu Nanda and other
respondents, Allure Realty Group is highly trusted by apartment owners to
manage their units. Ibu Nanda mentions that her decision to delegate the
management of her properties to Allure Realty Group stems from a longstanding
trust and the convenience it provides her, as she does not have the time to
manage the properties herself. This trust has been built over a decade,
underscoring Allure Realty Group's reliability and consistent service quality.
b)
Customer
Satisfaction: The documents reflect a high level of tenant satisfaction with Allure
Realty Group’s management services. Customers like Dini have renewed their
leases multiple times, indicating that they are happy with the living
conditions and management provided by Allure Realty Group. This satisfaction is
crucial in the competitive property rental market, where positive tenant
experiences can significantly influence occupancy rates and renewals.
c)
Efficient
Operational Processes: The detailed description of Allure Realty Group’s
business processes from marketing to tenant move-out suggests that the company
has developed efficient operational procedures. These processes are designed to
enhance customer satisfaction through streamlined procedures for contract
signing, maintenance, and tenant support, which are integral to sustaining
long-term business relationships.
d)
Strategic
Property Management: Allure Realty Group's ability to maintain a
well-functioning and attractive portfolio of properties across desirable
locations in Jabodetabek provides it with a competitive edge. The emphasis on
clean, homely, and well-maintained living spaces is a significant value proposition
that attracts and retains tenants.
e)
Community
Engagement and Family-Oriented Approach: Allure Realty Group's family-run
nature and its focus on creating a community atmosphere not only differentiate
it in the marketplace but also foster strong relationships with tenants. This
approach is mirrored in their engagement with neighborhood events and
activities, enhancing their local reputation and tenant loyalty.
2. Rarity on Allure Realty
Group – Yes
a)
Family-Run
Business: Allure Realty Group is described as a small, tight-knit, family-owned
enterprise. This family-oriented nature is relatively rare in a market that is
often dominated by larger, more corporate entities. The familial approach
likely contributes to a more personalized service, focus on closer
relationships with tenants and a community atmosphere that can be hard to
replicate by larger, impersonal companies.
b)
Localized
Expertise and Community Engagement: Allure Realty Group's deep engagement with
the local community and its active participation in neighborhood events are
rare traits that not all property management companies possess. This
involvement not only enhances the company’s local market understanding but also
strengthens tenant loyalty and community ties. Such grassroots engagement can
be a unique selling point, particularly in a culturally rich and
community-oriented market like Indonesia
c)
Consistently
High Levels of Trust and Personalized Service: The long-standing trust that
property owners like Ibu Nanda place in Allure Realty Group indicates a level
of service and reliability that may be rare in the industry. The ability to
maintain such trust over a decade points to an exceptional consistency in
quality service and tenant management, which can be rare in the fast-changing
property management sector.
d)
Holistic
Property Management Approach: Allure Realty Group’s approach to managing
properties goes beyond mere administration and includes creating homely, cozy,
and clean living environments. This holistic approach to property management,
focusing on the quality of life and the aesthetic aspects of living spaces, is
not commonly emphasized to the same extent by other firms in the region.
e)
Operational
Stability and Adaptation: As noted, Allure Realty Group has managed to sustain
and adapt its operations through various market conditions, including the
economic downturns influenced by the COVID-19 pandemic. This resilience and
capability to maintain service quality through challenging times provide a rare
stability that can be a significant competitive advantage.
3. Imitability on Allure
Realty Group – Yes and No
Allure
Realty Group's business model is both imitable and non-imitable, the nuanced
aspects rooted in family ownership, community ties, and built-up reputation
make certain parts of its operations and brand identity not easily imitable.
Table 3. Imitability
on Allure Realty Group
|
Imitable Aspect |
Non-Imitable Aspect |
|
· Basic
business model The fundamental structure of property management —
such as leasing apartments, handling maintenance, and managing tenant
relations — is standard in the industry and can be imitated by other firms. · Operational
Techniques Standard procedures for property management, such as
leasing processes, maintenance protocols, and customer service methods, can
also be replicated by competitors |
· Family
Ownership Dynamics The intrinsic commitment, personal touch, deep
involvement, a unique work culture and customer loyalty. · Reputation
and Trust The reputation that Allure Realty Group has
developed over years, based on trust and consistent service quality, is a
significant competitive advantage that new competitors cannot easily
replicate. It requires time and consistent performance to build a similar
level of trust and reputation. |
4. Organization on Allure
Realty Group - Yes
Allure
Realty Group's organizational value inside the VRIO framework is demonstrated
by its solid and strategically oriented family-centric business model, which
greatly improves its operational efficiency and customer service. Allure Realty
Group, operating as a family-owned enterprise, utilizes the strong dedication
and personal engagement of its members to provide prompt decision-making and
adaptable business methods, which are crucial for adjusting to shifting market
circumstances. This framework enables a customer-centric approach, with a focus
on developing cozy and pleasant living areas that enhance tenant happiness and
encourage consumer loyalty. Furthermore, Allure Realty Group's active
participation in community events not only improves its local acceptance and
recognition in the marketplace but also relates with its strategic goal of
understanding and quickly responding to client requirements. The business has
implemented efficient and effective methods for managing customers and
maintaining properties, utilizing technological tools to update and improve
service delivery. Furthermore, Allure Realty Group's capacity to include input
into continually improving processes ensures its adaptability to developing
challenges and customers, thereby maintaining its competitive edge in the
property management industry.
