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“Effectiveness of Marketing Strategic of NBM Developers Ltd” Real Estate Sector in Bangladesh: An Overview Real Estate Sector in Bangladesh: An Overview Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many. A good number of real estate companies are working under one umbrella association named 'Real Estate and Housing Association of Bangladesh' (REHAB). Almost 361 Companies are at present affiliated with this association, while more than 400 companies are working independently. BTI took a leading role in the formation of the industry association and is one of the founder members of the REHAB. Real Estate Business: a Positive nation for Bangladesh

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Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many.

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Page 1: NBM Developer

“Effectiveness of Marketing Strategic of NBM Developers Ltd”

Real Estate Sector in Bangladesh: An OverviewReal Estate Sector in Bangladesh: An OverviewDhaka City, born during the Moghul Empire and grown with the British rule, is expanding

rapidly. From the beginning of the 20th Century its growth and latter development is

marked with sheer lack of proper and far-reaching planning. The impact is now being felt at

the end of the century. Dhaka City is undergoing terrific growth phase throughout the last

two decades. While there are so many real estate developers in the market, there are also

very few of them who have maintained the quality, safety and customer preference. It is

customary in the country that the first day quality and impression is lost after a while when

people start getting a bit of familiarity. This happens due mainly to lack of professionalism.

Sometimes the consumers here are in a fix to choose a particular brand out of many.

A good number of real estate companies are working under one umbrella association

named 'Real Estate and Housing Association of Bangladesh' (REHAB). Almost 361 Companies

are at present affiliated with this association, while more than 400 companies are working

independently. BTI took a leading role in the formation of the industry association and is

one of the founder members of the REHAB.

Real Estate Business: a Positive nation for Bangladesh

Rehab profile and its activities in Real estate Sector

Urbanization is an outcome of both population growth and rural-urban migration. As

urbanization increases, more and more people are becoming city dwellers. Bangladesh is

not any exception to that picture. The ever-increasing urban population is catering an

increasing demand for shelter. The right of shelter is a fundamental right, which is ensured

by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part

of the government of Bangladesh alone to ensure housing for all. Here comes the need of

private sector real estate development.

It is a recognized fact that the health of the Real Estate Development Sector is the

barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in

late seventies. During 1970s there were fewer than 5 companies engaged in this business. In

Page 2: NBM Developer

1988 there were 42 such developers working in Dhaka and now in 2004 there are about 250

companies engaged in this business.

Formation of REHAB: With the number of companies increasing gradually, various problems

concerning the housing sector cropped up requiring early solution. At this stage it was

necessary to form a trade association of the Real Estate developers to protect the overall

interests of the sector. To strengthen the role of real estate sector Real Estate & Housing

Association of Bangladesh (REHAB) was formed with only 11 members in 1991. The

objective of REHAB was to promote formal private sector Real Estate Development in

Bangladesh.

Present Performance: REHAB is the only trade organization of Real Estate Developers with a

current membership of 260 Developers. All major institutionalized Developers are members

of this organization. REHAB is also the "A Class" member of the Federation of Bangladesh

Chambers of Commerce and Industry (FBCCI). In the recent years REHAB has played a very

significant role in nation building through Real Estate Development by its members. The

members of REHAB contribute a large amount of revenue to the Government exchequer in

terms of Registration Cost, Income Tax and Utility Service Charges.

REHAB organizes its most colorful annual event REHAB Housing Fair each year in Bangladesh

for the member developers, financial institutions and building material providers. It has

already successfully completed three Housing Fairs during 2001, 2002, 2003, 2004 & 2005 at

Dhaka Sheraton Hotel Complex. To foster the growth of Real Estate Sector REHAB plans to

organize Housing Fair abroad for the Bangladeshi individuals who are living different

countries of the World to buy apartment, land and commercial spaces in their home

country. Accordingly, the first - ever Housing Fair abroad organized by REHAB on August

2004 at Quality Hotel Hempstead, 80 Clinton Street, New York, USA.

Accelerating urbanization has become tremendous problem to face for the country. The

present rate of urbanization is 5-6% annually1 which is really alarming. About 25% of

Bangladesh is now living in urban areas and 34% will be living by 20151 & 50% by 20252.

There is acute shortage of housing supply in all urban areas and it’s increasing with current

demand of 600,000 to 800,000 units all over the country. Particularly in Dhaka this demand

Page 3: NBM Developer

is estimated at 60,000 units of real estate apartments combined with 200,000 units of

replacement plus backlogs1. Dhaka is currently growing very fast compared to other.

