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“Effectiveness of Marketing Strategic of NBM Developers Ltd”
Real Estate Sector in Bangladesh: An Overview
Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many.
A good number of real estate companies are working under one umbrella association named ‘Real Estate and Housing Association of Bangladesh’ (REHAB). Almost 361 Companies are at present affiliated with this association, while more than 400 companies are working independently. BTI took a leading role in the formation of the industry association and is one of the founder members of the REHAB.
Real Estate Business: a Positive nation for Bangladesh
Rehab profile and its activities in Real estate Sector
Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to that picture. The ever-increasing urban population is catering an increasing demand for shelter. The right of shelter is a fundamental right, which is ensured by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part of the government of Bangladesh alone to ensure housing for all. Here comes the need of private sector real estate development.
It is a recognized fact that the health of the Real Estate Development Sector is the barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in late seventies. During 1970s there were fewer than 5 companies engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2004 there are about 250 companies engaged in this business.
Formation of REHAB: With the number of companies increasing gradually, various problems concerning the housing sector cropped up requiring early solution. At this stage it was necessary to form a trade association of the Real Estate developers to protect the overall interests of the sector. To strengthen the role of real estate sector Real Estate & Housing Association of Bangladesh (REHAB) was formed with only 11 members in 1991. The objective of REHAB was to promote formal private sector Real Estate Development in Bangladesh.
Present Performance: REHAB is the only trade organization of Real Estate Developers with a current membership of 260 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, 2004 & 2005 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.
Accelerating urbanization has become tremendous problem to face for the country. The present rate of urbanization is 5-6% annually1 which is really alarming. About 25% of Bangladesh is now living in urban areas and 34% will be living by 20151 & 50% by 20252. There is acute shortage of housing supply in all urban areas and it’s increasing with current demand of 600,000 to 800,000 units all over the country. Particularly in Dhaka this demand is estimated at 60,000 units of real estate apartments combined with 200,000 units of replacement plus backlogs1. Dhaka is currently growing very fast compared to other.
Name of the Association: Real Estate &Housing Association of Bangladesh
Year of Establishment: 1991
No. of Member in 1991: 11
No. of Member in 2008 (January): 508
Bangladesh Market: some Key Indicators
Real estate sector in Bangladesh is in a growing situation. From 1994-98, over the last 13 years, Bangladesh real estate sector grew at an average of 3.64% reaching the peak at 3.87% in 1999-00. Though it had a fall in 2000-01, there was recovery in 2001-02. For the last 6 years this sector grew impressively and showed a smooth rising trend again it fall in 2008
The comparative scenario of GDP shows a steady 6% growth for Bangladesh. The real estate experts have expressed the opinion that as GDP of Bangladesh is still below that of other South Asian Countries, Bangladesh has more to grow which can be fostered by the continuous increase in the share and growth of real estate sector in the country. The contribution of real estate and construction in GDP of Bangladesh was 16.20% in 1994-95, which became at 16.69% in 2000-01 and attained 17.30% in 2006-0. Compared to India, Bangladesh real estate sector economy is contributing more to the country’s GDP. But Malaysia – one of the most rapidly developing countries has the share at 15.09% while USA has about 16%. This picture of Malaysia and USA shows that real estate sector can contribute more to country’s GDP. Therefore the real estate sector in Bangladesh has huge scope to grow.
|Real Estate & Construction Share of GDP|
The persistent increase in the real estate sector indicates that real estate activities have been rising which strongly supports more future growth.
A positive notion for Bangladesh Market
The positive trend of the neighboring countries with the global expansion in the real estate sector also shows a growth opportunity. According to the above graph and past record of INDIA & USA we see that the real estate sector market experiences an average rise of 5-10 years if it is started once. In Bangladesh, before 1985 people in Dhaka city never thought to buy an apartment for living. Before 1995 people would have thought twice buying an apartment. But in the last couple of years the interest in apartment buying has increased rapidly. The boom in Bangladesh real estate market took place between 1988-1991. But it faced fall in 1991-1992 gaining rise in 1993-1994. From 1995-1998 there was not so high growth but the market was stable. From 1999 to 2004 it has been growing rapidly caused by huge household demand, lack of enough land, rapid urbanization etc. in Dhaka City.
The present rate of urbanization is 5-6% annually. About 25% of Bangladesh is now living in urban areas and 34% will be living by 2015. Only 40% of the people of Dhaka city have housing facilities with standard or below standard. Thus from the comparative analysis experts assume that according to the trend of the global market & neighboring countries the growth of housing demand will stay for next couple of years more. Main reasons for positive expectation have been presented evidently in the following section.
