Professional Documents
Culture Documents
Prepared by: Leena Jadhav (115) Trishna Malik (82) Arati Padwal (90) Brindal Kothari (79)
Table of Contents
Introduction: ................................................................................................................................................. 3 About Hallmark Infrastructures ........................................................................................................... 3 The Management Team......................................................................................................................... 4 Hallmark, as a Group .............................................................................................................................. 4 Vision............................................................................................................................................................. 4 Mission.......................................................................................................................................................... 5 Hallmarks Specialty ............................................................................................................................... 5 Projects......................................................................................................................................................... 5 Real Estate Industry at Chennai - Overview ................................................................................... 6 Growth Stimulators:................................................................................................................................ 7 SWOT Analysis of Hallmark - Zaviera ................................................................................................ 9 PESTEL Analysis for Zaviera ............................................................................................................... 10 Seven Ps of Marketing for Zaviera ................................................................................................... 12 Segmentation, Targeting and Positioning - Zaviera ................................................................. 16 Financial Analysis of Zaviera .............................................................................................................. 17 Cost Structure of Zaviera ................................................................................................................... 19 Marketing and Advertisement Cost ............................................................................................... 20 Conclusion ................................................................................................................................................... 22
Introduction:
Zaviera, an exclusive lifestyle apartments by Hallmark Infrastructures situated in Chennai. "Zaviera" is an unique project as it is surrounded by some of the top Companies near Mahindra World City including Infosys, Mindtree, Mastek, Wipro, BMW, TVS, Ascendas, Ford, Nissan, Renault, Ucal, Elforge, Appollo Tyres, Iprings, Audco, Visteon Valeo, Triumph and the list goes on. "Zaviera" is the only project of this nature in the vicinity where people can walk to their work. Spread in 1.74 acres near the Mahindra World City. At Zaviera, each and every apartment is designed to accommodate luxurious living with comfortable space. Care has been taken to avoid the common wall between apartments, thus, making a life style apartment exclusive in its own way. The focus has been on providing a conductive neighborhood ambience accentuated with clean landscapes along the extent of the site. The recreational zones have been created along the periphery while the Club House formed the core of the master plan. The apartments have been designed to exude a feeling of spaciousness while maintaining cross ventilation patterns. The blocks were left uncluttered with each core opening out only into four apartments. The buildings were specifically made mid rise (four floors only) to create a more definite sense of privacy and exclusivity.
beyond the expectations of the customers. They have successfully completed several prestigious projects situated in the prime locations of Chennai city.
The Management Team Mr. Anand Jain Managing Director Mr. H. Suresh Kumar Director Mr. Kamal Jain Director Mr. R. Vishwanathan Group Advisor and CFO Mr. K. Ramakrishnan Chief Executive Officer
Hallmark, as a Group Hallmark Energy The world around us would come to a halt if there wasn't enough power. Despite the fact that demand has always exceeded the supply, the market is adding more and more power-hungry machines and gadgets. To meet this ever-growing demand, and to tap into one of the core infrastructure segments, Hallmark has decided to get into energy generation. The company which has recently been incepted is studying the various options available including the alternative cleaner and greener renewable forms of energy.
Hallmark Capital If money makes the world go round, the management of money plays a vital role in its economic expansion and contraction. And effective management of money -whether it's finding the right source of money when there's a need or investing the hard-earned money wisely when there's surplus - calls for a certain expertise. And that's something Hallmark has decided to offer to everyone from individual customers to corporate houses.
Vision To attain excellence through unique, elegant and quality creations for customer satisfaction.
Mission To create 10 million sq.ft. by 2013 To create habitats that are intelligent, eco-friendly, convenient, elegant, practical and energy efficient To create infrastructure with green ratings in Tier 1 & Tier 2 cities
Upcoming: HALLMARK SOLITAIRE - IT SEZ HALLMARK MILLIONAIRES COUNTY - EXCLUSIVE VILLAS HALLMARK OBERON - SERVICE APARTMENTS HALLMARK GATED COMMUNITY - APARTMENTS HALLMARK ADALIA - SEMI DETACHED VILLAS & ROW HOUSES HALLMARK ZEPHYR - EXCLUSIVE APARTMENT HALLMARK RAJIV GANDHI INFO CITY HALLMARK SHOPPING MALL HALLMARK RESIDENTIAL TOWNSHIP HALLMARK WAREHOUSE
industrial corridors are expected to help these micro-markets witness a moderate appreciation of 5%-10% over a 12-month horizon. The commercial markets have remained fairly subdued along the peripheral areas of Chennai, with an estimated vacancy level of 20%-25% in the micro-markets of OMR and GST. Commercial spaces in SEZs continue to attract clients. There remains an inherent demand for smaller office spaces in the CBD and Off Central Business District regions. In the retail markets, the operating malls are performing well. Maximum leasing activity was witnessed along high streets, due to lack of quality supply. In the coming months, fresh supply of mall space is expected to become operational in Chennai. At South Chennai, Pallavaram, Chrompet and Tambaram continue to show homebuyer interest due to the attractiveness of the location and presence of operating office spaces at close proximity. Pallavaram and Chrompet are witnessing the redevelopment of old leather tanneries present in the region. Projects are in the price band of INR 3,500 psf-INR 4,500 psf depending on the location, builder and specification. We expect the markets to remain steady in the short-term. The region of Vandalur, Urupakkam and Guduvancherry is witnessing development of projects in the mid-budget and affordable segment. We expect a moderation in pricing and absorption levels in the coming quarters, due a slackening of end-user demand in this market. The Vandalur-Kelambakkam Road is witnessing the development of budgeted apartments and villas. The region also houses plotted developments for investment purposes. There has been a dip in absorption levels during the last two quarters and we expect the trend to continue in the coming months.
Growth Stimulators: IT/ITES corridor of OMR is developing into a self-sustaining hub with the presence of good schools, colleges, hospitals and organized retail. Further the infusion of mall space in the coming months, will lend greater push to real estate activity in the region. It has also been observed that IT companies are consolidating their operations from various parts of the city, into a single premise located along OMR. Such a development would help create a greater end-user segment for real estate activity in this belt.
The GST proves to be a vital connecting link between Chennai and the city of Trichy. The region is dotted with SEZs, IT Parks, educational institutions, premium hotels and also serves as a gateway to the industrial hubs of Oragadam and Sriperumbudur. The south of Chennai, primarily houses end-users employed in the IT/ITES and manufacturing segment. An improvement in the economic scenario would help drive growth in this region, backed by an inherent need to cater to the housing needs of the growing population.
Ability to meet operating objectives because of strong operating & financial results
Product by prominent property developers High level of evergreen demand Premium apartments Unrivalled execution facilities Locality near to Mahindra World City, GST road
project & resources (eg: raw materials) reduces efficiency Changing skills requirement and skill gap.
Full of amenities No common wall between neighbors. Threats & partnership with Global economy crisis has slow down sales. Insecurity & limitation of base funding. Innovation by competitors
surrounding Corporates Tie-ups with major Indian & International banks to offer financing packages. Property can be vetted & pre-approval by banks to simplify loan process.
Economic factors:
House loan interest rates. Per capita income has risen as compared to previous years. The global economic crisis. Inflation and currency exchange range.
Socio Factors:
People here are religious and believe in rituals and tradition. Keeping this in mind they have constructed VASTU complied homes. As many multi-national companies are situated nearby, people of various cultures may meet here. Hence the homes are designed in such a way that it would not hurt the sentiments of anyone. Rise in demand of quality & premium housing.
Technological:
As we know that temperature in Chennai is quiet hot Hallmark is planning to use exterior paints that helps in reducing the temperature. The electronic appliances Security checks & alarms used at Zaviera are of latest technology understanding the change in the demand.
Environment:
Solar system is used for hot water supply. The Zaviera is developed as the first green design apartments covering landscapes.
Legal:
Governments regulations and policies Heavy taxes imposed on this industry.
1. Product:
The product is Zaviera, a premium residential apartment with land area of 7340 sq.m. It is situated near Mahindra World City which has established companies like Infosys, Wipro, Shell, etc. The concept is that employees who stay at Zaviera can walk to office. Zaviera is covering 200 flats of three types as follows: Type A: 2 BHK with two Balconies - 970 sq.ft Type B: 1 BHK with Balcony and a study room 780 sq.ft Type C: 1 BHK with Balcony 640 sq.ft
The apartment is designed with ample of amenities like play area, yoga & meditation room, swimming pool, super market, salon, wardrobes, modular kitchen, etc.
2. Price:
The current pricing for apartments is Rs. 3250/Sq.ft. various other charges like Car parking, maintenance, club membership, registration & service tax, etc sums up the
final price of the apartments. The net total price is in the range of Rs. 2635782 to Rs. 4099719. If compared with the premium segment apartments at Chennai the pricing is quite nominal considering the basic & advance amenities provided by Zaviera.
3. Place: The location of Zaviera is very attractive, surrounded by companies like Wipro, TVS, Mindtree, Mahindra Research Valley, etc. Zaviera is just 3.5kms away from GST road. Mahindra World school, Crescent Engineering College are also quite near. Below map explains more detail insight of the location.
4. Promotion:
Few recommendations for Zaviera promotion activities are: Media Campaign: i. ii. iii. Hoardings at start of GST road on both sides of traffic by May13. Distribution of pamphlets along with local & English news dailies as it is cost effective. Print advertisements in local & national magazines like Chennai Realty magazine. iv. v. Participate in realty exhibitions Local television and radio advertisements
Other than media campaigns, other few marketing strategies which Zaviera can adopt are: i. ii. iii. iv. Distribution of brochure at corporate offices of Infosys, TVS, Shell, etc. Introduce referral schemes for existing customers Bulk & corporate discounts. Upload project treasures on websites: 99acres.com, magicbricks.com, etc.
5. Process: The process involves the management of the database of their existing customers. The speed and quality of the construction as early possession of flat is one concern of every customer these days. Also the process of loan can be improved by Hallmark Infrastructure. They can keep their flats vetted and pre-approved from the banks, so than the loan procedure is reduced.
6. People:
People the most important P in real estate sector. People could refer to the target consumers of real estate to be invested in, a developer who has the ability to develop a
real estate project as promised or a fund manager with the expertise and market savvy to deliver results. Hence identifying key consumers, partners and investment managers becomes very important. Also to target the minds of customers & fund managers Zaviera must be marketed with various promotional activities. Managing customer database will give a key to achieve results.
7. Physical Evidence: Physical evidence in real sector can be a sample flat which must be kept ready for customer visit. This flat can be well furnished with all amenities, coloring, etc. This is necessary to target customer minds by making them experience the homely feeling, tangible and intangible clues, etc. A virtual tour must also be uploaded on their website: www.hallmarkinfrastructure.co.in so that customers & investor from other cities can view it.
Hallmark Infrastructure Zaviera Infrastructure- Premium Apartments High Profile Individuals Masses wanting a lavish lifestyle High profile Corporates Convenience and style conscious group M.D, Executives, Head of Departments etc. i.e. individuals with high purchasing power mostly working in surrounding areas. Wanting to purchase from and investment point of view Upper middle class segment wanting to purchase to increase their standard of living Corporate tie ups for guest houses Corporate tie ups to utilize the lobby and surrounding pool area for official parties and functions
Targeting
Positioning
As discussed above there are three types of flats. The flat rate (excluding registration charges and Service Tax of 12.36%) is as follows:
As we didnt find the exact number of units they are selling in each of the types of flats we have taken an average all the three areas in each type of flat they are offering. Hence we are considering an average of all the three is 800 Sq. ft per flat. We have taken in to consideration that hallmark infrastructure is selling 200 flats of 800 per sq. ft . The construction cost in Mumbai is Rs. 1800 per sq,ft as of today as per the sources. The cost of living in Chennai is less as compared to Mumbai. Keeping this in mind when comparing with the prices in Chennai the latter will be less. Therefore we have taken the construction cost per Sq. ft to be Rs. 1100 per Sq. ft in Chennai.
Now as we had considered an average of whole area offered by Hallmark Zaviera while calculating the Square Feet of flat, while deciding on its cost too we have found the average i.e. For a 800 Sq. ft / flat Hallmark Infrastructure is charging Rs. 29,63,646 (3669340 + 2359282 + 2862316)/3 = Rs. 29,63,646 .
Hence as the cost price of per flat is Rs. 8,80,000 and they are selling at Rs. 29,63,646. We consider the amenities provided by the Zaviera, still there is a margin of approximate 225% to 250% for one flat.
Particulars
Land Acquisition Costs: Buying the actual land including all the taxes, stamp duty and other necessary permits. Hard Costs: Buying the raw materials (Cement, sand , iron bars, grills, wooden rods, bricks, etc ) and capital expenditures like machinery, equipments, (cement mixer trucks , etc) for constructing the building Soft Costs: Paying architects, designers, contractors, lawyers, legal fees, and engineers to design and construct the Building Office and Admin Expenses : Office, administration, sales office, site office, staff and managers cost Marketing Costs : (Details given below) Total cost for the builder for 1 block of 200 units
Rs. 6
Rs. 2.7
Rs. 0.7
Rs. 1.8
Rs. 17.60
Total Cost Price of Tower is 17,60,00,000. Percentage division of the total cost is as follows:
SR. NO. INPUTS 1. 2. 3. 4. 5. Land Acquisition Costs Hard Costs ( Raw materials ) Soft Costs (architect, contractor) Office and Admin Marketing and selling costs Total
The allocated marketing cost is Rs. 1.8 Crores. Before the marketing starts, tie-ups with reputed Indian & International banks is required. So this can be displayed on print hoardings & other contents. The break-up goes as follows: Print Media Advertisement Expenditure: 1. Brochures (similar to e-brochure) : Rs. 5 lakhs 2. Pamphlets 3. Advertisement in Newspapers : Rs. 2 lakhs : Rs. 2 lakhs
Distribute NEWPAPER SUPPLEMENTS along with newspapers for wider reach and cost effectiveness. Newspaper ads in one Tamil (DINAKARAN) & one English paper every 3 weeks for a month (Business line, New India Express)
4. Advertisement in Magazines
: Rs. 3 lakhs
: Rs. 15 lakhs
We can prepare website content and upload project details on Hallmark website by March13. Can also upload project teasers/ run marketing campaign on RE websites Prop Tiger, All check Deals, 99 acres, India Property, Magic Bricks from September 2013 to January 2014. 2. Targeted Marketing with Existing Customers : Rs. 10 lakhs
A team can be designed to collect the data & calling to existing customers. We can provide special discount schemes for existing customers, referrals or bulk bookings. Send them the brochures by post. Invite them for visit and collect the feedback.
3. Stalls at existing projects of Hallmark 4. Stalls at Corporate offices 5. Corporate tie-ups (from Mar13 Nov13)
Dedicated stalls at corporate office and special corporate discounts to be offered for bookings. Tie-ups with different companies within Mahindra World city like Infosys, BMW.
: Rs. 50 lakhs
Television commercial in SUN TV, Zee Tamil, Radios in Suryan FM 93.5 MHz, etc for continuous 2 months.
: Rs. 10 lakh
Participate from March 2014 in property exhibitions like Fair Pro, Hindu.
This flat must be well furnished with all the specified amenities within the flat. Same flooring & coloring must be done. This is required to give the customer homely feeling when he comes for an enquiry.
9. Other Initiatives
: Rs. 8 lakhs
This can include other expenditures like Bulk messaging, emailers, research, data collection, etc.
Conclusion
Real Estate sector has been the biggest contributor to Indian Gross Domestic Product. It is also the fourth largest sector in terms of foreign direct investment (FDI) inflows in the country. The two main reasons responsible for boom in the real estate industry in India include liberalization of Government policies, which has decreased the need for permissions and licenses before taking up mega construction projects and the expanding industrial sector. As per McKinsey Global Institute, India still needs to invest US$ 1.2 trillion over next 20 years to modernise urban infrastructure and keep pace with the growing urbanization, Real Estate marketing is lot of dependent on the situation of the economy. If the economy is slowing down people tend to postpone their house purchase. A lot of things are dependent on the interest rates as well. Interest rate going up demotivates the buyer from purchasing the house. The marketing here is totally different as compared to consumer durables marketing. Consumer durables are basically the wants of individual and house is a need of an individual. Consumer durable being a want can be replaced within a year or two but due to raising prices & global economic conditions for a middle class segment the basic necessity is difficult to replace. Hence, the marketing of real estate must be much more practical and personal.