Marketing of Disney Design and Developers Ltd

Executive Summary

Disney Design & Developers Ltd Is working for the development in the field of urban areas. It has the reputation in the quality apartment and commercial complex construction in the Dhaka city. Disney Design & Developers Ltd.

believes in the ultimate satisfaction of clients.

Developer sector is the most important in DhakaCity and other area. This area of competition among real state sector. It is the most important and preliminary work of a Real state sector. The regular customer services such as depositing or drawing money, selling of instruments to them for remittance purpose, collection of instruments, providing other ancillary to keep customer flat buy. Personnel’s of this section should posses the required behavior for regular satisfaction of the customers.

In order to meet the housing problem of DhakaCity in particular Disney Design & Developers Ltd emerged on September, 2007. Now near about 400 Real estate Developers are engaged in this business. As a result, real estate business in Bangladesh holds much popularity now-a-days. That’s why prosper is very is good indeed.

Disney Design & Developers Ltd is renown in the business of real estate in Bangladesh. They have an effective marketing policy to survive in this competitive world. They hope this strategy will be very helpful to expand such kind of project.

 Introduction:

In our everyday life, we use real estate in some manner; we make use of real estate resources to provide shelter, comfort, convenience, and privacy, a place of work, recreational facilities and related services. In an estimate real estate represents more than 40% of national wealth. Therefore, the manner in which the resources of this magnitude are used has an important effect on the well-being of our people, the success or failure of business firms and the general prosperity of the country The term Real Estate as commonly used has two meaning.

• It is the name given to the commodity “reality“ which includes not only land but also all human improvements placed on the land.
•  It is the name given to the business engaged in by those persons who conduct commercial transactions in real estate.

The basic component of reality as a commodity is land. It means not only the surface of the earth but also the property rights and interests that attach to ownership of reality, including subsurface minerals. Thus the real estate means acquirement of land and building which is called inherent right. The men who are the owner, user, maker, financier or marketer of the property have some rights to the property.

Scope of Study:

This study is conducted on the real estate developers that are operating in the Dhaka city only. So it covers only the housing need and condition of the capital city.

Objective of the study:

The objectives of the study are found out the consumer attitudes towards Disney Design & Developers Ltd. Especially the objectives of the study were as follows:

• To know about the general Real Estate activities.
• To know about customer consumption pattern.
• To know about dealings of Apartment & pay system
• To know about customer preferences about the location, size and price.
• To know about customer choices.
• To analyze the target audience.

Rationality of study:

Internship program is essential for every student, for the students of Business Administration, which helps them to know the real life situation. For this reason a student takes the internship program at the last stag to the degree, to launch a career with some practical experience.

The internship program is very helpful to bridge the gap between the theoretical knowledge and real life experience as part of Bachelor of Business through the theoretical understanding.

Methodology:

Relevant data from reliable sources had used while preparing the report. Both primary and secondary data had used.

Primary sources:

• Discussion with managing director of Disney Design & Developers Ltd.
• Discussion with Marketing Manager of Disney Design & Developers Ltd.
• Discussion with other employees of Disney Design & Developers Ltd.
• Discussion with 20 customers of Disney Design & Developers Ltd.

 Secondary Sources:

• Annual report of Disney Design & Developers Ltd.
• Different manuals of Disney Design & Developers Ltd.
• Prospectus of Disney Design & Developers Ltd.
• Different report of Disney Design & Developers Ltd.

Limitation of the study:

There are at least 450 real estate developers, small or big size that are operating in Dhaka city. But information are collected only from leading 3 or 4 companies due to following factors:

Top level management officers are busy:

            In organization information is more important to evaluate the performance of the certain organization but information is managed strictly by the top level management and they are also busy.

 Time Limitation:

 The major limitation is time binding. Experience comes from learning but learning takes time. Adequate time is required for learning. Three months are not sufficient to learn.

Secrecy problem:

Every organization follows its own secrecy. It is very to disclose the secret information to others.

Introduction

The Disney Design & Developers Ltd is a real estate company. It is doing business with apartments. It has some number of apartment project.

