The major objective of this report is to analysis Marketing Implication of Popular Developers Limited. Other objectives of this reports are to know the Marketing practice followed by Popular Developers Limited, identify factor affecting consumer behavior and analyze how PDL reaches to their target customers. Here also identify PDL’s pricing strategy and describe types of promotional tools PDL use to communicate with its target market. Finally focus on how the micro-environment of PDL affects its consumer behavior.
Objective of the Report:
The objective of the internship is to expose the students in the organization work situation and this report is a result of such company involvement. The primary objective of this report is to explain the real life scenarios in the organizational working environment. However, the objective behind this study may something be broader. Thus the objectives of the study are:
- To know the Marketing practice followed by Popular Developers Limited
- To identify factor affecting consumer behavior of PDL
- To know how PDL reaches to their target customers
- To identify PDL’s pricing strategy
- To know what types of promotional tools PDL use to communicate with its target market
- To focus on how the micro-environment of PDL affects its consumer behavior.
- To develop an understanding on how PDL designs its organizational settings to achieves its goals
- To identify how PDL takes its decision for media selection
- To identify PDL’s promotional objectives
- To focus on PDL’s communication policy.
Background of Popular Developer Ltd:
The need of shelter is a fundamental right of all human being but there is an acute storage of affordable housing in both urban and rural areas of Bangladesh. It is very difficult for the government alone to ensure housing for all .Some Developers Company has taken up the responsibility to provide housing and thereby building better life for the people of our country .people in Dhaka city is increasing rapidly .To solve this housing problem developers companies are works beside government. In this housing crisis, to help government action popular arrange safe housing in Dhaka an out side of the Dhaka city.
Real state business in Bangladesh is recent phenomenon although such activities have been started sometime in 1964.
Popular developers Ltd. Was organized in 2001as a private Ltd company to facilitate the urban housing needs .The Company established by some enthusiastic minded people their main objective is provided realistic and affordable solution for housing shortage and other related pressing problem in Bangladesh.
The company is committed to provide a good environment for living and working .Popular successfully continue its works .Popular is running by a well-organized team of proficient architect, skilled, structural Engineers, management experts and many professionals are engaged. A number of high-qualified consultants from various disciplines also contribute a significant role to enhancing the capabilities of the company .the company also have R&D department to develop design structure and other facilities. Popular has shown its work properly and its growth is remarkable with a short time.
Popular construction Ltd. Has apartments and land projects it generally face intense competition from other concern business entities.
For land projects its major competitor is the large project to address the housing problem. Though it’s an opportunity for the company due to the option for the customers having no access there for limited land .Even there is chance for being evaluating the projects. For its apartment the competitor is immense due to huge number of companies developing apartments around the PDL Project’s .like
- Amin Mohammad Group
- Asset Developers
- Shahjalal Property Ltd
- Biswas Builders Ltd.
- Earth Holding Pvt. Ltd.
- Nagor Home
- Asset Developer
- Many other
Terms & Condition:
All interested buyer will need to apply for allotment on a prescribe application from (supplier &buyer) duty singed by applicant along with booking money. Allotment will be maid first serve basis .Buyer wishing to make one-time payment in full shall be given a special discount on the price of the apartment. Allotment of apartment is made and confirmed only upon receipt of the advance money. The company reserve the right aspect or reject an application without assigning any reason there of.
Buyer can pay the price in one time. If he pays the price in one time, she/he will get some discount.
In case of installment buyer will get the residual month of project hand over. After booking, he will pay the initial deposit with in a month. Then she/he will bind to pay the residual amount on the EME (Equal Monthly Installment) base. Booking money and initial payment vary with the location consideration and project importance.
The purchaser will make the payment as per payment schedule. All payment should be made A/C payee cheque or bond draft or pay order of cash in favor of popular developer ltd. payment from overseas in US Dollars will be calculated at the prevailing official conversion rare of Bangladesh taka on the date of payment.
Signature of Deed of Payment:
After confirmation of allotments, they have to sign the deed of agreement within 30(Thirty) days from the date of making the payment of Booking money.
