Marketing and Competition

Marketing of Products and Services

Marketing of Products and Services The Company has established an after-sale service policy to continuously take care of customers in every project. It sets up 3 companies that offer business services relating to real estate development. The services are as follows: 1. Marketing Strategy • Customers’ Experience Management Apart from focusing on the ability to compete in the market, In order to provide services to the customers, the Company the Company also emphasizes the marketing strategy which designs the standard of the touch points to impress the customers is different from project to project on various aspects as follows: and create impressive experiences. Any recommendations or • Research complaints of customers will be responded to. Activities will also be

The Company establishes a guideline and direction of project organized on a regular basis to build relationship with customers. management, chooses a location and analyzes target group All of the above have built confidence in the brand and enabled of customers through survey and data collection so that the the customers to proudly make a referral to others. The success products can be released into the market properly. Moreover, of this strategy can be seen from the sale of new projects after the residents have already moved in, the information launched, most of which is a result of referral which has been on the residents living in various projects is compiled. Their increasing every year. On average, 50% of the sale volume of lifestyle and needs will be analyzed to develop a product and a project is from referral. service that match the customers’ needs for the development of products and services using human-centric design to meet customer needs to have a good life and to live happily with a • Organizational Image Management Through Brand Communication balance in the Livable Community. The Company has launched a campaign to communicate the “the Better Balance” concept which LPN determines to • Selling Price Establishment incorporate into every work process to ensure that LPN’s

The basic factor for selling price establishment is the selling price “home” is the most balanced “home” for living. The 3 of the competitors’ projects located in the same neighborhood components of balance in the Better Balance concept are in the market. Also, the Company gives importance to the direct perfectly included in all LPN project developments. and indirect project costs control which is another variable that allows the Company to establish appropriate selling price while also maintaining the planned returns of investment even in severe competitive situation. that suits the needs of target groups while maintaining the planned returns of investment even in severe competitive situation.

• Marketing Communication

The Company will survey the market and analyze competitors before establishing a market communication plan to communicate with target customers. The Company focuses on communicating, advertising and promoting the projects directly to the target group of customers who have dispersed around the project area. Customers who used to visit the projects are also communicated to via big and small advertisement billboards and direct mails. Special offers are also available to motivate the customers to reserve to buy a condominium unit at the launching event. The use of online media to reach the target groups is promoted. The Company can maintain very low marketing expenses which is around 1% of the income from sales.

2. Marketing The marketing, marketing communication and marketing activities have been in place especially during the opening of new projects when there is the highest number of customers visiting the projects. Marketing activities include:

Direct Mail and SMS:

When new projects are launched, the Company will send out a direct mail and SMS to the customers to promote the projects and offer special discount on the project opening day. Interested customers can contact the Sales Department or visit the show units at the projects as stated in the direct mail. Offline media: The advertisement is done through various media such as billboards in the area surrounding the project sites and in the department stores, printed media like magazines and pamphlets, etc. Online media: Nowadays marketing communication through digital media such as internet, mobile application, social media and online marketing is important for the organization and customers. They are used as a communication tool and widely accepted because they can efficiently reach target groups, reduce cost, and control expenses. The communication can be done anytime and anywhere. The Company has continuously developed online media as a channel to communicate project information and progress to the customers in a timely and convenient manner. In addition, the interaction between the Company and customers brings about perception, acceptance, acquaintance, trust, reliability and positive image building and leads to the creation of reciprocal participation. Direct Mail and SMS: When new projects are launched, the Company will send out a direct mail and SMS to the customers to promote the projects and offer special discount on the project opening day. Interested customers can contact the Sales Department or visit the show units at the projects as stated in the direct mail. Exhibition Booth: It is the proactive approach to public relations with the focus on having an exhibition booth at department stores close to the project location and business center or at the House and Condo Show which is organized annually in order to reach the target group of the projects. Special Offer: Special offer is available to customers who reserve to buy condominium units at the opening of the project such as special price which is offerred only on the opening day or free furniture, kitchen set or air-conditioners, etc. 3. Target Group of Customers The target group of customers of the Company is the people who are looking for a residence that is conveniently located in a densely populated area, not far from transportation system or expressways and equipped with convenient facilities. It includes the people of all age groups i.e. children, young people, working people and the elderly who are middle to low-income earners and are currently live in a rented house, apartment or live with their parents but wish to have a place of their own to build a new family. From 2018, the Company has developed new projects to serve the needs of the customers in the middle to low-income group who are looking for a vacation home by the beach or with an ocean view. The projects are developed in Pattaya and Cha-am.