External
Analysis
PESTEL
analysis shows that while Allure Realty Group is affected by a broad range of
external factors, its community-centric business model and adaptive strategies
are crucial in navigating these challenges. Here is the PESTEL analysis of Allure
Realty Group business situation:
1.
Politics
Urban
development strategies often promote high-density living to manage urban development
and enhance economic efficiency, leading to increased construction of apartment
complexes. For example, zoning laws may prioritize multi-family homes, boosting
apartment availability. Additionally, political initiatives like housing
affordability programs can make apartments more accessible to lower and
middle-income families through subsidies or tax incentives. Infrastructure
developments, such as improved public transport systems, make apartments more
attractive by reducing commute times and enhancing connectivity to urban
centers. Also, stringent construction and safety regulations ensure that
apartments meet high standards of quality and sustainability, further encouraging
their adoption as a preferred housing option. These government measures
collectively shape the attractiveness and feasibility of apartment living in
the region.
2.
Economic
Economic
conditions in Jabodetabek significantly influence the demand for apartment
rentals. Factors such as economic growth increase disposable income, boosting
the demand for housing, including apartments. For example, lower interest rates
set by the Bank of Indonesia can make loans more affordable, encouraging both
developers to construct more apartments and individuals to consider renting or
buying them. Additionally, inflation impacts purchasing power; when controlled,
it stabilizes long-term investment in properties, but high inflation can make
renting more appealing than buying. The region's ongoing urbanization, driven
by better job opportunities in urban centers, also fuels the demand for
conveniently located apartments. Infrastructure developments like the Jakarta
MRT and LRT enhance accessibility and desirability of living in specific areas,
further increasing apartment demand. Employment rates correlating with economic
activity directly affect housing needs, with higher employment often leading to
a greater demand for apartments near workplaces. The property market in
Jabodetabek tend to be sensitive to changes in economic conditions such as
inflation and interest rates. Higher interest rates could make mortgages more
expensive, thus affecting buyer sentiment and demand for new apartments. On the
other hand, any significant economic recovery could boost the property market
if it enhances consumer confidence and spending power.
3. Social
An
increase in urbanization and changes in living preferences among Indonesians,
especially among young professionals and students, influence the demand for the
types of properties Allure Realty Group offers. In Jabodetabek, social factors
influencing the choice to rent apartment units include the return of
expatriates and normalization of business activities, which have improved
occupancy rates and rental prices in the region. Young professionals and
smaller households prefer apartments due to their strategic locations and
amenities, aligning with modern lifestyle preferences and economic efficiency.
This trend is bolstered by urbanization and the evolving demographic profile of
the area, which sees increasing numbers of people moving from rural areas in search
of better opportunities The average rental occupancy rate in Jakarta's
apartment subsector recorded a slow increase to 61.2% in the first half of
2023, compared to the previous semester. (Fitri, 2023)
4. Technological
The
integration of property management software, online rental payment systems, and
digital marketing strategies can enhance operational efficiency and customer
service, providing Allure Realty Group a competitive edge. Increased use of
online platforms for apartment searches and reviews also affects Allure Realty
Group's marketing strategies and customer interaction.
5. Environmental
Renting
an apartment in Jabodetabek, particularly in densely populated areas like
Jakarta can significantly contribute to reducing vehicle pollution and traffic
congestion. Apartments typically consolidate many people in a smaller area
compared to suburban sprawl. This higher density can lead to reduced distances
to workplaces, amenities, and services, encouraging walking, cycling, or the
use of public transportation. These factors collectively decrease the reliance
on personal vehicles, thereby reducing traffic congestion and lowering vehicle
emissions, which is crucial for improving air quality and reducing the overall
environmental footprint of urban areas.
6. Legal
Compliance
with tenant-landlord legislation, which covers tenant rights, safety, and
eviction procedures, is crucial for Allure Realty Group to manage legal risks
and ensure smooth operations. Government Regulation No. 30 of 2019 in Indonesia
updates and replaces the previous regulations on apartment housing,
particularly those outlined in Government Regulation No. 4 of 1988. This
regulation modernizes the legal framework for the management and ownership of
condominiums, which include apartments and other multi-story residential
buildings. The regulation clearly defines condominiums as inclusive of
apartments, flats, and similar vertical housing units within a multi-story
structure. It further details the Certificate of Ownership for Condominium
Units (SHMSRS), the legal document validating individual ownership of a unit.
Management responsibilities are outlined, requiring a management body that
includes unit owners, tasked with the maintenance, repairs, and administration
of communal facilities. The regulation specifies the rights and obligations of
residents and managers, where residents are entitled to use communal
facilities, live in a safe and comfortable environment, and must comply with
management fees and regulations. Managers are expected to maintain property
quality and manage facilities professionally. Additionally, the regulation
stresses the importance of social functions and adequate public facilities such
as green spaces, children's play areas, and security. It also provides
mechanisms for dispute resolution among residents or between residents and
managers, aiming for efficient and effective conflict resolution. This update
is a crucial advancement in aligning condominium regulations with contemporary
challenges and enhancing protections for owners and residents in Indonesia.
