Real Estate Supermarket

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Concept Presentation of Real Estate Super Market

Concept Presentation of Real Estate Super Market

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  • 1. +Business OpportunityBusiness OpportunityEvaluationEvaluationNeed for One-Stop Shop in Real Estate
  • 2. www.mastersungroup.com,+ Opportunity Development and Asset Management NRI & HNI :Vacation Home s Middle Class : Sales & Marketing Conclusions
  • 3. www.mastersungroup.com,+OpportunityOpportunity Economy growing at least 7-8 % per annum Unorganized & fragmented real estate sales & marketing channel Growing affluence and investment appetite fuelling the concept ofVacation Home for lifestyle and investment needs Demand for world class development Growing asset management & development opportunity for budgethotels and service apartments
  • 4. www.mastersungroup.com,+Target Consumers 1.6 million luxury consumers 6-7 million very affluent 9-10 mid affluent 11-12 million mass affluent 40 million upper middle class 72 million up graders 140 million bottom of the pyramidUrban Population50%40%10%Bottom of the pyramid Middle Class RichRichMiddle ClassBottom ofthe pyramid
  • 5. www.mastersungroup.com,+ Opportunity Development and Asset Management NRI & HNI :Vacation Home s Middle Class : Sales & Marketing Conclusions
  • 6. www.mastersungroup.com,+Land Development – Value ChainLand Development – Value ChainVacant LandDevelopable LandPre-construction LandCompleted ProjectValue (example)Rs 50 CrRs 200 CrRs 250 CrRs 1000 CrConcept, plans, approvals,financial models, businessplans etcInfrastructure (if required)Construction finance,Contractors, ProjectManagement, pre-sales
  • 7. www.mastersungroup.com,+Land Development ProcessMarketresearchDesign briefWorld classarchitectsDesign and conceptModellingandforecastingMarketingplanBusiness planFundraisingagentFundraisingProjectmanagementConstructionSales andmarketingAssetmanagementRealisationPRE-CONSTRUCTIONDetailedplansBuildingapprovalsFinancialanalysisSelf Outsourced
  • 8. www.mastersungroup.com,+Development Snapshot Customers : Landowners Initial Value Proposition Maximize the value of asset Sustainable Value Proposition Market based concepts ROI Quality of Development World class design Case studies
  • 9. www.mastersungroup.com,+Development MethodologyPre-Construction Financial analysisFinancial analysis What options are there and which is most profitable?What options are there and which is most profitable? Benefits of doing this areBenefits of doing this are Differentiated product – able to sell your product in a crowdedDifferentiated product – able to sell your product in a crowdedmarketmarket Delivering what the market wants = building a brandDelivering what the market wants = building a brand Price premium and faster sales ratesPrice premium and faster sales rates = more profit and less risk= more profit and less risk Then, translating this concept into a site plan and designThen, translating this concept into a site plan and design A collaborative effort between Promoters, we and panelA collaborative effort between Promoters, we and panelarchitects.architects.
  • 10. www.mastersungroup.com,+Development MethodologyBusiness Plan BUSINESS PLAN = Who is going to do what to make this projectBUSINESS PLAN = Who is going to do what to make this projectwork?work? How are we intending to SELL what we build?How are we intending to SELL what we build? Who will construct it?Who will construct it? Who will oversee construction?Who will oversee construction? What is the operational and marketing plan?What is the operational and marketing plan? How much money do we expect to make and what funds do weHow much money do we expect to make and what funds do werequire?require? How will we manage the risks of the project?How will we manage the risks of the project? Requires decisions on branding and marketing strategy.Requires decisions on branding and marketing strategy. Need full business plan in order to proceed to fundraising .Need full business plan in order to proceed to fundraising .
  • 11. www.mastersungroup.com,+Development MethodologyDesign Brief NOTNOT ““what can I build?what can I build?”” butbut ““what can I sell?what can I sell?”” DESIGN BRIEF = What are you going to build and why?DESIGN BRIEF = What are you going to build and why? Market researchMarket research Not just a matter of ordering a report, it needs to be properly analysedNot just a matter of ordering a report, it needs to be properly analysed Need to consider the potential audience for the development and how to reach them.Need to consider the potential audience for the development and how to reach them. Need to understand market depth and likely acceptance of conceptNeed to understand market depth and likely acceptance of concept Need hard data (market research) and soft data (customer research)Need hard data (market research) and soft data (customer research) Need to identify price points, user preferences, demographics, competitive analysis,Need to identify price points, user preferences, demographics, competitive analysis,required features, value drivers etc.required features, value drivers etc. Financial analysisFinancial analysis What options are there and which is most profitable?What options are there and which is most profitable? Benefits of doing this areBenefits of doing this are Differentiated product – able to sell your product in a crowded marketDifferentiated product – able to sell your product in a crowded market Delivering what the market wants = building a brandDelivering what the market wants = building a brand Price premium and faster sales ratesPrice premium and faster sales rates = more profit and less risk= more profit and less risk
  • 12. www.mastersungroup.com,Development MethodologyConstruction & After As your development partner, we will provide services as required during theAs your development partner, we will provide services as required during theconstruction and asset management / exit phases.construction and asset management / exit phases. These may include any of the following:These may include any of the following: Project management services (quality, cost control, timeliness)Project management services (quality, cost control, timeliness) Asset management services (retail mall, hotels, golf course maintenance etc)Asset management services (retail mall, hotels, golf course maintenance etc) Non-executive project management servicesNon-executive project management services Development of exit routes / sales strategies to maximise the return to PromotersDevelopment of exit routes / sales strategies to maximise the return to Promoters
  • 13. www.mastersungroup.com,+Asset Management Snapshot• Assets: Budget Hotels, Commercial Complexes, Apartments,etc.• Asset Owners : Builders, Business Families• Initial Value Proposition– Cheaper, more efficient alternative• Sustainable Value Proposition– ROI, Asset Value Appreciation– Credentials & Quality of Assets– Capability in sales & marketing, development & other ends of thevalue chain
  • 14. www.mastersungroup.com,+Asset Management : Role The asset manager provides the following major services. This is not anThe asset manager provides the following major services. This is not anexhaustive list. exhaustive list.  Maximises the overall profitability of site.Maximises the overall profitability of site. Analysis, options and recommendations to owner for decisions to be made by themAnalysis, options and recommendations to owner for decisions to be made by them Implementation to achieve the objectives and decisions of ownerImplementation to achieve the objectives and decisions of owner As required decisions for the general manager and management team based on those objectivesAs required decisions for the general manager and management team based on those objectives Ensures that the strategy is converted to tactics and implemented with changes as requiredEnsures that the strategy is converted to tactics and implemented with changes as required Looks at each Area of Operations (see above list) and look for efficiencies, improvements,Looks at each Area of Operations (see above list) and look for efficiencies, improvements,structure, operations and qualitystructure, operations and quality Create Standard Operating Procedures to capture hotel policy on standards, quality, performanceCreate Standard Operating Procedures to capture hotel policy on standards, quality, performancemeasurementsmeasurements Leads creation of operating budgets, capex priorities, recommendations and implementationLeads creation of operating budgets, capex priorities, recommendations and implementation Builds management team including hiring, reshaping and firing of senior staff, setting objectives,Builds management team including hiring, reshaping and firing of senior staff, setting objectives,performance reviews and bonuses.performance reviews and bonuses. Ensure non-financial objectives are achieved (eg quality, social justice programs, PR etc)Ensure non-financial objectives are achieved (eg quality, social justice programs, PR etc)
  • 15. www.mastersungroup.com,+ Opportunity Development and Asset Management NRI & HNI :Vacation Homes Middle Class : Sales & Marketing Conclusions
  • 16. www.mastersungroup.com,+
  • 17. www.mastersungroup.com,+Understanding – Vacation HomeUnderstanding – Vacation HomeSegmentation of Vacation Home market internationallySegmentation of Vacation Home market internationallyVacationOwnershipProperty owned generally for personal useTimeshareA timeshare is a form of vacation property ownership.The use and costs of running the resort are shared among the ownersVacationRentalsRenting out a furnished apartment or house on a temporary basis totourists as an alternative to a hotelVacationExchangeYou trade your interval or week for new and different vacation experiencesat comparable resorts across the country and around the world
  • 18. www.mastersungroup.com,InternationalInternational Demand DriversDemand Drivers EconomyEconomy PopulationPopulation Propensity to spendPropensity to spend Income LevelsIncome Levels Rate of borrowingRate of borrowing Growth rateGrowth rate Attracting investmentAttracting investment Government InitiativesGovernment Initiatives ConferencesConferencesBaby BoomersInterest RatesKey movers of the Vacation Home marketTourism
  • 19. www.mastersungroup.com,+Vacation Homes-InternationallyVacation Homes-InternationallySource: National Association Of Realtors 2006Desirable Attributes In A Vacation Home38%22%22%18%Close To Ocean/Lake/River Sporting ActivitiesClose To Resort Ares Mountains/Natural DestinationsLeisure Activities Preferred29%20%16%11%10%9%5%Water Sports Boating Hunting/Fishing Golf Biking/Hiking Skiing TennisTennisMode Of Purchase For A Vacation Home68%18%14%Real Estate Owners BuildersGolfKey Learnings: Internationally activities are critical aspects of Vacation Homes Brokers / real estate agents play a critical role as channel partners Locational advantage needs to be broadcast for each individual property
  • 20. www.mastersungroup.com,+Vacation Home Buyers: InternationallyVacation Home Buyers: InternationallyDistance (Miles) Vacation Home % Investment Property %25 44 6925-99 19 9100-199 22 5200-499 1 *500-999 3 31000-1499 * 61500 and more 10 8Median Distance 49 18* Less than 1 %Home Size (Sq.ft) Vacation Home % Investment Property %500 4 1501-1000 14 141001-1500 56 221501-2000 11 312001-2500 9 122501-3000 5 103000 and more 1 10Median Size 1290 1700Format California Coastal South Florida Golf Destinations Ski DestinationsStudio 600 600 700 NA1 BDR 590 600 550 5502 BDR 480 600 450 5803 BDR NA NA 400 600Premiums ($ 000) 50-150 50-300 50-150 50-100Distances between residence & Vacation HomeUsually less than 100 milesSize of home : 1000-1500 sqfAverage value per sq.ftSource: Economic Realtors Research
  • 21. www.mastersungroup.com,US Vacation Home MarketUS Vacation Home Market020004000600080001000012000140001990 2000 200502468101214GDP (In Billion USD) Vacation home Industry (In Billion USD) International Vacation Home market ismaturing and seeing considerablegrowth The US$ 13 billion Vacation Homeindustry in US is 0.10% of GDP as of 2005 Multiple players having unlimitedproduct offerings GDP of US playing an integral role forburst of Vacation Home industryVacation Home market is growing @ 9.7% worldwide & @ 14% in U.SAlong with high growth rates comes heightened competitionBrands would soon start at exploiting other geographies0.05 %0.08 %0.10 %
  • 22. www.mastersungroup.com,India Vacation HomeIndia Vacation Home01002003004005006007008009001990 2000 200500.10.20.30.40.50.60.70.8GDP (In Billion USD) Vacation home Industry (In Billion USD) Given the current economic trendsGiven the current economic trendswe can draw the followingwe can draw the followinghypothesis:hypothesis:- The Size of the Vacation Home- The Size of the Vacation Homeindustry is approximately US$ 0.757industry is approximately US$ 0.757billion or INR 34,150 Crorebillion or INR 34,150 Crore Experts predict the GDP growthExperts predict the GDP growthrate to be close to 8%, the samerate to be close to 8%, the samewould see a rise in income levels – Awould see a rise in income levels – Afactor which is one of the keyfactor which is one of the keygrowth driversgrowth drivers• Generation X will boost the growth of Vacation Homes in India•India the next growth driver for international companies0.05 %0.08 %0.10 %
  • 23. www.mastersungroup.com,+Disposable income 9 lac p.aOwns D/E segment carResiding in posh localitiesAverage age = 36-40CWE= Mostly MaleMarried and has kids42% live in joint families35% of wives working44% traveling abroad for vacation,at least once a yearIndian Luxury Consumer: HNI
  • 24. www.mastersungroup.com,Affluent Map Of India Predominantly luxuryconsumers are resided in thenorth and west of the countrySource: Technopark
  • 25. www.mastersungroup.com,+Vacation Home : Snapshot• Vacation Home• 100-200 kms from metros around a natural attraction primarily hillstations, beaches• International Vacation Homes in Dubai, London etc.• Customers– HNIs & NRIs• Initial Value Proposition– Variety & convenience of one stop shop• Sustainable Value Proposition– Needs based development– Reach & access to NRIs– Destination development and marketing
  • 26. www.mastersungroup.com,+Indian HNI : Primary TargetProducts Vacation Home Purchase/Lease of Commercial Investment in Real Estate Funds/ REITsCompetitive Landscape Wealth Managers proffering Equity & Debtinstruments Dedicated sales team representing high valueassets Advertising & PR by builders & marketersNeeds Prestige, Ego Value High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & AccountabilityOpportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Wealth Management perspective
  • 27. www.mastersungroup.com,+NRI : Secondary TargetProducts Vacation Home Equity investment inCommercial , Hotel Real EstateDevelopmentCompetitive Landscape Wealth Managers profferingEquity & Debt instruments Dedicated sales team representinghigh value assetsNeeds High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & AccountabilityOpportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities likeequity involvement Reach to micro-segments
  • 28. www.mastersungroup.com,+Key Success Factors Direct Selling & Marketing for HNIs, NRIsDirect Selling & Marketing for HNIs, NRIs Dedicated sales and service team for HNIs / NRIsDedicated sales and service team for HNIs / NRIs Dedicated processes and systems to manage service & sales issuesDedicated processes and systems to manage service & sales issues Dedicated telemarketing & call centre supportDedicated telemarketing & call centre support Direct marketing strategy comprising of internet marketing and other channelsDirect marketing strategy comprising of internet marketing and other channels Pioneering new and exciting initiativesPioneering new and exciting initiatives Example :Halfshare.com specializes in the shared ownership of luxury vacation propertiesExample :Halfshare.com specializes in the shared ownership of luxury vacation propertiesthroughout North America.throughout North America. They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-ownerThey help buyers find their ideal vacation property or Vacation Home while matching them with the right co-ownerthrough a Buyer Match Planthrough a Buyer Match Plan
  • 29. www.mastersungroup.com,+Key Success FactorsKey Success Factors Continuous inventory acquisition by a dedicated team Dedicated team to scout for projects under development, completed projects, re-saleinventory Acquisition could be followed by Re-packaging the real estate to make it more appealing to the target buyer Sound Real Estate Knowledge Base Ability to track trends and assess impact for HNIs Ability to give a wealth management perspective and offer Good Service Quality Training & People development to offer good service experience Personalized service to HNIs/NRIs Robust processes for transaction management Strong performance management system
  • 30. www.mastersungroup.com,+
  • 31. www.mastersungroup.com,+ Opportunity Development and Asset Management NRI & HNI :Vacation Home s Middle Class : Sales & Marketing Conclusions
  • 32. www.mastersungroup.com,+Sales & Marketing to Middle Class Customers : Middle class Initial value proposition Good Deal & Good Service Quality Sustainable value proposition Distribution channel Width and depth One stop shop Good Deal Service Quality
  • 33. www.mastersungroup.com,+Differentiated Distribution StrategyDifferentiated Distribution StrategyFranchiseeFull FledgedCompany OperationsFranchiseeCompany Operations+ FranchiseeAverage/LowAverage/LowHighHighHighHighAverage / LowAverage / LowPurchasing PowerDevelopmentPotential
  • 34. www.mastersungroup.com,+Benefits to FranchiseesBenefits to Franchisees Business Support Business Operations Manual Exciting Inventory & Inventory Management Software Experienced Management & Franchise Advisory System Referral& Lead Management System New Business Generation Performance Monitor Staff Recruitment Assistance Programme Regional Managers and Franchise Operations Centres Effective Marketing Mix Advertising & Public Relations After Sales Service Regional Marketing Programme Branded Promotional Merchandising, Brochures etc Loyalty Card Programme Personal Business Development Comprehensive Introductory Programme Comprehensive Sales Training Programme Field Support Recognition Groups for Outstanding Achievers Software Support & Training
  • 35. www.mastersungroup.com,+GoaChandigarhGurgaonDelhiSecunderabad VizagVijayawadaAhmedabadBangaloreChennaiHyderabadMysoreBhubaneswarLucknowVadodaraRanchiKochiThiruvanantpuramHubliMumbaiIndoreJaipurKolkataSiliguriRaipurPuneCoimbatore● Primarily BranchesPrimarily Branches● Franchisee + BranchesFranchisee + Branches● Franchisee OnlyFranchisee OnlyDehradunNagpurGuwahatiAmritsarLudhianaDistribution Development PlanDistribution Development Plan
  • 36. www.mastersungroup.com,+Key Success FactorsKey Success Factors Wide Reach to Increase Convenience & Access Branch network in class A cities Branch offices in strong NRI markets Extensive network of agents & franchisees on a win-win model Wide Choice to Facilitate a One Stop Shop Experience Continuous inventory acquisition by a dedicated team Effective Tie-Ups & Alliances to offer complementary &supplementary services Incentivizing the network to add inventory Effective inventory management software and systems Attractive inventory display & merchandising
  • 37. www.mastersungroup.com,+Key Success FactorsKey Success Factors Good Service Quality Training & People development to offer good service experience Effective systems for inventory management Effective software and systems for CRM Robust processes for transaction management Strong performance management system Continuous inventory acquisition by a dedicated team Dedicated team to scout for projects under development, completed projects, re-sale inventory Acquisition could be followed by Re-packaging the real estate to make it more appealing to the target buyer Small value additions to make the inventory more valuable Exclusive marketing and sales rights to add to distribution power Incentivizing the network to add inventory Win-Win model for agents/franchisees to populate the site with inventory Outsourcing of inventory acquisition to agents/franchisees in areas with low development potentialand/or low purchasing power
  • 38. www.mastersungroup.com,+Key Success FactorsKey Success Factors Integrated SoftwareIntegrated Software A low cost suite of an easy-to-use integrated software systemsA low cost suite of an easy-to-use integrated software systems Cover every key aspect of successful real estate agency practiceCover every key aspect of successful real estate agency practice Full technical and training support supplied by the team atFull technical and training support supplied by the team atTechnology.Technology. Software system has a database, lead management , activitySoftware system has a database, lead management , activityscheduler, diary and presentations package designed to createscheduler, diary and presentations package designed to createefficiency, lift sales and allow accountability in the officeefficiency, lift sales and allow accountability in the office Software system are fully integrated.Software system are fully integrated. This means that data only needs to be entered once. It is thenThis means that data only needs to be entered once. It is thenavailable for use in all modules of the systemavailable for use in all modules of the system
  • 39. www.mastersungroup.com,+ Opportunity Development and Asset Management NRI & HNI :Vacation Home s Middle Class : Sales & Marketing Conclusions
  • 40. www.mastersungroup.com,+Differentiation vs. ReturnsHighDifferentiationVacationHome/Retirement& OtherSpecializedConceptsAverageDifferentiationAssetManagementDevelopmentLowDifferentiationMiddle Class :Sales &MarketingImmediateReturnsMedium TermReturnsLong TermReturns
  • 41. www.mastersungroup.com,+Sounds interesting ?
  • 42. www.mastersungroup.com,+Contact Us Sarvajeet Chandra¥ +91 9920803060,sarvajeet@theadiva.com¥ sarvajeetchandra@gmail.com Visit Us at www.mastersungroup.com