Reasons for positive expectation
Ø Statistics & studies show that in 2000-2015, urban growth rate has been expected to be at an average of 3.7% for Bangladesh. India – one of the most attractive markets for global real estate is expecting 4.9% growth of urbanization.
Ø Moreover where India is estimated to have 36% people living in urban areas by 2015, Bangladesh is expected to have 34%
Ø Thus in South Asia, Bangladesh holds the second position in terms of urbanization rate & proportion of urban population. This scenario tells that, as India is a rapidly growing real estate market for the world, Bangladesh also may attract more real estate investors and have more growth in this sector.
Ø By 2010, Dhaka is estimated to have about 20 million people that show about 55% estimated growth from 2000. With this amount of people Dhaka is estimated to be the 5th largest city in the world by 2015. This fast urbanization needs enough accommodation and housing supply, which is expected to create a huge market for the real estate sector in Bangladesh.
|Urban growth Rate Projection||Population||Projected Annual Average Growth|
|Source: Making Cities Work, Urban Fact Sheet, USAID|
|Urbanization Data of Bangladesh||(In ‘000)|
|Urban Annual Growth Rate||7.8||5.8||4.7||4.3||3.7||3.0|
|Source: Rural and Urban Development Case Study- Bangladesh, Oxford Policy Management, June 2004|
Rising House rent
- House rent has been increasing in Bangladesh since 1994 at high rate. In 1994 and 1999 the inflation rate in house rent was around 25%. Though in the recent times this inflation has been a little bit lower, still in 2008, statistics shows increase of house rent at about 10% in the country.
- According to the real estate participants, the inflation in the house rent is encouraging to people to buy apartments not bearing the increasing expenditure of house rent.
Source Consumers Association of Bangladesh (CAB) Research Report 2008
Easy and Available Financing:
· Financing the apartment purchase for individual has become more easy and available. In 1952 Bangladesh House Building Finance Corporation (BHBFC) was established as government organization to finance the middle-income household civil servants which was the first housing finance institution in Bangladesh.
· Interest rate is competitive ranging from 14% to 16%. Maximum amount can be financed is BDT 5 million to 6 million with maximum 20 years repayment option, which varies with the different financing institutions. Loans can be taken to buy apartments or for construction purpose in any part of the country.
· Now there are a number of private specialized housing finance institutions, financial institutions and banks, which provide housing, finance facility up to 70% to 80% of the value of the house or apartment.
Inadequate and costly land:
· Researches indicate that only 30% population in Dhaka city has occupied already more than 80% of residential areas with human settlements and supportive infrastructure1
· Economists and real estate experts states it as highly significant and thus land is becoming increasingly inadequate to provide individual housing solutions. Moreover land is quite unavailable in Dhaka at suitable location for individual housing fulfillment.
· For huge demand and inadequacy of land, price of land is very high in the urban area according to the real estate participants.
· This is making more people inclined to build and share apartments.
Targeting the middle class:
· Studies reveal, in Dhaka city only 5% of the population is in high-income group. Thus 45% of the total population falls into the middle-income group and the rest 50% in the low-income group.1
· Economists and real estate participants see the middle-income group as a huge market for the real estate sector. Builders have started building apartments for middle-income class of 600-900 sft.
· The large unsatisfied middle-income class is expected to be boosting market for the real estate business.
Encouraging in Remittance Flow:
· The Government of Bangladesh has declared the foreign remittance inflow through banking sector as tax-free and any purchase of fixed assets by Non Resident Bangladeshis will not require producing any Tax Identification number. It increased remittance inflow in Bangladesh in the recent years.
· According to the economists, non-resident Bangladeshis are vital investors for the real estate sector in Bangladesh, which is continuously supporting it to grow.
· There is hazards customers face in purchasing lands, which encourages them to buy apartments rather than lands.
· Construction & maintenance of buildings require spending huge time and energy, which make the people reluctant from building houses.
· The influence of western culture & housing design is attracting people more to buy apartments
· These reasons also are contributing to the decision of individuals to buy apartments.
Population growth trend and Demand Analysis
Now in Bangladesh the demand for residential real estate unit is rapidly increasing. The current urbanization rate is 5-6% and 50% people will be living in cities by 2025 according to experts. In the Dhaka City from 1991 the urban population density has increased by about 79% to 2004. It was 4795 persons/sq. km in 1991 and 8573 persons/sq. km in 20041. The population growth in Dhaka city is shown below in Graph.
