C O M P A R I T I V E S T U D Y O F M A R K E T I N G S T R A T E G I E S I N R E A L E S T A T E I N D U S T R Y

Ankit Kumar Bharat Krishnan Mudit Dayal Nikhil Thapar Ravissant Markandey(WMP08004) (WMP08008) (WMP 08023) (WMP 08024) ) (WMP 08037)

Presented by:

Agenda

Company Profile

• SWOT

• Marketing Mix

• Key Findings of the Survey

Analysis of Consumer Behavior

Suggestion and recommendation

[2]

Company Profile – Basic facts

[3]

Ansal API was set up in 1967 as a Real Estate Development Company.

Over the years, the company has expanded its presence into more and more segments in the Realty and Infrastructure sectors.

The company presently operates in the following verticals:

Integrated TownshipsRetail Shopping MallsCommercial projects Hi- Tech Engineering

IT ParksSEZsFacilities Management Infrastructure & Utility Services

Development and Delivery Track record

[4]

A total of 17.59 mm sft has been delivered under the commercial and residential asset classes by APIL in various locations in Delhi, UP and Haryana

A total of 17.59 mm sft has been delivered under the commercial and residential asset classes in various locations in Delhi, UP and Haryana

Current Projects in Greater Noida

[5]

S.W.O.T Analysis

[6]

Marketing Mix

[7]

Place

Typically a group housing society offered by Ansal API comprises of

Type Super Area1 BKK 650 – 700 Sq Feet2 BHK 950 – 1100 Sq Feet2 BHK + Study 1100 – 1250 Sq Feet3 BHK 1300 - 1400 Sq. Feet3 BHK + Study 1350 – 1600 Sq Feet4 BHK 1800 – 2100 Sq. Feet

The group housing society comes in with integrated facilities like covered car parking, club house, swimming pool, power back up and security system.

Price

Typically the price is calculated at per sq/feet rate and the approximate prevalent rate of projects by Ansal is around 2700 per sq feet in Greater Noida.

Marketing Mix

[8]

PromotionAdvertisements 1) Printed Media through news papers, magazines and brochures.2) Banners and Hoardings in all major Highways and places of commercial importance3) TV commercials and advertisements4) Property Expo’s and fairs

Sales Promotion1) Offering a Pre-launch discount2) Offering flexible payment terms3) Hassle free Loan availability from major banks4) Festive offers5) Integrated wood work and additional facilities like RO, Chimney etc

Publicity Over the years, Ansal API has established for brand for itself in the market and is known to offer a Quality projects.

Marketing Mix

[9]

Place

As this is a high priced product and not a product of daily use so there are limited channels of distribution

Property Agents

Direct Selling at Corporate Office

Selling camps at site locations

Property portals

Property Expo

Analysis of Survey

• 50% of the respondents wished to buy a residential flat in next 2 years

• 48% lived in a rented apartment among which 45% of them were willing to buy

a residential property in the near future

• 50% wanted to buy a real estate as an investment option

• Majority of people who were willing to buy a residential property were between age group 25-40

• Gross Annual income of a family had direct relation with the type of buying preference(1BHK 2BHK,3BHK or Penthouse)

• Around 70% respondents wanted to purchase a real estate property through bank loans

• Around 70%of respondents wanted to invest in a new property against only 16% preferring resale and 16% preferring sale after construction

• Architecture, location of project ,ease of payment and maintenance after possession formed utmost consumer preference factor for choosing a real estate.

[10]

[11]

Study and Analysis Of Consumer Behavior

Social Factors

• Income

Income group had strong coherence with the type of purchase

Salary Bracket(In Lacs) Preference(BHK)

< 5 lacs 1 or 2 BHK

5 -10 Lacs 2 or 3 BHK

> 10 lacs 3 BHK or Villa

• Reference Groups

Most effective form of advertisement was through wordof mouth by family, friends and relatives that is primary groups play a very important role in buying.

[12]

Study and Analysis of Consumer Behavior

Personal Factors

• Age

o 28-45 possessed a greater potential attributed to Easy availability of loans.

o Repayment capacity.

• Occupation

o Preference of working class for gated apartment (Corporate schemes to attract pool of buyers.

o Business class preferred villas/independent house.

Growing Middle Class

Strong Demand for New Housing (m) 2005-2030 p.a.

2.7

2

1.2 2.8

2.8

1

6.9

0 2 4 6 8 10

Population GrowthReplacement

Supply GapSmall Household

Total

Households (000’s)

Annual Income (Rs mm)

increase in middle income families – driving on economic growth more number of rich families in the market space demanding more options and quality real estate changes in tastes and expectations have also lead to a drastic change in the way real estate is being looked at increasing demand for affordable space

Housing Scenario

Source : DB Research

with the projected demand growth for owned housing and demand per annum for new housing the industry provides an immense opportunity to capitalize Large scale investment in billions of US$ required to fulfill this demand gapThe demand gap increasing every year with the increase in population and urbanization

Housing Demand

Rs.0.5-1.5 mm

Rs.1.5-3.0 mm

Rs.0.5-1.5 mm

Rs.1.5-3.0 mm

Rs.0.5-1.5 mm

Rs.1.5-3.0 mm

Rs.0.5-1.5 mm

Rs.1.5-3.0 mm

Gurgaon Noida / Greater Noida

Ghaziabad Faridabad

0

1000

2000

3000

4000

5000

6000

7000

8000

SupplySupply

Housing Shortage & affordable housing absorption showcase a strong fundamental driver in the shape of housing. Continued investment in housing will reap positive results

Low Mortgage

1989-99 2003-04 2009-10E0

200

400

600

800

1000

1200

1400

1600

Rs. (bn)

Housing loan disbursement

Increasing rental substitution with capital investment in real estate Middle Income family’s acceptance to mortgage increasing tremendously Lower mortgage rates and consumer friendly policies – popularity increasing Even today mortgage rates low against other countries - traditional practices changing

Strong Demographic & Economic fundamentals driving the demand

Analysis

[14]

RECOMMENDATION (based on survey conducted)

• Analysis

o Huge demand residential flats in Noida and Greater Noida

o Consumers prefer a group housing society of a reputed builder which gives timely possession and has good construction quality

o Consumers also have a strong preference for a flat having low maintenance and maintenance cost of Ansal finished projects are seen at a bit higher side.

• Recommendation

o As a policy they should make more use of social media to reach out to a larger audience

o Better advertisement should be adopted rather than plain brand building

o Give corporate discounts as offered by other builders as a mechanism to increase sales

[15]

Positioning (Perpetual Map)

High Quality

Low Price

Low Quality

High Price

Sources and References

[16]

Ansal API Web Page www.ansalapi.com (09-01-2013) American Chambers of Commerce in India Web portalhttp://www.amchamindia.com/CBRE-AMCHAM_Indian_Real_Estate_Report.pdf (14/01/2013) Knight Frank property consultants web-portalhttp://www.knightfrank.co.in/en/news (16/01/2013) Discussion with the management of the company

.

T H A N K Y O U

Ankit Kumar Bharat Krishnan Mudit Dayal Nikhil Thapar Ravissant Markandey(WMP08004) (WMP08008) (WMP 08023) (WMP 08024) (WMP 08037) [17]