1.
Threat
of New Entrants - Medium
Regulatory
obstacles, financing needs, and brand recognition are some of the variables
that determine how dangerous new competitors are in the cutthroat real estate
market. Small-family enterprises may have less obstacles to entry, but
established competitors and complicated regulations may discourage them. A
well-executed plan can improve brand perception and foster customer loyalty,
strengthening the company's position and reducing the danger. High competition
among property businesses in Jabodetabek, requiring unique strategies to stand
out. While initial capital investment and understanding local market dynamics
can pose challenges, the barriers are not insurmountable in the property
management industry. The specialized knowledge and community integration that Allure
Realty Group possesses do create some protective barriers, but motivated new
entrants can overcome these with sufficient resources and strategic alliances,
the property management sector is still accessible enough for new companies to
enter, especially if they can differentiate effectively or leverage
technological innovations.
2.
Bargaining
Power of Buyers – High
Tenants
have numerous options in the rental market, empowering them to choose based on
factors like price, location, amenities, and service quality. Economic
conditions that affect tenants' income can increase their price sensitivity,
further enhancing their bargaining power. As tenants have significant influence
through their ability to easily switch providers, especially in a competitive
market with many alternatives.
3.
Bargaining
Power of Suppliers – Medium to High
Allure
Realty Group’s operations rely significantly on relationships with property
owners. The availability of properties can limit business scalability,
potentially increasing the bargaining power of these suppliers. Dependence on
third-party service providers for maintenance and operational needs also
impacts Allure Realty Group’s operational flexibility. Given Allure Realty
Group's reliance on both property owners and various service providers, which
can influence pricing and terms significantly.
4.
Threat
of Substitute Products or Services - Medium
Alternative
investment choices, different property types, and rental options might present
a threat to the real estate market. To ensure they stay competitive in the
market, small-family businesses can counter this threat by separate what they
provide, offering special services, and being aware of how customer preferences
are changing. With diverse customer profiles including students, employees, and
professionals, necessitating tailored customer experiences. The availability of
other rental options, home purchases, and innovative platforms like Airbnb
provide viable alternatives to traditional apartment rentals. Although Allure
Realty Group differentiates itself through a community-focused approach, the
effectiveness of this strategy in mitigating substitute threats can vary. There
are several substitutes available, Allure Realty Group’s unique
community-driven model provides a competitive edge that may not be easily
replicated by all substitute offerings.
5.
Industry
Rivalry – High
The
property management sector in Jabodetabek is highly competitive with many
players competing on various fronts such as price, quality, and services. Allure
Realty Group’s strategy to differentiate based on quality and community
involvement helps it to stand out, but the overall competitive intensity
remains high due to the active presence of numerous competitors. Due to the
significant number of existing competitors and the aggressive strategies
employed by these firms to capture market share. Small-family businesses can
set themselves apart using the suggested strategy framework, individual
property features, and personal customer service. Strong rivalry can be managed
and thrive in with the support of a comprehensive strategy.
Based on the interview
conducted, the author interviews the owners of some agencies such as Cloud
Property, Sky Property and Dashwanhaus agency that operates it business in
Jabodetabek area.
|
Marketing Mix |
Cloud Property |
Dashwanhaus |
Sky Property |
Allure Realty Group |
|
Product |
Offers 30 units in
Jabodetabek. Studio and two
bedrooms. Furnished option. |
Offers 50 units at
Cibubur Village. Studio and two
bedrooms. Furnished and
unfurnished options. |
Offers 25 units
across Cibubur Village and Trans Park. Studio, two and
three bedrooms. Furnished option. |
Offers 55 units
across Jabodetabek. Studio and two bedrooms. Furnished option. |
|
Price |
Flexible pricing
strategies, adjusted according to client needs, especially for short-term
engagements. |
Pricing strategies
focus on monthly rentals with a tendency for discounts in longer-term
engagements. |
Utilizes competitive
pricing with flexibility in daily, monthly, and yearly terms. |
Uses a structured
pricing model but flexible based on negotiation; offers monthly rentals
predominantly, with daily options for specific needs. |
|
Place |
Operates in several
strategic locations with a focus on areas favorable for corporate and film
sectors. |
Located solely in
Cibubur Village, focusing on leveraging local community engagements. |
Operates in Cibubur
Village and Trans Park, ensuring strategic location for diverse client needs. |
Properties spread
across strategic locations in Jabodetabek, focusing on accessibility and
strategic location for transportation hubs. |
|
Promotion |
Uses internet
platforms for marketing, focusing less on social media and more on targeted
platforms. |
Employs a
combination of online platforms like Travelio and Traveloka, and
word-of-mouth promotions. |
Digital marketing
via Agoda, website, and OLX, supplemented by direct walk-ins and offline
interactions. |
Primarily utilizes
online platforms and word-of-mouth; does not engage heavily in traditional
social media but uses specific property rental platforms. |
|
People |
A small, focused
team managing a reduced portfolio post-COVID, adapting to current market
demands. |
Employs a minimal
staff but enhances reach through incentivizing security and cleaning staff. |
Leverages a blend of
freelance and in-house staff to maintain and clean units, with a small core
team. |
Family-run business
with a small dedicated team, emphasizing personal touch in operations. |
|
Process |
Streamlined rental
process focusing on flexibility and customization to client needs, especially
films. |
Simplified and
efficient rental process, with quick turnarounds on client inquiries and
needs. |
Efficient process
enabled by digital tools for bookings and management, offering quick access
to rentals. |
Customer-centric
rental process, highlighting flexibility and personalized service, with a
clear emphasis on screening and adapting to customer needs. |
|
Physical Evidence |
Maintains properties
to suit corporate and film production needs, ensuring professional setups. |
Properties are
well-maintained, with a range of furnished to unfurnished units appealing to
locals. |
Units are fully
furnished and well-equipped, mirroring high standards and readiness for
immediate occupancy. |
Units are
meticulously curated to reflect a homely and clean environment, with
attention to detail ensuring comfort and aesthetic appeal in every unit. |
Allure
Realty Group could significantly benefit by adopting Skyproperty's strategic
methods, particularly through niche marketing, which targets specific client
groups with tailored services to stand out from other property managers.
