Market the property agency (5-10) Consider the following scenario at a Real Estate Agency, ABC Realtors.

ABC Realtors has the following seven workplaces.

A) Head Office - 20 staff, located in a shared commercial building in the CBD on the 3^rd floor, a modern building with 2 lifts, a conference suite, meeting rooms, storerooms, an open office shared area and a kitchen. There is also access to the building common areas which include toilets, showers and caf venues.

The Head Office focuses on Commercial and Retail Office sales and rentals, about 50% of business is in each area.

1 Principal Licensee - Rick Parker

1 Operations Manager Sandy McGuire, who has 2 other support staff - 1 Finance Accounts Manager Kate Beck and 1 Finance Assistant Alan Hunt and

a team of 8 in sales (4 Sales Agents - All Class two Licence holders) Sandra, Lucy, Parker and Jensen and 4 Assistant Agents Peter, Colin, Fran and Anne)

A team of 8 in Property Management (1 Director of Property Management Services Ken Foley (A Class One Real Estate licence holder), 3 Property Managers (Class Two Real Estate Licence Holders) Suzie, Adam, Barney and Kent, 3 Assistant Agents all Real Estate Falco, Anna and Eric and 1 Maintenance Worker / Gardener - Howard)

B) Regional Head Office - 12 staff, located in a former bank on the main shopping street of the regional suburb. This is a single storey building with a traditional Agency retail front for the public, as well as meeting rooms and separate office accommodation at the rear. There is also a kitchen, washrooms and a stationary office / saferoom for records.

The Regional Head Office oversees the other regional Agency offices and focuses on Residential Sales (40%) and Leasing (40%) and some Retail sales (10%) and leasing (10%).

1 Licensee - Fiona Wallis (Class One Real Estate Licence and Class One Stock and Station Agent Licence)

1 Operations Manager Mick Partridge who has 1 other support staff (1 Finance Accounts Manager - Jackie Muldoon)

A team of 5 in Sales (3 Sales Agents all Class Two Licence holders, 1 in Real Estate Lewisand 2 in Stock and Station and Real Estate Jess and Niko and 2 Assistant Agents, 1 in Real Estate Canon and 1 Stock and Station Roger)

A team of 5 in Property Management (1 Senior Property Manager Janice Smith who is a Class One Licence holder in Real Estate and Stock and Station, 2 Property Managers Amy and Jenny (Class Two Agents), 1 Assistant Agent James and 1 Maintenance Worker / Gardener John)

C) Five Agency Offices (2 linked to the Head Office and 3 to the Regional Head Office operationally)

Two Agencies that are focussed on Residential Sales and Rentals are linked to Head Office one on Trent Street and one on Piper Avenue.

Each Agency has 5 staff, with one staff member a general receptionist and office/support manager and the other 4 staff are agents (2 x Class Two and 2 x Assistant Agents) that cover sales and rentals. They are located in smaller street frontage retail shops with limited office space.

Three Agencies that are focussed on Residential Sales and Rentals, Stock and Station Sales and Rentals are linked to the Regional Office - Smith Road, Turner Drive and Davy Avenue.

Each Agency has 4 staff, with one staff member as general receptionist and office/support manager and 3 other staff that are agents in sales and rentals (1 x Class One, One x Class Two and 1 x Assistant Agents). They are located in smaller street frontage retail shops with limited office space.

Focused on residential Sales and Rentals, Stock and Station Sales and Rentals.

The regional offices all interact closely with a Stock Saleyard which serves all the surrounding area.

Other information about the Agency that may help in the assessment:

• Performance data is limited other than in relation to sales and property management forecast business versus actual busines (numbers of properties and total dollar values)
• Marketing budgets are $362k for the Head office and $156k for the regional head office which covers any satellite marketing costs to.

Rick brought out the Business ABC Realtors from its previous owners about six months ago and has some new business strategies to be implemented.

Rick has engaged you as a Property Agency Marketing Consultant to review the business and come up with a Marketing Strategy for ABC for the next year.

The Agency also has the following two new initiatives that are starting up in the next 4 months and need to be covered by the marketing plans.

Initiative - Increase the Business Footprint

Open further satellite offices in both the Regional and Head Office areas. Two more in each. This will take the number of locations covered by the Agency to eleven from the current seven.

Key Information

The same mix of property services is anticipated. Rent rolls can be secured for 1 each of the two further satellites in each area, so the other would start from zero. Rent Roll costs are excluded from financials. New Offices will be required. Staff have been identified from the current staff to move across as lead agents for each office with a backfill member to then be put in at the source office. Staffing will be 3 in each office (2 of which will be new) + the back fill in the current offices. So total staff requirements will be twelve.

Key Financials

Income anticipated as follows for the full year: Office 1 - Sales $750k, Rental $1m (rent roll) Office 2 - Sales $500k, Rental $200k Office 3 - Sales $750k, Rental $1m (rent roll) Office 4 - Sales $500k, Rental $300k Start Up Costs are extra Marketing $20k per office, then $5k per month per office. Office rental costs are $4k per office per month. Other start-up costs for branding and office equipment are $30k per office. Other operating costs of $3k per month per office. Staff costs are Fixed at $200k plus a further 4 0% of sales commission at the respective office. Assume costs increase by 5% year on year and no start-up costs in year 2 or 3. Assume Sales increase by 10% year on year. Assume Rentals Increase by 15% year on year.

ABC Organisation Charts are attached for information.

Head Office and Satellites:

Principal - Rick Parker Operations - Sandy McGuire Finance Manager - Finance Assistant- Kate Beck Alan Hunt Property Sales Management - Trent Street Piper Avenue Director - Ken Foley Agents: Sandra, Property Managers: Office/Support x1 Lucy, Parker, Jensen Suzie, Adam, Office/Support x1 Barney, Kent Assitant Agents: Assistants: Falco, Peter, Colin, Fran, Agents x 2 Agents x 2 Anna Richelio Anne Maintenance - Assitant Agents x 2 Assitant Agents x 2 HowardRegional Head Office and Satellites Licensee - Fiona Wallis Operations - Mick Partridge Finance Manager - Jackie Muldoon Property Management - Sales Senior PM : Janice Smith Road Turner Drive Davey Avenue Smith Agents: Lewis, Jess, Property Managers: Office/Support x1 Office/Support x1 Office/Support x1 Niko Amy, Jenny Assitant Agents: Canon, Assistants: James Agents x 2 Agents x 2 Agents x 2 Roger Maintenance - John Assitant Agents x 1 Assitant Agents x 1 Assitant Agents x 1