Marketing Activities of Tropical Homes Ltd. in the Real Estate Sector
In Bangladesh, the problem of urbanization is further aggravated by limited land use policy. As globalization increases, the process of urbanization increases. The ever increasing urban population is creating an increasing demand for shelter. This paper is an attempt to observe how “Tropical Homes Ltd.” is influencing the urbanization pattern with special reference to Dhaka city 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% population of Bangladesh live in urban areas, which will be 34% by the year 2025 (REHAB 2003). The present estimated population of Dhaka is 1 cro 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. During 1970s, 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).
There are five basic needs in the human life. Housing is one of those and it is very essential for every people. Real estate companies are working to provide house for those people who would like buying an apartment. Besides, this industry has also created a large number of jobs in the job market. Thousands of backward linkage industries such as: brick, sand, ceramic, sanitary wears industries etc. have set up to base on the real estate industries. So THL, as a real estate company run with a effective slogan- “A Friend In Need”. It is new in the real estate global village but the people behind it are very much experienced and professionals. There are about 500 real estate companies in Bangladesh. Real estate companies are playing a great role to increase our national income. But very few companies are recognized by the people of our country. Most of the companies do not fulfill their commitments. Many of the people have lost their faith on developers. THL has taken this challenge and tries to satisfy people.
Back ground of the study:
Emerging competitors are fighting to gain substantial market share, though THL is considered as a leader in real estate sector. In the arena of competitive market environment it has become significantly important for any company to analyze its performance of different marketing strategies in order to survive in the volatile market environment as well as to manage companies’ operations efficiently and effectively for achieving its objectives. This report is tailored to focus on the marketing activities of THL that is performing to retain market share and uphold the growth.
REASONS FOR DEVELOPMENT OF THE INDUSTRY:
The main reasons why real estate business developed in Dhaka city are as follows:
a. Scarcity of open space in the important areas of the city
b. Hazards of purchasing land
c. Hazards of construction of building
d. Rapid increase in population of Dhaka
e. Decrease in the rate of bank interest
f. Price of land and apartments is increasing day by day
g. Rent of the apartments is comparatively higher than the rent of privately constructed flats
h. Open Market Economy. Remittance of foreign currency is very easy
j. Service facilities such as garbage disposal, central satellite TV connection, apartment’s services saves time, roof top facilities, lift and so on.
Real estate business especially apartment projects has started in late 1970s in Dhaka City. But from early ’80s the business started to grow and flourish. At present, more than 250 companies are active in business but 95% business is still dominated by of top 10 Companies. Present market is growing at the rate 15%.
The broad objective of this report is to measure the marketing activities performing by the “Marketing & Sales Department of “Tropical Homes Ltd.”
The specific objectives of this report are:
- To make THL familiar with the readers and future researchers.
- Take a closure look on the activities, policies and practices of THL.
- Take look on the overall real estate sector of Bangladesh.
- Identify the target market and market segmentation of THL.
- Prepare a recommendation for THL
This internship report mainly focus on the activities of “Marketing & Sales Department” of THL. In this report, I discussed the things those I have observed at the time of my internship in that department. I have reviewed the overall marketing and sales activities of THL and at the end I give a recommendation for “Marketing & Sales Department” of THL. Though this is not a research type report, I do not include any findings in it. My internship period was from 1st June, 2009 to 30th August, 2009 and all of my report focuses all those activities that I had observed at that time.
The study is carried out using both primary and secondary data.
Primary data collection: To prepare this report, the primary data was collected mainly through the survey as official assignment during the time of internship. Other methods are-
- Telephone Interview.
- Personal Interview.
- Oral & Informative interview with the officers and employees of the “Marketing & Sales Department “of THL.
Secondary data collection: The secondary data have been collected from different publications of REHAB, different journals of THL, and related magazines and journals. I have used data collected from company publications with a view to observe the THL’s marketing activities, policies and company practices.
ABOUT TROPICAL HOMES LIMITED
Tropical Homes Limited (THL) is estate of the art builder and one of the fastest growing real-estate developers in Bangladesh since 1996. The company allows the members to serve the nation ultimately in a different angle very smartly.
