Chapter 1
Background of the Study
1.1 Introduction:
Marketing is the process of communicating the value of a product or service to customers. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value.
According to Prof. Philip Kotler and Gary Armstrong – “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”
Marketing Mix is the combination of elements to describe the strategic position of a product or service in the marketplace. The term ‘marketing mix’ refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization. The four elements of the marketing mix are sometimes referred to the four Ps of marketing mix are —product, price, place and promotion.
KEARI Limited is leading name in quality development in the field of real estate having nationwide operations. KEARI Limited is committed to offer dependable professional service in the field of real estate aimed at transparency in transaction by providing the high quality, cost effective and environment friendly flat and commercial space to their valuable clients. KEARI has many projects in Chittagong City.
As an intern I have chosen to study about Marketing Mix of KEARI Limited to analyze the whole business of a real estate company. This report mainly focuses on Product, place, price and Promotion of KEARI Ltd.
1.2 Objectives of the Study
The main objective of this report is to Study Marketing Mix of KEARI Limited in the Real Estate Business.
The specific objectives of the report are as follows:
Ø To understand about products offerings of KEARI limited.
Ø To study factors affecting price and pricing strategy.
Ø To study about the places that is selected by the company.
Ø To analyze the promotional tools used by KEARI limited.
Ø To put forward some recommendations to overcome the problems found during the study.
1.3 Methodology of the Study
The data have been collected from both Primary and Secondary sources.
Primary Sources:
The primary data has been collected through:
1. Close eye on the workings of Marketing and Sales Department
2. Consulting with head of marketing & high officials, KEARI Ltd. Chittagong
3. From Interviews and Personal communication with KEARI’s Staffs, clients, marketing executives and with Professional Experts
4. Projects site visits have been done to collect first hand data to know about how projects are carried on by KEARI Limited
Secondary Sources:
The secondary data has been collected through:
1. Report of Company
2. Real Estate Directory
3. Collecting data from the database of KEARI Ltd. Ctg. Office.
4. Newspapers Advertisements
5. Company’s Brochures and document
6. Web-Sites and Internet
1.4 Scope of the study:
This internship is mainly a job oriented experience which has been generated by getting involved in workings of Marketing and Sales Department, interviewing targeted customers and the people who are working at the top management of KEARI Limited. The report covers Evaluating Marketing mix of KEARI Limited in the Real Estate Business in Chittagong. Time duration of study was only two months, thus the scope of this study is limited in nature.
It covers functional areas of Marketing and Sales department based on ingredients of Marketing Mix as Product, Place, Price and Promotion of KEARI Limited. Everyday demand of real estate is increasing in Chittagong. The detail about product, place, price and promotion of this business & this study will help the investor, manufacturer as well as learner.
Through this study one can have a precise idea about Real Estate Business and it Marketing Mixes. Nonetheless, I have tried my utmost efforts to make it more informative and practical.
1.5 Limitations of the Study:
During the two months Internship period, I learnt many practical things and I must accept that working in a corporate environment was fully an enjoyable experience.
Notably, I am thankful to executives and staffs of KEARI Limited for their kind co-operations. Some hurdles faced by me during internship are pointed below:
Only Real Estate Sector of the company is studied leaving asides its Tourism and Poultry business sector. This study was only Chittagong based. So, this report doesn’t represent the company position in the county. Target customers were not much interested in answering questions or giving some time. Busy executives and officers Unsystematic data arrangement. Confidential data not disclosed. Time constraints.
Thus, it was being more challenging for me.
Chapter 2
The KEARI Limited
2.1 THE KEARI LIMITED:
KEARI Limited, which commenced its operation on 23September 1996, is one of the reputed companies in the country. The company is a private limited company having three diversified business sectors as Real estate, Tourism and Poultry. The department for each business sector is separated and is well managed.
KEARI Limited is leading name in quality development in the field of real estate having nationwide operations. It is registered and active member of REHAB and is listed membership no. is 137. The company is in business in the field of Real Estate Business has a portfolio of projects in both residential and commercial compliment in the different city of Bangladesh. KEARI Limited is committed to offer dependable professional service in the field of real estate aimed at transparency in transaction by providing the high quality, cost effective and environment friendly flat and commercial space to their valuable clients. KEARI has many projects in Chittagong City.
