By: Jackbastian K. Nazareth, Group CEO, Puravankara Projects
Track2Realty Exclusive: The current environment necessitates greater discipline in marketing, steered by a well-conceived strategy. Absorption levels in many cities, both in the residential and commercial segments would indicate that developers are carrying surplus inventory on their balance-sheets.
While this trend is attributed to a lopsided demand-supply scenario, ad hoc marketing may have exacerbated it. Indeed, bridging the gap between demand and supply is a marketing deliverable.
For many developers, marketing begins at project launch. There is limited investment in consumer, competitor and market research during the pre-launch phase. Application of market intelligence in product development, pricing, positioning and promotion strategy formulation could mitigate sales-related trepidations, during launch and beyond.
Furthermore, few developers have embraced the notion of brand-building. Consequently, the market is inundated with a barrage of largely undifferentiated products that often confound customers. A commitment to brand-building and shoring up the customer experience would stand developers in good stead, through economic downturns.
The brand-building path should take cognizance of the constraints of the real-estate industry: historically, the category has been mired with perception issues predominantly because of project delays, on account of factors beyond the developer’s control, such as approval and clearance bottle-necks.
Therefore, it is imperative that the brand-promise be mapped to the delivery experience. Simply put, the brand must deliver what it promises and promise only what it can deliver.
While project delays are beyond the developer’s control, managing the customer experience is within the developer’s purview. Customer communication through delays and downturns is crucial in cementing a longer-term relationship.
By implication, a robust customer -relationship management (CRM) program should be dovetailed with marketing activity. CRM is especially important during market downturns, because the developer is ever more reliant on customer referrals for new business.
Partnering with the broker community is another tried-and-tested marketing strategy. Leveraging broker networks and channel partners, rather than relying solely on the in-house sales team, allows builders to widen their marketing reach. This strategy has the added advantage of affording savings in advertising costs.
Many developers have chosen to hive-off units to corporate entities at bulk rates, in a ‘pile-it-high and sell-it-cheap’ approach. Priced approximately 25-30 per cent below market rates, this proposition is attractive to corporations.
…to be continued