Population is increasing rapidly in Bangladesh. Dhaka – the mega city is in very faster rate in population increase. This rapidly increasing people need more housing facilities. In the above graph it is noticeable that the house rent in Bangladesh in an increasing condition. More and more increase in house rent implies that people would become less interested to stay in rented house and would try or tend to buy own home. This is also increasing the demand of apartments in Bangladesh especially for the middle or upper middle class group of the society.
This huge lift up in the urban density & rush of the people to Dhaka city has created great demand of accommodation and housing services. Moreover the real estate developers have started targeting the middle-income groups in the last few years to sell apartments. As the major portion of the society is in this group the demand has got to be high. According to REHAB there is demand of about 60000 residential units plus 200000 units of backlogs and replacements every year. But REHAB members can supply only 5000 to 6000 units each year. Now in this intense situation of rapidly growing demand the existing number of developers cannot satisfy the current demand. This scenario ensures us a rising demand oriented situation in future as the gap between demand and supply is increasing.
Overview of the Company
NBM DEVELOPERS LIMITED: A HISTORY OF SUCCESS
NBM DEVELOPERS LTD. is one of the leading builders in Bangladesh. A flagship company of the ‘Ideal Group’, it has developers and builders who are well known for quality construction, loyalty and commitment. With the accent always being on style, the group’s projects are specifically designed and today adorn strategic points in the twin cities as projects with uncompromising construction standards and matchless aesthetic beauty. Precisely why the customer base is growing parallel to company’s growth. To build and develop housing projects that accomplishes the dreams of our esteemed customers by providing all the luxurious, modern facilities, amenities and lively environment at very affordable prices.
Purpose of NBM
· To be an optimum business template for the real estate industry.
· Optimize relationships, service and profitability.
· To be the pacesetter in real estate services by exceeding customer expectations.
· Aggressively pursue business through innovation to provide exceptional customer service.
· Build lifetime relationships with our customers and communities.
Mission of NBM
Against the emerging backdrop of Dhaka’s urban outlook and life style, NBM DEVELOPERS LTD Limited’s mission is “to build beautiful homes keeping pace with the changes in taste and needs of modern lifestyle”.
Vision of NBM
“Aspiring for world class living standards and contemporary work places come within reach of all.” We at NBM DEVELOPERS LTD ltd build the future. We expand horizons, link people and organizations, set up new trends, and continually enhance the values entrusted to our care. Our aim is setting up of comfortable and luxurious dwelling spheres that impeccably match world-class infrastructures. We aspire to create establishments that give our customers the joy of owning a paradise. Our true satisfaction comes through a million smiles of our customers we have generated over the years.
The current pace of progress of the organization guarantees newer avenues for the coming future. We as an organization believe in moving forward to attain our ambitious goals while taking care of what we have created in the past. With clear vision and concrete ideologies, converting dreams to reality does not seem too big a feat.
We Believe In
· Serving with integrity
· Conducting ourselves and our business in an honest, ethical, and trustworthy manner
· Treating everyone with care, respect, and fairness
· Providing financial stewardship
· Growing through innovation and creativity
Company Name : NBM
Corporate Office : House No.-37, Road No-7, Sector-3, Uttara, Dhaka.
Business Area : All over Bangladesh
Company Achievement : Recognized as a Class a Company
Contract Number : +8801715811051, +8801913193766, +8801615889901, +88-
Web Address : www.NBMgroups.com
Email Address : email@example.com
Registered with the following:
|Registration Authority||Registration Number|
|Dhaka City Corporation||0454240|
Board of Directors
There are 42 Members in the Board of Directors of NBM. Alhaj Md. Abul Basher, Managing Director as Chairman while A.B.M. Mizanur Rahman as Managing Director & Mohammad Habibur Rahman Miazee and Engr. Didarul Alam (Miru) as Director of Admin & HRM and Marketing respectively. These Corporate Personalities already have tremendous Success in Business due to their Commitment to the nation, Clients, Suppliers. They acknowledged for their honesty, sincerity & hard working life patterns by the society.
Management of NBM
NBM always follows the horizontal management system. Managing Director is the highest position & Directors are the second highest position of this company. Other powerful positions of NBM DEVELOPERS LTD Ltd are Manager & Senior Executive.
