Apartment Marketing in Dhaka City By Urban Design & Development

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executive Summary
Apartment marketing in Dhaka city is relatively. a new business. This study aligned
at analyzing the apartment industry to give inputs to the marketing plan for
Urban Design and Development Ltd. Keeping this in view, all developers are
listed and a sample of, 10 from them is interviewed. The major findings of the
study include.
construction
and 37% of the future projects are between 1500-2000 sft in size. 80% of the
respondents recognize the changing societal concerns attitudes and life style
as the most important driving forces in the industry.
To be successful in this emerging
apartment industry, UDDL need to pay attention to the following guidelines.
1. UDDL should
try to win the race for industry leadership by employing a bold creative
entrepreneurial strategy. Because, till, today this emerging apartment industry
has no established rules of game. A leading firm like UDDL with powerful
strategy can shape the rules and become the industry leader.
2. UDDL needs
to push hard the building technology, quality of construction and. attractive
performance features.
3. Try to
capture the advantage of disorganized industry associated with 111ore models,
better styling and customer orientation.
4. UDDL should
search out new customer group and new geographical areas to enter. This has
already been taken by the UDDL is the only develop who extended its formal
marketing programs overseas.
5. TDDI,,
should use price-cuts (promotional measure) in special events to a ice-sensitive
buyers into the market. advertising strategy has already well accepted to the
customers. Now, it should enhance its marketing force with more skill on
relationship marketing. Because in case of such a high involvement product, it
is imperative for the marketing forces -to come closer to the customer and help
them in decision-making.
Part One
Introduction
Apartment Marketing in Dhaka City
Industry and Competitive Analysis
1.0 INTRODUCTION
1.1 Background and Rationale
Rousing is a prime need ranked
equally with food and clothing. This very basic provides people with the
measure of safety and security. With emergence of Dhaka as the capital of
independent Bangladesh,
there occurred a rapid rise its population within a very short time, as Dhaka became the heart of increasing activities of
various types. The annual population growth rate in Dhaka
is 7%, which is about 30% of the country’s total urban population. This rapid
increase in population quickly resulted in scarcity of open spaces in the
important residential areas of Dhaka. This
problem has further assumed serious magnitude by hazards of purchasing land and
constructing buildings etc. For these reasons, people are switching to the
developers to get well constructed ready-made apartments. The informal
apartment immediately turned into a formal industry.
The apartment market, being an
emerging industry, is one in the early formative stage. Most of the builders
are in a start up mode, adding people, acquiring facilities, gearing up sales,
trying to broaden customer coverage and gain buyer acceptance. As an emerging
industry, it present~ strategy makers with some unique challenges.

  • Entry barriers tend to be
    relatively low (other than capital requirement). So additional start up
    companies and large outsiders are entering especially when it has become
    more evident that the industry’s future is promising.
  • Firms have little hard
    information about competitors, how fast products are gaining buyer
    acceptance, and users experiences with the product.
  • Since all buyers are one-time
    users, the marketing task is to induce initial purchase and over conic
    customer concerns about product factices, quality reliability and
    conflicting climes of rival firms. Custor0ers are needed to be assisted in
    decision making reducing cognitive dissonance.

Here the most critical issues that
firms confront is what market segment & and competitive advantage to go
after to secure a leading industry position. Urban Design and Development Ltd.
(UDDL) is one of distinguished companies in this sector aiming to become the
prime real estate company in the country. So, the need arouse to analyze the
marketing strategies objectives and intents of these companies,
1.2 Objectives of the Study
Considering these matters in view this study broadly
alms at analyzing the Apartment \Industry of Dhaka
city in terms of competitors to, provide inputs for an exhaustive Marketing
Plan of UDDL.
To facilitate achieving the broad
objective as cited above this study aims to attain following specific
operational, objectives.
1.3 Types and sources of Information
Each, research needs some unique
types of information, from different sources. Following table summarizes both
the types and sources of information thatare mostly required in connection with
the specific objectives of the study. In a nutshell, two types of sources are
used.
1. Primary
source
:
The include Questionnaire, Interview
with the Builders and observations.
2. Secondary
information:
Secondary information is collected
from REHAB (Real Estate and Housing Association of Bangladesh), by reviewing
books, reports, newspaper, journals, magazines and other relevant documents.
1.4
Sampling
Design and Methodology
Population
Population refers to any group of
people or objects which are. similar in one or more ways and which’s the
subjects of the study in a particular survey.
