A Study on Marketing Strategy of Earth Infrastructure Ltd

8/11/2019 A Study on Marketing Strategy of Earth Infrastructure Ltd

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CHAPTER I

INTRODUCTION

Overview of Industry as a whole

The real estate sector is a critical sector of Indiaseconomy. It has a huge multiplier effect

on the economy and therefore, is a big driver of economic growth. It is the second-largest

employment-generating sector after agriculture. Growing at a rate of about 20% perannum and this sector has been contributing about 5-6% to Indias GDP. Not only does it

generate a high level of direct employment, but it also stimulates the demand in over 250

ancillary industries such as cement, steel, paint, brick, building materials, consumer

durables and so on. The Indian real estate industry has been on a roller coaster ride since

2005. Consequent to the governments policy to allow Foreign Direct Investment (FDI) in

this sector, there was a boom in investment and developmental activities. The sector not

only witnessed the entry of many new domestic realty players but also the arrival of many

foreign real estate investment companies including private equity funds, pension funds

and development companies entered the sector lured by the high returns on investments.

The real estate sector has been riding through many highs and lows since then. The

industry achieved new heights during 2007 and early 2008, characterized by a growth in

demand, substantial development and increased foreign investments. However, by mid

2008, the effects of the global economic slowdown were evident here too, and the

industry took a U turn. FDI inflow into real estate dropped significantly and what had

emerged as one of the most promising markets for foreign investments experienced a

downturn.

Profile of the organization

Earth Group has a team of dynamic, young professionals who are qualified and highly

experienced in management and marketing. Their motto lies in keeping their customers

happy. The structured and unified marketing model followed by the Earth Group Team

has helped in building a strong network of channel partners, both in the residential and


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commercial segment. Earth Group also has a customer care center that comprises of

experienced executives. Periodic training and onsite experience ensure the staff is always

towards meeting the demands of the industry. A vast data base of customers is maintained

and they can call for inquires, feedbacks and complaints.

Vision of the Organization

To set a new benchmark in conventional real estate world by becoming the most

innovative and trusted brand with the adoption of new technologies and a centric focus on

green and eco-friendly construction to fulfill the customers' expectations.

Successful businesses are on a never-ending quest for improvement. And marketing and

communications are key ingredients to success. At Vision, we believe that strategy is

essential to success.

Vision Strategic Marketing & Communications helps select companies with high growth

potential reach their business goals through marketing strategies. Whether you are

expanding your product offering, services, or market proposition, looking for additional

customers in new or existing markets, or really need to get the right people to hear the

right message, a strategy can help you do it better, faster, and more cost-effectively.Operating in a unique space spanning strategic planners and marketers, Vision Strategic

Marketing & Communications brings growth-oriented critical thinking as well as

marketing execution and expertise to the table. We're here to help you evaluate what

you're currently doing and improve it, or help you get launched in a fresh new direction.

We'll work with you to define your specific objectives, and develop and implement the

communications necessary to achieve them.

Unlike traditional marketing firms, Vision Strategic Marketing can offer high quality, low

cost execution through scalable resources with skills paired to clients needs. Quality and

creativity are yours at competitive prices as the result of intelligent management that

utilizes scalable resources to respond to your needs. When you're ready to get started,

start with vision.

Goals are well-defined, targeted statements that give you clarity, direction and focus. It is

important for the small business owner to define what you need to do to achieve your

vision in measurable and realistic terms. If a marketing goal is to increasevisibility for


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your Website, then you need to include by when and specific criteria with which you can

measure your results. Ideally, you should have only 2 or 3 goals that you want to work

towards in a 3-6 month timeframe. Any more than that, you risk taking on too much and

achieving nothing

Acommonapproachtodeveloping your goals is to use the formula for the five

characteristics of well developed goalsS.M.A.R.T.

SpecificWhat exactly are you trying to accomplish? The more specific you can

be, the more likely the goal will be accomplished.

Measurable How do you know if you are successful? Answer the questions

How much?, How Many?, and By When?

Attainable Is this realistic based on the resources you have or can acquire to

achieve them or a major obstacle to success? The best goals should encourage you

to reach, but not so far as to involve unavailable resources or unrealistic

expectations.

RelevantWill this goal help you reach your vision? Setting goals that do not

align themselves with your ultimate outcome will divert your attention from those

that help you get where you want to go.

TimelyWhat is the deadline for this effort? Without having specific time frames

associated with each goal, you most likely will not achieve them because the day

to day interruptions will take over.


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Mission of the Organization

One face, one voice: There will be one face and voice of the Earth Group, for the

outer world.

Customer centric attitude:At earth, we aim to overreach our commitments with

customers by providing eco-friendly construction resolving their issues most

efficiently and at the fastest pace possible.

Brand value:Creating projects after meticulous planning and delivering them

keeping in mind the customer, therefore, building trust.

Innovation through technology: Using modern integrated technology to identify,

create and deliver something new.\

Corporate social responsibility:Earth Group will focus on the development of

affordable houses for the masses.

Employee culture:The constant search for dynamic young professionals will

always exist; at the same time the existing employees will have training sessions

in order to facilitate their growth in the organization.

Character, ethics and values:Earth Group will function in accordance to its

policies, which will be maintained through the company's operational manual. The

manual would be adhered to at all the times with an ultimatum given to those who

don't. This adherence would, therefore, create an "Ethical Brand Value" for Earth

Group.

Philosophy:Our philosophy is 'Innovation beyond imagination'. We believe in

creating fine urban living through our experience in the realty sector. We are

committed to high quality constructaaxaion with absolute customer satisfaction.

We are looking to develop world class townships and commercial complexes in

various prime locations of the country.

A mission describes the organizations basic function in society, in terms of the products

and services it produces for its customers.


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:

Figure no. 1: Elements of Business Mission

A clear business mission should have each of the following elements.


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History of the Organization

A little more than four years ago, on Earth Day April 22nd 2010, the idea of Earth

Infrastructures Ltd. took a rudimentary shape in the hearts and minds of the founders of

this company - and they set out to fulfill their dreams by building up a unique real estate

company rooted in genuine concerns for a greener and happier earth and based on the

theme of innovation that goes beyond imagination.