Name of the Association: Real Estate &Housing Association of Bangladesh

Year of Establishment: 1991

No. of Member in 1991: 11

No. of Member in 2008 (January): 508

Bangladesh Market: some Key Indicators

Growing Scenario:

Real estate sector in Bangladesh is in a growing situation. From 1994-98, over the last 13

years, Bangladesh real estate sector grew at an average of 3.64% reaching the peak at 3.87%

in 1999-00. Though it had a fall in 2000-01, there was recovery in 2001-02. For the last 6

years this sector grew impressively and showed a smooth rising trend again it fall in 2008

The comparative scenario of GDP shows a steady 6% growth for Bangladesh. The real estate

experts have expressed the opinion that as GDP of Bangladesh is still below that of other

South Asian Countries, Bangladesh has more to grow which can be fostered by the

continuous increase in the share and growth of real estate sector in the country. The

contribution of real estate and construction in GDP of Bangladesh was 16.20% in 1994-95,

which became at 16.69% in 2000-01 and attained 17.30% in 2006-0. Compared to India,

Bangladesh real estate sector economy is contributing more to the country’s GDP. But

Real Estate Share of GDP – 2004-08 (%)

India 7.00

Bangladesh 8.90

USA 16.00

Malaysia 15.09

Source: Bangladesh Economic Review 2008 http://www.hdfc.com/23032008.htm, Executive Intelligence Review:” Fannie and Freddie were lenders”: U. S. Real Estate Bubble Nears Its End, by Richard Freeman, June 21, 2002http://rozwat.com/pages/science_fin_re_article002.htm and Department of Statistics, Malaysia

Page 4: NBM Developer

Malaysia – one of the most rapidly developing countries has the share at 15.09% while USA

has about 16%. This picture of Malaysia and USA shows that real estate sector can

contribute more to country’s GDP. Therefore the real estate sector in Bangladesh has huge

scope to grow.

Real Estate & Construction Share of GDP

YearThe persistent increase in the real estate sector indicates that real estate activities have

been rising which strongly supports more future growth.

A positive notion for Bangladesh Market

Shar

e (%

)

Page 5: NBM Developer

The positive trend of the neighboring countries with the global expansion in the real estate

sector also shows a growth opportunity. According to the above graph and past record of

INDIA & USA we see that the real estate sector market experiences an average rise of 5-10

years if it is started once. In Bangladesh, before 1985 people in Dhaka city never thought to

buy an apartment for living. Before 1995 people would have thought twice buying an

apartment. But in the last couple of years the interest in apartment buying has increased

rapidly. The boom in Bangladesh real estate market took place between 1988-1991. But it

faced fall in 1991-1992 gaining rise in 1993-1994. From 1995-1998 there was not so high

growth but the market was stable. From 1999 to 2004 it has been growing rapidly caused by

huge household demand, lack of enough land, rapid urbanization etc. in Dhaka City.

The present rate of urbanization is 5-6% annually. About 25% of Bangladesh is now living in

urban areas and 34% will be living by 2015. Only 40% of the people of Dhaka city have

housing facilities with standard or below standard. Thus from the comparative analysis

experts assume that according to the trend of the global market & neighboring countries

the growth of housing demand will stay for next couple of years more. Main reasons for

positive expectation have been presented evidently in the following section.

Reasons for positive expectation

Increasing Urbanization

Statistics & studies show that in 2000-2015, urban growth rate has been expected to

be at an average of 3.7% for Bangladesh. India – one of the most attractive markets

for global real estate is expecting 4.9% growth of urbanization.

Moreover where India is estimated to have 36% people living in urban areas by

2015, Bangladesh is expected to have 34%

Thus in South Asia, Bangladesh holds the second position in terms of urbanization

rate & proportion of urban population. This scenario tells that, as India is a rapidly

growing real estate market for the world, Bangladesh also may attract more real

estate investors and have more growth in this sector.

By 2010, Dhaka is estimated to have about 20 million people that show about 55%

estimated growth from 2000. With this amount of people Dhaka is estimated to be

the 5th largest city in the world by 2015. This fast urbanization needs enough

Page 6: NBM Developer

accommodation and housing supply, which is expected to create a huge market for

the real estate sector in Bangladesh.

Urban growth Rate Projection Population Projected Annual Average Growth

(%) 1975 2000 2015 2000-2015Bangladesh 9.0 25.0 34.0 3.7India 21.0 28.0 36.0 4.9Nepal 5.0 12.0 18.0 2.7Srilanka 22.0 24.0 32.0 3.1Source: Making Cities Work, Urban Fact Sheet, USAID

Urbanization Data of Bangladesh (In '000)1970 1980 1990 2000 2010 2020

Urban Population 5,059 12,713

21,750 34,354 52,223 74,432

% Urban 7.6 14.9 19.8 25.0 31.1 37.7Urban Annual Growth Rate 7.8 5.8 4.7 4.3 3.7 3.0Area BasedDhaka 1,474 3,257 6,621 12,519 19,393 *Chittagong 693 1,332 2,265 3,651 5,389 *Khulna 325 632 973 1,442 2,081 *Rajshahi 108 238 517 1,035 1,676 *

Source: Rural and Urban Development Case Study- Bangladesh, Oxford Policy Management, June 2004

Rising House rent

House rent has been increasing in Bangladesh since 1994 at high rate. In 1994 and

1999 the inflation rate in house rent was around 25%. Though in the recent times

this inflation has been a little bit lower, still in 2008, statistics shows increase of

house rent at about 10% in the country.

Page 7: NBM Developer

According to the real estate participants, the inflation in the house rent is

encouraging to people to buy apartments not bearing the increasing expenditure of

house rent.

Rate of inflarion in House Rent

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

year

%Iin

crea

se in

Hou

se R

ent

Source Consumers Association of Bangladesh (CAB) Research Report 2008

Easy and Available Financing:

Financing the apartment purchase for individual has become more easy and

available. In 1952 Bangladesh House Building Finance Corporation (BHBFC) was

established as government organization to finance the middle-income household civil

servants which was the first housing finance institution in Bangladesh.

Interest rate is competitive ranging from 14% to 16%. Maximum amount can be

financed is BDT 5 million to 6 million with maximum 20 years repayment option,

which varies with the different financing institutions. Loans can be taken to buy

apartments or for construction purpose in any part of the country.

Now there are a number of private specialized housing finance institutions, financial

institutions and banks, which provide housing, finance facility up to 70% to 80% of

the value of the house or apartment.

Inadequate and costly land:

Page 8: NBM Developer

Researches indicate that only 30% population in Dhaka city has occupied already

more than 80% of residential areas with human settlements and supportive

infrastructure1

Economists and real estate experts states it as highly significant and thus land is

becoming increasingly inadequate to provide individual housing solutions. Moreover

land is quite unavailable in Dhaka at suitable location for individual housing

fulfillment.

For huge demand and inadequacy of land, price of land is very high in the urban area

according to the real estate participants.

This is making more people inclined to build and share apartments.

Targeting the middle class:

Studies reveal, in Dhaka city only 5% of the population is in high-income group. Thus

45% of the total population falls into the middle-income group and the rest 50% in

the low-income group.1

Economists and real estate participants see the middle-income group as a huge

market for the real estate sector. Builders have started building apartments for

middle-income class of 600-900 sft.

The large unsatisfied middle-income class is expected to be boosting market for the

real estate business.

Encouraging in Remittance Flow:

The Government of Bangladesh has declared the foreign remittance inflow through

banking sector as tax-free and any purchase of fixed assets by Non Resident

Bangladeshis will not require producing any Tax Identification number. It increased

remittance inflow in Bangladesh in the recent years.

According to the economists, non-resident Bangladeshis are vital investors for the

real estate sector in Bangladesh, which is continuously supporting it to grow.

Other Issues:

1. Asian City Development Strategies, Fukuoka Conference 2000

Page 9: NBM Developer

There is hazards customers face in purchasing lands, which encourages them to buy

apartments rather than lands.

Construction & maintenance of buildings require spending huge time and energy,

which make the people reluctant from building houses.

The influence of western culture & housing design is attracting people more to buy

apartments

These reasons also are contributing to the decision of individuals to buy apartments.

Population growth trend and Demand Analysis

Now in Bangladesh the demand for residential real estate unit is rapidly increasing. The

current urbanization rate is 5-6% and 50% people will be living in cities by 2025 according to

experts. In the Dhaka City from 1991 the urban population density has increased by about

79% to 2004. It was 4795 persons/sq. km in 1991 and 8573 persons/sq. km in 2004 1. The

population growth in Dhaka city is shown below in Graph.

Population is increasing rapidly in Bangladesh. Dhaka – the mega city is in very faster rate in

population increase. This rapidly increasing people need more housing facilities. In the

above graph it is noticeable that the house rent in Bangladesh in an increasing condition.

More and more increase in house rent implies that people would become less interested to

stay in rented house and would try or tend to buy own home. This is also increasing the

Graph : Population Growth Trend in Dhaka City

1.683.43

6.9

9.9

13.21

16.45

19.68

0

5

10

15

20

25

1974 1981 1991 2001 2011(E) 2021(E) 2031(E)

Year

Popu

latio

n (in

mill

ion)

Source: REHAB Annual Report 2004, 1974-2001

Population growth in Bangladesh

76.489.91

123.1143.17

166.52

189.87

020406080

100120140160180200

1981 1991 2001 2011(E) 2021(E) 2031(E)

Year

Popu

latio

n in

mill

ion

Page 10: NBM Developer

demand of apartments in Bangladesh especially for the middle or upper middle class group

of the society.

