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COMPETITION MAPPING IN REAL ESTATE
INDUSTRY - SUPERTECH LIMITED
Submitted by:
MR. SAURABH RUSTAGI
PGDM
ENROLLMENT NO. - 1421000910
SESSION: 2014-2016
IMT
INSTITUTE OF MANAGEMENT TECHNOLOGY
CENTRE FOR DISTANCE LEARNING,
GHAZIABAD-201001
PROFORMA
Name
Address
Enrolment No.
1421000910
Course
PGDM (2year)
Submitted To
Institute
of
Management
Technology, Ghaziabad
Mobile No.
Major
Area
:
of :
9899749973
Marketing
Specialization
Questionnaire
YES
YES
Attached
Project Guide
Phone No. of the :
9911953617
project Guide
Date Of Submission
10/10/15
CERTIFICATE
This is to certify that Mr. Saurabh Rustagi has planned and conducted the project
entitled Competition Mapping in Real Estate Industry Supertech Limited
under my guidance and supervision and the report submitted therewith was the
result of bona fide work done by him.
Date: 4/10/15
(Project Guide)
CERTIFICATE
I Saurabh Rustagi certify that the project report entitled Competition Mapping
In Real Estate Industry - Supertech Limited is an original and has not been
submitted earlier to Institute of Management Technology Centre For Distance
Learning, Ghaziabad or to any other institution for fulfillment of the requirement
of a course of management programme (PGDM)
Date:
4/10/15
ACKNOWLEDGEMENT
TABLE OF CONTENTS
INTRODUCTION
RESEARCH METHODOLOGY
COMPANY PROFILE
11
INDUSTRY PROFILE
17
34
41
51
BIBLIOGRAPHY
53
ANNEXURE
54
INTRODUCTION
Real estate plays a critical role in the development of the Indian economy. It is the
second largest employer after agriculture. Over the next decade, the real estate
sector is expected to grow by 30 per cent.
The sector is divided into four sub-sectors: housing, retail, hospitality, and
commercial. The housing sub-sector contributes five-six per cent to the country's
gross domestic product (GDP). Meanwhile, retail, hospitality and commercial real
estate are also growing significantly, catering to India's growing needs of
infrastructure.
The construction industry ranks third among the 14 major sectors in terms of
direct, indirect and induced effects in all sectors of the economy, according to a
study done by ICRA. A unit increase in expenditure in this sector has a multiplier
effect and the capacity to generate income as high as five times. The positive
effects of growth in real estate sector are spread over more than 250 ancillary
industries.
The Indian real estate market size is expected to touch US$ 180 billion by 2020.
Demand for residential, commercial and retail real estate is rising throughout
India, accompanied by increased demand for hotel accommodation and improved
infrastructure.
India is going to produce an estimated 2 million new graduates from various
Indian universities during this year, creating demand for 100 million square feet of
office and industrial space.
Further, presence of a large number of Fortune 500 and other reputed companies
will attract more companies to initiate their operational bases in India thus,
creating more demand for corporate space especially with MAKE IN INDIA now
being active.
Apart from IT, ITES and Business Process Outsourcing (BPO), India has shown
its expertise in sectors like auto-components, chemicals, apparels, pharmaceuticals
and jewellery where it can match the best in the world. These positive attributes of
India is definitely going to attract more foreign investors in the near future.
7
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
The main objectives of the study are:
METHODOLOGY
Research Methodology is a scientific and systematic way to solve research
problems. A researcher has to design his methodology i.e. in addition to the
knowledge of methods/techniques; he has to apply the methodology as well. The
methodology may differ from problem to problem.. The main aim of the study is
to find out the role of advertisement in buying behaviour of real estate. While
recommending the said strategy detailed information from secondary sources was
collected and analyzed. To fulfill the objective of the project the main aim is to
collect information about the Indian real estate industry, its size, the trends of the
Indian business environment, customer segmentation, consumer behaviour,
marketing strategies of Supertech Ltd., Omaxe, DLF etc.
RESEARCH APPROACH
Keeping in mind the purpose and nature of this Project Report, an Inductive
Approach will be found more appropriate due to its flexible and exploratory
nature. This is the kind of approach where you collect data and hence develop a
theory as a result of the data analysis. Hence this approach has been appropriately
used to gain in-depth information about Indian Real estate players and their
competitive strategies.
It was felt that apart from fulfilling the objectives, the data collected from the
Indian consumers and real estate majors using this approach would provide
8
additional useful information that would widen the scope of the research and add
to the existing knowledge on strategies of a Real estate firms. This would assist in
arriving at more concrete conclusions, as there are no rigid conclusions to be
arrived at.
RESEARCH DESIGN
Exploratory research is conducted when the researcher does not know how and
why certain phenomenon occurs. It determines fruitful alternatives that the
executive would not have perceived. The purpose of exploratory research is to
define the marketing problem precisely, collect required information/data relating
to the problem and identify alternative courses of action in order to deal with the
marketing problem
In exploratory research, the focus is on the discovery of ideas about buying of
consumers and demographic profile. A study of overall population, the age profile,
the literacy rates, social and economic trends are termed as the demographic
trends. They help the companies understand the diversity of buying pattern in a
particular region. This serves as the starting for understanding consumer profiles.
Secondary research
To arrive at the overall trends of the Industry as specific various sources will be
used. Secondary data will be collected from various books, magazines, company
annual reports, websites, etc.
Primary research
Since the research objective will be directed towards the uncovering of consumer
buying behaviour hence primary research will be used for the purpose.
positioning at the exit point and low level of involvevment due to lack of interest
and absence of incentive.
Sampling procedure
The questionnaire will be distributed among respondents who are from different
age groups and income brackets. The procedure for sampling involved
convenience and judgment.
10
COMPANY PROFILE
OVERVIEW
Supertech Limited, India's leading real estate developer was founded in 1988 in
National Capital Region and since then has been scaling new heights by each
passing day. The company has set new trends of architectural finesse in the
contemporary global scenario achieving excellence. Established under the
dynamic leadership of Mr. R. K. Arora. Supertech has led to creation of various
landmark projects - Crossings Republik, Emerald Court, Avant-Garde, Shopprix
Mall are few examples. The leaders and skilled professionals of the company have
worked towards launching out of the league projects and take the real estate sector
to the next level. Supertech is the pioneer to launch the concept of mixed-use
development in India and to come up with high rise constructions in North India.
In North, Supertech has a major presence in Uttrakhand, Uttar Pradesh and
Haryana and down South; it is constructing a project in Bengaluru. The company
is developing projects in different verticals of real estate like residential,
townships, commercial, retail, office spaces and hospitality. To fulfill the
commitment of delivering the best, the company has tied-up with the world's best
names in the fields of architecture, design and technology.
Supertech has not only expanded in terms of number of projects but in terms of
the kind of engineering techniques, innovative designing and architectural finesse
it has brought in to the Indian real estate industry.
Supertech is the first Indian real estate developer to introduce the precast
technology, which is a step further in construction. With the use of this
technology, a hindrance-free construction can be carried out in any season saving
up to 64% of time as compared to the construction time of a brick house. It has
also introduced the jump from technology which fastens the construction process
of any high rise building. The company is also developing projects like North Eye
and Supernova in Noida, Uttar Pradesh which are North India's tallest residential
and mixed used developments.
11
Vision
To hold its position in the Industry and follow high ethical standards, transparency
in transactions and quality in developments. Supertech is constantly working for
the development and shaping of land as well as contributing in the progress and
growth of nation.
Mission
To empower Indian Urban Infrastructure and Real Estate by inculcating
knowledge and innovation that will be the catalyst of growth for the nation.
Impacting hitherto unknown areas to drive growth by winning the customers
buying decisions through logical reasoning and industry facts
Management Team
Mr. R.K Arora, Chairman
A small-time broker to now a big developer having 75 million sq ft under
construction, R K Arora has come a long way since 1988 when Supertech was
incorporated.