4. Customer Characteristics

The customers are categorized by the characteristics and purpose of buying/renting as follows:

4.1 Customers by Characteristics

1) Suspects: are the target customers who have never visited any projects but the Company has their contact information and is able to contact them. 2) Prospects: are the target customers who have visited the projects developed by the Company and the Company has their contact information. 3) Customers: are the customers who have already reserved to buy a condominium unit. 4) Co-owners: are the customers who have already transferred the ownership of a condominium unit and become a joint owner. 5) Tenants: are the customers who rent for residential purpose and for commercial purpose.

4.2 Real Estate Project Buyer

The customers in this group are individuals who buy condominium unit mainly for residential purpose. At present, the number of customer base in this group is more than 100,000 people, some of whom are from referral as a result of trust in “Lumpini” brand. According to the data collection of LPN Wisdom, the customers can be categorized by the buying objectives and behaviors into six groups as follows: 1) Group of buyers for their first home - who are at the start of their career and in need of owning a quality residence with reasonable price. 2) Group of buyers for their second home - who needs a residence located in the business center to save traveling expenses and time. 3) Group of buyers for expansion of their family - who own a business near the project location and look for a residence which is nearby or who are looking to expand the family of their children in the future. 4) Group of buyers for their children - who look to buy a condominium that is close to an education institution that their children are going to. 5) Group of buyers for investment - who want to make a long-term investment in a property. This could be in the form of buying a condominium to rent it out because the projects of the Company are in good locations and the return of investment rate of rental is higher than the interest rate. 6) Group of profit speculators - who want to make a shortterm investment. They could be customers who are paying installments for down payment or those who are selling the condominium units before the ownership is transferred.

4.3 Real Estate Lessees

Real estate lessees can be divided into two groups as follows: 1) Rental for Residential Purposes: The majority of this group of customers is Thai and foreign high-ranking executives with high income level who are looking for a residence not far from work. Projects of the Company can respond well to the needs of this group of customers. 2) Rental for Commercial Purposes: This group of customers runs a variety of business in the Company’s condominiums.

The Company aims to build a network of retail business in the condominiums in order to provide full services to customers as well as expand to other sources of income than that from sale.

4.4 Real Estate Service Receivers

The service received is community management which is operated by Lumpini Property Management Co., Ltd.

The communities managed will only be those fully developed by the Company in order to build a positive image of the Company.

It is also a strategy to create uniqueness in terms of service.

5. Sale and Sale Channel The selling method of the Company is direct sale by the Sales Team of the Company which comprises salespersons who are experienced and have very good knowledge and understandings of the products and services of the Company. The team will provide information and recommendations for customers for their decision. The staff of other departments such as Accounting Department and Administrative Department can also act as salespersons during the launch of new projects as they are regularly trained about the products and basic sale technique. Moreover, the Company gives importance to the decoration of the sale office which is the main channel of sale, as well as the presentation of the show unit and the site to create a good impression and confidence in visitors.

6. Status and Ability to Compete At present, the real estate business has become more competitive both for horizontal and high-rise projects. Apart from major business operators listed in the Stock Exchange of Thailand, other operators also start gaining increasing share in the property market. However, the strategy of the Company is to specifically focus on the middle to upper-middle income group of customers who are in need of buying the first home. Community management under “Livable Community” strategy is the force that is driving the organization forward. Also, it is the policy of the Company to build a home at he affordable price for the customers. Therefore, the Company remains one of the major business operators, commanding the market share of almost 13%.

Furthermore, the customer base of the Company has been expanded to create opportunity for growth. The location of project development is expanded from central business district to the fringe of outer-urban area such as Rangsit and other provinces. The Company increases its ability to compete to maintain the market share by: