[Document Title]

by

[Student’s Name]
[Class Name]
[Teacher’s Name]
 TABLE OF CONTENTS

CHAPTER 1 #

SECTION 1.1 #
SECTION 1.2 #
SECTION 1.3 #

CHAPTER 2 #

SECTION 2.1 #
SECTION 2.2 #
SECTION 2.3 #

CHAPTER 3 #
SECTION 3.1 #
SECTION 3.2 #
SECTION 3.3

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 EXECUTIVE SUMMARY
Oasis Homes is a product, which is a breath of fresh air in the real estate sector. It is a
bold step by Oasis Company to come up with a unique product, which relieves the
customer from headaches of buying and then constructing a home.

In light of recent frauds and bogey schemes, Oasis offers a safe investment for the
people, wanting to invest in a profitable project, which can secure their savings as well
as provide shelter in the form of luxurious homes available at competitive price.

Oasis offer a product, which none of its competitors offer in the city that is 400 square
yard plot of land and then take the liberty to build a home for the customer.

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 INTRODUCTION

It is a headache to buy a piece of land, which is safe and secure. Then to bare the
agony to construct a home on that piece of land is a complicated matter. There is a
need of the people to make this matter trouble-free. Considering this demand of the
people, a project to fulfill this necessity Oasis Group of companies have decided to
make a housing society, high on quality available on reasonable prices to cater the
shelter needs of hard working middle/upper middle class. With the demand of half a
million houses annually1, this project is shaping up to be successful.

1
http://jang.com.pk/thenews/may2009-weekly/busrev-25-05-2009/p2.htm

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 MISSION STATEMENT

“To built dream homes for every hard working

person, with a touch of elegance and
compromise on quality. We aspire to become
the biggest builders of Pakistan, and to
become the candidate for all major
development programs in construction.”

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 VISION STATEMENT

“In few years time, we want to be known

within Pakistan, gain trust of people and to
instill that with the name “Oasis", comes
quality at competitive price. We want achieve
such level of excellence in our field that we
are known as the benchmark for the rest to
follow.”

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 AIMS AND OBJECTIVES

Our aim is to provide high customer satisfaction, capture the vision of canvas into the
real world that is to come up with fresh and unique products. We want to increase our
Brand power and want to expand. This project is the first small step in our list of projects
waiting in the pipeline. Our aim is to discover different aspects of home construction and
then to move forward in other sector of construction.

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 CURRENT MARKET SITUATION

The current market situation is that a lot of developing projects are going on. The city is
expanding day by day with the increase in population. Due to population density
geographic shifts are taking place. For the reason most of the builders have launched
new housing schemes in Karachi. Apart from population factor real state business is
one of the profitable businesses. And people are investing in real state business as they
reap high profits from fewer investments. Even though there are countless residential
projects going on both in private and government sector, but apart from small private
constructing projects there few larger residential projects going on, e.g. farzana royal
city, Noman royal city, etc. hundreds of similar projects were completed and yet many to
come up.

But if we compare these projects with our housing scheme so the current market
situation won’t affect our project to that extent. Because the total number of residential
projects that we have mentioned above includes residential apartments, cities, and
towers. where as our project consists of only 200 bungalows of same size, so there is
no other similar housing scheme currently going on in Karachi city.

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 MARKET NEED

There is a requirement of half a million houses annually i to fulfill the demand of the ever
increasing population of demand. But only 200,000 houses are built, leaving a gap of
300,000, hence we can safely conclude that there is a need of a product of this sort,
which is fulfilling the basic need of the people.

MARKET GROWTH

The real estate sector, is a developing sector, it contributes to the GDP from 10% to
12%ii. With the increase in population, the real estate sector has also shown an
increase, many projects were started in the current year, in Karachi only, e.g. Farzana
Royal City, Taeser town, Noman Royal Villas, Rufi Dream Land, etc. Hence it is visible
that even though recession has slowed down the rate, it has not been able to stop the
increase in real estate sector.

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 COMPANY’S MICRO ENVIRONMENT
COMPANY:

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 SUPPLIER:
We have different suppliers in accordance with our location, we do have a common
problem that is inflation, and global economic crises which has severely effected the
construction sector in Pakistan due to overwhelming increase in prices if raw material
e.g. cement, iron and bricks etc. on the other hand suppliers are more interested to
export and smuggle cement and iron to Afghanistan owing to its desirable price due to
its great demand there, as Afghanistan is going through the process of reestablishment.

Since we have to cop up with this problem no matter what happens therefore we have
developed two strategies, and it will be decided according to situation whether to apply
1st strategies or 2nd.

• It is added in our terms and conditions that if inflation affects the construction
process the amount will be paid by customer.

• Fix 3% fluctuation rate.

CUSTOMER:
After studying the five types of consumer market closely we have the following
consumers.

Consumer market: it includes those consumers who will purchase our product for
personal consumption or personal use only. Since our prime priority is consumer
satisfaction so firstly we will target consumer market.

Reseller market: Resellers are allowed to purchase our product. This will prompt our
sales process.

Since it is a local private housing scheme therefore no business, government and

international market is involved.

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 COMPETITOR:
There are a lot of competitors in our field. But for this project there is almost no threat of
competitors as this housing scheme is unique in itself. For the first time we have
introduced such housing scheme in Karachi as it has never been done before in
Karachi. However several housing schemes of this type have been introduced and
developed in other cities of Pakistan e.g. Lahore and Islamabad. If any competitor
wants to develop same type of housing scheme, there are many barriers for entry i.e.
finding any prime location which is a key to the success of any housing scheme.

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 COMPANY’S MACRO ENVIRONMENT

DEMOGRAPHIC:
Trend of Population Growth in Karachi:

The population and demographic distribution in Karachi has undergone numerous

changes over the past years. Non-governmental and international sources report that
Karachi's current population is estimated to be 20 million a huge increase over its
population.

The city's population is currently growing at about 5% per year (mainly on account of
rural-urban internal migration), including an estimated 45,000 migrant workers coming
to the city every month from different parts of Pakistan. Karachi is the one of the largest
megacities in the world.

Currently, these older groups of people and continuing migration from different parts of
Pakistan have contributed to a rich and diverse mix of people that live in Karachi. This
has given the city a very metropolitan character.

YEAR Urban Population

1856 56,875
1872 56,753
1881 73,560
1891 105,199
1901 136,297
1911 186,771
1921 244,162
1931 300,799
1941 435,887
1951 1,068,459
1961 1,912,598
1972 3,426,310
1981 5,208,132
1998 9,269,265
2006 13,969,284
2007 14,500,000

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 The total area of Karachi is 3,527 km², for convenience the City-District of Karachi is
divided into eighteen towns. The towns are sub-divided into 178 localities. Karachi’s
density is 4,115 persons/km².

ECONOMICS:
Being the business Hub of Pakistan, Karachi is generating 65% of the total national
revenue. This means that people of Karachi hold great wealth. Therefore we have the
most suitable customers living in Karachi as far as economical factors are concerned.

NATURAL:
As construction is all about fixing finished goods together, so we have got nothing to do
with the natural environment because all the raw materials we receive are manufactured
in the factories and are finished goods. And nothing that we use in construction process
is neither harmful for the environment nor for human health.

TECHNOLOGICAL ENVIROMENT:
In the housing scheme the maximum height of a house will be two stories only. Since
there is no huge building there in the housing scheme so we do not need any high tech
machines or newer technology for the construction process. We will be using ordinary
mixer machines, trucks, tractors, rollers, loaders, excavators etc.

POLITICAL ENVIROMENT:
Any change in political environment will affect the whole construction sector together.
Therefore we work according to new modification made by the entire sector. Yet there is
another option that is to work on smaller scale as it won’t involve that mush
governmental or political factor.

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 CULTURAL ENVIROMENT:
Cultural environment is favorable for our company. As we know that there was a strong
joint family system in Pakistan. But now with the changing environment people prefer to
live separately. This is helping us to construct smaller homes in less time and quick
sales.

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 MARKET SEGMENTATION

GEOGRAPHIC SEGMENTATION
The city of Karachi is a metropolitan city; it generates the highest percentage to the
GDP of the country. Therefore it attracts investors, skilled and unskilled labor to the city.
New settlements have started in the suburbs of the city due to overpopulation in the
main city. Therefore people will look to buy a house in such a city.

DEMOGRAPHIC
Age and Life cycle; a person over the age of 35, who is looking for a home to settle
with his family will look to buy a home, as only an establish person with a family would
want to and will be able to buy his own home.

Income; a person of middle/upper middle class with a income level of 100,000 per
month or over is our target, as a person below that will not able to buy a house of 400
square yards in a developing area such as Gulshan-e-Maymar

PSYCHOGRAPHIC
• Shelter is a basic need, which needs to be fulfilled; this factor will affect the user
to buy a home, as with a home comes security. A home also satisfies the social
need of a person.

• The idea of a lavish and luxuries lifestyle will prompt a person to buy our product.

BEHAVIORAL
Occasion;

• when a person is looking to settle with his family

• when a person is looking for a shelter

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 • when he is financially strong and is able to buy a home

• when a person is looking to live independently with his own family, moving away
from a joint family system

Benefits;

• A friendly environment for families to live in

• Same social class (middle/upper middle) will be living in Oasis Homes, as we

offer only 400 square yard houses.

• It also offer a status symbol for the people

• Fulfills the needs such as security and social needs.

USER STATUS
Potential user; a person looking to settle with a family

First time user; people who don’t a home of their own, people who live in rented
houses or don’t have a house in the city of Karachi.

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 TARGET MARKET

Our target market is middle/ upper middle class having an income of 100,000/month
and over, the skilled labor force of our country working in large national and
multinational companies.

Age: above 35, looking for a comfortable and affordable home for his family, or people
above 40, who has saved up earning to buy his own house.

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 POSITIONING

We position are self one of the best housing scheme in the county. We are here to
satisfy the needs of our customer by providing them best service at a valuable price. We
are providing an environment in which people of same social class will live together.
The thing which makes us superior to our competitor is that we are providing villas of
same size.

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 PRODUCT

Our aim is to build hundred houses of 400 square yards each of high standards.
For the convenience of residents we will build two commercial areas equipped with
basic resources. Our plan is to build one masjid substantial in size, which can easily
accommodate all the residents and more. Keeping the necessity of parks in mind, one
park in the middle of the society will be build. Our aim is not only to build homes but
create a healthy environment for the families to live in, therefore an alluring community
hall for residence so that they can arrange events in their area, whether it is to celebrate
a birthday or an engagement their, or any other event, they can do it in the society itself
rather than book a hall somewhere else in the city. It also provides a chance for the
families to congregate and to get acquainted with each other.

Traffic is always a problem in Karachi, even though hundred houses wont create much
traffic yet for the comfort of our customers our plan is to construct wide roads.

For the security measures we intend to build a boundary wall, which will surround the
Oasis Homes society along with that we will hire a private security company so that our
residents can feel secure.

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 PRICE

We are following general pricing method. As compared to our competitors we are

offering very convenient prices. One of our largest competitor is Rufi Builders they are
offering 200 yard2 at a price of 6000000/= Rs per house. Which means that charging
20% more than then our price. Whereas we are offering 400 Yard2 house at price of
10000000/= Rs which is much less then any competitor. Therefore it is concluded that
our pricing is one of our strengths.

Similarly we are providing extremely convenient payment schedule compared to our

competitors. Along with this we are offering discounts as an opportunity to our
customers.

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 Payment Schedule:

Mood of payment Residential Discounts

Booking 150000
10% if paid at the time
of booking
Allocation 350000
In 180 days after booking

Confirmation 500000

108 months Installments (42000×108)

4500000

Payment to start quarterly 500000

installments

12 Quarterlies (250000×12)
3000000

On possession (5 lac+5 lac) 10000000

6 month + 6 months

Total cost 10000000 Rs.

15% extra amount on corner plots.

10% extra amount on plots in front of park.

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 PLACE

Location that our team of experts has chosen is near Gulshan-e-Maymar, opposite to
Ahsanabad. There are many reasons to why we have selected this area. The population
of our country is increasing day by day, so is the population of the Karachi. The main
city is becoming over populated day by day. The suburb areas of Karachi are starting to

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 get the attention of the people. Suburb area of Karachi include Surjani Town, Gulshan-
e-Hadeed, MDA, Steels Mill and Gulshan-e-Maymar

Out of all these areas Gulshan-e-Maymar has been the shinning star. The prices of land
in the past increased and in the future they are again expected to rise as there is high
expectancy that investors will make Gulshan-e-Maymar their center of focus, it is due
the fact the people are willing to buy land in that part of the city.

Though Gulshan-e-Maymar is away from center of the city road such as Super
Highway and Lyari Express Way connects this area to the center of the city.

Gulshan-e-Maymar is in itself a large area, the specific location of Oasis Housing

Society is, east to Super Highway, opposite to Ahsanabad. The belt along the Super
Highway has experienced a boom in recent years. When prices of 400 square yards in
MDA were declining from 12 lakhs to 2 lakhs, prices of 100 square yard in Lyari Basti,
located near Gulshan-e-Maymar rose from 1 lakh to 4 lakhs.

The reason we choose to build our product on the east of Super Highway, the
area on the left side of Super Highway is already developed quiet a lot, hence prices of
undeveloped land has also risen, price of 400 square yard in that area is almost 35lakhs
where as the land opposite to it, our project location is almost its half, therefore this is a
wise move as an investor by the company.

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 PROMOTION
Promotion will be through advertising, satisfying costumer from booking to the hold of
the house.

ADVERTISING OBJECTIVES

The first advertising objective of oasis will be to create brand awareness for the targeted
market. Oasis advertises usually strives to achieve two advertising objective

TRIAL: to encourage customers to make an initial purchase. It’s difficult encourages

people to try this product because a person buys home once or twice in a lifetime. But
our all the efforts of advertising will be to attract customers at least to the booking office.

BRAND SWITICHING: to change the habit in such a way that people may switch to our
product as they find new and innovative features and will find different from our
competitors. And this can only be possible through unique and different advertising
strategy from our competitors.

The campaign for oasis is designed in such a way that it will continuously strike people’s
mind and retrieve them to know the brand name and product, so that they can consider
it while making a decision about buying a house.

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 PROMOTIONAL STRATEGY
1st MONTH

In the first month of campaign Oasis will utilize two sources for promotion with the
placement of brochures and flyers in different places. The objective for the first month is
to introduce the brand name and brand sponsorship with decent style which creates the
value for the brand in the eyes of the people.

PRINT MEDIA

As most of the people reads news paper especially on Sundays, we will just publish a
front page color add on THE JANG and THE DAWN. These print ads will only be
published on Sunday’s edition.

THE JANG: we have chosen this news paper because it is delivered and been read in
almost each and every upper middle class home. And it is a perception in people’s mind
that as The Jang has quality and name, the advertisement printed in this will also have
quality and value.

THE DAWN: as The Dawn is the most valuable and reliable English newspaper and
been read by offices and business executives, this will help in creating Oasis brand
name in the market.

BILLBOARDS

As not to overload people’s mind and not to irritate them with huge publicity Oasis will
only be hiring one billboard at the most busiest place of Karachi which connects I.I
Chundrigarh road. The board is in the way through to Sharah-e-Faisal to I.I Chundrigarh
road, because many offices executives pass through that place.

PLACEMENT OF BROCHURES

Brochures and flyers will b placed in different clubs, resorts and banks.

CLUBS: many upper middles class people are fond adventure and fun, enjoying
Sunday are their hobby and for that purpose they join different clubs. So that is the

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 reason why Oasis have decided to place flayer and Brochures in clubs like Dream
world, Pavallion end, Karachi club, Karachi gymkhana. Etc.

BANKS: people come to bank for financial activities. Some come for house loan also.
Placing the vrochers their may give them one more option or may be the right one by
getting a free vrocher from bank.

DIGITAL MEDIA

Oasis will have its own website for information to costumers and details of the project.
But along with this ad banner (234*60 pixels) will b published on different heavy traffic
websites, on their home page, so that they can b linked to our website and can have the
project details asily.

2nd MONTH

The objective of 2nd month will be to strike the target market which the Oasis has
planned, the upper middle class. In the 2nd month one more medium will b use as the
ads in the newspaper and billboards from first month will remain in action.

TELEVISION MEDIA

The 30 sec. tele ad will be on aired on different channels at different timings. The ad will
contain only basic information about the product, the location, features and little bit of
price. Not to show different males and females singing a song as this kind of stuff is
disliked by people and is portraying a bad image of brand.

BUSINESS CHANNELS: the idea of choosing business channels is to convey the

message to the right person. Because business channels are viewed by different
investors and the person who watch situation of stocks and business updates regularly.

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 3rd MONTH

The objectives of 3rd month will b to reduce the weight of advertisement and to start low
expense advertising, so as to maintain the balance between the marketing the brand
name and expense. This period will also continue television advertisement but with light
weight age this time. And other thing to cut expense is to slow down the number ad
advertisement in newspaper. This time the ads will b published in alternate Sunday’s
manner.

PUBLIC SERVICE MESSAGES: Oasis will on air public survey messages based on
environmental violation and social responsibility. This will add oasis’s brand name a
value because serving society always please people and this is like a free marketing,
channels sponsors these kinds of activities.

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 SWOT
STRENGTH

- Unique product; not many building companies have attempted to build houses
of 400 square yards, at least in Karachi. Many towns which are offering 400
square yard land are only selling the land, not building the houses (e.g. Taesar
Town). Where as builders who are offering too built houses are not building 400
sqaure yards, e.g. Rufi pearl city are building houses, ranging upto 240 square
yards

- Development of Gulshan-e-Maymar; Gulshan-e-Maymar has shown that it has

potential to be the hub of investors plan regarding construction and development.
The recent development supports this facts,

- Access to city’s center; Lyari Express Way connects Gulshan-e-Maymar to the

center of city. Super Highway connects with M.A. Jinnah road

- Limited number of homes; as there are only 100 homes, which means that they
will be easy to maintain and hence recovery of investment will be quicker.

- Economical prices of land; compare to nearby places, our project place is

reasonable cheap. Our Project site is opposite to Ahsanabad, where land rates
are almost double. This means that we are saving our cost here.

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 WEAKNESS

- No Brand Power; as we are new company, therefore we have no brand power,

which means that people can be reluctant to buy our product. People are even
more cautious when it comes to buying a house.

- No big hospital near by; though there are many clinics present but there lacks a
hospital that is well equipped, like Agha Khan Hospital.

OPPORTUNITY

- No major competitor; there are no major competitors of our product; hence we

have an edge in market over others.

- Increase in Population; as the population is increasing, people will need to fulfill

their basic need of shelter. The main city of Karachi is already densely populated;
hence new settlements will be done in the suburbs of the city.

- Availability of Labor; Cheap labor is easily available in Karachi.

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 THREATS

- Government policies; the government hasn’t taken any steps to encourage the
investors in real estate, rather discourage them by increasing CVT [capital value
tax] on real estate to 4% from 2%.

- Recession; as currently our economy is in recession, therefore people might not

have the power to but the product.

- Fluctuating rates; The prices of raw material keep on fluctuating in Pakistan,

which makes it difficult to cover in the estimated cost and complete the project on
time.

- Current security situation; the current security situation of Pakistan is a

nightmare for an investor, as no investments are safe due to security threats.

- Linguistic conflicts; few months backs there were clashes between Urdu-
speaking and Pashto-speaking, it made the air tense in area of Gulshan-e-
Maymar and its surroundings.

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 COMPETITION

Direct competition: the housing schemes in Karachi are our direct competition. Our
company doesn’t face a stiff target from any of our competition as we have a product,
which is unique.

Competitors such as;

PRIEMIER REGENCY VILLAS (240sq yard single story bungalows)

NOMAN ROYAL VILLAS (80sq yard single story, 120 square yard single story)

RUFI DREAM LAND (offers; 240sq yard single story bungalows)

They all offer bungalows less 400 square yards, and they also offer houses of different
sizes in the same housing scheme, where as We offer houses of only one range that is
400 square yards. And their target market is middle and lower class

Indirect Competition: our indirect competitor is Bahria town as they offer houses of
different ranges for middle/upper middle and upper class. If Bahria town decides to
expand in Karachi, it will become our direct competitor.

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 BUDGETS

VARIABLE COST

Cost/unit No. units Total Rs

House Construction Cost 7,200,000/per house ×100 720,000,000

*construction cost is 2000 Rs/Feet2 & construction cost includes labor + material and
machinery cost)

Park and Masjid cost 8000000

Road cost 135000/running meter × 130 17,500,000

Total Variable cost 745500000

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 FIXED COST

Cost/unit No. units Total Rs

Land cost 8896000/Acre ×12 106752000

*Market value of land is 11000000. According to Sindh govt lease policy will get land at
value 19 % less then market value.

Office rent and salary expense 200000/month ×12 2400000

Gas Connection cost Main supply line to housing Scheme 50000

4500 single meter installment×100 450000

Total 500000

Electricity Connection cost 120000 per transformer×8 960000

6000 single meter installment 600000

Total 1560000

Water connection cost 650400

Rs

Sewerage Cost 677430

Rs

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 Employee’s salaries for the project 87000000 Rs

MARKETING EXPENSE :

ADVERTISING BUDGET FOR FIRST MONTH

PRINT MEDIA Rs.563400

BILLBOARD rent Rs. 108000

per month (size
2700 sq.fit)

PRINTING OF Rs. 10000

VROCHERS

WEB Rs.30000
ADVERTISING
(for three months)

TOTAL FOR 1st Rs. 711400

month

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 ADVERTISING BUDGET FOR SECOND MONTH

PRINT MEDIA Rs. 563400

BILLBOARD rent Rs. 108000

per month (size
2700 sq.fit)

TELEVISION Rs.30000+ Rs.22500=

MEDIA (morning Rs.52500
show+ day time)

TOTAL FOR 2nd Rs.723900

month

ADVERTISING BUDGET FOR THIRD MONTH

PRINT MEDIA Rs.281700

PUBLIC SURVEY Rs.30000

MESSAGES

TOTAL FOR 3rd Rs.311700

month

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 Total Fixed cost 122986830

Contribution margin= selling price/unit – variable cost/unit

10000000 – 7455000
=2545000

Break-even= fixed cost ÷ cont margin

112539830 ÷ 2545000
≈ 49 houses

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 SALES AND PROFIT FORECAST:

1st year

70 houses booking 19250000 Rs

Fixed cost – 1st year income

122986830 - 19250000

1st Year loss 103736830 Rs

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 REFERENCES
• www.pro-paksitan.com
• www.statpak.gov.pk
• www.cia.com
• www.zameen.com
• www.dawn.com
• www.defence.pk
• www.realmarketing.com
• www.Starmarketing.com
• www.gov.pk
• www.rufibuilders.com
• www.bahriatown.com

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i
http://jang.com.pk/thenews/may2009-weekly/busrev-25-05-2009/p2.htm
ii
http://iiu.edu.pk