With the collective effort of management and all who shared this dream, a vision was

born to not only become the most innovative and trusted brand in real estate industry by

adopting new technologies with a focus on green and eco-friendly construction in sync

with Vedic knowledge about Vaastu for healthier and prosperous life with a view to fulfill

the expectations of the times - but also to establish a customer relationship based upon

trust, ethics and transparency that would ensure both pleasurable living and buying

experience for all stakeholders.

Gradually, during the short span of just four years, largely because of the untiring efforts

and hard work put in by all who joined its bandwagon of unprecedented growth story,

Earth Infrastructures Ltd. grew from strength to strength, adding one milestone upon the

other and striking some important 'Firsts' in the Indian realty sector - like, First Green

Building in Greater Noida (West), First Bank Guarantee Project in India and First

Assured Commitment Amount Offer in Retail Project in Gurgaon. As a responsible

corporate citizen keep to contribute its share in nation, Earth entered into a "Knowledge

Partnership" with India's No. 1 private university, Amity University, which happens to be

the only university to offer MBA in real estate industry related disciplines - the first time

when real estate industry and academy have agreed to work together for the betterment

and produce specialized manpower for the Real Estate Industry.

As time rolled by, more and more qualified and motivated professionals came on board

and Earth started emerging in the leadership row of industry players on the national level.

Earth's offices were opened across the length and breadth of our nation, and its business

network grew leaps and bound.Today, after completing four eventful years of corporate

presence, Earth remains no longer a solitary real estate company but stands tall as Earth

Group of Companies right in the forefront of the fastest emerging key players in the


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Indian real estate landscape with 11 running projects, 50+ offices, 1500+ employees,

15000+ satisfied customers, and 12 million+ sq. ft. space under construction.

And, all this has been possible not only because of the continued support, trust and belief

of our strong legion of satisfied customers, employees, investors and associates but also

because at the heart of our innovation lies our strong bonding with nature and our

unflinching support in re-making our planet Earth - beset with the woes of global

warming, ozone depletion and environmental pollution - a better and greener place for

mankind to live.


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CompetitorsInformation

As we know that the real estate sector in on boom. Reason is that it gives more profit not

only to the company but also to the investor. In the market lots of real estate company

who are trying to capture more and more market. The following are the competitors of

Earth Infrastructure Ltd :-

No. Name Of Real Estate Company

1. DLF

2. Oberoi Realty

3. JaypeeInfratech Ltd

4. Godrej Group

5. Prestige Estate

6. Sobha Developers

7. Omaxe Ltd

8. Puravankara

9. Parsvnath Developers Ltd

10. DB Realty

Table no. 1: Competitors Information


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DLF

DLF is an iconic brand in India as far as real estate is concerned. DLF is the

number one company in India and no other company comes even close to it.

Moreover, as the country grows DLF will be going to expand rapidly in coming

days.

Founder:DLF was founded by KP Singh in year 1946. Although initially

company was bit dormant but it started growing rapidly in yearly 90s.

Now under the leadership of KP Singh it has emerged as worlds leading

player as far as real estate business is concerned.

Market Value: Total turnover generated by this company is Rs 25,000

crore. Number one in India.

Construction Business:DLF constructs many other things except homes.

Like structures for Commercial and Retail sector also.

Website:http://www.dlf.in/

Oberoi Realty

Oberoi Realty is second company in our top 10 list of real estate companies. Flats

constructed by Oberois are for upscale clients. In simple words, they are very

costly at least 80% higher than flats constructed by other developers.

So flats developed by this particular developer are very posh and everyone cannot

afford it.

Founder:Right now the managing director is Vikas Oberoi. It was

founded by Oberoi family in 1980.

Market Value:Total revenue generated is Rs 5647 crore way less than

DLF.
http://www.dlf.in/http://www.dlf.in/http://www.dlf.in/


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Construction Business:Apart from residential flat they also construct

hotels, retail and social infrastructure also.

Website:http://www.oberoirealty.com/

Jaypee Infratech Ltd

You might have heard about Jaypee cement, although its core business is not

constructing residential flats but still it is 3rdbest company in our top 10 list.

Flats constructed by them are very good and affordable.

Founder:JaypeeInfratech was founded by Jai Prakash Gaur in year 2007.

You could imagine how young this company is. It has grown rapidly over

the last 5 years. The company is headquartered at Noida.

Market Value:its market value is well over Rs 5000 crore.

Construction Business:Jaypee is perhaps most diverse real estate

company in India. Apart from building residential flats Jaypee Ltd is

responsible for many industrial outputs also. They also develop

infrastructure for recreational activities like parks and educational

institutions.

Website:http://www.jaypeeinfratech.com/

Godrej Group

You might have heard about Godrej. Like Jaypee Ltd Godrej company is very

diverse and they manufacture many other commercial goods apart from building

flats.

The apartments are very good and we rank it 4thin our list.

Founder:Godrej group was founded by Adi Godrej in 1990. It is

headquartered in Mumbai near Vikroli. The presence of Godrej company
http://www.oberoirealty.com/http://www.jaypeeinfratech.com/http://www.jaypeeinfratech.com/http://www.oberoirealty.com/


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in real estate business could be seen in Mumbai but it is very limited when

it comes ton other cities of the country.

Market Value:The companys total turnover is around Rs 3800 crore.

Construction Business:Apart from residential complex they also

construct township projects also.

Website:http://www.godrejproperties.com/

Prestige Estate

Although, according to market capitalization prestige is third largest real estate

company after DLF and Oberoi realty but according to our ranking system we

prefer the customer satisfaction over the fact that how big company is.

Therefore Presitge estate is really great at developing commercials complexes like

shopping malls, golf course over residential flats.

Founder:Prestige estate was founded by RazakSattar in 1986. It is

Bangalore based company that reaches out to many other metropolitan

cities of India.

Market Value:Total turnover is Rs 4400 crore.

Construction Business:They develop commercial offices, shopping

malls, hotels, villas etc.

Website:http://www.prestigeconstructions.com/

Sobha Developers

Sobha developer is a multinational real estate company with footprints in Gulf

countries also. It is 6thbest company in our top 10 list of real estate companies in

India.

If you live in Bangalore you could get an apartment build by Sobha developers.
http://www.godrejproperties.com/http://www.prestigeconstructions.com/http://www.prestigeconstructions.com/http://www.godrejproperties.com/


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Founder: The Company was founded by PNC Menon in Bangalore. It is

Bangalore based company that is engaged in many projects in the city.

