A piece of land, including the air above it and the ground below it, and any buildings or structures on it is defined as real estate. According to W. B. Brueggemon and D. Fisher the term real estate refers to the physical and improvements and the ownership rights associated with the real estate are referred to as real property.
Basically according to the finance dictionary Real Estate means to the piece of land and all physical property related to it, including houses, fences, landscaping and all rights related to the air above and earth below the property. With rapid urbanization of the cities and metropolitan areas real estate is a familiar word to the city dwellers. Real estate deals not only with the architectural design and infrastructure of a building but also with its finance and potentiality. It is an area that is highly influenced by the population density, income generation and tastes of the people and economic growth of a country under different period of time.
Perspective of Real Estate Business in Bangladesh
(A Brief History)
Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to this picture. In Bangladesh, the problem of urbanization is further aggravated by limited land supply in urban areas, lower land utilization and lack of proper planning and land use policy. As globalization increases, the process of urbanization increases. The ever increasing urban population is creating an increasing demand for shelter. The UN declaration and the constitution of Bangladesh recognize the right of shelter (REHAB, 2003). But being a government of the poor developing country, it is almost impossible on the part the government to ensure housing for all.
As public sector failed to ensure their right, people have taken their own initiative to ensure their fundamental need for shelter. This paper is an attempt to observe how private developer and real estate companies are influencing the urbanization pattern with special reference to Khulna and to provide some guideline for sustainable development of this sector.
The current trend of urban growth in Bangladesh is about 5-6% per annum. At present 28% of Bangladesh’s population live in urban areas, which will be 34% by the year 2025 (REHAB, 2003). The present estimated population of Khulna is 1.2 million and estimated growth rate is 3.8% per annum (USAID, 1999). The Real estate developers are playing the vital role regardless of high, middle, and low-income people since the past two decades in providing the housing provision. Considering this situation, this paper is to identify the role of Small Scale Private Real Estate Entrepreneurs (SSREE) in providing the housing facilities for the growing urban population and how these SSREE are influencing the growth pattern of the city.
In our country large scale Real Estate Business in private sector started gaining momentum from the beginning of 80s. It was initially started by some good entrepreneurs but gradually profit margin allured in a group of unscrupulous and notorious people.
The initial concept of real estate finance in Bangladesh evoked probably in the hand of Eastern Housing Limited by undertaking their first land development project for housing in Mirpur area of Dhaka city known as “Pallabi” Project”. It was around 1950’s. During 1970’s apartment development got gross acclamation by the middle class city dwellers and by the late 1980’s it was an established ordinary deal among all levels of income group. And at present, the concept of real estate is getting expanded not only around developing apartments but also model cities, shopping malls, major infrastructure, commercial set-up with elaborate view of high profit margin.
During 1970’s there were fewer than 5 companies in Bangladesh engaged in this business. In 1998 there were 42 such developers working in Dhaka which increases to 250 during 2003 (REHAB, 2003).
Current perspective of Real Estate & Housing in Bangladesh
Many studies have been carried out of the urban and rural housing and services situation and housing delivery systems, in particular by the Center for Urban Studies in Dhaka. The poor economic situation and income inequality in the country is reflected in the quality of the housing stock. It was estimated that close to half of all housing units in the country (3.3 million in 1993) were made of temporary materials and needed replacement within a 1 to 5 year period.
Approximately one third of all houses in urban areas were constructed outside of the formal regulatory system, mostly on land to which the homeowner does not have a formal title. A 1993 survey of Greater Dhaka showed that there were 2,100 slums which comprised 3 million people (MHPW, 1993). The table shows some characteristics of the housing sector compiled from different studies conducted by the Center for Urban Studies
REHAB Profile
Preamble: Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to that picture. The ever-increasing urban population is catering an increasing demand for shelter. The right of shelter is a fundamental right, which is ensured by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part of the government of Bangladesh alone to ensure housing for all. Here comes the need of private sector real estate development.
It is a recognized fact that the health of the Real Estate Development Sector is the barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in late seventies. During 1970s there were fewer than 5 companies engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2004 there are about 250 companies engaged in this business.
Formation of REHAB: With the number of companies increasing gradually, various problems concerning the housing sector cropped up requiring early solution. At this stage it was necessary to form a trade association of the Real Estate developers to protect the overall interests of the sector. To strengthen the role of real estate sector Real Estate & Housing Association of Bangladesh (REHAB) was formed with only 11 members in 1991. The objective of REHAB was to promote formal private sector Real Estate Development in Bangladesh.
Present Performance: REHAB is the only trade organization of Real Estate Developers with a current membership of 145 Developers. All major institutionalized Developers are members of this organization. REHAB is also the “A Class” member of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). In the recent years REHAB has played a very significant role in nation building through Real Estate Development by its members. The members of REHAB contribute a large amount of revenue to the Government exchequer in terms of Registration Cost, Income Tax and Utility Service Charges.
REHAB organizes its most colorful annual event REHAB Housing Fair each year in Bangladesh for the member developers, financial institutions and building material providers. It has already successfully completed three Housing Fairs during 2001, 2002 & 2003 at Dhaka Sheraton Hotel Complex. To foster the growth of Real Estate Sector REHAB plans to organize Housing Fair abroad for the Bangladeshi individuals who are living different countries of the World to buy apartment, land and commercial spaces in their home country. Accordingly, the first – ever Housing Fair abroad organized by REHAB on August 2004 at Quality Hotel Hempstead, 80 Clinton Street, New York, USA.
HOUSING SITUATION IN BANGLADESH
The housing situation in Bangladesh has never been satisfactory. The majority of dwelling units are temporary, sub-standard, unsafe and overcrowded. The ancillary physical, social and economic facilities and services essential for the development of healthy and harmonious community life are highly inadequate both in the urban and rural areas.
Past patterns of community housing development in the urban areas were largely concentrated on providing housing plots and community facilities to upper income-groups and houses for the public servants. The exception was a special program of low cost housing for displaced persons. In the private sector profit been the main motivation factor. It was always been more profitable to build houses for upper income groups. As a result we have a large backlog of low- income and middle- income group housing. The current need is, therefore, to restore the balance in urban housing development by meeting the needs of the low- income groups and thereby bring about substantial improvement in the living conditions of the urban poor. This implies a major emphasis on public intervention for housing solution of this group.
Traditionally rural housing has been taken care of by the villagers themselves and the public sector did not play any significant role apart from providing some services and facilities. Since the enormity of the rural housing problems cannot be tackled in any appreciable degree through the public sector due to resource constraints, we can only make a beginning in the improvement of living conditions in the villages through private sector.
Urban Housing Perspective
The urban housing sector in Bangladesh is facing acute shortage and poor state of services. Fast population growth, shortage of land supply, lack of planning, together with social and environmental problems in the urban sector make it more unreliable for the urban low to middle income groups. As a result, only a small proportion of better-off people can afford and enjoy fairly comfortable to luxury housing, while the vast majority of the lower income group and the poor are faced with the problem of living in substandard housing .
