Recommendation to Increase the Selling of Tropical Homes Limited

The main objective of this report is to analysis and discuss some realistic recommendation to increase the selling of Tropical Homes Limited. Other objectives are find out whether the sales growth rate of Tropical Homes is going upward and find out the pricing of Tropical Homes comparing with other Real Estate companies. Finally analysis present situation and find out the influence of Real Estate in our national economy.

Introduction

There are five basic needs in the human life. Housing is one of those and it is very essential for every people. Real Estate Industries are working to provide residence for those people who would like to buy apartment to leave in a luxurious and peaceful condition. Besides, this industry also has created a large number of jobs in the job market. Thousands of backward linkage industries such as: Brick, Sand, Ceramic, Sanitary wears industry etc. have set up on the base of real estate industries. So, it is playing a great role in our national economy as it has a huge impact on the country’s revenue collection. There is about five hundred real estate Companies in our country. All the companies are not well recognized by the people. Many of the companies do not fulfill their commitment. Unfortunately many of the people have lost their faith on few developers. To satisfy those people Tropical Homes Ltd. has taken the challenge and trying to do the best. Tropical Homes Ltd. is one of the fast growing Real estate Company. It is very new in the Real Estate market but I found the peoples behind it are very experienced and professional. In this internship report I tried to go through a total look at the overall Real Estate business in Bangladesh and then I started work at Tropical Homes Ltd. to make the report better informative and meaningful. So that the readers will able to get a simple idea about the sector’s history, nature and style of business, services etc including a live example of a well known company that is Tropical Homes Ltd.

OBJECTIVES OF THE STUDY :

Study or working on any subject must have objective. It may be only one objective or a combination of some objectives. My study also have objective. Before submitting the report I need to discuss briefly my Broad Objective and related Specific Objectives.

Broad Objective

The main objective is to prepare an internship repot and some realistic recommendation to increase the selling of Tropical Homes Ltd.

Specific Objectives 

• To find out whether the sales growth rate of Tropical Homes Ltd. is going upward.
• To find out the pricing of Tropical Homes Ltd. comparing with other Real Estate companies.
• To find out the influence of Real Estate in our national economy.

METHODOLOGY OF DATA COLLECTION :

Sources of Data: The followings are the sources and methods of data collection for the purpose to prepare the report:

Primary sources: The primary data have been collected mainly though working experience gathered by working through internship period and survey. The survey includes the following:

Observation

Interview

1. Personal Interview
2. Telephone Interview
3. Personal interview through questionnaire

Besides these Oral & informal interview with officers and employees of the Marketing Division of Tropical Homes and also Face to face meeting with the Company personnel and Face to face meeting with the different sales people.

Observation Method applied to some specific area of interest of different Real Estate companies during survey. To observe the areas I have visited various projects physically. It was very useful to collect the primary data. After making the observation it was needed to talk with the companies to know their price, features, amenities etc. about their projects in that specific area. In that case the Interview Method was applied.

Secondary sources: The secondary data have been collected from different publications of different Real Estate companies in Bangladesh, publications of Real Estate Housing Association of Bangladesh (REHAB), publications of Tropical Homes Ltd. and related Magazines and Websites.

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 the declaration of United Nation (UN) 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.

REAL ESTATE HOUSING ASSOCIATION OF BANGLADESH (REHAB) AT A GLANCE

Year of Establishment : 1991

No of Member in 1991 : 11

No of Member in 2005 (October) : 201

No of Apt. units Delivered by the Developer in last 20 year : 50,000 (Approx.)

No of Apt. units Delivered by the Developer per year (2004) : 5000-6000 unit

No of Plot units Delivered by the Developer per year : 4000-5000 unit .

