Final

Presenta,on by Raden Rahma Widialestari

29113470
Oct 15 , 2016
th

Introduction
The increasing of consuming
class will drive savings and
investment and retail sectors
(Salim, 2012)

66.5%
Popula,on
produc,ve
ages

Millenials
Genera,on

13.5

Million unit
around
Indonesia

Housing
Backlog

5%

4.14%

Relaxing in
Govt Policy

Stable
Macroeconomic
Indicator

Increasing
Loan-ToValue Ra,o

Ina,on
projec,on
in 2016

Company Profile
Housing Development
Development | sales | construc,on
Developed by

PT. Pesona Asri Lestari

Vision
Becoming one of the leading property
developer in Bandung and trusted by
its customers, employees, society and
other stakeholders

Mission
Providing high quality real estate that
aordable for middle class society in
strategic loca:on

Middle Income Ci:zen

21 y.o or eligible for loans
Min income IDR 7 million
House Price Range < IDR 1 billion

CPR Projects ini,ated in 2013

Team
2 investors | 1 director
8 e m p l o y e e s O p e r a , o n s ,
Marke,ng, Finance & Legal
3

Business Issue
CPR Projects planned to
have 165 Units

Completed in 3 years

100

83
56

50
0

15 22

30
2

Actual Sales
2013

2014

0
Forecast
2015

2016

The sustainability of
Cluster Pesona Regency
project depends on the
speed of unit sales

Only 39 units sold out

of 165 units planned to be
sold within 3 years of
development

Compared to its compe,tor,

CPR has just reached 24% of

sales target

Conceptual Framework

Research Methodology

Primary data:

Ques:onnaire
Interview
Secondary data:

Market research
Literature review
Financial valua:on

External Analysis
STEEP Analysis:

Sociocultural

Technological

Young Popula,on
Large Workforce
Increasing Disposable Income
Poten,al Demand for Property

Material
Engineering
Reducing
construc,on ,me
Pressed labor costs

IT and Internet
Development

Marke,ng
Intelligent Building
7

External Analysis
STEEP Analysis:

Poli:cal Legal

Economic

Eec,ve by 9th Sept

2016 the home tax is
reduced by 50 percent
(President Regula,on)
Eec,ve in August
2016 the LTV ra,o has
risen up to 15% (BI
Bank Indonesia has cut the benchmark rates down by
Regula,on)
25 points to 7.25% in order to boost the economic
Ecological
in Q2-2016
Land and Layout Permit referred to
B a n d u n g L o c a l G o v e r n m e n t About 75% property customer are using Mortgages
Regula:on Number 10 of 2015: Loans Facili,es (KPR) as their primary op,ons in
Spa:al Layout Plans and Zoning purchasing property
Regula:on in Bandung 2015 - 2035
(Rencana Daerah Tata Ruang Kota
or RDTRK)
8

External Analysis

Porters Five Forces Analysis

Summary

External Analysis

C o m p e , t o r s
Analysis using

M a r k e : n g
Mix

10

External Analysis

C o m p e , t o r s
Analysis using

M a r k e : n g
Mix

11

External Analysis
Real Estate Cycle

Summary

2015 2016 Recovery mode

(Interview with Experts)

Mid-Cycle Slowdown Phase

(DBS Property Report)
12

Internal Analysis
STP Analysis

Segmen:ng
Geographic Bandung, Jakarta,

Cimahi

Demographic Produc:ve People

who has a stable income

Monthly Income > IDR 7 million

Targe:ng
Geographic Worker who works in
Ujung Berung district

Demographic Young family (age

21-45) who has a regular income >

Posi:oning
Advantage Strategic Loca:on
Benet Beau:ful Scenery

E x c l u s i v e
residen:al housing with
quality that serves beau:ful
scenery in strategic loca:on
for young family in the
prospec:ve yet developing
East Bandung Area
V a l u e P r o p o s i , o n