The 1991 census records the urban population to be about 22 million spread over 522 urban centres of Bangladesh. The urban population represents more than 20% of total population of the country. It is to be mentioned here that through the decentralization measures in the 1980s the government tried to reduce the pressure on major cities by providing growth incentive among 460 Thana (Upazilla) urban centres. But urban population growth continues and mainly occurs in some large metropolitan cities such as Dhaka, Chittagong, Khulna and Rajshahi. These four metropolitan areas account for about half (50%) of all urban population.
The pattern of new urban population growth is focused on Dhaka and to a lesser extent on Chittagong in absolute terms. The increasing demand for land, housing and other urban services in consequences of urban population growth in all urban areas especially in Dhaka and Chittagong have added a new dimension to urban housing. The situation has become worse with the majority of middle-income groups and lower middle-income group. The small elite class controls the ownership of more than 80% of the urban land while the majority (80%) poor have access to less than 20% of the urban land.The housing condition has deteriorated further as all urban services, such as sanitation and urban refuge collection, water supply, health and education facilities have failed to cope with the increasing demand. The main reason for these bad conditions can be explained by the fact that there is no comprehensive policy either for housing or for all other urban service as a whole. There is no explicit policy, plan to guide or direct either housing or urban services. Therefore, in order to overcome the present crisis and to have a better urban life, a comprehensive housing policy should be implemented.
The higher and middle-income groups are housed in either low-rise single-family houses, or, increasingly, in multi-family apartment buildings. The lower income households, approximately 70 percent of the urban households, are housed in a variety of house-types that can be described as follows:
a. Approximately half of the low-income housing units are in slams, informal settlements areas that include both private rental and private ownership housing, built either on privately owned land or on illegally occupied public land.
b. Conventional tenement slums (rental and owner occupied) take up another quarter of the low-income sector. These multi-unit buildings were originally built to compliance with the code, but are presently seriously overcrowded and ill maintained. Overcrowding in these buildings has increased over the last years due to an influx of rural migrants to work in the expanding garment industry.
c. Other categories of low-income housing include: government provided squatter resettlement camps, plots of land with basic services that are provided on a leasehold basis; employee housing consisting mostly of small apartments in high-rise complexes provided by the government; squatters who have built makeshift houses on illegally occupied public or private land; and pavement dwellers.
Another important factor behind the force of Real Estate development is the large differences among income groups. The census 2001 reflects the situation as:
Class Population (%) Land Held (%)
Low income Group 14 20
Middle Income Group 24 65
High Income group 2 15
Hence, increasing number of population in limited land with limited income plays an important role towards the intense growth of Real Estate Business in Bangladesh. Apart form the government sector, public sector is now playing a vital role in the urban development process. Increased vertical growth instead of horizontal growth for Bangladesh is not only impossible but also impractical with such a high burden of population. On the contrary, it saves considerable amount of land, the distribution of electricity, water, gas and other utility supplies are relatively easier and cheaper.
Company Profile
MAKS PROPERTY DEVELOPMENT LTD.
Inception:
Back in 1998 Maks Property Development Ltd. emerged as the very fast real estate developer of the country. Mr. Rezaul Hossain a prominent architect of the time first realized the potential of the sector in Bangladesh. Completing his study in England he came back to the country and funds the capital a hazy junk of buildings established without proper planning. Dweller dream of a sweet home of itself were dying up facing an increasing sour city land. So, even those who had enough money to avail were also losing their hopes.
Although it was a land developer initially MPD is now deriving all the wings of residential, social and commercial structures. Their main concern is the overall development is infrastructural sceneries of the country. As a pioneer entity MPD always put some extra effort in innovative approach with their vast projects.
Ethical standard has always been a premier focus of MPD. Previously it was a common phenomenon to be the victim of land or property base fraudacy. MPD’s Endeavour is to change the view. They have always tried to hold uncompromising ethical method in their way of making dreams to come true.
Motto: Desh O Manusher Kollane” (For Country and People).
PERFORMANCE:
MPD has passed a pretty long period of execution of 08 years and still carrying on as a glorious market leader. They first came to the market as a land developer, because the concept of apartments was still an alien concept in the country and investing here would obviously a suicidal decision. Currently it’s working with all the gamut of housing and commercial blocks, engaging itself in the development of apartment blocks, recreational facilities, hospitals, park, commercial and shopping complexes. MPD has always been exclusive with its large scale projects. In the following parts we will put our focus on those projects.
Eastern Housing Limited
Inception:
The unique public limited real estate of the country Eastern Housing Limited was established by late Al-hajj Jahurul Islam (1928-1995) in 1944. He brought the trend of apartment in the country when the idea was completely new in the country. Being a public limited it was comparatively affluent with funds and these factors strengthen the company for establishing high-rises all across the country. The eastern Housing from its starting had a well skilled and well organized team of project architects, skilled engineers, management experts and other competent professionals engaged in supportive functions.
The prime mission of the company is creating a distinct place in the 1st grade builders of the country. Commercial structures also get a major focus of them. Scarcity of accommodation – one of the most talking issues gets a very sensitive attention in the company’s vision. Housing projects need a he financing and hence the company concentrates on establishing commercial centers access to the well established places. By all these conducts the company aims to pave its way towards growth as well as accelerating the growth of the economy.
Motto: Apon Thikanai Gorey Dai (Builds Your Own Destination)
Performance:
The company started its operation with simple trade of lands back in 1964. But in actual sense if is performing as a real estate for the last 12 years. Their prime exception is sky scrappers. Most of the apartment buildings made by the eastern housing are more than 15 storied. By the one era it has passed away, it has built so many multipurpose complexes which have been sold as both commercial centers and apartments. The main fact they nourishing from the very beginning is broad image and as a very old real estate they have had the privilege of creating customer relationship and making up so many corporate and trade making clients.
AMIN MOHAMMAD GROUP
Inception:
With the promise of constructing building with quality- Amin Mohammad foundation began its voyage on the 80’s. They emerged with the duality building approach as a trade mark. To accomplish and return the standard they had expert engineer and designers for innovative and artistic use of land and space. They concentrated on duality material and total management. Amin Mohammad has an exception at it’s emerge. It started its operation as an apartment builder. Then at the beginning of the current millennium they focus on acquiring land in Ashulia and Demra. Now Amin Mohammad group has became one of the fastest emerging developer of the time.
Being one of the leading developers Amin Mohammad has always aimed at obtaining top place of the market through its quality in the product and service. Basically Amin Mohammad focus on expending their business theory diversified product and designs. Amin Mohammad has always tried to grab a long term and long scaled possession of the market. They placed a keen observation to the way the city is going to be expanded and taken so many land developing projects as response. So, sustainable infrastructural housing development is the operational mission of the Estate to reach ultimate goal.
Motto: Gorey Dai Vabhnahin notun thikana (determined to bring you luxury)
Performance:
Using latest technology, maintaining international standard for materials and quality control in every phases of construction have made them a distinctive builder of eye charming structures. It has acquired faith of thousand of clients with- conduct, faith, national recognition. When competition moved their concentration on commercial complexes they remained determined in coping with the accommodation problem of city dwellers. They have always exhibited their social and environmental commitment through programs like “Social Foresting-2005”. Besides Amin Mohammad group is working hand to hand with govt. providing small budget plots and lots to lower earners, although prices of most their construction are quite a bit expensive as they never compromise their quality- they claims it as their brand image.
APARTMENT DESIGN & DEVELOPMENT LIMITED
Inception:
With the passage of time, taste of human being has been changing as the necessity changes while the basic usage to have a home remains the same. To share with people in the endeavor a real estate developer with commitment, capability and vision emerged. Motivated by the idea of peoples dream, to have a sweet and charming home, with exclusive design and interior Md. Nazrul Hasan Chowdhury an aggressive entrepreneur real estate sector started the company Apartment Design and Development Limited (ADDL) in December 1998.\
Duality, commitment, profession, transparency and the pasta, ADDL believe and follow. Congregated by a devoted team of professionals with strong financial support it has been working with full confidence to provide itself as a new trend setter in real estate industry. It has a trend of an all-out effort for indigenously exclusive designs. The company believes- home is not a matter of bricks, stones, sands and so many but this is a long cherished dream, a future, a security. ADDL is committed to build apartment of that kind affordable for all scale of customers at the prime and most sought- after location of Dhaka city
Motto: Building your way.
Performance:
Besides, despite being a comparatively smaller company the company has established a high standard of responsibility by opening unlimited scope for engineers, especially for civil engineers and architect and widening the flow. While making construction the company always tries to construct apartments giving much care to the environment. They use to take the appropriate security measures in the site and maintain it timely so that everything goes right.
STRATEGIC PLANNING
Strategic planning, a very frequently pronounced term is all about- the utilization of changing marketing opportunities gives its organizational goal and available resources. It performs as a basement for a detailed and specific plans formed at broken down levels of management. Being blunt, strategic planning plays the roll of diplomatic policies in the war among competitors. The scope or arena for strategic planning is beyond scopes. It ranges from defining a market oriented mission to the settlement of marketing control.
For the sake of being precise we’ll set our comparative view from the concept of marketing process. A subststantially well established core of strategic planning.
MARKETING STRATEGIES FOR COMPETITIVE ADVANTAGE
In the real estate industry there are currently more than 250 firms including both commercial and residential developers. Thus it is quite though for one firm to sustain the top position. Competition among apartment business is not so fierce since apartments in suitable locations never go unsold. Here competition is stronger in acquiring desired land than customers. However, all the companies we are working with deal with apartments and the total size of the market for apartments is around 6000-7000 units per year. These numbers of apartments are produced by the industry every year. The demand on the other hand for apartments and plots is approximately 2500units per year. This may seem contradictory to our information about apartment builder’s competition. But the fact is that, the major competition in apartment business rises for localization.
So we can see that marketers need to identify the value and customer satisfaction delivered by its products, prices, channels and promotion with those of close competitors. To that estimation they assess the industry position. In this segment of our report we will locate the appropriate aggressiveness of strategies.
MAKS PROPERTY DEVELOPMENT LTD.
As a leading and dominating figure of the industry they obviously adopt to the market leader strategies. They have asked to be innovative and effective to sustain its market sectors.
EASTERN HOUSING LTD.
Market challengers are runner up companies that aggressively attack competitors to get more market shares. But the aggressiveness of eastern is not up to that level and satisfying the criteria’s. Despite all this fact, they can be termed as the market challenger for the goodwill and brand image they created in earlier days.
AMIN MOHAMMAD HOUSING LTD.
Amin Mohammad housing Ltd. is currently seeking stable market shares and profits by following competitors product offers, peeves and marketing programme. Amin Md. Has executed all these efficiently and this has made them a successful Markey followers.
ADDL
As a farm it lacks established position in the industry is the deliberately a market nicher and they also have place them in that position as a trend setter and can be helped to be successful.
Marketing Process
Marketing process consists of four distinct ways that circulates one after another. Through these activities the company watches & adapts to the actors & forces in the marketing environment. We will look briefly at each of the elements & analyze firms’ standings taking each of the steps as a basis of evaluation. At a glance the means are-
1. Analyzing the marketing opportunities
2. Selecting target markets
3. Developing marketing mix
4. Managing marketing effort
Analyzing the marketing opportunities
Whenever we think of a market some delegated variables appears subconsciously. At least a change in prices or demand or supply is inevitable. We can observe these changes from a company’s micro or macro environment. Let us take demographic changes for example. A change in consumers’ demographic structure may will lead to a huge fluctuation. So, changes in market bring some marketing privilege & hindrance as well and successful marketer needs to keep all the changes in keen observation.
From developers point of view, economic and cultural changes should get utmost priority while competitors, publics (i.e., social & governmental bodies) demographic (especially geographic shifts), natural & political environment should also get an intensive observation. Let’s take a look at our competitors.
Responsiveness towards economic changes
Maks property developments Ltd
By the end of 1999’s when the company emerged worlds or local economy was in a steady state. Inflation didn’t appear with such a rapid velocity. Moreover, the concept of real was not as much popular. People used to avail or trade land or property on individual level. People used to refer to the concept as arrangements for middle and upper middle class. This trend lasted for almost 8 years. Then we entered into a new millennium and a huge socioeconomic change took place domestically and globally. A group of people got affluent grabbing a lot of purchasing power and the idea of comfort and luxury extended. MPD’s response to the change was pretty minor to the velocity. Still now, the MPD’s prime concentration is land development. The positive sight of the fact is that the company is grabbing the upper middle class group who had always seeked for a piece of land and those who haven’t changed their motive towards apartments.
Eastern Housing ltd
They are engaged in this kind of business since 1964. So, the entrepreneurs of this business had available scope to observe the trend of the economy. They passed a turbulent perish or dispersion whatever we say from after the liberation war.
Then it had a steady growth in 80’s and 90’s. Then they had to merge towards apartment business. At the beginning of the new millennium world economy flourished and had its impact on the country. Due to a fall interest rate and uncontrolled inflation people tend to take commercial trade based initiatives & Eastern took the chance of establishing so many trade centers like Eastern Plaza, Eastern Mollika Eastern Plus etc. At the same time the company tried to restrain its land development client and took new initiative like- AftabNagar.
Amin Mohammad Foundation
Amin Mohammed probably showed the most vital response to the change of the millennium, by taking two gigantic projects at the very beginning of the century. Moreover, they notified the change in spending patterns of the consumers. They motivated people for better living & accommodation. The foundation is also exclusive with its concentration towards foreign currency earners & attracted so many foreign investors. For the pursuit they regularly organized international fair.