Background of the organization

 Disney Design & Developers Ltd is one of the leading and well established real estate Company in Bangladesh since1995. To solved the residential problem of Dhaka City DDDL constructing luxury flats duplexes and commercial buildings through developing lands in Dhaka city mostly located in Dhanmondi, Mohammadpur, Ashulia, Uttara & other attractive place of Dhaka City. The company builds the sculptures with modern outlook and with all facilities that make one to live in tune of life. In aim is to offer the best real-estate product to our buyers to maximize our client’s valuable investment.

It works with a group of professionals who serve with commitment. DDDL has high quality of Engineer’s, Architects, and efficient technical personals of high capability to meet the challenges of 21^st century.

Organization Address:

Head Office

62, Jhigatola, Dhammondi, Dhaka-1209.

Structure of the Company:

 Nature of the Business

This a Real Estate company (Disney Design & Developers Ltd.)

Business Philosophy

• Profit Maximization
• Cost minimization
• Company’s Wealth Maximization
• Create Customer Value & Satisfaction

Vision Statement

DDDL’s aim is to provide its clients with competitive price, quality materials and completion of project on time. “ Quality of construction, stylish living & Customer’s Care” is our motto. DDDL is the symbol of customer’s confidence.

Mission Statement

The company objective are to build modern architectural structure with the infusion of latest technologies. We also ensure sophisticated faiclities and comfort keeping in mind the needs of our valued clients in order to make their living comfortable with environment friendly atmosphere.

Objective & Goals of DDDL”

DDDL creates an idealistic milieu for self contained, independent and distinguished house in a secured and exclusive community. Its goal is to make a comfortable living through fairly spacious, airy, well-lit environment. In planning the sculptures climatic conditions, earthquake resistance, safety exit and security receive top consideration. The company is proceeding personnel, tested materials, the services and the feature of all projects satisfy its valuable buyers feel secured to be in its sculptures.

• The objectives of ‘DDDL is not only to earn profit but also to keep the local and NRB commitment and to ensure its co-operation to the person of all level.
• The objective is to have clear-cut knowledge about activities of “DDDL” and to stable for the buyers and sellers commitment.

The DDDL is committed to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth strategy for its NRB customers and by creating corporate culture in Real Estate arena.

List of Major Correspondent

• DCCI-         Dhaka Chamber of Commerce & Industry
• REHAB-     Real Estate Housing Association Bangladesh
• DITF-         Dhaka International Trade Fair
• MOL-          Ministry of land

 Annual Turnover

DDDL is sealing around DDDL 200- 350 Million of land & Apartment in every year.

Product List of “ DDDL”

Disney Point(West Dhanmondi)               Disney Corner(West DhanmondiDhaka)                  Chandni Bhabon(West Dhanmondi)

  MakanTaiyabTower (west Dhanmondi                Disney Corner(West Dhanmondi Dhaka)      Chandni Bhabon(West Dhanmondi)

New SikderMedicalCollege)

Buyer’s Attention

Product       : Describe the enquiry as fully and    technically as       possible

Price            : The company office made to the buyer’s      will be    either in BDT or U.S. Dollar basis to the customer.

Payment     : The Company usually takes payment through Bank. Customer can give payment directly at the company’s office.

 Observation:

Marketing people are searching existing and potential buyers. After getting customer they offer products, shows price and make a demonstration of the product. If customer agrees to see the product then they take customer to visit the project. If customers are pleased  then they make negotiation with customer about price. If customer agrees then they give application to fill it up and take an amount of booking money. If customer wants to buy in installment the give an installment payment schedule. After that they maintain a documents file for the customer.