Supertech is always prepared to meet the challenges posed by time and changing
aspirations under his supervision. Aptly backed by the strong networks of
suppliers, craftsmen and designers, their buildings and complexes are landmarks
in their respective locations. Supertechs R&D includes working increasingly in
various topologies on the one hand, and the dynamics of the technologies on the
other. This is what helped them continuously orient and reorient synergies of
design and materials to dedicated uses.
Mr. Mohit Arora, Managing Director
A Civil Engineer from highly coveted IOWA State University, United States, Mr.
Arora has acquired techno-commercial skills of management, business
development and international relations with global corporate.
12
PROJECTS
ON-GOING PROJECTS
Residential
Noida-Greater Noida Expressway: Eco-Citi
Noida: Cape Town, North Eye, ORB
Greater Noida: Czar Suites
Greater Noida (West): Albaria, Eco Village I, II, III & IV, Oxford Square
Meerut: Palm Greens
Moradabad: Palm Greens
Gurgaon: Araville, 48 Canvas & Hues
Rudrapur: River Crest
Bengaluru: Micasa
Township
Crossings Republik, Ghaziabad: Livingston
Meerut: Sports City
Yamuna Expressway, Greater Noida: Upcountry, Golf Country
Commercial & Retail
Rudrapur: Metropolis Mall
Noida: E Square
Dehradun: Doon Square
COMPLETED PROJECTS
Residential
Ghaziabad: Supertech Estate Supertech Residency, Avant Garde, Rameshwar
Orchids, Icon
Noida: 34 Pavilion, Emerald Court
Meerut: Green Village
13
Township
Rudrapur: Metropolis City
Commercial & Retail
Noida: Shopprix Mall
Vaishali, Ghaziabad: Shopprix Mall
Kaushambi, Ghaziabad: Shopprix Mall
Haridwar: The Pentagon Mall
Meerut: Shopprix Mall
Hotel
Rudrapur: Radisson Blu
Haridwar: Hyphen, Radisson Blu
Meerut: Hyphen
Noida: Hyphen
Meerut: Country Inn
With such a vast portfolio under their belt, they have achieved what others havent
in a short period of times with expertise and advancements.
14
CSR INTIATIVES
15
Milestones
Though the infrastructures developed by Supertech speak of their proficiency, but
still theres more to them.
More than 80,000 units and 120 million sq. ft. of Real Estate under
development
Offer of Possession given to more than 10,000 units during the financial
year 2014-15
16
INDUSTRY OVERVIEW
REAL ESTATE INDUSTRY
As the economy shows signs of decreasing GDP growth rate, the Indian real estate
industry faces its own share of concerns. Real estate developers are reeling under
high debt and FDI inflows had also slowed down. The recent increase in home
loan interest rates is expected to dampen the sales even further. Amidst these
macroeconomic conditions, Indian real estate asset classes across the prime cities
of India have seen mixed sentiments.
Residential sales remained slow in most of these cities in 2015. Residential project
launches also showed a marked slowdown by 3Q14.The demand for office and
retail space leasing remained healthy in most of the cities. What does the future
hold for the real estate sector in 2016?
17
18
Market structure
Real estate in India follows an oligopoly type market structure with the following
characteristics-Real estate sector is quite fragmented with most players having
presence limited to select cities or regional geographies & relatively few players
having national presence. Larger regional developers increasing their footprints
across the country include Supertech, DLF, Raheja group, Parsavnath developers,
Omaxe.
20
Threat of new entrants: Profitable markets that yield high returns will
draw firms. This results in many new entrants, which will effectively
decrease profitability. But in real estate sector entry barriers are high
because the working capital requirements are high. Moreover, the
existing firms have the advantage over others due to learning curve
advantages. This can be seen in the case of DLF which started in 1946
and developed DLF city in 1985 and in 2008 they opened up the first
luxury mall. The gestation period is very long so investors will not be
induced to invest.
Threat of established rivals: 25% of the market share is held by the
DLF in the real estate sector. This shows that the competition is high in
this sector with DLF, Omaxe, and Supertech being the major players. This
may prove to be a threat to upcoming players, as the established players
are deep rooted in the industry. Though this threat shall not be faced by
another.
