Business development through Lead generation and Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition

Transcription

1 Project on Business development through Lead generation and Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY Shagun Pandey Marketing (B-16) Batch Under the Guidance of Project Guide Dr. Swati Nalawade Project Mentor Mrs. Pallavi Upadhyay Area Manager Cushman & Wakefield SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES (SIMS) (CONSTITUENT OF SYMBIOSIS IINTERNATIONAL UNIVERSITY) July

2 EXECUTIVE SUMMARY The Summer Internship Project was related to Business development through Lead generation and Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition. The project was done for the residential vertical of Cushman &Wakefield. The internship included all aspects of knowing the real estate sector. It included Lead generation, project marketing, niche market survey and corporate disposition. Few important aspects of these activities are as follows Generating leads by cold calling on various database for C&W Preparing option list for the requirements of the leads Follow up on leads and arranging site visits in order to convert the leads Project marketing of Courtyard 77- a mandated project with Goyal Properties Conducting a niche market survey of ongoing and under construction projects in Pune Understanding corporate disposition Cold calling and arranging meetings with companies that have expats and require rental solutions of senior management. My role as an intern was of Business development through Lead generation and Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition and I was reporting to Mrs. Pallavi Upadhyay, Area Manager at Cushman & Wakefield. The scope of the project was to generate maximum leads in the residential transactions for C&W - investments/secondary market sales and to schedule maximum meetings for pitching residential rental requirements of expats. It includes marketing and pitching in for our mandated projects and understanding the process of corporate disposition. 2

3 DECLARATION I hereby declare that the project entitled Business development through Lead generation and Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition submitted for the degree of Masters in Business Administration is my original work and the project has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles. Name of the student: Shagun Pandey Signature of the Student: Place: Pune Date:

4 CERTIFICATE This is to certify that Ms. Shagun Pandey, PRN No has completed her project report on the topic Business development through Lead generation, Niche Market Survey for Cushman & Wakefield and understanding Corporate Disposition under my guidance. Name of the Faculty: Dr Swati Nalawade (Signature) Date: 4

5 COMPANY EXPERIENCE CERTIFICATE 5

6 ACKNOWLEDGEMENTS I take this opportunity to acknowledge the support and cooperation of all the people whose help was of immense importance in making this project a success. I would like to express my gratitude towards my project guide, Mrs Pallavi Upadhyay (Area manager- Residential, C&W) who encouraged and supported me throughout this study. I would like to thank Mr Deepanshu Goil (Senior Account Manager, C &W) and Mr Amit Parekh (Senior Account Manager, C &W) for all their valuable inputs and support in carrying out the project. I would like to express my special thanks to my internal guide Dr Swati Nalawade, Professor, Symbiosis Institute of Management Studies, for her able guidance and useful suggestions, which helped me in completing my project work. Lastly, I would like to thank the entire residential team of C&W for their kind cooperation in carrying out the project work. 6

7 TABLE OF CONTENTS S. No. Topic Page Number 1 Introduction 8 2 Company Profile 10 3 Objectives 11 4 Lead generation 12 5 My Contribution 14 6 Niche market survey 18 7 Project Marketing Mandates 20 8 Corporate Disposition 21 9 Recommendations Conclusion Bibliography Annexure Turnitin report 30 7

8 LIST OF FIGURES Fig. No. Figure Name Page Number 1.1 Lead Generation Techniques Property Portals database HNI Clients database Other database 16 LIST OF TABLES Table. No Table Name Page Number 1.1 Property Portals database HNI Clients database Other database Particulars of bungalows 20 8

9 INTRODUCTION Cushman & Wakefield was founded in New York, N.Y., on October 31, 1917, by brothers-inlaw J. Clydesdale Cushman and Bernard Wakefield. Expanding first throughout the United States and then globally, today Cushman & Wakefield has 253 offices in 60 countries with nearly 15,000 talented professionals who deliver quality services to its diversified global client base. C&W is in top ten leading international property consultancy firms in the world. It specializes in providing global real estate solutions. Residential real estate in India Residential real estate is the central point of Indian real estate market, irrespective of the market conditions. This is hardly surprising seeing the massive demand for homes in the country. The greatest requirement for residential properties shoots from the middle-income group hence; the demand does not equal absorption. There is a high dependence on home loans by the salaried class which underscores the price sensitivity factor. The year 2013 was not a very good year for Indian residential real estate market. The slowness was most evident in the prime cities. Thanks to resurgence in employment-driven market sentiments and the arrival of a number of right-priced residential projects, Pune proved to be a notable exception. There was a healthy demand for mid-priced residential properties throughout 2013 and on into the first quarter of 2014 in Pune market. The reasons for the generalized slowdown are- RBI s hike in interest rates inflation which led to decreased purchasing power and financial confidence. This clearly led to a sheer rise in the EMIs that home loan borrowers had to tolerate. Even property prices were quite high in most cities, mainly because developers were hit hard by the increased costs of construction and debt. Due to the rising input costs and compromised sales, residential real estate developers were prevailed upon to cut back on project launches. However some developers did come up with projects mostly in the mid-income and budget homes segments. Luxury housing took a severe disappointment and movement of super-luxury properties and premium projects in the metros slowed down significantly. Only affordable to mid-range homes continued to sell - often on the basis of unofficial, project-specific discounts. Even in such a sluggish market residential developers pinned their hopes on the Diwali festival season, which usually brings with it a 25-30% rise in home purchases a month or so before it actually arrives. In expectation of the coming demand, they kept their stated prices steady; instead of hard discounts, many smaller developers offered freebies and add-on incentives. There were marginal increases seen in some centrally located projects. The 'freebie' strategy failed markedly, with home purchases increasing by no more than 10-12%. However the sales that did take place were on the basis of discounts argued on the negotiation table. In the first quarter of 2014, sentiments on the Pan-India residential property market will remain careful, but cities which offer better affordability and returns on investment will pick up. Certain suburban pockets in Pune are seeing real-time infrastructure enhancements which will lead to price rises. 9

10 Also, because of the high demand for ready-to-move-in residential properties in all major cities, there will be price increases to be seen in projects that are being delivered or are close to completion. The mid-end and affordable housing segments will record healthy appreciation in capital values in the short term from a low base. The provisions made for this segment in the recent interim budget to help the affordable housing sector have paved the way for increased activity in

11 COMPANY PROFILE Services that Cushman & Wakefield caters to are Agency, Capital markets, Consulting, Corporate Occupier and Investor Services, Hospitality and Valuation and Advisory The Residential services team functions under the agency service of C&W. This team helps individuals and company to develop strategies for their residential requirements by offering services like, relocation, marketing, portfolio management, corporate leasing acquisition and investment advisory. The team is located in all the major cities in India. The main aim of the team is to meet the needs of its clients in the following ways: Relocation services It s a special service basically for corporate representative who wants to relocate in India or to India from abroad Corporate leasing The team arranges site visits, selection, negotiation and documentation of the residential properties. It helps the clients with the best location of property in a cost that suits and satisfies the clients. Project marketing The team helps developers to create and implement effective marketing strategies for lease and sale of properties. Corporate assets disposition The team helps in leasing services and disposition of properties to its clients. Purchase & Investment The team helps corporate and individuals to purchase properties for investment purposes and end-user needs 11

12 OBJECTIVES Primary Objective: To generate leads for residential transactions To conduct a niche market survey Secondary Objective: Follow up on leads To understand and work on project mandates To understand the process of corporate disposition 12

13 1. LEAD GENERATION Leads can be generated in different ways. In the real estate sector, general leads in the residential space come through: 1) Property portals: Different online sites like magic bricks, Sulekha etc. advertise our properties online and share the details of the clients who have clicked on our properties. 2) Cold calling: This basically is the process by which a person calls up on the existing database of clients asking them their requirements. 3) Cross selling: This is the procedure under which the residential vertical of the company gets enquiries from other verticals like retail, land, office agencies etc. 4) References: Under this our client refers another client. 5) Marketing activities and advertisements: This is the procedure under which we get enquiries by the ads posted in the newspapers and the hoardings put across the city. 6) Company portal: Under this we get enquiries straight from the company website. Lead generation Techniques property portals cross selling marketing activities cold calling references company portal 1% 2% 5% 10% 17% 65% Figure

14 Findings: Maximum enquiries (about 65%) are generated through property portals as people who generally visit these sites are looking for properties hence it is a good sample. C&W buys space on property portals like Magic bricks and Sulekha and advertises its property. Post this there is a follow up on people who clicked on the advertisement. The next effective technique is through cold calling on various databases available with the company. About 17% of the enquiries are generated by this. Marketing activities like advertisements in the local newspapers like Sakal, Times of India, Economics Times (Mumbai) also generate certain enquiries. The rest of the techniques generate fewer enquiries from 1% to 5%. 14

15 MY CONTRIBUTION Cold calling and leads generated There were three sets of database that had to be called. The number of calls and leads generated are as follows: 1) Property portals database: C&W buys space on the various property sites like Sulekha and Magic bricks. Whoever clicks on our ads is recorded as a database for us to follow up. We get the details of the clients. We then call them up and ask them for their specific requirements. Calls made 350 Leads generated 45 Table Property Portals 45 Calls made Leads generated Figure 2.1 Analysis: the number of people called was 350 and leads generated were 45. About 12.8% of people called had residential requirements in Pune market. 15

16 2) High Net Income Clients database: C&W has a database of high net income clients. We call them up and ask them for their requirements and then follow up. Also we try to pitch in for our mandated project called courtyard 77 in Kalyani Nagar. Calls made 480 Leads generated 52 Table 1.2 HNI clients Calls made Leads generated Figure 2.2 Analysis: the number of people called was 480 and leads generated were 52. Approximately 11% of people called had residential requirements in Pune market. 16

17 3) Other database: C&W has other database to call and follow up. This includes Poona Club members. We get the details of the clients. We then call them up and ask them for their specific requirements. Calls made 1500 Leads generated 48 Table Other database 48 Calls made Leads generated Figure 2.3 Analysis: the number of people called was 1500 and leads generated were 48. Approximately 0.03% of people called had residential requirements in Pune market. 17

18 Important Observations Lead generation by cold calling is a hit and trial method. HNI client and Poona Club Database called upon were random samples. Hence the lead generation is low in comparison to property portals database. The property portal database generated maximum leads. The follow up on the leads is done by preparing an options list for the client. Post which the list is mailed to the clients. After the mailing the clients are enquired about their interest in site visits for any property in the list The clients are then taken for site visits If the client is interested in purchasing any property the lead is finally converted. It takes time for the entire process to happen as buying property is not a hasty decision; people actually want to see all the options and then decide on the final one. 18

19 2. NICHE MARKET SURVEY 1. Marvel Basilo DEVELOPER: MARVEL LOCATION: KP LANE 5 CONFIGURATION:3/3.5/4.5 BHK TOTAL AREA: 1945/2245/3855 PRICE/sqft: UNITS: Marvel Aurum DEVELOPER: MARVEL LOCATION: KP LANE 7 CONFIGURATION: 4.5 BHK TOTAL AREA: 4930 PRICE/sqft: UNITS: Marvel Crest DEVELOPER: MARVEL LOCATION: KP LANE 7 CONFIGURATION: 3.5 BHK TOTAL AREA: 2960 PRICE/sqft: UNITS: Vascon Windermere DEVELOPER: VASCON LOCATION: NORTH MAIN ROAD, KP CONFIGURATION: 3/4/5 BHK TOTAL AREA: 3000/3800/8300 PRICE/sqft: 1700 UNITS: Aria DEVELOPER: AJMERA LOCATION: NORTH MAIN ROAD, KP CONFIGURATION: 5 BHK TOTAL AREA: 5800 PRICE/sqft: UNITS: Courtyard 77 DEVELOPER: GOYAL PROPERTIES LOCATION: KALYANI NAGAR CONFIGURATION: 3/4 BHK TOTAL AREA:

20 PRICE/sqft: UNITS: Verde DEVELOPER: ABIL LOCATION: JOGGERS PARK, KALYANI NAGAR CONFIGURATION: 3/4 BHK TOTAL AREA: 2925/3890 PRICE/sqft: UNITS: Castle Royale DEVELOPER: ABIL LOCATION: KHADKI CONFIGURATION: 3/4/5/7 BHK TOTAL AREA: PRICE/sqft: UNITS: Amar Renaissance DEVELOPER: AMAR BUILDERS LOCATION: SOPAN BAUGH CONFIGURATION: 4 BHK TOTAL AREA: PRICE/sqft: UNITS: Trump Towers DEVELOPER: PANCHSHIL LOCATION: JOGGERS PARK, KALYANI NAGAR CONFIGURATION: 5 BHK TOTAL AREA: 6100 PRICE/sqft: UNITS: One North DEVELOPER: PANCHSHIL LOCATION: HADAPSAR CONFIGURATION: 3/ 4 BHK TOTAL AREA: PRICE/sqft: UNITS: Yoo Pune DEVELOPER: PANCHSHIL LOCATION: HADAPSAR CONFIGURATION: 3 / 4 BHK TOTAL AREA: PRICE/sqft: UNITS:

21 3. PROJECT MARKETING MANDATES A project marketing mandate is a legal agreement between the builder and the company that for a stipulated period of time the sales process will happen either through the builder or through the company directly. During this period other brokers cannot approach the builder directly for sale; hence we are safeguarded against other real estate firms. Any sale or booking during this period either through the builder or the company will get a commission of 2% to the company. After the stipulated period of timeous over, at the discretion of the builder, the mandate can be renewed. Cushman & Wakefield has a mandate with Goyal Builders for their project called Courtyard 77. This project is located in one of the posh areas in Pune called Kalyani Nagar. The mandate is for a time period of 6 months. This project consists of thirteen sky villas in a duplex format. There are two different configurations of 3.5 BHK and 4.5 BHK with an area of 3330 sq ft and 5090 sq ft respectively. The project is priced at Rs. 13,500/ sq ft. Each house has two car parking allotted. On alternate floors some recreational amenities are provided. This project is under pre-launch phase and is open for bookings of our clients. C&W helped Goyal builders with marketing of their project in the following ways: All the mailers, pamphlets, brochures and hoardings were proof read by the team We did a mailer activity on our entire database for the project. We hand delivered the project brochures to our HNI clients and then did a follow up call if they had received it and were interested in the project. We took people interested on site visits We gave a presentation of the project to the clients We mailed the project details to other brokers in the city C&W team in Mumbai is also helping us with lead generation We do a follow up call on every lead generated 21

22 4. CORPORATE DISPOSITION FOR TATA MOTORS Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. Tata Motors owns four bungalows in Sindh Society, Pune. Sindh Co-op Housing Society is home to some of the city s most respected names including senior corporate executives, industrialists and social luminaries. The area is characterized by distinguished bungalows that provide for unabated stream of natural light, cross ventilation and lovely gardens and parks. Tata Motors approached Cushman & Wakefield to help in the disposition of the same by a closed bidding procedure. THE SALES PROCESS: Advertisement Release in Times of India on 27 May, 2014, Economic Times on 22 May, 2014 & in Sakal on 20 May, Particulars of Bungalows: Plot No Plot Area(sqft) Build up Area(sqft) Lane Number 305 9,512 2, ,021 2, ,559 3, ,321 2,560 3 Table 2.1 Inspection of the property on scheduled dates from 23 May, 2014 to 25 May, 2014 during open house timings. Cushman & Wakefield ( C&WI ) then hands over information brochure and records inspections carried out by prospective bidders. Prospective bidders to submit Sealed Offers" to TATA Motors Ltd. along with Rs. 5,00,000/- (Rupees Five Lacs Only) as Interest Free Token Earnest Money Deposit ( TEMD ) in favor of TATA Motors Ltd. vide DD / Pay order only, by last date for offer submission as communicated by C&WI. 22