Marketing Strategy for NBM
NBM DEVELOPERS LTD Ltd. follows the marketing strategy as
¨ Internal Marketing Strategy
¨ External Marketing Strategy
Advertising Strategy for NBM
Advertising Strategy of NBM DEVELOPERS LTD Ltd is shown below:
¨ Indoor Advertising Strategy
· Radio Add
· TV Add
· Newspaper Add
¨ Outdoor Advertising Strategy
· Light Box
· Mega Sign
Social Responsibility of NBM
NBM is committed to change the society. NBM thinks that an educated person can help to change a society. For that NBM establish a foundation for financial help of education. NBM is trying to establish a school for children. It also provides deep tube well for water in village
Factors customers prefer most to take decision to purchase a flat or plot
Fig: Factors customers prefer most to take decision to purchase a flat or plot.
About 8% of the customers of apartment or plot prefer Brand Name, 60% of the customers prefer Price, 2% of the customers prefer Construction quality and 30% of the customers prefer Location.
Factor motivates customers to purchase a flat or plot.
|To avoid the troubles involve in building a house||30%|
|To live in the centre of the city||60%|
|To live with same class people of the society||10%|
Reason behind to prefer NBM apartments or plots
Fig: Reason behind to prefer NBM apartments or plot
5% of the customers of apartment prefer NBM apartment’s or plots cause of Brand Name, 70%of the customers prefer Quality, and 25% of the customers prefer Reliability
Consumers’ product choice and purchased of NBM flat
Fig: Consumers’ product choise and purchased of NBM flat
80% of the customers of apartment prefer NBM flat, 5%of the customers prefer Shop, and 25% of the customers prefer Commercial space.
Consumers’ purchase of NBM flat on basis of project profile
|This is a NBM product||10|
|Location of the project||55|
|Size of the flat||25|
|Design of the flat||10|
55% of the customers of apartment prefer NBM because this is a NBM product, 25%of the customers prefer Location of the project, 10% of the customers prefer Size of the flat, and 10% of the customers prefer Design of the flat.
Consumers’ thinking about the price of NBM flat
|Not higher in consider of quality||40%|
Fig: Consumers’ thinking about the price of NBM flat
60% of the customers think about the price of NBM flat is higher price, 40%of the customers think not higher in consider of quality, 0%of the customers think price is Reasonable.
NBM are remarkable construction qualities
|Fittings and features||10%|
|Work man ship||0%|
Fig: NBM are remarkable construction qualities
In sense of construction 40%of the customers prefer Construction quality50%of the customers prefer Construction material10% of the customers prefer Fittings and features none of the customers prefer Workman ship
Customer’s satisfaction level regarding their expectation construction qualities
Fig: Customers satisfaction level regarding their expectation construction qualities
90% of the customers are Satisfied according to their expectation construction and 10% of the customers are Moderate level Satisfied.
Remarkable media through which customers come to know about NBM
|Throw the advertisement||60|
|Throw the Personal reference||30|
|Throw the Personal observation||10|
Fig: Remarkable media through which customers come to know about NBM
60% of the customers come to know about NBM Throw the advertisement, 30% of the customers come to know Throw the Personal reference, and 10% of the customers come to know throw the Personal observation
Customer’s satisfaction level regarding NBM marketing system
Fig: Customers satisfaction level regarding NBM Marketing system
40% of the customers are satisfied with the marketing system of NBM, 40%of the customers are Moderate level satisfied and 20% of the customers are satisfied with the marketing system of NBM
Customers satisfaction level regarding NBM promotional activities
Fig: Customers satisfaction level regarding NBM promotional activities
70% of the customers think the promotional activities of NBM are sufficient 20%of the customers think the promotional activities of NBM are Moderate 10% of the customers think the promotional activities of NBM are not sufficient.
1. Customers preference to buy NBM flat for the next time
Fig: Customers preference to buy NBM flat for the next time
In sense of prefer NBM flat to buy for the next time 30% of the customers said yes and 70% of the customers said yes.
Remarkable media through which customers come to know about NBM
Fig: Remarkable media through which customers come to know about NBM
In sense of recommend other to select NBM product 80% of the customers said yes and 20% of the customers said may be.
Customers satisfaction level regarding overall performance of NBM including handover time
Fig: Customers satisfaction level regarding overall performance of NBM including handover time
10% of the customers are extremely satisfied regarding overall performance of NBM including handover time, 70% of the customers are satisfied regarding overall performance of NBM including handover time, and 20% of the customers are Moderate satisfied regarding overall performance of NBM including handover time.\
The following SWOT analysis captures the key strength and weakness within the company, and describes the opportunities and threats facing by NBM.