IDR 7 million

Behavior First :me buyer, do

property trading and for investment

13

Internal Analysis
Marke,ng Mix Analysis

Product

Ques,onnaire Summary
Middle Class Preference of Property to Buy
1%
House
14%

Apartment
Condotel

39%
19%

Kiosk
SOHO
16%

Land Estate

7%

Rental Housing

2% 2%

1-story Type 45/72

Land Size
4%

18%

Building Size
< 60 m2

17%

1%

15%

36 m2 - 54 m2

61 m2 - 84 m2

56%

22%

85 m2 - 105
m2
> 105 m2

2-story Type 90/72

< 36 m2

36%

31%

55 m2 - 90 m2
91 m2 - 150 m2
> 150 m2

13.5% respondents KNOW about the

Cluster Pesona Regency

14

Internal Analysis
Marke,ng Mix Analysis

Place

Ques,onnaire Summary
Important Aspect for Buyer in Buying A Property
0%
8%
6%

2%

Location
Accessibility
20%

Price
Future Development

6%

Reputable Developers
5%

12%

Quality of Construction
Design

9%

Housing Facilities
6%

16%
10%

Payment Method
Environment
Brand Names

Have property rights (SHM)

In residen,al zoning
Formerly a solid ground
Have an accessibility 2 cars can be
passed
15

Internal Analysis
Marke,ng Mix Analysis

Promo:on

Ques,onnaire Summary
Media Channel for Customer Finding
Property
2%

Readystock Unit /
On Site Marke,ng

14%

Online Marketplace
29%

9%

Property Agent
Social Media

10%
19%

Par,cipa,ng in BTN
Exhibi,on

Newspaper

17%

Property Community
Exhibi,on
Other

Sales Promo,on

16

Internal Analysis
Marke,ng Mix Analysis

Ques,onnaire Summary

Price
Building Land
Size

Area

45 m

100 m

72 m

72 m

Price

Feedback of Pricing Strategy

Down
Payment

120-months 300-months Interest

Installment Installment

3%

Rates
23%

538.000.000

107.600.000

5.126.207

4.415.115
11.5%

950.000.000

285.000.000

9.607.975

8%

6.821.681

1%

42%

10%
15%

Adding 40 50 percent of total cost to

COGS

28%

33%

Inexpensive
Expensive
Affordable
Too High on Down Payment
Long Installment Scheme
Deficient of Credit Loans
High in Interest Rates
Small Land Area
Other

Property Pricing for Private Residence

Based on research, the top 3 preferences

by customer, resul,ng 35 respondents feels
apracted to a small amount of down
payment, 31 respondents apracts to low
installment plan and the last is free kitchen
set.

10%

5%

19%

< IDR 300.000.000

IDR 300.000.000 - IDR 500.000.000
IDR 500.000.001 - IDR 750.000.000

13%

IDR 750.000.001 - IDR 1.000.000.000

IDR 1.000.000.001 - IDR 1.500.000.000

21%

32%

> IDR 1.500.000.001

17

Internal Analysis
Marke,ng Mix Analysis

People

Consists of 9 people
Feedback: lack of professionalism
No training for new hires
Marke,ng team is outsourced

Process

Purchasing Process in Cluster Pesona Regency

18

Internal Analysis
Marke,ng Mix Analysis

Physical Environment

Ques,onnaire Summary

67

63

Respondent
look for
wide access
road
Marke,ng Oce: no special dcor to
apract the customer

Respondent
look for clean &
ready to drink
water

62

Respond
ent look
for safety

Considera,on in choosing house

Exis,ng Environment: unaprac,ve design, has a concrete road in some places

19

Internal Analysis
Value Chain Analysis

Primary Ac:vi:es
Inbound Logis,cs: amount of
m a t e r i a l d e p e n d s o n t h e
construc,on and will be ordered in
accordance with the planning
Opera,ons: mostly is located in the
site
O u t b o u n d L o g i s , c s : s e v e r a l
construc,on equipments should be
stored in the warehouse
Marke,ng and Sales: using oine
marke,ng strategy
Service: provided by the contractor
general 3 months warranty

Value Chain Analysis

Secondary Ac:vi:es
Firm Infrastructure: adopts a simple
structure PM supervise the whole
construc,on ac,vi,es in the site and
report to the director directly
Human Resource Management:
recruited based on recommenda,on
of the PM doesnt have a
standardiza,on system
T e c h n o l o g i c a l D e v e l o p m e n t :
tradi,onal way
Procurement: raw materials from
supplier tools and equipment from
the company