Enhancing their digital marketing strategy, particularly through social media
and SEO, could expand their audience reach. Additionally, Allure Realty Group
might consider adopting Skyproperty's flexible rental terms to cater to diverse
tenant needs, and improve operational resilience by diversifying services or
exploring new revenue streams, learning from Skyproperty’s adaptive strategies
during the pandemic.
The
author conducted interviews with four Allure Realty Group’s customers who has
been renting apartments for few months and years, and analyze the survey
conducted with cluster analysis to determine each cluster of customers.
Dini
is a recent graduate now employed near Kalibata, Jakarta. She has been renting
a two-bedroom unit at Taman Melati Margonda for the past two years, primarily
due to its proximity to educational institutions and for sharing with her
sister, which helps manage living costs effectively. Her decision to renew the
lease multiple times reflects her satisfaction with the unit and the management
services provided by Allure Realty Group.
Tigor,
working in the entertainment industry, requires a residence that facilitates
easy access to various shooting locations. He resides in a two-bedroom
apartment on a lower floor on Cibubur Village Apartment to accommodate frequent
movements due to his job requirements. Tigor values the location and
convenience highly, and his willingness to move within the same community,
despite minor issues, indicates his overall contentment and preference for the
locality provided by Allure Realty Group.
Alma,
a young professional who relocated from outside Jakarta for work, has chosen to
rent a two-bedroom unit at Sudirman Park. The strategic location offers her a
practical solution to avoid long commutes and effectively save on transport
costs. Alma praises the responsiveness and helpfulness of the landlord, which
have significantly contributed to her positive rental experience, making her
process of settling into the city much smoother.
Indah
works in Kuningan, Jakarta, and has opted for a two-bedroom apartment in
Kalibata City’s Flamboyan tower to be closer to her workplace. She selected
this apartment after an extensive online search, drawn by its affordability and
adequate facilities compared to other listings. While generally satisfied with
her living situation, Indah appreciates the apartment’s accessibility and
essential services, though she notes some maintenance issues that could be
improved.
Collectively,
these customer insights reveal that strategic location, cost management,
responsive management, and suitable living conditions are key factors
influencing tenant satisfaction at Allure Realty Group. These elements
highlight the importance of maintaining high standards in property management
to meet the diverse needs and expectations of residents.
Based
on the questionnaire survey conducted, the author also analyzes it into customer
profile, behaviour, and cluster analysis. The author has calculated the samples
required by using Slovin equations, which is 204 respondents. The author has
achieved 230 respondents for this research.
Cluster
Analysis
The
cluster analysis results depicted in Appendix A provide a comprehensive
breakdown of how different indicators, related to various apartment features
and amenities, vary across four distinct clusters. These clusters represent
different types of preferences or profiles of potential renters or apartment
seekers.
Table 5. Cluster Size and Interpretation
|
Cluster |
Size |
Interpretation |
|
1 |
19 |
Outliers with minimum preferences |
|
2 |
81 |
High Preferences |
|
3 |
62 |
Simple Preferences |
|
4 |
67 |
Comfort Preferences |
Cluster Interpretation
Cluster
1: Outliers with minimum preferences
Cluster
1 stands out as a group characterized largely by its minimal preferences for
additional amenities and luxury features. The data suggests that this cluster
has generally negative mean values across most indicators, indicating a lack of
interest or favorability towards the attributes typically associated with
higher end living conditions. This could reflect a demographic that is either
budget-conscious or simply indifferent to luxury, possibly due to lifestyle
choices or financial constraints.
Demographically,
Cluster 1 predominantly consists of males (13 males compared to 6 females),
showcasing a gender skew. Additionally, this cluster includes a diverse age
range but is notably sparse in younger and older age brackets, suggesting it
mainly comprises middle-aged individuals. The geographic data reveal that most
members reside in Jabodetabek, pointing to an urban-centric lifestyle that may
influence their living preferences and financial behaviors.
In
terms of occupation and education, Cluster 1 is primarily composed of high
school graduates who are employed, suggesting that the cluster might consist of
working-class individuals. This educational and professional background could
be linked to their practical and financially conservative outlook towards
housing and amenities.