The bargaining power of buyers: It is low. The country still lacks
adequate infrastructure facilities and citizens have to pay for using public
utilities. It is very difficult to predict the direction and magnitude of
price movement on real estate. One can only assume that forces of
demand and supply would always apply and price movement would follow
accordingly.
Threat of substitute product: There are no substitutes to the basic
product so there is not any threat of substitute products.
21
like concrete weeds, and a futuristic commercial hub called Cyber City houses
many of the world's most respected corporations.
Gurgaon, located about 15 miles south of the national capital, New Delhi, would
seem to have everything, except consider what it does not have: a functioning
citywide sewer or drainage system; reliable electricity or water; and public
sidewalks, adequate parking, decent roads or any citywide system of public
transportation. Garbage is still regularly tossed in empty lots by the side of the
road.
With its shiny buildings and galloping economy, Gurgaon is often portrayed as a
symbol of a rising "new" India, yet it also represents a riddle at the heart of India's
rapid growth: how can a new city become an international economic engine
without basic public services? How can a huge country flirt with double-digit
growth
despite
widespread
corruption,
inefficiency
and
governmental
dysfunction?
In Gurgaon and elsewhere in India, the answer is that growth usually occurs
despite the government rather than because of it. India and China are often
considered to be the world's rising economic powers, yet if China's growth has
been led by the state, India's growth is often impeded by the state. China's
authoritarian leaders have built world-class infrastructure; India's infrastructure
and bureaucracy are both considered woefully outdated.
Yet over the past decade, India has emerged as one of the world's most important
new engines of growth, despite itself. Even now, with its economy feeling the
pressure from global inflation and higher interest rates, some economists predict
that India will become the world's third largest economy within 15 years and
could much sooner supplant China as the fastest-growing major economy.
Moreover, India's unorthodox path illustrates, on a grand scale, the struggles of
many smaller developing countries to deliver growth despite weak, ineffective
governments. Many have tried to emulate China's top-down economic model, but
most are stuck with the Indian reality. In India, Gurgaon epitomizes that reality,
managing to be both a complete mess and an economic powerhouse, a microcosm
of Indian dynamism and dysfunction.
22
most American cities. It accounts for almost half of all revenues for its state,
Haryana, and added 50,000 vehicles to the roads last year alone. Real estate values
have risen sharply in a city that has become a roaring engine of growth, if also a
colossal headache as a place to live and work.
"If Gurgaon had not happened, the rest of India's development would not have
happened, either," contended Mr. Singh, the chairman of DLF. "Gurgaon became a
pacesetter."
number of residential project launches in India y-o-y since last three years. In
2012, the master plan
2031 of the Greater Noida Industrial Development Authority (GNIDA)
received approval from the National Capital Region Planning Board (NCRPB),
allowing developers and builders to resume construction activity on real estate
projects in Greater Noida. Construction in this submarket was stalled for more
than a year as farmers whose lands were acquired for construction were
demanding compensation. After this approval by NCRPB the construction activity
was resumed and Greater Noida witnessed increased project launches and sales.
Good connectivity and availability of campus style office spaces at relatively
lower rents than Gurgaon are expected to drive the demand in this submarket.
25
Demographic: It includes increase in percentage of population in the 2544 years age group, nuclear families, rise in urban middle class population;
double income households on rise and increase affordability.
EXTERNAL ENVIRONMENT
Housing which ranks next only to food and clothing amongst basic human needs
has always had and continues to have important socio-economic implications.
Especially in countries like India which are in the throes of rapid development
housing has come to assume a crucial role as it contributes significantly to the
national economy and nation building. Arguably, housing has been the only
industry in recent times which has not only withstood the recessionary pressures,
but has also shown a consistent and healthy growth and if the future is to be
interpreted in light of the macro picture, the best is yet to come.
Housing and GDP are interlinked and contribute to each others growth. It is,
therefore, no wonder that Housing for All is invariably proclaimed as a national
26
priority by all major political parties and adopted as a goal by the Government of
India in the National Housing and Habitat Policy document. Integrated housing
development not only satisfies the basic human needs but also facilitates holistic
development within the parameters of a planned welfare economy. Safe, secure
and affordable housing by any means increases employment and educational
opportunities for individuals and enriches communities leading to a better civil
society and better quality of life. Besides the direct contribution which housing
makes to GDP it increases social capital which is intelligible wealth that comes
with good social network at the heart of which lies clean environment, hygienic
living and quality housing.