 Learning Point

During my internship period I tried my best to on the performances of DDDL. I have learned many things about official work,behavior and how to deal with consumer. I have learned how to communicate with general people .I have learned  how to convincing the clients. I have learned about behavior of consumers also learn a high range of promotional activities required to make a good consumers relationship. I  know how to complete a market research effectively. I have learned about some promotional tools in DDDL. These tools are given below:

Advertisment & Publicity:

To stimulate the potential clients and to be effective in advertisement we use the following form fo advertisements.

a)     News Paper Advertising:  

Developers Company depends on newspaper advertising i.e. natural dailies.

b)     Bill Board:

We set billboard of the busy street to enhance company’s corporate image.

c)     TV Advertising

To crate more value for the product to the consumer we use electronic media i.e. TV advertising at the time for launching a new product in the market. However. TV advertising may require a large budge and it might have or good effect on sales thorugh its presence. It may create a good appeal to intensity the prospects attention so that it evolves in to strong interest.

d)     public Relation & publicity:

Company some time uses the public relation and publicity tool to create credibility about the product through visual aids. Sales portfolios, co-coordinated with the other promotion media. It cam reach prospects to avoid sales people and advertisements. We also publish news stories and features about the new product in the newspaper which give authenticity and credibility to the renders.

 Sales Promotion:

Sales promotion tools can be used to draw a stronger and quicker buyer response for boosting the sagging in following ways:

a) Price off:

            Some concession in price, we can offer to the prospective buyers who want price discount, that value to the customer. As for example: if any buyers pays the down payment at least @ 25% or above of total price, in that case we offer him a price concession depending on the size of the respective shop/ apartment.

b) Sales Commission:

We appoint sales agent who persuade the customer on terms on offering sales commission to the agents.

c) Sales Incentive to Company Staff:

we provide incentive to the company staff except sales personnel if anybody is able to sale any shop/apartment. In such case, we can offer in following way.

• Price range between Tk 6 to 15 lac: Tk 5000 for each unit.
• Price range between Tk 16 to 25 lac: Tk 10000 for each.
• Price range between Tk 26 lac and above: Tk 15000 for each unit.

 Direct Marketing

With a view to be effective in boosting up the increment of sales we give special effort in direct marketing. We use the some forms of direct marketing, such as-

a) Direct mail

We send flyer using highly mailing lists and distribution of leaflets at the targeted area.

We comb different sources for the names for the probable prospect. Sources of probable prospect may include- different directories, different professional i.e. doctors, customers official etc.

The leaflets at mailed after prospecting the potential clients to the following group:

• Reputed local brand in consistent with our offered item
• Different professionals-Doctors, Customers official, Bankers.

The leaflets are usually discredited along with the national dailies in the targeted area such as new market, Elephant road, Islampur, central road Hatirpool, Green road, Katal bagan, Azimpur, Kalabang, Mohammadpur, Shamoli, Dhanmondi, Zikatola etc.

b) Face to Face Selling

After location the prospect we develop into customers by following up, making personal visit, after prospecting the potential clients, the sales forces undertake the following activities.

a)       3 terms each consisting of 02 sales personnel is formed. This team is formed on mutual discussion and as per chodice of the sales personnel.

b)      Every team makes an appointment with the clients and will directly make personal visit the prospect.

c)       In every week every 02 sales people visit at least 12 prospects.

d)      Thus in each month every team consists of 02 sales personnel visit 48 prospects.

e)       To out the prospect into a respective state of mind the sales person may present some kind of gift items-such as Mug/Key ring/ pen holder etc.

f)         The team produces the list of clients whom they vieited.

Within 05 of each month there is a review meeting is held in which the total activities and follow up including individual performance of the sales personnel of the whole month is evaluated.

Personnel Selling:

Personnel selling effort are controlled in such a manner that sales department objective are reached. The several phases of control are presented in the following discussion

a)       In the sales policies and procedures imperfections are corrected in implementation.

b)      An individual qualitative performance standard in terms units is set again which to measures performance. As for example a target by selling units for each sales person is set month wise.

c)       To monitor the activities of sales persons the needed date collected and processed and sales persons daily performance is measured. Weekly and monthly report or the day activities. The formats of these reports are presented here.

Analysis & Findings of Disney Design & Developers Ltd. (DDDL)

Disney Design & Developers Ltd.