Approx. turnover per year : 1,250 Crore Taka (Tk. 12.50 billion)

Contribution revenue to Government : 100 Crore Taka (Tk. 1.00 billion)

Contribution to GDP : 12-14 %

REAL ESTATE BUSINESS AT A GLANCE/ PROCESS OF REAL ESTATE BUSINESS

To develop a land, A Real Estate Company needs to go through some process. The sequence form the beginning from the land procurement to sales and all the promotional activities are enlisted below:

Land Procurement: –

1. Joint Venture (Develop vs. landowner).
2. Location / Size or land.
3. Ratio/Profit Sharing.
4. By ownership

Legal Activities: –

1. Document Searching.
2. Deed of Agreement.
3. Power of Attorney.

At Present in- house as well as external advisors is providing this services: –

1. Architectural (Engineering survey of land).
2. Structural (Soil test).
3. Electromechanical (Different consultants).

Brochures and Leaflet: –

1. Perspective (by other firms).
2. Brochure design & printing etc.

Advertising: –

1. Ad preparation.
2. Insertion in Press Medias.
3. Animation etc.

RAJUK Clearance: –

1. RAJUK Sheet Preparation.
2. Clearance from different authorities.

Construction: –

1. Starting construction of structure (pilling/foundation).
2. Civil work.
3. Finishing

Procurement of Materials: –

1. Purchase of quality materials.
2. Sourcing at reasonable price and in time.
3. Managing inventory.

Accounting & Finance

1. Souring fund.
2. Maintenance of Account.

Sales: –

1. Clients call in response to ad and hoarding.
2. Sales materialization after demonstration.

After Sales: –

1. Recovery of installments.
2. Meeting client demand/desire.
3. Loan Processing.
4. Optional works handling.

Quality Control: –

1. Purchased materials are tested through BUET Laboratory.
2. Professional in house personnel are involved in quality control during the whole process of construction.

Promotional Activities: –

1. Different Souvenirs are published.
2. Gift Items.
3. Participation in Fairs.
4. Write up Press Medias

Advertisement: –

1. Advertisement in different Daily Newspapers
2. Advertisement in different Weekly Magazines
3. Advertisement in different Bangla Newspapers/Magazines published in other countries
4. Different National & International Magazines
5. Advertisement from personal known circle
6. Advertisement on electric media/different TV channel.

Registration Process: –

1. Registration of Apartment/Shop/Office Space.
2. Free hold land.
3. Lease holds land.
4. Income Tax etc.

Hand Over: –

1. Landowner after finishing to both L/O & Clients.
2. Forming Cooperative Society.
3. Transfer of cooperative fund.
4. Ensuring after sales service for one year at least after hand over of Project.

Broker: –

1. Land Broker
2. Apartment Sales Broker.

Involvement with other Organizations: –

1. CAAB, BAF.
2. BB &Treasury.
3. Different Banks.
4. HBFC, IDLC, DBH, etc.
5. Different suppliers (Lift &Generator etc.).
6. Magazines (Home & Abroad).
7. Institutions like DCCI, FBCCI, and MCCI etc.
8. Mustans/ Muscleman.
9. BUET & other Universities.

Market Survey/ Research: –

1. Survey of different projects in Dhaka.
2. Survey on clients for demand analysis.
3. And so many other seasons.

TREND OF POPULATION GROWTH IN BANGLADESH

TREND OF POPULATION GROWTH IN DHAKA CITY

VISION OF TROPGCAL HOMES LTD LTD:

Quality professionalism and commitment makes success in real estate business that is the thing which tropical homes believe. After stated its journey in 1996. it now has become highly acclaimed and widely accepted name in real estate business it has got in house skilled professionals having experience for long days who are able to provide the most efficient space utilization and architectural aesthetic solution tropical homes cordially welcomes its potential buyers to visit its office of the project side before taking any decision tropical home would like to express its deep gratitude to all related to the company for their continued support.

Tropical Homes Ensures the followings:

• Tropical Homes Ltd Ltd. is very sensitive to fulfill their commitment.
• They use high quality construction equipments.
• They always try to satisfy their customers.
• All of the directors, Managers, Executives and other employees of Tropical Homes Ltd Ltd. are very experienced and professional.
• Tropical Homes Ltd Ltd. ensures their customers that they are tension free about the quality of their apartments.
• They provide maximum benefit to their customers.

COMMON FEATURES & SPECIFICATIONS OF TROPICAL HOMES LTD. FOR THEIR RESIDENTIAL PROJECTS :

AMENITIES & TECHNICAL SPECIFICATIONS :

 Common Amenities

• Heavy secured gateway with decorative lamps and signs on logo of the Complex.
• Spacious entrance & (well decorative) driveway with security arrangement for control of incoming & outgoing persons, vehicles, goods, etc.
• Main lobby & Reception (Granite finished Top) area in secured premises with an impressive Concierge Desk complete with personal Mail boxes, Register docks, etc.
• Car parking in covered and protected Ground floor for residents with comfortable driveways.
• Stair case with easy to climb steps & adequate lighting.
• Fire protection features conforming to International Fire Code.
• Separate manual fire alarm and a Fire Extinguisher in each floor.
• Provision of Fly proof net in all the windows.
• Elaborate Intercom system to connect each apartment to the Concierge Desk.

One standby Emergency Generator in case of power failure of (Capacity 30 KVA to 50 KVA):

• the lift
• the water pumps
• lighting in common spaces and stairs
• two light and two fan points in each apartment

One superior quality high speed lift for the building from reputed European/Korean/equivalent manufacturer to be with:

• capacity of lifting 6 persons
• adequate lighting
• well furnished and attractive doors & cabins
• emergency alarm and escape provision.
• Tastefully furnished visitors’ waiting area.
• Drivers’ waiting area with toilet
• Management Office at roof top.

 Roof Facilities:

• Linen clothes drying arrangement.
• RCC water tank to serve all the Apartments.
• Protective parapet wall.
• Heat & damp protection measure to be taken on top roof of the building.

 General Engineering:

• Materials like brick chips from machine made Sub-soil investigation and analysis.
• High quality structural building high quality picket Jhama, 60 grade Deformed/Tor steel bar, Sylhet sand etc. to meet design requirements.
• Testing of construction materials and concrete works shall be carried out at all important stages of construction and also whenever felt necessary (in the field & in the laboratory).
• Ensure close supervision at every stage of construction by Developer’s experienced and qualified Engineers and Architects.

Design Criteria:

• Structure designed to withstand Earthquakes at 7.5 of intensity in Richter scale.
• Structural design parameters to be based on ACI, ASTM and BNBC code.
• For all service connections and disposals (sewerage, solid waste, silage) British / American / BNBC building codes will be followed.
• Considered maximum wind load.
• Level of ground floor will be above 1988/1998 flood level and considering surrounding buildings & road level.
• For concrete works to give crushing strengths of 3000 psi to 3500 psi (Cyl. test) at 28 days depending on concrete ratio & design.
• Non-load bearing (partition walls) walls with 1^st class bricks for exterior & interior walls.
• Floor to bottom of roof (ceiling) will be min 9 feet 6 inch high except toilets false ceiling (7 feet).
• Ceiling edge will be in living and dining area.
• Provide damp proof course.
• All electrical wiring, plumbing and sanitary piping will be concealed and tested for leaks.
• Reinforced cement concrete floor slab.

SPECIFICATION :

Kitchen :

• Concrete shelf at 2.5 feet height from floor level with Glazed Tiles work top (RAK/equivalent).
• Provision for double burner Gas outlet.
• Concealed Hot and Cold water lines.
• A 2.5 feet Band of wall Tiles running on wall along the sink and Gas Cooker (RAK/equivalent).
• Suitably located Exhaust fan.
• One high polished stainless Counter Top Steel Sink with Mixer (Malaysian).