India, with its billion plus population, still witnesses an acute shortage of dwelling
units. Despite sharp increase in the Usable Housing Stock from 70 million units in
1961 to170 million units in 2001, the shortfall in 2001 was estimated at 19 million
dwelling units, although unofficial estimates peg the figure at higher levels. This
has occurred due to the high population growth, especially in urban areas. Studies
reveal that the population in the five most populous cities of India, namely
Mumbai, Kolkata, New Delhi, Chennai & Hyderabad is set to increase at a
scorching pace of more than 50% between 1995 and 2010 and by 2025 the
number will be more than double. The 2001 Census reveals that the decadal
population growth in the urban areas is one and a half times higher than the
national average. All these statistics point to a high level of migration of
population from rural and semi urban areas to a more urbanized form of
settlement. The percentage of population staying in urban areas has steadily
climbed from 23.34% in 1981 to almost 28% in 2001. As on 2001, more than
5000 centres have been identified as urban centres in India.
Coupled with the demand for dwelling units, another major factor which has
contributed to the buoyancy of Housing activity is the affordability of properties.
This, in turn, has been the result of a combined effect of stabilized property prices,
higher level of incomes and lower cost of borrowings. In fact the boom witnessed
by the Housing Finance sector can be heavily attributed to these factors.
Housing has often been called the Engine of Domestic Growth of the Economy.
An investment in Housing and construction triggers of a series of investments in
various sectors. From Heavy Industries like Steel, Cement to industries like Paint,
27
Furniture and even to Small Scale Industries, Housing affects as many as 269
industries directly and indirectly. Housing ranks third amongst 14 major industries
in terms of total linkage effect in the Economy. The linkage effect, particularly
with reference to the Steel and Cement Industries was also underlined by the
Government in the Economic Survey of 2002-2003.
In terms of contribution to the GDP, for every rupee invested in Housing and
construction, 78 paisa gets added to the GDP. Housing ranks fourth in terms of the
multiplier effect on the Economy, ahead of sectors like transport and agriculture.
The Investments in the Housing sector has steadily increased from Rs.1150cr in
the First Plan period to more than Rs.1,20,000cr in the Ninth Plan period.
Estimates of the Tenth Plan peg the figure at about Rs.7,00,000cr.
Perhaps the greatest socio-economic impact of Housing is in employment
generation. Housing is the second largest employment generator in the country
after Agriculture. A host of vocations and professions derive their livelihoods from
Housing, either directly or indirectly. Construction workers, builders, developers,
suppliers, civil engineers, valuers, property consultants, furnishers, interior
decorators, plumbers the list is virtually unending. In a developing nation like
ours, Housing can be the solution to the most nagging problem that any
Government faces that of employment. Apart from these various indirect
benefits that the economy derives from Housing, the Government itself is a direct
beneficiary in terms of collection of stamp duty rising out of acquisition of real
estate assets.
It is therefore not surprising that the Government has left no stones unturned to
support Housing activities. The continued tax incentives on Housing Loans to
trigger a higher off-take in credit for retail Housing is a reaffirmation of the
Governments commitment to aid the sector. Other initiatives like extension of
benefits u/s 80 I to mass housing projects, scrapping of the Urban Land ceiling
act, implementation of the Securitization Act are all in line with the same
objective of propelling growth through Housing. However, it may also be added
here that there is scope of further improvement in various areas, mainly with
reference to streamlining of laws related to construction activities and
rationalizing of stamp duties on transfer, securitization, etc. When one looks at the
future, the big picture appears to be very bright. A comparison of the Mortgage
28
Finance to GDP ratio places India at the foot of the table with a penetration rate of
less than 2% , lower than the 9% of Thailand, 36% of Singapore and 51% of USA.