Economically,
this cluster is defined by lower average monthly expenses, with most members
spending less than Rp 5,000,000. This economic behavior aligns with the overall
profile of the cluster as being less inclined towards expenditure on
non-essential luxuries.
Regarding
housing preferences, a significant proportion of this cluster shows reluctance
towards engaging in rental agreements that extend for at least one month. This
could indicate a preference for more permanent or owned accommodations, or
perhaps a transient lifestyle that does not align with long-term rental
commitments. This characteristic further solidifies the cluster's identity as
one with minimalistic and practical preferences in their housing and lifestyle
choices.
Cluster
2: High preferences
Cluster
2 is distinctly characterized by its high preferences for luxury and
well-equipped living spaces, as demonstrated by the positive means across
almost all indicators. This cluster represents a group of individuals who not
only seek high-end amenities but also are willing to pay premium rent prices
for enhanced services and features. Their choices reflect a desire for a
comfortable and upscale living environment, suggesting a lifestyle that values
quality and convenience.
Demographically,
Cluster 2 primarily consists of middle-aged adults, with a strong
representation in the 36-45 age group. It has a significantly higher number of
males (63) compared to females (18), indicating a possible gender-based
preference for certain types of luxury or amenities in their living spaces.
This age group often represents established professionals who have reached a
certain level of financial stability and personal lifestyle preferences.
Geographically,
like Cluster 1, the majority of Cluster 2's members are from Jabodetabek. This
urban setting likely influences their preferences for apartments that offer
convenience and luxury, mirroring the fast-paced, high-standard urban lifestyle
that Jabodetabek offers.
In
terms of occupation and education, Cluster 2 contains a high number of
employees and entrepreneurs, suggesting that it consists of professionally
established individuals. The presence of higher education levels within the
cluster further supports this, indicating that the members are not only
career-oriented but also well-educated, which may correlate with their high
standards for housing.
Economically,
this cluster shows a diverse range of expenses. While they generally lean
towards the higher end of the spectrum, there is variability, which suggests
that even within this group, there are varying degrees of financial willingness
or capability to invest in premium living.
Regarding
housing preferences, the majority of this cluster is interested in renting for
at least one month, which may reflect either a stable yet flexible lifestyle
suitable for professionals with demanding careers or a preference for not
committing to long-term homeownership. This inclination towards temporary yet
high-quality living arrangements is indicative of their transient lifestyle
needs, driven by professional commitments or a preference for flexibility in
accommodation choices.
Overall,
Cluster 2 is a vivid portrait of successful, financially stable, and mature
individuals who prioritize quality and luxury in their living arrangements,
mirroring their broader life choices and professional success.
Cluster
3 Simple preferences
Cluster
3 is defined by its simple preferences, as evidenced by the predominantly
negative means across most indicators, albeit less extreme than those seen in
Cluster 1. This pattern suggests that the individuals in this cluster display
either a moderate disinterest in extensive amenities or a flexibility in their
housing needs. This could be indicative of a practical approach to housing,
where functionality may take precedence over luxury or additional features.
Demographically,
Cluster 3 is slightly more balanced in terms of gender but leans towards a
female majority (29 females to 33 males). There is a significant presence of
individuals within the 26-35 age range, suggesting that this cluster includes a
younger demographic. This age group often encompasses young professionals and
early-stage families, which might explain their practical approach to housing
and amenity preferences.
Geographically,
this cluster exhibits diversity, with members spread both in Jabodetabek and
outside. This distribution suggests that the preferences for simpler housing
features are consistent across different urban and possibly rural settings,
indicating a broader trend of flexibility or indifference to high-end amenities
among this group.
In
terms of occupation and education, Cluster 3 includes a considerable number of
students as well as individuals holding bachelor's and master's degrees. This
educational background points to a demographic that is likely still
establishing their careers or in the early stages of professional development.
The presence of students also suggests a transient lifestyle, which may
contribute to their flexible attitudes towards housing.
Economically,
members of this cluster generally fall into a mid-range category of monthly
expenses, typically between Rp 5,000,000 and Rp 15,000,000. This financial
range supports the notion that the cluster's members are likely
budget-conscious, balancing their income with a practical approach to living
expenses.
Regarding
housing preferences, there are mixed responses concerning long-term renting,
with a considerable number inclined not to commit to renting for at least a
month. This could reflect a preference for short-term leases or more transient
living arrangements, which align with the lifestyle of younger individuals and
students who may prefer not to be tied down by long-term financial commitments.
Overall,
Cluster 3 represents a group of younger, educated individuals who value
simplicity and flexibility in their housing choices. This reflects a broader
trend among young adults who prioritize practicality and financial prudence in
their living arrangements, possibly driven by their life stage and economic
circumstances.
Cluster
4: Comfort preferences
Cluster
4 is characterized by its comfort preferences, exhibiting a combination of
negative and positive means across various indicators. This group notably
excels in several specific features, enhancing their living experience. These
features include effective word-of-mouth recommendations for finding housing,
convenient locations near work, leisure activities, and transportation, along
with excellent hospitality from owners or agents, receptionists, and general
administrative staff. Additionally, the cluster values ease of access,
well-managed regulations, diligent maintenance, and overall appearance,
suggesting a discerning approach to the living environment. This nuanced
preference pattern indicates that while the cluster values high-end amenities,
its members are selective and prioritize only certain luxury features they deem
essential.
