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Lagaan Decoded_HR

Lagaan Decoded_HR -Lessons in Entrepreneurship -Lessons in Leadership -Lessons in Teamwork -Lessons in spirit to fight -Key Management Concepts -Group Dynamics -Leadership -Relationship Theories -Path-Goal Theory -

Organisational Behavior

Ayushi Jaiswal

Design Real Estate Project Launch

Launch of a New Residential Real Estate Project in Rajarhat New Town - Action Area I, Kolkata   Project Name: Nouvelle     Company Name: ABC Ltd.                            Product: Residential project comprising of 264 apartments on a land area of 3.5 acres (1, 52,460 sq.ft.) Location of the Product:  Image from Google earth Total Construction Area: 5, 50,000 sq.ft. Total of 3 blocks of G+22 comprising of 4 apartments in each floor Product Mix: 3/ 4 BHK Apartments & Penthouses 3BHK - 1500sq.ft to 2000 sq.ft 4BHK - 3000 sq.ft. Penthouses - 5000 sq.ft. Product Features: Premium Facilities & Amenities like: Facilities ·         Fully Air Conditioned Club House ·         Swimming Pool with Jacuzzi & Kids’pool ·         Pool side deck with wooden finish and pool side coffee shop ·         Fully equipped gymnasium overlooking pool with steam rooms ·         Squash Court ·         Badminton Court ·         Banquet Hall ·         Landscaped water body spread over of 10000 sq.ft. ·         Children's Play Area ·         Temple ·         In House Grocery Store & ATM Amenities: ·         Modular kitchen with hob and chimney ·         Fully Air conditioned apartments ·         Italian Marble Flooring in Drawing & Dining ·         Shower Cubicles in all bathrooms ·         Premium quality bathroom and electrical fittings ·         Video Door Phone ·         Wooden flooring in all bed rooms ·         24 hrs. treated water supply ·         High Speed Elevators ·         3 tier security system ·         24X7 powers backup and many more   Target Audience  ·         IT professionals: working in Sector 5 like directors & senior executives, rajarhat & salt lake area not having offices in Sector 5 ·         Pilots ·         Doctors ·         NRI's & NRB's ·         Business class & Investors ·         Other HNI's (i) Mindsets:  ·         As we are aware that people working in IT companies are always under the pressure of delivering the project on time as majority of their clients are based in Europe, USA, Canada and other parts of the world so time becomes the factor. ·         They always have a mindset of leaving close to their office and so they can chose the Rajarhat action Area I because of the availability, clear title of land and overall New Town area which is very well planned by HIDCO and proximity of Rajarhat from main town, airport, upcoming Retail & Commercial developments, Hospitals, Metro, Hotels, IT Parks and Govt. Offices. ·         Pilots & Doctors too have the same mindset of leaving close to their working base so that they less time in travelling and more time with their family. (ii) Options:  ·         As we can see we have a huge pool of target audience in that area who will be interested in buying a residential property in close proximity to their offices and working area and when it comes to good options it is limited. ·         As currently there is no supply of good residential project in Action Area I. We have few projects adjacent to Rajarhat Action Area I like Ideal Aqua View which is 85% sold , PS Panache which is 65% sold and there are two upcoming Residential projects from WBIDFC (West Bengal Infrastructure Development Finance Corporation) & Merlin Group. ·         As we can see the nearby projects are more than 60% & 80% sold out, so they have less option of providing the good flats to the customers. Also, the other two residential projects are upcoming and haven’t been launched yet. (iii) Influences: ·         Prime and on road location and very good connectivity  ·         Lifestyle ·         Family (Nuclear family) & Marital Status ·         Near to their offices and working base (iv) Expectations: ·         Everybody has an expectations that when they are buying any kind of product, the product should be good and their hard earn money should go in safe hands. Target Market:   (i) Geography: ·         New Town is located at 22.35* N 88.28* E. This township covers an area of 28 km and is located in Barasat Sadar subdivision of North 24 Parganas district. ·         Being a planned township New Town is divided into three areas: (a)    Action Area I mainly consisting of Malls, a Sub - CBD (Central Business District) and planned residential and commercial plots (b)   Action Area II is supposedly planned to have a main Central Business District (CBD), institutional plots, IT Business Parks like DLF and Unitech, and plots for large apartments complexes, it will also house the Kolkata Museum of Modern Art, a open Maidan with an Eco-park built around a water body. Action Area II C has many residential housing projects like Hiland Woods, Akankha, Sunrise Point, Starlit and moonbeam housing etc. (c)    Action Area III mainly consists of high rise residential complexes and mini sub - townships like Uniworld City and Sukhobristi and upscale gated residential communities such as DLF Newtown Heights, Shrachi's Roosedale, Unitech's Uniworld City, Tata's Eden Court and Keppel's Elita Vista. Various leading institutes such as IIT Kharagour, St. Xavier’s College and IT majors Infosys and Wipro would be settling up their campuses there. A sprawling Arts Institute has already been set up. ·         New Town being 3 times the size of Saltlake has been allotted as the second IT Hub of Calcutta. ·         Already several IT majors are operational; while others like TCS (allotted 40 acres) and Wipro (allotted 45 acres) have been allotted space. ·         Real estate companies like DLF, Bengal Unitech of Unitech group, Shapoorji Pallonji, Tata group, Singapore based Keppel Land, Ambuja Realty, Bengal Peerless etc. are developing Commercial/Retail/Residential projects, some of which are largely operational today. ·         Some of the operational IT Companies in New Town includes : Cognizant, IBM, Genpact, Hewlett-Packard, Capgemini,TechMahindra, Accenture, Philips, HCL Technologies, Vodafone India, British Telecom, Other IT and ITes companies include eRevMax, Aegis, Xoriant Corp. and many mid-to small cap Tech firms. ·         IT majors like TCS, CTS, Infosys and Wipro have also acquired prime land in New Town and their facilities will be ready soon. The mega TCS SEZ facility is going to open by the end of 2014. Culture: ·         Kolkata is the cultural capital of India. ·         It has long been known for its literary, artistic and revolutionary heritage. ·         As the former capital of India, not only kolkata, West Bengal was the birthplace of modern Indian Literary, artistic and scholastic thought. ·         Bengalis tend to have a special appreciation for the art & literature, its tradition of welcoming new talent has made it a “city of furious creative energy" Language: ·         Bengali, the official state language, is the dominant language in kolkata. ·         English is also used, particularly by the white - collar workforce. ·         Hindi and Urdu are spoken by a sizeable population Target Competition   New Town & Rajarhat ·         We face competition from running projects having a sizeable amount of unsold apartments like PS Panache, Ideal Aqua View, Elita Garden Vista & Club town Gateway ·         Unsold flats in Unitech Uniworld City in Action Area III ·         PS Panache and Ideal Aqua View , the awareness level these projects are very high and more than 60% of their stock is sold. All the existing customers of these projects will refer to their acquaintances whereas we yet to start the project. ·         Elita Garden Vista Phase I of the project is already sold and handed over and the developer is planning to launch the second phase soon between a price bracket of Rs. 4000 – Rs.4200/- per sq. ft. which is around 15% less than our estimated price. ·         Club Town Gateway is just opposite to City Centre II, very close to VIP road so anybody wanting a flat in the extended part of Kolkata near Airport will prefer this project. About the Company: One of the major players in FMCG sector having a net worth of around Rs. 50,000 crores had diversified themselves to Real Estate recently. PRICE Competition (Competitor Pricing) Sl. No. Project Name Developer's Name Location / Address Land Area / Height of Building No. of Apartments Expected Completion Date Current Base Rate Per sqft. 1 Unitech Fresco Bengal Unitech Universal Action Area III Within 100 Acres/ G+14, G+24 4000 approx. End 2013 5595/- 2 Unitech Air Bengal Unitech Universal Action Area III Within 100 Acres/ B+G+39 120 Dec-13 7000/- 3 Elita Garden Vista Sureka Group On the upcoming 2nd MAR, Close to DLF residential building 25 Acres / G+ 14,16,24 & 28 1278 January 2013 ( 1st Phase ) 3800 /- 4 Clubtown Gateway Space Group 200 mts from city center II 2.58 Acres /  ( G+5) 155 End – 2015 5400/- 5 Panache P.S.Group & Srijan Backside of Salt lake Sec-5,close to to new Rajarhat Connector 319 cottah 8 chittaks/ Towers-6 (G+17,G+19,G+21,G+23,G+25) 520 2018 Rs 4900/- sq ft 6 Ideal Aqua View Ideal Group Mahesbathan,Newtown 450 cottah,6 Towers,G+18 650 2018 Rs 4350/- sq ft Pricing Strategy: Considering the current prices of other real estate properties in New Town Area and considering our location and cost of construction along with the current prices of land the Management has decided to price the product competitively so that we can attract huge number of potential customers and then gradually increasing the price based on demand and supply. How you arrived at your price? The real estate pricing is based on 1.      FSI Cost ( Floor, Space, Index) - Floor area ratio (FAR), floor space ratio (FSR), floor space index (FSI), site ratio and plot ratio are all terms for the ratio of a building's total floor area (Gross Floor Area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio. As a formula: Floor area ratio = (total covered area on all floors of all buildings on a certain plot, Gross Floor Area) / (area of the plot) Thus, an FSI of 2.0 would indicate that the total floor area of a building is two times the gross area of the plot on which it is constructed, as would be found in a multiple-story building 2.      Construction Cost - Expense incurred by a contractor for labor, material, equipment, financing, services, utilities, etc., plus overheads and contractor's profit. Costs such as that of land, architectural design, consultant and engineer's fee are not construction costs 3.      Overhead Expenses - An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether a company is doing a high or low volume of business. It is important not just for budgeting purposes, but for determining how much a company must charge for its products or services to make a profit 4.      Profit - A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business 5.      Cost of Capital - It is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio company's existing securities".  It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet We have considered the FSI Cost of Rs. 800, Construction Cost of Rs. 2500/-, Overhead Expenses – 10% of Construction & FSI Cost and 35% of the profit margin. After taking the above mentioned points into consideration, we came to the final base rate of Rs. 5000/- Why should the target consumer accept it? The primary factor for deciding to purchase Real Estate is location, and then comes brand and price. So anybody looking for the property in New Town Area if they have a sizeable amount of budget will consider our project as we are located on a prime piece of land on the MAR (Major Arterial Road) in New Town from the well-known household brand and competitive price. Further the project is surrounded by Retail Malls like Hometown, Axis Mall, Extra Mall, DLF Galleria and upcoming Retail Mall just diagonally opposite to our project. If we compare with our rate viz a viz Elita Garden Vista which is in New Town Action Area III where there is no proper catchment and no future projects are planned as of it whereas we are surrounded with lots of Residential projects like Ambuja Utsa, DCL Shree, Greenwood Park, Greenwood Park Extension, Millennium Towers, Anamika, Eastern High, Greenfield Heights, Sankalpa (Phase II, III & IV) & other Residential complexes or land allotted by HIDCO. Plus our proximity from Sector V (IT hub of East India) and closeness to Salt Lake is another factor why our target consumer should accept it. The specifications which are provided by us is much superior than our competitors like Sl. No. Specifications Nouvelle Others 1 Flooring Imported Marble Vitrified Tiles 2 Modular Kitchen with Hob & Chimney Yes No 3 Air Conditioners Yes – In all Bedrooms, living & dining No 4 Shower Cubicles Yes - In all bathrooms Only in Master bedroom 5 Video Door Phone Yes No 6 Bathroom Fittings & Flooring European style wall &  floor tiles Normal Ceramic tiles PLACE Distribution Channels: Ideally Real Estate is sold through two primary channels 1.      Sole Selling Marketing Agents - It means, where a company appoints a person on behalf of company as an agent of the company who would be authorized for marketing & selling the product or goods of the company in an area where company may not have access. It also means that the person will be exclusively selling the product of that company or brand and not that of any others in full capacity. The Sole Selling Agent will be given salary or commission for the task taken like NK Realtors, Pioneer Properties, Modern Properties and many more. 2.      Direct Selling by the Developers – It is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs. But we have decided to create a team of channel sales agents and direct selling network. Why did you choose the channel? We have chosen this channel networking to reach a larger base of target customers through our sales agents in India, US & UK and through our direct sales network we try to reach the target base of our own customers and investors. Channel Sales Agents - Agents in the sales process can represent either of two parties in the sales process; for example: ·         Sales broker, Seller agency, seller agent, seller representative: This is a traditional role where the salesman represents a person or company on the selling end of a deal. ·         Buyers’ broker or Buyer brokerage: This is where the salesman represents the consumer making the purchase. This is most often applied in large transactions. ·         Disclosed dual agent: This is where the salesman represents both parties in the sale and acts as a mediator for the transaction. The role of the salesman here is to oversee that both parties receive an honest and fair deal, and is responsible to both. ·         Transaction broker: This is where the salesperson represents neither party but handles the transaction only. The seller owes no responsibility to either party getting a fair or honest deal, just that all of the papers are handled properly. ·         Sales outsourcing involves direct branded representation where the sales representatives are recruited, hired, and managed by an external entity but hold quotas, represent themselves as the brand of the client, and report all activities (through their own sales management channels) back to the client. It is akin to a virtual extension of a sales force How do they effectively reach the target consumer? Each sales agency has a team of sales executives and they have their own set of databases and investors. We are planning to touch base with around 100 channel sales agents and if each agent deploys 2 sales executives for our project then in total we will be having a manpower base of around 200 hundred sales executives working for us. References: http://en.wikipedia.org/wiki/Floor_area_ratio http://en.wikipedia.org/wiki/Construction https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=carpet+area+meaning http://www.propmart.com/faqs/faqs.asp?hdcat=BY&faqnum=164&txtSearch=&cbCategory= http://www.99acres.com/new-projects-in-rajarhat-east-kolkata-ffid http://www.commonfloor.com/upcoming-apartments-in-rajarhat/psr-5311800e84d66 http://www.nkrealtors.com/company-significant-transactions-residential-rajarhat.asp?lk=com9 http://www.magicbricks.com/property-for-sale/ALL-RESIDENTIAL-real-estate-Rajarhat-in-Kolkata http://www.hdfcred.com/properties-in-kolkata             Notes: BHK – Bedroom, Hall, Kitchen MAR – Major Arterial Road CREDAI - Confederation of Real Estate Developers' Associations of India CBD – Central Business District WBIDFC - West Bengal Infrastructure Development Finance Corporation FSI COST (Floor, Space, Index) - Floor area ratio (FAR), floor space ratio (FSR), floor space index (FSI), site ratio and plot ratio are all terms for the ratio of a building's total floor area (Gross Floor Area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio. As a formula: Floor area ratio = (total covered area on all floors of all buildings on a certain plot, Gross Floor Area) / (area of the plot) Thus, an FSI of 2.0 would indicate that the total floor area of a building is two times the gross area of the plot on which it is constructed, as would be found in a multiple-story building. CONSTRUCTION COST - Expense incurred by a contractor for labor, material, equipment, financing, services, utilities, etc., plus overheads and contractor's profit. Costs such as that of land, architectural design, consultant and engineer's fee are not construction costs.   OVERHEAD EXPENSES - An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether a company is doing a high or low volume of business. It is important not just for budgeting purposes, but for determining how much a company must charge for its products or services to make a profit PROFIT - A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business. COST OF CAPITAL – It is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio company's existing securities".  It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet SEO (Search Engine Optimization) & SEM (Search Engine Marketing) - Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising. SEM may use search engine optimization (SEO), which adjusts or rewrites website content to achieve a higher ranking in search engine results pages, or use pay per click (PPC)  CARPET AREA: Carpet Area is the effective area available for use within the property, excluding the area occupied by the walls. It is measured from wall to wall within the property and translates into the actual area to lay the carpet. This area does not include the thickness of the inner walls. BUILT UP AREA: Built up area is the carpet area plus the thickness of outer walls and the balconies (in case of an apartment). It is around 10 percent more than the carpet area. A terrace is considered as half the actual area for calculating built up area. SUPER BUILT UP AREA: It is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. This is usually 25 percent more than the built up area. This term is therefore only applicable in the case of multi-dwelling units or apartment complexes. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the super built up area. Developers usually include the common areas such, swimming pool, garden, clubhouse, etc. to the super built up area.   SEZ  (Special Economic Zone) - It is commonly used as a generic term to refer to any modern economic zone. In these zones business and trades laws that differ from the rest of the country. Broadly, SEZs are located within a country's national borders. The aims of the zones include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone liberal policies are introduced. Their policies typically regard investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays.

Marketing and Sales

Deepak Maltumkar