There is thus much room for the upside and a long way to go. With the population
of India steadily increasing, it will not be long before India overtakes China and
emerges at the top position. Demographic experts have predicted Indias working
age population the segment which has the highest demand for Housing to be
the highest. This ensures that the demand for Housing is a long and sustained one.
Rapid strides in Infrastructure development like the Golden Quadrilateral Project
and the National Highways Development Programme, which have progressed at
an impressive speed is bound to trigger off a fresh round of Housing and
habitation through further development of semi urban and rural areas as well as
setting up of new Satellite Townships.
To sum up, a reference to the Goldman Sachs Report on the Development of the
BRIC Economies can be made, wherein India is projected to have the fourth
largest Economy in less than 30 years time from now. In order to achieve that
level of growth, it is imperative for the Housing Industry to continue its
contribution to the economy at an increased pace in the future as well.
29
Chennai
Chennai real estate is a budding market. Chennai being the fourth largest
metropolitan city has regional offices of all major corporate houses and is among
the trade capitals of India. It thus offers tremendous real estate influx and is a hub
of some of the top real estate builders and developers of India. Chennai Real
Estate Builders follow a trend of the best quality at the most affordable prices.
30
Delhi
Absorption across NCR was approximately 6.6 million sq ft during 2011 and
recommitments amounted to an additional demand of 4 million sq ft. Gurgaon
Accounted for 4.64 million sq ft or 70 per cent of total absorption in the NCR.
Noida, the next biggest market, accounted for 1.37 million sq. ft or 21 per cent of
total absorption. Delhi witnessed absorption of 0.66 million sq ft of this
approximately 3.28 lakh came from new developments in Jasola, while the
remaining 2.95 lakh sq ft came from older, second-generation developments in the
CBD and South CBD.
The total supply in the NCR amounted to 11.53 million sq ft. Gurgaon accounted
for the largest share of approximately 6.4 million sq ft. Noida and Delhi accounted
for 4 million sq ft and 1.7 million sq ft respectively.
Availability of land, improving infrastructure, and better connectivity are some of
the factors why most of the supply came in the suburban areas. Prime locations
and buildings in most micro markets have low or negligible vacancy. Demand for
grade-A Properties Continues to rise in NCR, as is evident from the pre-lease
commitments signed.
31
Kolkata
Kolkata is one of the oldest urban agglomerations in the country. Kolkata lost its
position as the erstwhile commercial capital of India to Mumbai due to the
socialist manifesto adopted by the West Bengal government post independence.
Now JLLM believes the state is witnessing a resurgence driven by government
policy and support for the service industry and infrastructure development that is
once again attracting industry and capital to the city.
Bangalore
Real estate values around Bangalore have shot off the charts since 1991. Land on
the outskirts of Bangalore that was selling for US $0.10 per square foot rose to
$2.00 per sq. ft. Prices started to drop in 1995 and are now beginning to show
gains again. Real estate investors and real estate developers in Bangalore have
been on a wild ride.
Hyderabad
Of late, Hyderabad has witnessed a remarkable growth in real estate business,
thanks to a predominantly information technology driven boom in the 1990s and
the retail industry growth over the last few years spurring hectic commercial
activity. However, the real estate prices have spiraled only in some hot spots of the
city and continue to be flat mainly due to the slow down witnessed during the last
few quarters.
32
33
OMAXE
Omaxe is one of Indias leading real estate companies. Having spread its
footprints in 8 States across 27 cities, the company has in its kitty a diversified
portfolio that includes Integrated Townships, Hi-Tech Townships, Group Housing,
Shopping Malls, Office Spaces, SCOs and Hotel. With approx. 96.4 million sq. ft.
of delivered space in both real estate and construction contracting, the company is
currently undertaking 39 real estate projects 13 Group Housing, 16 Townships,
10 Commercial Malls/office spaces/Hotels/ SCOs.
The genesis of the brand goes back to 1987 when first generation entrepreneur and
civil engineer Mr. Rohtas Goel founded Omaxe to undertake construction &
contracting business. In 2001, the Company made inroads into the evolving real
estate sector. Omaxe got listed on BSE and NSE in 2007 and presently has a
market cap of approx. Rs 2500 crore. With some renowned and highly appreciated
projects, awards and accolades and more importantly, the trust of the people,
Omaxe fast spread its footprints in States like Uttar Pradesh, Madhya Pradesh,
Punjab, Haryana, Uttarakhand, Rajasthan, Delhi and Himachal Pradesh.