The population of this SUIVC,,
consists 01’aparfinent builders and the customer groups. The reason to include.
builders in the population is that they ‘are the sellers of’ the apartment. So
they can provide information required for the study. Besides, customers are the
ultimate beneficiaries of the market. Their desires are of prime import take
than any other group, Sam ling Unit. Each individual apartment builder is the
sampling unit.
Sample Element
It is Important who’ll to interview.
Marketing Manager of the builder company is interviewed in most cases. In case
of unavailability of the Marketing Manager, any manager of the company
specially who is informed of the sales matter are interviewed. Sampling Extent.
The
extent of the study With the Dhaka Metropolitan City. Sampling Frame:
A partial list of the builders was
available from REHAB. A complete list is prepared by collecting information
from the relevant source.
Sampling Method:
10 apartment builders out of listed
250 are interviewed. The principle was that as many builders as possible would
be reached. The rationale is that the industry is widely heterogeneous. To have
perfect information, it need to reach everyone or as many as possible. Thus the
sampling method could be termed as non- probability purposive sampling.
Questionnaire Checklists:
A structured questionnaire is used in
tapping the information from the developers. Each sample developer is given a
questionnaire, assisted fill it up and collected.
Interview
Top en developers are interview
extensively. They have provided with the important industry aspects and issues.
In interview, a checklist used.
Content Analysis, Review of A Nicks
In case of analyzing secondary
information, the method of content analysis is done. Advertisements given by
the developers. In the newspaper are thoroughly reviewed. This mostly helped in
listing developers.
Non-participatory Observation
Apart from the above tools, I have
closely observed the motions and functions of the developers. Specially while
interviewing, I tired to keep my eyes on the untold matters regarding the
queries. .5 Scope of the study
Apartment marketing is a relatively
new field in business arena. There are many dimensions of studying this
industry. Considering my project in view, I was more concerned about the supply
side i.e. the apartment builders, Especially, I have confined myself in the
conceptual framework on, industry analysis. Thus, the other related issues are
arbitrarily ignored.
1.6 Literature Review and Working
Definitions
In general, the problem of housing in
urban area received a tremendous response from researchers of many discipline,,
especially statistician, architects, planners, geographers, demographers and
engineers. Various, aspects of housing problems including housing finance and
affordability and role of different sectors are addressed. Most of these studies
relate to Dhaka with a few exceptions.
Despite, studies specially of apartment housing are very little. Only a few
entries were found (please see references). Moreover, most of these entries are
full of data where sources are not acknowledged.
Following operational definitions are used in this study.
1. Apartment: One or more rooms including
a kitchen and bathroom
especially,
one such set in a building.
2. Apartment
Industry : Group of firms who are building apartments and selling them commercially.
3. Customer:
The buyers of apartment.
4. Competitor
Number of builder in apartment market who are, attempting
to increase their profits at the expense of their rivals
5. Turnover:
The4otal amount of sales made by a builder over a year.
6. Industry
Size (in terms of competitors): Total number of builders working in the apartment industry.
7. Industry
Size (in terms of volume): Total amount of outlays in the apartment industry.
8. Industry
growth (in terms of competitors) : Industry Growth (in terms   competitors): Yearly rate of increase
in the total number of builders operating
in the apartment industry.
9. Industry
Growth (in terms of volume): Yearly rate, of increase in the total amount of outlays in the
apartment industry.
10. Apartment
Facilities / Utilities: The attributes of the apartment that provide satisfaction to the customers.
11. Market
Demand: The number of apartment demanded, by the   customers in a given period.
12. Market
Share: The fraction ‘of the apartment industries:output   accounted for by an individual builder or group of
builder.
MS= (Sales of a builder / total
industry sales)* 100
Where MS is market share of an
individual Firm-‘s MS=(Sales in particular zone / Total industry sales)* 100
Where MS is market share of a specific Zone.
13. Income
Group-1 : Families having income more than 30,000/~ Tk per
month.
14. Income
Group-2: Families having income more than 25,000/- Tk but less than or equal to 30,000/- Tk
per month.
15. Income
Group-1: Families having more than or e(Itial to 17,000/- Tk.   bill less than or equal to 25,000/-
Tk. per month.
16. Income
Group- 4: Families having income more than 5,0001- Tk but less than
17000 Tk per month.
17. Family:
Any group of people related by blood or marriage specially   parents and the children.
18. Family
Income: Family income refers to, husband/wife/sons/daughters
income that will be the co-applicant (if any)
or the guarantor if the applicant needs so.
19. Target
Customers: Individuals Who are willing and able to purchase apartments form the builders.
20. Builder
/ Developer: A firm that constructs and sells apartments on a commercial basis.
21. Zone:
Specific geographic area in Dhaka
Metropolitan City.