ADDL
A craze towards apartments took place in the eve of the last century & the birth of addl was a result of the trend. Above that, addl created a luxurious image with its exclusive designs. All that was done for the upper class who that time was well prepared to pay the expensive apartments. But they completely ignored the middle & upper middle class. So there was a lacking in diversification for income groups that stretch ended its business scope.
Responsiveness towards cultural changes
Our country’s cultural environment is made up of institutions & other forces that affect our society’s basic values, perception, preferences & behavior. By the last two decades four major changes has occurred in our cultural perspective:
• Joint families are being broken down to single or nuclear families.
• People are getting more and more positive towards the concept of apartments.
• Living in luxurious apartment has become a symbol of status.
• People are looking for reliability.
MPD
At first the company tend to sell lands that ranged from 5-10 katha. But now it is also selling 2-3 kathas also keeping singular families in mind. But it hasn’t changed its concentration towards apartment & their apartment size is still pretty large for single family. So they are losing customers. It also failed to cope with peoples’ attentiveness towards luxury. But as a long run business the company is still reliable to thousands of its clients.
Eastern Housing Ltd.
This company experienced the cultural changes being the oldest real estate company of the country. They arte successful to deal with the changes in attitude towards apartment culture but failed to cope with luxury. Especially peoples’ increased concentration on designs didn’t attract their concentration. Consequently, they remained same with their monotonous designs & wlarings. Their responsiveness towards luxurious & glamorous design orientation was not up to satisfactory level.
Amin Mohammad Foundation
This organization basically focused on quality management. So, it acquired peoples’ reliance rapidly. It realized the potential opened by the trend of nuclear families & took the opportunities. Its diversified apartment projects resemble its attentiveness toward changing needs of customers. Although not very much concerned with designs, they still hold a glorious heritage of lucrative designs. Beyond all those attributes the company has created a brand image with utmost faith & feudality.
ADDL
Being a single focused company the apartment designers have always been well matched with the peoples’ thirst for sensational designs. The company has always-infinite choice of its clients. The company is really exclusive for designs & uses the talent & innovation of young architects. As a newcomer the company is yet to take up its reliable image and it’s struggling to reach that goal.
Responsiveness towards Competitors
The marketing concept states that to be successful a company must provide greater customer value and satisfaction then its most of its competitors do. Marketers most gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the mind of the consumers.
In the real state industry there are currently 250 firms including both commercial & residential developers. So it’s easy to imagine how fierce the competition between the market leaders to retain customers. Now see our companies standing towards its competitors.
MPD
They are the market leader with their gigantic projects and total turnover. The company have settled and fixed clients and even a vast amount of corporate clients. So now they tend to retain their position and face the challenge from emerging companies. But the company now is suffering from some lacking in innovation & aggressive market capturing projects.
Eastern Housing Ltd.
They are the pioneer developer of the country, but have lost their position to EWPD. As both of the companies work in unique sites and sectors but eastern has some exclusiveness with diversified portfolios and in the side of commercial complex they are still the leader.
Amin Mohammad Foundation
Probably it is the fastest growing developer and hence creating the biggest challenge towards its leaders of the market. As the firm is basically land developer, it needs to compete with the preceding firms sharply and needs to take innovative approach to sustain its growth.
ADDL
This firm is distinctive one doing business in its own way rarely compete with leaders. Rather it focuses to create an image of creative designers and compete with fresh entrepreneurs. Thus the firm applies innovation as the most effective tool.
Responsiveness towards Publics
In indigenous sense- public here means local NGO’s and governments’ for real state sector. Both of the parties are strong with their impact and developers’ success relies upon the way they deal with the parties.
MPD
The firm has strong lineage with government body. It deals frequently with govt. and govt. itself has keen interest on the group as a substantially big taxpayer.
But the company’s performance with NGO’s is not up to the standard. Recently the firm faced a case from BELA (Bangladesh Environment Lawyers Association).
Media also a strong public body and here MPD failed with a great scandal of illegal land acquisition. So, overall public management of the company is disappointing and this may be a red alert of decay to MPD.
Eastern Housing Ltd.
The company has a excellent collaboration with govt. but faced a great stuck when the govt. imposed an embargo on earth filling low lands and that haunted their business. That was the result of a lacking in mutual understanding. Beside that the company is maintaining warm relationship with NGO’s, media and commercial pioneers.
Amin Mohmmad Foundation
They are exclusively renowned for their cooperation with govt. and NGO. For instance, last year the company cut down a large number of trees beside Dhaka- Aricha highway and promised to govt. that they will plant to seeding for one tree cut down. They kept their promise. BELA recently clarified their conduct at Ashulia Model Town. So, they can be termed as the most successful performer in this phase.
ADDL
As a new developing body the company yet to build up its relationship with public bodies. But being a small-scale farm it hardly faces any kind of hassle in dealing with public. But if the firm wants to capture market it obviously has to build up lineage as well as possible.
Responsiveness towards geographic shifts
This is probably the most significant criteria of demographic changes in terms of real estate business as localization is one of the core concept of real estate.
MPD
There is apprehension that the capital city Dhaka could become an abandoned city by the year 2025 due to abnormal growth in population. To shift the pressure from main point of the city- MPD first concentrated on expending the city towards south and north but they have little contribution on the accommodation within the city.
Eastern Housing Ltd.
Eastern covered the area where MPD supposed to concentrate but they didn’t. Actually they focus on accommodating many families in a block. So, they created so many sky scrappers all around the city to accommodate people migrated from rest of the regions.
Amin Mohammad Foundation
This foundation followed the same strategy MPD to extend the city. In addition, the foundation accommodated so many commercial complexes in its land development projects, especially “Green Model Town” adjacent to Motijheel commercial area. The town is emerging as potential trade center.
ADDL
As its stance towards demographic shift the company kept itself unique with a single focus – apartment. It is notable that they haven’t made any arrangement for demographic shift for those who have been migrated. Rather their customers are aristocratic people who had always residing in Dhaka. So they are keeping themselves ignorant of the opportunity.
So far we have studied the way our firm and issued their path. Each path consists the market segmentation they will serve; the quality they have to nourish and the analytical approach each will follow to sustain their position.