The Possession of the apartment will be handed over to the purchaser after completion of installments and other charges. Unless the dues are paid, possession of the apartment will not be handed over to the allotter.
Delay of payment:
The allotter undertakes to pay delay charges at the rate 1% per days on the amount of payment delayed beyond the due date. If the payment in delayed for 30 days, the company shall have the right to cancel the allotment without any notice to the allotter. In such case buyer’s posited amount will be refunded after sale out the same apartment to a new buyer. Also an amount of TK 1, 00,000.00 (taka one lac) only will be deducted from the buyers deposited amount for incidental charges.
To ensure the constant security a modern security service will build up with a private security and by establishing police outpost.
Company will take care and give necessary general services for the Emigrant Customers on their behalf if required by them
Main supply line of Water, Gus, Electricity, Sewerage and internal road development of the project will been made with the help of concerned authorities. Customers will have to bear the related actual expenses.
Popular developers Ltd. has 14-16 people are involved to carry out the concerned management activities and implementing the strategy that’s taken by the hi-ups of the organization. To carry out the project development there are many people working including project engineers and laborers. Very close relation is being maintained between management and project management so that no deviation takes place. High co-ordination is maintained. CEO is the key decision maker in the organization.
Popular Developers Ltd. run its business activities from its own financials sources since this is private ltd. organization. Making profit is a very big factor in the business because it is the only way to generate money to keep the business running. For this reasons the organization completely depends on the selling of the land & apartments. In the case of selling customers are the key to get the objective .so their business policy is to serve the target customers with full satisfaction and keep running the business in a legal way .Popular Developers Ltd. is uncompromisingly working for the achievements of its goal.
Function of the organization:
The key functions of the organization are in the following:
Marketing plan includes many things, these are as follows-
We should make our product pricing according to the customer’s paying ability. We also concern about the pricing strategy of our competitors. We should set the flexible price from the competitors.
We directly distribute our products. Because if distribute directly of our products we may get the pricing advantages from our competitors.
At first, we want to say that our products & services are the main promotional tools of our business. That means if we provide quality products customer will interested about our product. Additionally we can use the newspaper add. Magazine adds. Etc.
We should control of our whole business. We obviously maintain of our all business sectors. For our better performances, we should control & monitor all over of our business by which we can quality products & services.
Marketing Management Concept/philosophies/orientation:
In the organization, corporate bodies are the main or key strategy maker or decision maker and rest of employee do implement the decision. Here the PDL, corporate persons like Chairman, senior executive, director of marketing, director of finance take all the decision and push down these decision to the lower level for implementation. But the keep a very close eye in the implementation process and also work with the fellow employee for the achievement of the goals. The keep constant interaction with the subordinates and get the thing done by them. They are very much open and flexible in terms of communication with the subordinates. The corporate bodies make meeting when necessary also make appointment of employees and assign work to the subordinates. They continently provide leadership to their respective departments and direct the fellow employees.
PDL’s Marketing Activities:
Production, product and selling, marketing and social marketing concept. Popular constructions Ltd. conduct their marketing activities under the societal marketing concept. But when I was doing my internee I surveyed personally to know the current market situation and mainly to adjust the concept that how the market growing, after that I assume Popular construction ltd. conducts product concept because market consumers want product quality, performance, innovations features and continuous product improvements and I think they also follow this societal marketing concept.
Real estate firms had to take certain vital decision in order to better market their products. PDL marketing strategies are discussed below
- Product Consideration: PDL deals with marketing and selling only one product, which is flat.
- Place Consideration:
Prospective buyers of the real estate property consider the location before taking a final decision to buy. It is well keep in mind, while land and improvement are stationary, the surrounding neighborhood or the community in which the property in situated is in a constant state flux and movement. Changes in the immediate environment have a significant effect upon property values.
A study shows that apartment houses are located in different areas in the city. The following table shows the distribution of apartment in different city areas.