KEARI is also famous for its Tourism Services offers. It has a separate department for travel and tours. KEARI Tour & Services Ltd. is a leading & pioneer Tour Operator in Bangladesh and brings you a stunning luxury in water. KEARI CRUISE & DINE, KEARI SINDBAD, KEARI KARNAPHULY, KEARI TORONGO are the four ships of KEARI Tour & Services Ltd. KEARI CRUISE & Dine has facilities of Buffet dinner, Family cubic for lunch, Sky deck executive conference Suite , Exclusive Chair Coach and other luxuries. There are restaurants owned by KEARI in St. Martin as KEARI MARZAN, at Teknafghat as KEARI SHARDUL.
KEARI also has egg farm business as KEARI Poultry Hatchery & Process Ltd. in Satmosjit Road, Dhanmondi, Dhaka. The KEARI Limited is committed to have a diversified business. In very near future, KEARI Limited will be known to people in diversified business areas.
2.4 Competitors and Future Prospects:
Some of the main competitors of the company are SANMAR, EPIC Properties, MDC, BIO, Mishmak Developments, ANZ Properties, Shubashati Properties, RANGS Properties, CPDL and NAVANA.
The area of interest for the future expansion and diversification are:
Telephone / wireless communication and information technology Solar power / energy Packaging industry Natural / composite fertilizer Water treatment and purification plant Recast building blocks Compressed natural gas project Power generation Sponge iron / steel / steel re- rolling
2.5 Main Allies Organizations of KEARI Limited:
These Allies organizations are helping KEARI Limited in Various ways. KEARI Limited has successfully maintained good relations with these organizations.
REHAB as the Promoter of Real Estate Business:
The KEARI Limited is an active member of the REHAB and its membership no. is 137. KEARI Limited has successfully attended the REHAB Fair 2006, 2007, 2008, 2009 and 2010.
Companies supplying raw materials:
The KEARI Limited has to use raw materials like rods, cement, paints, tiles etc for the development of Projects.
Some of the main Companies supplying raw materials are:
RUBY CEMENT CONFIDENCE CEMENT BSRM BERGER PAINTS RAK TILES
Institution financing Home Loans:
National Housing Ltd
National Housing Finance And Investments Limited (NHFIL) is a unique Loans and Savings institution operating in the country. It is a Public Limited Company under the Companies Act, 1994 and licensed by Bangladesh Bank under the Financial Institutions Act, 1993.
Banks Financing Home Loan:
KEARI helps their client by making relation or link between client and financing Banks.
The main banks financing home loans for KEARI Limited clients are:
Delta BRAC Housing Finance Corporation(DBH) Standard Chartered Bank (SCB) Hongkong and Shanghai Banking Corporation (HSBC) Dhaka Bank Islami Bank Limited.
2.6 National and International Image of Real Estate:
Address Details
Plot # 125/A, Block A Bashundhara R/A, Road
Road no # 2, Baridhara-Dhaka - 1229, Bangladesh
Telephone: +88028402008~17
Bashundhara City Development Limited
Bashundhara City is the recent addition to the Bashundhara Group, the largest real estate company of Bangladesh, which has started operation as a real estate venture known as "Bashundhara" under the aegis of the Group's first concern - the East West Property Development (Pvt) Ltd in 1987.
Now Bashundhara City Development is the most famous Real Estate Company of the country with international fame and popularity. The Project of this company is Bashundhara City, which is a shopping mall located in Dhaka, Bangladesh with a attractive architecture. Opened to the public on 6 August 2004, the mall is located at Panthapath, near Karwan Bazar, in Dhaka city.
The 12th largest shopping and recreation facility in the world and supposed to be the biggest shopping mall in the South Asia, the Bashundhara City is distinct by its architectural beauty. Up to 25,000 people visit the mall daily, which is the first western style mall in the city, designed by the Principal Architect Mustapha Khalid Palash and Mohammad Foyez Ullah of Vistaara. The cost of the building is more than $100 million; construction started in 1998. Bashundhara City has been designed to cater to all of Dhaka's fashion and lifestyle requirements.