Selecting Target Market
This is a center of a cross road where firms need to go for success, which will be the market segment they will serve. A market segment consists of consumers who respond ion similar way to a given set if marketing effort. There are some bases of segmentation and farms credit is in finding up the most effective way of segmentation. For real estate in Bangladesh income based segmentation is the mostly practiced where as – area or geographic based, type-e of family based segmentation are also meaningful. How ever most the companies proceed with following steps-
• Market segmentation
• Target marketing
• Market positioning
Now, let’s look what our farms are taking as their approach to target their market-
MPD
At first when MPD started its operation it was the beginning part of the crowed heading towards Dhaka that they faced and in real sense real estate business begun with them most of whom were from middle and upper middle class. MPD targeted that market and began to capture that unique market segment. The upper class at that perspective was out of their focus. However the middle and upper middle class became their center of all activities. They sized plot from 2-5 katha, arranged for installment facilities and debit loans. Then after 1999 the total scenario changed. The upper class captured their attention. But has also been a division. They targeted those aristocrats entirely motivated by apartment culture. They launched the “Apartment Project” for which they followed European style and interior design. The range of the size varied from (944-2560) sq. feet all the apartments were south faced. Here the point to notice is that they left option for the upper middle class with apartments of (944-1500) sq.feet. For those who cannot afford a single payment they arrange for long-term installment facility plus DBH and National Housing Loan. MPD is also successful in presenting itself to the corporate and overseas customers as well.
Eastern
The period of 60’s and 70’s when Eastern launched its operation they mainly focused on the upper middle and upper class and they used to trade integrated pieces of land rather than projects. But in 80’s the stock tradable properties came down ferociously in face of migration and focused on the expansion of the city. Later they launched “Pallabi Project” which was the fastest ever land development project of the country. Like MPD did their main focus was on the upper middle class specially professionals who could afford the price. Then exclusively at the beginning of this century put their effort to grab another segment the entrepreneurs who were looking for suitable place to launch their business. But before that they expanded their business with apartment to compete with MPD and grab their retained customers. They made a huge diversification in localization of apartment and could mange to sell at a lower price in areas like Basabo, Gulistan, Mirpur where they managed to sell at almost tk. 300 per sq.ft. So we can see they always tried to retain all segment of the market. But how much they succeed. That’s a later story.
Amin Mohammad Foundation
Amin Mohammad was most efficient with their assessment the width of middle class segment and they premierly concentrated on them. But that’s tale of 2001. Before this time they constructed so many apartment buildings at Dhanmondi, Gulshan, Banani, Baridhara, Uttara, Mohamaadpur and such places and the upper middle class as the target as they never focused on making luxurious apartment. However, their large-scale project of “Ashulia Model Town” and “Green Model Town” also focused on the upper middle class at the same time they left option for the upper class with larger plots and more suitable sites. So, it’s clear that they mainly focus on the upper middle class segment but does not lose the upper class entirely. Moreover they are really exclusive with managing corporate clients. Recently they have signed contract G.P, Aktel, Banglalink, Citycell, ATN Bangla forfor whom they have package and price flexibility.
ADDL
As we all know they basically construct luxurious apartments in posh places of Dhaka, for elegance of design & decoration of interior those apartments are quite a bit expensive. For instance, at Dhamondi they set apartments ranging (1500- 2000) sq.ft. at price if tk. 4200 per sq.ft. This illustrates that their main subject of interest towards the upper class of the society. One thing we should make clear that, by upper class we mean the middle upper class not the top upper class who hardly been interested towards apartment culture. However, addl is concentrating exclusively on one single market segment, the upper class.
This part has revealed the class of customers the firms have chosen to serve. Now, we’ll look at the set of strategies or tools they have choose to sustain in the market and to acquire growth.
Developing marketing mix
Product Focus
In real estate business all the companies offer almost the same product –
a) Land
b) Apartment.
Some companies sell only one and some companies sell the both. In all the cases, service is the same; Accommodation. The variety of the product does not offer any distinction among the companies.
The distinction arises here from the following characteristics of land and apartment-
a) Variety
b) Quality
c) Design
d) Features
e) Brand name.
Maks properties, Amin Mohammed Foundation and Eastern Housing Ltd. are offering the same product of same variety; Both land and apartment. ADDL, comparatively a newcomer in this business is offering only apartment. ADDL is a developer as well as an interior designer.
It is really hard to draw lines of distinction among this four real estate companies according to the quality their product bears. Because all of the four companies are willing to offer the highest possible quality. Customers or buyers have not accepted this offering equally. The goodwill factor casts a great impact hare.
In case of design, newcomers in real estate business are really doing well. Thy have taken interior and exterior designing as a way of impressing the customers. By making an impression on the mind of the customers, they are trying to reach the market and moving products gradually. Among the four companies, ADDL is a market-preacher. Their interior and exterior designs are comparatively new and eye catching. Almost all the apartments of Eastern Housing Ltd. have some exterior look which has become quite monotonous and backdated. They are trying to bring about some changes in this factor. The apartments of Maks properties have well-designed exterior as well as interior look. Amin Mohammed Foundation is also trying to give fair amount at importance in design of their apartments.
The bigger companies of the four mentioned above, have offered diversified features. That is why the products of Maks properties, Eastern Housing and Amin Mohammed Foundation have more features than the products of ADDL. These features found within an apartment complex can be –
a) Shopping centers
b) Community centers
c) Mosques
d) Sports zones
e) Dry cleaners etc.
In case of buying lands, the main distinction drawn by customers is as to quality which is actually goodwill of the companies. The features mentioned above can also be important in this aspect.
MAKS PROPERTY DEVELOPMENT LTD.
The MPD has so far executed 2 large projects. One of them are land development based and the other is apartment based project. It’s projects are:
•Patriot Project
•Northern Apartment Project
Let’s take a bird’s eye view of these projects:
PATRIOT ROJECT
Location: Uttara.
Attributes:
Exclusively biggest housing project
Fairly natural environment
Uniquely this project has handed over more than 1000 plots
Rajuk approved
No disputed lands
All kinds of civil services like as (25 feet to 100 feet) roads, school, colleges, mosques, amusement parks, police station, shopping complexes within the project area
Observation tower along the boundary line
Well established private universities are going to open Campus within the project area.
Schools like Viqarunnisa nun, sunny dale English medium school etc is also opening branch.
Apollo hospital is also going to be established.
Diversified plot size- 3, 4, 5, 2.5, 10katha.
Present condition:
All the plots there have already been handed over to the customer except some specific blocks (block- I, j, k, l, m, p.)
NORTHERN APARTMENT PROJECT
LOCATION:
The apartment is located in different blocks besides Baridhara diplomatic zone.
Attributes:
Exclusive architectural design
All the apartments are south faced
Covered by green surroundings
5 balconies in most of the apartments
Arrangements for long term installments
Apartment hands over within 3 years
Arrangements for DBH and National Housing Loan
Diversified size- ranging from 944 to 2560 square feet
PROJECT CONDITION:
The project is supposed to be finished by the October of 2015.
Eastern Housing Limited
Eastern housing limited has currently been executing:
Upcoming Project:
Some projects, which works will be started by the end of this year are:
Area Present condition
Eastern Lake Circus
Eastern Kmalapur Complex
Eastern Niketon view
Eastern Uttara view
Eastern Ecovillage
Eastern Panthochaya
These 3 are going to be residential
These 3 will be commercial project.