Omaxes repertoire consists of varied options in both residential and commercial
segments like plots, villas, floors, group housing, studio apartment etc. in the
former and shopping malls, office spaces, SCOs, hotel and entertainment etc. in
latter. In the last two decades, Omaxe has carved a niche in the evolving real
estate market with both luxury and affordable offerings. Some of the delivered
projects like NRI City, Greater Noida; Omaxe Twin Towers, Noida; Grand
Omaxe, Noida; The Forest, Noida; Omaxe Heights, Lucknow; Omaxe Residency,
Lucknow; Omaxe Heights, Omaxe New Heights and Omaxe Hills in Faridabad
etc have reinforced the companys dominance and earned it a lot of goodwill and
trust. To drive the next phase of growth, Omaxe is executing quality affordable
homes and world-class themed shopping malls and offices in cities like Lucknow,
34
35
DLF
DLF is the largest real estate company in India. The group has over 224 million
sq. ft. of existing development and 751 million sq. ft. of planned projects. DLF is
committed to quality, trust and customer sensitivity, and deliver on promises with
agility, financial prudence and in tune with the highest global standards. The
company has also entered into several strategic alliances with global industry
leaders.
DLF is India's largest real estate company in terms of revenues, earnings, market
capitalisation and developable area. In line with its current expansion plans, DLF
has over 751 million sq. ft. of development across its businesses, including
developed, on-going and planned projects. This land bank is spread over 32 cities,
mostly in metros and key urban areas across India. Already a major player in
locations across the country, DLF, with over six decades of experience, is
capitalising on emerging market opportunities to deliver high-end facilities and
projects to its wide base of customers by constantly upgrading its internal skills
and resource capabilities.
A roster of world-reputed businesses chooses DLF to jointly venture with, to seek
growth in India. Among them, Laing O'Rourke- famous UK based construction
company credited with construction of Dubai International Airport, London's
Millenium Tower, etc, will construct all DLF's landmark projects. Together DLFLaing O' Rourke shall build the expressways, ports and other megastructures of
India's new economy. Nakheel of Dubai are partnering with DLF for townships of
pathbreaking concepts in India. WSP Group Plc is also partnering DLF, providing
Management and consultancy to the built and natural environment. DLF has also
tied up with Hilton Hotels to jointly develop world class hotels in India. It is more
than market dynamics however. DLF management constantly upgrades
professional resources to construct responsive strategies, to adapt to local
preferences; to deliver high quality, in all its projects and services to a wide
customer base.
All the intensified growth underlines DLF's commitment to quality, trust and
customer sensitivity and, delivering on its promise with agility and financial
prudence. This, in turn, has earned DLF the coveted 'Superbrand' ranking for three
years consecutively, including the current year.
36
37
DLF Values
Commercial:
Retail:
Growth in organized retail
Rising consumerism
Entry of international retailers
Concept of specialized malls gaining popularity
Tourism:
Increase in International tourist arrivals
Growth in domestic tourism
Low cost airlines and improvement of airports
Medical tourism
Tremendous potential for budget hotels
Growing Knowledge and technology driven sector:
Demand for higher level education, professional trainings, better
infrastructural facilities have given a boost to DLFs business. The robust
growth in IT sector has pumped up the growth in real estate sector, approx
60% of new construction is for IT sector resulting in major projects for
DLF.
.
Residential:
CSR
For DLF, Corporate Social Responsibility is not just an add on; rather our business
and social commitment are mutually reinforcing and neither will be sustainable
without the other. We have a continuing social responsibility towards the people of
the area in which we operate more so towards the less fortunate. It has been our
constant endeavor to create sustainable economies and transform stagnant lives
into active partnerships through synergized proactive handholding in areas of
infrastructure, education, training, health and environment. We have made a
public commitment to carry on these trusted relationships.