22. Organization:
Here organization refers to the companies institutions   corporate bodies,
1.7 Benefits of the Study
This study will benefit UDDL in the
following manner :
LTDDL will have a comprehensive
understanding of the apartment industry position.
Help UDDL to minimize risk and
replace guess work with facts. Enable UDDL to make long-term marketing
strategies and plans.
Part Two
Organization
2.0 Urban Design and Development Ltd.
2.1 The Story in Retrospect
The history of the Urban Design and
Development Ltd. dates back to 1995 w1len c founder of the organization, Mr.
Nazim Uddin Ahmed made a fresh start with only a small premise in Dhanmondi, Dhaka. With a modest inception in June 1995, UDDL  has successfully handed over 32 (thirty two)
Projects to its valued clients, 12 (twelve) projects are in under construction
only 4 employees at the starting time, to dav 156 employees are workroom directive
the organization.
2.2 UDDI.’s Mission, Vision and Objectives
UDDL’s Mission
Organization mission refers
management’s customized answer to the question “What is our business and
what will it be? A mission statement broadly outlines the organization’s future
direction are serves as a guidelines the organization’s future direction and
serves as a guiding concept, for what the organization is do and to become.
Vision of UDDL:
Vision is the long take i.e over the next
5 to 10 years management expectation of an organization’s position. The vision
of UDDL reflects in the MD’s following statement.
It’ there is one characteristic that
has typified the 1JDDL approach. 11 !, VISION, something shared by all of our
team members. We have a VISION to be the best at what we do. A VISION to make
the best of our natural and human resources. A vision to establish out
organization and Our country as a respected and valued regional presence”
DL OBJECTIVES

  • To anticipate our customer’s
    requirements and provide them with the products which meet their market,
    quality and service need. *
  • Achieve a 20% return equity,
  • Achieve an act sales growth rate
    of 106/o per year.

2.3 Management and Human Resource’s
The Organization clearly has dynamic
and inspired management. Furthermore menagerie emphasizes on expend. once and
professionalism. As a result, the Group has a highly qualified and well-trained
staff in each department The human resource department is responsible for
providing policy guidelines and systems to facilitate the recruitment
development and maintenance of a high achieving work force.
Management:
Managing Director Nazim. Uddin Ahmed, B.Sc. in Mechanical Engineering
and A from IBA, University
of Dhaka. An entrepreneur
having in-depth exposure in Real Estate Sector.
Director M.
Syeduzzaman, Master in Accounting, University
of Dhaka. Exposure of 20
years in Real Estate Sector.
Human Resources
UDDL Puts the Cutest emphasis ‘n the
selection of *  it  Hunan
resources. Enclose have been screened,,. ‘from different professionals &
academic back-rounds. Engineering, Accounting, Finance, MBA etc. UDDL plans to
develop skills & professionalism among. its 21st century and takes to the,
cha Jolene of the corn fill-I competitive environment.
The whole operation of’ the’ company
is pertained by Eight separate Finance department is headed by Finance Director
Mr. M, Syeduzyanian. I le i,~ supported by a Senior Executive who is a MBA
(Finance) and 3 other Accountably, Executive. Marketing department is headed by
Mr. I lasib NtIAWL111~111 Who ILIS It decade long experience in marketing. He
is assisted by oric Senior Executive and six Executives in Mar’k-eting. Mr. M.
Touhiduzzaman, Manager, Administrator aricl Purchase look after all supply,
purchase and administrative issues. En-IneerITIO Department is lieided by
Frigineer Monjurtil Alisin looks after all eri,Jnecri[W personnel utilizing his
22 years construction experience. Sitara Abedin, MBA is heading the HR
Department. Coordination Department is headed by Mr. Hanif Shamim, Land
Development Department is headed by Mr. Reza All Mahmood and finally Public
Relation Department is headed by Mr. Raisul Islam.
Associated Support Hands
Architectural Consultant Architect
Saiful Hafiz (H-055), Srishti Upadeshta, 13/1, Gaus Nagar, New Eskaton Road,
Dhaka.
Structural Consultant : Engineer Md. MOnavem Hossain, HOUSC # 50, Road t.rl 4 A.
,Dhanmondl R/A.. Dhaka,
Banker Mercantile Bank Limited and
Standzird Chartered Bank, Dhanmondl Branch, Dhaka.
Legal Adviser Advocate M. A. Wadud,
The Law Society_ Ispahani Building, Motijheel C/A, Dhaka.