Bathrooms :

• Bath Tub in Master Bathroom.
• Cabinet Basin with marble Top in Master Bathroom.
• Provision of Shower Area in the Second Bathroom.
• Glazed Tiles in Bathrooms up to 7 feet height except maid’s (RAK/equivalent).
• Floor Tiles in all Bathrooms except maid’s (RAK/equivalent).
• Company Standard Sanitary fittings.
• Water proof imported Door.
• Mirrors in all Bathrooms with Overhead Lamps.
• Enamel Paint on the ceiling and walls to prevent dirt and dampness arising from moisture.
• Soap cases.
• Towel Rails.
• Concealed Hot and Cold water lines in M & Child Bathrooms.
• Essentially correct uniform floor sloped toward the water outlet.
• Tiles in maid’s room and in walls of maid’s bathroom up to 5 ft. with long pan (RAK) & shower.
• Nicely arranged Bathroom fittings & fixtures.

Floors :

• RAK Homogeneous tiles on all floors (16” X 16”).
• Essentially correct uniform floor sloped toward water outlet.
• RAK Homogeneous tiles on Stairs & Lobby.

Electrical :

• Independent Electric Meter for each apartment.
• Good quality local Electrical Switches & fittings, Circuit Breakers and Plug points (MK type/equivalent).
• Electrical distribution box with Main Switch.
• Concealed Electrical wiring.
• Washing machine provision in each apartment.
• All power outlets with Earthling connection.
• Concealed Fan Hook.
• Provision for Air Conditioner in Master Bedroom, Second Bedroom and Living room.
• Light and Fan points in Veranda.
• Two emergency light and two fan points in each apartment.
• Emergency electricity connection in Lift, Pumps, Lobby, Intercom service, Common spaces like Car parking, Reception area, Guard room and Main gate.
• Concealed Intercom and Telephone lines (02), TV/Satellite Dish connection (02) in each apartment.

Doors & Windows :

• 36 mm Solid, well seasoned, decorative main Entrance Door Frame & Shutter (Malaysian/Equivalent): – Shutter thickness 36mm; Doorframe 6.25” X 3”; Door Chain
• Check Viewer
• Solid Brass Door Knocker
•  Apartment No.
• Door handle with Lock (imported).
• Internal Doors are of strong and durable Veneer Flush door Shutters with French polish (Chamb Veneer).
• All Doors with good quality Mortise Locks and fittings.
• All internal Door frames  are made of Malaysian solid wood.
• Sliding windows with Color Glass complete with mohair lining and Rainwater Barrier in Aluminum Section.
• Safety Grills in all windows, color as matched with Aluminium Section in Enamel paint.

 Painting & Polishing :

• French polished Door frames & Shutters.
• Weather coat on outside walls (Berger/Elite).
• Smooth finished and soft colored plastic paint on all internal walls & ceilings (Berger/Elite).
• Veranda railing as per the design of perspective.
• Enamel paint on the ceilings and walls of Bathrooms color as matched with Tiles (Berger/Elite).

Utility Lines (Water & Gas) :   

• Concealed water lines.
• Hot & cold water lines in Bathrooms & Kitchen.
• Sewerage & stream water connected to WASA.
• Water reservoir designed to hold sufficient water supply.
• Two best quality water pumps (one standby emergency).
• Titas Gas approved plumbing design.
• Concealed Gas lines.
• Individual Gas Riser.
• Gas pipe lines connection from Titas Gas Distribution System as per total calculated consumption with adequate safety measures.
• Approved quality Titas Gas materials for internal wiring of Gas line.

SALIENT FEATURES

Building Entrance :  An impressive entrance gate with lamp post and the Project Logo on modern sign welcomes one to this contemporary apartment complex. The heavy secured gateway leads to a spacious covered parking floor.

Reception Lobby :  An elegantly designed main Reception lobby  decorated with tiles/synthetic marble. Personalized Mail Boxes and a stylish Register Dock for visitors’ check-in. An elegant guest waiting area highlights the Reception lobby.