Table: Distribution of apartment house in different city areas
|City areas||Apartment house (in %)|
In determining the location, the firms under study consider whether the land is situated in near by residential or non residential area, then they evaluate the distance of educational institute, market place or shopping centre, hospital and above all communication network to and from the site. As a whole the firms try to select such a site which can be attached by the prospective buyers. Besides these, the firms want to be sure about the genuineness of the ownership right of the land.
Fixing the price of the real estate property is very complex compared to any other business. The real estate firms under the study determine the price in there different methods:
- Land price + construction cost + margin is the widely used method of pricing followed by the real estate firms in the Dhaka About 75% of the firms using this pricing policy. It is to be noted here that land and construction cost is calculated at the cost price. That why, PDL charge higher margin under this method and that ranges from 75% to 100%.
- Ascertaining the cost of construction per square feet including the land price is another method used in fixing the selling price of the apartments. Thus the prices of apartments vary with its size. Now PDL using these methods have been found selling the apartment @ TK 2600-3500 per square feet. This method is getting popularity and followed by about 17% of the real estate firms. Under this method PDL can face the competitive situation effectively.
- Price escalation with land and construction cost is a method followed by only 8% of the firms in the Dhaka In this method the firms charges relatively low percentage of profit. Land price increased tremendously in Dhaka city. The followed table 16 exhibits the increased rate of land price during 1974, 1990 and 2001 in different areas in Dhaka city.
- Another study shows that a number of consideration followed by the companies in pricing apartment house 8% of the companies determine. Their price of apartment on the basis of the quality of the construction while 55% of the companies determine their price on the basis of location of the apartment building 40% of the companies determine were found to take demand into account in fixing price.
- It has been reported that 95% of the companies followed mark up policy in determine price while15% of the companies pricing policy were based on companies’ pricing and 10% of the companies followed a pricing method according to the convenience. It has been observed that the price of apartment of similar size in it locally very due to the variation of quality of constriction. The following table shows the current prices of apartment of varying size located in different city of area.
PDL Marketing Environment (Micro):
A company’s marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers.
PDL Micro Environment:
PDL micro environment consists of it’s the company’s suppliers, marketing intermediaries, customer markets, competitor and publics.
The company (PDL) –
In designing marketing plans, marketing management to makes the apartment. PDL treat their to management, finance, purchasing and accounting. All these interrelated, suppliers as partner in creating and delivering clients value takes other company groups, such groups form the internal environment. PDL top management sets the company mission, objectives, broad strategies and policies.
Suppliers of PDL–
Suppliers form an important link in the PDL overall customer value delivery system. They provide the resources needed by the PDL.PDL is not big company so, when they get large offer than they do work with different construction firm.
- Abul raw materials supplier
- Rainbow construction Ltd.
- Concord construction Ltd.
- k. raw materials agent etc
Market Intermediaries of PDL-
Marketing intermediaries Aries help the PDL to promote and sell its apartments to the final buyers. They include physical financial intermediaries
- Bank housing loan
- Housing agent etc
Customers / clients of PDL–
PDL study five types of clients markets closely. Consumers markets consist of individuals and household that buys apartments for personal use. Business marketer buy apartment for further possessing of use their production process, whereas reseller position in an industry can use certain strategies that smaller real estate firms can not afford. Markets buy apartment to resell at a profit. Government markets are made up of government agencies that buy apartments to produce public service or transfer the apartments to other who countries, including consumers, resellers, and governments. Each market type has special characteristics that call for careful study by the PDL.
Competitors of PDL :
PDL considers its size and industry position compared to those of its competitors, because large real estate company with dominant
- Amin Mohammad Group
- Asset Developers
- Shahjalal Property Ltd
- Biswas Builders Ltd.
- Earth Holding Pvt. Ltd.
- Nagor Home
- Asset Developer
- Many other
Target Market Analysis
I need to observe the market to know about information, for this reason we have survey some customers and different companies. From there i have collected the following information. I find that our targeted customers are based on two categories .these are
1) Customer’s age &
2) Customer’s occupation
Customer’s age: popular based on Customer’s age they are divided their targeted customer under three categories.
