Brokerage Structure in reference of other Broking House at Reliance Money
Internship Report _ Akhilesh Kr Vasisht
1. A REPORT
ON
“MARKETING STRATEGIES OF INDIABULLS SECURITIES
LTD. AND BRAND AWARENESS IN DELHI-NCR”
By
Akhilesh Kumar Vasisht
13BSPHH010039
Indiabulls Distribution Services Ltd.
2. A REPORT
ON
“MARKETING STRATEGIES OF INDIABULLS SECURITIES
LTD. AND BRAND AWARENESS IN DELHI-NCR”
By
Name-Akhilesh Kumar Vasisht Enrollment no.-13BSPHH010039
Indiabulls Distribution Services Ltd.
A report submitted in partial fulfillment of
the requirements of
MBA program of
IBS Hyderabad
Distribution List:
FACULTY GUIDE COMPANY GUIDE
-Dr M ARUNA - MR. SAURABH GUPTA
IBS HYDERABAD (V.P., IDSL)
Date of submission: 16th
MAY 2014
3. AUTHORISATION
I, Dr. M Aruna, hereby authorize the submission of the project work
titled, “MARKETING STRATEGIES OF INDIABULLS SECURITIES
LTD. AND BRAND AWARENESS IN DELHI-NCR”, undertaken by
Akhilesh Kumar Vasisht (Enrollment no. 13BSPHH010039) as partial
fulfillment of MBA Program of IBS Hyderabad. This project work was
executed under my guidance and no part of this project has been
submitted for any degree or recognition before.
Sincerely,
Dr. M Aruna
(Faculty Guide, IBS Hyderabad)
4. ACKNOWLEDGEMENTS
I hereby take this opportunity to thank INDIABULLS
DISTRIBUTION SERVICES ltd, for providing me a corporate
exposure through the course of my summer internship. My effort in this
project got materialized only because of the guidance and support that I
received from Indiabulls.
I thank Mr. Sachin Maheshwari, Senior VP of Indiabulls Distribution
Services Ltd. who gave me this wonderful opportunity to work in this
company.
My special thanks to my company guide Mr. Saurabh Gupta whose
immense knowledge, experience and guidance has been the most
important resource while working on this project.
I express my gratitude to my faculty guide, Ms. M Aruna (IBS-
Hyderabad) for her cooperation and guidance throughout the summer
internship program.
I would like to extend my special acknowledgement to all the
respondents of my survey. This project would not have been successful
without the valuable insights offered by them.
Thanking You,
Akhilesh Kumar Vasisht,
13BSPHH010039
5. EXECUTIVE SUMMARY
ORGANIZATION DESCRIPTION
About Company: Indiabulls Securities Ltd is India's leading capital markets
company with All-India Presence and an extensive client base. They provide range
of services to their clients in securities brokerage, including equities, commodities,
wholesale debt, futures and options, depositary services, research services,
insurance, initial public offering (IPO), and mutual fund distribution. During the
year 2009-10, the company formed a wholly owned subsidiary company, namely,
Indiabulls Distribution Services Ltd. Main function of the company is Sales and
Marketing of real estate and equity products
Industry Type: Real Estate
Address of the Organization: 12th
Floor, Block A, Building No-5, DLF,
Cybercity, DLF Phase 3, Gurgaon-122002
PROJECT DETAILS:
Title: Marketing Strategies of Indiabulls Securities Ltd. and Brand Awareness in
Delhi-NCR
Objective: To study the Strategies used in the Selling and Marketing of Real
Estate and analyze the Brand Awareness about Indiabulls so as to check what kind
of perception consumers have of them. And also to understand the business of
Indiabulls, its Business Model, Products/Services, Organizational Structure,
Organizational Policies, etc…
Background: Report deals with various aspects of Real Estate, and application of
important concepts of Marketing so as to help in developing the Strategies of
Marketing. Further it clears the facts about perception of consumers on various
parameters with respect to Indiabulls. Some important Financial ratios are
considered to indicate the position of the company so that it helps the customers in
further taking the decision whether to invest in Indiabulls or not.
6. Methodology: Data is taken from relevant books and websites. Research on the
project is conducted with the help of data collected through Questionnaire. Factor
Analysis has been applied using SAS software.
Findings: Brand Recognition of Indiabulls is good but needs to be taken care of in
terms of Real Estate .Majority of respondents say that making a right choice of
brand is most important to them. Advertising is an important tool for creating
Brand Recognition.
Various factors that affect the buying decision of custiomers can be categorized
into three factors viz, Competitive Advantage and External Factor and Internal
Factor. Perception about the company is mixed and slightly toward the positive
side.
Recommendations: It is suggested that the company needs to focus on building
the brand Indiabulls with special regards to Real Estate and make people trust that
it’s the right choice of brand. For this the brand awareness level needs to be taken
care of by focusing more on Advertising.
