Wednesday, May 16, 2012

Brands as Real Estate Boosters

The shift towards branding in the real estate industry is helping developers log an increase in sales on the back of a relationship built on trust, transparency and timely delivery of projects.

Recently, Ackruti City Ltd., a real estate company with a 30-year track record of delivering real estate projects in Mumbai, changed its name to Hubtown Ltd. The name change was done as part of the company’s rebranding exercise and to better reflect its growing capabilities and delivery standards. In fact, recent years have seen a lot of builders and developers becoming very serious about creating a positive image about their company through brand building. A lot of this change has to do with the changing profile of property-buying consumers today who have evolved into more discernible buyers, especially in matters of big ticket purchases like automobiles and homes.

With consumers becoming smart and looking for differentiated products, it has become all the more important for real estate players to go in for effective branding and marketing. Engaging in marketing and brand building helps real estate firms to attract new business, retain old business and build up a good reputation. As such real estate players are resorting to various branding activities by way of advertising, PR, participation in property exhibitions in India and abroad and making their presence felt on social media network sites.

As building a brand is all about gaining the trust of prospective customers and the industry alike, the route to branding for a real estate developer has to start and end with ‘customer satisfaction’. “Conducting your business in a transparent manner, adhering to timely delivery, ensuring a smooth transition to a registered housing society, all this helps in earning the faith of the customer, which creates awareness in a positive manner about your brand, resulting in sales increase,” says Diipesh Bhagtani, Director, Jaycee Homes. As real estate is a capital asset and a lifetime investment for most home buyers, building a brand in the real estate space is different as compared to other businesses and depends upon a number of factors. The city where the project is located, the locality in the city, amenities provided by the project, timely delivery by developer and possession to the customer are some key factors that a developer needs to look into in order to build trust for his brand and his company. “A developer who manages to provide these to a customer is able to build trust among home buyers in that particular city that he has operations in, thereby enhancing his image not only among customers but among his peers as well,” says Bhagtani.

Agrees Navin Raheja, Chairman and Managing Director, Raheja Developers Ltd. “Yes, branding and promotion are extremely important. However, the biggest branding is your work.” If a developer delivers a project on time and as per the committed quality, his work alone serves as his biggest branding and helps attract a large referral business.

So does a good brand image influence the buyer to choose the right property over other competitors or is it just the project that matters? A good brand image can pull the buyer in, but unless the product is intrinsically good, a sale will not be consummated. Like in all other industries, the product (or project) is the focal point, and if it appeals to the consumer, sales will happen. But, yes, the branding can ensure that the consumer at least considers/evaluates the project. “While earlier most real estate developers were only content with advertising their projects, a new breed of developers, especially those that have a pan-India presence, have realised the importance of branding and are concentrating on brand building exercises,” says Kaustuv Roy, Executive Director, Cushman & Wakefield.

Branding has also emerged as an important selling tool in these days of depressed market conditions. Developers are adapting to the changing environment by re-strategizing innovative business & marketing plans, thereby increasing profit margins. Today, developers are tying up with internationally renowned architects for their projects, thus bringing to the table international technology along with quality construction, resulting in faster deliverable time. This results in more sales within a shorter period, increasing cash flows and reduced borrowing costs for developers. “We do find real estate developers having multiple strategies which can be a mix of tying up with globally acclaimed architects, celebrities, sponsorship of sports and similar such exercises,” says Roy. Not only that, industry experts firmly believe that there’s a strong correlation between branding and stock-market listing. While earlier very few developers were listed, today we have a handful of them trading on the bourses. “Indirectly, branding may be leading to greater transparency in the real estate industry since we expect at some point of time in the future all the large developers to be listed,” adds Roy.

According to Niranjan Hiranandani, Managing Director, Hiranandani Constructions, “Branded real estate products should be able to live up to the expectations of end-buyers in terms of offering a world class qualitative product.” Industry experts point out that though the expectations from branded real estate firms are higher, most of them are able to command a premium owing to their superior quality of products. Customers don’t mind paying a premium for a good brand. “We, at Jaycee Homes, charge 10% higher than other developers for the premium quality we deliver,” says Bhagtani.

Developers are also branding themselves according to their core specializations. For instance, a developer promotes itself as a company which creates a lot of green spaces; some other developer promotes his company for building low-cost housing. This way, a lot of developers have taken to branding on the virtue of what the company specializes in.

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Source : IIPM Editorial, 2012

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Wednesday, April 18, 2012

DECODING THE WORLD’S HOTTEST CONSUMER MARKET

The last year was a tough one for consumer marketers in India. The party spoilers were spiralling inflation, rising input costs and reluctant buyers plagued with twin uncertainties from having less money in their pockets and weak market sentiments. This year, though, promises to be different with various global consumer surveys indicating that the Indian consumer remains one of the most confident across the world as far as his/her future personal finances are concerned. Many of these surveys also point out that the Indian consumer intends to increase spending activities across consumer categories this year. But what is the average Indian consumer thinking? Will he buy more? why will he buy and from whom will he buy? 4Ps B&M and ICMR team up to crack the life and buying style of the urban Indian consumer in 2012 and beyond.

Henry Ford had once remarked, “If I asked my customers what they want, they simply would have said ‘a faster horse’”. He meant to say that consumers simply do not know what they want.

But that was almost a century ago. Consumers, markets and marketers have acquired a different life since then. Geographic boundaries have blurred and information is now available on a click. Like the global consumer, the Indian consumer has not only become king over the two decades since liberalisation, but has gotten very vocal about it too. Ask him to describe his needs today and he will wax eloquent for hours about what he likes, what he doesn’t like, what makes him happy and what doesn’t, what he is wishing for and even what he feels he should have wished for. So now when consumers talk, marketers listen. And listen very carefully at that.

It is this listening to the voices of consumers that has given marketers bestseller ideas for the Indian market – be it fairness creams for men, dust-free keypads for mobile phones, vegetarian pizzas, agricultural tips on SMS or the ‘cash on delivery’ model devised by e-commerce websites to address the traditional Indian paranoia over virtual buying.

Today, more marketers – both Indian and global – want a generous pie of India’s domestic consumption base of $827.9 billion, which translated into 49% of the nation’s total GDP of $1.7 trillion at the end of 2011 (even ahead in percentage terms of China’s 32% consumption share out of a total GDP of $6,476.2 billion). India is a top priority market in the future plans of almost every global company. But getting to know the heterogeneous and diverse Indian consumer is no mean feat, especially in a dynamic socio-economic environment, where what was a novelty until yesterday is quickly consigned to the dustbins of history the next day.

The annual 4Ps B&M and ICMR Consumer Compendium is our effort towards understanding the Indian consumer’s mindset, figuring out his buying motives and also getting a handle on what he is contemplating next and why. Our cover lead over the next few pages attempts to collate and communicate the big takeaways on consumer attitudes and behaviour from our survey spanning key product categories including consumer durables, electronics, automobiles, banking & finance, and online buying. Our series this year attempts to unravel the intricate mysteries of the urban, educated consumer’s mind and mindsets.

For now, as marketers get ready to launch their marketing blitzkriegs into 2012, we urge them to keep the results of the 4Ps B&M and ICMR Annual Consumer Compendium handy. Who knows, which consumer insight may help conjure up that path-breaking strategy that will help you get closer to your individual marketing goals.

They love comparing apples to apples

Here’s a nugget for marketers of consumer electronics like laptops, tablets and camcorders – the front-end experience at the store plays a vital role in your brand’s popularity. Nearly three-fourth of our survey’s respondents said that the front-end experience at showrooms was very important as they prefer that the staff answers their queries regarding tech-purchases properly.

A majority (almost 59%) also said that they prefer buying electronic items from multi-brand outlets and other channels rather than eponymous brand stores, as it gives them the option to compare available brands and prices under the same roof. Subrata Dutta, MD, Samsonite India, is not a technology buff and is therefore more comfortable buying from a multi-brand outlet. “I prefer buying from the multi-brand outlets as I can compare and get to touch and feel the other options available at the same price points. In many situations, the salesmen at the counter and the info they give play a role in what I eventually buy,” he told 4Ps B&M. Guess it’s time to dish out more resources towards educating the ubiquitous store salesmen then.

