Strategy, Workshops

Case Study: Strategic Review of Lyndarum North by AV Jennings

The Property Republic team are often approached to conduct strategic reviews for property developments. Most recently, we were engaged to conduct a strategic review of AV Jennings’ development Lyndarum North to provide a framework for sales success through evaluating the market position, impact of COVID-19 and competition.

 

Utilising workshops, online surveys, desktop research, mystery shopping and builder reviews, we were able to gather highly valuable insights for our client.

 

Here’s a breakdown of the process and outcomes: 

 

Context

 

AV Jennings approached Judi Carr, Director of Property Republic, to conduct a strategic review and provide recommendations for future opportunities while taking into consideration the current and future market conditions with the impact of COVID-19 as the backdrop.

 

AV Jennings is a trusted, community-driven developer with 85 years of demonstrated experience. Located in Melbourne’s highly competitive northern corridor, this masterplanned community has been designed to provide affordable and high-quality housing to meet the needs of a wide range of buyers.

 

As Wollert faces competing developments in the broader development corridor with differing price points and amenities, it’s important for the Lyndarum North team to understand where they currently sit within the market, where they can improve and identify gaps in the market.

 

Challenges

 

Lyndarum North has the potential to establish itself as the most sought-after residential community in Melbourne’s highly competitive northern corridor. Many aspects of creating a great community have been considered, with varying levels of success and expertise.

 

The AV Jennings brand in the north had some equity at the former Lyndarum project but it has been overshadowed by the competitive nature of the corridor and other prominent developers.

 

Primary Goal

 

The primary goal of the strategic review was to provide Lyndarum North with a framework to achieve sales success through evaluating the market position, impact of COVID-19 and competition.

 

Other Goals

 

  • Obtain market knowledge that will help solidify Lyndarum North’s brand reputation and awareness.

  • Achieve price growth aligned with preferred price points

  • Gain valuable insights to capitalise on opportunities, allowing Lyndarum North to realise its potential as one of most sought-after residential communities in the Wollert corridor.

 

Process

 

Market Position

 

1. Workshops

 

Property Republic conducted two workshops with prospective and current purchasers, aiming to establish some key points, including:

 

  • Perception of Lyndarum North in the marketplace and current value proposition and positioning

  • The value placed on the product offering

  • Product requirements

  • Household sizes

  • Jobs, pains and gains

  • Motivations, driver constraints

  • Needs in terms of amenity, community and developer

  • Impact of COVID-19 on income, work location, attending sales office, life in general

  • Thoughts on competitors

 

2. Online Surveys

Two online surveys were designed and supervised by Dr. Marzena Baker, PhD, MBus (Research). A large number of prospective and current purchasers were invited to take part, with participants given an opportunity to win an overall prize plus nominate one of three local charities, to which AV Jennings donated $5 for every survey completed.

 

The survey questions sought to provide insight into:

 

  • Demographics including local and ex-pat purchasers

  • Product requirements

  • Jobs, pains and gains

  • Motivations, driver constraints

  • Needs in terms of amenity, community and developer

  • Impact of COVID-19 on income, work location, life in general

  • Competitor purchase considerations 

 

3. Desktop Research

 

Property Republic conducted desktop research and gathered information, including data that’s publicly available through organisations such as the City of Whittlesea.

 

4. Builder Review

 

Property Republic also reviewed the current builder product, conducted discussions with local builder consultants, major builder principals and sales managers to gain insight into their future product planning as well as any research they had conducted.

 

Impact of COVID-19

 

Property Republic conducted a thorough desktop review of COVID-19 related forecasts and opinions and the provision of Government stimulus and support. It also included information from organisations such as:

 

  • Department of Treasury and Finance

  • Victorian Government

  • University of Melbourne

  • Reserve Bank of Australia

 

Questions relating to COVID-19’s impact were also asked in the customer deep dive workshops and online surveys.

 

Builder partners’ senior personnel were interviewed to garner their views on the northern corridor market in 2021 and beyond.

 

Competition

 

Property Republic conducted an online mystery shopping and competitor analysis of the Wollert, Craigieburn, Mernda and Donnybrook corridors. This was aimed to highlight Lyndarum North’s current and potential points of difference and competitive edge. Some of the things that were reviewed include:

 

  • Social media footprint

  • Initial customer experience and prospect management

  • Value proposition, positioning, product, pricing, and promotion

  • Builder relationships

  • Current and future amenity

  • Sustainability and similar initiatives

  • Project presentation

 

Final report

 

Property Republic provided Lyndarum North with a detailed report that presented outcomes from the prospect and purchaser workshops, online surveys, major builder interviews, site inspections and online mystery shopping.

 

Property Republic highlighted important observations and provided recommendations to help the Lyndarum North Team understand where they sit in the market, develop and refine their strategies and drive successful sales outcomes.

 

Judi Carr was also invited to present the report’s methodology and key findings to senior personnel within AV Jennings and their joint venture partner.