Number of web-site applications

The table may serve as a core element of the “Himgrad” Industrial Park promotional strategy and an assessment medium for the steps taken by the company specialists in that direction.

A very important point is that the division of the project promotional strategy into two substrategies does not mean their absolute separation from one another. All the marketing communications program should be unified in terms of style and general principles of execution.

The main thing in the two substrategies separation is to concentrate on the criterion, which is of high-priority to the target group. For potential residents it is the level of their convenience, first, and the economizing effect as well (saving on taxes, on utilities prices and on rent level).

Another point, obligatory to mention, is connected with the promotional efforts efficiency evaluation . The problem here is that we cannot assess the short-term efficiency of our efforts. The reason for this is, predominantly, the above described time gap between the point when the company realizes the requirement of location, relocation or further expansion and the point when the location decision is made by the company. Under such circumstances one cannot assess exactly which of the promotional efforts have led the potential resident to the site – it may be equally e.g. an advertisement in a last year’s special industrial magazine, a name card of the company representative with a note “important” or “interesting” found somewhere, a web-site, an article in a local newspaper, a meeting at a specialized conference, etc.

Thus, the provided in table measurement media have a relative character. Nevertheless, they may serve as indirect promotional strategy assessment ratios.

Generally speaking, the main thing about the market under analysis is a very high price for any mistakes in the project promotion. So, every step taken should be thoughtfully considered and assessed.

Furthermore, since the customer tends to search for information everywhere, the promotional strategy should be carried out by means of different media channels, including even such as rumours sometimes.

Considering the promotional strategy budget , the important point here is that due to the peculiar feature of the industrial property lease process, the general concept lies in attracting the customers, not in their further retaining.

So, the sums of money spent on promotion at the initial stages of the project development (2008-2009 financial years) are considerably larger than the following periods’ budgets.

Thus, we expect that on the first stages of the project development the promotional budget will amount up to $350-450 thousand per year. The supporting marketing strategy will cost $100-150 thousand per year.

6.2. Sales Strategy

With the forecasted market growth (see Graph 4 , paragraph 3.4 of the current document) we plan to occupy the fourth part of Kazan industrial real estate market by the 4^th year of project realization (600 thousand square meters of the forecasted 2 500 thousand sq.m total market capacity).

The real estate operations concept of the “Himgrad” Industrial Park comprises the three main steps:

1. new construction of industrial premises;

2. long-term lease agreements signing with site residents, and

3. optional buying the leased premises out, after expiration of the lease agreement at will of the residents.

The dynamics of these three types of real estate activity is presented at Graph 6 . The positions of total square under operation and total square sold are cumulative.Graph 6

The rent rates policy of the “Himgrad” Industrial Park is based on our attempt to create favourable conditions for site residents. Thus, we have analyzed the Kazan real estate market rents (see Graph 7 ) and set the site rents at a level lower than the city average market rents.

Graph 7

In addition to premises lease and buy out, the “Himgrad” Industrial Park provides utilities (gas, electricity, water supply, heat supply etc.) and additional services (such as marketing services, consulting, law support etc.). The dynamics of providing both types of services directly depends on the amount of premises lease and buy out and will be examined in paragraph 7.2 of the current document.

7.0. Financial Forecasts

7.1. Important Assumptions

While assessing the project financial data, some underlying assumptions were made:

1. inflation rate is taken 11%;

2. rent rates, utilities prices and additional services prices growth estimation is based on the specified inflation rate;

3. discount rate is taken 14%;

4. a growth trend in the Kazan real estate market is expected.