- 40+ ages- 70%
- 30-40 ages- 20%
- Under 30 ages- 10
Among the whole customers which are good established that means whose age are 40+ generally they purchase almost 70% of our product who are in 30 to 40 ages they buy our 20% product and least of the product purchased by the customers whose age is under 30 years.
- Business Person- 60%
- Job Holder- 40%
From the market analysis, we can ensure that 60% of our customers are involved in various types of business and another 40% customers are doing varieties sections of service.
Marketing strategies of the PDL:
We know that one strategy is not best for all companies. There are different strategy is required for the different types of products. PDL Company, s main overall strategy is to deliver quality products and wining long-term customer’s loyalty.
Target market strategy:
PDL Company is a medium size company. Company does not produce huge amount products .So they target the customers who have upper- upper, upper- middle class people. Companies try to serve target segment perfectly and try to archive its Marketing Activities.
- PDL company competitive advantages are
- Affordable price, higher quality, large sales promotional activities, own transportation service make their apartment products and distinctive than competitor and provide greater value to the target customer.
- The marketing mix that company sells its products below price list, quality discount, and transportation to promote the sales of the products.
- Company follows the marketing concept for this reason the target potential customers.
- PDL placed a desirable position to t6he customers. For this reason PDL become a competitive brand get greatest strategic advantages in their target markets.
Popular construction ltd. also maintain customer Relationship Management (CRM), known as relationship marketing or customer management, is an information technology industry term for the methodologies, strategies, software, and other web-based capabilities used to help an enterprise organize and manage customer relationships.
- Customer Focus:
PDL’s CRM emphasizes customer retention over customer acquisition are recognized as one of the most viable tools used to other a company’s success in the highly competitive business world. The functionality of and between these three fields is essential to successfully connecting a company’s front and back offices to facilitate effective, enterprise-wide coordination.There are three major areas of PDL that focus on customer satisfaction:
- Sales force
The professional sales force predicts and proposes the real-time analysis of information and distributes this information to the company and business partners. The goal of PDL’s CRM is to aid organizations in better understanding each customer’s value to the company, while improving the efficiency and effectiveness of communication. PDL’s CRM captures, analyzes, and distributes all relevant data from customer and prospect interactions to everyone in the organization. This distribution of information helps an organization sale forces to better meet customer, product, and service needs.
Marketing concentrates on personalizing customer preferences and offering them satisfying experiences. PDL’s CRM has replaced traditional marketing techniques that focused on key marketing mix elements, such as product, price, promotion and place. By being too functionally-based, traditional marketing techniques neglected the customer in the after-sales process and failed to meet customers’ desires.
Service is associated with the companies’ call centers and coordinates interaction between Web, e-mail, and other communication Medias. These fields are developed further with the help of CRM automation The goal of PDL’s CRM is to aid organizations service in better understanding each customer’s value to the company try to captures, analyzes, and distributes all relevant data from customer and prospect interactions to everyone in the organizationto develop the service. This distribution of information helps an organization better meet customer’s satisfaction.
Our organization is a partnership business. We are three partners-
- Basir Ullah
- Majba Hossine
- Ruhul Amin
We all try to perform best from our level best. We should fulfill al of our responsibilities. We also maintain & follow all the rules & regulations of our business organization. Our business organization is a partnership business.
Popular usually set promotional objectives which will help them to meet their broader marketing and organizational objectives and they have multiple objectives for doing this promotional activities e.g. building awareness of the potential customers, selling products.
The first objective is to provide information about the products of Popular to its existing as well as potential customers. The specific information can be what products are available, where they can be purchase, and what the prices of those products are.
After providing information, encouraging prospective customers to purchase products is the most common promotional objective. Using advertisements and other promotional methods, popular attempt to persuade customers to try new products that have been on the market awhile.
Popular also rely on promotional activities to reduce or eliminate substantial variations in demand through out the year. During slow times company offers different types of gifts, discount, etc for stabilizing the sales.
Positioning the product:
Often popular uses promotional activities to create position a product as different or superior to competing products such as they offer low price to the potential customer, easy installment system, bank loan facilities etc
The Promotion Mix:
To inform, influence, and remain customers or general public popular use personal selling (Person-to person approach) and advertising, sales promotions, publicity (Non-personal approaches) .Popular are use all of these four elements for attracting customers. Because Popular thinks that every single option will carry weight and being customers. So Popular uses all of those four tools which is treated as Promotional Mix.