Market Value:Sobha developers market value is around Rs 3200 crore.

Construction:They develop townships, housing projects, commercial

premises etc.

Website:http://www.sobhadevelopers.com/

Omaxe Ltd

Omaxe is 7thtop real estate company in India.

The township projects of Omaxe are really great compared to flats.

Founder: The company was founded by RohtasGoel in 1989. The

company is located in New Delhi.

Market Value:The total turnover of the company is around Rs 2400

crore.

Construction Business:Residential flats, townships, commercial

infrastructure.

Website:http://www.omaxe.com/

Puravankara

Puravankara is 8thin our top 10 list of real estate companies. Purvankara is a real

estate company that mainly focuses in cities of southern India.

Founder: Company was founded in 1986 in Mumbai. Interestingly few

years back the company was shifted from Mumbai to Bangalore.
http://www.sobhadevelopers.com/http://www.omaxe.com/http://www.omaxe.com/http://www.sobhadevelopers.com/


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Market Value:The market value of the company is Rs 1755 crore. The

company has achieved many milestones and is all set to achieve many

more.

Construction Business:They construct residential homes, townships,

villas etc.

Website:http://www.puravankara.com/

Parsvnath Developers Ltd

Parsvnath developers is 9thlargest real estate company in India.

The residential flats constructed by the company are really great if you live in

New Delhi NCR area.

Founder: The company was founded by Pradeep Kumar Jain in year

2000. The company is based in New Delhi and develops the area

surrounding the Delhi NCR.

Market Value:The market value of the company is Rs 1200 crore.

Construction Business:They develop commercial properties, malls and

hotels.

Website:http://www.parsvnath.com/

DB Realty

DB realty is last in our countdown list.

Founder:The company was founded by VinodGoneka and ShahidBalwa

in 2007. It is also very young company like JaypeeInfratech Ltd. It is

located in Mumbai.

Market Value:The total asset of the company is around Rs 1400 crore.
http://www.puravankara.com/http://www.parsvnath.com/http://www.parsvnath.com/http://www.puravankara.com/


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Construction Business:They are into residential as well as commercial

both, present mainly in Mumbai.

Website:http://www.dbrealty.co.in/

We have ranked the companies on the basis of customer satisfaction not necessarily on

the market capitalization.
http://www.dbrealty.co.in/http://www.dbrealty.co.in/


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S.W.O.T Analysis of the Organization

Figure 2: SWOT Analysis

A SWOT analysis(alternatively SWOT matrix) is a structured planning method used to

evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in

a business venture. A SWOT analysis can be carried out for a product, place, industry or

person.It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable to achieve

that objective. Some authors credit SWOT to Albert Humphrey, who led a convention at

the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data

from Fortune

500 companies. However, Humphrey himself does not claim the creation of SWOT, and

the origins remain obscure. The degree to which the internal environment of the firm

matches with the external environment is expressed by the concept of strategic fit.

Strengths: characteristics of the business or project that give it an advantage overothers.


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Weaknesses: characteristics that place the business or project at a disadvantage

relative to others.

Opportunities: elements that the project could exploit to its advantage.

Threats: elements in the environment that could cause trouble for the business orproject.

Following are the Strength, Weaknesses, Opportunities and Threats of Earth

Infrastructure:-

Strengths:

Fastest Growing Company

Focused Portfolio

Strong Financial Background

Experienced Leadership & Management Team

Leed Certified- Green Building Concept

Architect- Eigen

Wide Sales & Marketing Network

International Presence

Projects in SEZ area

Weaknesses:

Slow pace of development of the projects.

Brand name is not much known as compared to the major players of real estate in

the market.

Opportunities:

Capturing prime locations in Delhi/ NCR - which would attract more investors in

future.

Greenology concept can attract more investors in comparison to other developers.

Economical and Innovative promotional strategies.


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Threats:

Well established developers prevailing in the market.

Threat of New entrants.

Change in Government policies.

Unorganised sectors in real estate, like, small scale brokers and property dealers

etc.


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Objective of study

The first & foremost step in any Study work is to identify the problems or objectives on

which the researcher has to work on. There are types of objectives met in this study, as

explained below:

To study marketing strategies of Earth Infrastructure Ltd.

To know about 7 Ps of real estate investment.

To determine Early marketing strategy concepts.

To determine business plan of Earth Infrastructure Ltd.

To analyze the Marketing Mix of Earth Infrastructure Ltd.

To understand the Promotional Strategy of Earth Infrastructure Ltd.


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Scope of study

This will help us to know the market trends, demand and consumption patterns, future

prospectus in term of potential growth, consumer test and buying behavior for the Earth

Infrastructure Ltd.`s commercial products and other aspects related to marketing and sales

promotion. The objective of the project includes Business Development at Earth

Infrastructures Ltd. The company has entered the Real Estate sector four years back, so

the basic aim of this project is Business Development that is generating business for them

by attracting investors to the newly launched Residential and Commercial projects. This

would include structuring of the entire business so as to increase the efficiency of the

work done at Earth Infrastructures Ltd. The project would enable Earth Infrastructures

Ltd in Business development of their properties by reaching to the maximum number of

investors. It also aims at developing promotional strategies to increase the number of

investors purchasing their property. The project will also help in measuring the investors

preferences for Earth Infrastructures Ltd projects. In short following few aspects were

taken care of throughout this study:-

Studying marketing network of EIL through Collective Growth Ltd.

Identifying the attributes those compel the clients to select the product.

Studying about the relationship and association of the client with the company.

Identifying the clients response while dealing with Business Development

Executive.

Popularity of company product among customers.

Customers opinion towards Projects.


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Methodology

Method of data collection

Primary data:

Primary data is first hand information. This information is collected directly from the

source by means of field studies. Primary data are original and are like raw materials. It is

the crudest form of information. The investigator himself collects primary data or

supervises its collection. It may be collected on a sample or census basis or from case

studies.

Secondary data:

Secondary data are the Second hand information. The data which have already been

collected and processed by some agency or persons and are not used for the first time are

termed as secondary data. According to M. M. Blair, Secondary data are those already in

existence and which have been collected for some other purpose. Secondary datamay be

abstracted from existing records, published sources or unpublished sources.

The distinction between primary and secondary data is a matter of degree only. The data

which are primary in the hands of one become secondary for all others. Generally the data

are primary to the source who collects and processes them for the first time. It becomes

secondary for all other sources, who use them later. For example, the population census

report is primary for the Registrar General of India and the information from the report

are secondary for all of us.

Both the primary and secondary data have their respective merits and demerits. Primary

data are original as they are collected from the source. So they are more accurate than the

secondary data. But primary data involves more money, time and energy than the

secondary data. In an enquiry, a proper choice between the two forms of information

should be made. The choice to a large extent depends on the preliminaries to data

collection.

The source that is used for the collection of data for this project is secondary data.


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Secondary Source of Data Collection:

Books

Websites


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CHAPTER II

CONCEPTUAL FRAMEWORK

Market

An actual or nominal place where forces of demand and supply operate, and where buyers

and sellers interact (directly or through intermediaries) to trade goods, services, or

contracts or instruments, for money or barter.

Markets include mechanisms or means for

Determining price of the traded item,

Communicating the price information,

Facilitating deals and transactions, and

Effecting distribution.

The market for a particular item is made up of existing and potential customers who need

it and have the ability and willingness to pay for it.

There are many definitions of marketing but one of the simplest suggests that:

"Marketing is getting the right product or service in the right quantity, to the right place,

at the right time and making a profit in the process".

Marketing is about identifying and understanding your customer and giving them what

they want. It's not just about advertising and promoting your business.

Effective marketing is a result of examining every aspect of your business and how it

affects the consumer's end experience. It covers everything you'll need to do in order to

deliver your products and services to the consumer including research, planning, pricing,

packaging, promotion, selling and distribution.


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Marketing Mix

The marketing mixis a business tool used in marketing products. The marketing mix is

often crucial when determining a product or brand's unique selling point; the unique

quality that differentiates a product from its competitors, and is often synonymous with

the four Ps: price, product, promotion, and place. These are defined as:

Product - A product is seen as an item that satisfies what a consumer needs or

wants. It is a tangible good or an intangible service. Intangible products are

service based like the tourism industry, the hotel industry and the financial

industry. Tangible products are those that have an independent physical existence.

PriceThe price is the amount a customer pays for the product. The price is very

important as it determines the company's profit and hence, survival. Adjusting the

price has a profound impact on the marketing strategy, and depending on the price

elasticity of the product, often it will affect the demand and sales as well. The

marketer should set a price that complements the other elements of the marketing

mix.

Promotion- represents all of the methods of communication that a marketer may

use to provide information to different parties about the product. Promotion

comprises elements such as: advertising, public relations, personal

selling and sales promotion and Word-of-mouth.

Place- refers to providing the product at a place which is convenient for

consumers to access. Place is synonymous with distribution.

Various strategies such as intensive distribution, selective distribution, exclusive

distribution and franchising can be used by the marketer to complement the other

aspects of the marketing mix.


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Figure no. 3:Marketing Mix

Product/Service Strategy:

LEED Certified Green Building

Various ranges of Office space from 350 sq. ft. to 1000 sq. ft.

Retail Space available in different cluster of sizes starting from 250 sq. ft.

Fully furnished Studio Apartments for ready to move-in.

Office spaces sub divided into Fully furnished, Semi furnished and raw shell or

Virtual spaces to cater the needs of different customers.

Office and Retail shops are within walking distance from Studio Apartments.

Food Courts and ATM space also available in large sizes.

Price Strategy:

Penetration strategy

Product price range started for Rs. 4200 sq. ft.Rs. 7500 sq. ft

Minimum amount of Investment required

Assured Return of 12% until possession.

Reasonable Price.

Attractive one time discount for customer

PRODUCT PRICE

PROMOTION PLACE

Marketing Mix


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Attractive allowance for dealers

Promotion Strategy:

Activity in Local markets

E-mailing and posting Ad in Property websites

Advertisement in Local newspaper and magazines

Brochure

Sales force (1000+ across country)

Marketing surveys through:-

Canopies

Demonstration

Reference by old customer

Cold call

Place / Distribution Strategy:

Launched in Greater Noida

Positioned at a Prime Location of 650 acres of SEZ

Developments around Earth TechOne like Yamuna Expressway, Universities,

Sports Complex, Racing Track, and various I.T Industries.

High Capital Appreciation of the project

2ndMost planned City

Growing to be one of the largest industrial and education hubs of India


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Evolution of the Marketing Concept

Production Concept

Demand for goods and services > Supply ... therefore consumers gladly purchased what

was being produced. Producers have a captive market. Investment on increasing the

efficiencies of production had the greatest impact on company profitability. Thus smart

businesses focused on increasing productivity, rather than understanding the consumer.

Henry Ford's quote: "The customer can have any color car as long as it is black" is closely

identified with this era! This is appropriate for developing countries, and evolved in the

US with the advent of the industrial revolution.

Sales Concept

Demand = Supply ... therefore producers had to convince consumers to purchase their

products. Focus of business investment starts shifting towards developing a robust sales

mechanism in order to communicate with consumers. The sales concept is also relevant

for products consumers do not seek out ordinarily, such as life insurance and dental

treatment.

Marketing Concept

Supply > Demand ... therefore producers need to first understand what consumers wanted,

then produce those products, then convince consumers to purchase those products. Target

marketing and market segmentation became the new tools to increase company

profitability.

One 2 One (Relationship) Marketing Concept

The Marketing era evolved and saw producers further segment their markets, targeting

smaller groups of consumers within those markets. With the potential unleashed by the

microprocessor and information technology, we are seeing targeting down to the

individual, one to one. A commonly cited example is Amazon. Notice, if you make a

purchase from this site (or similar) when you return to the site, you will receive

recommendations based on your previous purchases. This presentation is based not only


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on your purchases (data stored in your cookie file allows for this), but on purchases of

others who have bought the same book and similar books.

Viral Marketing

An interesting thing is occurring, as we are now in a networked economy. Our consumers

are able to "talk" to each other and serve as an extended sales force. This lateral

communication and / or transaction between customers and non-customers can serve as

an opportunity for companies to leverage. The pioneer of viral marketing was Hotmail.