Balance sheet

As on June 30, 2010

Notes

2010

Amount

In taka2009

Amount

In taka1. SOURCES OF FUND:        Share Holders fund:  21,213,675       12700314    Share Capital01.01,00 0,000    1,000,000    Retained earning 02.0    2021367511700314    Shareholders equity 21213675    12700314    2. APPLICATION FUND:     A.  Fixed Assets:   67012458    25169827          At Cost03.0    9390508342710795          Less: Depreciation03.026892625 17540968      B.  Non Current Assets: –        1503673          Preliminary expenses –            24000          Differed expenses  04.00 –        1479673      C.  Current Assets:  891361757    684668552          Contraction(work- in progress)05.0 726111999  512136359          Advance deposit & prepayment06.0  137886981   134855967          Cash and bank balance07.0    27362777     37676226     D.  Current liabilities:   937160540   698641738          Bank overdraft08.0  68855022 1123235          Liabilities for expenses09.0  73719907 58727420          Liabilities for other finance10.0788680126 634912743          Provision for Tax11.0     5905486       3878340     E.  Net Current Assets (C-D)    4579878313973186        Total assets (A+B+E)    2121367512700314

Disney Design & Developers Ltd.

PROFIT & LOSS ACCOUNT

For the year ended June 30, 2010

Apartment Development

12.00

 926663574

 486839015

Less: Cost Recognized against

Apartment Development

13.00

783030720

     408701352

Gross Profit

 143632854

   78137663

Selling & Administrative overhead

14.00

  123718024

    65210088

    Net Profit before Financial expenses

19914830

       12927576

Financial expenses

15.00

     8527500

 1338687

    Net Profit after Financial Expenses

11387329

       11588889

Non Operating Income

16.00

     2234048

         2333948

    Provision for Tax

510817

         5221064

Retained Earning – carried over

Ratio Analysis of Disney Design & Developers Ltd.

The year of 2010 and 2009

Current Ratio

Particulars

2010

Amount in Taka

2009

Amount in Taka

Current Ratio

891361751

937160540

= 0.99 : 1

684668552

698641738

= 0.98 : 1

Comments: The calculated ratio is 0.99: 1 in 2009 and o.98: 1 in 2009. I compare between 2009 and 2010. Here 2010 ratio is better than the 2009 ratio. So the financial position of the company 2010 is better than the 2009.

Debt Ratio

Debt Ratio

937160540

958374215

=0.98%

698641738

716342052

= 0.98%

 Comments: The calculated ratio is 0.98% in 2010 and o.98% in 2009. I compare between 2009 and 2010. Here 2010 ratio and   2009 ratio are same. So the financial position of the company has no change between two years. Two years the company positions are same.

Interest Coverage

Interest Coverage

11387329

7996068

= 1.42 times

11588889

851028

= 13.6 times

 Comments:  The calculated ratio is 1.42 times in 2010 which is not preferable for the company  but The calculated ratio is 13.6 times in 2009 which is more preferable than 2010. So here the company position in 2010 is not good but in 2009 is very good.

Operating Ratio

Operating Ratio

(783030720+132245524)*100

9266663574

=1.23%

(408701352+66548675)*100

486839015

= 1.17%

Comments: The calculated ratio is 1.23% in 2010 and 1.17% in 2009 which is not preferable for the company. So the position of the company is unsound.

Capital Turnover Ratio

Capital Turnover Ratio

783030720

21213675

=36.91 times

408701352

11196641

= 36.50 times

Comments: The calculate ratio 36.91 times in 2010 and 36.50 times in 2009 which is more preferable for using of capita. So the company position is sound.

Earning per Equity share

Amount in taka2009

Amount in Taka

Earning per share

8513361 *100

10000

= 851

8701773*100

10000

= 870

Comments: The calculated share price 851 in 2010 and 870 in 2009.Here I compare between two years. Earning share in 2009 is better than the 2010 share price. So the company position is sound.