Here’s another interesting takeaway for electronics marketers. Consumers really do not care whether you have a swashbuckling Sachin Tendulkar or a pouting Kareena Kapoor endorsing your technology-savvy products. A majority of respondents surveyed (52%) said that they buy electronics items because they have a need and they choose particular brands because of ‘features’ that the product boasts of.

As opposed to the multi-million dollar marketing budgets of consumer electronics companies, only about 11% of respondents said that advertisements played any influence over their purchase decisions. Instead, about 27% respondents said that they relied on the Internet when it comes to gaining credible information about electronics that they intend to purchase. For another 15% respondents, friends were a vital source of information on electronic purchases.

The writing on the wall is clear. Instead of pushing a bulk of your marketing spends on buying TV spots and getting celebs on board, there is a need to expand the digital presence of your brand to keep alive the ever-wandering consumer interest in your brand.

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Source : IIPM Editorial, 2012
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Tuesday, March 27, 2012

Foreword for Indian Power Brands

The world’s largest democracy continues its GDP growth at about 8 per cent. A robust growth trajectory has made 1.2 billion people boast of a stable annual growth rate, rising foreign exchange reserves and booming capital markets. The growth story seems to be on a roll indeed, and Indian PowerBrands depicts the extraordinary journey in its one-of-a-kind initiative exemplifying the most powerful brands in India run by the most influential icons to take on and beat their competitors. The ideology further augments the brands’ identity, stability, sustainability as well its credibility. The abundance of the number of domestic companies and rising multinational corporations with a truck-load of brands for consumers to choose from has enhanced the quality of the business environment in India, it has constantly changed nonetheless keeping up with the times in recent years. The strong fundamentals underlying the Indian brand-value make it an obvious choice for investors all over the world, we are the world’s second largest market after all, so why not? There is ample reason for India’s viability as a destination for foreign investment as we live in the times of numerous overseas powerhouses still entering our economic borders. The brand-o-nomics highlight the above, we are talking about higher disposable incomes, an emerging middle-class, a low cost competitive workforce, investment friendly policies and a progressive reform process, and all contribute towards India being the appropriate choice for investors. Indian PowerBrands is a holistic effort to spell out the strength of India Inc. and define the Indian global superpowers of the future.

Overseas investors are still looking at our nation as an attractive investment destination owing to the prospects of high returns. A number of multinational corporations and overseas companies from all over the world have established businesses in India and have expanded over the years. We have witnessed a number of success stories - both Indian and multinational firms have registered higher profits, increased turnover and higher sales over the years. This has induced them to reinvest profits and inject fresh capital into their processes in order to reap the benefits of the Indian growth phenomenon. Investments have been made by corporations across the board and all the sectors have seen inflow of funds. Global players such as Ford, LG Electronics, Samsung, Sony, Amway, Tupperware, PepsiCo, McDonald’s, Oracle, Vodafone, and Nokia among others have benefited from their operations in India and have made expansion plans for the country. The companies plan to expand by way of product diversification, setting up a manufacturing base in India, increasing the existing production capacity, establishing research centres amongst other methods. A brand is always at the center of a company’s interest, managing a brand is not just a matter of putting theories into practice, but an art with a cutting-edge marketability, the paramount importance to the success of the company. This extensive research driven project delivers an array of brand value, brand perception, and brand resonance.

In India, the balance of trade – exports to imports – is higher than what the nation has recorded in recent years, which is only made possible by the marketability of these powerful brands. This phenomenal fact comes from the Government’s viable norm of encouraging the set-up of manufacturing plants and R&D centres along with a sales-wing, formulating an attractive special economic zone (SEZ) platform. Today India officially exports BMW vehicles and parts, Hewlett Packard notebooks, Nokia handsets, Sony electronics to name a few, which is merely a handful of what the list actually comprises of.