2A Towards Diversification
UDDL, is also diversifying its
business following a strategy of combination diversification strategy. Is has
entered into IT Industry and also in  Bulls
Following is a glance at the diversified operations of UDDL.
a. Urban
Technologies Ltd. (UTL)
UTL is a public limited company
incorporated in Joint Stock Company. Bangladesh on September 3, 1998. Urban Technologies
Ltd. set up Aptech Computer Education, Old Dhaka Center under a Franchisee Agreement with
Aptech Ltd. fridia, in 1999. The main aspect of this organization is to provide
IT Training and ECILICatioll. In last 5 years UTL successfully provides
education to around 2200 students. The main product of this institute is 1, 2
and 3 years diploma in Software engineering.
b. Orbit
Technologies Ltd. (OTL)
OTL is a public limited company
incorporated in Bangladesh
on January 216. 2001. UDDL is the principal sponsor of the company that has a
75% share of’ tile total  equity. OTI, Is
I)Jn- set up for importing lift from Italy
and Soilth Korea.
They I . Histall and commission lift in different apartment project.
3.0 PERFORMANCE OF UDDL,
UDDL has undertaken a total of 47
(Forty Seven) apartment projects from 1995. Out of them 32 (Thirty two) have
been already handed over, 12 (twelve) are Under construction and 3 (three) has
been signed. The company has so far sold 488 apartments in various projects.
The most important feature of the UDDL projects are that they are basically
conc.entrate on Dhanmondi region and flat size ranged from 1200 -1750 sft.
The
forthcoming table summarizes the status of the projects, of SHL.
UDDL Project Summary
Total
Number of Projects . 47
Number
of Completed Projects   32
Total
Units Available   613
Total
Sold 488
Price
Range   25.00
– 45.00 Lacs
Size Range 1200
sft – 1750 sft
Geographical
Coverage   Dhanmondi,
Gulshan
Banani, Zikatola,
Eskaton, Green,
Road.
Customer Range Middle
Class
Forthcoming Project
Urban Retreat:
At House 9 13, Road H 13/A, Dhanmondi R/A. The construction will be started in
March 2005. Apartments sizes are 1500 sft. to 3650 sft. (approx.)
Urban Regal :
At Plot 9 23, Road 9 18, Block 9 J, Banani R/A. The construction will be
started in June 2005. Apartments sizes are 1500 sft. to 1700 sft. (approx)
Urban Lodge :
At Plot# 69/1, Road # 7/A, Dhanmondi R/A. The construction Will be started in
April 2005, Apartments size is 1450 sft (approx.)
3.20 Product Policies of UIDDL
In
designing product policy, two options are I given.
I . General Facilities and
Specifications.
2. Optional Facilities.
In
general facilities following are included:
Main
features and amenities:

  • * Super
    Structure RCC framed
    structure
  • * Walls Hollow brick for External and Solid
    Brick for Internal
  • Walls.
  • Wall Paints Internal : Plastic paint of soothing
    colours.
  • External: Snowcem.
  • Floor Fu Wang tiles in all roonis.

External Door Decorative door of
teak. with brass fittings, standard lock brass door- knocker, check viewer and
door chain.
Highlights of Products
Policy,
* Colored Distempered Walls.
False ceiling in all toilets. Latest
electrical facilities Modem Lift
* Generator for Electricity back tip
* Car Parking
* Security and Communication.
* International Doors Flush door with French polish
* Door
Locks Standard qtialitv mortise lock
in all intemal doors except
kitchen,
maid’s room mid maids toilet,
Windows
SUding alurninum frames with tinted glass and mosquito net
* Safety
Grills   Standard – grill in windows and
verandas,
* TV line concealed dish antenna line in living room and master bed
room of each apartment.
* Intercom
Intercom connection to dining room and master bed room.
* Generator Emergency Generator coverIM4
-Two Emergency Light
connection
-Lift
* Connection All bed rooms and living room.
* Electrical Fittings Imported good quality switches and
sockets
-Local best quality
decorative light-fittings.
* Water Supply Underground water reservoir with lifting PLIMP
-Water supply,
connection from WASA.
* Sewerage Sewerage system planned for long term requirement.
* Electricity Meter Separate electricity meter for each
apartment.
* Wiring
System Concealed wiring for all electrical
and telephone lines.
Kitchen
* Imported tile for wall and floor.
* Designed marble worktop
* Stainless steel sink
* Gas connection for double- ubmer
cooker.
13 Power
outlets to nm electrical gadgets (Mixer, Microwave oven etc.) El Suitably
located exhaust fan.
Toilets
* Imported tile for wall and floor.
* Imported basin, commode etc.
* Marble top basin counter in master
bath.