This huge lift up in the urban density & rush of the people to Dhaka city has created great

demand of accommodation and housing services. Moreover the real estate developers have

started targeting the middle-income groups in the last few years to sell apartments. As the

major portion of the society is in this group the demand has got to be high. According to

REHAB there is demand of about 60000 residential units plus 200000 units of backlogs and

replacements every year. But REHAB members can supply only 5000 to 6000 units each

year. Now in this intense situation of rapidly growing demand the existing number of

developers cannot satisfy the current demand. This scenario ensures us a rising demand

oriented situation in future as the gap between demand and supply is increasing.

Overview of the Company

About NBM

NBM DEVELOPERS LIMITED: A HISTORY OF SUCCESS

NBM DEVELOPERS LTD. is one of the leading builders in Bangladesh. A flagship company of

the 'Ideal Group', it has developers and builders who are well known for quality

construction, loyalty and commitment. With the accent always being on style, the group’s

projects are specifically designed and today adorn strategic points in the twin cities as

projects with uncompromising construction standards and matchless aesthetic beauty.

Precisely why the customer base is growing parallel to company’s growth. To build and

develop housing projects that accomplishes the dreams of our esteemed customers by

providing all the luxurious, modern facilities, amenities and lively environment at very

affordable prices.

Purpose of NBM

To be an optimum business template for the real estate industry.

Optimize relationships, service and profitability.

Page 11: NBM Developer

To be the pacesetter in real estate services by exceeding customer expectations.

Aggressively pursue business through innovation to provide exceptional customer

service.

Build lifetime relationships with our customers and communities.

Mission of NBM

Against the emerging backdrop of Dhaka's urban outlook and life style, NBM DEVELOPERS

LTD Limited's mission is “to build beautiful homes keeping pace with the changes in taste

and needs of modern lifestyle”.

Vision of NBM

"Aspiring for world class living standards and contemporary work places come within reach

of all." We at NBM DEVELOPERS LTD ltd build the future. We expand horizons, link people

and organizations, set up new trends, and continually enhance the values entrusted to our

care. Our aim is setting up of comfortable and luxurious dwelling spheres that impeccably

match world-class infrastructures. We aspire to create establishments that give our

customers the joy of owning a paradise. Our true satisfaction comes through a million smiles

of our customers we have generated over the years.

The current pace of progress of the organization guarantees newer avenues for the coming

future. We as an organization believe in moving forward to attain our ambitious goals while

taking care of what we have created in the past. With clear vision and concrete ideologies,

converting dreams to reality does not seem too big a feat.

We Believe In

Serving with integrity

Conducting ourselves and our business in an honest, ethical, and trustworthy

manner

Treating everyone with care, respect, and fairness

Providing financial stewardship

Growing through innovation and creativity

Page 12: NBM Developer

Company Details

Company Name : NBM

Corporate Office : House No.-37, Road No-7, Sector-3, Uttara, Dhaka.

Business Area : All over Bangladesh

Company Achievement : Recognized as a Class a Company

Contract Number : +8801715811051, +8801913193766, +8801615889901, +88-

02-892068

Web Address : www.NBMgroups.com

Email Address : [email protected]

Legal Status

Registered with the following:

Registration Authority Registration Number

Company Registration C77621/09

Dhaka City Corporation 0454240

Board of Directors

There are 42 Members in the Board of Directors of NBM. Alhaj Md. Abul Basher,

Managing Director as Chairman while A.B.M. Mizanur Rahman as Managing Director &

Mohammad Habibur Rahman Miazee and Engr. Didarul Alam (Miru) as Director of Admin

& HRM and Marketing respectively. These Corporate Personalities already have tremendous

Success in Business due to their Commitment to the nation, Clients, Suppliers. They

acknowledged for their honesty, sincerity & hard working life patterns by the society.

Page 13: NBM Developer

Chairman

Vice Chairman

Managing Director

Executive Finance & Account

Executive Admin &

HRM

Director Admin & HRM

Director Marketing

Executive Marketing

Accounts Officer

Engineer

Sales Officer

Admin Officer

Public Relation Officer

Accounts Assistant

Promotion Officer

Designer

Office Assistant

Organ gram:

Management of NBM

Page 14: NBM Developer

NBM always follows the horizontal management system. Managing Director is the highest

position & Directors are the second highest position of this company. Other powerful

positions of NBM DEVELOPERS LTD Ltd are Manager & Senior Executive.

Marketing Strategy for NBM

NBM DEVELOPERS LTD Ltd. follows the marketing strategy as

Internal Marketing Strategy

External Marketing Strategy

Advertising Strategy for NBM

Advertising Strategy of NBM DEVELOPERS LTD Ltd is shown below:

Indoor Advertising Strategy

Internet

Radio Add

TV Add

Newspaper Add

Seminar

Outdoor Advertising Strategy

Billboard

Light Box

Mega Sign

Social Responsibility of NBM

NBM is committed to change the society. NBM thinks that an educated person can help to

change a society. For that NBM establish a foundation for financial help of education. NBM

is trying to establish a school for children. It also provides deep tube well for water in village

Page 15: NBM Developer

Graphical Analysis

Factors customers prefer most to take decision to purchase a flat or plot

Categories Percentage

Brand name 08%

Price 60%

Construction Quality 02%

Location 30%

Fi

g: Factors customers prefer most to take decision to purchase a flat or plot.