Ø Strong Brand Image
Ø Strong construction quality maintenance
Ø Strong employee bondage or team work
Ø Well Wastage maintenance
Ø Strong reliability
Ø Proper positioning of work force
Ø Strong communication channel
Ø Availability of instant supply of fittings and feathers.
Ø Insufficient employees.
Ø Lack of marketing promotional activities
Ø Availability of external finance from bank and financial institution.
Ø Governments’ initiative to step up real estate business.
Ø Many market leaders in the market.
Ø Uncertainty or scarcity of utility facilities like- gas, electricity, water
Ø Increasing the price of raw material.
The survey has been done targeting some specific objectives as defined in introduction chapter. Therefore, after getting the outcome, we are now standing in such point from where we can conclude some points based on the costume of the survey. The findings can be summarized as follows:
v The customer always prefer on the quality product.
v Most of the customers prefer To live in the centre of the city
v In respect of quality, the price level of NBM is reasonable.
v Most of the customers prefer NBM Flat,
v All the customers feel NBM follow better construction reasonable price strategy
v Customers think NBM needs to enhance the Marketing system
v Customer’s satisfaction level regarding overall performance of NBM including handover time is satisfactory.
v Most of the customers are satisfied on the construction of NBM according to their expectation construction
v Most of the time NBM is using only prints media for promoting its products.
One of NBM’s strongest points is its efficient Customer Service Department. This department gives personal attention to each client and is known for its prompt, effective action. A warm, friendly atmosphere is created for the client who can make purchase decision at his/her pace without feeling pressurized.
After sales services are also very efficient and sensitive to the customer’s needs. At every stage of construction the customer is informed and his/her decision as regards to the building of the apartment, is respected as much as possible.
The customer service personnel are always open to new, innovative ideas.
Logistical service include repair maintenance facilities such as plumbing and prompt troubleshooting. Permanent maintenance personnel ensure that the apartments are in good condition. NBM is also very conscientious about maintaining the facades of its building and the landscape, in order to up hold its image of being the creators of aesthetically pleasing homes.
Satisfaction of customer
|Promotional strategy||Total hunter||Satisfaction|
Sales of NMB
The aim of sales promotion of NBM is to increase short term sales and increase inshore of web traffic. They used discounts, installment, special offers & bank loan facilities for the customers.
Customers who pay their full payments at a time NBM gives them discount 5-10%.
NBM has installment facilities for those customers who are unable to pay full payment at a time.
· Special Offers:
NBM gives some special offers for their customers in a particular season like summer sell offer, winter sell offer etc.
· Bank Loan Facility:
NBM arrange some Bank loan facilities for their potential customers to buy their products.
Average Price of Apartments of varying sizes in different city areas:
|PRICE IN DIFFERENT CITY AREAS|
|Areas||Apartment size (sft)||Rate tk (Per sft)|
|Taka in lacs|
Mode of payment:
Payment arranged in the following way:
a. One time
v One time: Buyer can pay the price in one time. If he pays the price in one time, he/she will get 10% discount.
v Installment: In case of installment, buyer will get the residual month of project hand over. After Booking, he will pay the initial deposit within seven days. Then he/she will bind to pay the residual amount on the EMI (Equal monthly installment) base.
v Discount: It is a great opportunity for the client because Genetic provide the discount based on down payment. The discount amount is generally big enough than bank interest.
NBM’s products are available at:
¨ Employee: NBM’s has skilled and experienced employees
¨ Management: NBM’s managing board is very much qualified and experienced
¨ Culture: NBM’s background is very much well reputed
¨ Comfort: The employees of NBM’s are very much cordial with the customers and very much friendly to their coordinates
¨ Facilities: The employees of NBM’s are convinced and launch facilities
A study shows that the apartment building companies undertook promotional efforts as a part of their marketing programs. Newspaper and magazines are the media generally used by NBM. The advertisement cost is low, compared to the total cost involved in the business. NBM was found to use different media for advertising, which has shown in Table:
Distribution of the company according to Media used for Advertising
|Media||Percentage of Companies|
|94 %01 %
NBM provides shot-term discount to encourage sale of our product, mainly at the time of fair.
NBM invests sufficient money for advertising in every year such as TV media, newspaper, billboard, popular magazine, etc.
NBM sells their product through Personal selling.
We are trying to build strong customer relationship with the public.
v NBM creates and delivers product elements based on customer requirement.
v NBM designs its process in such a way that lead to fast, dynamic and very effective service delivery and result in satisfied customers.
v As the process of the Real Estate organization is very well designed, it helps a lot to the marketer to do their jobs well, resulting in high productivity and decrease likelihood of service failure.
v In NBM most of the directions comes from Boards of Directors but there are different culture in different department based on their jobs requirement so that everywhere a specific process is highly maintained.