* Imported Bathtub with hand shower will
be provided in master bath -with a geyser.
* Large
size inure with decorative ferine.
* Best quality local glass tray, towel
rail, head shower, toilet paper holder and porcelain soap case in all the
toilets.
Following
optional facilities could be provided on additional payments.
a. Wring
complete with jack pins and sockets
g. Extra
doors/ partition etc.
b. Fancy
fixtures and luminaries.
h. Curtain
rail/ p~lmets.
c. Shower
tray/Bath tub in toilets.
i. Extra
door locks.
d. Separate line for hot old water in
toilets & kitchen.
j. Cabinets in Kitchen and rooms.
C. Geysers
(Electrical) injoilets and kitchen.
k. Extra
2 pin / 3 pin sockets and cji~
3.3 Sel1ing policies on UDDL
1. Application for allotment of apartments
will be received in the prescribed form to be accompanied by reservation money.
2. Allotment will be made on “first
come first serve” basis. The Allotment Letter” will be issued by
Urban Design and Development Ltd. confirming the allotment of specific
apartment to the applicant.
3. Bangladeshi residing abroad may choose
to make payments in equivalent frill currency by TT remittance or by sending
“Bank Draft” in flavor of Urban Des1211 and Development Ltd.
conversion of Foreign currency will be made as I)revale it exchange rate in the
Bank on the day of receipt.
4. All payments including. reservation
money, installments, cost of additional works etc. will be received in the
form’ of “Pay Order” or Bank Di,1111″ infavolir of  Urban Design and Development Ltd.
5. The “Deed of Agreement” will
be executed between’ the allotted (buyer of the apartment) and Urban Design and
Development Ltd., in respect of specifications, amenities facilities etc. as
per agreed terms as well as transfer, registration etc ()I’ the apartment in
the name of the allotted in order to safeguard the interest of’ the buyer.
6. Each payment will be accorded by Money
Receipt.
Highlights of Sales Policy
Highlight of Sales Policy
* First
come first serve.
* Payment
on cash/ Bank Draft/ PO
* 5%
Discount on payment of 100% of the price during reservation.
* Project
competition by 24 months.
* Common
facilities of owners.
* Special
Telephone Connection on the occasion of overseas market.
1. To faci lities the delivery of
apartments in time, the allottee shall make payment of the installments as per
schedule to be agreed upon by theallottee at the tillic, of reservation of the
apartment.
2. For any reason what so ever if the
allottee desires not to buy the apartment or change ‘to other options, he or
she has to make a formal request in writing to Urban Design and Development
Ltd. within 15 days from the date of the allotment. In such event, the
applicant will get 100% refund of the deposited reservation money. In case the
buyer intends to cancel the allotment after 15 daysbutwithin90 days from the
date -of allotment the reservation. money will also be refunded after 511,0
deduction against “Processing charges” However, 110 refund can be
made if the buyer cancels or surrenders the allotment after 90 (lays.
3. Connection fees / charges for utilities
e.g. electricity, water, gas, sewerage and other related expenses are not
included within the apartment prices. tJihan Design and Development Ltd. will
make such payments direct to the concerned authorities on behalf of the
customer and the same will be borne by the customer, on pro-rata basis at
actual.
4. Minor changes in the design,
specification or layout may be~ made by L.Jibmi Design and Development Ltd. due
to some unavoidable reasons for the best interest of the buyers.
5. The physical possession of the
apartment on completion, shall be handed over to the allottee within 24 months
of full payment of installments, dues and charges.
6. The allottee will pay stamp duties
documentation charges and other miscellaneous expenses likely to be incurred in
connection with the registration of “Deed of Agreement” Only actual
costs shall be charged.
7. After taking over possession of the
apartment the allottee shall not after the structure, lay-out etc. of the
building. However, for any reasonable cause, if “such alteration is n needed,
the buyer has to-consult Urban Design and Development Ltd. Otherwise the same
will be done at the sole responsibility of the buyer.
8. Urban Design and Development. Ltd. will
hanclover the possession of the allotted apartment to its buyer within
scheduled time unless the project is affected by circumstances beyond control
of the Company e.g. act of. God, natural calamities political and other
disturbances.
9. For any reason beyond control if Urban
Design and Development Ltd. compelled to abandon the projects, the reservation
money and installments so paid as shall not be entitled to any compensation.
10. In the event of non-payment of
installments by the allotted in spite of rennin and final notice, Urban Design
and Development Ltd. may cancel the allotment.
11. After handing over possession of the
apartment to its owner, the mainstream and management of general affirms of the
apartment project will be locked after by the Apartment ‘Owner’s Co-operative
Society. The expenses of the will be met from COMMON SERVICES FUND of the
society to he Initial]\ contributed by each allottee to the tune, of Tk.