7. TABLE OF CONTENTS
Authorization i
Acknowledgements ii
Executive Summary iii-iv
1. Introduction 1
1.1. Purpose, Scope, and Limitations 1
1.2. Sources and Methods 2-3
1.3. Introduction to Real Estate Sector 4
1.3.1 Key trends in real estate 4
1.4. Introduction to Indiabulls Securities Ltd. 5
1.5. Review of Literature 6
1.5.1 Four D’s of Branding: 6
1.5.2 The Brand 7
1.5.3 Brand Equity 8
1.5.4 Branding benefits 8
2. Organisation Structure
2.1. Organization Structure of Indiabulls 9
2.2. Organisation Structure of Indiabulls Securities Ltd. 10
3. Financial Ratios of Indiabulls Securities Ltd.
3.1. Liquidity Ratio 11
3.2. Leverage Ratio 11
3.3. Profitability Ratio 12
3.4. Activity Ratio 12
4. PESTEL Analysis of Real Estate Industry 13
5. Michael Porter’s 5 Forces Model for Real Estate 14
8. 5.1 Competition in the industry 15
5.2 Potential of new entrants 15
5.3 Power of suppliers 16
5.4 Power of customers 16
5.5 Threat of substitutes 17
6. SWOT Analysis of Indiabulls 18
7. Selling & Marketing department Indiabulls
7.1 Marketing Strategies of Indiabulls 19
7.2 Segmentation, Targeting and Positioning in Real Estate
7.2.1. Segmentation 19
7.2.2. Targeting 20
7.2.3. Positioning 21
7.3 The Four Ps of Real Estate Marketing 22-24
7.4 Steps of Activities of Selling Department 25
7.4.1 Preparation Prior to Sales Call
7.4.2 Optimum prospecting
7.4.3 Sales presentation
7.4.4 Handling Objections
7.4.5 Negotiation strategy
8. Factor Analysis Based on Factors Affecting the Investment Decisions 26
8.1 Factor Analysis Feasibility 27
8.2 Variables used in the project 28
8.3. Principal Component Analysis 29
8.4. Eigen Vectors 30
9. 8.5. Factor loadings and communality 31
8.6. Rotation 31-32
9. Interpretation of Results of the responses of the Questionnaire 33-34
10. Pie-charts and bar graphs 35-52
11. Suggestions 53
12. Outcome, Contribution and Learning 54
Appendix -Questionnaire 55-57
Refrences 58
LIST OF FIGURES AND TABLES
1. Sequence of steps 3
2. Organisation Structure of Indiabulls 9
3. Organisation Structure of Indiabulls Securities Ltd. 10
4. Michael Porter’s 5 Forces Model for Real Estate 14
5. Factor Analysis Feasibility 27
6. Kaiser’s Measure of Sampling adequacy 27
7. Variables used in the project 28
8. Eigen values of correlation matrix 28
9. Eigen Vectors 30
10. Factor Pattern 31
11. Variance Explained by Each Factor 31
12. Final Communality Estimates 31
13. Orthogonal Transformation Matrix 32
14. Rotated Factor Pattern 32
15. Variance Explained by Each Factor 32
16. Final Communality Estimates 32
17. Pie-charts and Bar-Graphs 35-52
10. 1. INTRODUCTION
1.1. PURPOSE, SCOPE, AND LIMITATIONS
In today’s competitive business scenario a customer can be retained only by increasing the level
of brand awareness, because Brand awareness effects the consumers’ buying decision. Hence,
it’s important to measure the level of awareness and adopt different strategies so as to increase
the awareness level.
This study is under taken to analyze the brand awareness with respect to Indiabulls Securities Ltd
To analyze the brand awareness of various real estate companies with special reference to
Indiabulls
To measure the awareness level in Delhi-NCR
To find the means of awareness
To see the influence of brand awareness on buying behavior
To understand the customer feedback on various aspects of Indiabulls
To suggest areas of improvement to Indiabulls for improving its brand awareness.
Scope
The study is carried out for Indiabulls Securities Ltd. in its subsidiary company Indibulls
Distribution Services Ltd (IDSL), Cyber City, Gurgaon . A Questionnaire has been designed to
record the responses of people. Sample size is 100 respondents selected randomly from the
region of Delhi-NCR. The survey conducted will provide the details about the brand awareness
levels responding to the products and services provided by Indiabulls.
Limitations
The study covers the Delhi-NCR only and due to the limited sample size results may not
generalize.
The analysis is based on customer’s opinion at the time of survey.
Suggestions and conclusions are based on the limited data.
There was a constraint with regard to time allocation for the research study
11. 1.2 SOURCES AND METHODS
SAMPLE DESIGN:
For ascertaining the brand awareness towards the INDIABULLS REAL ESTATE, 100
customers have been randomly selected from the Delhi-NCR.
DATA COLLECTION:
There are two types of data collection:
1. Primary data
2. Secondary data
Primary data
Primary data is personally developed data and it gives latest information and offers much
greater accuracy and reliability.
There are various sources for obtaining primary data like mail, survey, personal
interview, field survey, panel research and observation approach etc.
The study is dependent on primary data to a maximum extent, which is collected by way
of questionnaire.
The observational method and survey research method is used to collect the primary data.
A detailed questionnaire has been prepared to reflect the opinions of the customers
towards the Indiabulls Real Estate services and administered to the same.
Secondary data
Secondary data is the published data that is already available for use.
Some necessary data has also been collected from official records and other published
sources.
The collected data is classified, tabulated, analyzed and interpreted.
Finally the conclusion is drawn based on the study.
And suggestions are offered for improving the brand awareness of Indiabulls.
12. METHODOLOGY
The following sequence of steps are followed:
1. Define The Problem
2. Design The Research Question
3. Design The Data Collection Forms
4. Specify the Sample
5. Analyze the data
6. Write the Research Findings and Conclusions
In this project, focus was to find out the factors and the brand awareness.
A factor analysis has been done on the data to find the influencing factors.
I have collected primary data through questionnaire and survey.
For secondary data, various online sources have been referred.
I have taken 7 factors in my survey and my population size is of 100. I have targeted
people who were customers, general investors and company employees.
fig1. Sequence of steps
choosing a sample: sample size of 100
collection of data:
primary data: Questionnaires
Data analysis: factor analysis
Data interpretation
13. 1.3 INTRODUCTION TO REAL ESTATE SECTOR
The second largest employment generation sector after agriculture, real estate contributes about
6.3 per cent to India's gross domestic product (GDP).
The sector's progress is driven by factors such as rapid urbanization, a growing trend towards
nuclear families, positive demographics, rural–urban migration, ever-developing infrastructure,
higher income levels and housing demand.
The real estate sector in India is witnessing rapid growth in the residential, commercial and
industrial segments. Real estate development, once restricted to bigger cities, have shown
marked progress in smaller cities and towns owing to availability of banks loans, higher earnings
and improved standard of living.
The Indian retail realty sector is projected to grow at around 15 per cent year-on-year over the
next 3-5 years as against a 12-13 per cent nominal growth of India's GDP estimated by the
International Monetary Fund (IMF). If the sector does indeed manage the aforementioned
growth, it will touch Rs 34 trillion by 2016.
1.3.1 Key trends in real estate
Land Acquisition
Lack of corporatization
Geographic de-concentration of real estate activity from large metros.
Green buildings are gaining popularity.
Affordable housing is still the buzzword.
Recovery in demand for luxury projects.
Growth not only in the metros, also in the surrounding regions.
The suburban areas developing at a faster pace.
Global Investors Interested in Indian Real Estate.
NRIs and foreign investors also interested in Indian property.
World’s renowned banks like Morgan Stanley, etc. now investing in the Indian Real
Estate market.
Tremendously hiked prices and large returns assured.
Steady expansion and development in the IT sector of India.
Adoption of Foreign Direct Investment (FDI) policy.
Easy access to bank loans.
Growth in Indian economy.
14. 1.4 INTRODUCTION TO INDIABULLS SECURITIES LTD.
Indiabulls Securities Ltd is India's leading capital markets company with All-India Presence and
an extensive client base. The company is engaged in the securities brokerage industry. They
provide range of services to their clients in securities brokerage, including equities, commodities,
wholesale debt, futures and options, depositary services, research services, insurance, initial
public offering (IPO), and mutual fund distribution. They have a pan India presence with a
network of 123 branches spread across 70 cities.
The company's primary business activity is to carry on business of stock and share broker on
National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd, and other related
ancillary services. They are a depositary participant with the National Securities Depository Ltd
(NSDL) and Central Depository Services (India) Ltd (CDSL) for settlement of dematerialized
shares. They perform clearing services for all securities and commodities transactions. The
company is the first and only brokerage house in India to be assigned the highest rating BQ-1 by
CRISIL. They possesses state of the art trading platform, best broking practices and is the
pioneer in trading product innovations.
Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading
platforms in the country.
Their subsidiaries include Indiabulls Commodities Limited, Devata Tradelink Ltd, Indiabulls
Distribution Services Ltd and Indiabulls Brokerage Ltd.
Indiabulls Securities Ltd was incorporated on June 9, 1995 as a private limited company with the
name GPF Securities Pvt Ltd. The name of the company was changed to Orbis Securities Pvt Ltd
on December 15, 1995 to change the profile of the company and subsequently due to the
conversion of the company into a public limited company, the name was further changed to
Orbis Securities Ltd on January 5, 2004. The name of the company was again changed to
Indiabulls Securities Ltd on February 16, 2004 so as to capitalize on the brand image of the term
'Indiabulls' in the company name.
During the year 2008-09, the company formed wholly owned subsidiary company namely
Indiabulls Brokerage Ltd. During the year 2009-10, the company formed a wholly owned
subsidiary company, namely, Indiabulls Distribution Services Ltd. They opened 58,224 new
equity trading accounts during the year. Also, they added 8,612 new trading accounts for
commodities during the year.
In December 2009, they created a full fledged division for institutional sales. The company is
focused on building a long term stable business with emphasis on retail brokerage that does not
rely on highly-leveraged trading clients. Their position will be further strengthened by the set-up
of their Institutional Equity business and their future foray into Portfolio Management, Wealth
Management and Investment Banking
15. 1.5 REVIEW OF LITERATURE
Brand awareness reflects the consumers’ ability to identify the brand under different conditions:
the likelihood that a brand name will come to mind and the ease with which it does so.
1.5.1 Four D’s of Branding:
Distinctiveness:
Brand should be distinct when compared to your competitors and to all spoken and visual
communications to which your target audiences will be exposed. The more unique and distinct
your communications, the wider the field of effective competitive strength it will have. There are
simple means to apply to test the distinctiveness of your brand.
Differentiation:
The brand strategy and brand assets must set you’re offering apart and clearly articulate the
specific positioning intent of your offering.
Defendable:
You will be investing in creating your brand assets and in all cases your brand must have
proprietary strength to keep others from using close approximations. This applies to your trade
names and other proprietary words as well as to your logos, symbols and other visual assets.
Digit-able:
In most businesses there is strong and growing element of electronic communications and
commerce that dictate all brand assets be leveraged effectively in tactile and electronics form.
This goes for all brand assets. Much of the brand manager’s work is to build a brand image. But
its job doesn’t stop there. The brand manager needs to make sure that brand experience matches
the brand image.
16. 1.5.2 The Brand:
To any individual a brand (in his mind) is a complex combination of experiences, beliefs,
perceptions and associations that have grown up over time.
Perceiving the Brand:
An individual builds up his perceptions of a brand via a wide range of communications channels.
They are as follows:
Experience:
The most powerful influence is experiential. This is when the individual actually has a "Brand
experience". For example - He visits a McDonald’s restaurant or a Shell petrol station.
Advertising:
Over time an individual who lives in a country in which the company/brand is active, or travels
to one on business or vacation, will be exposed to their advertising. This advertising may be in a
wide range of media:
TV commercials for products and services
Recruitment ads inviting employment applications
"Corporate" TV commercials promoting the company's "reputation"
Web based advertising
An ad for the company’s branded products or services in a wide variety of print media.
Billboards on highways
Radio
Point of sale etc.
Media Reports and Stories:
Individuals will be exposed to a wide variety of reports about companies in the media (print and
broadcast) where the editorial content is only partly influence able by the company (in some
cases) or not at all(in most cases). These stories will come from a variety of primary and
secondary sources: -
Press releases
Press conferences
Reporting of "events"
Investigative journalism
Stories passed to the media by third parties (Non-governmental organizations etc.)
17. 1.5.3 Brand Equity:
Brand equity is multi-dimensional. There are several stakeholders concerned with brand equity,
including the firm, the consumer, the channel, and some would even argue the financial markets.
But ultimately, it is the consumer that is the most critical component in defining brand equity.
Brand Equity can be defined as Three Distinct Elements:
1) the total value of a brand as a separable asset -- when it is sold or included on a balance sheet.
2) A measure of the strength of consumers' attachment to a brand.
3) A description of the associations and beliefs the consumer has about the brand.
Of those three concepts, the first can be classified as "brand valuation," the second" brand
loyalty," and the third "brand description." Brand loyalty will be a factor that affects the overall
brand value, and brand description will usually affect or explain some of the brand loyalty.
1.5.4 Branding benefits:
Benefits To Buyer:
•Help buyers identify the product that they like/dislike.
•Identify marketer
•Helps reduce the time needed for purchase.
•Helps buyers evaluate quality of products especially if unable to judge products characteristics.
•Helps reduce buyers’ perceived risk of purchase.
•Buyer may derive a psychological reward from owning the brand, i.e., Rolex or Mercedes.
Benefits To Seller:
•Differentiate product offering from competitors
•Helps segment market by creating tailored images, i.e., Contact lenses
•Brand identifies the companies’ products making repeat purchases easier for customers.
•Reduce price comparisons
•Brand helps firm introduce a new product that carries the name of one or more of its existing
products...half as much as using a new brand, lower co. designs, advertising and promotional
costs. Example, BPL telephones.
20. 3. FINANCIAL RATIOS OF INDIABULLS SECURITIES LTD.
3.1. LIQUIDITY RATIO
CURRENT RATIO= current assets/current liablities
According to the conventional rule , 2:1 is the satisfactory current ratio .
The firms current ratio for the years 2013, 2012 and 2011 were 1.17, 1.33 and 0.9 respectively
which indicates that in the worse situation company will not be in the position to fulfill all the
current obligations.
If a company , maintains a higher current ratio ( 3:1 or more) then it shows that company has
invested much of its funds in current assets or cash which shows company has prospects to
exploit into further investments.
QUICK RATIO=(current assets –inventories)/current liabilities
According to the conventional rule, 1:1 is the satisfactory quick ratio . Company’s quick ratio
were 2.91(Mar’13), 1.74(Mar’12) and 2.2(Mar’11) this shows sound liquidity.
But this does not show the true picture of the liquidity position as a current assets includes
debtors which may not be that liquid immediately and on the other hand a low quick ratio may
indicate that the company is timely paying its current obligations and turning over its inventories
efficiently.
3.2. LEVERAGE RATIOS
Debt Equity Ratio:
Debt to Equity ratio for Indiabulls Securities Ltd for the years 2011, 2012 & 2013 are 0.85, 0.17
and 0.69 respectively.
Creditors usually like a low debt to equity ratio because a low ratio (less than 1) is the indication
of greater protection to their money. But stockholders like to get benefit from the funds provided
by the creditors therefore they would like a high debt to equity ratio.
21. 3.3. PROFITABILITY RATIO
Earnings Per Share
The EPS values for years 2011, 2012, 2013 are 1.5, 0.0 and 1.9 respectively i.e, EPS is rising
year after year, thereby, hinting at continuous improvement. This implies, Indiabulls Securities
Ltd. shows a strong financial position and is a good company to invest money in.
Price Earning Ratio
The price earning ratio of Indiabulls Securities Ltd for years 2011, 2012, 2013 are11.0, 0.0 and
4.3 i.e, there was a dip in the PE ratio in year 2012 but it regained in 2013 thereby showing that
investors have again become optimistic.
3.4 ACTIVITY RATIO
Debtor Turnover Ratio
Debtor turnover is the number of times debtors turn over each year. A high ratio implies that the
company deals with more cash sales than credit and shows the efficiency of the management as
well. In Indiabulls Securities Ltd. Debtor Turnover ratio for the years 2011, 2012 and 2013 are
4.45, 3.83 and 4.
Total asset turnover ratio:
It specifies the sales that a co. is getting (in times) by investing Rupee 1 in total assets. The
values of ratio are 3.55, 0.43 and 0.36 for the year 2011 , 2012 and 2013 respectively. Indiabulls
Securities Ltd. has the highest total asset turnover ratio in year 2011.
22. 4. PESTEL ANALYSIS OF REAL ESTATE INDUSTRY
PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental and
Legal analysis" and describes a framework of macro-environmental factors used in the
environmental scanning component of strategic management. It is a part of the external analysis
when conducting a strategic analysis or doing market research, and gives an overview of the
different macro environmental factors that the company has to take into consideration. It is a
useful strategic tool for understanding market growth or decline, business position, potential and
direction for operations.
Political factors are how and to what degree a government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labour law, environmental
law, trade restrictions, tariffs, and political stability.
Economic factors include economic growth, interest rates, exchange rates and the
inflation rate. These factors have major impacts on how businesses operate and make
decisions. For example, interest rates affect a firm's cost of capital and therefore to what
extent a business grows and expands.
Social factors include the cultural aspects and include health consciousness, population
growth rate, age distribution, career attitudes and emphasis on safety. Trends in social
factors affect the demand for a company's products and how that company operates.
Technological factors include technological aspects such as R&D activity, automation,
technology incentives and the rate of technological change. They can determine barriers
to entry, minimum efficient production level and influence outsourcing decisions.
Furthermore, technological shifts can affect costs, quality and lead to innovation.
Environmental factors include ecological and environmental aspects such as weather,
climate, and climate change, which may especially affect industries such as tourism,
farming, and insurance.
Legal factors include discrimination law, consumer law, antitrust law, employment law,
and health and safety law. These factors can affect how a company operates, its costs, and
the demand for its products.
23. 5. MICHAEL PORTER’s 5 FORCES MODEL FOR REAL ESTATE
Named after Michel E. Porter, this model identifies and analyses 5 competitive forces that shape
every industry and determines industry’s weaknesses and strength. They are:
Fig 4.
Potential of new e
Competition in the industry
Potential of new entrants
Power of suppliers
Power of customers
Threat of subsitutes
24. 5.1 Competition in the industry
Indiabulls faces competition from various firms like: DLF Ltd.,Sobha Developers,Omaxe,
Oberoi Realty, HDIL, Godrej properties.
The booming Real Estate Sector has given rise to a number of companies which give stiff
competition to Indiabulls Real Estate. In the Premium Housing category, Indiabulls Real Estate
mainly faces competition from players such as DLF and Ansal Properties and Infrastructure
Limited. In the Affordable Housing segment, it faces competition from players such as Sobha
Developers.
5.2 Potential of new entrants
The market for Real Estate Companies are flourishing. This new trend poses for new threats
also; this may be either the entry of local players who can provide lower rates or a very big
player who can enter into a price war. Threat of new entry is high when:
Capital requirements to start the business are less
Few economies of scale are in place
Customers can easily switch (low switching cost)
Your key technology is not hard to acquire or isn’t protected well
Your product is not differentiated
25. A new entrant in addition to the above also needs a reasonable level of capital to fund the
working requirements of the business (finance to customers, deposits with exchanges,
etc).The scale requirements are increasing constantly and as a result a new entrant will
require higher levels of investments in the future to enter the business. As pointed out, it is
likely to see many entrants in the industry. On the contrary, it is likely that the smaller
players will exit by selling out or closing.
5.3 Power of suppliers
Indiabulls Group has very high profile corporate suppliers, who for obvious reasons have great
bargaining power and offers from competitors also. The operations largely depend on these
supplies.
Bargaining Power of supplier means how strong is the position of a seller. Suppliers are more
powerful when:
Suppliers are concentrated and well organized
Few substitutes available to suppliers
Their product is most effective or unique
Switching cost, from one suppliers to another, is high
You are not an important customer to Supplier
5.4 Power of customers
Customer is the king of the market. They have a lot of options while planning to purchase
products. Products offered by Indiabulls are unsought in nature and are industry dependent. The
threats which lies here are:
Too many goods chasing too few consumers.
Buyers are mostly corporate clients.
Product is not much differentiated.
Credible Threat of integration.
26. 5.5 Threat of substitutes
Indiabulls poses great threat of substitutes like people of low risk appetite would like to invest in
bank rather than in share market, real estate, commodities, etc. Its products can very well be
substituted by substitutes offered by competitors.
Competitive Advantages of Indiabulls:
Availability of maximum project details
Minimum Ticket Size(per sq. ft.)
Location Advantage
Flexible Payment Options
Assured Returns till Possession
Fully Loaded, Plug & Play Concept
27. 6. SWOT ANALYSIS OF INDIABULLS:
STRENGTHS
1. Fastest Growing Company
2. Focused Portfolio
3. Strong Financial Background
4. Experienced Leadership & Management
Team
5. Wide Sales and Marketing Network
6. International Presence
7. Projects in SEZ areas
WEAKNESSES
1. Slow pace of development of the
projects
2. Brand name is not much known as
compared to major players of Real
Estate in the market
OPPORTUNITIES
1. Capturing prime locations in Delhi/NCR
to attract more investors
2. New concepts compared to other
developers
3. Economical and Innovative promotional
strategies
THREATS
1. Well established developers
prevailing in the markets
2. New entrants
3. Change in Government Policies
4. Unorganized sector with small scale
brokers and property dealers
28. 7. SELLING & MARKETING DEPARTMENT INDIABULLS
The ultimate aim of the Real Estate Marketing is to increase the demand for a particular type of
property and to increase the price.
7.1 MARKETING STRATEGIES FOR INDIABULLS
1. Below the Line Marketing Strategies
2. Direct Mail
3. Pamphlet Distribution
4. Posters and Banners
5. Telemarketing
Field Activities:
1. CANOPY
2. MARKET ACTIVITY
7.2 SEGMENTATION, TARGETING AND POSITIONING in Real Estate
7.2.1 SEGMENTATION
Real estate market segmentation involves grouping your various prospective buyers and sellers
of real estate into groups that have common needs or will respond similarly to a marketing
action. Real Estate Marketing Plan Strategies understands the concept of grouping.
Real Estate Marketing Plan Strategies knows each prospective buyer and seller group will
require a different marketing mix strategies. Furthermore, each group will offer different growth
and profit opportunities. So the trick is, to deliver the best offer to the best group.
Some different ways to group your prospective buyers and sellers of real estate include :
Demographics: This grouping focuses on the characteristics of the prospective buyer
and seller. For example: Age, Gender, Income bracket, Education, Job and Cultural
background.
Psycho-graphics: This grouping focuses on the prospective buyer's and seller's lifestyle.
For example: Social class they belong to, Lifestyle, Personality, Opinions, and Attitudes..
Behavior: This grouping focuses on the prospective buyer's and seller's behavior. For
example: Online shoppers, Shopping center customers, Brand preference, and Prior
buyers and sellers of real estate.
29. Geographical location: This grouping focuses on the prospective buyer's and seller's
area of life. For example: State, County, City or rural.
A segment is a group sharing one or more characteristics that cause them to have similar
products and/or service needs.
Segmentation can be done depending on many variables which represents specific nature of the
group.
Indiabulls defines its segment on the basis of Demographic Variables, Age, Occupation and
Income.
7.2.1. TARGETING
Once Real Estate Marketing Plan Strategies has grouped your prospective buyers and sellers of
real estate based on characteristics, the next task will be to choose one or more target market
groups.
There are three general marketing strategies for selecting your target markets:
One Strategy Fits All
This approach views the real estate market as one big market with no individual groups,
and therefore, uses one single real estate marketing strategy.
This strategy may be useful for a real estate business with little competition where you may not
need to tailor strategies for different preferences.
For example: Undifferentiated targeting can succeed if your real estate company is the only one
of its kind is a small isolated town where you would consider all people living in the town as
your target market. However, this strategy may not be effective if there are three or four
competitors in town also.
Targeted Marketing
This approach focuses on selecting a particular real estate market niche for targeting your
marketing efforts. Because the focus is on a single segment a real estate company can
concentrate on understanding the needs, wants and desires of that particular market exclusively.
Small real estate companies often benefit from this strategy as focusing on one segment enables
you to compete effectively against larger companies.
30. Multi-group Targeting
This approach could be selected if a real estate company wanted to focus on, two or more,
well defined market groups. Also, the company would have to develop two or more different
strategies for each one. Multi-group targeting offers many benefits to real estate companies
including greater sales volume, higher profits and large market share.
However, this method can be costly as it involves greater input from management, increased
market research, and increased promotional strategies, etc.
Considering the constraints of finance, time and other factors Indiabulls has different strategies
for different segments like different income group of people.
Indiabulls generates a lot of business from Tier-2 cities.
7.2.3. POSITIONING
It is the process by which marketers try to create an image or identity in the minds of their target
market for its product, brand or organization.
Real Estate Marketing Plan Strategies solidifies your marketing position by developing your real
estate service and product and brand image in the minds of prospective buyers and sellers of real
estate. Also, by developing a perception in the prospective buyers and sellers of real estate's
mind, of the experience they will have from acquiring your real estate services/products.
Your real estate company can positively influence the perceptions of its prospective buyers and
sellers of real estate based through strategic promotional activities and by carefully defining your
company's marketing mix.
Effective market positioning involves a good understanding of the positions occupied by
competing real estate company services/products and the benefits sought by the target market.
Real Estate Marketing Plan Strategies also identifies the distinctive advantage with which your
real estate company will deliver the required benefits to the market against the competition.
Businesses which fail to solidify marketing position strategies will more than likely fail to
establish a clear perception of their business in the prospective buyers and sellers of real estate
mind. This, in turn, will cause a company to loose ground to competitors that have a clear
position established.
31. 7.3 The Four Ps of Real Estate Marketing
Real Estate Marketing Plan Strategies real estate marketing mix's "4 Ps of marketing" are often
used as synonyms for each other. In fact, they are not necessarily the same thing.
The 4 Ps of real estate are:
1. Services/Product
2. Place
3. Price
4. Promotion
A good way to understand the 4 Ps of real estate is by the questions, Real Estate Marketing Plan
Strategies, asks to define your marketing mix:
Services/Product
What does the prospective buyers and sellers of real estate want from your
services/products?
What needs do they satisfy?
What features do they have to meet these needs?
Are there any features you have missed?
Are you including costly features that the prospective buyers and sellers of real estate will
not use?
When will the prospective buyers and sellers of real estate use it?
What does it look like?
How will prospective buyers and sellers of real estate use it?
What is it to be called?
How is it branded?
How is it different versus your competitors
What is the most it can cost to provide, and still be sold sufficiently profitably?
32. Place
Where do prospective buyers and sellers of real estate look for your service/products?
If they look in a store, what kind?
Or Online?
Or direct, via published material?
How can you access the right distribution channels?
Do you need to use a sales force?
Or attend trade fairs?
Or make online submissions?
Or send information to print companies?
What do competitors do, and how can you learn from that and/or differentiate?
Price
What is the value of your service/products to the prospective buyers and sellers of real
estate?
Are there established price points for service/products in your area?
Is the Prospective buyers and sellers of real estate price sensitive?
Will a small decrease in price gain you extra market shares?
Or will a small increase be indiscernible, and so gain you extra profit margin?
What discounts should be offered to trade customers, or to other specific segments of
your market?
How will your price compare with your competitors?
33. Promotion
Where and when can you get across your marketing messages to your target market?
Will you reach your prospective buyers and sellers of real estate by advertising in the
press?
Or on TV
Or radio
Or in billboards
By using direct marketing mailshot?
On the Internet?
When is the best time to promote?
Is there seasonality in the market?
Are there any wider environmental issues that suggest or dictate the timing of subsequent
promotions?
How do your competitors do their promotions?
How does that influence your choice of promotional activity?
The 4 Ps module is just one of many marketing mix lists that have been developed over the
years. While the questions we have listed above are key, they are just a subset of the detailed
probing that may be required to optimize your marketing mix.
The term “marketing mix” however, does not imply that the 4 Ps elements represent options.
There are no trade-offs, but fundamental marketing issues that always need to be addressed.
They are the fundamental actions that marketing requires whether determined explicitly or by
default.
34. 7.4 STEPS OF ACTIVITIES OF SELLING DEPARTMENT
1. TEAM DEVELOPMENT
2. LEAD GENERATION
3. CALLING
4. FOLLOW-UP
7.4.1 Preparation Prior to Sales Call
Learn something about the person and their business before the meeting.
Send an outline of the agenda to the client before the meeting.
7.4.2 Optimum prospecting
In real estate basically the simple way is to find potential property broker which is already
operating on a large scale or doing good developers projects. But when the property is broker
free then apart from calling, Main and potential Leads are generated by carrying the Road show
activities in different location.
7.4.3 Sales presentation
Firstly Mock presentations are done. Presentations are recorded as well to see where they are
lacking before making final sales presentation. After research process is complete they Tailor
their presentation to short and concise to make it the best and time efficient.
7.4.4 Handling Objections
Bring the prospect back into the flow of the appointment. If you're in the middle of your
presentation when the prospect raises his objection, then once you've answered it quickly
summarize what you'd been talking about before you move on.
7.4.5 Negotiation strategy
Negotiations can be different at different point because if the prospect is really in need to buy a
residential apartment and your pitch is perfect with availing discounts then it’s a win-win
situation. Sometimes prospect is very tough to crack as he also carries some information about
that region.
35. 8. FACTOR ANALYSIS BASED ON FACTORS AFFECTING INVESTMENT
DECISIONS
Purpose
The basic purpose of this research is to find out the factors affecting the buying decision of
potential buyers to invest in Indiabulls real estate.
Problem
The objective of every company would be ensuring customer satisfaction and to increase it’s
customer base.
To find out problem is the first stage of the research process. It represents translating the
management problem into research problem.
A consumer does not know the brand image of Indiabulls, and because of that it is losing his
share to other local builders.
Objectives
The objective of the study was to find out the factor responsible which affect people’s buying
decision
SAMPLE
Sampling Frame:
A Sampling frame consists of a list of item from which the sample is to be drawn.
The sample frame for this research constitutes the customers of Delhi/NCR Region.
Sample Size:
The sample size of the research was 100 individuals.
Factor analysis is a data reduction/summarization technique. Generally in market research there
are many factors/variables which are correlated which needs to be reduced to manageable levels.
Generally factor analysis is used where multi co-linearity exists. For factor analysis to run the
null is that the correlation matrix is an identity matrix.
Methodology:
Initially 7 factors were identified to carry on the survey through an analysis. This was further
cleaned into a list of questions in a questionnaire (refer annexure). Once framed and properly
fragmented, these were individually filled for a process of Descriptive Research. This gave a
congregated set of 100 responses which were then segregated and keyed into SAS. SAS was
extensively used to narrow down the factors into components.
36. 8.1 Factor Analysis Feasibility
Fig 5.
Partial Correlations Controlling all other Variables
Quality Price Location Advertisement Competitors Income
Market
Forecast
Quality 1.00000 0.28650 0.16802 0.16511 0.08877 -0.08703 -0.19397
Price 0.28650 1.00000 0.10917 0.03290 0.12396 0.12581 0.19299
Location 0.16802 0.10917 1.00000 -0.15874 0.10722 -0.00126 0.08144
Advertisement 0.16511 0.03290 -0.15874 1.00000 0.08480 0.08182 0.19154
Competitors 0.08877 0.12396 0.10722 0.08480 1.00000 0.14464 0.02493
Income -0.08703 0.12581 -0.00126 0.08182 0.14464 1.00000 -0.15217
Market Forecast -0.19397 0.19299 0.08144 0.19154 0.02493 -0.15217 1.00000
(1)Low Partial Correlations indicate more suitability of factor analysis.
Fig 6.