This Wired article Hot Male discusses this marketing "accident." Another good example

is Bluemountain.com. Since the receiver of the e-card has to visit the site to access the

card, this visit serves to promote the service to the receiver.

Societal Marketing Concept

Companies, more aware of society and the environment at large, promote their affiliation

with the environment. Ben & Jerry's and The Body Shop are examples.


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Early marketing strategy concepts were:

Borden's "marketing mix"

"In his classic Harvard Business Review (HBR) article of the marketing mix,

Borden (1964) credits James Culliton in 1948 with describing the marketing

executive as a 'decider' and a 'mixer of ingredients.' This led Borden, in the early

1950s, to the insight that what this mixer of ingredients was deciding upon was a

'marketing mix'" (34).

Smith's "differentiation and segmentation strategies"

"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending

the will of demand to the will of supply.' That is, distinguishing or differentiating

some aspect(s) of its marketing mix from those of competitors, in a mass market

or large segment, where customer preferences are relatively homogeneous (or

heterogeneity is ignored, Hunt, 2011, p. 80), in an attempt to shift its aggregate

demand curve to the left (greater quantity sold for a given price) and make it more

inelastic (less amenable to substitutes). With segmentation, a firm recognizes that

it faces multiple demand curves, because customer preferences are heterogeneous,

and focuses on serving one or more specific target segments within the overall

market".

Dean's "skimming and penetration strategies"

"With skimming, a firm introduces a product with a high price and after milking

the least price sensitive segment, gradually reduces price, in a stepwise fashion,

tapping effective demand at each price level. With penetration pricing a firm

continues its initial low price from introduction to rapidly capture sales and

market share, but with lower profit margins than skimming".

Forrester's "product life cycle (PLC)"

"The PLC does not offer marketing strategies, per se; rather it provides an

overarching framework from which to choose among various strategic

alternatives".


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7 Ps of Real Estate Investment

The 7 Ps of real estate investment is a broadframework that empowers investors to

understand the key forces that affect the success of any real estate investment. Regardless

of whether investors decide to participate directly in the market or go through a fund, it is

important for them to remain educated on the factors that will impact their investments.

By referencing the 7 Ps of real estate investment, investors will be able to critically

assess the merits of potential investments and differentiate themselves from ordinary

retail investors.

Product

Product relates to real estate investment options that could be of two typesland

or property. Property includes commercial 5 , residential, industrial, integrated

townships or a mixed-use development (a combination of the preceding). Land

includes land parcels which can be Greenfield or Brownfield. Investors should be

aware of the product mix of the development that they are investing into, which

may include both land and property.

Amongst built-up project options, investors can opt to invest in either operational

or under-construction assets. Issues such as legal barriers, tax implications and

transparency will play a key role in determining the suitability of the product for

investment, as will factors such as risk appetite, timeline and expected return.

Place

The three most important things to consider in real estate are location, location

and location!

Place, or location, is a critical factor to be considered when evaluating a real estate

investment. The location and context of a property clearly dictates the level of

speculation that the invested asset can be subjected to. In evaluating a particular

geography, investors must consider habitation, catchments, infrastructure,

expected growth patterns, planned or existing government initiatives,

demographic profile, key economic drivers, and so on. Proximity to established

nodes of retail or commercial activity can drive the investment interest and valueof an asset upwards.


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As real estate is primarily regulated at a state level in India, investors need to be

aware of the political, economical, social, technological, legal and environmental

(PESTLE) factors impacting the cities in which their investments are based. Rapid

economic growth over the past decade in India has been heterogeneous in nature,

impacting real estate consumption differently across the country. As a result,

where to invest and how long to hold emerge as crucial decisions to be weighed.

Price

You make money when you buy real estate, not when you sell.

An entry price is equally important as an exit price in real estate. Investors should

follow a bottom-upapproach to determine the ideal purchase price ofreal estate by

first determining theexpected saleprice and other costs that will need to be

incurred.If done correctly, this approach will mitigate risks and increase the

likelihood and quantum of profits, the eighth P of real estate. Though not an easy

task to accomplish, understanding the future market price of an asset in the face of

any proposed competition will be a key determinant of success. Suburban

destinations with a high potential for infrastructure expansion, demographic spill

over and voluminous supply quantum are considered to be the safest bets forprofit maximisation.

Positioning

Positioning is vital in creating an identity in the minds of target consumers of the

real estate development being invested in. Ensuring recall value of a particular

project amongst occupiers and buyers is a key differentiator often required for

success. Green buildings, office parks with large floor plates and special economic

zones are some of the current tactics being employed in India to differentiate

properties.

Positioning in a real estate investment could also refer to the relativity that leads

a product to be unique. How a typical development is relatively priced, sized or

featured (in terms of amenities) determines how the asset is competitively

positioned in the market. Though qualitative in nature, positioning has a direct

link to some important qualitative aspects of a property - occupancy and yield.


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Packaging

Packaging refers to the delivery of a finished product. At a property level, the

specifications of the construction, quality of finish, provisions of fit-outs and other

facilities like power back-up are a few of the things associated with successful

functioning and maintenance of a building. The packaging of any real estate

product is criticalbecause of the fact that the Indian investment landscape has

undergone a rapid transformation over in the past decade. A paradigm shift in

disposable incomes, spending patterns and demographic profiles over the years

has led to a change in real estate consumption in India. This has also led to an

increased awareness on sustainability and affordability leading to superior

lifestyles across multiple income groups. In this context, packaging refers to the

timely delivery of good quality products in compliance to the local and national

standards for real estate development.

Promotion

Promotion is communication between sellers and buyers of a particular real estate

project. Investors must evaluate multiple options to promote the development in

which they plan to invest. In-house marketing, online selling, outsourcing toproperty consultants, participating in local / national events and tying up with

industry associations are some of the many options available to sellers for

promoting their project.

The promotion of any property should educate buyers about the key strengths of

the development and the unique offering it presents. Promotion is also a critical

factor for brand building which primarily revolves around trust, credibility and

reputation, an important confidence building measure amongst buyers and

investors, given that legal recourse in India is extremely lengthy.