It is just a matter of long term planning on any environment friendly geographical location. Of course it involves so many factors in deciding about that. It has taken twenty two projects in different locations in Dhaka (till June 2009). Already it has completed about eight projects. THL is little a bit slow but steady in persuasion of its goal.
The management personnel, managers, executives, architects, engineers and staffs members are serving for the enhancement of efficiency of the company so that the company serves the clients better. Departmentalization is specially taken care for systematic and coordinated operation of the company activities. A panel of advisors, consultants and patrons are also continuously working for its enrichment of products and services.
THL was established with the primary goal of providing first-grade quality service and takes a leadership role in the Real Estate market. Throughout the year THL’s dedications to quality and diligence in remaining technically astute have been the key ingredients of it’s success in several clients’ engagements. THL has been able to maintain long-term relationship with distinctions and pride. While the trend in many businesses has been to diversify, this basic trend has guided THL to diversify its activities.
THL emphasizes it’s capabilities in undertaking large complex development projects, and shares the commitment with clients in meeting stringent deadlines and objectives. The company pride itself in being able to make the difference between a project that is delayed and a job that is well done within a reasonable time frame. It is totally a customer focus company and serve it’s best to make them smile.
Managing Director – The main responsibility of the managing director is to manage and supervise the entire department including Accounts & Finance, Consumer Care, Land Procurement, Admin & Human Resources Management, Logistic, Legal, and Information Technology.
Chairman – THL’s chairman is the director of “Marketing and Sales” department. His responsibilities are to maintain the managers and executives of this department. He has the authority to finalize the sales.
Director – The Director of THL manages and supervises “Engineering” and “Land Development” department.
Total Employees -Around 200 persons.
VISION OF THL
- To maintain the highest standards in developing commercial properties.
- To maintain the highest standards in developing homes for individuals.
- To create safe homes.
- To provide a fine blend of the traditional and contemporary design.
- To provide feeling of living in a home with ultimate comfort.
- To provide professional and personalized services of the highest integrity.
- To become an international referral for buyers and investors.
- To provide high quality Customer Relationship Management.
- To develop and train staff.
MISSION OF THL
- Maintain outstanding service to its clients.
- Maintain a high standard of quality of finish.
- Maintain a safe environment.
- Maintain value for many.
- Continue good communications procedures.
- Continue to promote a sense of corporate identity within all the staff team.
- Continue to provide staff training to providing Excellence Customer Care.
- Continue develop ‘Brand Name’.
- Marketing and promoting to individuals quality homes in Bangladesh.
- Marketing and promoting to won luxury homes for investment or comfort living.
OBJECTIVES OF THL
Our objective is to create vest employ, make urbanization with modern facilities which will ensure safe environment and where quality will not be compromised. Innovation, dynamism and perfection lead us to ultimate satisfaction of our customers and that is our objective.
WHAT MAKES THL DIFFERENT?
Five major attributes make the cornerstone of THL’s success:
QUALITY: The standards which set for the company and which govern it’s engagements constantly reinforce it’s goal of brining the highest level of professionalism to all it’s engagements. The company exists to serve it’s clients those who are directed to meet this commitments. THL reflects this commitment to quality through the activities of it’s managers and executives, who are personally involved in quality related activities such as planning, goal-setting, employee recognition, progress reviews and meeting with customers. They project and reinforce the Company’s quality values in a consistent manner and engage all levels of management to co-operate in this effort. THL’s management is responsible for reinforcing the firm’s vitality by infusing each assignment with integrity and excellence of effort. Consistency in meeting user objectives with a shared sense of concern accounts for it’s reputation of excellence and reliability.
TEAM WORK: Teamwork within THL Occurs when people work in a community of shared technical, personal and economic interests. To successfully carry out their missions THL’s employees are assigned to projects where their technical disciplines complement one another in achieving the customer’s business objectives. But there is more. THL maintain just first class interpersonal relationship within it’s office & beyond. Within the workplace there is a sense enthusiasm and eagerness to demonstrate technical proficiency by working together to produce the best results possible. THL fosters a team spirit and the founders of the company have this idea of close co-operation in mind at the very beginning.