Demographically,
Cluster 4 is predominantly female, with a significant majority (47 females
compared to 20 males). It spans a wide age range but is notably concentrated
among younger individuals, particularly those between the ages of 18-25 and
26-35. This demographic profile suggests a group that may value modern and
stylish living environments that align with a dynamic and perhaps socially
active lifestyle.
Geographically,
like several other clusters, this group is primarily based in Jabodetabek. The
urban setting likely influences their preferences for apartment features that
provide comfort and convenience, suitable for the fast-paced urban lifestyle.
The
occupational and educational backgrounds of Cluster 4 are quite diverse,
including students and entrepreneurs, many of whom hold bachelor’s or master's
degrees. This educational level, combined with their entrepreneurial
activities, suggests a group of individuals who are intellectually engaged and
economically active, likely valuing spaces that support both work and
relaxation.
Economically,
Cluster 4 tends to have higher monthly expenses compared to other clusters,
with many members spending above Rp 5,000,000. This financial outlay is
indicative of their prioritization of comfort in their living arrangements,
willing to invest more in their environment to ensure it meets their standards
of comfort and convenience.
Regarding
housing, there is a clear preference in this cluster for renting accommodation
for at least one month, possibly reflecting stability in their living
arrangements that accommodates their professional or educational commitments.
This preference for longer-term renting could also be driven by the need for a
secure and comfortable base that supports their lifestyle and career or
educational pursuits.
Overall,
Cluster 4 epitomizes a segment of the population that seeks comfortable, yet
selectively luxurious living spaces. This cluster's preferences are a blend of
practicality and pleasure, aiming to create living environments that enhance
their quality of life without being overly lavish.
Solution and Proposed Implementation
The SWOT analysis is a
structured approach that combines data gathered from an internal analysis of a
company's strengths and weaknesses (S and W) with external opportunities and
threats (O and T) to determine strategic implications
Table 6. SWOT Analysis
|
Strength
(S) · Allure
Realty Group's family-run nature and strong community involvement build solid
tenant relationships, creating a strong base of loyal customers. · Has
built long-standing trust with property owners and maintains consistent
service quality, enhancing its reputation and reliability. · Due
to its smaller scale, Allure Realty Group can offer customized services,
which cater to various customer needs effectively. · Has a
wide range of apartment types caters to different social classes, broadening
its market reach. |
Weakness
(W) · Weakness
in utilizing digital channels fully for marketing and customer engagement. · Limited
resources compared to larger competitors, which could hinder rapid scaling
and adaptation to market changes. · Concentrated
focus on Jabodetabek area might limit exposure to other potential markets and
opportunities. |
|
Opportunities (O) · Potential
to expand services outside Jabodetabek or into new customer segments. · Opportunity
to integrate more advanced property management and marketing technologies to
enhance efficiency and customer service. · Post-pandemic
shifts in living and working habits could open new avenues for service
diversification. |
Threats
(T) · Increasing
number of competitors in the property management space. · Vulnerability
to economic downturns impacting tenant’s ability to afford rents. · Potential
changes in property rental and management regulations could pose challenges
to operational flexibility and compliance. |
SWOT
analysis highlights strategic directions that Allure Realty Group could pursue
to not only leverage its internal strengths and counteract external threats but
also to strategically address its weaknesses while capitalizing on emerging
opportunities
Table 7. SWOT Analysis
|
External |
Strength (S) |
Weakness (W) |
|
Opportunities (O) |
S-O Strategy 1. Utilize
strong community relationships to expand into new geographic or demographic
markets. 2. Utilize
individualized service capabilities to introduce technologically enhanced
services, improving operational efficiency and customer satisfaction. |
W-O
Strategy 1. Increase
digital marketing efforts to enhance online presence, utilizing advanced
digital tools to attract a broader audience. 2. Explore
partnerships or alliances to overcome resource limitations, enabling
expansion into new market segments that demand flexible living arrangements. |
|
Threats (T) |
S-T Strategy 1. Strengthen
existing community ties and trust to maintain a competitive edge over new
entrants in the market. 2. Leverage
diverse housing options to adapt quickly to regulatory changes, ensuring compliance
and maintaining market relevancy. |
W-T
Strategy 1. Diversify
market focus beyond Jabodetabek to reduce dependence on a single market and
mitigate risks from economic fluctuations. 2. Develop
a robust digital infrastructure to reduce the impact of rising competition
and to cater to a digitally savvy tenant base. |
Proposed
Segmentation, Targeting, Population
The proposed
segmentation, targeting, and positioning for Allure Realty Group are as
follows:
Table 8. Proposed STP
|
Category |
Cluster 2: High Preferences |
Cluster 4: Comfort Preferences |
|
Demographic |
Middle-aged adults (36-45), predominantly male. |
Younger individuals (18-35), predominantly female. |
|
Geographic |
Residents of Jabodetabek, urban-centric lifestyle. |
Based in Jabodetabek, potentially more diverse
locations within the area. |
|
Behavioral |
Preference for luxury amenities, willing to pay
premium prices, interested in long-term renting. |
Seeks comfort, selective about luxury, values
effective services, and good maintenance. |
|
Psychographic |
Values quality, convenience, high standard of
living, status conscious. |
Prioritizes modernity, style, comfort, social
connectivity, and professional functionality. |
|
Targeting |
Targeted for premium real estate, luxury vehicles,
high-end consumer goods, and luxury services. |
Targeted for modern residential apartments with
high-tech amenities, co-working spaces, trendy cafes, and wellness centers. |
|
Positioning |
Emphasize exclusivity, luxury, and convenience.