50,000.00 (Fifty Thousand) only.
ail able fit the event of”
payment of 100’ ‘ of’ the
12. Discount:
5% discounts are av price during
reservation.
13. Loan Facility: Urban Design and
Development Ltd. may arrange loan facilities from any loan-giving agency on
behalf of the allottee. The amount of loan will be decided as per rules of the
respective -loan-giving agency.
14. Reservation Money 25% of the price of
tile apartment and parking to  paid at
the time of booking allotment.
15. Mode of Payment The balance portion of
the price (after deduction of reservation money) shall be paid in eight
quarterly equal installments.
4.0 Intern’s Observation
UUDDL is a leading real estate
company of the country. In the whole period of my internship at UDDL. I got
opportunities to look into the organization from different aspects. Formal
discussion with the management/ Executive as well as informal talks with them
facilitated to know about the internal dynamics and external performance of the
company. All those observation and experiences are combined in the two set
tools.
1. A SWOT analysis of UDDL
2.
NTER instruments application.
4.1
SW T Analysis of UDDL
SWOT
states for strength, weakness, opportunity and
threat .
Each
items of SWOT are discussed in detail,
4.1.1 Strengths
Exceptional quality control:
The quality system of the company is
very effective. Their high quality standard call match only a few existing
company in Bangladesh.
Super design capability:
Extensive time and effort to in
designing the apartments. A need assessment survey of the target regarding
design was conducted and the -key features
These features were incorporated in
the design. The company’s apartment having better needs satisfying capability.
Well thought by buyers: UDDL is
maintaining a very good reputation in the market, They have a well-proven track
record. So good-will of the company help them to sell ihe products.
Professional Promotional Campaign
Professional Promotional Campaign:
Urban Design has executed the promotional campaign with total professional
ISTII and great fineness. This is evident from the extremely positive response
from the valued customers.
SWOT Analysis
1.
Exceptional Quality Control. 1. Some Additional Customers U-Foup
2.
Superior Design Capability  2. Enter New
Market
3.
Product Innovation Skills   3. Vertical
Integration
4.
Well thought of by buyers 4. Faster
Market Growth
5.
Professional Promotional 5. Favorable
Demographic Change
Campaign
6.
Proven management
7.
Background Integration
8.
Company Image
9.
Financial Resources Weaknesses   Threats
I
High Overall Unit Cost I .
Vulnerability, to recession and
2.
No TV Campaign Business Cycle.
3.
Average Market Skills ‘2. ChangingBuyer
neeas ana kaske
3. Enter of Jower cost foreign
competitions (Singapore, Korea).
4. Entry of new Real estate companies.
5. Growing Bargaining Power of the
Customer.
Efficient Management:
They are applying managerial tools
and Techniques to management their pr middle and line managers, they lined well
qualified having a proven track record, specially the marketing department is
much stronger and efficient than any other competitors.
4.1.2 Opportunities
Save additional customer group Currently
they are serving the whole market. ‘Their target groups the elite class, uppci
middle class and Non president Bangladeshi (NRR). Rut they have opportLIt1ItN
to serve the middle income class.
Enter new market,:
They
also have opportunities in other type of construction business.
Vertical integration:
They have ample opportunity to
integrate backward thus ensuring quality and tiniely supply materials.
Faster market Growth:
Real estate business is in growth and
growth stage respectively. Because of the current policy of the government and
the globalization of the economy the growth potential is very high,
4.1.3 Weakness:
Higher overall unit cost.
They have undertaken visions projects
at a, time, so overheat  &cost is
much higher than their competitions. Their strict, development of latest
technology and failure to maintain specific, time frame are contributing to the
high unit cost of the apartment than the competitor. So they are in cost
disadvantageous position.
4.1.4: Threats
Vulnerability to recession and business:
Apartment itself is a high price
item. So market demand will drastically fall during the period of recession. Hartal
and other turmoil will also damage the darned
Seriously.
Changing buyers need and taste: In
Bangladesh demographic and social changes are taking’ place fast, with the\advancement
of the communication technology the foreign culture and the latest style of the
developed country influencing the wants and taste of the customers.
Entry of lower cost foreign competitor: Because of the growth,. potential and attractiveness
of the -market in Bangladesh,
Singapore and Korea
firm ate entering into Bangladesh Market with better expertise and technology.
Entry of new real estate company:
A lot of other construction firms are
now interested in real estate business. A number of joint venture companies are
forming up. All these may result in too much of competitions and market
saturation.
