Real Estate Marketing StrategyFor

DLF Limited

Made By:-Chanchal Sharma (76)Md. Sattar (90)Mudit Bahl (153)Pankaj Kumar (95)Priya Singh (99)Tushar Rastogi (119)

Content• Real Estate Overview• DLF Limited Overview• Mission, Vision & Values• DLF Core Business• SMART Goal Setting• Segmentation, Targeting and Positioning• The 4 P’s of DLF Ltd.• SWOT Analysis of DLF Ltd.• BCG Matrix Analysis• PESTL Analysis• Porter’s Industry Forces Analysis• Strategy Formulation & Implementation• Evaluation, Control, Feedback and Market Audit• Suggestive Measures for DLF Ltd.

Real Estate Overview

• Considering overall economic trends, like GDP, inflation etc the year was not favourable for the sector

• Tightened credit policy made it difficult to raise funds• Demand in the housing market varied highly across regions• Bangalore, Kolkata witnessed highly supply• NCR, Chennai, Pune saw infusion of new projects due to sustained demand.• Commercial segment performed well in Mumbai, followed by Bangalore the

supply is expected to grow at moderate rate of 2%• The organised retail segment which is expected to grow to US $ 42.0bn in 2020,

from US $25bn now

Segment in the Indian Real Estate Sector

Residential space

Real estate sectors

Commercial space

Retail space

Hospitality space

SEZ’s

• Fragmented market with few large players• Demand of over 300,000 units in the seven

major cities

• Few players with presence across India• Over 38.2 million sqft. Demand in 7major cities

in 2011

• FDI in multi brand retail to boost demand• Fragmented market with few national players• Demand of over 15 million sqft. In major cities

• A competitive market with many players• Over 121,000 hotel rooms in the country

• 589 SEZs have been approved by the government so far

• Majority of SEZs are in the IT/ITeS sector

DLF Limited Overview• The largest real developer in India• Founded by Raghuvendra Singh in 1946 at New Delhi, India• Builds residential, offices and retail properties• Pan India presence• The company earning arising from development and rental• Acquired land at relatively low cost in Gurgaon after the Delhi development act

that controlled the real estate in Delhi• In the mid 1970s, the company started developing their DLF city project at

Gurgaon• Its exposer across businesses , segment and geographic, mitigates any down

cycle in the market• Developed 22 major colonies in Delhi• DLF is now present across 15 states, 24-cities in India

Vision, Mission and Values

To contribute significantly to building the new India and becomes the world’s most valuable real estate company

To build world class real estate concepts across six business lines with the highest standard of professionalism, ethics, quality and customer service

Sustained efforts to enhance customer value and qualityEthical and professional serviceCompliance and respect for all community, environmental and legal environments

Mission

values

Vision

DLF’s Core Business

DLF

HOME OFFICE

CORE BUSINES

S

NEW BUSINES

S

RETAIL HOTELS

EXECUTION

BUSINESS

INVESTMENTS

INFRASTRUCTUR

ES SEZ’S

ObjectiveAnalysing the various research marketing techniques for the betterment of

promotion of any real estate firm

To study the present scenario considering every aspects of real state sector

Ensuring customer satisfaction as well as maximizing returns from them

SMART

S-SPECIFIC M-MEASURABLE A-ATTAINABLE

R-REALISTIC T-TIMELY

S- Specific• S-specific- A specific goal has a much greater chance of

being accomplished than a general goal. To set a specific goal you must answer the six “W” questions:• *Who:      Who is involved?• *What:     What do I want to accomplish?• *Where:    Identify a location.• *When:     Establish a time frame.• *Which:    Identify requirements and constraints.• *Why:      Specific reasons, purpose or benefits of accomplishing

the goal.

M- Measurable• Measurable - Establish concrete criteria for measuring

progress toward the attainment of each goal to set.• To measure your progress, To stay on track, reach your target

dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goal.• To determine if the goal is measurable, ask questions such

as……• How much? How many?• How will I know when it is accomplished?

A-Attainable • Attainable – When goals is identify that are most important

things, to begin & figure out ways you can make them come true. To develop the attitudes, abilities, skills, and financial capacity to reach them. begin seeing previously overlooked opportunities to bring closer to the achievement of your goals.• You can attain most any goal you set when you plan your steps

wisely and establish a time frame that allows you to carry out those steps. Goals that may have seemed far away and out of reach eventually move closer and become attainable

R- Realistic & T- Timely Realistic• To be a realistic, a goal must represent an objective toward which you are both willing and

able to work. A goal can be both high and realistic. every goal represent a substantial progress.

• A high goal is frequently easier to reach than a low one because a low goal exerts low motivational forces

Timely •  A goal should be grounded within a time frame. With no time frame tied to it there’s

no sense of urgency. • Goal is probably realistic if you truly believe that it can be accomplished.• Additional ways to know if your goal is realistic is to determine if you have

accomplished anything similar in the past or ask yourself what conditions would have to exist to accomplish this goal.

What is Profitability ratio•  A profitability ratio is a measure of profitability, which is a way

to measure a company's performance. Profitability is simply the capacity to make a profit, and a profit is what is left over from income earned after deducted all costs and expenses related to earning the income 

Profitability ratio Profitability ratio march’15 march’14 march’131) Operating margin(%) 54.20 51.69 64.622) Gross profit margin(%) 52.35 48.43 58.023) Net profit margin(%) 31.16 13.77 15.174) Adjusted cash margin(%) 24.59 26.30 19.555) Adjusted return on net margin(%) 5.47 5.57 3.456) Reported return on net worth(%) 5.45 3.16 3.437) Return on long term funds(%) 10.36 10.90 10.49

DLF’s shareholding pattern

Description Percent of share(%)Promoters 78.59Individuals 3.79Institutions 0.33FII 15.47Government 0.00Others 1.82

DLF’s shareholding pattern

Percent of Share (%)

Promoters Individuals Institutions FII Govt. Others

SEGMENTATION,TARGET & POSITIONING

• DLF has spread its tentacles pan India covering almost all the cities

• Targets :

For Home – Luxury middle class & Upper class

For Retail – Tie ups with big retail company for malls

For Offices – Tie up mammoth companies

• DLF has positioned itself as a coveted brand in the field of real estate

• It is the largest company in terms of market share market volume also

market capitalization.

BUSINESS

FOCUS ON SMALL MARKETDLF Residential Home• A pioneer in providing a luxurious and wholesome

living experience combining the best of design, aesthetics, technology and architecture.•  DLF offers homes in all lifestyle segments, from Super

Luxury and Luxury to Premium Housing for middle class to upper class people.

UNDIFFERENTIATED PRODUCT

DLF has always been a front runner of the retail revolution in the country. The company's multi faceted retail addresses comprise of shopping centres, premium malls and super luxury malls which have been delighting visitors with versatility, variety and premium quality.

DIFFERENTIATED PRODUCT

• On way to set up 20,000 hotel rooms in the next 5 years in partnership with Hilton.

• Acquisition of domain expertise & assets with buy-out of Aman Resort business.• Only developer with the experience of setting up of large townships

The 4 P’s of DLFProduct:

• Retails: Infrastructure, Malls (Luxury, Shopping and Neighborhood). They sell and Lease the properties

• Houses: Mid-Income, Luxury, Super- Luxury homes, Group Housing Societies

• Offices: Grade A- Office Leasing Market, DLF sells and leases offices• Golf Courses • SEZs (Special Economic Zones): Pioneer in the SEZ market• Hotels: JV with Hilton Group and Aman Properties to provide Luxury

Star rated Hotels• Land Development: Develop lands for both the segment business

as well as housing

The 4 P’s of DLFPrice:• For Homes, Super Luxury is targeted towards Elite

class, Luxury towards Upper class, Mid- Income towards Middle class• For Offices, Multiple tenants office buildings for Small

and Middle segment Offices, Integrated Offices are for Big Companies• The Properties are aptly priced according to the

segments• They offer financing with major Private and PSU banks

The 4 P’s of DLF• Place• DLF is established in Tier I, Tier II cities• DLF is planning to enter in Tier III cities• DLF properties are situated in Prime areas in the cities

which makes them better than their competitors• SEZs in mineral rich and business friendly areas

The 4 P’s of DLF• Promotion

• Promotional campaigns through Traditional and Digital Media• It also sponsors major events like DLF IPL, etc.• They also promote through local Malls and luxury

establishments• They also participate in major Real Estate Exhibitions • Indirect Promotion through CSR activities

SWOT• Strengths :• Largest real estate company in India• Its exposure across businesses, segments and geographies

reduces the impact of economic cycles• Experience of over many decades in Indian retail sector with an

expertise in the field• Strong management team• Low cost well- educated and skilled labour force is now widely

available across the country.• Real estate development is on high and it is attracting the focus of

the industry towards construction.

SWOTWeakness :• Chances of Natural disadvantage are there• Distance between construction projects reduces business efficiency.• Changing skills requirements and an ageing workforce may accentuate

the skills gap. • Improve in long-term career prospects is highly required to encourage

staff retention and new entrants.• Lack of clearly define processes and procedures for construction and its

management.• Huge amount of money need to be invested in this industry

Opportunities • Tarnished image

SWOTOpportunities :• Reduction in interest rates• Tax incentives for housing investments• Shortage of houses in urban areas• Public sector projects through Public Private Partnerships will bring further

opportunities.• Developing supply chain through involvement in large projects is likely to

enhance the chances in construction.• Renewable energy projects will offer opportunities to develop skills

and capacity in new markets.• Financial supports like loan and insurance and growth in income of

people is in support of construction industry.

SWOTThreats :• Increasing interest rates• Economic downturn• Volatility in financial markets• Long term market instability and uncertainty may damage the opportunities

and prevent the expansion of training and development facilities.• Current economic situation may have an adverse impact on construction

industry.• Political and security conditions in the region and Late legislative

enforcement measures are always threats to any industry in India.• Infrastructure safety is a challenging task in construction industry.• Lack of political willingness and support on promoting new strategies

BCG Matrix

Question MarkRetail

StarResidential

DogHospitality

Cash CowCommercial

DLF BCG Matrix

BCG Matrix• Star is Residential business because they have a very

good market share (Market Leader) and Market Share and market Growth• Cash Cow is Commercial part of the Leasing and

Selling of Office spaces. They have good market share and less market growth• Dog is the Hospitality part of the business. They have

low market share and market growth• Question Mark is Retail part of the business. They have

high market growth but low market share

PESTL AnalysisPOLITICAL:• Mr. Narendra Modi led party is considered to be the most stable

government in Indian recent history.• The Government has laid down the roadmap for India, signifying

a major support to manufacturing and real estate sector.• World majors like the USA, China and the UK governments are

seeing this win as a turnaround event for the disruptive Indian economy.• Government development & business friendly policies both for

domestic and foreign player.

PESTL Contd.Economical:• New investments have been proposed by the government such as Rs.

7,060 crore to build 100 smart satellite cities in India.• FDI norms have been modified to attract foreign players in Real Estate

sector: Reduction in built-up area requirement from 50,000 square meters to 20,000 square meters, and minimum capitalization from $ 10 million to $ 5 million.

• Amidst high inflation and thus high interest rate, new and investment friendly tax reforms can act as an economical tool to revive almost dead Real Estate sector.

• Ease of availability of financiers will aid the government in achieving its ‘home to all by 2022’ program. This program needs 18.7 million homes in urban areas.

• Better infrastructure and a healthy growth rate in IIP (Index of Industrial Production) could solve import-export problem.

PESTL Contd.Sociological:• India has one of the biggest markets with more than 65% of

population below 35 years of age.• Increasing urbanization has caused a demand pull in every

sector.• The number of HNWIs in India is expected to double over next

10 years, growing by 137% in Mumbai alone.• India has a considerably huge pool of educated and cheap

labour.• Nuclear families trend is growing

PESTL Contd.Technological:New construction techniques as - • slip form construction• pre-fabricated construction• Mivan technology• dry-wall technique• Fly Ash bricks

PESTL Contd.Legal:• Land Acquisition and Rehabilitation Act (2013)• Limitations in FDI• Red Tape and Multi point approval for projects

Porter’s Industry Forces

Threat of Rival

Threat of New Entrants

Bargaining Power of Buyer

Bargaining Power of Supplier

Threat from Substitute

Porter’s Industry Forces Contd....• Threat of New Entrants – Due to huge initial investment threat

of new entrants are low.

