Competitor Analysis

The principal bases of competition in the real estate development business are
location, product, price, financing, execution, completion, quality of
construction, brand and service. --- Megaworld Financial Report 2013

Market Players

Competitor Snapshot
Company Name

Market
Value

104.2B
n

Description

351 Bn

Value Proposition

Megaworld Corporation is the country's leading real estate

developer and No. 1 business process and outsourcing (BPO) office
developer and landlord in the Philippines.
Has introduced 15 successful large-scale, master-planned mixeduse townships across the country

Building visions

Largest property developer in the Philippines, operating prime

commercial spaces throughout the country.
It is owned by the Ayala group of companies.

Homes built to last,

spaces
that
go
beyond the ordinary

84.3 Bn

Real estate arm of the JG Summit Holdings, Inc.,

To date, RLC has 32 shopping malls, 57 residential buildings, 8
office buildings, 31 housing developments and 9 hotels all over the
country.

Build good things

better, to make life
more meaningful for
the Filipino People

423.9
Bn

A trailblazer in the middle market residential condominiums. SMDC

develops primary homes that attract customers looking for
conveniently located, aspirational, yet affordable residences.

We build
Millions

148.7
Bn

Enjoys the patronage of both new and repeat institutional clients

whose businesses have benefited from DMCIs on-or-ahead-ofschedule completion philosophy.
It has successfully completed over 500 projects to date. These
landmark
infrastructures
symbolize
the
expertise
and
professionalism of the Filipino engineer.

Feels real good to be

home

to

serve

PRODUCT
Segmentation, Targeting, Positioning, New Product Development
Process

Product Snapshot
Company Name

Office

Commercial Residential

Hotel/Res
ort

Megaworld Corporation
Company
Name

Target
Market
High-end
and UpperMiddle
markets

Segmentation and Positioning

Megaworld has pioneered the mixed-use development of real estate

in the form of community townships that fuse the live-work-play
concept with the demands of BPO firms.
While the Megaworld brand caters to the upscale segment, its two
subsidiaries, Empire East Land Holdings and Suntrust Properties,
seek a wider range of housing customers. Empire East Land Holdings,
Inc. targets the middle-income housing segment with township
residential projects located in and out of the metro. In July 2012, it
partnered with the Kazuo Okada Group for a joint venture to develop
a P45-billion luxury condo project in Pagcor Entertainment City.
In 2011, Megaworld unveiled a total of eight new projects mostly
luxury condos in the business districts of the metro (specifically in
Eastwood City, Newport City, Bonifacio Global City, Araneta Center,
and Makati and one in Mactan, Cebu). In 2012, Megaworld earmarked
P25-billion to develop ongoing projects while investing P65-billion to
further develop Uptown Bonifacio for the next 20 years. It topped off
its 2012 achievements with its turnover of Greenbelt Madison in
Legaspi Village, a luxury condo with fully-furnished units that are
ready for occupancy. In 2013, Megaworld allocated P25-billion to
develop its latest integrated township project in the West Visayas,
the 54-hectare Iloilo Business Park slated for completion by 2015.

New Product
Development
Process
Offers a wider range
of after-sales
services to RFO
buyers such as
leasing and resale
management,
turnover and
maintenance, and
free interior design
to RFO buyers.

Direct Competitors
Company
Name

Target
Market
Middle to
Upper
Middle
Markets

Segmentation and Positioning

New Product
Development
Process

First property developer to introduce practices that promote sustainable

land development, from solid waste and storm water management to
local community engagement.
The upscale brand, Ayala Land Premier, launched in November 2013 its
latest offering Garden Towers in Ayala Center. Middle-upper market
brand Alveo Land has ongoing projects in Bonifacio Global City (The
Meridien), Cebu (Solinea), and Tagaytay (KasaLuntian) while new projects
in the metro and emerging provincial cities such as Laguna, Cavite, Lipa,
Cebu, Bacolod were launched by middle and low-middle market brands,
Avida and Amaia Land.