Growing Bargaining Power of the Customers:
As the number of the builders are
coming to the market, customers are getting more importance. Thus they are
generating a higher bargaining power.
4.2 MER Instrument,
Apart from SWOT analysis, I specially
tried to assess the effectiveness of marketing efforts of the, company using
Marketing Effectiveness Rating (MER) Instrument originally developed by Philip
Kotler, one of the world’s leading authors in marketing. Here 15’items are
assessed those are broadly categorized into five groups namely customer
philosophy, integrated marketing origination, adequate mark-evilly, information,
strategic orientation and operational efficiency. After assessment UDDI is
ranked a FAFRLY GOOD position.
Part Three
The Competitor
5.0 COMPETITION NNALYSIS
Studying the actions and behaviors of
close competitors Is an essential part. Unless.”‘, a company pays
attention to what coinheritor~ are doing; it ends (ip flying Hind to battle.
The detective work tedious and time consuming since the information comes in
bits and pieces from many sources. Despite, it is task worth doing well.
envelopers; are competing locally based on the Dhaka Metropolitan
City  strategic intent of the developers is to
maintain their own position. They focus N on market niche. Each developer has a
specific group of sustainers.
Dhaka
City)
Strength Position A
combination of offense and Defense
Competitive Strategy Mostly focusing on Market Niche.
A part from the above characteristics
of the competition, following finding are drawn on competitors specially their
marketing efforts.
Marketing /Selling Policies of the
Competitors:
Sample developers have responded that
100% of the companies took earnest 111011c\ along with the application for an
allotment of the apartment. 10011/0 of the company~ mentioned that the amount
for the apartment would have to be paid in installments but the number of such
installments varies from company to company. The number of installments ranges
from 3 to 8. These are in most cases (80%): quarterly Instilments. 72% of the
companies reported that if the allottee made delay in payment of any
installment beyond the due date the allotted will be liable to, pay a delay
charge of’ 2%-3% per 30 days on each such installments delayed. The other 28%
reported that because of the nature of the product and long term relationship
with the customer,
such delay A’s finally ignored.
9011/0 companies which the apartment building has been
constructed is registered in the name company under the cornpones Act 19 t3. it
has also been reported that if the any apartment wants to transfer the
ownership, it has to be done accordion to provisions laid down in the Companies
Act. 85% of’ the companies indicated that the apartment would be handed over to
the allotted after he had paid the price in full. 85~~o of the companies offer
a discount varying from 2%-8% if the allotted pays the full price in one
installment. 66% of the companies reported that if the payment of final installment
is delayed by 60% days, company shall have height to circle  allotment.
Pricing of Apartment Houses:
Determining the price of the
apartments is the most ‘important event to any developer, Because pricing
higher than the competitors in the same zon~ may detract the ,customer and
eventually  Of the firms would decrease,
On the other hand lower pricing could result in less profit and sometimes
customer. The survey findings denote that 80% of the corruptness determine the
price of apartments on the basis of the quality of construction while 55% of, the
companies determine their price on the basis of location of the apartment
building. 40% of the companies were found to take demand in to account in
fixing in price. It has been reported that 95% of the companies follow6d mark
up policy in determining price   15% of the companies pricing policy were based
on competitors pricing and 10% of the companies followed a pricing method
according to convenience. It has been observed that prices of apartments of
similar size in same locality vary due to the variation of quality of
construction. The following table size in same locality very due to the
variation of quality of construction. The following table shows the current
average price setsquare foot of apartments located in different city areas.
Marketing and Promotion:
Developers are promoting their
apartments utilizing a number of promotional tools. Newspaper advertising, and
hoarding are the most common and frequent tool of, promotion (100% and 90%
respectively). From the survey, it is revealed that personal selling is also
another most important (60)% tool for prompting their business.
Advertising Media %
Daily Newspaper 100,
Weekly/monthly, Magazines 80
Advertising Budget and Market Research
Around 30% o the companies had an
annual advertising budget between Tk. 3-5 Lacs while in case of 45% companies
it was less than Tk. 2 Lac. It was also found that 75% of the companies
conducted market research and feasibility study prior to entering the market
and also initiating any new prqject.
Structural and Architectural Design:
In most cases, (80%) both the architectural structural designs are done by the
other consulting firms. Some of the (20%) have diversified their business
having a des firm also e.g. Suvastu, Building for Future. Sheltec, BTL Only a
few such as Excelle 11″
Builders. R.M. Builders and Concord have done the
design activity of commercial project by foreign consultants.
Apartment Features.
