Marketing strategies in world of real estate Term paper

Executive Summary

This case study discusses about Manisha Keybee Housing Projects a firm that is in real estate business and has come up with a new residential project Marvel Homes in Noida sector- 61, The case study talks about various challenges that the organization faced in marketing and executing of their project, firstly it tells us about the background of the company about its members about their shares, then it talks about the projects that the firm has undertaken in the past, later on it talks about its latest project Marvel Homes, It also talks about the worth of the project Marvel Homes and overall worth of the projects that the firm has taken in the past and future projects.
The case study also discuss about the fierce competition in the world of real estate and the challenges that the firm faces due to a large number of competitors and about the strength of the Manisha Keybee Housing Projects as a firm which enabled the firm to have an edge over its competitors, it also showcases various distinctive features that Marvel Homes as a product has to entice potential customers like 24 hrs power backup, round the clock security etc, It also demonstrates various intelligent and clever moves taken by Mr. Manoj Goel (vice president sales and marketing ) to market their product to the end users, It discusses various famous marketing techniques such Branding, Product Design, Pricing etc. which most of us know but don’t know their practical use, and it also tells us about some of the marketing techniques which are not known to us or are there in the books but have been developed by Mr Manoj Goel as marketer through his past experiences and knowledge of the market.
It also focuses on that the firm should have direct communication with its customers which helps the firm to develop better relations with its customers and understand them and their needs in a much better way.
The case study also highlights through a newspaper clipping in between the increasing demand of customers in the world of real estate and also enables the readers to understand the real value and potential of this growing market.
The major focus of this case study is on marketing techniques which a person is required to have in real estate world and one should try to make full use of the knowledge that he or she gains from this case study as real estate is a huge industry and its size will only increase in the time to come so it’s very useful to study this case study and make full use of knowledge that readers derive from the below case.
In the end it talks about the success of the project Marvel Homes, how much sales they were able to achieve, it also talks about the learning that we learn from this case study about the various principles of marketing and how to use them in real world.

Organization’s Background
Manisha Keybee Housing projects is a partnership firm and consist of five partners which are partnership firms, Private Limited Company.
These five partners and their shareholding in the company
1. Manisha Project Private Ltd. (38% share)
2. Kasana Builders (12% share)
3. Keen and Core Developers (20% share)
4. SKG Ecotech (20% share)
5. Jagat Singh and Company. (10% share)
They are basically real estate companies working as contractors individually.
Completed and Ongoing Projects
Housing-
* Completed group housing projects for Noida Authority in sector- 82 and sector- 93
* Completed group housing projects for Greater Noida Authority in sector- XU and Omicron.
* Housing for Defense personnel Mathura, U.P.
* Ongoing projects in various sectors of Greater Noida.
Infrastructure
Completed various infrastructure development projects in Greater Noida and Noida including roads, underground sewage system and water bodies.
Institutional
Presently working on several projects at Gautam Buddha Nagar University campus Greater Noida, including the faculty blocks, Hostels, Library, Hospitals, and meditation hall.
The organization has an experienced and well equipped construction team who have successfully completed diverse types of projects.
The firm enjoys trust of more than 1000 satisfied families staying in our completed residential projects. The net value of the projects completed by the firm is over Rs. 200 corers in the last five years and is working on ongoing projects worth more than Rs. 200 crore.

Current Project
The partners have pooled their funds in one resource, they acquired a land which is 6924 sq. meter and the current value of the project is Rs. 20.25 crores for the new project which has been named as MARVEL HOMES, The land has been taken on lease from Noida Authority in sector 61, the lease condition is that firm will pay 20% of the amount initially and rest 80% in installments and the authority has given the firma time period of three years for the completion of the project, the firm has already taken approval from the various concerned authority for the project.
The project has two towers which have double basement for parking and ground + fourteen floors, each tower has six flats on each floor and total of 180 flats.
The Marvel Homes is providing its customers with all the modern facilities such as-
* Four sides open plot
* Approx. 80% open area with central park, roads
* Green surroundings and landscapes.
* Vastu & Eco Friendly
* 24×7 Three tiered security
* Designed for natural ventilation and light
* Up to 100% power back-up on demand
* Health Club & Swimming
* Modular kitchen with chimney and hob & R.O system
* Shower panel with glass cubicle in master bedroom
* Cupboards in bedrooms
* Italian marble in living room
* Laminated wooden flooring in master bedroom
* Vitrified/granite tiles in other
* Country club lifestyle
* Club house with indoor games
* Ample recreation facilities
Challenges
The challenges that the firm faced for the promotion and sale of its project Marvel Homes were as follows-
1. The biggest challenge in front of the firm is that it was constructing a high rise building for the first time and it requires diverse technology and infrastructure for its construction.