The mall has space for 2,500 retail stores and cafeterias and also possesses a large underground gymnasium, a multiplex styled movie theater and top floor food court along with an indoor theme park stores offering every available Bangladeshi brand, besides housing a state-of-the-art gym, complete with centers for weight training, fitness assessment, nutrition and aerobics, swimming pool, steam, sauna and Jacuzzi facilities including outlets of globally reputed consumer brands. It has 1.912 million square feet space. It has won the "Super brands Award 2009. The fully air-conditioned shopping mall with rooftop gardens is considered a modern symbol of the emerging city of Dhaka and the country itself in the international arena. This project can be taken as a standard height of achievement for any real estate company.
Chapter 3
Marketing Mix of KEARI Limited
Product
Place
Promotion
3. Introductions to the marketing mix:
The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the seven Ps or eight Ps to address the different nature of services.
The 'seven Ps' refers to the already mentioned four Ps, plus 'physical evidence', 'people', and 'process'.
According to Philip Kotler – “Marketing Mix is the setting of the firms of marketing decision variables at a particular point in time.”
Thus evaluating Marketing Mix of any company is very important aspect to understand overall performance and future potentials of the company.
In Conclusion, the mix of activities done to satisfy wants of target market is called marketing mix. Products, place, promotion and price are the elements of marketing mix. Organizational goal can’t be achieved without proper mix of these elements of marketing
4p’s of Marketing
Fig: Elements of Marketing Mix
The first element is the product. A product is seen as an item that satisfies what a consumer needs or wants. Firms and industry can’t satisfy the wants of target market in the lack of product. So, product, plan & development, standardization, grading etc. should be seriously considered.
Products are of two types:
a. Tangible good
b. 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. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor.
The marketer must also consider the product mix. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each element complements the other.
Product Mix elements:
3. A1 Product Offerings of KEARI Limited:
KEARI Limited is a very renowned name having different business sectors like Real Estate, Tours and Tourism, Hotels and Restaurants, poultry etc. I have studied about Real Estate sector of KEARI Limited for my internship program. The main products offered by KEARI Limited in the Real Estate sector are Apartments, Flats, Buildings, Shops, Common Space and Chamber. KEARI Limited is providing high quality, cost effective and environment friendly flat and commercial space to the valuable clients.
Apart from these products it also provides services for consulting about land and building structures.
3. A2 KEARI Apartments Accessories:
Some of the main accessories supplied by KEARI Limited:
Door: Main door teak chamber shutter with shilkarai/teak chamber frame and also as equivalent wood for frame.
Window: All external windows will have aluminum shutter with 5mm glass.
Floor: Apartments floor will be of tiles.
Painting: Soft color high quality plastic paint for all internal walls and ceilings.
Bathroom: Glazed wall tiles and floor tiles in all bathroom quality Sanitary wares, stainless steel soap case, and standard size mirror will be used. Optional concealed Hot & Cold water lines will be provided in master bathroom. Master bathroom and other bathroom have quality pedestal basin and commode & low- down with fittings. There is provision for geyser in master bathroom. Floor is adequately sloped towards water outlet.
Kitchen: Double burner gas point over platform. One high polish Stainless steel sink with mixer. Wall tiles up to 2 feet height from working counter and one suitable location of exhaust fan. Any optional work will be carried out on additional payment.
Electrical: All electrical wiring phone lines gas & water lines etc. will be concealed. One-telephone connection points in master bad room and living room. Quality electrical switch, sockets, plugs etc. Adequate plug points are made available for one AC, Television, Refrigerator and other electrical appliances.
3. A3 Features of Offerings:
Features of Products Features of Services
3. A4 Ongoing Projects of KEARI Limited
Project Name
|
Location
|
Project Details
|
KEARIChowdhury
|
Gulshan, Dhaka
|
7 Storied Residential
|
KEARIBuruj
|
Kallyanpur, Dhaka
|
12 Storied Residential
|
KEARIAman
|
BaitulAman, Dhaka
|
6 Storied Residential
|
KEARIHawlader
|
Uttara, Dhaka
|
7 Storied Residential
|
KEARIAndalib
|
Uttara, Dhaka
|
7 Storied Residential
|
KEARI Sky
|
West Dhanmondi, Dhaka
|
7 Storied Residential
|
KEARI Rose Bud
|
Kallyanpur, Dhaka
|
9 Storied Residential
|
KEARIAftab Tower
|
Jatrabari., Dhaka
|
9 Storied Residential
|
KEARI Star
|
Uttara, Dhaka
|
5 Storied Residential
|
KEARI SA Tower
|
Wasa circle, Chittagong
|
6 storied com. cum residential
|
KEARIRahmat
|
DT-road,Eidgah, Chittagong
|
9 storied residential
|
Al Islam KEARI
|
DT-road,Eidgah, Chittagong
|
6 Storied Building
|
3. A5 Completed Project of KEARI Limited:
Project Name
|
Location
|
Project Details
|
KEARIMaswood
|
Nasirabad Housing Society, Chittagong
|
9 storied residential
|
KEARITayeb
|
Halishahar, Chittagong
|
6 storied residential
|
KEARI Plaza
|
Dhanmandi, Dhaka
|
6 storied commercial
|
KEARIHemadree
|
Dhanmandi, Dhaka
|
6 storied commercial
|
KEARINirjhar
|
Dhanmandi R/A, Dhaka
|
6 storied residential
|
KEARIFadl
|
Baridhara, Dhaka
|
6 storied residential
|
KEARIPaanshi
|
Dhanmandi, Dhaka
|
6 storied residential
|
KEARI Dalia
|
Uttara, Dhaka
|
6 storied residential
|
KEARIProshani
|
North khulshi R/A, Chittagong
|
9Storied Residential
|
KEARIRowshan
|
Southkhulshi R/A, Chittagong
|
6Storied Residential
|
KEARI Khan
|
Jamal Khan, Chittagong
|
18 storied commercial cum residential
|
KEARINaima
|
Halishahar H Block, Chittagong
|
6 storied residential
|
KEARISheema
|
Halishahar K Block, Chittagong
|
6 storied residential
|
3. A6 Clients of Real Estate property:
It is approximately about 60% of the total apartments are owned by the people working abroad, 24% are businessman and the remaining 16% are of different professionals like Doctors, Engineers, teachers, Lawyers, Bankers, Defense Personnel, etc. The following table shows category of clients of the real estate property in Chittagong City:-
Table:
Category of Clients
|
Percentage
|
Upper Class People
|
60%
|
Middle Class People
|
24%
|
Professionals & others
|
16%
|
Total
|
100%
|
3. B Price:
The 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. The marketer should set a price that complements the other elements of the marketing mix
As the customers pay price for the quality, the utility of the good should be equal to the price. Price also affects the sales of any goods and services. If the price of goods is low, sales tend to increase and vice versa. When setting a price, the marketer must be aware of the customer perceived value for the product. Minimization of production cost has become a very crucial issue for setting profitable price in today’s business world.
There are many factors which affect the price of any product. These factors are collectively called Price Mix. It is very important to analyze elements of price mix for gaining a competitive advantage and setting a profitable price.
Elements of Price Mix
3. B1 Pricing strategies of KEARI Limited:
KEARI Limited wants maximum current profits by providing satisfactory service to their valuable clients. It means company chooses their price for their product which produces maximum profit and considering the highest value to their clients.
At very first the whole budget is estimated for the project by KEARI Limited. For this estimation, costs includes all cost related with administration, costs related with departments like Engineering, construction, Marketing and sales.
Furthermore miscellaneous costs are added and finally a total cost is estimated to make a suitable pricing strategy by the company.
Thus, cost estimation of KEARI Limited includes:
a. Fixed Cost
b. Variable Cost
Fixed Cost does not vary with production or sales level.
Fixed costs of KEARI Limited are mentioned below-
● Cost of equipment and machinery for construction.
● Office Administration and maintenance cost.
● Land cost.
● Building cost & Vehicle cost.
● Advance money, Broker & Consultancy fees.
Variable cost varies directly with level of production.
Some variable costs of KEARI Limited are mentioned below-
● Raw materials cost.
● Labor cost.
● Variable overhead
3. B2 Prices of KEARI Products:
The price of KEARI products is decided adding 40-50% profit on the whole cost estimated for the project. The company tries making its price reasonable and there is existence of long term installment facilities. And it also provide discount 5% for 50% down payment & 10% discount for 100% down payment at the time sales. KEARI Limited has to analyze the current standard market price of real estate and prices of its competitors to make its pricing effective for profitable sales. This is not an easy task; ensuring market standard quality at lower price than competitors makes KEARI an outstanding Company. It ensures the lowest price of car parking & minimum utilities cost.
Now I am showing the unique prices of KEARI products are given following:
SL
|
Project Name
|
Price (Per Sft.)
|
01
|
KEARI Elysium
|
Shop 7000/ to 12,000/=
Apt. 3000/= to 3800/=
|
02
|
KEARI Maswood
|
Apt. 3200/= to 4000/=
|
03
|
KEARI Sultana
|
Apt. 3200/ to 4000/=
|
04
|
KEARI Rahmat
|
Apt. 4000/= to 4500/=
|
05
|
KEARI Khan
|
Shop 20000 fixed, Chamber 3500/= to 8000/,
Apt. 3200/= to 6000/=
|
06
|
KEARI Rowshan
|
Apt. 3500/= to 4000/=
|
07
|
KEARI Tayeb
|
Apt. 3000/= to 3800/=
|
08
|
KEARI Naima
|
Apt. 3000/= to 4000/=
|
09
|
KEARIProshanti
|
Apt. 5500/= to 8000/=
|
10
|
KEARISATower
|
Apt. 4500/= to 6500/, Comm.Space20000 fixed
|
11
|
Al IslamKEARITower
|
Apt. 3800/= to 4000/=
|
Pricing is done in per sq. feet measures. Pricing strategies are prone to change because of different conditions like project land cost, location, materials used and many other variable costs.
3. C Place:
The place element of the marketing mix is defining how and where the product is being sold. Place means the availability of products, seller and buyer. There ought to be a medium in between seller and buyer, this is called place. It could be location, a shopping center, a market place or even a virtual place like internet.
The entirety of different activities related to supply products to the targeted market
is called Place Mix. Mainly the channel of distribution and the activities related to physical distribution are included in place mix.
If the channel of distribution is not good it adversely affects the whole business.
So, physical distribution should be made according to the nature of product through proper channel. Generally, if the products are supplied at the right place as wanted by customers, sales quantity can be increased. Thus it is very necessary to consider all the factors affecting Place mix.
Elements of Place Mix
3. C1 Project location of KEARI Limited:
KEARI Limited generally chooses the project location which is located near the market with good facility of roads, near by the industrial area which is feasible for good business. Selection of place is sometimes also affected by costs of land, flexibility of land owners for ownership contract.
Some of the project location of KEARI Limited is listed below:
SL
|
Project Name
|
Location
|
Project Type
|
01
|
KEARI Rowshan
|
1.no Road,SouthKhulshi,CTG.
|
9 Storied Residential Project.
|
02
|
KEARI Naima
|
Halishahar, ‘H’- Block, Chittagong
|
6 Storied Residential Project.
|
03
|
KEARI Khan
|
Zamal Khan road, Chittagong.
|
14 Storied Residential & Commercial Project
|
04
|
KEARI Rahmat
|
RahmatGonj
|
12 Storied Residential Project.
|
05
|
KEARIproshanti
|
North khulshi Road #9 ctg.
|
9 Storied Residential Project
|
06
|
KEARISATower
|
Wasa CircleChittagong
|
6 Storied Residential Project
|
07
|
KEARISheema
|
Karnafully R/A Road # 9
Halishahar “k” Block
|
6 Storied Residential Project
|
08
|
Al IslamKEARITower
|
Eidgah DT Road
|
6 Storied Residential Project
|
Now KEARI limited has much expanded their project in different area in Chittagong city as Nasirabad Housing Society, Nizam Road, Panchlaish, Shunghanda R/A, Khulshi, Agrabad CDA, Chandgaon R/A etc
3. D Promotion:
Promotion represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion is a very crucial issue in marketing, a company, its products, reason of establishments and survival, its business etc is introduced to public through promotions. Thus companies spent millions of dollars for this purpose. Tv ads, Paper ads, radio ads, Contests, discounts etc. are examples of promotion.
MNCs are top in the list for spending billions of dollars in promotions and marketing of their products. Coca Cola, Unilever, Honda, BMW and many other MNCs are spending money just for promotion. This marketing tool helps in creating distinctiveness and Brand Value.
Promotion comprises elements such as: advertising, public relations, sales promotion, Personal selling and Direct Marketing.
3. D1 Promotional Activities of KEARI Limited:
KEARI Limited is using a number of promotional tools to promote their product.
