3. But first we need to understand how a real estate
company operates
4. Our focus is on the development
phase of the property cycle
• There are several functions that ensure a well run real estate property
development project/company
Developm
ent
UseDisposal
5. The property life cycle
• The cycle holds good for all property, commercial as well as residential as well
corporate procurement
Development
UseDisposal
6. The departments in a typical real estate company
• Accounts & Legal
• Managing legalities and smooth flow of money
• Administration & Operations
• Ensuring the company and its projects functions without
any problems
• Sales & Marketing
• Key department in ensuring closing deals and attracting
customers
• Design & Architecture
• The creative department that starts the process of building
homes
• Procurement/letting/leasing department
• Identifying right kind of properties to procure
7. We now look at how each department gets impacted
as we build a strong real estate brand
8. But why do we need to build a brand? Is there a
benefit?
A strong brand can sustain bad times.
Consumers choose strong brands at times of uncertainty.
9. There are far too many builders in Bangalore but very
few are actual brands
• If asked consumers will have differing opinions about each companies / brands idea
or strategy
10. Yet they are identifiable names and therefore mighty
competitors
11. We need to be able to stand apart in this crowd and in
order to do that we need to find that winning strategy
• A way to differentiate ourselves from the herd and be seen without
spending too much money
• A strategy which gives us cut through without too much spends
12. But more than that brands contribute to your bottom
line
• They are worth their weight in dollars and allow you to sustain bad times
and grow exponentially in the good times.
14. Apple Inc.’s market cap is
$446.99 billion dollars and the
value of the brand is $182.95
billion dollars
• This means without the brand value, Apple Inc. would be worth $264 billion dollar.
• A huge bite out of the whole.
15. Coca Cola’s market cap is 170 billion
dollars and its brand value is 74 billion
dollars which is 44% or the company’s
value
• The glass would be only half full without
the dollar value of the brand name
17. Sticking to the basics:
Quality & Service
Well designed homes
Smooth and easy sales process
Good advertising and good after sales service
18. Quality and service
• Sales department
• Prompt availability of information
• Site visits with detailed information of the property from layout to financials
• Design & Architecture and Operations
• Good solid design with all the necessary expectations, timely progress with timely
delivery
• Legal and Accounts
• Easy paperwork with documentation and clauses explained and simplified
19. Many make such claims but few
live up to the promise.
If one brand manages to deliver
on the basics it stands apart
• One example of this in another category is IndiGo
• The company leads in domestic share of air travel
by promising the most basic of needs from that
sector: On time
21. The targeted model
• Design & Architecture
• Changes with each new project based on the target audience
• Procurement
• Finding the perfect location based on the demographic and psychographics of the TG
• Marketing
• The right kind of messaging, without being generic, focusing only on those things that
differentiate such as the right kind of amenities for the right audience
• Sales
• If talking to HNIs then giving them a luxury experience before they buy the home of if talking
to business people then keeping the sales process no-nonsense
22. Impact of the targeted model
• Location
• Based on demographic chosen the location would differ
• Amenities based on audience
• For low priced apartments you may have more amenities but very specific kind of services and
amenities for high priced condos
• Number of apartments per floor
• This can become a selling point if there are fewer apartments in mid range condos with greater floor
rise
• Design of building
• More light & air or a different design style suited to more traditional audience or a more modern
audience
29. Illustrating with examples from
other categories
• Fastrack today can sell any product as long as it is for
the youth and it is a budget product
• If it is expensive, for an older audience and not stylish then
it is not Fastrack and hence will not sell
30. Illustrating with examples from
other categories
• Maruti Suzuki has become known for fuel efficient
cars, easy maintenance and value for money
• They are not known for luxury or status symbols
• Hence the failure of Baleno, Kizashi and the Grand Vitara
31. Illustrating with examples from
other categories
• Honda today is expanding into more segments
including value segments
• They sell both the Brio as well as the CRV with equal
success
• They established themselves in the premium segment and
then brought out value offerings
32. Implications
• For a consumer buying a home a brand name is important
• It establishes credibility and trust
• It also gives them an address they can proudly speak about
• Homes are very high involvement purchases and for most Indians buying a home comes after much hard
work and the loans take several years to pay
• Hence if a builder is known for creating low cost homes, a luxury address from the same builder does not
have the same status impact
• Yet a builder known for building luxury properties creates a budget property it lends credibility to their
brand name
33. Route 2 allows us to choose the kind of builder we
want to be such as a niche property builder who
makes semi luxury homes and then diversify
34. A higher order benefit where the
destination speaks about your personality:
A Ideology
35. Regardless of brand or region, Consideration is definitely
heightened if the brand is perceived to have a POV.
36. “Coke believes the world would be a better place
if we saw the glass as half full not half empty.”
38. • “Dove believes the world would be a better place
if women were allowed to feel good about themselves.”
39. The brand’s point of view on how things should be.
“One must be something in order to do something”: Goethe
Great brands are caused by a cause: great brands have a purpose higher than profit
The answer to higher growth lies not in the question ‘how to grow more?’ but in ‘how do we mean more?’
40. An Ideology
• A higher order benefit speaks to your consumer about the kind of homes you
build
• To your customer it gives an ideology that they believe in and their home
reflects the same
• While creating such homes are not easy or cheap, they create a very specific
space for your brand in the consumers minds becoming more desirable
• This also allows us to charge a premium for the property
41. Examples of Ideology:
Environmentally friendly homes or green homes
• Rain water harvesting and water
recycling plant
• Green building material
• Garden space and lesser trees cut
42. Examples of Ideology:
Architectural styles
• Reviving lost architectural styles
• Creating buildings based on a single
design philosophy like using natural
surroundings to create homes
43. Examples of Ideology:
Honest Builders
• No cash transactions
• Absolute transparency
• No hidden costs or clauses
44. But to choose this last route, one
needs to clearly decide on the
vision of the company
• In the last instance each department of
the organization aligns itself to the
ideology.
45. Deciding what we are can be arrived at through the
following models
Who Am I?
Who Am I For?
Why Buy Me?
46. The concept of challenger brands
How they compete against brand leaders
• Source: Eating the big fish - Adam
Morgan
47. The leaders advantage
• No. 1 of the category, thus change averse
• They are convention driven
• Has huge backing of critical mass
• ‘The superiority of their advantage increases almost exponentially the larger they get’
• The law of increasing returns
• What the law of increasing returns means is that the challenger has to swim considerably harder
than the brand leader just to remain in the same place
48. On the other hand
• Challengers are disruption driven
• Aim to dislodge the No.1
• David vs Goliath
• Ask: Why Not ?
• Challengers are change catalysts
• They are by nature restless and in the courage zone
49. What challengers do
1. Redefine the Category
2. Make a Powerful Statement
3. Assume Thought Leadership
4. Create symbols of re-evaluation
5. Sacrifice & Choices
6. Big Bang News
7. Out Maneuver
8. High Media Presence
9. Become Idea Centered
10. Mischievous Disruptions
