In the previous blog, we discussed the Extensive Marketing Strategy of BOE- Beijing Oriental Electronic Group. In this article, we will study the various marketing methods employed by Vanke- one of the largest residential real estate developers in China.
The purpose of this is to gain an understanding of how Vanke has climbed to the top and gain insights into their journey.
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By the time you finish reading this blog on the Marketing Strategy of Vanke, you will gain valuable insights into how marketing is incorporated by every industry according to their needs.
About Vanke – Company Overview
Vanke, founded by Wang Shi in 1984 is a major Chinese residential real estate developer. It is involved in property development, management, and sales in over 60 mainland Chinese cities in the Pearl River Delta, Yangtze River Delta, and Bohai-Rim Region, as well as investment, trading, consulting, and e-business.
Vanke became the second firm to be listed on the Shenzhen Stock Exchange after Shenzhen Development Bank in 1991. Vanke ranked 208th in the Fortune Global 500 in 2020. In 2020, Vanke was ranked 96th in the Forbes Global 2000.
The group has been persistently providing good products and good services to the general public, satisfying people’s various demands for a good life with its best efforts. The Group’s businesses have been expanded to areas such as commercial development, rental housing, logistics and warehousing services, ski resorts, and education. Building quality housing for ordinary people to live in is Vanke’s motto.
|Market Share/ Revenue||USD 5325.3 Crores|
|Vision||Building quality housing for ordinary people to live in.|
Live in your Dream, Better City, Better Life
Marketing Strategy of Vanke
Let’s look into the marketing strategies employed by Vanke:
Segmentation, Targeting, and Positioning
The target market of Vanke is the middle and low-income groups. More than half of the population of China is made of this group of people whose earnings put them in the middle to low class. Vanke has mostly segmented its audience on the basis of demographic and psychographics.
They have segmented their target audience on the basis of gender, occupation, age, ethnicity, generation, etc. They have also divided the audience based on personality characteristics, buying patterns, leisure activities, and hobbies. This makes it easier for them to provide the people with their dream homes. For example, a young couple may wish to buy a luxury apartment whereas those with children may wish to buy a house with a garden, that is near to their children’s school.
Vanke aims to provide low-cost, affordable, quality housing for ordinary people to live in. Vanke has been able to achieve high customer satisfaction among current customers by proving true to this. The housing provided by Vanke meets all the basic requirements of water supply, hygiene, and sanitation. And this is all at affordable rates. That is one of the reasons why customer satisfaction is soaring through the skies.
Vanke has an extensive set of products and services catering to different segments of customers in the construction service department. This has helped the company to expand its revenue streams.
Vanke has positioned its product in such a way that it has created a distinct identity in the customer’s mind. When it comes to competitors, Vanke has made sure to deploy huge amounts of financial resources to make sure that its services are the best. At the same time, the positioning of their products is consistent with the consumers’ ecosystem so consumers love to buy from them
No marketing campaigns were adopted as such, but, through its high-quality services, the company has been able to achieve a high level of customer satisfaction among existing customers. Moreover, the company has developed strong brand equity among potential customers through its customer relationship management department. This leads to customer loyalty and retention.
As a result of Vanke’s integrated marketing strategy and delivery mechanism, Vanke China has been able to convert more customers to repeat customers, spend less money to acquire new customers, and increase sales of adjacent products and services.
Social Media Marketing
One of the areas where Vanke China can improve is promotion, especially social media promotion strategy and consumer-generated marketing efforts. Vanke China can use social media platforms such as Facebook, Twitter, YouTube, Instagram, etc. to build consumer engagement marketing.
They lack a digital presence, and in today’s world, to establish a brand you need to have an online presence so the consumers can stay updated about upcoming projects. Vanke China needs to work with not only marketing partners but also channel partners to create customer value and build a relationship with them.
As per SEO ranking, it is said that the number of keywords is 500 bad, above 1000 is good, and 10,000+ is amazing. As we can see, https://www.vanke.com/en/ has only 132 organic keywords, which is considered bad because it is very small. That means they have to work on their digital marketing to be noticed by people.
Also, the traffic per month is around 2.8k+ which is again less. As a result, Vanke China will need to improve its SEO strategies as well as work hard enough to keep the brand at the top of Google’s organic SERP results.
Vanke has not employed any form of influential marketing to promote its services. This has to be one of the weaknesses of Vanke because working with influencers will allow them to build their audience’s confidence in Vanke’s product. This is the ideal instrument for building a dedicated army of Vanke brand advocates in the long run. Vanke should absolutely pursue influencer marketing in order to raise brand recognition and gain consumer confidence in the near future.
Vanke has its own website, but the company doesn’t use its website to avail of the services provided. It would be a good thing if the company introduced e-commerce strategies on their website, as many customers prefer websites for the first time they avail of a service, which would also increase the traffic and target audience eventually.
Vanke has a mobile app which provides services to the client. Through the app one can check out properties available nearby. Clients can also contact Vanke by utilizing the information available on the app.
Content Marketing Strategies
They have a presence on mooool, which is considered the most professional landscape media in China. The property pictures are published on the site along with some content describing the property and other details.
Vanke China is doing funding programmes and community programmes, but the only source of information is from its website.
This ends with an elaborative marketing strategy of Vanke. Let us conclude our learning below from the marketing strategy of Vanke.
What’s unique about Vanke’s marketing strategy?
Due to its high quality and diversified offerings, Vanke is the top provider of real estate products or services in China. While going through the blog, we realised that the company is highly dependent on and enjoys strong brand recognition, trust and satisfaction from its customers. It is also known for following deadlines and generating good returns by adapting to new revenue sources.
Even though there are more and more competitors in the same space, it continues to be a leading company because of its talented employees and the thorough training and skills it provides to them. The company should continue to innovate and develop more products and services that cater to the needs of the consumers and launch them on the market with the most suitable marketing methods.
But with more competition, the company now needs to adapt digital marketing strategies to stay competitive, because they don’t have an online presence.
Their website describes all the work that they do, but they don’t have a social media presence, which is a need. Also, now that we know the statistics about the traffic on their website, it’s really important to improve which is a part of Digital Marketing.
Digital marketing is crucial since it links a company with its clients when they are online and is effective across all sectors. It links businesses with ideal consumers through SEO and PPC on Google, social media marketing, and email marketing. If you would like to learn more and develop skills, check out IIDE’s 4-Month Digital Marketing Course to learn more.
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We hope this blog on the marketing strategy of Vanke has given you a good insight into the company’s marketing strategies.
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