6.1 Being a Leader in Cost Cost Leadership is the strength of the Company. The executives of the Company comprise experienced architects and engineers who deeply understand cost issues. The business alliances have been working with the Company for so long that they understand the direction and share the same goal of ensuring the efficiency of construction. The construction of a large number of projects is completed in a timely and efficient manner. All of these factors lead to new innovations which are unique to the Company.
6.2 Building Product Differentiation To ensure utmost customer satisfaction, the Company has never stopped searching for a balance that is suitable for customers’ lifestyle. It chooses to differentiate its products by designing the products under “LPN Design� concept which focuses on the design that is adequate and has usable space that perfectly responds to the lifestyles of the residents. The Company also builds a service differentiation with the emphasis on the services and the management after move-in which does not only support a private living but also encourages a perfect togetherness of everybody on the same basis and focuses on the quality of life of the residents of all age groups.
PROCUREMENT OF PRODUCTS AND SERVICES 1. Provision of Products and Services
The main products of the Company in 2017 are residential condominiums for the target group in the middle to upper range who are in need of quality residence with reasonable price which is safe, equipped with facilities and locates near public transportation system or expressways. In order to respond to the competitive situation of the market, laws and changing costs, the Company has established a project development guideline and processes as follows: 1) Survey the demands in the market in various locations both in Bangkok and peripheral areas as well as in provinces with high economic growth rate. The information received from the survey will be used to decide project locations in order to expand the customer base and locations of projects. The market situation, competitors, demand and supply and economic and social situations at the time will also be surveyed. 2) Analyze the project, plan marketing goal, consider to purchase a land and analyze the location, shape, size, surroundings, regulations of the government which can affect the project as well as competitors to decide the characteristics, size, development process and product value of the project based on the returns of investment, the suitability of the location and the format of project development.
3) Plan and design the project to be in line with the survey result by selecting quality architects and project consultants who understand the concept of the Company. The architects and engineers are very important since their performance will directly affect the costs especially indirect costs such as the sale space to land ratio which reflects the efficiency in design. Indirect cost control is one of the cost leadership strategies of the Company to maintain its ability to compete in the market. 4) Produce project development plan, financial plan, project financing plan, sale management and marketing plan as well as community management after handover plan. 5) Prepare the team and decide manpower for the management of the project i.e. sale team, construction team, ownership transfer and handover team and community management team. 6) Manage sale and marketing work as follows: - Planning of sale i.e. sale price establishment, planning of customer payment and provision of sources of loan during the ownership transfer period by considering the financial institution which offers highest benefit to the customers, sale target set up and sale team training. - Preparation of marketing plan i.e. advertisement and promotion plan to reach the target group, production of sale materials, schedule and sale opening process.
L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
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