Country projects:
The country projects had not been profitable as expected because of inadequate buyer responses. The construction of a modern air conditioned shopping complex under the name of- Eastern plaza at Ambarkhana in Sylhet on a plot of 2.54 bigha land consisting of 28 office space and 43 flats. Handing over of possession of flats and office spaces already been started. A land development project on 22.90bigha of land under the name eastern Uttara in the district of Rangpur is completed and possession of most of the plots has already been handed over and will come under sale by the end of running year.
AMIN MOHAMMAD GROUP
Projects:
Posh areas of the city like- Dhanmondi, Gulshan, Banani, Baridhara, Niketon, Uttara, Moghbazar, Ishkaton, Mohammadpur, Rampura, Shantinagar, Shidhheshawri, and Mirpur had always been on the top of preference for building apartment. About 50 apartments’s projects have already been executed and handed over.
Currently the organization is operating with 35 sky scrappers and 25 projects are in process. New project are being added frequently to meet their aim of providing accommodation within the city. Keeping those projects aside Amin Mohammad has recently come to the lime light with 2 of its exclusive land development project:
•Ashulia Model Town
•Green Model Town
Ashulia Model Town
Inauguration:
The project which is uniquely the biggest project ever started to be made on November 27, 2000.
Attributes:
Location privilege: pretty close to Uttara town, the project has excellent communicational advantage. Moreover it is located in a crowd free zone. The project is at a walking distance from tourism point, fantasy kingdom and many other entertaining locations.
Size plots: designed by established planners of the country the project holds layout with-2, 2.5, 3, 4, 5, and 10 katha plots.
Services:
Have internal availability of all the civil amenities like school, colleges, medical, marine academy, shopping complex, security forces, and graveyard.
Structural advantages:
7-12 internal avenue street ranges from 50-160 feet in width and minimum 20to maximum 40th wide internal roads.
GREEN MODEL TOWN
Introduction:
Motivated by the success of earlier project the firm stated the allocations of the project on 24th may of 2001 and heading towards its completion on a rapid move.
Location privilege:
The site is 5 minutes drive way from Motijheel the commercial centre of the city. This is the only planned residential project in that area where the price of land was too high to afford for the mass.
Size of plots:
2, 2.5, 4, 5, 10 Katha and above in the available size of plots in the project.
Services:
It is going to be a model town having commercial centers and civic facilities. Exclusively the project will allocate a private TV centre.
Structural advantage: 7 internal avenue streets from 40-100 feet along with (25-30) feet internal street will be there.
APARTMENT DESIGN & DEVELOPMENT LIMITED
The company is exclusively apartment builder having no wing for land divisions and commercial project. Consequently the company put all their efforts to build artistic accommodation and that has give birth to many exclusive creations. Hereafter were going to take brief glance to their ongoing projects:
Add. Titan Symphony 32\1-A,Shahjahan road, Mohammadpur
Add. Splendor 2\1, block-f Lalmatia
Add. Grandeur 3\A, Dhanmondi
Add. Central Assence 73\c, central road
Add. Xenia 13\c, Banani
Add. Heritage 65, Zigatola
On near future the company has a plan to take some trendsetting more projects. Like a focus on them are:
1) Add Xenia at Kalabagan.
2) Add Taj accolade at Dhanmondi
3) Add Central Chameli at Wari
4) Add Mycenae at Dhanmondi
5) Add Jobeda’s Dream at Mohammadpur
This was all about the overall preview of real estate firms we have worked with. In this segment we have tried to illustrate the overall standing of the firms. One can measure the velocity of their execution, their attitude towards consumers. Now, its time to go for compares from the stance of strategic marketing approach.
Market Promotion
The main aim of a promotion is to obtain retain customers which involves informing, influencing and persuading customers. There was a time in business where there was no need for any advertising of any sort. But in today’s world no business can exist, much less prosper. Without advertising of some way to reach customers before and more effectively than competitors do. RES industries consequently have a strong advertising program.
The marketing activities that they have already taken are-
Print Media
Electronic Media
Site Billboards
References
Direct mail
Fair
Personal selling
Billboards
Print Media:
In a print media, newspaper and magazines and also some foreign magazines the number one advertising medium in RES with expenditures topping those for all other media by a wide margin. RES included companies do most other promotion by placing advertisements in print media, mostly on local daily newspapers such as Daily Star,Protham Alo,Juganter Janakantha etc.
Electronic Media:
Television channels are one of the parts of our Present life. Man pass his laser time through watching televisions Channels. RES show their advertisement on different companies different theme. And the advertisement are exclusive ones.
Site Billboards:
Companies of RES also build a Informational site billboard on their ongoing project. It is another kind of an advertising.
References:
References ar strong media in this sector. It is a process that happen one Person’s reference to their family and friends.
Direct mail:
This involves sending information about a specific Project / apartment complex to pre determined mailing list. Mail merge is also a kind of advertising. Asset and bddl also a contribution by mail-merge.
Fair:
REHAB, the housing association of Bangladesh, sometimes arrange seminars and also fairs. These opportunities to only for promotional purposes. DBH and their personal fair is also included. Sometimes RES companies arrange fair in Dubai fair UK fair U.S.A. fair. The Purposes is only to build awareness about ASSET in their target clients. They do not actually make any sales during these events.
Personal Selling:
Some uses this method to some extent, but not extensively. Asset sales people sometimes have fact to face conversation with the prospective clients about their projects.
Billboards:
RES companies advertise their product on billboards, which used for promotion. Billboard attracts every pedestrian. This way they advertise on billboards and it is one great feature for their sales increase.
Sales increase impact on Advertisement
When a company reaching the target segment as well as the degree of coverage is the main concern, daily newspaper is the best option. About 100% of these target customers read the newspaper everyday. Someone thinking of buying a flat will keep his/her eyes open for advertisement of apartments when reading the paper every morning. About prominent Real estate companies place individual Ads every week method of promotion is arguably the most effective one.
Another, outdoor promotional activities reach most groups of people and have high coverage. These Ads are colorful and eye catching. Anyone walking in the roads will notice the huge advertisements. But this method is not effective since only short messages can be communicated this way, and people generally do not remember the numerous billboards seen everyday. Finally, there is no guarantee of reaching the target segment this way. Suppose someone busy making money might not have the time to watch billboards. But individual site billboard are placed on their under constructed projects. It has a great impact on increasing sales.
Electronic media basically, TV channels are one of the important parts of our present life. RE companies provide different lucrative and emotional Ads on electronic media. That’s impact also positive. People are also enthusiastic on telecommunication media. They call RE companies directly in paper. So, the most impacts for sales increasing are electronic media and newspaper.
Approximately, about 60% sales increases are occurred by advertisement. In Bangladesh the concept of direct mail is very widespread. So, when people receive nice colorful mail cards, they are interested. Direct mail dose not produce any immediate responses. Nobody buys a flat after receiving such a card, but direct mail has a lot of potentiality.