Kaiser's Measure of Sampling Adequacy: Overall MSA = 0.52427009
Quality Price Location Advertisement Competitors Income Market Forecast
0.50688796 0.58803793 0.56518950 0.47235533 0.68167915 0.43931811 0.36050978
(2) Higher values Kaiser’s Measure (closer to 1) indicate more suitability of factor analysis
Kaiser-Mayer-Olkin (KMO) test is to test the appropriateness of the factor analysis, if the value
is between ‘0.5 to 1’, the test is considered to be significant The factor analysis stands to be
appropriate as KMO is 0.524 i.e. more than 0.5.
37. 8.2 Variables used in the project are:
Fig 7.
No. Variables
1 Quality
2 Price
3 Location
4 Advertisement
5 Competitors
6 Income
7 Market Forecast
8.3. Principal Component Analysis:
Fig 8.
Eigenvalues of the Correlation Matrix: Total
= 7 Average = 1
Eigenvalue Difference Proportion Cumulative
1 1.71628238 0.54350558 0.2452 0.2452
2 1.17277680 0.05589553 0.1675 0.4127
3 1.11688127 0.15762624 0.1596 0.5723
4 0.95925503 0.17051854 0.1370 0.7093
5 0.78873649 0.07049808 0.1127 0.8220
6 0.71823841 0.19040881 0.1026 0.9246
7 0.52782961 0.0754 1.0000
38. 8.4. Eigen Vectors
3 factors will be retained by the MINEIGEN criterion.
Fig 9.
Eigenvectors
1 2 3
Quality 0.47966 -0.22341 -0.12355
Price 0.55021 0.05376 -0.10019
Location 0.34861 -0.30288 -0.50817
Advertisement 0.27967 0.54089 0.37704
Competitors 0.44713 -0.07153 0.21418
Income 0.20571 -0.23623 0.66527
Market Forecast 0.15876 0.70851 -0.29300
Here criteria is minimum eigen value is 1 for retaining(extracting) factors(principal
components)
Here first component, the variables are sharing 24.52% of common variance. (1.716/7
*100)
The total common variance as shared by the variables in the two factors obtained is
41.27% (0.2452 + 0.1675).
39. 8.5 Factor loadings and communality:
Fig 10.
Factor Pattern
Factor1 Factor2 Factor3
Quality 0.62839 -0.24195 -0.13057
Price 0.72082 0.05822 -0.10589
Location 0.45671 -0.32800 -0.53705
Advertisement 0.36638 0.58576 0.39846
Competitors 0.58577 -0.07747 0.22635
Income 0.26949 -0.25582 0.70307
Market Forecast 0.20798 0.76728 -0.30965
Fig 11.
Variance Explained by Each Factor
Factor1 Factor2 Factor3
1.7162824 1.1727768 1.1168813
Fig 12.
Final Communality Estimates: Total = 4.005940
Quality Price Location Advertisement Competitors Income Market Forecast
0.47046133 0.53417972 0.60458843 0.63611980 0.40036388 0.63237731 0.72784997
Factor Pattern consists of factor loadings (correlation between the original variables and the
factors obtained).
Squaring these values and adding all them for each factor (along column) gives eigen
value(variance explained for the factor).
Squaring these values and adding them for each original variable(along row) gives
communality(common variance).
41. Final Communality Estimates: Total = 4.005940
Quality Price Location Advertisement Competitors Income Market Forecast
0.47046133 0.53417972 0.60458843 0.63611980 0.40036388 0.63237731 0.72784997
Fig 16.
Varimax rotation is orthogonal rotation which is done to shift the factor loadings in such a way
that it is clearly evident that certain original variables belong to certain factors without changing
the communality estimates.
We can categorise the factors into three factors and name them as follows:
Quality, Price, Location and Competitors belong to Factor 1
Factor 1 can be named as Competitive Advantage
Advertisement and Market Forecast belong to Factor 2
Factor 2 is named as External Factor
Income belongs to Factor 3
Factor 3 is named as Internal Factor
.
42. 9. INTERPRETATION OF RESULTS OF THE RESPONSES OF
THE QUESTIONNAIRE
1. Indiabulls comes first to the mind of the 41% respondents , DLF Ltd. to 50% of
respondents and other companies(including Sobha Developers,Omaxe, Oberoi Realty,
HDIL and Godrej properties) to 9% respondents.
2. Out of the respondants 8% are customers of Indabulls,
3. Percentage of respondents aware is 49% about Real Estate, 11% about Power, 65% about
Trading, 15% about Infrastructure and 34% about Financial Services.
4. 15% respondents have seen advertisement of Indiabulls on Billboards, 23% on
Magazines, 25% in Newspapers, 54% Online, 24% on TV and 37% have never seen any
of their adverts.
5. Rating of Indiabulls given by respondents on various aspects are as follows:
Extremely well Extremely poor
1 2 3 4 5
Reliability 10 30 31 25 4
Selection 10 3 53 31 4
Customer service quality 10 10 42 26 12
Customizability 10 15 44 24 6
Innovativeness 10 6 37 44 4
Time Saving 13 20 31 32 2
Ease of use 12 18 34 32 4
value for price 10 14 28 33 15
Helps you be more
Successful 10 13 38 35 4
44. 10. Pie – Charts and Bar Graphs representing responses of questionnaire.
Indiabulls comes first to the mind of the 41% respondents , DLF Ltd. to 50% of respondents and
other companies(including Sobha Developers,Omaxe, Oberoi Realty, HDIL and Godrej
properties) to 9% respondents.
Hence, we can see that Indiabulls comes next after DLF when respondents think of Real
Estate.
45. Out of 100 respondents 8% are customers of Indiabulls and rest 92% are not.
Hence, Majority of the respondents are not the customers of Indiabulls.
46. Percentage of respondents aware is 49% about Real Estate, 11% about Power, 65% about
Trading, 15% about Infrastructure and 34% about Financial Services.
Hence, for Indiabulls the Real Estate awareness stands second after Trading.
47. Hence, making a right choice of the brand is Most Important for customers.
48. 15% respondents have seen advertisement of Indiabulls on Billboards, 23% on Magazines, 25%
in Newspapers, 54% Online, 24% on TV and 37% have never seen any of their adverts.
So,we can see that a major portion that is 37% of the respondents have not seen the adverts of
Indiabulls anywhere.
49. Majority of the respondents are neutral about the affect of Advertisement in their
investment decision with Indiabulls Real Estate.
50. Majority of the respondents are neutral but mostly agree about the affect of Competitors in
their investment decision with Indiabulls Real Estate.