Middle to
Upper
Middle
Markets

RLC has four brands Robinsons Luxuria, Robinsons Residences,

Robinsons Communities, and Robinsons Homes each with their distinct
target market and type of development. One of its newest projects under
the Robinsons Communities brand is the Axis Residences, a two-tower
42-storey development set to rise within the Robinsons Cybergate
Complex in Mandaluyong. The project is a joint venture by RLC and
another property giant, Federal Land Inc.

Robinsons Mall
LingkodPinoy Center
aims to make
government agencies
(e.g. SSS, PhilHealth,
DFA, LTO, etc.)
accessible to many.
Go Hotels 30 more
to be built in the next
5 years

Direct Competitors Continued

Company
Name

Target
Market
Lower
Middle,
Middle,
Upper
Middle
Markets

Segmentation and Positioning

SMDCs two brands, SM Residences and M Place, target the premium

middle market with high-rise condo living, with the latter catering
specifically to the youth market.
Also under the residential segment of SM Land, Highlands Prime is a
leisure real estate developer within Tagaytay Highlands, an exclusive
mountain resort and residential complex.

New Product
Development
Process

Indirect Competitors Continued

Company
Name

Target
Market
Lower-Middle to
Middle Markets

Segmentation and Positioning

DMCI Homes very quickly found its niche among the

countrys leading property developers, cornering the
market on resort-style residential developments.
DMCI Homes prides itself on its strong community
values, geared towards building and providing ideal
homes even for underprivileged Filipinos.

New Product
Development
Process
Under the DENRs Adopt-AnEstero program, DMCI
Homes has signed on to
assist in the much-needed
rehabilitation of Makatis
Pasong Tamo River. The
company also entered a
partnership with the District
3830 Rotary Homes
Foundation and CFC ANCOP
Tekton Foundation,
bankrolling a P12-million
housing project for
Paraaques informal
settlers.

PRICE per Location

Pricing Objective, Pricing Strategy
For side-by-side comparison, the group focused on locations where
more competitors are present for Megaworld.

Price (Residential; in PhP)

Name of
Developer

Makati

Taguig

Ortigas/
Mandaluyo
ng

Quezon
City

Ave.
Price
Range
per Sqm

Megaworld

3.1M
20.7M

2.4M
29.9M

NA

4.2M
13.2M

104k
178k

Ayala Land
Inc

5.5M
168.1M

10.6M 32M

1.6M 4.9M

3.7M 19M

70k
305k

Robinsons
Land Corp

3.8M 4.5M

3.8M
23.1M

1.9M
18.8M

NA

60k
127k

SMDC

1.8M 5.5M

1.7M 3M

1.9M 4.9M

1M 9M

77k
131k

DMCI

2.3M 6.9M

NA

1.9M 6.3M

NA

68k 90k

Place or Distribution
Distribution Objective, Distribution Strategies

Distribution Channels (Common

to All)

INTERNET

DIRECT
SALES
LICENSED BROKERS*

DIRECT MAIL

INTERNATIONAL

Promotion

urrent Promotions
Globa
l
Local

Megaworl
d
Ayala
Land Inc
Ayala
Land
Premier

Mabuhay/
Balikbayan

Smile

Avis

SMDC
Robinson'
s Land

Smile

DMCI

Smile

Marketing and Promotions Budget vs. Revenue

(2012 2013)

Megaworld
Ayala Land

2013
2012

*in billions
*in billions
REVENU PROM
PROM
% REVENUE
E
O
O
21.25
0.589 3% 18.173 0.643
81.523
3.37 4% 59.932 1.059

SMDC

20.916

Robinsons Land
Corp

DMCI Homes

2.05

Remarks

4%
2%

Advertising and Promotions

Marketing is anchored Training
and Branding strategies
Maximized partnership with
other SM Prime Holdings
subsidiaries (e.g. Malls and
Cinema)
Promo Exp is consolidated.
Maximized partnerships with
other JG Summit subsidiaries
(e.g. Summit Media, Cebu Pac,
Robinsons Malls & Cinema, etc.)

10
%

22.58

1.76

8%

5.3

2.214 42
%

4.105

1.908

46%

12.165

0.309 3%

9.219

0.366

4%