Posted on 13th Nov 2024 01:04:17 AM Marketing
Introduction
In our everyday life, we use real estate in some manner. We make use of real estate resources to provide shelter, comfort, convenience, and privacy, a place of work, recreational facilities and related services. In the estimate real estate represent more than 40% of national wealth (Weimer, 1980). Therefore, the manner in which the resources of this magnitude are used as an important affects on the well-being of our people, the success or failure of business firms and general property of the country.
The term real estate as commonly used has two meanings- i) it is a name given to a commodity “reality” which includes not only land but also all human improvements placed on the land. ii) It is the name given to a business engaged in by those persons who conduct commercial transactions in real estate. The basic component of reality as a commodity is land. It means not only the surface of the earth but also the property rights and interests that attach to ownership of reality. Including subsurface minerals (Encyclopedia America, 2001). Thus the real estate means acquirement of land and building which is called inherent right. The men who are the owner, user, maker, financier or marketer of property have some rights to the property (Weimer, 1980).
In Bangladesh real estate business is recent phenomenon, although such activities have been started sometime in 1964. Ispahani group was the pioneer in this sector. But in early 1980’s with the inception of Eastem Housing Ltd. the business started flourishing. Now this is a booming sector of the economy. Since late 1980’s it come into the purview of business field. As a fast growing city of Bangladesh, such business was initially concentrated in Dhaka; of course, some limited scales of activities have been started later on in Chittagong and Khulna cities. At present there are about 161 firms operating real estate business in Dhaka city under REHAB (From the record of the Real Estate Housing Association of Bangladesh in Dhaka).
The rate of urbanization in the past decades was very high in Bangladesh. The percent of growth rate of urban population is 5-6% per annum (Annual report of REHAB 2004). About 25% of Bangladeshi is now living in urban area which will be 35% in 2015 (Annual report of REHAB, 2004). At present housing condition of urban area is unplanned, unacceptable and also lack of proper marketing strategy. Estimated for annual requirements for new housing in urban areas (in the entire country) vary from 6,00,000 to 8,00,000 units (Annual report of REHAB, 2004). There is acute shortage of housing supply in al the urban areas and backlog is continually on the increase. Particularly in Dhaka this figure is about 60,000 new units plus 2,00,000 units (replacement + backlog) per year (Annual report of REHAB, 2004).
Table 1 Trend of population growth in Dhaka City
| Year | Population (in million) | Growth Rate |
| 1974 | 1.68 | - |
| 1981 | 3.43 | 14.88% |
| 1991 | 6.9 | 10.11% |
| 2001 | 9.9 | 4.34% |
Source: Statistical year book of Bangladesh 2003
Table 1 shows that trend of population growth in Dhaka city decreasing day by day. In 1981 the growth rate was 14.88% and in 2001 the growth rate decrease in 4.34%.
The study focuses the patterns of marketing strategy of Real Estate business. How they behave under the controllable & uncontrollable factors of environment and also what considerations are taken to be their base of making their strategy. To analyze those activities the study will find out “what is the best strategy to play this (Real Estate Business) game”.
Importance of the Study
Dhaka is currently growing very fast in comparison to other cities in Bangladesh. UN declaration and the constitution of Bangladesh have ensured people’s fundamental right to adequate standard of living. But it is matter of regret that a large section of urban population is slum dwellers that live in very poor condition. It is estimated that about 3.5 million people in Dhaka live in squatter, slum and other dilapidated housing (annual report of REHAB 2004). They require urgent attention for arranging decent living condition and housing facilities for them. High population growth rate, high land value and high cost of construction materials are working as constrains to provide individual housing unit for all. So the demand of residential apartment is growing. Real Estate sector is trying to fulfill this demand. Now Dhaka needs about 16,000 new housing units each year. But the real estate can supply only 5,000 – 6,000 units per annum and the supply of housing in government sector is almost stagnant (annual report of REHAB 2004).