People

People is perhaps the most important P to be considered before investing in real

estate. People could refer to the target consumers of real estate to be invested in, a

developer who has the ability to develop a real estate project as promised or a

fund manager with the expertise and market savvy to deliver results. Identifying

key consumers, partners and investment managers is something that should often


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be done first, and always done with great importance. While the other 6 Ps of real

estate may drive success in a given project or market, this seventh P is what ties

them all together and holds them in balance.

Each of the 7 Ps is unique in terms of their criticality, all the factors are inter-linked to

each other to enable an effective investment decision.

Product, place and price drive investment decision at a project level, positioning,

packaging and promotion are factors that do so at a market level. It is interesting to note

that the project level drivers are those factors that are tangible and the market level

drivers are intangible. The seventh and most critical P, people, is what ties all the Ps

together and straddles between the intrinsic (project level) and extrinsic (market level)

drivers to strike balance in the system.

Conceptof market strategy of Earth Infrastructure

Marketing strategy is the goal of increasing sales and achieving a sustainable competitive

advantage. Marketing strategy includes all basic and long-term activities in the field of

marketing that deal with the analysis of the strategic initial situation of a company and the

formulation, evaluation and selection of market-oriented strategies and therefore

contribute to the goals of the company and its marketing objectives. Business owners

without a formal marketing background often think of marketing in terms of advertising,

public relations and promotions activities. While those are important aspects of

marketing, they are activities that support the overall marketing strategies of a business

that build a solid brand. Understanding the basic concepts of marketing and strategies that

go with them will help you develop long-term business goals and create more effective

communications strategies.


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Business Plans of Earth Infrastructure Ltd

Performance based salary structure

Every person who conducts a Direct Sales will be paid Incentives as per the level onwhich that person is.

Differential Income

Every person has enormous sum to gain through the promotions to be paid through the

level plan.

Same level-Income

The same level incentive will only be paid to active representatives. The same-level

incentives will be divided into two parts i.e. Junior Level and Senior Level. The junior

level means levels up to Senior Managers. The senior levels are from General Manager to

VP.

Customer influence by factor

Introducing the Product.

When you introduce a new product to the marketplace, your marketing strategy has to

target the type of customer who wants innovation and new features. You are at the

business development stage of the product cycle, and you have to invest in promoting the

product. This means your approach needs to highlight the product's unique capabilities

and what it can do better than existing products. Your strategy is concerned with gaining

exposure and gauging the reaction of the market. Aim your promotional initiatives at

early adopters and people who have expertise and a reputation in the field of activity.

Growth

If your product introduction is successful, the opinion leaders and early adopters you have

targeted are spreading the word. Your marketing strategy then has to change to target a

more mainstream type of customer. The purchaser in a growth market wants performance


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at a reasonable price. Your strategy has to explain the benefits of the product and why it

will meet the purchaser's needs. Most purchasers are first-time buyers and are not familiar

with the product. Your strategy has to address this by including an educational and

informative component. In this part of the business cycle, your strategy is to recoup your

investment and start making a profit.

Maturity

In a mature market, the details of your product are well-know and easily accessible from

reviews and other publications. Your marketing strategy has to convince the average

purchaser and the repeat customers that your product represents good value. Competitors

have had time to introduce alternatives, and your strategy has to respond to their

challenges. A successful mature market strategy maintains market leadership by

promoting the fact that you developed the product and were the first to offer it. The aim

of your market strategy changes to preserving the long-term profitability of the product

line by focusing on value and customer satisfaction.

Decline

At some point, sales in your product decrease and you decide it is not worth further

investment. Your marketing strategy at this stage presents the product as an inexpensive

but solid purchase and targets the type of customer who wants a deal. These purchasers

are attracted by the fact that they can buy a good product that used to cost more. As your

marketing and promotional costs for the product wind down, you can still make a profit ata lower price point as you exit the market.


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Marketing and Promotional Strategies of Earth Infrastructure Ltd:

Marketing strategyis a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage.

Marketing strategies serve as the fundamental underpinning of marketing plans designed

to fill market needs and reach marketing objectives. Plans and objectives are generally

tested for measurable results. Commonly, marketing strategies are developed as multi-

year plans, with a tactical plan detailing specific actions to be accomplished in the current

year. Time horizons covered by the marketing plan vary by company, and by industry,

however, time horizons are becoming shorter as the speed of change in the environment

increases.Marketing strategies are dynamic and interactive. They are partially planned

and partially unplanned. Marketing strategy involves careful scanning of the internal and

external environments. Internal environmental factors include the marketing mix plus

performance analysis and strategic constraints.External environmental factors include

customer analysis, competitor analysis, target market analysis, as well as evaluation of

any elements of the technological, economic, cultural or political/legal environment likely

to impact success.A key component of marketing strategy is often to keep marketing in

line with a company's overarching mission statement.

Once a thorough environmental scan is complete, a strategic plan can be constructed to

identify business alternatives, establish challenging goals, determine the optimal

marketing mix to attain these goals, and detail implementation. A final step in developing

a marketing strategy is to create a plan to monitor progress and a set of contingencies if

problems arise in the implementation of the plan.


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Figure no. 4: Marketing Strategy

By understanding the company, its products and analyzing its competitors, it gave me a

clear picture about the real estate sector. The major task that I was assigned was to

understand the company objectives, its target audience, and then to develop marketing

strategies which would help company to increase its brand awareness and business

development. The two kinds of sales promotions are described as:

Above the line sales promotion:

Above the line is a type of advertising through media such as TV, cinema, radio,

print, banners and search engines to promote brands. Major uses include television

and radio advertising, web and Internet banner ads. This type of communication is

conventional in nature and is considered impersonal to customers. It differs from

Below the line advertising, which believes in unconventional brand-building

strategies, such as direct mail and printed media (and usually involve no motion

graphics).These strategies require huge amount of investments and are majorly

Capital intensive.


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Below the line sales promotions

These are short-term incentives, largely aimed at consumers. With the increasing

pressure on the marketing team to achieve communication objectives more

efficiently in a limited budget, there has been a need to find out more effective and

cost efficient ways to communicate with the target markets. This has led to a shift

from the regular media based advertising. These strategies involve high level of

ground work involving manpower and is hence more of Labor intensive.

Figure no. 5: Kinds of Promotion

Promotion

Above the line promotion:

Radio

Mobile Phones

Newspapers

Internet

Below the line promotion:

Sponsorship

Endorsements

Sales Promotion

Direct Mail

Personal Selling

Public Relations

Trade Shows


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Deciding on promotional plan:

The plan usually faces three questions.