20

Internal Analysis
Financial Analysis

Cashow Projec:on
Year

Housing Sales

10,500,000,000

28,310,000,000

43,815,000,000

Total Cash In

10,500,000,000

28,310,000,000

43,815,000,000

Construction Cost

3,936,600,000

12,124,728,000

19,630,512,000

Operational Cost

1,260,000,000

3,397,200,000

5,040,800,000

Engineering & Procurement Cost

21,316,750,000

360,000,000

360,000,000

360,000,000

Total Cash Out

21,316,750,000

5,556,600,000

15,881,928,000

25,031,312,000

Financial Cashflow

(21,316,750,000)

4,943,400,000

12,428,072,000

18,783,688,000

Accumulated Cashflow

(21,316,750,000)

(16,373,350,000)

(3,945,278,000)

14,838,410,000

14,838,410,000

21

Internal Analysis
Financial Analysis

Investment Valua:on
The calcula,on of Cluster Pesona Regencys
investment valua,on comes from
discoun,ng the Free Cash Flow (FCF) with
the discount rate of the project (WACC).

FCF is showing how much cash generated
from the project auer subtracted by capital
expenditure.

The Free Cash Flow calcula,on doesnt
take into account the deprecia,on because
the investment project will be sold auer
construc,on completed.

WACC

12.23%

NPV

RP 5.563.842.371

IRR

25.54%

Payback Period

2 Years 2 Months

If this project starts in early 2013, according to

payback period ?me es?mates ends in 2016.
22

Internal Analysis
Financial Analysis

Projects Timeline
Projects Timeline

Year-0

Year-1

Year-2

Year-3

Year-4

Design & Permit

Grading & Clearing

Housing Construction T.45/72

Housing Construction T.90/72

Housing Construction T.90/72 (3rd phase)

Shophouses

Design & Permit

Grading & Clearing

Sales

Construction

23

SWOT Analysis

24

Root Cause

25

TOWS Matrix

26

Marketing Strategy
Proposed Marke,ng Mix

Product

Re-develop concept
Fixing the infrastructure
F i n i s h t h e e x i s , n g
construc,on
Re-designed the 2-story
houses

Price
Re-adjust the pricing
strategy

Place

Process

Cluster Pesona Regency is

on strategic loca,on

Develop a new SOP for the

w h o l e m a n a g e m e n t
27
process

Marketing Strategy
Proposed Marke,ng Mix

Physical Environment
I m p r o v e m e n t o n
infrastructure
Re-organize the marke,ng
oce
Finishing faade look for
readystock unit
Start making stakes in the
undeveloped land

People
Having internal R&D
R e c r u i t i n - h o u s e
marke,ng

Promo:on
A d v e r , s e m e n t : d e s i g n - p r i n t distribute the ad for brochures,
leaet and yers on some spots. Put
up banners and billboard, adver,se
in local newspaper, install signboard
Sales promo,on: planning special
program
Event & Sponsorship: par,cipate in
exhibi,on, held an open house
Public Rela,on & Publicity: gathering
with communi,es
Direct Marke,ng: using SMS blast
and serving directly in marke,ng
oce
Internet Marke,ng: make a company
websites and registering the projects
ad in marketplace
28

Timeline Activities

Cluster Pesona Regencys ,meline schedule for

the 7Ps strategy, es,mated took 1 year ,me
to comple,on of the project.

29

Timeline Activities

Timeline schedule for Cluster Pesona Regency

promo,on program. This promo,on program
is part of strategic solu,on for increasing the
sales in Cluster Pesona Regency.

30

Conclusion

Referring to several experts and real-estate

books, the most important item in real-estate
industry is loca,on. Fortunately, Cluster
Pesona Regency has a strategic loca,on.
Besides that, Cluster Pesona Regency has
beau,ful scenery of East Bandung.

Supposedly, with that kind of value, the home
sales pace of Cluster Pesona Regency could be
equal or beper than its compe,tor.

The longer ,me consumed for a project to be
developed, the greater burden of costs
incurred. This will caused decreasing of prot
and reducing investor condence over the
company.

31

Thank You

32