These Promotional tools used by KEARI Limited are:
Brochures, Paper Advertising, Offer Letter & Mail:
KEARI Limited uses above mentioned tools for promotion.
Some of the pictures of such tools are below:
Sky board/Bill Board/ Neon Sign/Light Box:
Neon sign/Bill Board/ light Box this tools knock the peoples mind about a product.
Neon Sign, Bill Board and Light Box are used by KEARI limited for promoting their business.
Some of the pictures are given below
Personal selling:
Personal selling consists of verbal communication between sales people and one or more prospective purchasers with objective of making a sales and building customer relationship. Annual expenditures of personal selling are much larger than advertising perhaps twice as much.
Personal selling tools of KEARI Limited are given following:
Sales presentations. Sales meeting. Fair and trade shows.
Sales promotion:
Sales promotion is short terms incentives to encourage the purchase and sales of product and services.
Sales promotion tools of KEARI Limited are given following:
Gifts like watch, mug, key ring Fair and trade shows. Exhibits. Demonstration. Entertainment.
Pictures of fair and gift of KEARI limited are given bellow
Direct Marketing:
Direct marketing is direct communication with carefully individual customer. Direct marketing use telephone, mail, fax, e-mail, internet and other tools to communicate directly specific consumers.
Direct marketing tools of KEARI Limited are given following:
Mail Telemarketing Fax mail E-mail
Public relations:
Public relations is where communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars, trade fairs events.
Public relations is building good relations with the company’s various public by obtaining favorable publicity, building up a good” corporate image” and handling or heading on favorable rumors, stories and events.
Public relations tools of KEARI Limited are given following
v KEARI treats their clients as business partner rather than customer.
v Maintain valuable relationships with customers and clients.
v Community relations.
v Executives are well experienced to treat Public in a friendly manner.
Telemarketing: Telemarketing involves the use of the telephone and calls centers to attract prospects, sell to existing customers and provide service by taking orders and answering questions. Telemarketing helps companies increase revenues, reduce selling costs and improves customer satisfaction.
The executives of the KEARI limited make calls to their potential customer to give about the new product and schedule appointment for business discussion
Relationship Marketing: Relationship is one of another important tool for promoting product because word of mouth has a great effect in market. That is making a good relation with the consumer and considering them as a family member.
I analyzed that satisfied staffs and customers of KEARI limited are making positive comments about the company and there offerings.
Corporate offer: Sometime price is reducing for high volume of sales.
In KEARI when a buyer paid his amount at a time then company gave him 10% discount.
Fair Arrangement: Fair is another important tool for promoting product because of huge numbers of potential buyers come for enjoying fair.
KERAI limited participate in the fair of REHAB and demonstrate about the projects.
Direct Force:
Direct marketing is the use of consumer direct (CD) channels to reach and deliver goods and services to customers without using marketing middleman. These channels include direct mail, catalogs, telemarketing, interactive TV, Web sites and mobile services. Direct marketing is one of the fastest growing avenues for serving customers. KEARI use these sales Executive for direct sales, which on is most attractive and fruit full promotional tools for its business.
Direct Mail:
KERAI limited identifies their customer by the various directories, including past purchase history, previous request for information and application forms.
Word Of Mouth Marketing and Publicity:
WOMM:
I found WOMM has been effective for KEARI Limited as the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). Word-of-mouth depends on the extent of customer satisfaction with the product or service and on the degree of its perceived value.
Publicity:
The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly is called publicity. Specifically, KEARI Limited has not been using publicity broadly for their business promotions. But still, the company has been a matter of talks and focus in News for company chairman being recognized personnel by government, its participation in Trade Fairs, arrangements for Internship program, for different websites discussing about KEARI Limited like Facebook and Yellow Pages, organizing tour of the business and projects, for Hand Over ceremony of the Projects.
Cable Advertising, Corporate offer & discounts:
KEARI Limited uses cables for advertisements but not very often. The marketers give more emphasis to textual advertisements than visual ads. ECl is used for Cable Advertisements by KEARI limited.
KEARI also honors those clients who pay whole amount of Price at a time. The company gives discount on the total price by 10% for such Corporate Clients.
Internet & Website:
KEARI Limited has its own website i.e. www.KEARIbd.com but, their website is not well enough developed. Various other websites also provides links and information about KEARI Limited.
