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 SnapshotCompany Name Market Value Description Value Proposition

• 104.2Bn • 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 mixed-use townships across the country

Building visions

• 351 Bn • 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 to serve Millions

• 148.7 Bn • Enjoys the patronage of both new and repeat institutional clients whose businesses have benefited from DMCI’s on-or-ahead-of-schedule 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

PRODUCTSegmentation, Targeting, Positioning, New Product Development Process

Product Snapshot

Company Name Office Commercial Residential Hotel/Resort

X X X X

X X X X

X X X X

X X X X

X

Company Name Target Market

Segmentation and Positioning New Product Development Process

High-end and Upper-Middle markets

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.

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.

Megaworld Corporation

Direct CompetitorsCompany

NameTarget Market

Segmentation and Positioning New Product Development Process

Middle to Upper Middle Markets

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 ContinuedCompany

NameTarget Market

Segmentation and Positioning New Product Development Process

Lower Middle, Middle, Upper Middle Markets

SMDC’s 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.

Indirect Competitors Continued

Company Name

Target Market Segmentation and Positioning New Product Development Process

Lower-Middle to Middle Markets

DMCI Homes very quickly found its niche among the country’s 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.

Under the DENR’s Adopt-An-Estero program, DMCI Homes has signed on to assist in the much-needed rehabilitation of Makati’s 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 Parañaque’s informal settlers.

PRICE per LocationPricing Objective, Pricing StrategyFor 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/ Mandaluyong

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

Robinson’s 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 DistributionDistribution Objective, Distribution Strategies

Distribution Channels (Common to All)

INTERNET

DIRECT MAIL

DIRECT SALES

INTERNATIONAL SALES

LICENSED BROKERS*

Promotion

Global Local

Megaworld *Mabuhay/Balikbayan * * *

* * *

Ayala Land Inc Smile *

* * *

Ayala Land Premier * * Avis *

SMDC * * * * * * *

Robinson's Land Smile * * * * * *

DMCI Smile * * * * * *

Current Promotions

Marketing and Promotions Budget vs. Revenue(2012 – 2013)

2013

2012

*in billions *in billions

REVENUE PROMO % REVENUE PROMO % Remarks

Megaworld 21.25 0.589 3% 18.173 0.643 4% Advertising and Promotions Ayala Land 81.523 3.37 4% 59.932 1.059 2% Marketing is anchored Training and

Branding strategies SMDC 20.916 2.05 10% 22.58 1.76 8% Maximized partnership with other SM

Prime Holdings subsidiaries (e.g. Malls and Cinema)

Robinson’s Land Corp 5.3 2.214 42% 4.105 1.908 46% Promo Exp is consolidated. Maximized partnerships with other JG Summit subsidiaries (e.g. Summit Media, Cebu Pac, Robinsons Malls & Cinema, etc.)

DMCI Homes 12.165 0.309 3% 9.219 0.366 4%