SERVICE: The managers and executives of the company are directly involved in each project. Every assignment is important. If customer has a problem, they make it their problem. They know customers want a timely and accurate resolution. The customers rely on them and value their trust and confidence very highly. They know customer is their boss. They satisfy these needs by remaining constantly available to their customers and allocating the kind of resources their customers may need & they provide the best solution in a timely manner. Customers are the center of their enterprise and they will take necessary actions to support customers’ success every time. They believe that only by understanding the customers needs a company can deliver superior service and stay ahead of competitors.
EFFECIENCY: THL believes that the best way to improve productivity is to give its people the opportunity to learn, contribute to the process and develop each individual’s own sense of achievement. THL’s major strength lies in its pool of professionals and their substantial backgrounds in the real estate industry. In a spirit of co-operation, the professionals have succeeded in meeting the goals of some of the most complex assignments. It is their demand for excellence that the enthusiasm they bring to consulting, which has contributed to the THL ‘s success.
INNOVATION: Long-term success can only be assured by cultivating new ideas. That is the way THL encourages its people to be creative, gives them the means to see their ideas realized.
MAJOR COMPETITORS OF THL:
- Amin Mohammad Foundation Ltd.
- Asset Development & Holdings
- Bashati Consortium Ltd
- The Structural Engineers Ltd.
- East West Property Development (pvt.) ltd.
- Concord Condominium Ltd.
- Building Technology & Ideas Ltd.
- Rangs Properties
- Navana Real Estate Ltd.
- Oriental Real Estate LTD.
- Sheltec Ltd.
- Suvastu Development Ltd.
ABOUT “MARKETING & SALES DEPARTMENT OF THL”
The “Marketing & Sales Department” of THL is one of the most important departments of THL. In this department, there are one manager, one assistant manager and two executives. They are smart, energetic, experienced and high educated. They are capable of handling clients and selling the products in the efficient and effective way.
MARKET SEGMENTATION OF THE EXISTING & UP COMING PROJECTS OF THL
The markets of THL for its existing and up coming projects are highly segmented. This segmentation is mainly based on the location, price of the land, and size of the apartments. The segmented areas are:
a) Segmentation – I :Baridhara, Gulshan, Banani, DOHS, Uttara.
b) Segmentation – II: Dhanmondi, Kalabagan.
c) Segmentation – III: Shegunbagicha, Shantinagar, Kakrail, Malibagh.
d) Segmentation – IV: Mirpur.
e) Segmentation – V: Banglamotor, Eskaton..
f) Segmentation – VI :(For office building) Motijheel, Dilkusha, Kawran Bazar, Pantha Path etc.
LOCATIONS OF DIFFERENT PROJECTS OF THL:
- College Gate.
- Mohakhali DOHS.
MARKETING ACTIVITIES OF THL:
In Bangladesh, there are more or less 500 real estate companies are working. Some of them are REHAB members and some of them are not. No matter whether they are REHAB member or not, the main activity of any Real Estate Company is to sell their products. At the end of my graduation, as a student of Marketing, I had done my internship in THL’s “Marketing & Sales Department”. I worked there for three months and closely observed all the activities of employees of “Marketing & Sales Department”. Again all the employees of “Marketing & Sales Department”, helped me lot to understand and realize how a sales person market and sell the products. Now I am giving the broad description of all the marketing activities of THL –
The first and foremost activity of THL’s “Marketing & Sales Department” is to prepare the advertisement which will be given to the daily newspapers. THL gives ads frequently on the newspapers (per week minimum one ads is given). THL gives main ads mostly on “The Daily Prothom- Alo” and “The Daily Ittefaq”. THL also gives classified ads on different daily news papers. In the main ads, names of four or five upcoming and existing projects, flat size, handover date etc are given. At the below part of the main ads, the name of the company, telephone numbers of the company, mobile numbers of the marketing executives are given. For the preparation of the ads, the Promotion Manager of THL is responsible. His responsibilities are to prepare and develop ads to attract the clients. After preparing the ads, he shows the ad to the management of THL and after approving the particular ad by the management, finally the ad is given to the daily news paper on the previously fixed date.