 SWOT Analysis of the company:

The team SWOT is the abbreviated from of strength, weakness, opportunity and threat. In SWOT analysis strength and weakness are determined by internal factor, while opportunity and threat are determined by the external factors. If we look into ASSURANCE Properties Real Estate Ltd. carefully, then we can identify the following things.

1        Strength

• Expert and experienced management team.

• Continuing growth in net income and net sales.

• Well motivated and high skilled staff.

• Market potentiality is very high.

• Effective sales volume.

• High awareness of the service.

• Ability to make quick decision.

• Provide more potential activity.

• High attribute of product quality.

2        Weaknesses:

• Very few budgets for promotional activities.
• Not the market leader.
• Insufficient equipment facility.
• Irregular supply of construction materials.
• Low area market coverage.

3        Opportunities:

• Housing demands is increase day by day.

• New real estate business is opining each day.

• Skilled employees are increasing who may enrich the organization.

• Improve the service quality than the companies.

• Higher reserve fund.

• Product price is lower than other company.

• Improve high customer satisfaction.

Threats:

• Strong competitors.

• Increase dependency on local supplier network.

• Political crisis.

• The large number of local competitors.

• Growing up of overall cost.

• Complexity of RAJUK rules & regulation.

• Decrease of land for making building.

 Findings

• Most of the customer wants to have their own flat to standard living in Dhaka city also a residential area.
• Maximum customers are prefers to price range per flat Tk3000000 to 4000000 lac.
• Customers are like some residential area for standard living. Such as Dhanmondi, Lalmatia, Baridhara, Bonani and Uttara and so many.
• Most of customers are want to pay for per square feet Tk 2500 to 4500.
• Customers want to facilities of their own apartment to have like communication, gas, electricity, water system verandahs windows and so many.
• Customers are like most 1^st,2^nd and 3^rd  floor for comfortable living.
• All most they want to have the stand by generator facility.
• Most of the clients are prefer two or three bedrooms are one dining rooms system apartment.
• Every customer is choosing to front or right side apartment.
• Most of the customers want to have car parking facilities.
• Customer want to smooth finish plastic on walls and distemper on ceiling of soft colors.
• Most of the customers prefers are solid wooden ( shegun) decorative main entrance door with door chain.

Recommendation

• The company needs to offer reasonable price for their clients.
• The company needs to advertise their products in various buyers.
• The company needs to give attractive facilities for the buyers.
• The company needs to communicate regularly with the local land owner
• The company needs to handover their project quickly and timely.
  • The company needs to buy vast amount of land or need to make collaboration with the landowner to complete a project.
  • The company can arrange more opportunities for internship it will help company for getting good results.
  • The company can develop project for mid income people, this will give them more profit.

The Disney Design & Developers Ltd can take future initiatives for their improvements in:

• Identifying the potential buyers.
• Making effective business plan and refinement in existing business.
• Test marketing to test the initial potential of products in market
• Making Effective operational up gradation.
• Hiring skilled manpower, provide training and awareness about latest technology and market trends and effective management.
• Making cost effective production, by maintaining quality standards.
• Setting the cost and price with quality taken to be consideration.
• Enhancing cost effective marketing, by using both physical and electronic selling channels (Internet, e-commerce).
• Maintaining proper layout to complete the project.

Conclusion

From the above discussion we may conclude that a wide variety of products like exist in the real estate market and the massive competition among the real estate developers is making price war and in promoting their product using all kinds of promotional tools to achieve marketing objective which creates better facility and reasonable price for the target customer. The government needs to be given a special attention to reduce the property transfer cost and relevant bottleneck to facilitate the housing need to the all segment of population.

Reference:

Books

• P.Kotler, Principles of Marketing for Tenth Edition, Published by pearson education ( Singapore) pte.Ltd. Indian Branch, 482 Fie Patpargang Delhi 110092, India.
• P. Kotler Marketing Management for Twelve edition, Published by pearson education (Singapore) pte. Ltd. Indian Branch,482 Fie Patpargang Delhi 110092, India.

Reports:

• Annual Report of Disney Design & Developers Ltd.(2010)
• Prospectus & Brochures of Disney Design & Developers Ltd.