Since all types, customers are very much familiar with advertising and if the particular advertising is very much attractive the potential customer are more influenced. And usually Bangladeshi customers are emotional so any emotional TV advertising will create a place in the mind of customers which can be treated as positional for popular.
But advertising quite expensive ,especially using national media with immense audiences .But popular has found advertising to be cost effective because it can be reach a vast number of people at low cost per person and it is also quite flexible.
Popular uses different types of advertising e.g. primary–Demand Advertising, Selective Advertising, and Institutions Advertising .The reasons are that popular at first wants to create or increase demand for all its products. Like in a social awareness advertising, popular sponsor it and using its name for Courtesy only. They are not using specific their brand name here but to introduce their name to the potential customers. Not only has this popular also used their name advertisement in different media to selling the product more. Here popular introduces their product to the customers and try to sell it more. Popular also advertise used to build goodwill and create a favorable public image to the exiting as well as potential customers.
Popular using different types of media for advertising which ultimately help Share & Care to inform as well as influence the potential customer to buy their products. Those different types of media are:
Popular gives advertising to newspapers e.g. daily pothook alo with a view of different photo of the ongoing project. This is a very important media because customers with different status can be able to evaluate those products and after that they may be influenced to buy those products. Also people are very much enthusiastic to read newspapers. So this is an important media for Popular.
Popular also mail directly by collecting their prospective customer’s address by which they will read it directly and some of them will be interested to buy one of those products. This is important as well because customers directly get the mail and read it.
Magazines are also important media for Popular. They are giving advertisement in different relevant magazines with colorful photo which make the customers interested to buy the products.
Popular also using various billboards, posters and other outdoor displays, for making the potential customers more interested. They also use transit advertising.
In different fair, Popular always participate. Because in the fair more customers came and visit the stall and the percentage of sales usually grow up because at that time different types of discount, gifts provide to the customers.
Personal communication is oral communication with potential buyers of a product with the intention of making a sale, so Popular Developers ltd build up a strong team for personal selling. Popular Developers ltd. personal presentation sales force for the purpose of making sales and building customer relationships. The Marketing people of Popular are devoting themselves to communicate person-to-person which means personal selling. They have made different zone for different people and specific persons visit those places, communicate with different potential customers, and persuade customers will purchase their products.
Popular developer’s ltd declared sales incentive for kinds of sealer & it can stimulate quick increase in sales by targeting promotional incentive on particle products. Popular developer’s ltd. short-term incentives to encourage the purchase or sales of their product or service. Popular developer’s ltd. also promoting their products while selling. They offer different sales promotion for the customers which make the customers more influenced for buying their products. They offer different types of promotional offers depending on situation and budget. The most common sales promoting methods are:
Popular developer’s ltd decided to make strong public relation as a new organization so they use magazine, newspaper those are the cheap way of reaching many customers. Popular developer’s ltd works for good relationship with its publics by obtaining favorable publicity, building up a good corporate image and handling off unfavorable rumors, stories and events. It an important part of sales promotion which help Popular to create and maintain a favorable public image for a firm. Different articles in magazines, newspapers etc. are given for public relations. Also captioned photographs usually use for public relation. Some time press conference held with different invited concerned persons. Popular expend lots of money for its publicity in one of the most important part of promoting of its products.
One of the significant tasks the popular do is to establish direct connections with carefully targeted consumers to obtain and immediate response and cultivate lasting customer relationship with help of Telephone, mail, fax, internet, and other tools.
Direct marketing is immediate and customized message can be prepared very quickly and can be tailored to appeal to specific customers.