Exhibitions and trade fairs are also a good promotional technique. Everyone who is interested in buying an apartment go there. Exhibitions and trade fairs reach the real target but these are one of events that might not leave enough of an impact.
Scale projects: Let’s have a bird’s eye view on them:
MPD
Real estate business is more or less service oriented to all its fields. MPD was excellent with its products & services from the very beginning but they are becoming more & more constrained with their product. People are having fewer choices. Yes, they always had been efficient with their pricing. But as they tend to provide quality service they arrange for civil services superbly and thus the actual out of pocket cost of customer rises up. MPD is well furnished with their location so they never had to bother with customer convenience. The operating services like sight seeing, registration etc. are also of high quality. As a market leader MPD regularly arrange fir property fair and acquire feedback with information about their clients wants. They have extra promotional activities foreigners. A serves found that 60% of their clients are over eased.
Eastern Hosing Ltd.
The very first company that came forward with a solution to the problem of accommodation for middle and upper middle class was Eastern and the project was Pallabi Housing project. More over they emphasized to the quality solution. To illustrate, they assign one common project manager for three projects. So quick feedback to any kind of problems that their clients face. They make arrangements for playground; swimming pull and localized the project adjacent to the air ported a much appreciated point to communicate this is very equally true for other projects. They provide communicational privilege to all of its clients. But a big but is there, they have lacking with buildings designs and interior. When all the competitors followed a huge surge of innovative designs from young talents they kept indifferent. It is true that they have always been cost effective; currently they are running by 290000 per katha which is more or less 7% less than their competitors. Moreover the company has recently extended its payment period in 60 monthly installment spilling over 5 years. It is applicable in its Aftab Nagar project with extended payment scheme varying from 36, 48, 60, and 72 installments according to location and merit of each individual case. This measure is inspiring the clients. Like EWPD do they often participate in local and international fair, often take faced back from customer or potential clients or phone-implement the feed back. Advertise of Aftab Nagar project is on air, so they are well accelerated with communicational facts.
Amin Mohammad Group
The company has liaison with DBHL and HBFC for long term loan and this package attracted so many middle and upper class clients its land development projects. But the price level of it’s products are pretty high for examples in Ashulia Model Town, it’s price level is more or less 10% higher than their competitors.
But in the customer solution phase they have been proved excellent, and for recent period they have already defeated its competitors. Basically they have created choices for its clients. Quality management is a trend as per their claim. While making the report we met the chairman of the foundation and he fluently focused on quality over quantity orientation. He said – “we have acquired faith and reliance, we always try to sure hand over on time, take regular feedback and remain clear with our acquisition.”
The prime mean of communication for them is phones from clients. They quote their asking and this also done if fairs. Moreover the company often sponsors the fairs. Advertisements of the foundation is notably market based where the hit the feeling of deprivation in the customers. The company stands sincere to the clients with their communicational services like sight seeing and the preparation of documents .
ADDL
This company has proved a very precious fact that good new ideas come from watching and listening to customers. Before entering the market the company analyzed customer questions and complaints to generate new concept that better met the customers with solutions. Company engineers and enlisted architects also worked with customer feedback. The company created cross functional idea management committee consisting of people from R&D engineers, architects, designers and marketing persons. In effect, it emerged as a path finder for elegant and luxurious apartments. They also showed a very strong sense of portfolios management to reach customers off all the regions despite their market niches strategies. As they have too small a target market, thus never had to bother for communication and this backed them to a lacking. In fact ADDL yet to launch a T.V advertise on air.
Managing the Marketing Effort
The time when a company has already finished analyzing and pointing up its target a company will obviously want to design and put into action the marketing mix that will best achieve its objective in its target markets. For the accomplishment the company should make an arrangement for an all out marketing effort with which the company will analyze, plan, implement, and control the marketing mix it has developed. The figure illustrated here by shows the relationship between the four marketing functions
MARKETING ANALYSIS
Analysis company’s situation to find attractive opportunities and coping with environmental threats. It also matches the company’s strengths and weakness with its current and possible marketing action to determine which opportunities it can best pursue.
Towards Marketing Analysis:
MPD It pointed to the people’s strong desire for a piece of land as opportunity and communication facts as a major challenge. It’s confident enough with its persuasion of a place mile ahead from there. I
EASTERN They have utilized the faith and trust they acquired as a pioneer but failed to anticipate legal and political obligations. Now it looks for sustain the position.
AMIN They found a very strong foundation in the market as the biggest opportunity and also utilized the ask of trust and found customer retention as the biggest challenge.
ADDL Stepping into the market they discovered a blank slot if specialist in the field of enactive designs and peoples looking for apartments free of any hazy looks. They are confident to fill it up and acquiring reliability and growth is its primer challenge.
MARKETING PLANNING
This is the marketing logic where by the company hopes to achieve its marketing objectives. In this section the planner explains how much strategies responds to the threats opportunities and critical issues spelled out earlier in the plan lay out an action program for implementing the marketing strategy along with the details of a supporting marketing budget. The last section outlines the control that will be used to monitor progress and take corrective actions. Being simple, this is the detail of estimation of companies strategically rank for which have already discussed the standing of the four developers. So we’re not going forward with this phase.
MARKETING IMPLEMENTATION
This is the faucet that takes the internal strategic plans into the fields to accomplish strategic marketing objective. Where as marketing planning address what and why. If marketing activities implementation address- who, where, when and how.
COMPANIES
VELOCITY OF IMPLEMENTATION
MPD
EASTERN HOUSING LTD
As a vast ranger the company needs to be very rapid to implement its tool and they do.
Principally the company has a strong base but for time being their efficacy is on a decay
AMIN MOHAMMAD DEVELOPERS LTD.
ADDL
Response of lower level toward strategically decisions made at upper level is appreciable. They have build up a culture of efficient responsiveness at all level of the foundation.
Small companies like addl have always a privilege to apply it’s strategically outline in its grass level route.
MARKETING CONTROL
After the development and implementation of marketing strategies the management evaluates the results of marketing strategies and plans and takes corrective actions to ensure that objectives are attained. It assesses the deviation of actual result from expected or anticipated results. Then management changes the action program or even the goal if required. Figure illustrates the whole process:
SET GOALS MEASURE PERFORMANCE EVALUATE PE TAKE CORRECTIVE ACTION
Division of control is significant in real estate perspective and it’s of two types:
Operating control.
Strategic control.
Operating control involves checking the ongoing performance against the annual plan and taking corrective action when necessary. Developers often take market controls audit to analyze question like:
1. Is the product (land or apartment or commercial complex) supplied meeting its linear objective of customer solution?
2. Are the companies pricing policies and procedures are appropriate?
3. Should existing channel to communicate with clients be changed or new ones added?
4. Does the company have well developed advertising, sales promotion and public relation programs?
5. Is the sales force large enough and well trained, supervised and motivated?
Now let’s take a short operating control program for our farms.
Question type
MPD
EASTERN
AMIN
ADDL
QUES-1
Up to standard
Not up to standard
Up to standard
Not up to standard
QUES-2
Up to standard
Up to standard
Not up to standard
Up to standard
QUES-3
Should have to be up dated
Should have to be updated
Efficient enough
Needs sincerity
QUES-4
Well organized
Partial lagging behind
Well organized
Not up to standard
QUES-5
Strong enough
Not enough to meet the asking
Strong enough
Strong enough
This is a generalized view. But in effect they perform or execute the conduct with numerical facts and findings. Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities. Marketing strategies and programs quickly becomes out dated and each company should periodically reassess its approach to the market place. We have so far focused a great deal of concentration on strategically facts and its time to put on end.
Customer Relationship
Building and maintaining profitable customer relationship is essential in business for dealing it successfully. In modern business, it is more than essential. A fully satisfied customer is willing to pay more for the product with which he or she is satisfied. To satisfy the customer, the companies have to value the customers needs and wants and make products from which they can get their perceived value.
Customers are more interested to buy lands and apartments from Maks properties, Eastern Housing Ltd. and Amin Mohammed Foundation than from ADDL. This is because those three companies have made profitable relationship with the customers by satisfying them. This fact is not totally true for ADDL, as they are comparatively new in market. It takes fair period of time to build good and profitable customer relationship. Customers are influenced greatly by the quality, design and other features of the product, promotional activities and advertisements.
Eastern Housing Ltd. and Maks properties are the leading companies in selling lands and plots in Bangladesh. They have a large number of customers because they have built such a great relationship with the customers. These customers are willing to buy plots from them even with higher prices than the prices offered by others. These companies have made such impressions by giving the facilities that the customers really cherish for.
Amin Mohammad Foundation is a growing company in real estate business in Bangladesh competing well with Maks properties, Eastern Housing Ltd. and Concord real estate. Customers are rushing to the projects of Amin Mohammad Foundation. They are trying to catch customers of others by attracting them with more facilities and features for more affordable prices. ADDL is trying to capture a certain sector of the customers. They are focusing on a shorter market. By satisfying their customers they want to expand their market gradually.
Customer Loyalty and Retention
The main fear to reach the peak is to fall. There should be a high aim of the companies to hold on their customers and to grow their business more even when they are on the top. Customer delight creates an emotional relationship with a product or service, not just a rational preference. This, in turn, creates high customer loyalty. Hanging on to the same number of customers is very scary. A company has to grow continuously and think further. They have to find out and implement more and more new features and facilities of their products to the customers. In this way, they can continuously increase the number of the satisfied customers and that also creates customer loyalty. Even a slight drop from complete satisfaction can create an enormous drop in loyalty.
Eastern Housing Ltd. and Maks properties have their customers so loyal to them that they are willing to pay even prices to always be with them. These loyal customers not only buy the products of these companies, but also influence others to buy.
To keep the customers always satisfied, the companies take some extra initiatives such as giving discount on the price of the flat and plot in the REHAB Fair, giving refrigerators, televisions, dinner sets etc. with each product. Amin Mohammad Foundation is also not falling behind. They are also offering these gifts. ADDL also takes this type of initiative. These companies arrange regular programs to discuss with the customers about their problems and regarding solutions and implementation of new features and facilities.
FINDINGS
The preceding presentation of facts that we have demonstrated so far in our report reveals some biased differences of competitive farms with their marketing strategies. This is the philosophy that guides the entire organization towards sensing, serving and satisfying customer needs. But how much they fit with the way their market asks them to follow this was the question to which we seek to find out the answer. The integrated view of outcomes is illustrated bellow:
MPD
Despite its huge scope for navigation MPD is not matching with the trend of market to concentrate on apartments
It has a pretty diversified and well established channel for market promotion.
It has a significantly high level of rigidity with it’s designs and plans
Its land development projects are all concentrated at Uttara.
Most of the projects of MPD are long term based which reduces the sales turnover
They have a little phase of country projects
Eastern housing ltd.
They owe a pioneer image but it’s not being utilized properly
They hardly consider for the relaxation at price level
Expectation level of customers are too high
They are currently diverting towards shopping come commercial complexes
They are lagging behind with old model designs
It is often facing legal complexities with acquiring land developing lands
AMIN MOHAMMAD HOUSING LTD
The price charged by Amin Mohammad is quite higher than the price level of market
They have some weakness in implanting personal channel of communicating
They mainly focus on land development projects which we can be grouped as question mark portfolios according to the BCG growth share matrix
It hasn’t been a very strong distinction or specification in market segmentation
Booking charge and documentation charges are pretty high at Amin Mohammad
ADDL
This company is yet to create a strong sense of brand image & reliability
ADDL holds an unique focus with market segmentation & product development.
Its management is quite a bit relaxed to observe field level operation
It has a significant deficiency in human resource management
Real estate needs trust…
As the business is embedded upon a deal of life time, people seek for loyalty and reliability. Although it sounds quite simple this is the most complex fact that companies need to build up and maintain trust. However, this creates some subsequent liabilities of the developers to ensure some specific tool of standard. The stratigical portion of it includes:
Targeting a wider level of customer:
Accommodation is a very much burning problem that people of all level even the lower middle families are getting prepared to spend more for a better living. Gradually the market is getting larger day by day. So, developers should aim to serve that end.
Installment facilities:
Most of the prospective buyers of the country rely upon loans to manage a home to live in. but often they hesitate to proceed through for want of assurance that they’ll be able to get financial support in liberal terms and condition.
Acceptability in the long run:
It should be a prime focus of the developers to convince the customers about future return as investing in Bangladesh is too uncertain to step forward.
Innovative conceptualization
Probably no community of customers wants to be in a stagnant level of service. So, to sustain in this cut throat competition, companies should bring about new projects, packages and newly launched services. It is even more important for the first grade farms those have already reached them in a level to make people expect more. Farms can introduce foreign idea in this phase.
Liberalization of restriction
A major negative impression imposed upon prospective clients about real estate is misuse of some general rights they can enjoy otherwise. For example, MPD often restricts its buyers from changing the house-model or building up some private structures. Despite it claims to do it for sake of a homogeneous look, people feel to lose their personal choices. So, farms should better create a limit and state, you may proceed to that level.
Some obligatory changes
Especially in apartment culture, the developers often provide some structural and service facilities and charges as per their decision. This, again, seems a negative approach. Farms should arrange for a primitive lump sum payment for those facilities and should evaluate their clients’ suggestions in this regard.
Real estate is the name of a potential in Bangladesh where millions of people are dreaming of a sweet home. Our developers are the artists to make the dreams come true. They are the unique figure to set our destination that’ll lead our voyage for standard accommodation.