The busyness of the “Marketing & Sales Department” increases in that day, when the ad comes on the newspaper. In that day, all the executive officers remain busy for the whole day long. The prospect and proposed clients make phone calls after seeing the ads on newspapers. The executives receive phone calls, give description of the particular project, and tell them about project location, available flat size, present condition of the construction works, handover date, booking money etc. The executives do not share the price over the phone. Because it is strictly prohibited by the management of THL. But they always invite the clients to come at the office so that after sitting together both of them can discuss about the price.
After that, client/s come to the head office and sits with that particular marketing executive and discusses everything. The executive officer shows the floor plan, design, layouts etc. and make the customer understand all the things. Again here the price of the flat or the commercial spaces, booking money, price of the car parking, handover date etc. are discussed. It may not happen that, at the first time the prospect client purchase the product. Bargaining starts among both of them and sometimes it takes a lot of time and some times a few days to reach both of them in a unique decision. Some clients want to visit the project and the executive took the client/s to the particular project. Through this process, the client/s has a practical idea about the project. After that, the interested client/s come to the head office and sits with the executive for the discussion process described before.
In some cases, the executive officer took the client to sit with the management of THL and if the client offered the price which seems reasonable to the management, then the flat or commercial space is sold. As the head of the “Marketing and Sales Department”, the Chairman of THL, Dr. Md. Razaul Karim sits with client/s for the purpose of final sales. Then the prospect client pays the booking money and become the original client and a member of THL family. The activities of the “Marketing and Sales Department” came to an end when the “Deed of Agreement” between that client/s and the company is mutually signed. As the representative of the company, the Managing Director of THL, Mr. Rabiul Hoque came into an agreement with that client/s through the “Deed of Agreement”.
Market Survey is an important activity of THL’s “Marketing and Sales Department”. But these surveys are not done by the executives of the “Marketing and Sales Department”. THL takes “Intern” from reputed universities and through these “Interns”, the surveys are accomplished. Before sending the “Interns” for survey, the executives of “Marketing and Sales Department” give proper instructions and guidelines to do the survey. These surveys are basically done to know the projects of different developers in those locations, where THL have existing projects or THL wants to take projects.
PRODUCTS OF THL:
- Duplex homes
- Simplex homes
- Luxury Apartments
- Furnished Apartments.
- Commercial Space
- Shopping Complex
- Office Building
- Commercial Showroom.
GENERAL TERMS AND CONDITIONS OF ALLOTMENT OF THE PRODUCTS OF THL FOR THE CLIENTS
- Application for allotment of apartments should be made on the prescribed application form duly signed by the applicant along with the earnest money. THL has the right to accept or reject any application without assigning any reason thereto.
- On acceptance of an application, THL will issue allotment letter to the applicant on which the applicant/allottee shall start making payment as per the schedule of the project. Allotment of apartments is made on first come first serve basis.
- Payments of earnest money, instalments, car parking costs, additional works and other charges shall be made by cheque, bank draft or pay order directly in the name of THL against which the receipts will be issued. Bangladeshis residing abroad may remit payments in foreign exchange by TT or DD in the name of THL.
- Payments of instalments and all other charges are to be made on due dates according to the schedule. THL may issue reminders to the allot tee, but notwithstanding the issue of reminders, the allot tee must adhere to the schedule to ensure timely completion of construction.
- THL may arrange HBFC/Bank loan (if available) for allot tees according to the existing rules and regulations of the authority concerned.
- Delay in payments beyond the schedule date will make the allot tee liable to pay delay charge for every 30 days on the amount of the payment delayed. If the payment is delayed beyond 60 days, THL have the right to cancel the allotment. In such an event, the amount paid by the allot tee will be refunded after deducting the earnest money and after allotment of the cancelled apartment.
- Connection fees/charges security deposits and other incidental expenses relating to gas, water, sewerage and electric connections are included in the price of apartments. THL will make those payments directly to the authorities concerned on the allot tee’s account.
8. Limited changes in the specifications, design and/or layout of the apartments and other facilities may be made by THL in larger overall interest or due to unavoidable reasons.
9. THL may cancel an allotment for non-payment of instalments in disregard of reminders and after final intimation to the allot tee by registered post at the address given in the application form.
- The allottee shall be required to execute an agreement with THL for safeguarding the interests.