Figure Discussion

About 8% of the customers of apartment or plot prefer Brand Name, 60% of the customers

prefer Price, 2% of the customers prefer Construction quality and 30% of the customers

prefer Location.

Factor motivates customers to purchase a flat or plot.

Categories Percentage

To avoid the troubles involve in building a house 30%

To live in the centre of the city 60%

To live with same class people of the society 10%

Others 0%

0%

20%

40%

60%

Preferable factors to take decision to purchase a Flat or plot

Series1 8% 60% 2% 30%

Brand name Price Construction Quality

Location

Page 16: NBM Developer

Reason behind to prefer NBM apartments or plots

Categories Percentage

Quality 70%

Brand Name 5%

Reliability 25%

Fig: Reason behind to prefer NBM apartments or plot

Figure Discussion

5% of the customers of apartment prefer NBM apartment’s or plots cause of Brand Name,

70%of the customers prefer Quality, and 25% of the customers prefer Reliability

Consumers’ product choice and purchased of NBM flat

Categories Percentage

Flat 80

Shop 5

Commercial space 15

Reason behind to select MBL Flat

Quality, 70%Brand

Name, 5%

   Reliability

, 25%Quality

Brand Name

   Reliability

Page 17: NBM Developer

Product purchase by Customers

Flat80%

Commercial space15%

Shop5%

Flat

Shop

Commercialspace

Fig: Consumers’ product choise and purchased of NBM flat

Figure Discussion

80% of the customers of apartment prefer NBM flat, 5%of the customers prefer Shop, and

25% of the customers prefer Commercial space.

Consumers’ purchase of NBM flat on basis of project profile

Categories Percentage

This is a NBM product 10

Location of the project 55

Size of the flat 25

Design of the flat 10

Figure Discussion

55% of the customers of apartment prefer NBM because this is a NBM product, 25%of the

customers prefer Location of the project, 10% of the customers prefer Size of the flat, and

10% of the customers prefer Design of the flat.

Consumers’ thinking about the price of NBM flat

Categories Percentage

Higher price 60%

Reasonable 0%

Not higher in consider of quality 40%

Page 18: NBM Developer

60%

0%

40%

0%

10%

20%

30%

40%

50%

60%

Peoples perception about the price

Higher price

Reasonable

Not higher in consider ofquality

Series1 60% 0% 40%

Higher price Reasonable Not higher in consider of

Fig: Consumers’ thinking about the price of NBM flat

Figure Discussion

60% of the customers think about the price of NBM flat is higher price, 40%of the

customers think not higher in consider of quality, 0%of the customers think price is

Reasonable.

NBM are remarkable construction qualities

Categories Percentage

Construction quality 40%

Construction material 50%

Fittings and features 10%

Work man ship 0%

Page 19: NBM Developer

Fig: NBM are remarkable construction qualities

Figure Discussion

In sense of construction 40%of the customers prefer Construction quality50%of the

customers prefer Construction material10% of the customers prefer Fittings and features

none of the customers prefer Workman ship

40%

50%

10%

0%

0%

20%

40%

60%

NBM’s Remarkable Construction Quality

ConstructionQuality

ConstructionMaterial

Fittings andFeatures

Workman ship

Series1 40% 50% 10% 0%

Construction Quality

Construction Material

Fittings and Features

Workman Ship

Page 20: NBM Developer

Customer’s satisfaction level regarding

their expectation construction qualitiesCategories Percentage

Extremely satisfied 0%

Satisfied 90%

Moderate 10%

Dissatisfied 0%

Extremely dissatisfied 0%

0%

90%

10%

0% 0%

0%

50%

100%

Satisfaction Level Regarding building construction

Extremelysatisf ied

Satisf ied

Moderate

Dissatisfied

Extremelydissatisf ied

Series1 0% 90% 10% 0% 0%

Extremely satisf ied

Satisf ied Moderate Dissatisfied Extremely dissatisf ied

Fig: Customers satisfaction level regarding their expectation construction qualities

Figure Discussion

90% of the customers are Satisfied according to their expectation construction and 10% of

the customers are Moderate level Satisfied.

Remarkable media through which customers come to know about NBM

Categories Percentage

Throw the advertisement 60

Throw the Personal reference 30

Throw the Personal observation 10

Page 21: NBM Developer

Fig

: Remarkable media through which customers come to know about NBM

Figure Discussion

60% of the customers come to know about NBM Throw the advertisement, 30% of the

customers come to know Throw the Personal reference, and 10% of the customers come to

know throw the Personal observation

Customer’s satisfaction level regarding

NBM marketing systemCategories Percentage

Extremely satisfied 0%

Satisfied 40%

Moderate 40%

Dissatisfied 20%

Extremely dissatisfied 0%

How Consumers come to know about NBM

Throw the Advertisement

60%

Throw the Personal reference

30%

Throw the Personal Observation

10%

Throw theAdvertisementThrow the PersonalReferenceThrow the PersonalObservation

Page 22: NBM Developer

Fi

g: Customers satisfaction level regarding NBM Marketing system

Figure Discussion

40% of the customers are satisfied with the marketing system of NBM, 40%of the customers

are Moderate level satisfied and 20% of the customers are satisfied with the marketing

system of NBM

Customers satisfaction level regarding

NBM promotional activitiesCategories Percentage

Sufficient 10

Moderate 20

Not sufficient 70

0%

40% 40%

20%

0%0%

10%

20%

30%

40%

ExtremelySatisfied

Satisfied Moderate Dissatisfied ExtremelyDissatisfied

Satisfaction level about NBM’s Marketing system

Extremely satisfied

Satisfied

Moderate

Dissatisfied

Extremely dissatisfied

Page 23: NBM Developer

Satisfaction level about Promotinal activitiesNot sufficient

70%

Moderate20%

Sufficient10%

Sufficient

Moderate

Not sufficient

Fig: Customers satisfaction level regarding NBM promotional activities

Figure Discussion

70% of the customers think the promotional activities of NBM are sufficient 20%of the

customers think the promotional activities of NBM are Moderate 10% of the customers

think the promotional activities of NBM are not sufficient.

1. Customers preference to buy NBM flat

for the next timeCategories Percentage

Yes 30%

No 0%

May be 70%

Page 24: NBM Developer

Fig: Customers preference to buy NBM flat for the next time

Figure Discussion

In sense of prefer NBM flat to buy for the next time 30% of the customers said yes and 70%

of the customers said yes.

Remarkable media through which

customers come to know about NBMCategories Percentage

Yes 80%

No 0%

May be 20%

Yes, 30%

No, 0%

May be, 70%

0%

10%

20%

30%

40%

50%

60%

70%

Preference of NBM’s flat consider for the next time

Yes No May be

Series1 30% 0% 70%

Yes No May be

Page 25: NBM Developer

Fig: Remarkable media through which customers come to know about NBM

Figure Discussion

In sense of recommend other to select NBM product 80% of the customers said yes and 20%

of the customers said may be.

Customers satisfaction level regarding

overall performance of NBM including

handover timeCategories Percentage

Extremely satisfied 10%

Satisfied 70%

Moderate 20%

Dissatisfied 0%

Extremely dissatisfied 0%

80%

No, 0%20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Recommence tendency to select NBM product

Yes

No

May be

Series1 80% 0% 20%

Yes No May be

Page 26: NBM Developer

10%

70%

20%0% 0%

0%

20%

40%

60%

80%

Satisfaction Regarding Overall parformance

Extremely satisfied

Satisfied

Moderate

Dissatisfied

Extremely dissatisfied

Series1 10% 70% 20% 0% 0%

Extremely

Satisf ied

Moderate

Dissatisfied

Extremely

Fig: Customers satisfaction level regarding overall performance of NBM including

handover time

Figure Discussion

10% of the customers are extremely satisfied regarding overall performance of NBM

including handover time, 70% of the customers are satisfied regarding overall performance

of NBM including handover time, and 20% of the customers are Moderate satisfied

regarding overall performance of NBM including handover time.\

SWOT Analysis

The following SWOT analysis captures the key strength and weakness within the company,

and describes the opportunities and threats facing by NBM.

Strengths

Strong Brand Image

Strong construction quality maintenance

Strong employee bondage or team work

Well Wastage maintenance

Strong reliability

Proper positioning of work force

Strong communication channel

Availability of instant supply of fittings and feathers.

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Weakness

Insufficient employees.

Demarcating

Lack of marketing promotional activities

Opportunities

Availability of external finance from bank and financial institution.

Governments’ initiative to step up real estate business.

Threats

Many market leaders in the market.

Uncertainty or scarcity of utility facilities like- gas, electricity, water

Increasing the price of raw material.

Major Findings

The survey has been done targeting some specific objectives as defined in introduction

chapter. Therefore, after getting the outcome, we are now standing in such point from

where we can conclude some points based on the costume of the survey. The findings can

be summarized as follows:

The customer always prefer on the quality product.

Most of the customers prefer To live in the centre of the city

In respect of quality, the price level of NBM is reasonable.

Most of the customers prefer NBM Flat,

All the customers feel NBM follow better construction reasonable price strategy

Customers think NBM needs to enhance the Marketing system

Customer’s satisfaction level regarding overall performance of NBM including

handover time is satisfactory.

Most of the customers are satisfied on the construction of NBM according to their

expectation construction

Most of the time NBM is using only prints media for promoting its products.

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Customer Service

One of NBM’s strongest points is its efficient Customer Service Department. This

department gives personal attention to each client and is known for its prompt, effective

action. A warm, friendly atmosphere is created for the client who can make purchase

decision at his/her pace without feeling pressurized.

After sales services are also very efficient and sensitive to the customer’s needs. At every

stage of construction the customer is informed and his/her decision as regards to the

building of the apartment, is respected as much as possible.

The customer service personnel are always open to new, innovative ideas.

Logistical service include repair maintenance facilities such as plumbing and prompt

troubleshooting. Permanent maintenance personnel ensure that the apartments are in good

condition. NBM is also very conscientious about maintaining the facades of its building and

the landscape, in order to up hold its image of being the creators of aesthetically pleasing

homes.

Satisfaction of customer

Promotional strategy Total hunter Satisfaction

Advertisement 30 60%

Public relations 15 30%

Direct marketing 5 10%

Sales of NMB

The aim of sales promotion of NBM is to increase short term sales and increase inshore of

web traffic. They used discounts, installment, special offers & bank loan facilities for the

customers.

Discounts:

Customers who pay their full payments at a time NBM gives them discount 5-10%.

Installments:

NBM has installment facilities for those customers who are unable to pay full payment at a

time.

Special Offers:

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NBM gives some special offers for their customers in a particular season like summer sell

offer, winter sell offer etc.

Bank Loan Facility:

NBM arrange some Bank loan facilities for their potential customers to buy their products.

Price

List price

Average Price of Apartments of varying sizes in different city areas:

PRICE IN DIFFERENT CITY AREAS

Areas

Apartment size (sft)

Rate tk (Per sft)1250 1500 2200 3000

Taka in lacs

Dhanmondi 100 130 110 150 7000-8000

Uttara 75 90 120 150 3500

Mohammadpur 50 60 90 120 3500-4000

Motijheel 60 75 110 1500 4500-5000

Azimpur 50 60 90 120 3500-4000

Shiddershory 60 70 95 140 4500-6000

Shantinagar 60 70 95 140 4500-6000

Rampura 30 50 80 100 2500-3500

Malibag 30 50 80 100 2500-4000

Bashaboo 30 45 70 85 2500-3500

Badda 35 50 65 90 3000-4000

Mirpur 30 45 70 90 2500-3500

Mode of payment:

Payment arranged in the following way:

a. One time

b. Installment

One time: Buyer can pay the price in one time. If he pays the price in one time, he/she

will get 10% discount.

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Installment: In case of installment, buyer will get the residual month of project hand

over. After Booking, he will pay the initial deposit within seven days. Then he/she will

bind to pay the residual amount on the EMI (Equal monthly installment) base.

Discount: It is a great opportunity for the client because Genetic provide the discount

based on down payment. The discount amount is generally big enough than bank

interest.

Place

NBM’s products are available at:

LOCATIONS

Shiddershory Mohammadpur Shantinagar

Dhanmondi. Motijheel Rampura

Uttara, Azimpur Malibag

Bashaboo Badda Mirpur

People

Employee: NBM’s has skilled and experienced employees

Management: NBM’s managing board is very much qualified and experienced

Culture: NBM’s background is very much well reputed

Physical environment

Comfort: The employees of NBM’s are very much cordial with the customers and very

much friendly to their coordinates

Facilities: The employees of NBM’s are convinced and launch facilities

Promotion

A study shows that the apartment building companies undertook promotional efforts as a

part of their marketing programs. Newspaper and magazines are the media generally used

by NBM. The advertisement cost is low, compared to the total cost involved in the business.

NBM was found to use different media for advertising, which has shown in Table:

Distribution of the company according to Media used for Advertising

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MediaPercentage of

Companies

Newspaper

Television

Magazine

Billboard

94 %

01 %

04 %

01 %

Total 100 %

Sales promotion

NBM provides shot-term discount to encourage sale of our product, mainly at the time of

fair.

Advertising

NBM invests sufficient money for advertising in every year such as TV media, newspaper,

billboard, popular magazine, etc.

Personal selling

NBM sells their product through Personal selling.

Public relation

We are trying to build strong customer relationship with the public.

PROCESS:

NBM creates and delivers product elements based on customer requirement.

NBM designs its process in such a way that lead to fast, dynamic and very effective

service delivery and result in satisfied customers.

As the process of the Real Estate organization is very well designed, it helps a lot to

the marketer to do their jobs well, resulting in high productivity and decrease

likelihood of service failure.

In NBM most of the directions comes from Boards of Directors but there are

different culture in different department based on their jobs requirement so that

everywhere a specific process is highly maintained.

Segment Targeting

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It is a natural instinct to want to target as many people and groups as possible. However, by doing this NBM’s promotional strategy never talk specifically to any one group. NBM’s promotional budget is much more cost effective as they promote to one type of customer and speak directly to them. This allows NBM has to create a highly focused campaign that will directly meet the needs and desires of a specific group. Again, this is call market segmentati dentify the following demographic characteristics of the market.

Age: Middle age to senior age

Income: Higher income level

Gender: Both male and female

Profession: Different types of occupation

Education: Most of the people are higher educated

Marital Status: All people are married

Positioning

Positioning is a perceptual location. It is where someone’s product or service fits into the

marketplace. Effective positioning puts one first in line in the minds of customers.

Positioning is a powerful tool that allows creating an image. And image is the outward

representation of being who you want to be, doing what you want to do, and having what

you want to have.

That is why it is so important for entrepreneurs to transform their passion into a market

position. If you do not define your product or service, a competitor will do it for you. Your

position in the market place evolves from the defining characteristics of your product.

The primary elements of positioning are:

Pricing. As NBM’s plots, flats, shops are luxury items, so that they fix the price considering

customers devotion.

Quality. NBM is very much conscious about quality control. They always try to maintain

quality without considering price.

Service. Do you offer the benefit of customer service and support? Is your product

customized and personalized?

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Distribution. How do customers obtain your product? The channel or distribution is part of

positioning.

Packaging. Packaging makes a strong statement. Make sure it is delivering the message you

intend.

Decision and payment methods Pricing

Fixed Price Concept:

To avoid all kinds of embarrassing situation between the Company and purchaser NBM

follows the fixed price concept. In addition, it is more ethical in the field of unconfined real

estate business in Bangladesh. For a certain period, the price is fixed. It may change after a

period depending on the cost of construction and land value. As per price schedule, there

are some options of discount based on down payment.

Fixing the price of the property

Fixing the price of the real estate property is very complex compared to any other business.

The real estate firms under the study determine the price in three different methods:

(i) Land price + construction cost + margin is the widely used method of pricing followed

by the real estate firms in Dhaka city. About 75% of the firms are using this pricing

policy. It is to note here that land and construction cost has calculated at cost price.

That is why, the firm charges higher margin under this method and that ranges from

75% to 100%.

(ii) Ascertaining the cost of construction per square feet including the land price is

another method used in fixing the selling price of the apartments. Thus, the price of

apartment varies with its size. At the moment firms using this method, they are selling

the apartments @ Tk. 3500-6000 per square feet. This method is popularity and

followed by about 17% of the real estate firms. Under this method, firms can face the

competitive situation effectively.

(iii) Price escalation with land and construction cost is a method followed by only 8% of

the firms in Dhaka city. In this method, the firm charges relatively low percentage of

profit.

Land price increased tremendously in Dhaka city. The following table 16 exhibits the

increased rate of land price during 1974, 1990 and 1997 in different areas of Dhaka city.

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Another study shows that a number of considerations followed by the companies in pricing

apartment houses. 80% of the companies determine the price of apartments based on the

quality of construction while 55% of the companies determine their price based on location

of the apartment building. 40% of the companies originate to consider demand in fixing

price. It has reported that 95% of the companies followed mark up policy in determining

price while 15% of the companies pricing policy based on companies pricing and 10% of the

companies followed a pricing method according to convenience. It has observed that prices

of apartments of similar size in same locality vary due to the variation of quality of

construction.

Recommendation:Though NMB Developers Ltd. is performing well but it has some crucial areas to improve

their promotional activities which are prescribed below:

NBM Developers brochure is too short that is why customers can not get proper

knowledge about the company & company products. NBM should make it’s corporate

brochure in more detail.

The management of NBM should regularly administer promotional research activities in

order to keep a regular track of satisfaction levels. Regular research should also be

conducted to find out customer expectations about various service aspects.

NBM gives the best quality of products & services to their customers for that reason the

cost of their products become automatically very high, which is unbearable for some

customers. So, they should make their product price reasonable & it may help to capture

maximum customers.

NBM is a big & profitable company but the social responsibility or normal activity is very

narrow in country if they emphasize their activity in Bangladesh it is good for there

increasing market growth rate.

NBM should focus more on existing customers in order to build strong & loyal

relationship with them as satisfied customer more aptly or certainly recommends the

hospitals to friends & relative thus the power of relationship will foster positive word of

mouth communication & will attract new customers at a lower cost.

Individual Attention should be given to customers in order to better understand their

needs & better satisfy them.

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NBM should pursues on aggressive advertising camping in order to build up a strong

image & reputation among potential customers in this contest.

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