Highlight the quality and premium nature of amenities and the
status-enhancing aspects. |
Focus on modernity, style, and comfort. Highlight
stylish design, modern amenities, and the community aspect for young
professionals. |
Proposed
Marketing Mix 7P
Based on the research
conducted by interviews and survey, the proposed Marketing Mix 7P will be as
below:
1.
Product:
The products offered by Allure Realty Group were varied and classified by each
type of apartment from a different perspective. According to the survey
conducted, the most desirable option for customers is a middle-class apartment
with two bedrooms. Both the interior and exterior play pivotal roles in
influencing customer choices. When examining the preferred amenities, factors
such as cleanliness, laundry facilities, parking spaces, and a gym are of
utmost importance to customers, outweighing the significance of features like
swimming pools and salons. Security is another crucial factor, with customers
showing a clear preference for robust safety measures within the neighborhood.
In terms of furnishing, customers favor fully furnished apartments where
essential furniture and appliances are provided by the landlord or property
manager. These typically include items like beds, sofas, dining tables, chairs,
televisions, air conditioners, water heaters, and basic kitchen appliances such
as refrigerators and stoves. The inclusion of these amenities makes the
apartments more appealing; meeting customers' needs for convenience and comfort.
2.
Price:
The price provided by Allure Realty Group is contingent upon the type of unit,
its location, quality, and the available facilities. The pricing is considered
affordable in the Jabodetabek area and can be subject to negotiation depending
on the chosen duration by the customer. According to the questionnaire
responds, a significant number of respondents indicated a preference for
renting apartment units priced between IDR 1,000,000 and 5,000,000 per month.
Their price range preference mirrors their socioeconomic background, which mainly
consists of individuals from the lower to medium social class. This pattern
indicates that affordability is an important consideration for these
respondents, influencing their choices regarding renting. This information is
crucial for analyzing market demand and customizing apartment options to align
with the financial limitations and preferences of this specific demographic
group. By setting rental costs within this specific range, property managers
and developers can satisfy the needs of an important part of the market for
property. This has the potential to boost occupancy rates and enhance tenant
satisfaction.
3.
Promotion:
According to the data collected from respondents, promotional strategies emerge
as a significant factor influencing their rental decisions. Notably, the most
effective method of promotion identified involves one-on-one explanations
directly from the owner or agent. This personalized approach ensures that
potential tenants receive detailed and tailored information about the apartment
units, which helps align the property features with their specific needs. Such
direct interactions are valuable as they allow for immediate feedback and
clarification, enhancing the likelihood that tenants will find the rental
suitable for their preferences and requirements. This method not only boosts
tenant satisfaction but potentially increases the chances of closing rental
agreements, as customers feel more confident in their decisions when they
understand that the offerings align closely with their expectations.
The
second-best way to promote the apartment is through the utilization of testimonials
from relatives or trusted individuals of potential renters. This approach
leverages the power of personal recommendations, which are highly valued in the
decision-making process for many prospective tenants. When individuals are
considering where to live, they often consult their social circle for advice
and experiences. Testimonials from family members, close friends, or trusted
colleagues can provide a sense of security and credibility, assuring potential
renters of the quality and reliability of the apartment. This form of promotion
taps into the trust and emotional connections within these relationships,
making it a potent tool for influencing decisions. Additionally, testimonials
can highlight specific attributes of the apartment and the living experience
that may not be immediately apparent through traditional advertising, such as
the responsiveness of management, the friendliness of the community, or the
convenience of the location. Consequently, encouraging current satisfied
tenants to share their positive experiences through word-of-mouth can
effectively attract new renters who are seeking reassurance and personal
validation in their choice.
Another
efficient approach to advertise apartment units is by strategically utilizing
internet search engines as well with price promotions or discounts. This method
is especially beneficial in situations where social media marketing could not
achieve the expected result. Property managers may greatly improve the
visibility of their properties by optimizing an apartment's website for search
engines. This approach specifically focuses on potential tenants during the
exact time they are actively seeking housing choices, giving it an
exceptionally effective kind of targeted marketing. Moreover, clearly
displaying price promos or discounts on these search-optimized pages might
further attract potential tenants. For example, rent for a year just to pay for
11 months. Financial rewards not only improve the appeal of the property
through potential savings, but also create a sense of urgency, encouraging
faster decision-making. This technique leverages the fact that search engine
use is motivated by specific intentions, resulting in higher conversion rates
compared to the more general and less targeted approach commonly seen on social
networking platforms.
4.