51. Majority of the respondents are agree about the affect of Income in their investment
decision with Indiabulls Real Estate.
52. Majority of the respondents agree about the affect of Location in their investment decision
with Indiabulls Real Estate.
53. Majority of the respondents agree about the affect of Market Forecast in their investment
decision with Indiabulls Real Estate.
54. Majority of the respondents strongly agree about the affect of Price in their investment
decision with Indiabulls Real Estate.
55. Majority of the respondents strongly agree about the affect of Quality in their investment
decision with Indiabulls Real Estate.
56.
57.
58.
59.
60.
61. Hence, Majority of the respondents are Most Likely to recommend Indiabulls to someone
else.
62. 11. SUGGESTIONS
1. Brand
Brand refers to the value addition endowed on the products or services of a company. It creates
recognition difference from other products which makes the Brand Name an Asset for the
Company. It is evident from the research findings that for majority of respondents say that
making a right choice of brand is most important to them.
So the company needs to focus on building the brand Indiabulls and make people trust that it’s
the right choice of brand
2. Advertisement is important for branding.
Advertising is an important tool for creating Brand Recognition. It constantly reminds the
customers about the product/service a company has to offer. Common Sources of Advertising are
Print Media (including Flyers & Brochures), Electronic Media, Internet Promotions, Community
involvement, Blogging & Newsletters.
So the company must increase its advertising so as to make more number of people aware about
its various products and services
3. Factors affecting the investment decision of customers and hence the sales of the
Product.
Here we are analyzing the factors affecting the investment decision of customers. So I made a
questionnaire & asked the customers to fill out the copies of the questionnaire to gain insights of
the factors which affect the buying behavior of the customers.
These Factors include:
Quality, Price, Location and Competitors belong to Factor 1 named as Competitive Advantage
Advertisement and Market Forecast belong to Factor 2 named as External Factor
Income belongs to Factor 3 named as Internal Factor
63. 12. OUTCOME , CONTRIBUTION AND LEARNING
A factor analysis was conducted to find out the factors affecting the investment decisions. A total
of 7 factors were considered, on a population of 100, out of only three dominant factors came out
with the help of which it can be explained that there are some external and internal factors that
affect a persons’ investment decision.
I have contributed to the company by sincerely doing the following work assigned to me:
Sales of the product (here projects of Indiabulls) which involve Personal Selling by
calling to the Customer Base and getting leads to sell the Realty properties.
To Constantly look for the clients in Delhi-NCR region who are willing to make
investment in Real Estate.
Stall Marketing by having the stalls in the under-construction sites of Indiabulls.
Presentations are to be given to clients to build a strong customer base.
Meeting the customers to make offers face to face and converting these leads into
potential prospects.
Site Visits and Visit to houses in the nearby areas to understand factors influencing their
decision making in buying their property.
Promotion of sales in Delhi- NCR.
Conducting Marketing Research by collection of data through various sources.
I have done all the possible efforts and has tried and achieved the following
Learning Objectives:
Corporate Exposure
Understanding business of Indiabulls, its Business Model, Products/Services,
Organizational Structure, Organizational Policies, etc…
Understanding the strategies of marketing in Real Estate.
Mapping the issues with the Concepts.
Application of Market Research
Through the course of my summer internship programme, I understood the functioning of the
real estate industry and got insights about Indiabulls Securities Ltd. and its subsidiary company
Indiabulls Distribution Services Ltd. (IDSL).I have also gained convincing ability by talking to
customers while making sales calls and meetings.
64. APPENDIX
Brand Awarenss of Indiabulls in Delhi-NCR
This is a general survey conducted for the purpose of my Internship to find the
Awareness of people in Delhi-NCR about the Brand Indiabulls.
1. Which of the following companies comes first to your mind when you
think of Real-Estate?
o Indiabulls
o DLF Ltd.
o Godrej Prop
o HDIL
o Oberoi Realty
o Omaxe
o Sobha Developer
2. Are you a customer of Indiabulls ?
o Yes
o No
3. Which Products/Services of Indiabulls Securities are you aware of ?
o Real Estate
o Power
o Financial Services
o Infrastructure
o Trading
65. 4. How important would it be to you make a right choice of the brand ?
1 2 3 4 5
Least Important Most Important
5. Where have you seen advertisements for Indiabulls ?
o Billboards
o Magazines
o Newspapers
o Online
o Public transportation
o Radio
o TV
o Yellow Pages
o I've never seen any of their adverts
6. Rate the factors that affect your investment decisions with Indiabulls
Real Estate?
1-strongly agree, 2-agree, 3-neutral, 4-disagree, 5-strongly disagree.
1 2 3 4 5
Quality
Price
Location
Advertisement
Competitors
Income
Market
forecast
66. 7. Please rate how well Indiabulls performs in each area below
Rate 5 for 'Extremely well' and rate 1 for 'Extremely poor'
1 2 3 4 5
Ease of use
Value for the
price
Reliability
Selection
Customizability
Customer
service quality
Innovativeness
Saves you time
Helps you be
more
successful
8. How likely are you to recommend Indiabulls to someone else?
1 2 3 4 5
Not at all likely Extremely likely
9. Name
10. Your Current Location
11. Salary (appx.)
67. REFERENCES
Sites:
www.indiabulls.com
www.secgov/investor/pubs/financialnavigating.html
economicstimes.indiatimes.com>opinion
en.wikipedia.org/wiki/marketing_research
en.wikipedia.org/wiki/porters-five-factor
www.indianground.com
www.indianrealestateforum.com
www.assocham.org
www.sezindia.nic.in
www.indiainfoline.com/Markets/Company/Background/Company-Profile/Indiabulls-
Securities-Ltd/532960
www.ibef.org/industry/real-estate-india.aspx
www.theofficialboard.com
www.realestatemarketingplanstrategies.com
Books:
Kotler Philip et al, 2009. Marketing Management. A South Asian Perspective. New
Delhi: Dorling Kindersley (India) Pvt Ltd. Pearson Education
Al Ries and Jack trout, 1972. Principles of Marketing Management.
Thesis:
Maiju Laiho & Eini Inha, 2012 Bachelor Thesis C- level. Brand image and brand
awareness. Case study: Finnair in Indian market . www.hh.se,Halmstad University