40
10
Government Agencies
Builders
Advertisements
20
Internet
Others
Most of the respondents (20) agreed that advertisement is one of the best media to
passing information. The advertisement covers most aspects of the marketing and
catches and holds the consumer's attention and spears him to purchase a property.
41
What according to you are the features that influence you to select a
particular property (1-Most important Factor; 5-Least Important Factor)
Factors
Price
32
11
Location
43
Advertising
10
11
20
Resale value
32
13
20
Additional Facilities
20
12
This chart clearly shows that more than PRICE or RESALE VALUE of the
property, the LOCATION is the primary factor to the buyer.
42
Somewhat
interested
Neutral
Not very
interested
Not at all
interested
DLF
22
15
SUPERTECH
17
12
13
OMAXE
13
11
19
As per the survey 44% of the respondents said DLFs advertisement are very
interesting. DLF Indian Premier League created quite the awareness in people.
Real estate major DLF, which is making fresh efforts to launch its public offer,
plans to leverage the power of cricket to enhance its brand image across the
country and has earmarked Rs 100 crore investments in next two years on
sponsorship, cultural events and advertisements.
Strongly
Neutral
Strongly
Agree
Disagree
SCALE
RESPONSE
11
23
Most of the respondents (23) strongly agree that promotions influence sales. Sales
promotion has a central role to play in developing brand image, whether at the
corporate, retail or product level. It informs consumers of the functional
capabilities of the brand while simultaneously imbuing the brand with symbolic
values and meanings relevant to the consumer. .
44
12
31
45
Which media do you think Supertech should use for giving ads?
Likely
Unlikely
MEDIA
Newspapers
17
14
TV
24
20
Magazines
15
15
Combination of these
20
22
YES
38
NO
12
47
Great effect
23
Insignificant effect
19
Small effect
No effect
48
16
30
Advertisements must catch-hold and sustain the consumer's attention and push
him to respond. Also critical to marketing communication is knowing if the
message was perceived as intended. Also the advertisement should stay/stick in
the consumer's mind. It should be memorable and allow for easy recall.
49
No. of respondents
Seldom
20
Regularly
30
50
The organization has acquired useful experience of real estate sector with
different and complimentary skills from the rich network of first class
intermediaries, banking institutions, high-net worth individuals plus some
of the very most respected designers in and out of India.
with the most advertisements. Hundreds of faxes are sent from the head
offices of networks urging salespeople in branch offices to do more
advertising and beat the other networks. There are gala dinners with prizes
for salespeople who have persuaded home-sellers to pay the largest sums
of money for advertisements.
With the aim to enhance the image of the nation by creating world class
projects, Supertech promises To give the nation new horizons by
expanding one idea into a concept of unimaginable advantages and offer a
plethora of services and projects. Supertech Ltd intends to feature as the
connoisseur of impeccable taste and magnificence in real estate.
52
BIBLIOGRAPHY
Books
Etzel M.J., Walker B.J., Stanton W.J. and Pandit A. (2009), Marketing
Concepts and Cases 12th edition, McGraw Hill
Websites
www.krepublishers.com
www.ibef.org
www.economywatch.com
www.supertechlimited.com
http://www.ndtv.com/
53
APPENDIX
QUESTIONNAIRE
Q1. For buying a house from where will you or from where do you get
information?
From Property Dealer
From Government Agencies
From Direct From Builders or from the Companies
Advertisements
Internet
Others
Q2. What according to you are the features that influence you to select a particular
property (1-Most important Factor; 5-Least Important Factor)
Price
Location
Advertising
Resale value
Good promotional offers
Additional Facilities
SUPERTECH
DLF
OMAXE
55
Q6. Which media do you think Supertech should use for giving ads?
Newspapers
TV
Magazines
Combination of these
No
Q8. Do competitive pricing strategies have any effect in persuading you to keep
that property?
Great effect
Small effect
Insignificant effect
No effect
56
Q10. In your opinion how frequently real estate companies make an attempt to
analyze the composition of marketing mix of their competitor?
Seldom
Only at slump season
Regular
57