Place:
According to the responses gathered, the primary factor influencing the choice
of an apartment is its strategic proximity to the respondent's workplace or
educational institution. This preference underscores the importance of location
in minimizing daily commute times and enhancing convenience for residents who
need to access their workplaces or schools regularly. The second most
significant consideration is the accessibility of public transportation or
nearby toll roads. Easy access to major transportation routes is crucial for
those who rely on public transit or personal vehicles to navigate urban areas
efficiently. Interestingly, the proximity to restaurants, minimarkets, or other
entertainment venues ranks as the least important factor. This suggests that
while such amenities contribute to the quality of urban life, they are
considered less critical when compared to the essential need for easy commute
and transportation access. These insights reflect a pragmatic approach by
residents, prioritizing practical commuting concerns over lifestyle amenities
when selecting an apartment.
5.
People:
People are a pivotal element in the marketing mix, profoundly influencing the
perception and execution of a business's services or products. This component
underscores the significant role played by everyone involved in the production
and delivery processes. These individuals directly impact customer satisfaction
and shape the overall experience with the service or product. According to
survey responses, the communicative abilities and friendliness of the owner or
agent are critical factors influencing customer decisions. Their ability to
engage positively with potential tenants plays a decisive role in the rental
process, as these interactions often set the tone for the entire customer
experience.
Furthermore,
security and general administrative staff who are knowledgeable about all
operational aspects of the property also play a vital role. Their understanding
of essential processes such as parking permit issuance, WiFi subscription
management, and the checking of gas and electronic systems is crucial. These
processes, often seen as peripheral, are integral to ensuring tenant safety and
convenience, directly impacting the attractiveness of an apartment unit.
Lastly,
the role of an informative receptionist cannot be underestimated. As the front
line of tenant interaction, their ability to provide clear, helpful information
significantly affects a potential customer's choice. Whether answering queries
or directing residents and visitors efficiently, their knowledgeable and
accommodating demeanor enhances the living experience, contributing positively
to the decision-making process regarding apartment rentals. Collectively, these
roles demonstrate how crucial skilled and personable staff are to the success
of residential property operations, directly influencing tenant satisfaction
and retention.
6.
Process:
Process refers to the procedures, mechanisms, and flow of activities by which
services are consumed or it is about designing and implementing
customer-centric approaches to service delivery. According to survey responses,
the process from receiving information to signing the lease contract is
critically important for individuals considering renting an apartment unit.
This process needs to be clear and efficient, as it significantly influences
the decision to rent. Additionally, the simplicity and clarity of the
regulations and rules established by building management play a crucial role in
the decision-making process. Prospective tenants value straightforward
guidelines that are easy to follow and understand. Maintenance processes are
also a vital consideration; the ability to address and resolve common issues
such as leaks, burnt out lights, and appliance malfunctions quickly and
effectively makes a significant difference in choosing to rent a particular
apartment. These factors collectively impact the overall attractiveness and
livability of apartment units, influencing potential renters' decisions.
7.
Physical
Evidence: Physical evidence refers to the tangible and visible cues that
provide customers with a sense of the company's service quality and existence
before purchase. Based on the survey responses, it is evident that the
appearance of an apartment unit plays a crucial role in attracting customers
and is a significant factor in their selection process. A well-presented
apartment, featuring modern design, clean aesthetics, and a well-maintained
environment, strongly influences potential tenants' decision-making. The visual
appeal of an apartment not only creates a positive first impression but also
suggests a higher standard of living and quality of management. This can
reassure prospective tenants that the property is well cared for and that they can
expect a comfortable and satisfying living experience. Therefore, owner and
agent need to prioritize the aesthetic aspects of their units to enhance
attractiveness and competitiveness in the market.
Based on the
result and discussion, the author concludes some points to answers research
questions. Allure Realty Group's external analysis presents a complex landscape
shaped by various factors across the PESTEL and Porter's Five Forces
frameworks, coupled with critical insights from competitor and customer
analyses. Politically and economically, the necessity for stability is
paramount as Allure Realty Group navigates regulatory shifts and economic
volatility that have direct implications on the property market. Social trends
indicating changing lifestyles and housing preferences demand that Allure
Realty Group stays attuned to evolving consumer demands to remain relevant.
Technological advancements offer opportunities for operational efficiencies but
require Allure Realty Group to keep pace with rapid digital transformations in
the sector. Environmental considerations are increasingly influencing tenant
choices, pushing Allure Realty Group towards adopting more sustainable
practices. Legally, the company must vigilantly monitor and comply with
property management regulations to avoid potential pitfalls. From the
perspective of Porter's Five Forces, the highly competitive rivalry compels Allure
Realty Group to differentiate itself through unique services, while the
moderate threat of new entrants highlights the advantage of Allure Realty Group’s
established market presence and community relationships. Both the bargaining
power of suppliers and buyers significantly shape Allure Realty Group's pricing
and operational strategies, and the rising prevalence of substitutes like
short-term rental platforms introduces new challenges that require strategic
responses. Competitor analysis reveals a trend towards service diversification
and technological integration, suggesting that Allure Realty Group must
continually innovate and perhaps target niche markets to sustain its
competitive edge. Customer analysis underscores a preference for Allure Realty
Group’s personalized service and community involvement but also points to a
growing demand for technological convenience and flexibility, which Allure
Realty Group must integrate into its service offerings to enhance customer
satisfaction and retention.
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Copyright holder: Aliya Mayendra (2024) |
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