3. E Competitive Analysis of KEARI Limited:
In Chittagong many developers are working at different place that’s why the real estate business is now most competitive. Some of the real estate firms are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
But among these developers, following companies are best according to market share.
|
|
|
|
|
Competitive analysis of Real Estate Companies in Chittagong:
Sl.
|
Company Name
|
Completed Projects
|
Ongoing projects
|
Total Projects
|
01
|
ANZ Properties
|
South Khulshi--1
Panchlaish R/A-1
Nasirabad---4 Nasirabad Cop.-1
|
7
| |
02.
|
Mishmak Developments
|
Main khulshi-1
|
Ispahani-1
Ham Sen Lane----1
O.R. Nizam Road-1
|
4
|
03
|
Shubashati
properties
|
Kazir Dewri---1
South Khulshi-1
|
Love Lane-1
Shugondha-1
Panchlaish-1
|
5
|
04
|
RANGS Properties
|
Nasirabad-1
Khulshi-----2
|
3
| |
05
|
CPDL
|
N. Kanon-----1
Enayetbazar-1
Andarkilla---1
|
Kazir dewri----4
North Khulshi-1
Panchlaish-----1
Muradpur------1
Cox’s bazaar---1
|
11
|
06
|
Mission Developers
|
Halishahar---1
Kazir Dewri-1
|
2
|
07
|
Epic properties
|
South Khulshi-1
|
Chat. Road---2
Kazir Dewri--1
Pathar Ghata-2
Love Lane----1
Dev. Pahar----1
Mehedi Bag---1
|
9
|
08
|
Ideal Home Builders
|
Nasirabad--1
Chat. Road-1
Lalkhan-----1
|
Mehedibag----2
Lalkhan--------3
Katalgonj------1
Enayet Bazar-1
|
10
|
09
|
Northern Foundation
|
Lalkhan------1
Nan. Kanon-1
|
2
| |
10
|
Prashad Nirman
|
Main Khulshi - 2
|
M.M. Ali Road-1
Shadorgat-------1
|
4
|
11
|
Shah Amanat Properties
|
Bad. Mia Road-1
Enayet Bazar-1
|
2
| |
12
|
Green Delta Housing
|
North khulshi-1
Agrabad CDA-4
Lalkhan Bazar-2
|
7
| |
13
|
ABC Real Estate Ltd.
|
North Khulshi-1
|
1
| |
14
|
Assent Development
|
Khulshi-------------1
O.R. Nizam Road-1
|
2
|
15
|
Equity
|
Nasirabad---2
O.R. Nizam -2
Jamal Khan-2
Shugandha--2
Hillview------1
Panchlaish--1
Mehadibag--2
Kazir Dewri-1
Mirzapole---1
|
Enayet Bazar-3
Mehedibag----2
Dev. Pahar----2
khulsh-1
Panchlaish----1
Chat. Road----1
Momin Road--1
Agrabad-1
|
26
|
16
|
Sanmar
|
15 Projects
At
Different
Prime Location
|
15 Projects
At
Different
Prime Location
|
30
|
17
|
BTI
|
02 Projects At
Different
Prime Location
|
05 Projects At
Different
Prime Location
|
7
|
18
|
KEARI
|
Nasirabad---1
Chawalkbazar-1
|
Joynagor----1
Khulshi------1
Rahmatgonj—1
Halishahar----2
Wasa Moor---1
|
8
|
Chapter 4
Findings, Recommendations
& Conclusion
Findings:
After going through two months internship program on Evaluation of marketing mix of KEARI limited in real estate sector in Chittagong, I came up with some important findings listed below on the headings as:
1. Product of KEARI limited:
Ø KEARI limited offered the product as of two categories to their client:
1) Commercial: like shop, towers,
2) Residential: like apartment, flats,
KEARI limited mainly offers their products to upper classes and people working abroad. Most of the offerings are of economy type. It doesn’t involve in constructions of bridges and government buildings.
2. Price of KEARI limited:
Ø KEARI limited uses there pricing strategy according to the location of land, price of the land, demands of the land owner, non refundable amount given to owner, cost of materials used, government tax, administrative and miscellanies cost ,administrative and other cost , profit desire involved. The price of product is reasonable and economical compared to competitors. Thus, price varies as per different variables related mentioned above.