It is a natural instinct to want to target as many people and groups as possible. However, by doing this NBM’s promotional strategy never talk specifically to any one group. NBM’s promotional budget is much more cost effective as they promote to one type of customer and speak directly to them. This allows NBM has to create a highly focused campaign that will directly meet the needs and desires of a specific group. Again, this is call market segmentati dentify the following demographic characteristics of the market.
Age: Middle age to senior age
Income: Higher income level
Gender: Both male and female
Profession: Different types of occupation
Education: Most of the people are higher educated
Marital Status: All people are married
Positioning is a perceptual location. It is where someone’s product or service fits into the marketplace. Effective positioning puts one first in line in the minds of customers. Positioning is a powerful tool that allows creating an image. And image is the outward representation of being who you want to be, doing what you want to do, and having what you want to have.
That is why it is so important for entrepreneurs to transform their passion into a market position. If you do not define your product or service, a competitor will do it for you. Your position in the market place evolves from the defining characteristics of your product.
The primary elements of positioning are:
Pricing. As NBM’s plots, flats, shops are luxury items, so that they fix the price considering customers devotion.
Quality. NBM is very much conscious about quality control. They always try to maintain quality without considering price.
Service. Do you offer the benefit of customer service and support? Is your product customized and personalized?
Distribution. How do customers obtain your product? The channel or distribution is part of positioning.
Packaging. Packaging makes a strong statement. Make sure it is delivering the message you intend.
Decision and payment methods Pricing
Fixed Price Concept:
To avoid all kinds of embarrassing situation between the Company and purchaser NBM follows the fixed price concept. In addition, it is more ethical in the field of unconfined real estate business in Bangladesh. For a certain period, the price is fixed. It may change after a period depending on the cost of construction and land value. As per price schedule, there are some options of discount based on down payment.
Fixing the price of the property
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 three different methods:
(i) Land price + construction cost + margin is the widely used method of pricing followed by the real estate firms in Dhaka city. About 75% of the firms are using this pricing policy. It is to note here that land and construction cost has calculated at cost price. That is why, the firm charges higher margin under this method and that ranges from 75% to 100%.
(ii) 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 price of apartment varies with its size. At the moment firms using this method, they are selling the apartments @ Tk. 3500-6000 per square feet. This method is popularity and followed by about 17% of the real estate firms. Under this method, firms can face the competitive situation effectively.
(iii) Price escalation with land and construction cost is a method followed by only 8% of the firms in Dhaka city. In this method, the firm charges relatively low percentage of profit.
Land price increased tremendously in Dhaka city. The following table 16 exhibits the increased rate of land price during 1974, 1990 and 1997 in different areas of Dhaka city.
Another study shows that a number of considerations followed by the companies in pricing apartment houses. 80% of the companies determine the price of apartments based on the quality of construction while 55% of the companies determine their price based on location of the apartment building. 40% of the companies originate to consider demand in fixing price. It has reported that 95% of the companies followed mark up policy in determining price while 15% of the companies pricing policy based on companies pricing and 10% of the companies followed a pricing method according to convenience. It has observed that prices of apartments of similar size in same locality vary due to the variation of quality of construction.
Though NMB Developers Ltd. is performing well but it has some crucial areas to improve their promotional activities which are prescribed below:
· NBM Developers brochure is too short that is why customers can not get proper knowledge about the company & company products. NBM should make it’s corporate brochure in more detail.
· The management of NBM should regularly administer promotional research activities in order to keep a regular track of satisfaction levels. Regular research should also be conducted to find out customer expectations about various service aspects.
· NBM gives the best quality of products & services to their customers for that reason the cost of their products become automatically very high, which is unbearable for some customers. So, they should make their product price reasonable & it may help to capture maximum customers.
· NBM is a big & profitable company but the social responsibility or normal activity is very narrow in country if they emphasize their activity in Bangladesh it is good for there increasing market growth rate.
· NBM should focus more on existing customers in order to build strong & loyal relationship with them as satisfied customer more aptly or certainly recommends the hospitals to friends & relative thus the power of relationship will foster positive word of mouth communication & will attract new customers at a lower cost.
· Individual Attention should be given to customers in order to better understand their needs & better satisfy them.
· NBM should pursues on aggressive advertising camping in order to build up a strong image & reputation among potential customers in this contest.