Lift, Lobbies & Staircase :  A major element of convenience & comfort is the lift that has been selected to exacting European styles. This comes in impressive doors & cabin  providing fast & reliable services to residents on all floors. Best level of safety has been maintained in the specifications.

The staircase is well located and easily accessible with easy to climb stairs. This leads to lobbies on each floor. The top of the stair railing will be of S. S.

Apartment Layouts :  The total  layout has been thoughtfully arranged to maximize advantages especially in relation to day light and cross ventilation throughout. Privacy has been emphasized by spreading the layout from end to end. The master and the second bedrooms have been located away from the living room.

Optional Features :  Various interior designing and additional fittings & fixtures as per choice of allottee may be arranged at cost basis upon approval of the company.

GENERAL TERMS & CONDITIONS FOR THE BUYER/CLIENTS :

Application: Interested buyer shall submit application on the prescribed form duly signed by him/her/them along with earnest money. Tropical Homes Ltd serves the right to accept or reject any application without assigning any reason.

ALLOTMENT   Allotment will be made on first come first served basis. On acceptance of application & earnest money, TROPICAL HOMES LTD will issue an allotment letter to the applicant on receipt of which he/she shall start making payments as per the schedule of payments in the brochure. Buyers willing to make a one time payment will be entertained with substantial discount.  Until the full payment of installments, buyer shall have no right to transfer the allotment to the third party.

Payment:  All payments shall be made by A/C Payee Cheque or Bank Draft or Pay-order in favor of “Tropical Homes Ltd Ltd.”. Bangladeshis residing abroad may remit payments by TT or DD. Buyer must strictly follow the payment schedule.  TROPICAL HOMES LTD may issue reminders to the buyer for delay in payment beyond due date. The buyer is liable to pay a delay charge @ 0.1% per day on the amount of payment delayed.  If the payment is delayed beyond 30 days TROPICAL HOMES LTD shall have the right to cancel the allotment. In such an event the amount paid by buyer shall be refunded after deducting 5% of the total price after resale of the Apartment.

Company’s Right:  The Company may take minor changes in the design both Architectural & Structural of the project should these become necessary. Limited changes in the specification and facilities may be made by TROPICAL HOMES LTD for overall interest of the project.

Hand Over:  The possession of the apartment will be handed over within 24 months from the date of commencement of construction work except for  reasons beyond control of TROPICAL HOMES LTD such as force majeure, natural calamities, political disturbances, strikes, Acts of God or economic conditions, etc. This hand over will only be made after the full payment of installments.

Utility Connection:   Connection fee, security deposit for water, Gas & Electricity and incidental costs relating to these are not included in the price of apartment. Buyer will make these payments directly to the authorities concerned. Should expenditure on these accounts be incurred by TROPICAL HOMES LTD buyer will reimburse the same to the company proportionate to his/ her share.

Refund:  For any reason beyond the control of TROPICAL HOMES LTD like force majeur, natural calamities, political disturbances, strikes, Acts of God or economic conditions, etc., the company may be bound to abandon the Project.  In such an event the buyer will be entitled to refund of all installments along with the earnest money already paid by him/ her.

Transfer of Ownership: Proportionate share of undivided & undemarcated land will be registered in favor of each allocate as per the current rules & regulations of Ministry of Works.

Transfer Cost:  All costs relating to transfer of ownership of the proportionate share of land will be borne by the allot tee on actual basis.

Management:  The buyer must undertake to become a member of the Owners’ Cooperative  Society that will be formed by the owners of the apartments for the management of common services such as lift, pumps, security, compound, etc. Each allocate must initially deposit Tk.  25000.00 (twenty five thousand) only in the Reserve Fund of the Association or Company for maintaining management expenses of the complex.

Upcoming Projects:

In the coming months the Tropical Homes Ltd. is going to take several projects in some aristocratic areas for Upper Class people and some projects in other areas for Middle Class. The areas are Dhanmondi, Banani, Gulshan, DOHS, Uttara, Shiddishary, Malibag, Kalabagan, Bashabo, Mirpur etc. So, the sale will be increased because of increasing the projects and target customer.