- The possession of the apartment shall be duly handed over to the allot tee on completion and full payment of instalments and other charges and dues. Till then the possession will rest with THL. If the project is completed before the stipulated time, the allot tee shall have to make full payment before taking possession.
- The allottees will become equally divisible undivided and undemarketed shareholders of total acres of the scheduled land of the project in respective apartment. After all the dues and instalments are paid by the purchaser according to the requirements and schedule for payment and after the completion of the construction, the vendors shall execute a registered sale deed in favour of the purchaser transferring share of land of the project in the demised apartment.
- After taking over of apartment of the project, the allot tee (s) must consult with THL prior to undertaking any structural or layout changes within the apartment complex. Failure to do so will be at the sole risk of the allottee.
- THL shall not be liable if the completion period of the construction of the projects is affected by unavoidable circumstances beyond the control of the company, like natural calamities, political disturbances, strikes and changes in the fiscal policy of the state etc.
- For the purpose of effective management and maintenance of the building the purchaser of the apartment shall form and constitute a mutual benefit cooperative society under the Co-operative Society’s Act 1940. The society shall be entrusted with the management and maintenance of the building. The rules, regulations and by laws of the co-operative society relating to management and maintenance of the building shall be binding upon all the purchasers/owners of the apartments.
NATIONAL POLICY GUIDELINES FOLLOWED BY UDTL:
In Bangladesh, there is no policy guideline for the real estate sector. However, Real Estate and Housing Association of Bangladesh (REHAB), the national coordinator of the private real estate developers has proposed a policy guideline for the sustainable development of this sector. Some of the important guidelines of REHAB are stated below:
- Government and private real estate developers should play their role equally in the land development process of the urban and per-urban areas.
- The role of the private sector housing in the urbanization process should be evaluated properly while formulating urbanization related projects and policies.
- Several laws and regulations (stated in section 10.00) which have become obsolete should be updated immediately. There are some conflicts and duplicity among the laws which should be taken care of.
- While formulating the Structure plan, the business of the private real estate developers should be given utmost priority. In this regard, land banking system can be a handy tool.
- Proper subdivision planning and zoning laws would help the private developers to cope with the policies and provisions of the structure plan.
- The registration system for the private real estate sector should be rescheduled within acceptable terms.
- The designs or plan for the private real estate projects should be approved by RAJUK.
- 30% land area of any project to be kept aside for road, drainage and public utility service purpose.
- For the better utilization of the scarce land resource, high rise buildings should be patronized.
- Government’s control over the land value and house rent should be
- The Building Construction Act, 1996 and other government building codes should be enforced strictly.
- No private developers should be permitted to construct the housing scheme outside the proposed expansion zone of the structure plan.
- THL should stables the latest service marketing strategy, which will provide satisfaction for the valuable customer and it is the demand for the time.
- Internet, the information supper high way, which is a modern way of marketing, so, when THL will start internet marketing, customer will get easily access about the THL product and service.
- THL did not provide 24 hours customer service facilities.
- Scarcity of man power (Marketing & Sales Department) for distributing service to the existing and target customer.
- Direct sales agents are not inspired by their sales commission, remuneration and inadequate performance reward.
- Marketing and Sales policy is not up to the demand for the present time.
- For the time THL is not providing any type of training program and workshops for the employees manage customers smoothly and increase sales & services.
During my tenure as in “Intern” in THL, my placement was in “Sales & Marketing Department”. I worked there for three months where I encountered some issues that I thought should catch the THL’s management’s attention to re-examine. THL is one of the topmost developers in the country and it has been operating quite successfully. Although it has a healthy and steady growth in sales development of apartment and shopping complex, the organization needs to address some of the bottlenecks found out at the time of internship programme conducted for the concerned study .In an attempt to solve various problems so far identified in this study, the following recommendations can be put forward, which are given below, are from observational point of view:
- THL should implement the best service providing strategy that will ensure more value for the existing and target customers.
- When the THL should implement internet marketing then our existing client and potential client will be very effective in this point of view.
- THL should provide 24hours online service to the customers to solve their problems and queries.
- “Marketing and Sales Department” should run in the most efficient and effective way. For ensuring better service THL should recruit more people in this department.
- Marketing Team (Direct Sales Agents) is less motivated in their job. They are not satisfied with their sales commission. THL should provide them a fixed sales commission and some rewards like the best performer should be rewarded annually.