Direct marketing is interactive .It allows dialog between the marketing team and consumer .Popular developers ltd. follows those media-
- Direct response adverts on Magazine and Newspapers
- Direct mail
- Catalogue marketing
Communication Policy of PDL:
The major specialty poplar’s employ a variety of advertising vehicles to improve sales. Popular competitors use all newspaper advertisements, outdoor advertisement on buses and at bus shelters, radio, personal selling and direct mailing have. Newspaper, advertisements receive 70% of advertising budgets. Construction is an impulse item. During the course of the day, many potential customers in an office will read a daily newspaper while radio and outdoor advertisements are only effective during commute periods. The newspaper offers the best vehicle to direct an advertising message that will be reinforce every time a potential customer picks up the newspaper. The communication market analysis was conducted to examine how loyal customers & sales reprehensive advertise their products to target consumer groups. Popular competitors were examined, in particular, to establish their marketing patterns and how it affects sales. Through the communication market analysis, several significant findings were revealed.
- Customer loyalty to a particular company-to-company chain does not exceed 35% of the customer base.
- Customers are receptive to a store debit card that makes purchases quick and easy.
- Customers respond favorably to incentives tied to the use of the debt card.
- Customers respond favorably to incentives tied to the use of the installment system.
- Currently, none of popular competitors are planning to launch debit cards.
- Now-a-days, poplar’s competitors are planning to give gift package.
It depends on the situations. Because sometime the selling is slow then popular is use push strategy .they may offer coupon for the customer where the winning customer may get a free flat also they may get a car, mobile set ,cash money ,T.V. jewelary,freeze ,woven, computer etc. Than customer to come in to the side and try to influence them to buy a product
Demand full market popular uses pull strategy .because here there is demand for flat and customer come intentionally for buying flat. At that time popular does not give much offer. Because their demand and customers come intentionally and price may be higher at that time or may be lower than the before.
SWOT analysis of Popular Developer Limited:
- Very good and strong relationship marketing.
- The project itself is strength for the department.
- Very good marketing in inside and out side of country.
- Qualified employees are available.
- Important location for accommodation.
- Very quick decision-making capability.
- Capable to quick action taken.
- Latest state-of-the art technology.
- Internal inflexibility.
- Poor coordination between departments.
- Lack of participation in publicly e.g. TV advertising
- Small allocation in the employees for marketing.
- Small number employees for marketing.
- Lack of motivation program for the employees.
- Very few evaluated procedures for the employees.
- The company create an image to the customer
- Chances for aggressive marketing
- Very good demand in town.
- Economic growth of Bangladesh.
- Available potential target customers.
- This company can use modern technology.
- Strike, hartal, and political instability.
- Economic slow down
- Competitors and their destructive marketing.
- Growing doubt about the developers.
- Prolonged decision-making.
- Yellow journalism.
The popular developers ltd has performed relatively well in Bangladeshi .It has experienced during the year and is now recognized to have great potential. Last five years, Bangladesh real estate industry developed rapidly.
The growth of this country has also led to widening of the local product range, with about 20 companies dominating the drive for the same .the industry has, become leading growth sector, and with some, prominent manufactures operating and producing the finest apartments by internationally accepted standard.
The planning and design approach is very important components in the construction sector specially to ensure sustainability. The technology and innovation in the construction industry may reduce construction cost and time, as well as increase safety.
New technological innovations, often in conjunction with materials and equipment, should been introduced into several of the disciplines within the PDL. Such technology also ensures higher productivity.
Consumers are more and less satisfied with the present services of the PDL now should think to start new services and take different types of marketing strategy to get more customers in this competition market of developers.
The real estate industries in Bangladesh are relatively unorganized and suffer number of drawback. Restrictive legislation and lack of transparency in transaction are major impediment to the growth of the real estate sector.
Price of the apartments is such are affordable only by a small section of wealthy population in Bangladesh, although the firm in some case advertise in a way of “opportunity for low income people”. Most of the people of this fortunate group have house of their own in modern city area. Therefore, they do not feel strongly to buy an apartment .this has made the market limited and there exists a very little competition among the buyers.
The finding of the present study confirm the notion that housing needs have been increasing in the Dhaka city which have led to the emergence of companies who are building and marketing apartment houses. Although apartment living is a recent social phenomena people are developing favorable attitudes towards apartment living which is gaining increasing culture acceptance.