How to market and sell in buyer's market?

How to market and sell in buyer's market?

- Vinayak Katkar

About Amura

USD 1.5 Billion Inventory Sold

Sell.Do India’s most advanced Sales and Marketing

platform for Real Estate

200+ Strong Marketing & technology team

Rs. 90+ Cr in digital ad spends

150+ Real Estate clients

3.5 Million Leads acquired

Current Market Scenario

•  RealEstateeconomy-Struggling•  Nega5veSen5mentbecauseofmediacoverageabouttheindustry•  The unsold inventory numbers are increasing day by day and that is

bringingdowntheconfidenceofbuyer•  The unsold units in 8 large ci5es in the country an all-5mepeak of 1171

millionsq.E,upby22percentfromlastyear

Source : ET

•  Bengalurualonehas179.2millionsq.E.unsoldinventoryasof31stMar2016•  Currentinventoryoverhangisabout4yearsinallmajorci5es.

•  Ready possession flats are in demand than under construc5on because ofunpredictabilityinconstruc5oncomple5on.

•  Buyersarewai5ngformarketstoboRomout.•  Delaysof2yearshavebecomecommon.

Source : ET

"Smartpeoplebuywhenmarketisperceivedtobeweak."

Buyers’ Pain Points

•  Buyersdon’tknowwhicharethebestprojects&bestdealsavailableinthemarket.

•  Theydon’tknowwhatwillberightpricetobuyaproperty.

•  Skep5cismaboutthecredibilityofdevelopers,projectcomple5on,legalissuesetc.

•  Downpaymentissue.Buyershaveloaneligibilitybuttheydon’thave

marginmoneytopay.

•  HigherRiskofmoneygeXngstuckifprojectisdelayed.

•  Costofowningrealestateishigherthanren5ng.

•  Investorsaren’tgeXnggoodreturnsascomparedtootherinvestmentop5onslikestock/equity,MFsandbonds.

Developers’ Pain points

•  Findingprospects&geXngnewleads

•  Developersdon’tknowatwhatpricethepropertywillsell

•  Expecta5onmismatch,demand-supplygapbetweencustomersanddevelopers.

•  LeadsnotgeXngconverted(Qualityissue).

•  Longerconversioncycles.Conversion5mehasincreasedfrom1monthto3months.

•  Costofconversionishigh&salesvelocityisslow.

•  Accesstofinanceandcapitaltocompletetheprojects.

•  Toomuchdependenceonbrokersandchannelpartners

AMURA’S APPROACH

•  Primarymarketresearchandfocusedgroupdiscussionswithexis5ngleadsto

understandtheirrequirements.•  Catchmentareaanalysis,primaryeconomicdriversandemploymentinthe

projectvicinity.•  InventoryDemandandsupplyanalysis,absorp5oncapacityofthemicro-

market•  Compe55veanalysis-productofferings&pricing,marke5ngstrategy•  Buyerprofile,Targetaudienceandpersonaiden5fica5on

•  Pricingstrategy•  Givingrightoffers,paymentplansandfinanceop5ons

MarketResearch

•  Mediastrategybasedontargetaudience.•  Mediaplanningandbuying.•  Communica5on strategy across all media including but not limited to

Google,Socialmedia,hoardings,radioandprintcampaigns.•  Differen5al communica5on to test the market response using Sell.Do

plaeorm.•  Enquirytracking,ROItrackingusingsell.do•  Trackingcostperqualifiedlead,costpersitevisitandcostperconversion.

Go-to-MarketStrategy

•  Enquiryflowmanagementfrompre-sales-sitevisits-tosales.

•  On-siteexperiencemanagementandgeXngcustomerfeedback.

•  Leadnurturing,leadscoringtofocusmoreonqualifiedleads.

•  Postsalesmanagement–execu5ngtheagreementsfaster.

•  Loanfacilita5on,financeschemestoclosethedealsfaster.

•  Paymentcollec5on,postsales&CRMtomanagecustomerqueries.

Sales-Last-milepush

q  ProblemStatement

ToSell850HomesinVirar(MumbaiSuburb)&Nasik(200KmsfromMumbai)

Concept:LifekaChancePreviousOffer:20:80Didnotelicitanydemand

• GetPremiumhomesatlessthanMHADA(GovtHousingScheme)rates.

• AnilKapoorasabrandambassador.

• Getbookingsviaanauc5on(luckydraw)saleprocesswithonlineformsubmissionswith21,000RefundableDeposit.

• TieupwithHDFCRealtyformanagingthefinancialtransac5onsandthirdpartyins5tu5ontoannounceluckywinners.

• TieupwithInsuranceProviderforconstruc5ondelaysandsafeguardinterestofbuyers.

q  Results1000+EMDscollected

11,000+Enquiries|CostperLead:Rs.250

q  ExecuGonSuccess(DifferenGators)

-UseofAutoma5onPlaeormSell.dotomanageleads

-Technologytotacklehighleadvolumes&managesalesperformance

IVR,AutoDialer,HeirarchyManagement,LeadScoring

-RobustpaymentsPlaeormtocollectonlinepayments

Royal Purandar

q  ObjecGveTotransformtheirbusinessfromno-brandtoaknownbrand

q  Execu5on

•  Choosingtherightmediatoadver5se.•  Communica5ngwithcustomersinamoretransparentway.•  Standardisa5oninprocess.•  StreamlinedCRMprocesstohandle.•  Financialprocesssetuptostreamlinecashflowsandcollec5ons.

q  Results

•  Saleof25-30unitspermonth.•  Increaseintheconversionra5oto1-2%to7%•  Totalsales-300+units•  CostPerClosure<Rs.15,000(Lessthan1%oftotalconsidera5onvalueofplot)

WhatnextthatforRoyalPurandar??

TakingSalesVelocityfrom10Crto60Crin3months-6X

•  ARealestateflashsaletocreateatransparent&consumer-centric plaeorm to bring togetherdevelopersandconsumers.

•  A transparent & hassle-free home-buying

experience for the consumers & offer them bestdealsinthemarket.

•  Technology plaeorm to remove middle men &passthebenefitsdirectlytoconsumers

CONCEPT

10Ci5es

15kCouponsDownloaded

40,000Enquiries

250Projects

60Developers

4CrIndiansReached

2015STATS

•  Bigger&BeRer:600Projectsacross20+Ci5es•  OfficiallySupportedbyGoogle.•  PartnershipswithBanksforinterestwaiversacross

allprojects.•  Timeline:1stOctto16thOct

IRFS2016

Thank You