- The managers and executives of “Sales & Marketing Department” should give more sincere attention to solve the customers’ problems.
- “Sales & Marketing Department” should encourage in order to career development of the employees. By doing so, THL will be able to increase the performance of the employees.
- THL should take protective measures so that it can be ensured that the services provided by its employees are free to get in its highest limit. This will help clients to come out from the fear of false transaction.
- THL should wishes to the clients in different occasions. It will create an extra value for the clients and make them more pleased and positive about the company.
- Before selling apartments or commercial spaces, “Sales & Marketing Department” should meticulously verify the applicant’s income from salary, status and other required particulars because many clients have a tendency to furnish erroneous information in their applications.
- THL’s direct marketing effort must be implemented more precisely and elaborately to ensure maximum market coverage both for existing and proposed clients.
- Arrangement for offering attractive gifts & prizes for the clients and target clients should be made so that the numbers of clients are increasing day by day.
- They should apply some promotional activity to raise its sale.
- Evaluation for the good performance of the employees by introducing award and incentives
Today Bangladesh stands on the juncture of economic emancipation. The stage is set for rapid growth and development in every sector of the economy. The real estate sector is also experiencing significant changes. ‘Professionalism’ is the key word for success now a days and in the years to come. Only those companies which have a total commitment to this sector will thrive. THL is determined to play a leading role in the development of the real estate sector in the twenty –first century. THL has worked towards building a strong foundation and establishing a professional corporate identity for the company. Today, in the field of real estate development, though THL is new, but in future, it will be a recognized leader which will be respected for its achievements, professional ethics and innovative concepts. THL’s corporate philosophy is however based on a very simple principle – “A friend in need”. To this end, THL is constantly working towards upgrading and improving every aspect of it’s activity. THL emphasises to keep on improving it’s overall operations. It is because of this unrelenting quest for excellence that THL have earned the goodwill of so many of it’s customers. Today THL is poised for a new phase of dynamic growth. THL’s human resource is well trained and motivated, It’s financial fundamentals are strong and it has an excellent goodwill in the market. THL’s vision is to constantly set challenging goals. THL will continue to expand and diversify and be an example of a progressive company, playing a dynamic role in the economic development of Bangladesh. THL is a newly formed company dedicated to build a ‘beautiful tomorrow’ for the people of Bangladesh. Strong leadership, total commitment and personal care orientation have already created a strong image of the company in the apartment market. With a firm belief in the potential and track record of the hard working management of the company, customers are assured of obtaining the best value against their investment. Every single client of the company is treated with most personal attention. The ultimate policy of the company is to retain a life long relationship with THL’s home-owners. For every project development, before entering in designing the project, a group of experts plan and design the project taking into considerations its location, environment, surroundings, urban facilities and some other important factors that ensure maximum comfort and convenience for the target dwellers. THL’s architects and consultants relentlessly give maximum time and effort to respond to modern days need and changes concerning function, aesthetics and technology. Their every development embraces the importance of all latest facilities and amenities with maximum air, light and ventilation. THL has a strong project management team. Each and every phase of construction is planned, determined, supervised and engineered by a strong group of experts who have a large experience in some major local and foreign constructions. Only for this Project Management Team, THL can hand over its projects before the stipulated time guaranteeing a quality construction with superb finishing. Each and every suggestion of THL’s valued customers is greatly emphasized at every phase of project construction. Since the customer satisfaction is the main motto, THL’s customer service department always stands beside the customers to give the best possible friendly service. Customer service people always ready to welcome the clients whenever they need. THL’s aim is not only to meet the international standard, but to exceed it by setting new standard in design, construction and service.
THL is filled with optimism and promises of rosy tomorrow with its fleet of highly qualified professional engineers, architects, efficient technical personnel with high capability to meet the challenges of the 21st century. THL is an efficient and socially responsible participant in infrastructural construction sector and committed to organizational pursuit of excellence in its undertakings. THL aspires to make a significant and lasting contribution to the nation’s development and quality of life. THL provide its clients with competitive pricing, quality materials and workmanship and completion of project on schedule as well as post completion attention to ensure complete satisfaction.