Which segment of the market should be targeted?

What message should be conveyed to them?

How to do this?

For each service we first consider all forms of media which are available for promotion

like TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press

releases, direct mail, special events, brochures, neighborhood newsletters, etc, & then

decide which suits the organization. Our selection of media should be based on two

factors affordability & accessibility.


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Steps involved in developing the promotional strategy:

To develop a promotional strategy one should understand the target audience, analyze the

competitor strategies, understand the company constraints, and other factors which can

then be used to develop a comprehensive strategy to meet the company objective.

The steps involved in developing strategies for Earth-Infrastructure can be enumerated

as:-

Step 1: Understanding company objective

Step 2: Understanding Segmenting Targeting Positioning

Step 3: Analyzing company constraints

Step 4:Methods adopted

STEP 1: Understanding the Companys Objective:-

Earth Infrastructures is a national player and is comparatively a new entrant in the real

estate sector. The company has relatively gained great awareness in the Delhi & NCR

market and its projects are scattered all over India.

So the major objective of the company for conducting promotions this year was:-

Hit the target audience directly, in cost effective manner

Create Brand Awareness for the company in new markets & generate business forthe company.

Create competitive advantage (comparing competitors)

Create exact positioning for companies in the mind of target audience

Reminding the audience in the existing market

And ultimately to generate sales


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STEP 2: Segmenting, Targeting and Positioning

Segmentation:

A segment is a group sharing one or more characteristics that cause them to have similar

product and/or service needs. Segmentation can be done depending on many variables

which represents specific nature of the group, some of the variables are:

Geographic variables

Region ,country ,Density of Area, Climate

Demographic variables

Age ,gender ,family ,family life cycle, education , income, occupation

Socioeconomic, religion, nationality/race , language

Psychographicvariables

Personality ,life style, value, and attitude

Behavioralvariables

Benefit sought ,product usage rate, brand loyalty, product end use

Readiness-to-buy stage, decision making unit, profitability, income status

Segmentation at Earth Infrastructures

Earth Infrastructures defines its segment on the basis of Demographic Variables,

primarily considering the factors Age, Occupation and Income. The managements job

is to formulate new and creative strategies to target different segments of the market. Also

the investors are segmented on basis of their financial background (i.e. Business man and


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service class people) which helps to classify two different segments which have to be

targeted with different promotional strategies. The age & the need of the investors also

help us in segmenting the clients and thus facilitate Earth Infrastructures to find its target

market more accurately.

Targeting:

For any organization it is not possible to serve every segment, so the marketer decides to

serve the segment which provides the maximum opportunity, a process which is known as

Targeting.

Targeting at Earth Infrastructures

Considering the constraints of finances, time and other factors, Earth Infrastructures has

different promotional strategies for different segments such as high, middle & lower

income group of people .Earth Infrastructures generates a lot of business from tier 2

cities, so our marketing and promotional activities are carried out in these cities as well.

We offer the same product to people from different segment of market but with different

promotional strategies.

Earth Infrastructures specifically focuses on Professionals, Businessmen & NRIs and the

promotional strategies are formulated in such a manner that they directly reach the target

audience e.g. Door to door activity, canopy activities.

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.

Positioning at Earth Infrastructures

Most of the competitors serve more than one segment, with no clear positioning of their

company. The market has a stiff competition as a large number of real estate developershave been coming in the city at different locations. Many players have positioning in


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terms of Quality-Prices modal, others on basis of location and so on, but no player in the

market specifically focuses on being environment friendly by introducing the green

building concept and we very firmly believe in customer satisfaction

The following distinction separates us from our competitors:

LEED Certified - Leadership in Energy and Environmental Design(LEED)

consists of a suite of rating systems for the design, construction and operation of

high performance green buildings, homes and neighborhoods. We are the first

LEED certified real estate developers.

CREDAI Member- The Consumer Grievance Redressal Forum has been enacted

to provide better protection to the interests of customers connected with

the memberreal-estate developers - CREDAI NCRand for that purpose to

make provision for the establishment of authorities for the settlement of

customers dispute and other related matters.

EIGEN (Architect)- A Synonym to high quality. An International Architecture

& Engineering firm with synonym of high quality assurance provides One Stop

Solution for all Design Engineering and Technology Solutions for the

Construction Industry. You name the best and they have it from the Burj Tower,

Dubai to Strawberry Place, Newcastle Upon Tyne, U.K. The company has

provided a wide range of Architectural Services or Various Consultancy for some

part of the services to projects in various markets of Global Construction Industry

including India, Australia, Middle East, United Kingdom, Caribbean Islands and

the US.


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Figure no. 6: STP Analysis

The overall STP analysis of the company helps in understanding which market to be

catered, and hence helps in customizing the overall promotional effort to be channelized

in the same direction facilitating the best utilization of the available resources and

meeting the company objectives.

STEP 3: Analyzing Company Constraints

Earth Infrastructures has just entered into the market of real estate. It is their 2 year of

operation. With the presence of number of competitors in the market and also with the

increasing brand value of the major leader, it was very difficult for Earth Infrastructures

make its presence felt. Apart from this, there were some other constraints also which were

to be kept in mind while designing the promotional strategies which were financial

constraint.Earth Infrastructures is a Selffunded organization which was started in 2010.

Problem which was confronted by our company in its promotional & advertising

campaign was lack of funds for advertisements on television.

STEP 4: Methods adopted

A strategy had to be developed wherein the target audience could be hit directly in the

most cost effective manner and conveying the message clear to the audience.

So it was decided to use below the line marketing strategy. The strategies used were:-

SEGMENTATION

DEMOGRAPHICS

AGE,OCCUPATION,

INCOME

TARGETING

PROFESSIONALS,BUSINESSMAN,RETIRED

AND NRIs.

POSITIONING

LEED CERTIFIEDGREEN BUILDING

CONCEPT

CREDAI MEMBERSHIP

WORLD RENOWNED

ARCHITECHT - ''EIGEN".


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Branding:

The major aim of the branding activity was to increase the visibility of Earth

Infrastructures in various zones. The activity needed promotional effort of distributing

Free Gifts at different locations to create brand awareness and increase brand recognition.