Our nation’s brand-economy has strong fundamentals and is host to several eminent global corporate giants that are leaders in their respective fields. The nation has grown to become a trillion dollar plus economy with a largely self-sufficient agricultural sector, a diversified industrial base, and a stable financial and services sector. India looks to the future with confidence of meeting the domestic and international challenges to fast and inclusive growth. Even during the global recession, our nation remained among the top 3 investment destinations. Few nations have the growth potential that India already enjoys, inevitably becoming a land of opportunities. The track record of these Indian companies on the global arena has further strengthened that confidence. I would like to congratulate Marcom on the initiative that they have taken to showcase these Indian companies that have scripted the Indian success story to the world!

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Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
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IIPM Contact Info
IIPM History
IIPM Think Tank
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Thursday, February 16, 2012

This one isn’t for Adrenaline Addicts. This is seriously social.

In a country where even the most basic of awareness on health-related matters is extremely low, campaigns like saathi bachpan ke are important

I remember my mother’s prayers and they have always followed me. They have clung to me all my life ~ Abraham Lincoln

It is easy to understand why TV viewers don’t usually rate an ad that promotes any social cause under the Sun a “5-on-5”. Non-exciting frames, pre-imagined set locations, conclusions which are no different that what can be forecasted by a toddler et al, suck the excitement out of every TVC that comes with a message to make society cleaner and healthier. True. But it is the bundle of emotions that make these ads worth the efforts. And many-a-time, winners. The effort this time comes from the national alliance christened ‘Saathi Bachpan Ke’ (‘Friends of Childhood’ in Hindi; the outfit shares its name with the title of the ad-campaign and was formally launched on March 22, 2010 – World Water Day – by Timothy J. Roemer, the US Ambassador to India), established by the US AID/India-funded Market-Based Partnerships for Health (MBPH) Project, that has diverse partners from both the public and private spheres (including NGOs, research and media agencies and other public health organisations) working to help improve child health by reducing incidences of diarrhoeal diseases in children under five by promoting simple and effective practices of washing hands with soap, consumption of clean drinking water and oral rehydration salts (ORS) therapy. Says Ajay Sharma, Director, McCann Momentum (one of the agencies which is helping to promote the campaign in India) to 4Ps B&M, “Saathi Bachpan Ke is a diarrhoea management programme, focused on children below the age of five and caregivers.”

The importance of the social TVC to the Indian masses cannot be denied. According to the ‘Safe Water, Better Health’ report by WHO (2008), India is the country where maximum count of deaths by diarrhoeal diseases is recorded (close to 400,000 deaths per year – 26.67% of the global count – of which 90% occur amongst those below the age of five). Surprisingly, a majority of these deaths are easily preventable through proper precaution and cure, one of which (ORS therapy) is promoted by the TVC.

The creative idea used in the making of the ad is based on the simple concept of a mother never giving up when it comes to taking care of her child. The TVC – created by Thompson Social-JWT – is indirectly also a tribute to the untiring spirit of a mother. The ad conveys a message that saving a child’s life through the ORS therapy demands just the patience that mothers display when they watch their child grow up – from teaching them to walk and talk, to waking up at midnight to attend to them and running behind them et al. “Thoda thoda ORS, baar baar” is the message of this ad. The background music – which is a typical melodious lullaby – runs throughout the 40 second-long duration of the TVC, strengthening the emotional appeal of the ad. “The film is based on the insight that caregivers are not persistent in giving ORS repeatedly to a child suffering from diarrhoea since the child often refuses to take the solution. It urges the mother to be as consistent in ORS usage,” explains Kavita Ayyagari, Programme Director of the Saathi Bachpan Ke alliance.

Shot at Madh Island, Mumbai and directed by Pushpendra Misra of JWT, the TVC was released on November 5, 2011. Television is indeed one of the best mediums to communicate with population clusters that are branded either rural or the uneducated class. For India, where education and awareness on health-related issues is a big concern, such efforts must be applauded. Our verdict: in this world of profit-making, such TVCs with relevant social messages are as unique as they are perhaps non-exciting. They appear easy-to-make, but are far more difficult than going on a vacation.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India
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