2. Above table shows how good opportunities are there in real estate market due to which good opportunities are there for the companies, so the presence of large number of suppliers there huge choice available for the customers posing a big challenge in front of the Marvel Homes.
Due 100% FDI in this sector firm also has to face a big challenge from foreign competitors also.
3. The sector in which the project is to be executed has also been a new sector amongst the developed ones was an advantage but there was also a hot competition as two more residential projects by the name Prateek Fedora by Prateek Group and another by Gardenia Group in close vicinity.
4. Competitive pricing was also a big challenge because of huge competition and market is also not recovered completely from recession.

Companies Marketing Strategies to Overcome Challenges
It was highly skillful task to design an extensive marketing plan for the organization to promote their project Marvel Homes which was done by Mr. Manoj Goel in a very efficient manner by adopting following strategies
1. Brand Design- Brand plays an important role in distinguishing the product from the products of the competitors, brand design plays an important role in identification of the product among consumers, so the firm chose MARVEL HOMES as a brand for this project and designed a specific logo which aesthetically standing out from the competition. The logo played a very important and substantial role in building sales of the firm and a strong brand name which had a very strong value among the prospective buyers to whom organization reached through various advertising media like outdoor, print, electronic (F.M. and Television)

Brand design for Marvel Homes.
2. Firm was also able to develop a beautiful brochure which a was a statement of the company’s philosophy and the sense of creativity which instantly helped the firm in winning over customers confidence.
3. Product Design- Another important aspect was product design, layout and specification and it has made Marvel Homes completely different from competitors and helped them in having edge over competitors.
There are following distinct specification that helped Marvel Homes to attract customers

FLOORING
* Imported / Italian marble in drawing/dining room and foyer.
* Laminated wooden flooring in master Bedroom
* Vitrified/Granite tiles in other bedroom.
* Polished Granite/ marble or eq. on wall & floor in lift lobby.
* Ceramic Tiles in servant room.

WALLS
* Texture Paint / long lasting paint finish on external facade.
* Acrylic Emulsion/Texture paint with pop on internal walls.

CEILINGS
* False Ceiling in POP finished with acrylic emulsion Paint in Drawing / Dining room and Master Bed Room.
* POP finish with cornice / bands in all other rooms.

BATHROOMS
* High quality vanity counter, fixtures and fittings.
* Anti skid ceramic tiles Kajaria or eq. on floor.
* Designer ceramic tiles with boarders on dado.
* Designer Branded C.P Fitting like Jaquar or eq.
* Shower panel with toughened glass cubicle in master bathroom.
* Branded sanitaryware of Parry/ Hindware.
* Exhaust fans in each bathroom.

KITCHEN
* Designer Modular kitchen with chimney and hob.
* Pentair or eq. individual RO system.
* Anti skid ceramic tiles flooring.
* Designer ceramic tiles up to 2’0” above counter level.
* Granite counter top with branded SS sink with drain board.
* Provision for LPG pipeline.
* Exhaust fan.

MAIN ELECTRICAL SUPPLY
* Electrical wiring in concealed conduits with modular switches & MCBs.

TELEPHONE /DATA
* Cabling for telephone/internet & cable as per design
* DTH/WI-FI on demand.
SECURITY
* 24 Hour manned security on entrance gates.
* CCTV/Door Phones & Intercom in apartment.

FIRE PROTECTION
* Fire detection/ sprinkler system as per norms.

LANDSCAPING
* Landscaped common areas as per plan.

WATER SUPPLY
* Water supply through underground/overhead tanks.

RAIN WATER HARVESTING
* Storm water drainage system integrated with rainwater harvesting.

POWER BACKUP
* Power backup through gensets for common areas/facilities.
* Provision for power backup for internal use on demand.

CAR PARKING
* Double Basement car parking with separate entry and exit gates.

DOORS/WINDOWS
* External doors and windows in Powder coated / anodized Aluminum sections with glazing.
* Internal doors in Hardwood frame with skin molded shutters / Veneered flush doors with lacquered finish.

CUPBOARDS
* Wardrobes in all bedrooms with complete wood work.

STRUCTURE
* Earthquake Resistant RCC frame structure designed as per IS norns.

LIFTS/STAIRCASE
* Dual High Speed capsule lifts in each tower.
* Sufficient wide staircase with easy steps.
* Fire Safety/Exit staircase.
4. Fortunately, plot itself was vastu compliant and the architects played an important role in conceptualizing a plan where every flat was like corner flat and open from three sides which gave the project a distinct advantage over the competitors.
5. The project also got all the approvals in place before the firm started the construction, The company also chose an experienced and competent contractor for the execution of the project and had a strong team to supervise and execute the construction and maintain a high standard of quality in terms of material and works dimension which was also appreciated by the customers off the project.
6. The firm also took a policy decision to market the project directly to customers through their own sales team unlike the practice in the market to sell it through a network marketing firms, this resulted in following distinct advantages over its counterparts
* The firm saved substantial overnet costs.
* The firm had better and strong communication with the customer.
* The firm was able to win customers confidence and build credibility in the market.
* The customer had better satisfaction level and access to accurate information about the firm and the project which otherwise gets distorted in the long chain of channel partners, the firm was able to select a better price and add a better realization collection with practically no cancellations.
* Another advantage was that the firm was able to attract the end users rather than the investors which saved their time and effort in selling.
7. The firm was also able managed to get its project approved by all leading banks for home loan funding to facilitate its customers.

8. Competitive pricing and flexible payment plans was also one most important strategy of the firm.

9. Last but not the least was the firms policy of being transparent and customer friendly which was unlike the practice in the industry, the firm has also done a great deal in establishing its credibility and turning its maid in effort into a brand success which is now acclaimed by its customers, market and the industry.

Outcome
The above marketing strategy has played a very significant role in the success of the project Marvel Homes in following ways
1. The product was known to most of the customers due to extensive advertising in the print and electronic media.
2. Customers could easily recognize and distinguish the project from other projects due to a great brand design and name.
3. The firm got all the approvals from various concerned authority will help in timely completion of the project and higher customer satisfaction.
4. The direct marketing of the project to the end user also helped in developing better relationship with the customer.
5. Great design, specification and other attributes made the final product quite attractive and helped in creating higher demand for the project.
6. The attractive and detailed brochure also helped the customers to draw a better picture of the final product.
7. Another feature that has made the project so attractive was that it is vastu compliant, large part of Indian customers believes in vastu science so it has added an extra value to the project.
8. The firm has already been able to sell 80% of the flats till the date and the project is on schedule and expected to be completed within next six months.
9. Another policy of the company to be transparent to the customers has also helped the firm to gain customer faith and has also been successful in creating a distinctive position for itself in the market.
Learning
The above case provides a great learning to the readers as its main focus has been marketing strategies in world of real estate and real estate is a rapidly growing industry in India, so it will help us to understand marketing techniques such as pricing, branding, product design etc.
The case helps us to understand the emerging and existing challenges in real estate market and helps us to understand the practical use of various marketing techniques to overcome those, it tells us that how appropriate and attractive brand name and design helps to attract customers and having an edge over competitors, today Indian customer has become more intelligent it tells us that if we want to survive in the market then only competitive pricing will not help us product design is also playing a very important role in today’s real estate market .
It also tells us that pricing a product also plays a very important role, the product has to be so attractively priced that it should be able to attract customers and should also be enough so that it meets all the expenses related to construction of the project, it also helped us to understand some of the marketing strategies that have been innovated by marketing managers in the real world, we also learn that we should make our marketing strategy very carefully after studying the market, customers and competitors, we have to be very cautious while selecting the appropriate marketing plan because it involves at lot of cost.
In the above case study Mr. Manoj Goel has taken a different step by having his own sales team rather than having anyone from outside which has helped the firm in saving a lot of costs and has helped us to know a different strategy that we may also undertake in the future and can enjoy its benefits.
The above case study has been really helpful and has provided us with great knowledge.

Secondary sources of information
http://www.manishakeybee.com/home.html(15/09/2011)
Marvel Home brochure. (15/09/2011)
Cushman and Wakefield’s real estate investment report 2008 “The Metamorphosis”.