The main tools used in the process were:-

Cloth bags

Caps and T-shirts

Banners & Hoardings

Pamphlets and Brochures

Standees

Cloth Bags were specially designed by the company which had the companys name,

logo, address and telephone numbers printed on it and these bags were freely distributed

in the market to create awareness about earths Projects. Similarly the Caps and T-shirts

were also designed for promotional purposes with the name and logo of the company

printed on it and were freely distributed in the market to create brand awareness and to

generate interest about the Earths projects in the minds of the people .

In designing the banners and hoardings the main aim was to create recognition of the

company name and its address, so the design majorly comprised of the name and address

with the company tag line presented along. The banners were placed inside the vehicles

of all the employees of the company which acted as a great promotional technique and

hence these banners were made in such a way that they were visible to each every person

even at far distances.

Pamphlets and Brochures were distributed randomly to each and every person in the

respective zone which made the people take a glance at Earths Projects in brief hence

creating brand awareness. The Standees were placed as they are more informational in

nature discussing elements such as the benefits to the investors, facilities provided, and

other core advantages for the company.


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All the efforts were channelized effectively and efficiently and in the proper manner and

helped the company in generating leads by creating brand awareness.

Activities:

In my two months internship program in Earth Infrastructures, I have learnt a lot about

real corporate world. In this two months time span, I have conducted lots of activities

with the help of my team head and my team members. I along with my team members

had conducted many Activities and we can classify the activities into two categories:

Field Activities and In-house Activities:-

Canopy Activity: On every Saturdays and Sundays, we used to place our

Canopies near the site of our Greater Noida Projects. We had to set up a Canopy

and look for the people who were passing by in their Car's and people who were

interested used to stop their car and ask for the details. Then we used to explain

them the project and ask them for the Site Visit so that they can get a clearer

picture of what they are or will invest in and they were encouraged for an official

meeting.

Market Activity: I also visited at various shops in the markets of

ChandniChowk, Chawri Bazar, and The Times Property Expo in PragatiMaidan.

We need to explain the people about the project with the help of pamphlets and

brochures provided by the company and exchanged my Visiting cards with theirs

to generate the data.

Tele-Calling: I have also done an activity of collecting the Residential Welfare

Association (RWA) Phone Directories from MayurVihar and Patparganj and then

I have to call those perspective customers and explain them the whole details of

our project and mail them, if needed. Company also provided me the data of the

perspective customers on which I need to call.

Bulk E-Mails and Bulk SMSs: The company also provided a very refined data

so that I can send them Bulk E-Mails and Bulk SMSs and give them the details of

our Commercial and Residential Projects of Greater Noida and encourage them

for an official meeting.


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These are the certain ways which are helping me in generating leads and finding the

actual customers but still bringing the customer to the purchasing stage is in progress

Follow up:

After adopting the above said promotional activities, It helped me in generating leads and

finding the actual customers but still bringing the customer to the purchasing stage is in

progress. I used to maintain a proper follow up and try to convert the hot leads into deal

closing. I used to call them again according to their convenience. I keep the follow up of

that particular lead to make sure that the investors dont miss any information about our

product and try to convert him into a real investor for the company.


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CHAPTER III

SUMMARY AND CONCLUSION

Results of the study

This study has proved to be a major help in enhancing my real-estate skills in Earth

Infrastructure. It has given me an opportunity to put all my theoretical knowledge into

practical application. Throughout the development of this research work.I have been able

to learn new concepts and brush up my knowledge of the already known ones. In this

Research Work I have tried to integrate different real-estate concept likemarketing

strategies of real-estate, types of marketing strategies, how to build up the business and

how to satisfy the customer.

For completing this research work I had to refer to many books and consult many people

that further enhanced my knowledge of this subject. It has helped me understand the real-

estate concepts better giving me an opportunity to understand.

Limitations of study

Time limit is the major constraint.

As study is based on secondary data. The data available maybe old and out of

date.

Lack of availability of document.

The company publishing the data may not be reputable.


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Suggestions & Recommendations.

From the above, we can say that today more people are interested in investing inproperties as they know that investing in properties is a good option and it provides good

return to them. Today, Earth Infrastructure is the third preference of investors and I think

the company should adopt more innovative technologies in comparison to other

competitors so that the company can become the first preference of the investors.

We have analyzed that investors are more interested in investing in Office Spaces so the

company should focus on launching similar products which will incur profits.

The company should adopt some promotional activities to increase its sale through other

sources of media like T.V, Newspaper, Radio so that it can reach to the mass which will

help in brand awareness.

Also the company should participate in events and trade fairs like Property Expo where

they can showcase their products and offering. Use of social networking should also be

implemented to

Today customers want convenience as they have very busy schedule and from our

analysis we have found that investors want the markets or shopping malls near to their

residential and work places so company should provide more and more shopping facilities

to the customers.

We have also analyzed that investors found the banners behind the cars more informative

rather than other medium. So company should focus more on other mode of media to

provide more and important information to the investors so that they can get information

more easily about the companys products.


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BIBLIOGRAPHY

Books

1.

Aaker& A., D. 1998. Developing business strategies (6th ed.). New York;

Chichester: Wiley.Aaker& A., D. 2004. Strategic market management (7th

ed.). Hoboken, N.J.: John Wiley.

2. Abell, F., D., Hammond, & S., J. 1979. Strategic market planning :

problems andanalytical approaches. Englewood Cliffs; London (etc.)):

Prentice-Hall. Accountants., C. I. o. M., McShane, P., & Accountants., C.

I. o. M. 1988. Management accounting: strategic planning and marketing;

stage 4. Oxford: Butterworth-Heinemann.

3.

Boyd, W., H., Walker, C., O., Larreche, & Jean-Claude. 1998.

Marketingmanagement : a strategic approach with a global orientation (4th

ed.). New York: McGraw.

4.

Brown, A., J., Sommers, & E., D. 1982. Developing a Strategic Marketing

Orientation in a Large Industrial Firm. Industrial Marketing Management,

11(3): 167.


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http://businesscasestudies.co.uk/amway/developing-competitive-

marketing-strategies/strategic-analysis.html#axzz3CkFG0Jq8

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75633.html

A Study on Marketing Strategy of Earth Infrastructure Ltd

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