Apartment feature are more or less
Standardized in line with the geographical zone and size. Specially, the high
price apartments (price 50 Lacs and above) have some optional features and
fittings. Here the most important matter is that only those offer  nuni0er of units (more than 50) H) a
location, they provide some commune features like prayer room, kid’,s school,
Medicare shop, stat’lonery shop etc.
6.0 KEY SUCCESS FACTOR IN THE INDUSTRY
Key Success Factors (KSFs) are the
major determinants of competitive success in ariv industry. Identifying  KSFs is a top- priority strategic
consideration. At most KSFs can as the cornerstones for building a company’s
strategy. Companies frequently win competitive advantage by concentrating on
being distinctively better than the competing firs in one or more of the
industry KSFs.
Only ten (10) leading companies
namely, Advanced Development Technologies Eastern Housing Ltd. Amin Mohammad
Foundation, BTl, Bashati Contortion Hamid Real Estate, Ba~ Developments,
Property Development, Concord
and Sheeted have identified the following KSFs.
Key Success Factors In Dhaka Apartment Market as Identified by the Builders.
I Technology:
2. Building
Quality Building
Convenient Locations of the
11’rojects.
Adequate Skilled Labor
Low-cost Design and Engineering
i– Low-cost land.
3. Distribution
4. Marketing
Well trained Sales F,orce
Dependable Service/ Technology
Assistance
Attractive and information Sales
presentation
Customer Credibility
5. Skills Superior Design Experience
Quality control know-how
‘Professional and Advertisements.
6. Organization
7. Other
Access
to Financial Capital.
All of them (100%) have identified
the dependable service and customer c credibility as the top most KSF. 80% of
them indicate that both -the quality of building and strong network of
management/ sales force/ agents are important KSFs.
7.0 OVERALL INDUSTRY ISSUES AND PROBLEMS
Bangladesh in comparison to the
other Asian countries. It is gaining full shape gradually. But some of the
issues are critical to the healthy growth of this industry. Respondents have
identified the following issues/ problems as more crucial.
Unavailability of Land
Land is a significant problem in
expanding [lie city apical untimely bum o(I)m
unavailability. Acute land shortage in the city core due to migration of
rural people to urban and city areas is the main, obstacle to the planned
growth of private sector housing industry. As the number of apartment builders
increased significantly land prices of this up market registered phenomenal
increase and continuous to increase unabated.
Another problem Is owner those who
have land in these areas are getting into housel-IT business though t6y have no
professional idea of the baseless.
apply and Prices of construction Material:
The timely supply of construction
materials often create problem for the developers.
Few high standard and sophisticated
construction materials are imported from foreign countries. Often deadlock in
part operation and political statement make the supply delay and thus intricate
the construction situation.
On the other hand, price of the
construction materials in our country is rising unabated. Such price rising
very often increase the estimated cost of construction.
Industry Prospects and’ Overall
Attractiveness Market is a Attractive Because of Hi gh growth potential Favorable
Driving Forces (Govt. environment).
C Demand (market six and growth).
Completive Advantage (Less Award
Competitors)
Bureaucratic Conifers:
Red tapism in the ministry of
government too often detracts the developer. Ministry (it Industry assured the
union of developers Mitch assistance including this assistance Is yet come into
being for bureaucratic Red Taoism.
Inadequate Service Facilities The
private sector housing suffers greatly due to the inadequacy and delay in
getting service facilities like water, gas, electricity, road communication,
tel C-COMM Illocution, etc. in the areas under development.
Approval Procedure of Rajuk The
existing procedure of Rajuk’s approval of project plan Tequires revision to
make it more simplified and rational.
Disturbance Created B), Illegal Toll
collectors and Hooligans The role of Chantal)az’s has cast a deep shadow on
apartment bistros, Somellil’15101create complete deadlock in the progress.
8.0 Conclusion and Recommendation
The above analysis clearly denotes
that the apartment industry is a promising Market growth rate is faster. There
are many favorable driving forces working in the industry. And the demographic
changes in the city indicate t_4e huge potential demand.
2. UDDL
needs to push hard the building technology, quality of construction and  active
performance features.
3. Try to capture the advantage of
disorganized industry associated A models,
better styling and customer orientation.
4. UDDL
should search out new customer by the UDDL management as they   are searching for overseas market.
5. UDDL should use price-cuts (promotional
me6sure) in special events to attract price-sensitive buyers into the market.
6. UDDL’s advertising strategy has already
well-accepted to the customers Now, it
should enhance is marketing force with more skills on relationship marketing. Because, in case of such a high
involvement product, it Is imperative
for the marketing force to come closer to the customer and help them in
decision making.