The result in a huge shortage of housing in Dhaka and it is increasing every year. As per the huge demand of housing the private Real Estate companies cannot fulfill those demands. Several researchers identified various reasons behind the problem. The present study hypothesized that due to lack of appropriate marketing strategy the companies is not able to fulfill those demand. So this will contribute, to a great extent, to formulate and implement the appropriate marketing strategy which will vital for the survival of the company. However the present study may help the Real Estate companies to achieve the following issues categorically:
· Real Estate Sector is developing in an unplanned way.
· The private sector is taking vigorously active part in all respect to go ahead with a view to fulfilling one of the basic needs of human being, shelter.
· At present the sector is involved in the urban area, which is considered to be the most profitable.
· The total initiative is from the Private sector, which is rapidly accepting all challenges with respect to finance and space availability and its sales.
· Government participation is more in terms of regulations and control.
· Dhaka being the center of attraction is growing vertically rather than horizontally.
· This primarily is due to shortage of land. With the saturation in the up-market the real estate developers are looking for new avenues to continue contributing to the economy and ensuring its own survival.
· With this scenario, the above topic is expected to be highly practical and needful for any research of this level.
Objectives of the Study
The purpose of the present study is to investigate the nature of marketing strategy to be followed by the Real Estate Industry in Apartment business. Considering this purpose, the present study sets the following specific objectives:
· To investigate the present situation of apartment business
· To find out the relationship between perceived value and price of apartment construction or developed by Real Estate Company and examine the activities in the business system in terms of level of resource employed by the companies.
· To identify the intensity of competition and their competitors probable moves.
· To prescribe the appropriate strategy to be followed by the Real Estate Company.
· Action program necessary to implement the strategy.
Scope of the Report
The report will mainly analyze the pattern of upcoming & existing marketing strategy in the Real Estate sector. The report basically takes into consideration only the apartments and flat in the main cities of the country. Land development and improvement will not be considered for the study.
Methodology
The methodology of this study consists on sources of information, information collection method, that analysis and presentation. This methodology helps to collect and analyse right data into the right form.
A. Sources of Information:
1. Primary Sources:
· Questionnaire: Close ended and open ended questionnaire survey has been conducted on individuals, present & prospective clients, developers, as well as financial institutions.
· Face to face to Interview: Interview of the expert in the related field has been conducted.
2. Secondary Sources:
· Secondary data has been collected through various publication and internet.
B. Information Collection Method:
1. Sampling Method Determination:
· Simple random and stratified sampling method has been used to conduct the individuals, present & prospective client’s survey.
· Judgmental sampling method has been used to conduct survey among the developers.
2. Sample Size Determination:
· Sample size has been determined rationally for each questionnaire survey.
1. Construction of the questionnaire
· Both Open-ended and close-ended questions have been included to develop the questionnaire.
2. Interview Procedure
· Some set questions and discussion method has been used to conduct the face to face interview of the experts.
C. Data Analysis:
Simple percentage method used to analysis the survey data. The analysis is demonstrated by various table, chart and graph.
TABLE OF CONTENT
Chapter One: Introduction
1.1 Introduction
1.2 Importance of the Study
1.3 Literature Review
1.4 Objective of the Study
1.5 Scope of the Study
1.6 Methodology of the Study
Chapter Two: Conceptual Background of the Study
Chapter Three: Theoretical Framework of this Study
Chapter Four: Major Findings of this Study
4.1 Present Situation of Apartment Business
4.1.1 Characteristics of apartment buildings companies
4.1.2 Present marketing situation of apartment
4.2 Business System
4.3 Rules of the game
4.3.1 Perceived values
4.3.2 Coordination of activities in business system
4.3 Identify the other players
4.4 Competitive moves
4.5 Generic strategy
Chapters Five: Action Program
5.1 Target market
5.2 Product
5.3 Price
5.4 Distribution
5.5 Promotion
Chapter Six: Limitations & Conclusion
Reference
Appendix
Internship, Report, Marketing, Strategy, Private, Real, Estate, Housing, Association, Bangladesh, REHAB, Apartment, Complexes, Business, Commercial, Theoretical, Framework, Buildings, Companies
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