• Threat of Substitute – As the other Players are also offering price competitive products in this category the this threat is high.

• Bargaining Power Of Buyer – As the Economy is facing slowdown the buyer have grater power of bargaining.

• Bargaining Power Of Supplier – Due to the slowdown market is not doing well so the suppliers have not much to bargain

Strategy Formulation

Strategy

Short term

Long term

Short Term Strategy• Business organized on vertical basis

• Hotels ,Homes , Office and retails independent of each other.

• Same structure is followed not only at corporate level but also at national level.

• With core business reaching stable operating performance , focus is to aggressively ramp up new businesses

• DLF will look into making small pure investment in non-real business, with target ROI of 20%.

Contd.• Key focus on execution of unfinished projects

• Branding, re-establishing the company name

• LIG flats – House for Medium & lower class family

• Emphasis on Projects in Tier 2 & 3 cities

• Contribution in the making of smart city project

Long Term Strategy• Improving relations with government for PPP model as

Modi government aims housing for all by 2020

• CSR projects – Providing house to lower income class with polices like Self financing & self help group

• Investment in testing of new construction technologies, with the objective of promoting new housing tech in the country

Strategy Implementation

• With core businesses reaching stable operating performance, focus is to aggressively ramp up new businesses like hotels, infrastructure, SEZs, etc.

• Implementing all the short term strategies

• Procurement of funds for Projects in Tier 2 & 3 cities Via IPO, Disinvestment

• Tying up with Loan Institutions

Funds Raising(Disinvestment)

Gujarat

DLF also sold its 150MW in Gujarat to Bharat Light and Power private Ltd for 282.3Cr

Tamilnadu

It has also signed an agreement with Tulip Renewable Powertech Ltd to sell 34.5MW Tamilnadu plant with related liabilities, assets and long term loans for 188.7 Cr

Rajasthan

DLF completed the sale of its 33MW wind turbine project to violet green power for Rs 67.44 Cr.

Segmenting the Market

Segmentation

Income

Corporate

Cities

Government

projects

Targeting the Potential Segments

Government projectsCorporate Tier 2 & 3 cities

Positioning AS a -• Market leader • Budget range player• Customer friendly and transparent brand• Environment friendly

Evaluation• Evaluation step of a marketing plan focuses on

analysing quantitative and qualitative metrics associated with the implementation and strategy• We look at the data and examine whether or not the

company achieved its strategy objectives from the implementation phase• If yes, we replicate the same for future purposes• If No, we take Corrective actions to improve it

Control• Controls are necessary for the evaluation phase• Controls are used to provide Benchmarks• These benchmarks are used to assess how well the plan

has accomplished its goal• Benchmarks are created using industry data and past

data of the company• Benchmarks help define a Goal, which a company has to

achieve• Controls may include measures such as the marketing

budgets and market share

Feedback• Feedback is the process of the marketing which allows

customers and Stakeholders to give details about their experiences with a product or service• Focus groups & Regulatory bodies can also help in

feedback• Feedback is like a reality check of the product

performance in the market• Feedback can be collected by Interviews, Survey

forms, Social Media, Expert Advice

Survey• Surveys are a very important tool to know your customers

and know what they want• Surveys can be done in Age Brackets because

requirements of customer changes with age• Surveys allow you to look at your business at a certain

moment in time and set benchmarks accordingly• Surveys also help companies to know about their

competition and know what competitors are providing which they are not able to• Surveys also help in decision making

Market Audit• The marketing audit is a fundamental part of

the marketing planning process• It is conducted at the beginning of the process and at

series of points during the implementation of the plan• The marketing audit considers both internal and

external influences on the company• It helps the company to establish the Segmentation,

Target and Positioning of the Product• It also helps to define the competitors

Suggestive Measures for DLF• Increase Market Diversification by penetrating through

Tier II and Trier III cities by Acquisitions and JV• Increase in Brand Loyalty to gain sustainable

competitive advantage• Robust strategy against increasing competition from

big players like Shobha Developers and TATA• Focus on reducing burden of Debt• Investment in raw materials- backward integration

References

• http://money.rediff.com/companies/DLF-Ltd/13520062/ratio • http://profit.ndtv.com/stock/dlf-ltd_dlf • http://topachievement.com/smart.html

Thank You