DDITIONAL WORK AT THE PERIOD OF INTERNSHIP :

Survey : During my study I had to go for survey at some specific areas. It was needed due to make a complete price comparison of Tropical Homes Ltd. with other renowned Real Estate Companies and also to make an acceptable SWOT Analysis and sales strategies of Tropical Homes Ltd. To make the report more informative and effective the survey reports are given below:

Area : Sir Syed Road, Mohammadpur

AREA : COLLEGE GATE & SURROUNDINGS, MOHAMMADPUR

AREA : UTTARA, DHAKA

 SWOT ANALYSIS OF TROPICAL HOMES LTD:

Strengths:

• Experienced Management.
• Efficient and dedicated employees.
• Good understanding between employees.
• Good relationship with exiting clients.
• Locations of the Projects are good enough.
• High standard of construction quality.

Weaknesses:

• As a company it is new in Real Estate sector.
• Many prospective clients don’t have any idea about its construction quality.
• Comparatively product’s prices are higher than many companies.
• Lack of promotional activities or advertisements.
• No specific policy following by the employees.

Opportunities:

• The upcoming Projects are in demandable locations.
• Those who know about Union, they normally consider as a good developer.
• Huge number of projects under construction.
• Motivation of the sales persons to encourage them for more effective in sell.
• Offer the prospective clients to visit the existing projects to make positive impression.

Threats:

• Huge numbers of developers means huge numbers of competitors are in the race.
• Land procurement cost becoming higher and higher day by day.
• Asking prices of many companies in the same location are lower than Union.
• Some well reputed companies considered Union as their competitor.
• Number of Project still zero in Gulshan & Central Dhanmondi.

CONCLUSION :

After analyzing the business of whole Real Estate sector in Bangladesh it is very clear that the number of competitors for Tropical Homes Ltd. are huge. That’s why it is not very easy for the company to make the business financially and profitably stable without extra efforts in business promotion and extra ordinary features and services. The offer from Tropical Homes Ltd. should be extra ordinary and something new. Definitely there need to have specific advantages for the buyers. So that they will find Tropical Homes Ltd. better than others. Service is important specially to make the references strong. Clients will bring clients. This should be the theme of the business. And it can be possible by giving better services. If the clients are happy, they will tell others. It is very effective for long term business. Still the future of Tropical Homes Ltd. is very bright. If they able to improve their lacking and weaknesses, they will be able increase their sell more. Tropical Homes Ltd. have different projects in its hand in different locations for different levels of buyers. Just Need to go for aggressive promotion with attractive offer to reach to the buyers. I strongly believe that time is not a far away for Union to have its position on the top.

RECOMMENDATION :

Not only Tropical Homes Ltd. also every business organization is looking for a vision that is profit. Because without profit a company will not be able to run. Once upon a time it will be wordless & unsuccessful. The continuation of achieving the vision is a very important thing which is the central target and maintains and organizes the company’s whole staffs & officials.  But it is not a very easy task for the companies. The top Real Estate and Multinational companies running in our country are doing a lot to achieve their goals. As a new company Tropical Homes Ltd. Ma

y study those. Some common activities of different organizations may be a sort recommendation as listed below to follow:

1. Regular advertisement in the major daily Newspapers, Magazines etc.
2. Regular monitoring of all types of works including construction.
3. Maintain good construction quality.
4. Maintain good relation with existing clients.
5. Regular feed back from the existing clients.
6. Promote after sell service.
7. Arrange more products for different levels of buyers.
8. Regular evaluation of the employees.
9. Effective motivation policy for the employees.
10. Extra/surprised reward for the dedicated and good working employees.
11. Arrange weekly/monthly meeting between Management & Employees.
12. Share the opinion and activities among office staff in the general meetings.