23 TATA Motors Ltd. opened bids on 10 June, 2014 and prepared a short list of the bidders internally. Bidders are not eligible to participate in this process. The information pertaining to sealed offers will not be shared with any of the bidders as this is sensitive and confidential information. TEMD of those bidders, who have not been short listed, will be returned without interest within a period of 30 working days from the last date for offer submission which has been communicated by C&WI. TATA Motors Ltd. reserves right to negotiate with short listed bidders as and when required. TATA Motors Ltd. may invite short listed bidders to submit revised sealed offers to TATA Motors Ltd. Based on revised offers one or more bidders may get shortlisted by TATA Motors Ltd. TATA Motors Ltd. at its own discretion may accept and / or reject the offers without assigning any reason of what-so-ever nature. At any stage, due to any reason of what-so-ever nature, TATA Motors Ltd. may decide to terminate the entire process with all bidders without assigning reasons and return all TEMDs without any interest. Letter of Intent ( LOI ) will be issued to short listed buyers. The LOI needs to be duly signed by the short listed buyers. On signing the LOI, TATA Motors Ltd. can provide copies of available title documents to the selected buyer, upon demand. Draft documents of Memorandum of Understanding (MOU) and Sale Deed will be given to the shortlisted buyer. The shortlisted buyer will have to complete due diligence of the property and arrange for funds so as to meet below mentioned timelines. Within 2 weeks of issuance of LOI to the shortlisted buyer, TATA Motors Ltd. and shortlisted buyer / selected buyer to sign the MOU on payment of 20% of the final offer price as additional interest free Earnest Money Deposit (EMD) by the selected buyer to TATA Motors Ltd. vide DD / Pay order only. TEMD of remaining shortlisted buyers, if any, will be returned without interest within 30 working days after signing the MOU with the selected buyer. The selected buyer to obtain any / all necessary clearances at his own cost & effort. If the selected buyer fails to sign the MOU and/or make the payment of EMD within the above mentioned timelines, then the TEMD and/or EMD will be forfeited and TATA Motors Ltd. may proceed with other shortlisted buyers or negotiate or invite fresh sealed bids. On signing the MOU, TATA Motors Ltd. may begin the formalities with the Society, as per the society rules. Within 21 days from the date of signing the MOU, selected buyer to make payment of balance Sale Consideration to TATA Motors Ltd. by DD/ Pay order only. Selected buyer will make payment of the applicable Stamp duty and Registration charges 23

24 Selected buyer and TATA Motors Ltd. to execute and register the Sale Deed. TATA Motors Ltd. will thereafter, hand over vacant possession, keys and available original title papers to the Selected Buyer. Title transfer formalities to be completed by the buyer. Date for opening the bids: 10th June, 2014 The bids will be opened by Tata Motors employees in presence of my mentor. It is totally up to the discretion of Tata Motors to finally sell the property. Commission charged by C&W: 0.5 % of the final bid for each bungalow. 24

25 RECOMMENDATIONS The HNI client database must be updated. The present database is pretty old and not very helpful in terms of lead generation or pitching of premium projects After taking down the requirements of the leads the follow-up must not take a lot of time. This way we lose out on our leads as their preferences change. There must be somebody in the team dedicated to only generating leads and following up on them. The focus must not only be on big ticket size, the focus must be on small ticket size as well so that if a big deal does not get converted by the end, at least the small ones get the profit. There must be more meetings arranged with big developers and loyal clientele for a better business development which will help in the long run. The options list must be prepared for every segment in every area so that time is not wasted in preparing the list and then mailing it to the leads every time. There must be more database creation and better relationships with other major brokers in the city. The team could also explore into areas that they do not deal with at the moment like Kondhwa, PMC etc. A continuous update on the present data in terms of the number of inventories left and other projects in pre-launch must be done. 25

26 CONCLUSION Cushman & Wakefield is one of the leading international property consultancy firms in the world. In India, C&W is performing brilliantly and is at par with the other big names in this sector. In Pune market, especially in the residential vertical, things are slow. Deals take a lot of time to get converted and the ticket size is small. Lead generation by cold calling is a hit and trial method. Database with the company are random samples and so the lead generation is low. The follow up on the leads is done by preparing an options list for the client, post which the list is mailed to the clients. After the mailing the clients are enquired about their interest in site visits for any property in the list. The clients are then taken for site visits. If the client is interested in purchasing any property the lead is finally converted. It takes time for the entire process to happen as buying property is not a hasty decision; people actually want to see all the options and then decide on the final one. This year however C&W residential team is doing better with two big projects in hand. First project is that of Courtyard 77- a project by Goyal builders. C&W has a mandate in this project. C&W look after the project marketing of Courtyard 77 and generating leads and converting them. Second is that of Tata Motors disposition. C&W is in charge of this corporate disposition by the procedure of closed bidding. Along with big projects C&W team also closes small ticket size leads side by side. In real estate market things are shaping up better in comparison to last year. With more growth targets and better economic activity in the country, people are going to invest. Also with coming in of our new Prime Minister Mr. Narendra Modi there is a positive sentiment in the market, hence the real estate sector is going to perform better and get more growth. 26

27 BIBLIOGRAPHY Booklets Cushman & Wakefield residential research papers for 2013 and 2014 Online Links

28 ANNEXURE 1) Teaser for Courtyard 77 28

29 2) Advertisement published for Tata Motors bungalows 29

30 3) Offer Form for the bids 30

31 4) Turnitin report 31