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Introduction: ................................................................................................................................................. 3
About Hallmark Infrastructures ........................................................................................................... 3
The Management Team......................................................................................................................... 4
Hallmark, as a Group .............................................................................................................................. 4
Vision............................................................................................................................................................. 4
Mission.......................................................................................................................................................... 5
Hallmark’s 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 P’s 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:
Hallmark Infrastructure Pvt Ltd has carved a niche for itself in the Construction and Real
Estate Industry of Chennai. The primary aim of company is to attain utmost customer
satisfaction by developing excellent properties that are superior in quality and design. They
endeavor to build elegantly designed, eco-friendly living space without compromising on
quality. They have an expertise team of architects, civil engineers, administer and other
professionals who ensures to maintain customer satisfaction by delivering properties
beyond the expectations of the customers. They have successfully completed several
prestigious projects situated in the prime locations of Chennai city.
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
Hallmark’s Specialty
Commercial Apartments
Residential Apartments
Projects
Current:
Golden Country
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
Real Estate Industry at Chennai - Overview
The Chennai Real Estate Overview takes a look at the key micro-markets and the growth
stimulators from a residential perspective.
The current global economic scenario and the prevailing interest rates have impacted the
real estate market in the short term. Chennai, which is primarily an end-user market, is
expected to witness stagnation in capital values over a 12-month horizon. The Chennai
realty market is driven by a healthy mix of IT/ITES, manufacturing and logistics. The
investor participation is long-term in nature, thereby mitigating a speculative market
scenario.
North Chennai is dotted with locomotive workshops and port related industries. The self-
employed and the public sector employees drive business in the region. These micro-
markets are marked by the presence of smaller projects, which cater to the surrounding
catchments. These projects are expected to sustain absorption levels.
The southern part of the city, along Old Mahabalipuram Road (OMR) and Grand Southern
Trunk Road (GST), is driven by the IT/ITES segment. The micro-markets closer to the city
will continue to show homebuyer interest. However the peripheral regions in these micro-
markets are witnessing a moderation in sales, which can be attributed to the deferment of
expansion plans by major corporate. One can estimate an inventory of 12-18 months
present in this market.
The micro-markets of Oragadam and Sriperumbudur are witnessing key infrastructural
developments, which would help improve connectivity to the city and aid in the
development of these micro-markets as self-sustaining hubs. In the current scenario, the
products in the mid and premium segment are expected to witness a moderation in pricing
of 5%-10% over a 12-month horizon. Products within the price bracket of INR 25 lac per
unit would sustain sales volumes.
The suburban markets along West of Porur, Poonamallee High Road and the southern
micro-markets of Pallavaram, Chrompet and Tambaram are witnessing infusion of fresh
supply. The surrounding catchments, proximity to the Central Business District (CBD) and
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.
SWOT Analysis of Hallmark - Zaviera
Strengths Weakness
Ability to meet operating objectives because Uncontrollable natural calamities
of strong operating & financial results Long distance between construction
Product by prominent property developers project & resources (eg: raw materials)
High level of evergreen demand reduces efficiency
Premium apartments Changing skills requirement and skill gap.
Unrivalled execution facilities
Locality near to Mahindra World City, GST
road
Full of amenities
No common wall between neighbors.
Opportunities Threats
Strategic alliances & partnership with Global economy crisis has slow down
surrounding Corporates sales.
Tie-ups with major Indian & International Insecurity & limitation of base funding.
banks to offer financing packages. Innovation by competitors
Property can be vetted & pre-approval by
banks to simplify loan process.
PESTEL Analysis for Zaviera
Political factors:
Urban land ceiling regulation Act.
Stamp duty.
FDI in real estate
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:
Government’s regulations and policies
Heavy taxes imposed on this industry.
Seven P’s of Marketing for Zaviera
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:
Other than media campaigns, other few marketing strategies which Zaviera can
adopt are:
i. Distribution of brochure at corporate offices of Infosys, TVS, Shell, etc.
ii. Introduce referral schemes for existing customers
iii. Bulk & corporate discounts.
iv. 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.
Segmentation, Targeting and Positioning - Zaviera
Hallmark infrastructure has brought its own money for the Zaviera Project. After
interviewing them we found out that they are of the opinion that their previous projects
have given them sufficient returns so that they are well capable of financing Zaviera by
their own money and refraining from bank borrowing or through any other sources.
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 didn’t 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.
Therefore,
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.
Cost Structure of Zaviera
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:
1. Website with Virtual tour of flat & e-portal treasures : Rs. 15 lakhs
We can prepare website content and upload project details on Hallmark website by
March’13. 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.
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.