3. Place of KEARI limited:
Ø KEARI limited chooses the places which are much familiar and most accessible to the public, client and market. KEARI chooses their site place which is much nearer to the market. KEARI limited selects place mostly in business areas of the city like Khulsi, Chittagong, Halishohor etc.
4. Promotion of KEARI limited:
Ø The promotional tools of KEARI Limited are effective but limited. They mainly do Advertisements to inform people with their product offerings focusing on textual ads and publications rather than Visual Ads.
Ads are mainly given in newspaper, Print and brochures and billboards. Personal sales like sales meeting, fair and trade shows is used for promotion. Sales people have some complain about sales commissions and incentives. It also provides sales promotion like gifts, fair and trade shows, Demonstration. Fax, telemarketing, and e-mail are being used for Direct Marketing.
It tries to maintain good image towards the public, client and customer in a friendly way.
Recommendations:
After studying Marketing Mix of KEARI limited in real estate sector in Chittagong. On the basis of my findings, it can be recommended that:-
1. Product of KEARI limited:
Ø KEARI has a broad scope, greater potential and opportunity. Some of my recommendations for the product offerings are:
1) It should also offer product to the middle and lower level of the client.
2) Luxurious products should be offered to make it a strong brand.
3) It should take contracts of bridges and government buildings.
2. Price of KEARI limited:
Ø The pricing strategy is good in KEARI limited. KEARI limited should use different pricing strategy for different category of products. Pricing for luxurious and economical products should be reasonable making a suitable profit. Various price offerings for variety of products can make KEARI a desirable organization for prospective clients.
3. Place of KEARI limited:
Ø KEARI limited should expand their business in various cities like COX BAZAR, SHYLLET, COMILLA, FENI etc. KEARI should expand their business all over the famous places in Chittagong city.
4. Promotion of KEARI limited:
v KEARI limited should focus on visual ads like advertisement in TV, magazine frequently. KERAI limited should increase incentives for sales force.
Conclusion:
The World is changing in its infrastructure with the development of Real Estate Business. Real Estate Business has been successful in making the corporate image of developed countries like America, Australia, London and currently Dubai.
Real Estate Business is also growing in main cities of Bangladesh with rapid growth of population and Scarcity of land resources in the urban areas. The projects like Bashundhara City have brought this industry in international arena.
The KEARI Limited is one of the most reputed names in this business in the country and does its business operations from Office of KEARI Elysium in Chawkbazar. The business of KEARI Limited is increasing rapidly in the main business areas of Chittagong.
As I explored during my internship program on Marketing Mix of KEARI Limited, I came up with the conclusion that KEARI limited mainly offer their product to the upper class level and people working in abroad and they mainly target there upper class level people as their Client. KEARI limited pricing of the product is reasonable and they use their pricing strategy according to the place like Khulsi, Halishohor. The price is mainly affected by the demand of land owner, non refundable amount. The pricing strategy of KEARI limited is also affected by the governmental TAX. KEARI limited chooses those places which are most familiar to the public and their client. The promotional tools of KEARI limited are not much affective then the other competitors. However, KEARI limited is constantly facing high competitive trusts for the last few years. In such a competitive situation, KEARI is taking measures to better up in every area. If the company can apply and execute all mentioned recommendation of this report, it may be a successful achievement for the company to retain in the competitive market and raise their market share as well.
On the last and final account, I expect that Marketing and Sales department would be beneficial to study about the finding of report. The KEARI Limited has good prospects in the near future in the Real Estate business.
References & Bibliography
1) Bangladesh real estate directory.
2) REHAB directory.
3) KEARI prospectus, brochures, article and report.
4) Prospectus and brochures of HSBC, DBH and National housingPhilip kotler and Gary armstrong “ principle of Marketing” 11th , pages 11,16,17,18
5) Kotler, Philip and Armstrong , Gary, “Principles of Marketing”, Twelfth Edition, Prentice-Hall of India ,2009-2010, P:398-415
6) Kotler, Philip,“ Marketing Management”, Eleventh Edition, Prentice Hall, Upper Saddle River, New Jersey 07458, Pearson Education,2003,P:612-630
7) Brochures, Database & Annual Report of KEARI Limited
8) Real Estate and Housing Association of Bangladesh(REHAB) Directory
Websites:
